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How to manage a brand to be strong: a study of Zara
MSc International Business
How to manage a brand to be strong: a study of Zara
Background to brand management……………………………………..8 Research question………………………………………………………..9
What is a brand?................................................................................12 How a brand is managed?.................................................................13 2.2.1 2.2.2 Brand strategy…………………………………………………..…13 Three instrument of a brand strategy……………………….......15
18.104.22.168 Brand name……………………………………………………16 22.214.171.124 Design of the brand…………………………………………..17 126.96.36.199 The effect of advertising…………………………………..…18 2.2.3 Planned meaning of a brand…………………………………..…19
188.8.131.52 Positioning choice………………………………………….…19 184.108.40.206 Brand value choice…………………………………………...22 2.2.4 2.2.5 2.2.6 Brand image………………………………………………………..23 Brand-added value………………………………………………...24 Development of brand……………………………………………..26
220.127.116.11 Brand portfolio………………………………………………….26 18.104.22.168 Brand extension and endorsement strategy………………..27 2.3 The brand of Zara is a good study……………………………………….29
Qualitative and Quantitative Research Methods………………………..30
3.2 The chosen research approaches………………………………………..31
…32 Questionnaire design…………………………………………..2 4..4 5..3.32 Questionnaire procedure……………………………………..32 Questionnaire method………………………………………………….6 4.3...6 5.... brand-added value and brand name……………….....44 Brand images.2 3.2.36 Customers’ feedback and Zara’s image……………………………….7 The findings from questionnaire The effect of design and price strategy…………………………………42 Intrinsic aspect of positioning………………………………………….49 Chapter Ⅵ 6.38 Summary of case study……………………………………………….7 Case study of Zara Overview of Zara…………………………………………………………35 Fashionable design with medium price………………………………..…36 No traditional advertising……………………………………………….3....35 Product strategy of Zara……………………………………………..2..4 4.51 ..…33 3...1 Further discussion 3 The influence of three instruments……………………………………..3 4.1 3.2 3.3.33 Chapter Ⅳ 4.31 Questionnaire survey………………………………………………31 Triangulation of these two methods…………………………….3 5....43 Choosing brand value………………………………………………...48 Summary of the findings………………………………………………...5 4.3 3.40 ChapterⅤ Ⅴ 5.….2.1 4..1 3..45 Advertising…………………………………………………………………48 Zara’s extension strategy……………………………………………….1 5.5 5..32 3.37 Inditex Group……………………………………………………………....3 Participants……………………………………………………….4 Ethical issues that may need to be considered……………………….….2 5.3 Case study………………………………………………………….
60 Appendix 1 Appendix 2 Questionnaire………………….6.. .. .2 6.74 4 ....4 Positioning and brand values choice…………………………………... .2 Conclusion Limitations of the study…………………………………………………58 Recommendations for future research……………………………….…54 Brand portfolio.……………………………69 One sample of questionnaire………………………………. .3 6.…………..52 Brand images and added value…………………………………….59 References………………………………………………….1 7. extension and endorsement strategy………………55 Chapter Ⅶ 7.
I also would like to express my grateful appreciation to all those who kindly took part in and supported this dissertation. 5 .Acknowledgement I would like to give a huge thanks to my supervisor Harjit Skehon. who gave me a lot of encouragement and suggestions in my entire writing process and appreciate his hard work on the revision of it.
Riezebos. Temporal. 1988. brand-added value. so a considerable number of researchers (Philips. A combination of qualitative (case study) and quantitative (questionnaire survey) methods will be employed to ascertain whether Zara’s success is in terms of vital elements. The three major instruments of a brand strategy are: positioning and brand values choice. If corporations exploit some brands into more than one market. design and advertising have an important influence on this progression. positive brand image and high brand-added value. the development of a brand portfolio. 1990. A brand portfolio. a brand portfolio. Research suggests that a brand with accurate positioning and brand values choice. extension and endorsement strategy may be used (Riezebos et al. Temporal. 2002). 1989. a brand can also become stronger. If these strategies are managed well. Key words: brand management. brand images. extension and 6 . brand values. The study will commence with an analysis of several key elements in the management of a brand. 2005). The main purpose of this study is to investigate how a brand is managed to become a strong brand. as mentioned above. 1995b. Murphy. Zara is a good case study to show how the brand has been managed to become a powerful brand in the fashion industry (Tungate. and added value. 2003. brand extension and endorsement strategy can be used to develop brands for entry into other markets. brand images. 2002) are increasingly interested in brand management. Brymer and Schiro. positioning.Abstract The meaning that a brand stands for is extremely significant for consumers. in the brand management. should become a powerful brand.. Brand name.
7 . Zara.endorsement strategy.
ChapterⅠ Ⅰ 1.. term. This was a way of making a differentiation in ownership. As stated by the American Marketing Association. 2006). the buying party was often willing to pay in excess of the book value of the corporation. Murphy (1990). brand is a word that springs to mind. reality confirmed the point that brands show a financial value. consumers’ brand experience can vary significantly from the production experience. “BMW” or “Coca Cola”. where it was eventually incorporated into daily language” (Riezebos et al. Having said that. 2003: 2. 1995). 2003). 1998: 2) This definition is adopted by a great number of scholars (Kolter and Keller. or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitions. Brymer and Schiro (1989). “The Vikings may have spread the word brandr in England. Cheverton. Keller. In addition. and even one of the most powerful brands worldwide needs support from consumer acceptance (Hartley. So how do they do it? A great number of scholars 8 . c2006. What is a brand? There are countless species of definitions of a brand. It is “… a degenerate of the old Norse word brandr. 2006. the benevolent see benevolence and the wise see wisdom. The English word `brand’ originated in the Middle Ages (from 476 to 1492). All believe that brands could be the embodiment of a specific value for the organisation.” (Keller. Kotler and Pfoertsch. Olins. almost all corporations are devoted to making their brands strong in order to gain more value.1 Introduction Background to brand management When people see the word “Nike”. brands not only stand for a financial value but also a strategic value for the corporation. 2003: 2). Keller. 1998. a brand is a “… name. According to Philips (1988). For example. in the process of acquisition. which refers to the branding of cattle” (Riezebos et al. 1998. symbol. From these two facts.. and strong brands can be of great financial and strategic significance for corporations. or design. sign.
the crucial research question is “How are brands managed in order to become strong brands”?”. Positioning choice and brand value choice are made for the intended meaning of a brand by managers. There are three key instruments of a brand strategy: brand name. Brand management becomes arduous and complex without a brand strategy (Temporal. consumers can build a specific image of a brand and understand brand-added value (Riezebos et al.2 Research question In this study. positioning and brand values choice. it is the cornerstone of brand management’s success. Put simply. In the introduction of a brand. 2004). Therefore. design and advertising. or brand extension and endorsement 9 . and offers the policy that helps brand managers to obtain coherence in whole brand-connected actions. The first step of good brand management is formulating a brand strategy. 1. 2003). which provides a pivot and orientation to brand management. At the present time.(Temporal. excellent design provides a positive image. Aaker. If the choice is related to consumers’ needs and attitudes. For example. 2003) pointed out that good brand management helps corporations make powerful brands... 2002. Consumers have an important influence on brand management. which means they can choose the development of a brand portfolio. there is an increasing tendency for corporations to exploit several brands into more than one market. in a brand strategy. making full use of any instrument allows corporations to manage brands well. through the expression of brand meaning. brand image. and added value are central parts. Riezebos et al. Then. 2002: xiii). and the way in which it is perceived” (Temporal. brand management “… is a process that tries to take control over everything a brand does and says. its design must be meaningful to consumers. 2002.
(Riezebos et al. Burberry. This transformation may benefit from three main instruments: brand name. 2008). In the fashion industry. 2005). In summary. Murphy. A successful brand is then extended or endorsed to other brands in order to become more powerful. Keller. and there is almost no advertising involved. its brand should be very strong. Zara Home. 1990). Zara has managed to become the most valuable brand of the Spanish fashion distribution group. in the 2007 Best Global Brands. thereby exceeding some luxury brands such as Prada.. positive image and high brand-added value . 1998. selecting extension strategy or endorsement strategy to exploit a brand to be powerful. a brand with accurate positioning and brand values. if a brand portfolio is well-managed. Two key factors that distinguish Zara from other fashion brands are design (most fashionable) and speed of launching a new collection (fast). Whether building up a brand portfolio or. Having 8 endorsed brands in the portfolio has helped Zara to gain power. Zara is only a high street brand. however. with a good brand strategy . 2003. it was ranked at No. It has also extended to set up another product class. Inditex (a brand portfolio).must become a strong brand. Moreover. 64.in other words. the design of Zara plays the most significant role in the success of developing 10 . Polo RL (Interbrand. design and advertising. Zara brand managers are more likely to use design and brand name to carry out a brand strategy. as a result of its success and influence (Inditex Group. 2007). Zara is a good case study to show how it has managed to become a powerful brand in the fashion industry (Tungate. these are significant components in the management of a brand which should be taken into account in a brand strategy. these factors make it easier to implement a good brand strategy.
Finally. there is a positive image (which can be obtained from Zara’s fashionable design) and a high brand-added value (which has high perceptions of quality and high brand name awareness) of Zara for consumers. The chosen values of Zara fulfill not only the material need of consumers (e. when issues arising from the research will be discussed and analysed. and the material and quality of it is relevant to this price strategy. but also consumers’ demand for self-actualisation (e. wearing Zara. 11 . Research into how Zara works towards becoming a strong brand will be conducted using a mixed research method. Zara’s name springs to consumers’ minds when people mention the high street fashion brands. Qualitative research will take the form of a case study of Zara. a conclusion will pinpoint the limitations of this research and recommendations for future research will be made. For instance.a strong brand.g. This will be followed by a discussion section. The results chapter provides a conclusion of the case study and displays the findings of the questionnaire.g. and quantitative research will take the form of a questionnaire survey. they feel they are beautiful). Zara is positioned in the premium price (price dimension) and impressive approach (intrinsic dimension) by managers. clothing is for security). Besides these. In addition.
or a TV channel such as ‘BBC’). “Not only is it the actual product. More explicitly. The logo may take the form of a picture (e.. 2003).1 Literature Review What is a brand? A brand has two main characteristics: it is a logo and enables consumers to identify products or services of a corporation (Riezebos et al. Kohli and LaBahn. Olins.. Owing to the development of brands.ChapterⅡ Ⅱ 2. 1998). the Pepsi bottle) (Kolter and Keller. 2003. A change of qualities of merchandise or a service will result in the product being changed. 2003). Both sorts of attributes have an effect on the evaluation progression of consumers (Achabal et al.g. In fact. Traditionally.g. extrinsic attributes are entire properties of a brand that do not belong to the intrinsic attributes. price. Brand name. Keller. 2002. Keller. 1974. packaging. 1997. a brand is a complicated thing. The logo may perhaps be a name (e. These kinds of properties are termed as intrinsic attributes (Nelson. a brand name has served to complement the product itself. a shop name as in ‘Boots’. Riezebos et al. ingredient branding as in ‘Intel’.. 2008. 1974). but it is also the unique property of a specific owner and has been developed over time so as to embrace a set of values and attributes (both tangible and intangible) which meaningfully and appropriately differentiate products which are otherwise very similar” (Murphy.. the notion of a brand is changing from a brand being a ‘product-plus’ to a concept (Riezebos et al. 2003). and information about the brand (such as the geographic area of origin) are considered part of the extrinsic attributes. 1987). a monogram: Yves Saint Laurent) or form mark (e. On the other hand. Kohli et al. and consumers are easily able to distinguish merchandise from each other. Petty. c2006. 1998. 1990: 2). a name was affixed 12 . a brand comprises both intrinsic and extrinsic attributes (Szybillo and Jacoby..g.
Central to this method is the idea that “… one develops a strong and attractive idea that is not so much rooted in product advantages but more in a lifestyle associated with the brand (Nike. which means “… identifying clearly what [a] brand stands for. however. Nowadays.to a product when manufacturers created it. 2002: xiv. It involves integrated communications. The general purpose of this progression is to increase the brand’s value. more and more corporations draw attention to the brand-as-a-concept method. 1994. whereas the more modern strategy is ‘market-driven’ (Moran and Riesenberger. 1990).. etc. This indicates that the 13 . Murphy. the management of brand is the utilisation of marketing techniques to a certain brand. and it should begin with a brand strategy.)” (Riezebos et al.. with brand management gradually becoming more salient for corporations. Swatch. The traditional view of brand meant that corporations adopted ‘product-driven’ strategies. 2002. and constant tracking of the brand and its competitors” (Temporal.. This focus on the market means that brand managers are increasingly taking part in product development. 2. 2003: 14). Temporal.2. 2002). its personality. There is a demand to influence the perceptions of diverse target consumers to make sure they see what corporations want them to see in relation to their brands. because they hope to attract particular group of consumers. Riezebos et al. Each part of brand management must be guided by the brand strategy (Temporal. 2. 2003). A corporation attempts to distinguish its goods or services from other competitors through differentiation. Bureau.2 How a brand is managed? In brief. 2003). which had to be meaningful to the consumer (a brand as ‘product-plus’). and how to position it so that it appears different and better than competing brands. 1981.1 Brand strategy Brand strategy is grounded on two factors: differentiation and brand-added value (Riezebos et al.
Arnold. a brand name affects consumers more readily than others. (2003: 20) stated that “Either material or immaterial differentiation can serve as a basis for adding value to a brand”. Pine and Gilmore. and secondly. but also to a non-functional value. Riezebos et al. and brand-added value. managers should pay attention to several points: positioning and brand values choice. the bare product). 2004. 1992). “By aiming for differentiation in a brand strategy. 2003. is more useful than material differentiation. Aaker. 2004). Murphy. 2002. An effective differentiation on the foundation of immaterial parts has two merits: firstly. In general. Shipley and Howard. 1989. In some products. 1999. 2003: 18. if a corporation wants to examine whether their product class is appropriate for a brand strategy. Therefore. 1992).motivation for a brand strategy has a competitive parameter. 1993) suggest that all goods and services are distinguishing and fitting for a brand strategy. They are essential components 14 . competitors find it difficult to imitate. which points out the reality that a brand has more value for consumers than the product itself. using this strategy. The brand-added value of a product is frequently built on the differentiation foundation of the product involved.e. the great majority of products are appropriate for a brand strategy (Riezebos et al. Arnold. Hague and Jackson.. 1980. than with associations related to the product itself” (Riezebos et al. 1990. 1994.. However.. one tries to give a brand a competitive advantage” (Riezebos et al. immaterial differentiation. After deciding to pursue a brand strategy. they neglect the role of brand sensitivity amongst products classes. It not only refers to a functional value (i. Even in a monopolistic or oligopolistic market. “Consumers usually feel more involved with the associations called up by the experience world around a brand. Temporal. Aaker. 2003: 20. there is frequently no necessity to conduct a brand strategy because of there being few or no competitors. Besides. in the first instance they should answer whether the product class is distinguishing. which happens by generating a particular experience world around a brand. Although some researchers (Levitt. brand image. Another basic trait of a brand strategy is brand-added value.
In relation to the third advantage of brand strategy. Another strategic merit is that a corporation achieves a more independent position in connection with trade as consumers will force retailers to sell a brand that satisfies their demands (Murphy.of a brand strategy. it attracts new employees. the corporation has a good position in connection with imminent competitors. 1989). and an effective brand strategy gives a promise of future revenues (Ourusoff. There are three different facets of strategic merit. According to the definition of a brand.2 Three instruments of a brand strategy A number of instruments can be employed to implement a brand strategy. 1990). Financial merit is important for a corporation because it is the ultimate aim of doing businesses.2. The importance of implementing a brand strategy is that it has three advantages: financial. Reichheld (1996) highlighted the fact that people are more likely to work for corporations with strong brands. For consumers. In the first place. 1994). a greater market share may be achieved. 1998). 2. The creation of this barrier is dependent on consumers’ loyalty and buying habits (Karakaya and Stahl.. a powerful brand has a significant influence on the labour market. This is the third strategic merit. If one brand has an enormous and constant market share. In the long term. a brand strategy plays a crucial role in brand management. one of the most outstanding distinctions between a product and a brand is that a brand has a brand name. other brands struggle to enter that market. Brand name. Through extension or endorsement and international branding. strategic and management advantages (Srivastava et al. the brand name is one of the most 15 . management merits demonstrate that a strong brand can easily gain entry into various markets. design and advertising are extremely important and can have a significant effect on brand management. So. a brand strategy can help the brand owner gain higher sales and higher margins. Therefore.
The third component is the competitive position of the brand. brand name strategies are pursued by corporations. 1992). The brand name is also a significant element from a management perspective (Riezebos et al.e.2. Secondly. The name of a brand that has a strongly distinguishing feature from other brands should have originality so consumers receive a signal from the original brand name that this is something new. and a multilithic (i. 2.2.1 Brand name In brand management. two brand names for the same goods). If there is a larger budget. 2003). 2003). corporations should be mindful of the fact that some names already selected may carry negative meanings in countries where the population speak a different language. The great majority of corporations use more than one strategy (Laforet and Saunders. the name should connect to an experience world around the brand. means ‘killer’ (Riezebos et al.e. 1990. The first is the size of marketing communication budget for the new brand.meaningful attributes (extrinsic attributes) of a brand. brands having their own name) (Olins. Finally.e. The choice of a brand name should take account of four main long-term components. For corporations. the differentiation of a brand is based on an expressive aspect. it stands for the value of their brand.. the name `Matador’. a corporation prefers to select a multilithic brand name strategy. The effect of the brand name can be great when consumers cannot thoroughly assess a brand before purchase. one brand in different product classes). in Spain. For instance. which is a brand of American Motors. the sort of positioning has a crucial influence on the relation between the product and the brand. 1999). a dualithic (i.. These strategies include a monolithic (i. it decreases the risk to buy a brand for consumers that they can not evaluate before purchase. Biggar and Selame. on the other hand. If 16 . For example.
Design can help to enhance the credibility. A passive one means 17 .2. target group reach and turnover increase. which is a product’s form (such as packaging and logo). and graphic style. When design is taken as a brand instrument. stakeholders and retailers. Another fact that “… is of influence on the importance of the brand name as an attribute is the extent to which a branded product functions as a social symbol” (Riezebos et al. In brand development. Product design is seen as the design of a tangible product. 2003: 45). “The most important effects of design are felt in image. design can be classified according to its effects as a management and a brand instrument. Hence. From these points. brand name will add value to a brand. they can more readily distinguish between the intrinsic attributes amongst brands. Design management should be considered as the progression of management that directs the execution of design to help fulfill the organisational aims: maximising the impact of design to profit the company. generate a elebated selling position and evoke sensations of satisfaction and interest. reliance and familiarity of both internal and external relationships. It is a combination of shape. it can distinguish products. color and diagrams as they are utilised on the product or in-house style.consumers are acquainted with the brand name. 2003: 134). Besides this. In this way. design offers many opportunities to improve the functionality of information flows and also to clearly convey the characteristics of products” (Riezebos et al. and is a key element in the brand management. 2.. which can depict the typography.2 Design of the brand The next main instrument of a brand strategy is design. As an instrument.. a product is used to show which social group consumers belong. which is useful in the brand management.2. design as an instrument of a brand strategy can help a brand to be strong. Design plays a character in four brand attributes owing to the nature of a product. it plays an active or a passive character.
Secondly. attractiveness and familiarity (Henderson and Cote. Packaging can act as a signal for the brand values and. 1994). it can “… contribute to brand development and is not just good for the stimulation of the buying impulse” (Riezebos et al. stimulating them to purchase the brand. which is a vital instrument of marketing communication. Carter (1999) even concluded that constant utilisation of the logo makes a strong brand. has several roles as an instrument in a brand strategy. There are some standards to measure a good logo design: identification (reducing the recognition time of a brand by its logo). 1998). It also has the effect of reinforcing the message to consumers.2. 2..3 The effect of advertising Advertising.the design does not convey any associations to the mind of consumers relative to the brand. a good corporate design can be used effectively to connect the brand identity and to help to remind its shareholders of the intended associations.2. communication of brand values. it can ensure instant recognition of the brand and its design can convey specific associations to consumers’ minds. A logo provides a visual brand sign. Corporate design is focused on the corporation. in packaging design. and negative associations evoked by a brand name can be decreased or removed through the utilisation of advertising. One aspect is that advertising offers information which makes consumers accustomed to the brand name. The fourth role of advertising is to give consumers a thorough knowledge of a brand. It can communicate with consumers and with the market. Another is packaging design. research has revealed that a considerable number of advertisements emphasise the distinguishing merits of a brand and even promote the perceived differentiation of a brand (Boulding et al. Product design is a powerful differentiated element and subscribes to the progression of brand development. 2003: 137). 18 . differentiation..
another is transformational advertising.a low-cost.2. design and advertising are crucial ones to the management of a brand. 2. One is called informational advertising because functional factors play a vital part in it. As can be seen. This is referred to as the positioning choice. a brand strategy is the first fundamental step to managing the brand. In a low-cost strategy.3.” (Riezebos et al. brand name. and both are relevant to the positioning approaches. However. Basically. therefore. Riezebos et al. 1986b). 2. a premium and a prestige strategy. Two forms of advertising implementation have been studied.3 Planned meaning of a brand After determining to carry on a brand strategy. and a good strategy can help a brand become powerful. (2003) stated that the comparative price is a powerful determinant for the intrinsic aspect. in premium and prestige strategies.2. 1984).There is also a relationship between advertising and brand sales: higher sales of a brand can be contributed by advertising. Although only the intrinsic aspect of positioning is managed in many articles (Ries and Trout. “One of the first problems a manager is faced with in the introduction of a brand is the question of which field of play a brand should have on the market relative to competing brands. the corporation elects to compete with other brands on the lowest probable price. 2003: 53). advertising has an outstanding influence on the development of brand (Puto and Wells. as an expressive positioning approach is a central theme in it.1 Positioning choice Two aspects are relevant for positioning: the brand’s price aspect and the intrinsic aspect. In the next step. Although there are a wide variety of instruments in a brand strategy. a manager must more explicitly choose the values that a brand should represent. the corporation 19 . a corporation can select one of three strategies in the price aspect of positioning . In summary..
. in particular. 1997). the degree of differentiation of a brand is quite high.. managers pay more attention to the intrinsic aspect of positioning than to the price aspect. Rossiter and Percy. the maximum amount that consumers are willing to pay for a brand will be calculated by gaining their opinions about the highest priced competing brands. the price aspect cannot be regarded as separate from the intrinsic aspect that the brand represents.attempts to make a brand differentiable for consumers rather than starting price competition. If a low-cost strategy is used. It has two main approaches. a large number of consumers believe that a high price represents high quality. Gerstner (1985). which offers certain exclusivity (i. Consequently. 2003: 53). premium strategy provides many probabilities to give meaning to the brand. this information will then be used to determine the price of a brand. and in a prestige strategy. which can be referred to as ‘experiential’ facets. “The brand name will usually only function as a recognition sign for the low price and the brand name will add little or no material or immaterial value to the product for the consumer” (Riezebos et al. The feelings connected with the use of the brand 20 . Therefore. Due to Steenkamp (1989). one can give an option with regard to which level of price a brand is to be positioned based on the price strategies. and Smith and Nagle (1995).. When a premium strategy is employed. functional (the intrinsic attributes are central) and expressive (the world of utilising the brand is central) (Riezebos et al. in this strategy. differentiation) to a brand. while the accent of impressive facets. for a prestige strategy. There are instrumental and impressive facets of intrinsic attributes within the functional approach: the former one emphasises the intrinsic attributes themselves. 2003). the corporation preoccupies itself with rivalry by creating the brand as effectively and cheaply as possible. but in the brand’s intrinsic positioning the corporation can do nothing except stress a proper quality for a low price. is on the benefits of intrinsic attributes for consumers (Park et al. Besides. In the market. Such exclusivity is connected with the brand’s intrinsic attributes and with the target group to which the brand is referred. 1986.e. In fact.
2003: 58). the positive purchasing motivation is applicable to use a functional approach with the stress on impressive facets. this type of purchasing motivation needs an instrumental facet of the functional approach. the type of purchasing motivation can affect the option between functional and expressive positioning. 1997) have studied both negative and positive aspects of purchasing motivation of consumers. an expressive approach could solve this problem.are more essential in the stressing of impressive facets than instrumental facets. consumers clearly understand which social class they belong. Fennell (1978) and Rossiter and Percy (1987. a brand has ‘psychosocial meaning’. or aspire to belong. Fundamentally. Central to the expressive approach is to alter the use experience of consumers. When there is a high degree of resemblance amongst brands. It concentrates on the target consumers and affects their views about the brand in connection with other brands. In this situation. to and those to which they do not wish to belong (Mittal. Besides price. Essentially. which means by the buying and open expenditure of brands. a functional approach would become difficult. socially rewarding situations or intellectually challenging situations” (Riezebos et al. positioning targeted at the positive one refers to consumers utilising the brand in a condition that is experienced in a positive way. “Positioning seeks the best way of convincing people that this particular product is both different 21 . which can be built on “… pleasurable sensory experiences. Positioning targeted at the negative one refers to consumers utilising a brand in a condition that is experienced as unpleasant. Positioning is essential to brand management as it takes the fundamental tangible facts of the product and sets up the intangibles in an image’s format in the minds of consumers. 1988).. or an expressive approach. By contrast. An expressive approach targeted at social respect is particularly appropriate in a prestige strategy (price aspect) and an added value.
building a powerful brand is impractical without strong positioning. 2002: 37). and can distinguish a consumer from other groups.e. In the final and the most important phase. A brand value is defined as “… a state of mind that is important to consumers and that is used to decide the mission of a brand. [It] is considered to be a strong determinant of attitudes as well as behaviour.3. So.e. This is because buying a car is a form of conspicuous consumption. Brand values provide a chance for differentiation of a brand and attract 22 . the features of the corporation. There are three desire levels: the need-driven level (i.from and better than any other product” (Temporal. 2003: 60). Taking the product’s features. In the process of the option for a desire level. 1983. 1983). the need-driven level is chosen for a brand of rice. while for cars both the outer-directed and inner-directed desire levels can be selected. the greatest three values may be chosen within the desire level selected (Kahle. from this point. managers are not restricted to choose one desire level. and the inner-directed level (i. The essence is that anything that consumers are in connection with the brand should communicate with the brand values selected. On the other hand. 2. The process of formulating and using brand values has three phases. for example. the manager should make more explicit options for the planned meaning of a brand by selecting one or more values that a brand must attach to.2 Brand value choice After choosing a specific positioning. the brand refers to consumers’ demand for self-actualisation).. In the second phase.” (Riezebos et al. managers should answer a question how to translate every value to material attributes. and the selections made by competitors. the outer-directed level (i. The option of the desire level of the brand is the initial phase in selecting brand values (Mitchell. 1954).e. three elements should be taken into account: the features of the product. Maslow.2. the brand concerns the relative demands of consumers). the brand connects to physiological and biological consumers’ demands).
Some groups of consumers welcome a brand with a definite list of values as it makes emblematic.. In addition to advertising.consumers whose values correspond to those being reflected by their selected brand. The brand image that consumers have is a subjective emotional picture. Usually managers select two options in order to make the brand meaningful to consumers: one is positioning choice. Actually. and the other is brand value choice. the brand associations can be separated into material (physical 23 . There is a difference between the manifest and the latent content in images (Bromley. 2002). the planned meaning of a brand is strongly decided by the options made by the manager. 1993). There is “… every sign that is capable of distinguishing the goods or services of a company and that can have a certain meaning for consumers both in material and in immaterial terms” (Riezebos et al. The manifest content of a brand image refers to associations that consumers can directly name. and is dependent on their experience of that brand. 1993). the concept of a brand is accomplished. The content of a brand image means that a brand name perhaps invokes some associations. Therefore. consumers begin to shape a kind of image of it for themselves.2. Advertising can play a significant role in the transmission of the foundation of brand meaning to consumers. 2003: 63). non-verbal explanations about themselves (Ellwood. they may be measured. an excellent design provides a good image to consumers as an instrument of brand strategy. while associations that they cannot directly speak about create the latent content. The description of a brand image follows from the positioning choice.4 Brand images Once a brand has already had an intended meaning. Content. More physical association will be evoked by a functionally positioned brand than an expressively positioned brand. favorability and strength are the essential parts of brand images (Keller. At this stage. 2.
such as an international impression of a brand. which is linked to the level that it evokes powerful and positive associations. 2003: 65). 1999). Brand-added value includes a value ingredient for every association and it specifically takes brand name awareness as an element. which is the feeling of consumers in connection with each association. The strength is associated with the degree that an association has related to the brand. A combination of favorability and strength relates to the reputation of a brand. The distinctions in significance amongst associations are considered by the notion of brand-added value. As a matter of fact. In general.5 Brand-added value Riezebos et al. 2.product) and immaterial. 1997. which is an extremely strong motivator for consumers to make a purchasing decision. and can make 24 . a high-perceived performance is more valuable to consumers. and a highly psychosocial meaning of a brand can help consumers to convey who they want to be (Aaker. A famous brand name can conjure up sensations of familiarity in consumers. Managing brand images perfectly are vital to build up a strong brand.. those factors are the difference between it and brand image. (2003: 69) define brand-added value as “… the contribution of the brand name and its related connotations to the consumer’s valuation of the [brand] as a whole”. “Brands with an extremely high positive reputation are often brands that are based on a prestige strategy” (Riezebos et al. The perceived performance functions are the perceived quality and the perceived material differentiation of the brand. A good brand image can result in a positive influence on brand preference. and even stimulates the sales of this brand. Negative or positive forms the two values of the favorability of a brand image. psychosocial meaning (the value from immaterial brand association) and the level of brand name awareness determine brand-added value. Perceived performance (the value from material brand association).2. a brand image offers no perception into the related value that consumers attributed to associations.
brand values. Moreover. 2003: 73). brand name awareness may have a huge influence on the intrinsic facets (perceived performance and psychosocial meaning) of brand-added value. the greater the awareness of brand name (Riezebos et al. a brand can reduce the feeling of risk that a consumer experiences).e. brand extension and endorsement are main forms of brand development for a corporation. They are closely related to the consumers. a brand can satisfy a resembling function for consumers. this brand must become a strong brand. How to manage this strategy becomes more and more significant in the brand management. their feedback). “A brand can be of use before sale because it can ease and promote the information processing. they exploit several brands in more than one market. where managers carefully control them according to consumers’ views and attitudes (i.lead to a high probability of purchase.. However. [during] consumption. brand image and brand-added value). a brand can finally increase the satisfaction that a consumer experiences” (Riezebos et al.6. 2. This indicates that perceived performance and psychosocial meaning determine brand-added value’s direction and that brand name awareness determines to a great extent what part brand-added value plays. or a brand strategy can be managed well.6 2. Brand portfolio. Brand-added value can also offer an incentive to increase sales when it is managed well.1 Development of brand Brand portfolio 25 . advertising can help consumers become familiar with a brand name since the more advertising that takes place.. and the confidence in the option of one special brand should be raised with a brand name “ …(in other words. corporations are not just satisfied with one brand. 2003). In relation to brand-added value. If these four major elements of a brand (positioning.2. … during sale. with the development of brand and extremely strong competition in the market. At this stage.2.
the financial value of which is great. In the process of building a brand portfolio. generating an effective barrier to latent rivals’ entry). In a brand portfolio. A bastion brand has the largest strategic and financial advantages for the corporation. How is a brand portfolio set up? Three strategies can be used: brand development (corporations exploit the individual brand itself). The exploitation of several brands enhances the opportunities that consumers will buy a brand from the portfolio of the corporation. and offers the more steady foundation for extension to the brand. initially the corporation should decide which brand is the most valuable for it and how it intends to defend this brand. 2003: 198). four types of brand are distinguished. and lead to strategic merits (i. There are some advantages to the development of several brands in a corporation (Barwise and Robertson. brand acquisition (by purchasing related brands) and brand alliance (by making arrangements with other corporations).A brand portfolio means a collection of brands from one and the same corporation. Except for the bastion brand. The fourth type of brand is a prestige brand. the other three types of brand are not fit for extensions (management advantages).e. This strategy is relevant to a larger level of risk spread. 1992). and the corporation benefits from some scale merits by this strategy. So. and the key is to employ other brands to defend the most valuable brand of a corporation from competitive aggression . 2003: 194). as it is the most profitable brand in a brand portfolio. “A bastion brand can be protected from competitive discount brands by introducing one or more fighter brands” (Riezebos et al.. A flanker brand has the highest strategic advantages because it is used to prevent potential competitors. “Synergy effects can take place which among other things may benefit the profitability of the organisation” (Riezebos et al.. Besides. The first strategy takes a long time to exploit brands 26 . a brand portfolio is good for a corporation.
This branding can promote the financial condition of a corporation. 1992). and the level of control is maximised. clearly. The development of a successful brand into other countries is termed international branding. In the literature. an effective brand is well suited for entry into any kind of product class.6. through brand extension and endorsement strategy. the extension strategy needs lower marketing communication costs than the strategy of introduction of a new brand.. In brand acquisition. the corporation achieves a strategically stronger position. It also needs high investment. and generates high sales in a short time..and has average control over the market position of the brand. A brand extension refers to the name of an existing brand employed for a product in a dissimilar product group. The corporation can regard a brand extension as a method for gaining entry. and the time of building a brand portfolio is neither too quick nor too slow (Ourusoff et al. 2. but also to help gain entry into other countries. such as Virgin Media and Virgin Atlantic. A great brand portfolio provides a steady foundation to a corporation not only to help gain entry into other product groups.2 Brand extension and endorsement strategy A successful brand has both manifest value (in the international brand strategy) and latent value. however. the latent value of a brand can be exploited. There needs low control and low investment in brand alliance. From the financial perspective. 2003: 214). “The choice for a brand-extension strategy is based on the idea that a brand name has a certain value for consumers and that [a corporation] can capitalise on this value” (Riezebos et al. and enhance the strategic position of this corporation in other countries (Marston.2. The speed of building a brand portfolio is quite fast. 1992). while the financial investment is very high. dissimilar aspects that affect 27 . If a brand extension is successful.
In summary. In fact. In an endorsement strategy. It includes positioning and brand values choice. corporations can stimulate the agreement and the sale of a new brand by associating it with a common brand name.perceived performance.. For three components of brand-added value . this is one of the strategic merits of the endorsement over the extension strategy. which guides every aspect of brand management. many factors should be taken into account in the management of a brand. Initially. design and advertising are major instruments in a brand strategy. However. In short. brand extension and endorsement strategy are useful for corporations to exploit a successful brand to become more powerful. While brand name. the endorsement strategy can replace an extension strategy.a higher value of each of them has a positive influence on a brand extension’s success (Bottomley and Doyle. and brand dilution (Ourusoff et al. 2003: 233). the endorsement strategy is a better way of reaching this goal than the extension strategy” (Riezebos et al. and this brand is then endorsed. 1992). In developing a brand’s latent values. 1996). The choice of positioning and brand value can make a brand meaningful for consumers. can promote the range of the corporation distinctly to consumers.the success of a brand extension strategy are addressed. thereby creating a brand image in their mind. competitors and stakeholders. “If a company wants to attract other consumers than those in its current consumer franchise. managers should work out the brand strategy. An endorsed brand can be dealt with more readily than an extended product to another corporation. a new product has a new and unique brand name. no transfer of associations. psychosocial meaning and brand name awareness . the extension strategy has some disadvantages: consumers are more willing to buy the extended product than the parent product. negative feedback.. each of them can influence the brand management. Using an endorsement strategy. brand image and added value. Brand-added value also plays an important role in the 28 .
Whether or not Zara has managed to become powerful in terms of those vital elements in brand management. beating some luxury brands (such as Prada. 29 . Burberry. such as Zara Home (which is an extension of Zara brand). in the fashion industry. discussed above. 2007). corporations can set up a brand portfolio. however. In 2007.management of brand. 2008). The first Zara store opened in 1975. the revenue of Zara brand reached €6 billion. This Group has other brands. the brand Zara is a good case study to show how it has managed to become a powerful brand (Tungate. In fact. Zara belongs to a high street brand. 2005). Therefore. it occupies the most significant position in the Inditex Group. Zara was ranked at No. is something that will be considered during the course of the research undertaken for this study. In order to achieve this goal. 2.3 The brand of Zara is a good case study Zara is the flagship retail chain of Spanish fashion distribution group. they are eager to exploit several brands into more than one market or country. or use a brand extension and endorsement strategy. Pull and Bear. in the 2007 Best Global Brands. Inditex Group. these strategies are important components in the management of brand. and Zara currently has stores in 68 countries (Inditex Group. 64. Polo RL) (Interbrand. corporations are not limited to developing only one brand into one market. Nowadays.
Moreover. It “… uses an inductive logic. A questionnaire is the most frequently used method in quantitative approaches. 2004: 15) Researchers differed in their attitudes to the reality. with categories emerging from the participants. According to Bryman (1988: 1). research methods can be divided into qualitative and quantitative. It “… adds complexity to a design and uses the advantages of both the qualitative and the quantitative paradigms.” A combination of qualitative and quantitative approaches was used to collect data in this study.” (Jindal-Snape. 30 .Chapter Ⅲ 3. thereby making the whole process very dynamic. is much more reliant upon interviews and case studies and deals generally with much smaller numbers. A qualitative approach. Creswell (1994: 178) pointed out advantages of this mix. The qualitative researcher believes that reality is constructed by the participants in research situation. rich context-bound information leading to patterns or theories that help in understanding a phenomenon. 2004: 10) Although there are some differences between qualitative and quantitative methods. “The quantitative researcher views reality as ‘objective’ and independent of the researcher.” (University of Dundee.” It concentrates much more on the collection and investigation of digital data and statistics.1 Methodology Qualitative and Quantitative Research Methods In general. which makes my study findings more reliable. these two methods can complement each other. on the other hand. the overall design perhaps best mirrors the research process of working back and forth between inductive and deductive model of thinking in a research study. “Quantitative research is typically taken to be exemplified by the social survey and by experimental investigations.
2 The chosen research approaches In my research. On the other hand. The questionnaire I used only took participants five to ten minutes to complete. or the setting” (Neuman. physical characteristics. which is convenient to conduct and produces data quickly.case study and questionnaire survey. 3. it obtains the opinions of the greatest amount people compared with other information acquirements. observations and evidence-documents.2. it “… may be essential when a research is made to understand what concepts mean to people. 3.2. 2003: 325). More explicitly. 31 . two methods were selected to be the most proper instruments with the purpose of collecting authentic and helpful data . it can create attractive and in-depth details about life in a certain organisation (Cassell and Symon. which is a practical investigation that examines a contemporary phenomenon within its actual context. Participants can complete questionnaire by mail or self-administered. both in terms of time and cost. so they arrange a convenient. This method can access different levels of people from different areas that will help to diminish estimation biases. the meanings attached to particular behaviors and how behaviors are linked” (Yin. and “Researchers cannot visually observe the respondent’s reactions to questions.2 Questionnaire survey A questionnaire survey is the most commonly utilised instrument. questionnaires can limit the responses of the participants. In addition.1 Case study The case study research method usually deals with “How?” questions.3. 2004). A questionnaire is more economic than other methods. The distinctive advantage of a case study is its capability to manage completely the diversity of interviews. In addition. 2003: 289).
1 Questionnaire method Participants 30 participants took part in this research. whereas this information cannot be obtained via questionnaire survey because consumers are not likely to understand the corporation’s internal strategy simply by purchasing the Zara brand. The target group of Zara focuses on consumers under the age of 40. in other words through the feedback of consumers. The financial data clearly show whether the management of Zara brand is successful or not. Although data on how the design of the Zara brand is controlled can be collated from the questionnaire results. In fact.e. 3.3.2. whether the image of the Zara brand is positive or negative depends largely on consumers’ view (i.2 Questionnaire design 32 . This case study can illustrate how a brand portfolio and brand extension is administered. which pays more attention to the financial and economic report as well as international expansion. the research question is how has a brand managed to become a strong brand. and of either gender. Therefore. although the case study of Zara can be used to describe how it manages brand image.3 3.e. They were all under 35 years of age. 3.3. a case study provides more detailed statistics and information. All participants were university students because the same targeted sample is easy to analyse the data. The material of the case study is from Inditex Group’s annual reports. it can be seen that the case study and questionnaire survey complement each other. and Zara is taken as a good case study.3. Moreover. questionnaire). consumers) to fully comprehend Zara as a brand. The most significant thing was that they should have purchased Zara brand as it enables participants (i. the brand values and brand-added value are shown through questionnaire rather than case study.3 Triangulation of these two methods In this study.
questions made limited reference to brand extension. Disagree 0. and advertising) are significant in the brand management from a consumer’s perspective. Five scale points of agreement could be selected by participants. all of which were single-choice questions. In the email.3. neutral (3 points). brand name. These scale points provided a convenient measure of consumers’ attitudes. 4.4 Ethical issues that may need to be considered 33 . brand values. and they replied to say that they were willing to participate in the study. and easy to understand (see Appendix 1). Take one question for instance: You are familiar with the logo of “Zara”. 3. The design of the questionnaire was based on the literature review.There were 30 closed questions. Strongly agree Strongly disagree If the mean is 3. but none to brand portfolio or brand endorsement. 22 emails returned with completed questionnaires attached. The length of each question was no longer than two lines. Questions were designed by me and covered the main elements of brand management. and asked them two questions: Are they below 35 years of age? Have they ever bought Zara? If both answers were yes. disagree (2 points) and strongly disagree (0 point). 5. I then collated the data (or scale points) and used SPSS to analyse it. I told them the main purpose of my research. Agree 3. which are strongly agree (5 points stands for it). 3.3 Questionnaire procedure I sent 40 emails to students who are studying in the Nottingham University Business School.80 (larger than neutral points 3). consumers’ attitudes tend to familiar with “Zara” logo. The purpose of the questionnaire was to investigate whether positioning. In addition. images and added value. agree (4 points). In a few days. design. and the three instruments of brand strategy (namely. then I sent them a questionnaire. Neutral 2.
Some of them were relative to participants of the research. Confidentiality was also a factor and participants’ privacy was respected. and all participants were reminded of their right to withdraw at any time during the research. a summary of the research findings should be made available to all participants. ethical issues were taken into account. then their prior consent must first be obtained. Participation had to be voluntary. particularly as they could be traced through their email addresses. The findings of the research will be reported accurately and truthfully because participants may check it.In the process of carrying out the research. In addition. 34 . If the information collected from the participants will be used in other research.
rather than on promoting predicted season’s trends via fashion shows and similar channels of influence. which also occupies an important position in a brand strategy. Burberry (No. which exceeds some luxury fashion brands. and Zara has more than 250 designers (Inditex. Nowadays. In 2007. Moreover. and Zara was ranked at No. Inditex Group. 2007).361 Zara stores in 68 countries all over the world at the end of 2007 (Inditex. 64 (brand value is ＄5 billion). “Zara was a fashion imitator. On the basis solely of the above financial data. such as ‘fashionable’ and ‘beautiful’. 4.264 billion (an increase of 13% over 2006). Since it opened in 1975 in Spain.95) and Polo RL (No. as “A brand image is a subjective mental picture of a brand shared by a group of 35 . These associations are then transformed into positive brand images. 99) (Interbrand. which the fashion industry traditionally used. This is an active product design because consumers are able to make associations relative to Zara. Zara is one of the largest global fashion companies. the net sales of Zara was €6. 94).1 Case study of Zara Overview of Zara Zara is one brand in the Spanish fashion distribution group. 2007).116 billion (an increase of 23% over 2006). Zara has transformed the fashion world with an innovatory business pattern.” (Kumar and Linguri. it can already be deduced that the high street brand Zara is a strong brand in the fashion industry. 2005) Zara’s product design is one of the most differential features in comparison with other brands. Interbrand and Business Week ranked the Best Global Brands by value for 2007. There were 1.Chapter Ⅳ 4. [Design of its product] focused its attention on understanding the fashion items that its customers wanted and then delivering them. 2007).2 Fashionable design with medium price Design is one of the determinants of the brand’s success in the fashion industry. and EBIT (Earnings before interest and tax) reached €1. such as Prada (ranked at No.
Zara spends four to five weeks on the process of designing a new product and getting finished products in its stores (Inditex. Zara is the leading brand in `fast fashion’. In Spain. It can redesign existing products in no more than two weeks.000 different products per year. Zara chooses a premium strategy in the price dimension of positioning.4 No traditional advertising 36 .3 Product strategy of Zara Product strategy is one of key components of a brand strategy. This characteristic also promotes brand images to a high level. its price is neither too high (like Prada) nor too low (like Primark) for consumers. ” (Roux. So design can affect brand images. The shorter the product life cycle. the irresistible combination of latest fashion and quality (i. these particular product strategies help Zara to become a powerful brand in the fashion industry. Finally. This uniqueness offers a positive image to consumers. whereas that rises to seventeen times in Zara’s case. an excellent one offers a strong brand image to consumers. Zara provides a considerable number of products. So. while its major rivals only produce 2. “If a style doesn’t sell well within a week. It produces approximately 11.000. 2002) The above unique product strategies are successful due to data gathered. In addition. product design) at an affordable price is one of the most valuable differentiations of Zara.000 to 4. further orders are cancelled and a new design is pursued. a high street shop has an expectation that consumers (or zealots) will visit it three times a year.. which encourages Zara zealots to make repeat visits. 4.consumers” (Riezebos et al. which are more than rival corporations in the fashion industry. 4. which results in Zara’s brand being strong. 2003: 63). and a special one can lead to brand strategy’s success.e. it is withdrawn from shops. No model stays on the shop floor for more than four weeks. the larger success it will have in meeting consumer preferences. 2007). Hence.
” (Inditex. 2003: 150). The Zara for Mum line went on sale in March in over a hundred stores in the main cities of Spain and since September it has been available at all establishments of the chain in the world with a wide range of articles. remarked. and which values of Zara they will choose. prices. 4.” (Inditex. 2007: 43) This Mum line promotes a powerful image of Zara into the 37 . a good design or a unique product strategy can influence it to be positive as mentioned above. Riezebos et al. “The fashion requests collected by stores leads to the initiation of the productive process.Advertising is the main instrument of a brand strategy. 1989. 2005: 51). Zara only spends 0. while Zara’s rivals spend 3% to 4% of sales on it.. “The reason for not spending money on publicity is that it doesn’t bring any added value to our customers. This almost zero advertising is another peculiar strategy of Zara’s management.” Carmen. Zara launches “… its first collection of maternity wear. This business strategy involves constant relations with the commercial supply and bringing personnel closer to the customer. whether Zara’s image is positive or negative for consumers. but they can be reflected by customers’ feedback. (Tungate. there is an absolute influence of advertising on sales: “An increase of 1% in advertising expenditure results in an average rise of 2% in sales”. images and brand-added value cannot be evidenced directly through Zara’s management. rapid turn-around of stock and the store experience. However. We would rather concentrate on our offering more in terms of design. Owing to the research by Simon Broadbent (in Jones. it not only makes consumers accustomed to a brand but also adds value to a brand. For instance.5 Customers’ feedback and Zara’s image The in-store feedback from consumers is sent back to designers every day. which puts together a supply in agreement with the customer’s wishes as quickly as possible. While in 2007.3% of sales on advertising. whether consumers see extra value add to Zara. With regard to brand image. 2007: 27) Brand values. a press officer at Inditex Group.
Pull and Bear. As a result. These 38 . In fact.691 stores in 68 countries. As a result.6 Inditex Group Inditex. if another industry competes with Inditex.minds of consumers. Pull and Bear are fashion brands. its target age is from 25 to 45 years old. “Textile Design Industries. as it takes consumers’ demands seriously and seeks to meet mothers’ needs and feedback.534 billion and net profits reached €1. Pull and Bear. and it uses a multilithic brand name strategy to name seven endorsed and one extended brands: Zara. Secondly. The former one is chic design with high quality for men and women. although Massimo Dutti and.. then the risk equally impacts on Massimo Dutti and. 4. The self-managed development of Inditex takes a great deal of time to exploit brands and has average control over the market position. Firstly. In 2007. Meanwhile.”. “A high barrier of entrance for potential competitors is created” (Riezebos et al. which has a target age for men and women from 20 to 35 years old. 2003: 194). is one of the world’s largest fashion distribution groups. they belong to Inditex. the development of several brands can increase the opportunity that consumers will purchase a brand that belongs to Inditex. It has 3. 2007). Zara improves its reputation in the fashion industry still further. So a fashion industry with a single brand strategy will struggle to gain entry into Inditex’s market. while the latter one is casual fashion and sport design for young women and men. its sales were €9. Besides. Inditex adopts brand development strategy to build its brand portfolio. Oysho. Zara or Zara Home. 2008). Bershka. No matter which brand you buy. For example. Inditex will succeed in the competition. Uterqüe and Zara Home (a new brand opened in 2008) (Inditex.25 billion. their target group is different. Inc. Massimo Dutti. their target age is from 14 to 28 years (Inditex. Inditex is a brand portfolio. There are some advantages to being part of the Inditex Group. It also needs high investment.
264 614 66. since its sales and contribution are greater than other brands. Therefore. 2003: 233). Table 1 shows the sales.131 519 2007 5 8 426 510 381 290 204 3 11 5 10 5 32 35 24 22 20 From the above table. it is clearly shown that Zara is the bastion brand in the Inditex Group.8% 5.examples illustrate one of reasons why Inditex chooses the endorsement strategy rather than the extension strategy.e.1% 696 7.4% 6. which is the most profitable brand. and they also help Zara to spread risks in the competition. 2007: 41) Sales Contribution by brand Zara Pull and Bear Massimo Dutti Bershka Stradivarius Oysho Zara Home 925 521 213 201 9. of Net Countries where it is present 68 35 stores financ markets ial year 2007 1. because other brands in the Inditex Group can help Zara to prevent potential rivals from entering its market. stores and contribution each brand in 2007 (In millions of euros) (Inditex Annual Report.. the different target age) (Riezebos et al. stores and distribution of each brand in 2007 (except new brand Uterqüe). Zara can be more forceful in the fashion industry as a bastion brand of Inditex. Table 1: sales.3% 2.5% 2.4% 6. Inditex has another merit in that it 39 .5% by brand No. because it “… wants to attract other consumers than those in its current consumer franchise” (i.
consumers will automatically think that Zara Home has the same features. table-linen and bathroom textiles. Zara not only increases its financial position. (2003: 29) suggest that “A successful brand can more easily be exploited on an international market”. there are 68 countries that have Zara stores. with bedlinen. which “… introduces trends into the home with a wide-ranging textile range. In comparison with other competitors. Riezebos et al. Zara is a strong global brand. which means Zara mix the active product design and a premium strategy in the price dimension of positioning. Zara Home was opened. Zara conjures up feelings of familiarity (positive association) for consumers. 2007: 55) Zara means a successful and strong brand by extending it to Zara Home. another one is unique product strategy. From the data in Table 1. which perhaps leads to a larger possibility of purchasing Zara Home. It is one of the determinants which makes Zara’s brand so strong. giving Zara a strategically stronger position in the fashion market.000 different products per year. Using an international branding strategy. which is complemented with crockery and decorative objects. The speed of creating a new design and delivering it to Zara stores is fast. Awareness of the brand name Zara Home is automatically boosted as a result of the Zara brand already being known to consumers. one characteristic of Zara is the fashionable design in combination with the medium price. its sales have reached €201 millions. although Zara Home was created in 2003. but also reinforces its strategic position in the world. This success demonstrates the effectiveness of Zara’s extension strategy. In 2003. Zara can produce 11.” (Inditex.can provide a more steady foundation for extension to Zara. There is a special situation in that 40 . Obviously. In addition.7 Summary of case study Fashionable design with medium price is one of the most valuable distinguishing features of Zara. For instance. 4.
For example. if these characteristics and strategies are well-managed. Zara’s effective extension strategy). Although brand image should be shown by consumers. fashionable design and unique product strategy have a salient effect on it. This enhances a good image of Zara. images and added values. and such feedback is reflected in its values. Zara can become a strong global brand.Zara does almost no advertising.e. However. this is not hindering Zara in becoming a very well-respected brand worldwide. Zara’s strategy is to pay more attention to the feedback from consumers. Zara can become a powerful international brand more easily. good control of customers’ feedback helps Zara to be stronger. Moreover. Zara has launched a new collection called Mum line. The triumphs of Zara Home have relied on Zara’s strong brand (i. Inditex’s other endorsed brands assist Zara to compete against its rivals and achieve success in other markets. according to consumers’ needs. 41 . Therefore. In a word. as an independent and the most valuable concept of Inditex Group (a brand portfolio).
3 (see Table 1).41 3. Compared to brands like Primark.50 4. it is a remarkable instrument for brands being forceful. As in the former question. You can accept this medium price of Zara.86 “Design creates corporation distinctiveness in an otherwise product and image-surfeited marketplace” (Riezebos et al. whereas the latter view is related to the product strategy of Zara. 3. These two points show Zara’s product design is very popular. Both mean figures are larger than the scale point of the neutral. while there are 41% are definitely sure 42 . You are satisfied with the design of Zara with relation to its price. Zara has higher quality of material. half of them adopt a neutral position to answer this question. and the speed of launching a new collection of Zara is fastest. You can distinguish the logo of “Zara” from other logos. the mean is 3.ChapterⅤ Ⅴ 5. The price of Zara is neither too high nor too low.86. such as “Channel” and “Primark”.77. 2003: 127).. The design of Zara is the most significant reason that you are loyal to it.05 4.86 4. Whether the most important reason that they are loyal to Zara is the design.1 The findings from questionnaire The effect of design and price strategy Table 1: the mean for each question Questions The design of Zara is one of the most fashionable designs in the fashion industry. The speed of launching a new collection of product of Zara is fastest and often is not reproduced.86 3.50 3.55 4. The results of the questionnaire show that participants are inclined to agree that Zara’s design is the most fashionable in the fashion industry.77 The Mean 3. the latter one is 3. You are familiar with the logo of “Zara”.
5. fashion is difficult to emphasise the instrumental aspects of intrinsic attributes. The type of purchasing motivation affects the option between a functional and an expressive positioning. so it is not a good decision for Zara 43 . The Mean 3. The second reason is that participants enjoy buying Zara so that the purchasing motive is positive.. The first reason is that respondents are inclined to feel comfortable and fashionable when they are wearing Zara clothing (see Table 2). respondents are satisfied with the design of Zara in relation to its medium price. So logo design is one of main differentiations of Zara when compared with other brands.05 Regarding the intrinsic dimension of positioning.Besides product design.68 3. logo design has a central place in brand management. According to consumer views. All respondents think Zara has higher quality than low cost brands like Primark. Zara is an impressively positioned brand. Actually. While Zara’s price strategy is effective. You are willing to buy Zara because you feel it reflects your social class. such as “Channel” and “Primark”. or an expressive approach” (Riezebos et al. this fact is one of the main characteristics of Zara’s brand management. All participants tend to be familiar with the logo of ‘Zara’ and can distinguish it from other brands. a positive one “… demands a functional approach with the emphasis on impressive aspects. you feel very comfortable and fashionable. whereby a high price is indicative of high quality.2 Intrinsic aspect of positioning Table 2: the mean for each question Questions Wearing Zara clothing. You enjoy buying Zara. 2003: 58).68 3. which means the feelings connected to the utilisation of a brand. This indicates that a great number of consumers see the price of a brand as an indicator of quality.
In the intrinsic aspect. you feel yourself being beautiful. 2003: 56).68 3. percentages of the choice of disagree and neutral are the same: 36% (see Figure 1). There is a tendency that participants are not sure the motivation of purchasing Zara is that they feel it reflects their social class. consumers can make it clear to which social group they belong and those to which they do not want to belong” (Riezebos et al. Whereas 28% of participants agree this view. stylish or elegant. Strongly disagree Strongly agree 0% 14% Disagree 36% Agree 14% Strongly agree Agree Neutral Disagree Strongly disagree Neutral 36% 5. and Mittal (1988) refers to it as ‘psychosocial meaning’ of a brand. The Mean 3.09 3.. It is means that “By the purchase and open consumption of [a brand].to focus on this part. such as middle class. Do you think Zara appeals to middle class professional people? Wearing Zara. Figure 1: You are willing to buy Zara because you feel it reflects your social class.3 Choosing brand value Table 3: the mean for each question Questions You choose the Zara only because you need clothes.77 44 . It is better for Zara not to put an expressive approach into its heart positioning because of uncertainty from consumers’ feedback.the expressive positioning. The answer to Question 13 reveals whether Zara can be emphasised in the expressive approach positioning. there is another approach .
Respondents have a tendency to feel they become more beautiful.According to the literature review. With reference to Question 12. 32% respondents agree (14% of them strongly) that Zara can appeal to middle class professional people. they are inclined to choose a neutral response. More explicitly. “The first phrase in choosing brand values is the choice of the aspiration level of the brand”. Compared with these three levels. and brand values should be concentrated on those two levels as well. which is called outer-directed aspiration level. such as self-fulfillment or self-respect.4 Brand images. the core of the notion of brand values is that a value must control everything that is associated with the brand. whereas 36% disagree and 32% are not so sure (see Figure 2). This point is related to relational demands of consumers. Zara should take more notice of need-driven and inner-directed aspiration than outer-directed aspiration. and there are three aspiration levels. Figure 2: Do you think Zara appeals to middle class professional people? Strongly disagree Strongly agree 0% 14% Disagree 36% Agree 18% Strongly agree Agree Neutral Disagree Strongly disagree Neutral 32% 5. which is needs-driven aspiration. which refers to consumers’ demand for self-actualisation. Participants tend to choose Zara only because they need clothes (see Table 3). stylish or elegant when they are wearing Zara. Since clothing protects people’s bodies. the value of need-driven is security. So the value of this level emphasises personal factors. The third level is inner-directed aspiration. brand-added value and brand name 45 .
00 The trend of the questionnaire results is that the image of Zara is modern and fashionable. The branding of Zara offers you a guarantee of quality. you can distinguish it from other brands. What is more. positive and strong brand image can enhance brand-added value.77 4. When people mention other high street brands. The most important thing is that they think the Zara brand keeps a high level of quality all the time (41% of participants agree with this view. Gap. appears quickly in your mind. the more the management of that brand is effective. H&M. such as Next. Due to participants’ views.55 4. Zara.00 The Mean 3. the Zara brand has a good reputation amongst fashion brands. The perceived performance of a brand is one segment of brand-added value.Table 4: the mean for each question Questions The image of Zara is modern and fashionable. 59% keep a 46 . Zara has a good reputation amongst fashion brands.09 4.14 3. you immediately know it is a fashionable brand. The better the brand images.05 3. Similarly. the brand name. When you see or hear the brand name Zara. Zara keeps a high level of quality all the time. which can be divided into perceived quality and the perceived material differentiation.95 4. When you see or hear the brand name Zara. and positive (see Table 4). the creation of images in Zara is very successful. 4. Zara has a positive image. You can associate the brand name.91 4. with the product itself.5 3. The branding of Zara gives you product satisfaction. Zara. Participants are inclined to consider that the branding of Zara offers them a guarantee of quality and gives them product satisfaction.
On the other hand.. the psychosocial meaning has not had an important influence on added value. H&M. There is also a tendency. Zara.00 (equals to ‘Agree’ choice). Zara. So in this study. the best-known brand has a more than proportionally high level of brand-added value than the lesser-known brand” (Riezebos et al. Zara can not clearly show which social class it stands for. a high level in perceived performance and in brand name awareness leads to a high added value of Zara. Another segment of brand-added value is psychosocial meaning. In general. the brand name. brand name awareness is a major element that distinguishes between the notions of brand image and brand-added value. when people mention other high street brands. to immediately know it is a fashionable brand and can distinguish it from other brands. such as Next. from unawareness to top-of-mind awareness. A highly perceived performance leads to a high brand-added value. Gap. with the product itself. the level of awareness of Zara’s brand name is high. There are four levels of brand name awareness. Finally. To sum up. As the mean of both two is 4. quickly springs to their mind.. “A well-known brand name can have more value to a consumer than an unknown brand name. This awareness has a reinforcing influence on the perceived performance and on the psychosocial meaning of a brand. The results illustrate how participants tend. Therefore. and no one disagreed). 2003: 72).neutral view. It stands for a value that the corporation has and helps consumers to differentiate Zara from other brands. Participants also associate the brand name. More importantly. consumers also have a preference for articles with a well-known brand name” (Riezebos et al. this awareness indicates that Zara uses brand name as an instrument effectively. which is mentioned in the positioning (Question 13). “For two brands with the same positively experienced associations. 47 . on hearing or seeing the brand name Zara. 2003: 72).
You would be interested in Zara home because of your loyalty to the Zara. 4.5 Advertising Table 5: the mean for the question Question You have rarely seen advertising of Zara brand. In 2003.14 3. You have seen Zara store in more than two countries.82 Zara has several basic product lines. Zara brand has perfume.6 Zara’s extension strategy Table 6: the mean for each question Questions The Mean Besides clothing.91 3. According to the results. Zara was extended to create another product class.41 2. which sells home furnishings. belts and cosmetics lines also. advertising does not play a role in the management of Zara. shoes.Zara does not spend much money on it. The 48 . which sells home furnishings. Most participants have rarely seen advertising of the Zara brand (see Table 5). Women’s and men’s clothing are the most important product line in Zara. shoes. The Mean 4. 5.32 Although the effect of advertising on brand development and management is significant . whereas there are perfume. Respondents tend to agree this point as they find these products in Zara stores (see Table 6). You are aware that Zara has introduced Zara Home.5. more advertising results in a high level of brand name awareness and a positive image for consumers . belts and cosmetics in one store.for example. Zara Home.
7 Summary of the findings According to the data that was collated from consumers. my question asked whether they would be interested in Zara Home because of their loyalty to Zara. positioning and brand values choice. 5% were strongly aware. It is clear that in the price dimension of positioning. and the marketing costs of introducing a new brand are extremely high. whether the extension strategy of Zara is successful or not. In such a case. In more detail. 59% chose the neutral choice. brand images and added value of Zara are shown. In fact. which sells home furnishings Strongly disagree 0% Strongly agree 5% Disagree 5% Agree 9% Strongly agree Agree Neutral Disagree Strongly disagree Neutral 81% 5. all respondents deemed that Zara is an international branding. Whether this strategy is successful in the view of consumers (Questions 28 and 29). Interestingly. Hence. 14% were aware this extension. Figure 3: You are aware that Zara has introduced Zara Home. and 5% were definitely not aware of this strategy (see Figure 3). 14% agreed with this view. this outcome is not decisive. Zara can obtain financial benefits and a larger market share (e. different target groups). most respondents seemed unaware that the Zara brand had introduced Zara Home. Zara uses a medium price strategy to 49 . However. 81% of them keep a neutral position.g. as they tend to have seen a Zara store in more than two countries. and 27% disagreed.reason why Zara chose an extension strategy is that the opportunities of triumph of a new brand are not great. The findings show that respondents were generally unsure.
Zara should select values related to the need-driven and inner-directed levels.manage. Zara chooses an impressive functional approach. does not affect the management of Zara. Consumers are not definitely aware of this extension. this feature is a main differentiation from other brands. because its quality (perceived performance) and brand name awareness are high. The feedback from consumers indicates that the instrumental functional and expressive approach are not suitable for Zara. and enjoys a high reputation amongst the fashion brands. whereas in the intrinsic dimension. The design of Zara is really latest and positioned in medium price. Almost all consumers consider that Zara has a positive and strong image. In the findings. Because of a high level in brand name awareness. In comparison with three aspiration levels. all believe that Zara is an international branding. Nevertheless. In addition. Its fashionable design can also improve the good images and add value for consumers. Another instrument. the data cannot demonstrate whether the extension strategy of Zara is effective or not. advertising. it is shown that Zara utilises brand name as a successful instrument. 50 . Zara’s added value is upward.
brand portfolio. However. Like Zara. it promotes the added value of the brand (i.design and brand name .. 1999). “Design is most effective when it is based on a strong and relevant idea. 1992). Brand name is one of the most unchanging components of a brand.. high awareness of brand name). it utilises two instruments . the corporate design and the logo (Henderson and Cote. 2003). Design plays an important role in four brand attributes: the product. not all three instruments should be used for a corporation. it also can be the centre of product innovation. full use of which can help a brand to become powerful. positioning and brand values choice. The product that Zara designs is fashionable and modern in the fashion 51 . It provides a meaningful attribute of a brand for consumers. This means that they have an important effect on the brand management. for example a brand concept” (Riezebos et al. Owing to roles of design. 1998. extension and endorsement strategy. brand name and advertising are three key instruments of a brand strategy. Then results can be divided into several parts: the role of three instruments (brand name. One gains information from the corporation.Chapter Ⅵ Further discussion The findings of the case study and questionnaire survey complement each other. There are many roles that advertising has. consumers can be familiar with a brand name through advertising.e. whilst the other gains information from consumers. For instance. as an instrument it can be divided into a management instrument and a brand instrument (Kapferer. Carter. the packaging. and for the corporation. brand images and added value. design and advertising).1 The influence of three instruments Riezebos et al. 6. and it is the substitute of the value that a brand can have (Riezebos et al. (2003) pointed out that design. 2003: 127). more significantly.but almost no advertising. Every corporation must choose the most appropriate instrument to manage its brand effectively.
industry worldwide. because these elements lie at the heart of a brand strategy. Even if they are talking about other high street brands like “Gap”. the name “Zara” will spring to their minds in order for them to differentiate it from “Gap”. There are three strategies that can be used in the price dimension of positioning (Ries and Trout. enhance the brand image and added value. The fact that Zara only spends 0. On the other hand. for a prestige one. the degree of differentiation is higher. Despite corporations choosing one instrument to use. Consumers believe they can distinguish the brand name “Zara” from other fashion brands easily. so this instrument is used effectively by Zara. and consumers all agree with this feature. It is known that excellent design offers a good image to consumers. the 52 . A low-cost strategy refers to when a corporation selects to contend with other brands on the lowest price. their brands can still be strong as long as that instrument is employed effectively. To explain. and adds value to the brand for them. In a premium and a prestige strategy. Zara’s design improves its image and provides a high brand-added value. Consumers reported having rarely seen advertising of the Zara brand.2 Positioning and brand values choice One of the first problems that managers should deal with after deciding to carry out a brand strategy is how a brand is positioned in connection with competing brands in the market. every instrument can help the choice of positioning and brand values. In general. 1986b). In the intrinsic dimension of positioning.3% of sales on advertising can be classed as `zero advertising’. The positioning choice has two dimensions: price aspect and intrinsic aspect. a corporation attempts to make a brand differentiable for consumers rather than starting a price war. 6. it is classified as a functional and expressive approach.
by wearing it. Furthermore. Zara’s positioning and brand value choice are successful according to consumers’ feedback and Zara’s corporate strategy. they feel they become more beautiful and stylish. Consumers are satisfied with this price strategy in relation to fashionable design.functional approach is constituted of instrumental and impressive aspects. The relative values with these two needs are security and self-fulfillment. and translate each value into concrete attributes. After choosing the positioning. Then managers choose a maximum of three values within the aspiration levels selected (Kahle. 1986). as Zara is hard to reflect social class (expressive approach). which has three levels: need-driven. an accurate choice of these provides the cornerstone to a well-managed brand. Zara clothing protects consumers’ bodies and. 1954). Besides. and a positive purchasing motivation demands an impressive approach. So far. A brand can be meaningful to consumers if the choice of positioning and brand value are made. they are willing to purchase Zara because of material need. so Zara does not focus on an instrumental approach. and the need for self-actualisation. Zara needs to focus on the impressive approach in the intrinsic positioning.. the more successful a brand becomes. So Zara should convert these values into actual attributes. although it has already chosen the premium strategy (medium price) in the price positioning. In the case of Zara. 53 . According to consumers’ feedback. The more appropriate the positioning and brand value choice. whether this option is proper or not should be reflected by consumers’ consumption. managers should more explicitly determine the values that a brand should represent. From the replies of consumers. The first and most significant step to choose brand values is choosing the aspiration level. the motive of buying Zara is based on pleasurable experiences. et al. outer-directed and inner-directed (Maslow.
. The content “… refers to the associations a brand name may invoke” (Riezebos et al.6. and these associations give consumers a good image. Due to the exact data from the corporation. Due to the consumers’ attitudes. design and product strategy have an effect on the creation of brand images. Zara is good at collecting consumers’ feedback. Zara launched a Mum line (Inditex. This strategy improved Zara’s image in the mind of consumers.3 Brand images and added value Positioning and brand values that are chosen can be conveyed to consumers and form an image. The chic design of Zara evokes several associations such as “fashionable”. while this design with medium price enhances Zara’s image to be stronger and more positive. So managers should take consumers’ attitudes into account when they express their brands’ images and added value. Consumers deem the speed of launching a new collection of products of Zara is fast. The concept of brand-added 54 . In 2007. and obtains a high reputation in the fashion industry. it produces about 11. because the in-store feedback is sent back to designers every day. However.000 different products annually. 2002). which extends to accomplish mothers’ needs and feedback. the unique product strategy of Zara promotes the brand images. and spends four to five weeks on the process of designing a new product and getting finished products into its stores. strengthening the brand still further. 2003: 64). consumers’ preferences will be fulfilled with a greater success (Roux. Consumers’ attitudes determine whether the brand image is positive. It takes account of consumers’ demand.. Although positive or negative brand images are decided by consumers. the reputation is high). they receives a positive image from Zara (the content is high quality and modern. 2007). A brand image comprises content and reputation. “A brand image gives no insight into the relative value that consumers ascribe to attributes or associations. Some brands call up many associations. If the product life cycle is shortening. In addition. “beautiful” and “colourful”. and whether the brand-added value is high.
they think Zara keeps a high level of quality all the time. A bastion brand has the greatest strategic and financial merits 55 . and how to control this situation is something which must be considered as part of the brand’s management. Brand portfolio. These views show that Zara is perceived as having high performance levels. So psychosocial meaning has not a remarkable effect on Zara’s added value. 2003. Owing to consumers’ attitudes. In a word. and offers a more steady foundation for extension to the brand. Inditex Group. For instance. There are many advantages to building up a brand portfolio. As mentioned in the positioning part. and a high level in any one of these components leads to a high brand-added value (Riezebos et al. the branding of Zara provides them with a guarantee of quality and offers them product satisfaction. the added value of Zara is high. psychosocial meaning and brand name awareness. Aaker. a brand with positive images and highly added value can easily become a powerful brand. extension and endorsement strategy Corporations have a tendency to develop several brands in more than one market. Awareness of Zara’s name is extremely high. and can differentiate it from other high street brands. 2003: 69) Brand-added value is constituted of perceived performance (perceived quality and perceived material differentiation).. Zara belongs to a brand portfolio. this strategy is relative to a greater degree of risk spread. 1997.” (Riezebos et al. they are instantly aware that it is a fashion brand.4 Brand portfolio. when consumers hear or see this brand name. Zara struggles to convey which social class it belongs to. What is more. four types of brand are differentiated..value does take into account the differences in importance between associations. 6. Therefore. In a brand portfolio. brand extension and endorsement are main forms for a corporation. 1999).
. 2007) Inditex selects the endorsement strategy rather than the extension strategy. a powerful brand has a distinctly manifest value.for the corporation. In other words. Fighter brands defend the bastion brand from competitive discount brands. And finally the prestige brand is one with the greatest financial value (Riezebos. and to spread risks in the competition. but the latent value of a brand can be exploited by brand extension and endorsement strategy. Moreover. A brand extension means the 56 . A flanker brand is used to prevent potential competitors. it can develop more successfully than other corporations with a single strategy. as it is the most valuable brand in a brand portfolio. It also demonstrates that Zara is an effective brand.e. 2003). Massimo Dutti. Zara is an international branding because 68 countries all over the world have its stores. In developing a brand’s latent values. Oysho. if a brand portfolio is well controlled. as a bastion brand in a brand portfolio. which is the most profitable brand and has a high strategic advantage. brand acquisition and brand alliance (Riezebos et al. and promote the strategic position of this corporation in other countries (Marston. the endorsement strategy can be used. Other brands in the Inditex Group can assist Zara to stem possible rivals from entry into its market. 2003). 1992). The Inditex Group adopts a brand development strategy. This type of branding can advance the financial condition of a corporation. Inditex has seven endorsed brands: Zara.. In the international brand strategy. 1995b). three strategies can be used to set up a brand portfolio: brand development. the different target group) (Riezebos et al. because it is eager to appeal to more consumers than those in its contemporary consumer franchise (i. Zara is a bastion brand. It is obviously shown that. Pull and Bear and Uterqüe (Inditex. Zara is being more successful. A successful brand has a manifest value and a latent value. a new product has a new and unique brand name. According to Table 1. In an endorsement strategy. Bershka.
Zara Home. Although brand name. Zara Home is successful. not all of them should be employed. and there are not so many stores in the street about this brand. they are not so sure whether Zara’s extension strategy is rewarding. It is well-known that the fashionable design with the medium price is one main characteristic of Zara. Zara is a successful and strong brand. so they chose to employ design and brand name. Zara also developed a new extended brand. which utilizes an endorsement strategy to exploit more brands. Awareness of brand name Zara Home is higher as Zara. Zara set up a brand portfolio. It is better to use the most appropriate one. Zara chooses premium strategy and impressive approach positioning. and then consumers think Zara Home also has the same feature. Zara Home. From the corporation’s view. Zara evokes feelings of familiarity (positive association) within consumers. In addition. design and advertising as an instrument have an important effect in the brand management. Based on these factors. such as Zara and Zara Home.name of an existing brand is employed for a product in a dissimilar product group. 57 . its parent brand. so it is extended to another product class. Perhaps Zara Home is still a new brand for consumers. Zara has become one of the largest global fashion companies. and the brand value of Zara is related to need-driven and inner-directed aspiration levels. no matter which strategy is chosen. which perhaps results in a greater probability of purchasing Zara Home. In summary. It has positive and strong images and high brand-added value. is already known to consumers. From the view of consumers. it must be useful to develop a brand to become powerful. Inditex Group. Hence.
Even if corporations only select one instrument. whilst the latter one accumulates scale points to measure consumers’ attitudes. should become a powerful brand. the questionnaire survey gave respondents only a short amount of time in which to submit their forms. Consequently. brand extension and endorsement strategy can be used. Then the most serious limitation occurred. According to the findings of Zara. Brand portfolio. and Zara is taken as a good case study to indicate it. The former method gathers the information from Zara. Due to the initial filtering process. A brand must be forceful if these strategies are to be controlled well. Both a case study and questionnaire survey have been used to collect data. only 22 participants took part in this study. design and advertising are crucial instruments to help a brand to develop more successfully. brand images and added value lie at the heart of a brand strategy. extension and endorsement are good strategies to exploit more brands. the choice of positioning and brand values. a brand with precise positioning and brand values choice. At first. which was the size of questionnaire survey.1 Limitations of the study Although the research question had been answered. the building of a brand portfolio. their brands can be powerful as long as that one is used effectively. the research question is how a brand has managed to become a powerful brand. not many of those sampled returned their forms on time.Chapter Ⅶ Conclusion In this study. Brand name. Consequently. even in the brand management. If corporations are interested in exploiting several brands into more than one market. but it is not necessary to employ all of them. which perhaps may have 58 . there were some limitations. 7. positive brand image and high brand-added value. design and advertising have a significant influence on this process. Brand name.
More explicit research must be undertaken in the future. the theories perhaps are insufficient. as I had just found the Inditex Group annual reports and some articles in the website. my gathering of data may have been biased.2 Recommendations for future research Brand management is increasingly becoming a remarkable debate. Thirdly. for example. In such a brief study. Finally. employees and shop location. no opportunity was given for respondents to clear up any such misunderstandings. but also related to many other things. the questions were designed by me. Since the researcher did not conduct this questionnaire survey face-to-face. and participants’ misunderstanding the questions might have led to them choosing a different answer than they would have if they fully understood the question. such as corporation.adversely impacted on the reliability of the results. so the design was not perfect. The scope of brand management is extremely wide. 59 . When I began to analyse the case of Zara. 7.to hundreds. Next. in the literature review. it is difficult to draw precise conclusions about how a brand has managed to become a powerful brand. contacting the corporation directly. So in the further research. the information for the case study was not enough. which is not only related to the brand. The size of questionnaire survey sample should be increased significantly . Then the information that is used for the case study must be collected as widely as possible. it is better to take more factors into account..
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5. Disagree 2. Strongly agree 0. You are familiar with the logo of “Zara”. 69 . Agree 3. Disagree 4. Agree 3. such as “Channel” and “Primark”. Strongly agree 0. Strongly disagree 4. Have you ever bought Zara brand? Are you a university student? Are you below 35 years of age? Yes / No Yes / No Yes / No Please choose answer from the following five answers ranging from strongly agree to strongly disagree. The design of Zara is the most significant reason that you are loyal to it.Appendix 1: Questionnaire Thank you for taking part in this study. Before we start the questionnaire. Strongly agree 0. The speed of launching a new collection of product of Zara is fastest and often is not reproduced. Strongly agree 0. Agree 3. Neutral 2. 5. Neutral 2. Neutral 2. Disagree 5. 5. Agree 3. You can distinguish the logo of “Zara” from other logos. Strongly disagree 4. Neutral 2. 5. The design of Zara is one of the most fashionable designs in the fashion industry. please answer the following questions. Strongly disagree 4. Disagree 3. Strongly disagree 4. (Single-choice question) 1.
Disagree 12. Zara has higher quality of material. Strongly disagree 4. 5. Do you think Zara appeals to middle class professional people? 5. you feel very comfortable and fashionable. Disagree 7. Agree 3. Agree 3. Disagree 11. 5. You are satisfied with the design of Zara with relation to its price. The price of Zara is neither too high nor too low. Strongly agree 0. Disagree 10. Neutral 2. Neutral 2. Agree 3. You can accept this medium price of Zara. Strongly disagree 4. Strongly agree 0. Strongly disagree 4. Agree 3. Compared to brands like Primark. Neutral 2. Neutral 2. Strongly agree 0. Strongly agree 0. You choose the Zara only because you need clothes. 5. Disagree 6. Strongly disagree 4. Agree 3. Strongly agree 0. Strongly disagree 4. Strongly agree 0. Neutral 2. 5. 5.5. Strongly agree 0. 5. Strongly disagree 4. Disagree 8. Disagree . Strongly agree 0. Agree 3. Neutral 2. Agree 3. Neutral 2. Strongly disagree 4. Wearing Zara clothing. Agree 3. Neutral 2. Strongly disagree 70 4. Disagree 9.
Agree 3. 5. Disagree 20. Strongly disagree 4. Agree 3. 5. Neutral 2. Strongly disagree 4. stylish or elegant. Strongly agree 0. Strongly agree 0.13. Strongly agree 0. Neutral 2. The image of Zara is modern and fashionable. Strongly disagree 4. you feel yourself being beautiful. 5. Agree 3. Strongly agree 0. The branding of Zara gives you product satisfaction. Agree 3. Neutral 2. Neutral 2. Agree 3. 5. Strongly disagree 4. Disagree 18. Zara has a good reputation amongst fashion brands. Disagree 17. Strongly disagree 4. Disagree 14. Strongly disagree 4. Agree 3. Strongly agree 0. You enjoy buying Zara. Strongly agree 0. The branding of Zara offers you a guarantee of quality. Zara has a positive image. 5. 5. 71 . Neutral 2. Disagree 16. Neutral 2. Disagree 15. Wearing Zara. You are willing to buy Zara because you feel it reflects your social class. Strongly agree 0. Disagree 19. Agree 3. 5. Strongly disagree 4. Neutral 2.
Strongly disagree 72 4. Gap. such as Next. Strongly agree 0.5. Strongly disagree 4. Neutral 2. Strongly disagree 4. you can distinguish it from other brands. Strongly disagree 4. Neutral 2. 5. Agree 3. You can associate the brand name. Neutral 2. with the product itself. Agree 3. 5. Disagree 23. Zara. the brand name. Strongly disagree 4. You have rarely seen advertising of Zara brand. Disagree 22. Agree 3. Neutral 2. Strongly disagree 4. you immediately know it is a fashionable brand 5. Disagree 26. Strongly agree 0. Agree 3. Neutral 2. 5. Disagree 25. When you see or hear the brand name Zara. Strongly agree 0. appears quickly in your mind. When people mention other high street brands. Zara. Strongly agree 0. Disagree . When you see or hear the brand name Zara. Agree 3. Zara keeps a high level of quality all the time. Strongly agree 0. Strongly agree 0. Neutral 2. Neutral 2. Agree 3. Strongly agree 0. 5. Disagree 21. Strongly disagree 4. Disagree 24. 5. Agree 3. H&M.
Neutral 2. Strongly disagree 4. Besides clothing. You are aware that Zara has introduced Zara Home. Strongly agree 0. Strongly agree 0. belts and cosmetics in one store. Strongly disagree 4. Strongly agree 0. You have seen Zara store in more than two countries. Neutral 2. Neutral 2. Disagree 30. Disagree 73 . Disagree 29. shoes. Strongly disagree 4.27. Disagree 28. Agree 3. Agree 3. Strongly agree 0. 5. You would be interested in Zara home because of your loyalty to the Zara. 5. Agree 3. Zara brand has perfume. Agree 3. Strongly disagree 4. 5. 5. which sells home furnishings. Neutral 2.
Strongly disagree 4. (Single-choice question) 1. Have you ever bought Zara brand? Are you a university student? Are you below 35 years of age? Yes / No Yes / No Yes / No Please choose answer from the following five answers ranging from strongly agree to strongly disagree. 5.Appendix 2: One Sample of Questionnaire Thank you for taking part in this study. Strongly disagree 4. please answer the following questions. such as “Channel” and “Primark”. Agree 3. You are familiar with the logo of “Zara”. Strongly agree 0. The design of Zara is one of the most fashionable designs in the fashion industry. Neutral 2. 74 . Strongly agree 0. Neutral 2. Strongly agree 0. Strongly disagree 4. You can distinguish the logo of “Zara” from other logos. Disagree 2. The design of Zara is the most significant reason that you are loyal to it. Strongly disagree 4. Strongly agree 0. 5. Agree 3. Agree 3. Agree 3. The speed of launching a new collection of product of Zara is fastest and often is not reproduced. Neutral 2. 5. Neutral 2. 5. Disagree 5. Disagree 4. Disagree 3. Before we start the questionnaire.
Strongly disagree 4. The price of Zara is neither too high nor too low. Strongly disagree 4. Neutral 2. Agree 3. Strongly disagree 4. 5. Strongly agree 0. Strongly disagree 4. Neutral 2. Agree 3. you feel very comfortable and fashionable. Neutral 2. You choose the Zara only because you need clothes. Agree 3. Strongly agree 0. Strongly agree 0. Strongly disagree 75 4. Strongly agree 0. Disagree . Neutral 2. Disagree 6. Wearing Zara clothing. Strongly agree 0. Strongly disagree 4. Strongly disagree 4. Zara has higher quality of material. Disagree 8. Agree 3. Strongly agree 0. 5. Strongly disagree 4. 5. You can accept this medium price of Zara. You are satisfied with the design of Zara with relation to its price. Disagree 11. Agree 3. Agree 3. Strongly agree 0. 5. Strongly agree 0. 5. Neutral 2. Neutral 2. Agree 3. Neutral 2. Agree 3. Do you think Zara appeals to middle class professional people? 5. Disagree 9. Disagree 7. Compared to brands like Primark. Disagree 12. Disagree 10. 5.5. Neutral 2.
Strongly agree 0. Neutral 2. Agree 3. Disagree 16. The branding of Zara offers you a guarantee of quality. Agree 3. Strongly disagree 4. The branding of Zara gives you product satisfaction. 5. Strongly agree 0. Neutral 2. Neutral 2. The image of Zara is modern and fashionable. Neutral 2. You are willing to buy Zara because you feel it reflects your social class. 5. 5. Zara has a positive image. Strongly disagree 4. Strongly disagree 4. 5. 5. Disagree 14. Neutral 2. Disagree 17. Agree 3. Agree 3. Strongly agree 0. Disagree 18. stylish or elegant.13. Strongly disagree 4. Neutral 2. Disagree 19. Disagree 20. Zara has a good reputation amongst fashion brands. Agree 3. 5. Strongly agree 0. Strongly agree 0. Disagree 15. Strongly agree 0. Strongly disagree 4. Agree 3. Strongly disagree 4. Strongly agree 0. Agree 3. Strongly disagree 4. Wearing Zara. you feel yourself being beautiful. 5. Neutral 2. 76 . You enjoy buying Zara.
5. Strongly agree 0. Strongly disagree 4. Disagree 23. Agree 3. Neutral 2. Strongly agree 0. Strongly agree 0. appears quickly in your mind. Neutral 2. Disagree . Neutral 2. Neutral 2. Strongly disagree 4. Strongly disagree 77 4. Strongly disagree 4. When you see or hear the brand name Zara. Strongly disagree 4. You have rarely seen advertising of Zara brand. You can associate the brand name. Disagree 25. Zara. you can distinguish it from other brands. Strongly disagree 4. 5. Neutral 2. Agree 3.5. When people mention other high street brands. Disagree 26. 5. Disagree 24. Agree 3. Strongly agree 0. Agree 3. Strongly agree 0. Zara keeps a high level of quality all the time. Strongly disagree 4. Disagree 22. Neutral 2. Disagree 21. Agree 3. H&M. with the product itself. such as Next. you immediately know it is a fashionable brand 5. Strongly agree 0. Agree 3. 5. Agree 3. Neutral 2. Strongly agree 0. Zara. 5. the brand name. When you see or hear the brand name Zara. Gap.
Disagree 28. Agree 3. You would be interested in Zara home because of your loyalty to the Zara. Strongly disagree 4. You have seen Zara store in more than two countries. Strongly agree 0. 5. 5. which sells home furnishings. Neutral 2. Disagree 78 . Neutral 2. shoes.27. Disagree 30. Strongly disagree 4. Agree 3. Neutral 2. Agree 3. You are aware that Zara has introduced Zara Home. Zara brand has perfume. Besides clothing. 5. Neutral 2. Strongly disagree 4. Strongly disagree 4. Agree 3. Disagree 29. Strongly agree 0. Strongly agree 0. Strongly agree 0. belts and cosmetics in one store. 5.
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