Académique Documents
Professionnel Documents
Culture Documents
Danye LUO
by
Danye LUO
2008
1
Contents
Acknowledgements
Abstract
Ⅰ
ChapterⅠ Introduction
1.1 Background to brand management……………………………………..8
1.2 Research question………………………………………………………..9
Ⅱ
ChapterⅡ Literature Review
2.1 What is a brand?................................................................................12
2.2 How a brand is managed?.................................................................13
2.2.1 Brand strategy…………………………………………………..…13
2.2.2 Three instrument of a brand strategy……………………….......15
2.2.2.1 Brand name……………………………………………………16
2.2.2.2 Design of the brand…………………………………………..17
2.2.2.3 The effect of advertising…………………………………..…18
2.2.3 Planned meaning of a brand…………………………………..…19
2.2.3.1 Positioning choice………………………………………….…19
2.2.3.2 Brand value choice…………………………………………...22
2.2.4 Brand image………………………………………………………..23
2.2.5 Brand-added value………………………………………………...24
2.2.6 Development of brand……………………………………………..26
2.2.6.1 Brand portfolio………………………………………………….26
2.2.6.2 Brand extension and endorsement strategy………………..27
2.3 The brand of Zara is a good study……………………………………….29
Chapter Ⅲ Methodology
3.1 Qualitative and Quantitative Research Methods………………………..30
3.2 The chosen research approaches………………………………………..31
2
3.2.1 Case study…………………………………………………………..31
3.2.2 Questionnaire survey………………………………………………31
3.2.3 Triangulation of these two methods……………………………...32
3.3 Questionnaire method………………………………………………….....32
3.3.1 Participants……………………………………………………….…32
3.3.2 Questionnaire design…………………………………………..….32
3.3.3 Questionnaire procedure……………………………………....…33
3.4 Ethical issues that may need to be considered……………………….33
Ⅴ
ChapterⅤ The findings from questionnaire
5.1 The effect of design and price strategy…………………………………42
5.2 Intrinsic aspect of positioning…………………………………………....43
5.3 Choosing brand value……………………………………………….…...44
5.4 Brand images, brand-added value and brand name………………....45
5.5 Advertising…………………………………………………………………48
5.6 Zara’s extension strategy………………………………………………...48
5.7 Summary of the findings………………………………………………....49
Chapter Ⅶ Conclusion
7.1 Limitations of the study…………………………………………………58
7.2 Recommendations for future research……………………………….59
References…………………………………………………. . .………….........60
Appendix 1 Questionnaire…………………. . .……………………………69
Appendix 2 One sample of questionnaire……………………………….74
4
Acknowledgement
I would like to give a huge thanks to my supervisor Harjit Skehon, who gave
appreciate his hard work on the revision of it. I also would like to express my
grateful appreciation to all those who kindly took part in and supported this
dissertation.
5
Abstract
The meaning that a brand stands for is extremely significant for consumers, so
a considerable number of researchers (Philips, 1988; Murphy, 1990; Brymer
and Schiro, 1989; Temporal, 2002) are increasingly interested in brand
management. The main purpose of this study is to investigate how a brand is
managed to become a strong brand. The study will commence with an
analysis of several key elements in the management of a brand. The three
major instruments of a brand strategy are: positioning and brand values choice;
brand images; and added value. If corporations exploit some brands into more
than one market, the development of a brand portfolio, extension and
endorsement strategy may be used (Riezebos et al., 2003; Riezebos, 1995b;
Temporal, 2002).
Zara is a good case study to show how the brand has been managed to
become a powerful brand in the fashion industry (Tungate, 2005). 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, as mentioned above, in the brand management.
Research suggests that a brand with accurate positioning and brand values
choice, positive brand image and high brand-added value, should become a
powerful brand. Brand name, design and advertising have an important
influence on this progression. A brand portfolio, brand extension and
endorsement strategy can be used to develop brands for entry into other
markets. If these strategies are managed well, a brand can also become
stronger.
6
endorsement strategy, Zara.
7
Ⅰ
ChapterⅠ Introduction
1.1 Background to brand management
When people see the word “Nike”, “BMW” or “Coca Cola”, brand is a word that
springs to mind. The English word `brand’ originated in the Middle Ages (from
476 to 1492). It is “… a degenerate of the old Norse word brandr, which refers
to the branding of cattle” (Riezebos et al., 2003: 2; Keller, 1998; Cheverton,
2006; Olins, 2003). This was a way of making a differentiation in ownership.
“The Vikings may have spread the word brandr in England, where it was
eventually incorporated into daily language” (Riezebos et al., 2003: 2).
8
(Temporal, 2002; Riezebos et al., 2003) pointed out that good brand
management helps corporations make powerful brands. Put simply, brand
management “… is a process that tries to take control over everything a brand
does and says, and the way in which it is perceived” (Temporal, 2002: xiii).
Zara is a good case study to show how it has managed to become a powerful
brand in the fashion industry (Tungate, 2005). Zara is only a high street brand;
however, in the 2007 Best Global Brands, it was ranked at No. 64, thereby
exceeding some luxury brands such as Prada, Burberry, Polo RL (Interbrand,
2007). Zara has managed to become the most valuable brand of the Spanish
fashion distribution group, Inditex (a brand portfolio). Having 8 endorsed
brands in the portfolio has helped Zara to gain power. It has also extended to
set up another product class, Zara Home, as a result of its success and
influence (Inditex Group, 2008).
Two key factors that distinguish Zara from other fashion brands are design
(most fashionable) and speed of launching a new collection (fast); these
factors make it easier to implement a good brand strategy. Zara brand
managers are more likely to use design and brand name to carry out a brand
strategy, and there is almost no advertising involved. In the fashion industry,
the design of Zara plays the most significant role in the success of developing
10
a strong brand. In addition, Zara is positioned in the premium price (price
dimension) and impressive approach (intrinsic dimension) by managers, and
the material and quality of it is relevant to this price strategy. The chosen
values of Zara fulfill not only the material need of consumers (e.g. clothing is
for security), but also consumers’ demand for self-actualisation (e.g. wearing
Zara, they feel they are beautiful). Besides these, 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. For instance, Zara’s name springs
to consumers’ minds when people mention the high street fashion brands.
Research into how Zara works towards becoming a strong brand will be
conducted using a mixed research method. Qualitative research will take the
form of a case study of Zara, and quantitative research will take the form of a
questionnaire survey.
The results chapter provides a conclusion of the case study and displays the
findings of the questionnaire. This will be followed by a discussion section,
when issues arising from the research will be discussed and analysed.
11
Ⅱ
ChapterⅡ Literature Review
2.1 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., 2003; Keller,
1998; Petty, 2008; Kohli et al., 2002; Kohli and LaBahn, 1997; Olins, 2003).
The logo may perhaps be a name (e.g. a shop name as in ‘Boots’; ingredient
branding as in ‘Intel’; or a TV channel such as ‘BBC’). The logo may take the
form of a picture (e.g. a monogram: Yves Saint Laurent) or form mark (e.g. the
Pepsi bottle) (Kolter and Keller, c2006; Keller, 1998).
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to a product when manufacturers created it, which had to be meaningful to the
consumer (a brand as ‘product-plus’). Nowadays, however, more and more
corporations draw attention to the brand-as-a-concept method, because they
hope to attract particular group of consumers. 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, Swatch, etc.)” (Riezebos et al., 2003: 14). The traditional view of brand
meant that corporations adopted ‘product-driven’ strategies, whereas the more
modern strategy is ‘market-driven’ (Moran and Riesenberger, 1994; Temporal,
2002). This focus on the market means that brand managers are increasingly
taking part in product development, with brand management gradually
becoming more salient for corporations.
The choice of a brand name should take account of four main long-term
components. The first is the size of marketing communication budget for the
new brand. If there is a larger budget, a corporation prefers to select a
multilithic brand name strategy. Secondly, the sort of positioning has a crucial
influence on the relation between the product and the brand. For example, the
differentiation of a brand is based on an expressive aspect; the name should
connect to an experience world around the brand. The third component is the
competitive position of the brand. 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.
Finally, 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. For instance, in Spain, the name `Matador’,
which is a brand of American Motors, means ‘killer’ (Riezebos et al., 2003).
The effect of the brand name can be great when consumers cannot thoroughly
assess a brand before purchase; on the other hand, it decreases the risk to
buy a brand for consumers that they can not evaluate before purchase. If
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consumers are acquainted with the brand name, they can more readily
distinguish between the intrinsic attributes amongst brands. 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., 2003: 45). In this way, a product is used to show which social group
consumers belong. From these points, brand name will add value to a brand,
and is a key element in the brand management.
18
There is also a relationship between advertising and brand sales: higher sales
of a brand can be contributed by advertising. Two forms of advertising
implementation have been studied, and both are relevant to the positioning
approaches. One is called informational advertising because functional factors
play a vital part in it; another is transformational advertising, as an expressive
positioning approach is a central theme in it. In summary, advertising has an
outstanding influence on the development of brand (Puto and Wells, 1984).
Besides price, the type of purchasing motivation can affect the option between
functional and expressive positioning. Fennell (1978) and Rossiter and Percy
(1987; 1997) have studied both negative and positive aspects of purchasing
motivation of consumers. Positioning targeted at the negative one refers to
consumers utilising a brand in a condition that is experienced as unpleasant.
Essentially, this type of purchasing motivation needs an instrumental facet of
the functional approach. By contrast, positioning targeted at the positive one
refers to consumers utilising the brand in a condition that is experienced in a
positive way, which can be built on “… pleasurable sensory experiences,
socially rewarding situations or intellectually challenging situations” (Riezebos
et al., 2003: 58). Fundamentally, the positive purchasing motivation is
applicable to use a functional approach with the stress on impressive facets, or
an expressive approach.
Whether or not Zara has managed to become powerful in terms of those vital
elements in brand management, discussed above, is something that will be
considered during the course of the research undertaken for this study.
29
Chapter Ⅲ Methodology
3.1 Qualitative and Quantitative Research Methods
In general, research methods can be divided into qualitative and quantitative.
According to Bryman (1988: 1), “Quantitative research is typically taken to be
exemplified by the social survey and by experimental investigations.” It
concentrates much more on the collection and investigation of digital data and
statistics. A questionnaire is the most frequently used method in quantitative
approaches. A qualitative approach, on the other hand, is much more reliant
upon interviews and case studies and deals generally with much smaller
numbers. It “… uses an inductive logic, with categories emerging from the
participants, rich context-bound information leading to patterns or theories that
help in understanding a phenomenon, thereby making the whole process very
dynamic.” (Jindal-Snape, 2004: 15) Researchers differed in their attitudes to
the reality. “The quantitative researcher views reality as ‘objective’ and
independent of the researcher. The qualitative researcher believes that reality
is constructed by the participants in research situation.” (University of Dundee,
2004: 10)
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3.2 The chosen research approaches
In my research, two methods were selected to be the most proper instruments
with the purpose of collecting authentic and helpful data - case study and
questionnaire survey.
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3.2.3 Triangulation of these two methods
In this study, the research question is how has a brand managed to become a
strong brand, and Zara is taken as a good case study. The material of the
case study is from Inditex Group’s annual reports, which pays more attention
to the financial and economic report as well as international expansion. The
financial data clearly show whether the management of Zara brand is
successful or not. This case study can illustrate how a brand portfolio and
brand extension is administered, 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. Although
data on how the design of the Zara brand is controlled can be collated from
the questionnaire results, a case study provides more detailed statistics and
information. In fact, whether the image of the Zara brand is positive or
negative depends largely on consumers’ view (i.e. questionnaire), although
the case study of Zara can be used to describe how it manages brand image.
Moreover, the brand values and brand-added value are shown through
questionnaire rather than case study, in other words through the feedback of
consumers. Therefore, it can be seen that the case study and questionnaire
survey complement each other.
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Chapter Ⅳ Case study of Zara
4.1 Overview of Zara
Zara is one brand in the Spanish fashion distribution group, Inditex Group.
Since it opened in 1975 in Spain, Zara has transformed the fashion world with
an innovatory business pattern. Nowadays, Zara is one of the largest global
fashion companies. In 2007, the net sales of Zara was €6.264 billion (an
increase of 13% over 2006), and EBIT (Earnings before interest and tax)
reached €1.116 billion (an increase of 23% over 2006). There were 1,361 Zara
stores in 68 countries all over the world at the end of 2007 (Inditex, 2007).
Moreover, Interbrand and Business Week ranked the Best Global Brands by
value for 2007, and Zara was ranked at No. 64 (brand value is $5 billion),
which exceeds some luxury fashion brands, such as Prada (ranked at No. 94),
Burberry (No.95) and Polo RL (No. 99) (Interbrand, 2007). On the basis solely
of the above financial data, it can already be deduced that the high street
brand Zara is a strong brand in the fashion industry.
35
consumers” (Riezebos et al., 2003: 63). So design can affect brand images; an
excellent one offers a strong brand image to consumers. In addition, Zara
chooses a premium strategy in the price dimension of positioning; its price is
neither too high (like Prada) nor too low (like Primark) for consumers. Finally,
the irresistible combination of latest fashion and quality (i.e. product design) at
an affordable price is one of the most valuable differentiations of Zara, which
results in Zara’s brand being strong. This characteristic also promotes brand
images to a high level.
There are some advantages to being part of the Inditex Group. Firstly, the
development of several brands can increase the opportunity that consumers
will purchase a brand that belongs to Inditex. No matter which brand you buy,
Zara or Zara Home, they belong to Inditex. Secondly, “A high barrier of
entrance for potential competitors is created” (Riezebos et al., 2003: 194). For
example, although Massimo Dutti and, Pull and Bear are fashion brands, their
target group is different. The former one is chic design with high quality for men
and women; its target age is from 25 to 45 years old; while the latter one is
casual fashion and sport design for young women and men; their target age is
from 14 to 28 years (Inditex, 2008). So a fashion industry with a single brand
strategy will struggle to gain entry into Inditex’s market. Besides, if another
industry competes with Inditex, which has a target age for men and women
from 20 to 35 years old, then the risk equally impacts on Massimo Dutti and,
Pull and Bear. As a result, Inditex will succeed in the competition. These
38
examples illustrate one of reasons why Inditex chooses the endorsement
strategy rather than the extension strategy, because it “… wants to attract
other consumers than those in its current consumer franchise” (i.e. the
different target age) (Riezebos et al., 2003: 233). Therefore, Zara can be more
forceful in the fashion industry as a bastion brand of Inditex, because other
brands in the Inditex Group can help Zara to prevent potential rivals from
entering its market, and they also help Zara to spread risks in the competition.
Table 1 shows the sales, stores and distribution of each brand in 2007 (except
new brand Uterqüe).
Table 1: sales, stores and contribution each brand in 2007 (In millions of
euros) (Inditex Annual Report, 2007: 41)
From the above table, it is clearly shown that Zara is the bastion brand in the
Inditex Group, which is the most profitable brand, since its sales and
contribution are greater than other brands. Inditex has another merit in that it
39
can provide a more steady foundation for extension to Zara. In 2003, Zara
Home was opened, which “… introduces trends into the home with a
wide-ranging textile range, with bedlinen, table-linen and bathroom textiles,
which is complemented with crockery and decorative objects.” (Inditex, 2007:
55) Zara means a successful and strong brand by extending it to Zara Home.
Awareness of the brand name Zara Home is automatically boosted as a result
of the Zara brand already being known to consumers. In addition, Zara
conjures up feelings of familiarity (positive association) for consumers, which
perhaps leads to a larger possibility of purchasing Zara Home. For instance,
one characteristic of Zara is the fashionable design in combination with the
medium price; consumers will automatically think that Zara Home has the
same features. From the data in Table 1, although Zara Home was created in
2003, its sales have reached €201 millions. This success demonstrates the
effectiveness of Zara’s extension strategy, giving Zara a strategically stronger
position in the fashion market.
Riezebos et al. (2003: 29) suggest that “A successful brand can more easily be
exploited on an international market”. Obviously, Zara is a strong global brand;
there are 68 countries that have Zara stores. Using an international branding
strategy, Zara not only increases its financial position, but also reinforces its
strategic position in the world.
41
Ⅴ
ChapterⅤ The findings from questionnaire
5.1 The effect of design and price strategy
Table 1: the mean for each question
Questions The Mean
The design of Zara is one of the most fashionable designs in the 3.86
fashion industry.
The design of Zara is the most significant reason that you are loyal to 3.41
it.
You can distinguish the logo of “Zara” from other logos, such as 4.50
The price of Zara is neither too high nor too low. 3.86
You are satisfied with the design of Zara with relation to its price. 4.05
Compared to brands like Primark, Zara has higher quality of material. 4.55
Wearing Zara clothing, you feel very comfortable and fashionable. 3.68
You are willing to buy Zara because you feel it reflects your social 3.05
class.
43
to focus on this part. In the intrinsic aspect, there is another approach - the
expressive positioning. It is means that “By the purchase and open
consumption of [a brand], consumers can make it clear to which social group
they belong and those to which they do not want to belong” (Riezebos et al.,
2003: 56), and Mittal (1988) refers to it as ‘psychosocial meaning’ of a brand.
The answer to Question 13 reveals whether Zara can be emphasised in the
expressive approach positioning. There is a tendency that participants are not
sure the motivation of purchasing Zara is that they feel it reflects their social
class, such as middle class. Whereas 28% of participants agree this view,
percentages of the choice of disagree and neutral are the same: 36% (see
Figure 1). It is better for Zara not to put an expressive approach into its heart
positioning because of uncertainty from consumers’ feedback.
Figure 1: You are willing to buy Zara because you feel it reflects your
social class.
You choose the Zara only because you need clothes. 3.68
Wearing Zara, you feel yourself being beautiful, stylish or elegant. 3.77
44
According to the literature review, the core of the notion of brand values is that
a value must control everything that is associated with the brand. “The first
phrase in choosing brand values is the choice of the aspiration level of the
brand”, and there are three aspiration levels. Participants tend to choose Zara
only because they need clothes (see Table 3), which is needs-driven aspiration.
Since clothing protects people’s bodies, the value of need-driven is security.
With reference to Question 12, they are inclined to choose a neutral response.
More explicitly, 32% respondents agree (14% of them strongly) that Zara can
appeal to middle class professional people, whereas 36% disagree and 32%
are not so sure (see Figure 2). This point is related to relational demands of
consumers, which is called outer-directed aspiration level. The third level is
inner-directed aspiration, which refers to consumers’ demand for
self-actualisation. Respondents have a tendency to feel they become more
beautiful, stylish or elegant when they are wearing Zara. So the value of this
level emphasises personal factors, such as self-fulfillment or self-respect.
Compared with these three levels, Zara should take more notice of
need-driven and inner-directed aspiration than outer-directed aspiration, and
brand values should be concentrated on those two levels as well.
When you see or hear the brand name Zara, you immediately know it 4.00
is a fashionable brand.
When you see or hear the brand name Zara, you can distinguish it 4.00
When people mention other high street brands, such as Next, Gap, 3.77
You can associate the brand name, Zara, with the product itself. 4.5
The trend of the questionnaire results is that the image of Zara is modern and
fashionable, and positive (see Table 4). What is more, the Zara brand has a
good reputation amongst fashion brands. Due to participants’ views, the
creation of images in Zara is very successful. The better the brand images, the
more the management of that brand is effective. Similarly, positive and strong
brand image can enhance brand-added value.
46
neutral view; and no one disagreed). A highly perceived performance leads to
a high brand-added value. Another segment of brand-added value is
psychosocial meaning, which is mentioned in the positioning (Question 13). So
in this study, the psychosocial meaning has not had an important influence on
added value. On the other hand, Zara can not clearly show which social class
it stands for. Finally, brand name awareness is a major element that
distinguishes between the notions of brand image and brand-added value.
There are four levels of brand name awareness, from unawareness to
top-of-mind awareness. “A well-known brand name can have more value to a
consumer than an unknown brand name. In general, consumers also have a
preference for articles with a well-known brand name” (Riezebos et al., 2003:
72). The results illustrate how participants tend, on hearing or seeing the brand
name Zara, to immediately know it is a fashionable brand and can distinguish it
from other brands. As the mean of both two is 4.00 (equals to ‘Agree’ choice).
There is also a tendency, when people mention other high street brands, such
as Next, Gap, H&M, the brand name, Zara, quickly springs to their mind.
Participants also associate the brand name, Zara, with the product itself.
Therefore, the level of awareness of Zara’s brand name is high. This
awareness has a reinforcing influence on the perceived performance and on
the psychosocial meaning of a brand. “For two brands with the same positively
experienced associations, the best-known brand has a more than
proportionally high level of brand-added value than the lesser-known brand”
(Riezebos et al., 2003: 72).
47
5.5 Advertising
Table 5: the mean for the question
Question The Mean
Mean
Besides clothing, Zara brand has perfume, shoes, belts and cosmetics 3.82
in one store.
You are aware that Zara has introduced Zara Home, which sells home 3.14
furnishings.
You would be interested in Zara home because of your loyalty to the 2.91
Zara.
You have seen Zara store in more than two countries. 4.41
Zara has several basic product lines. Women’s and men’s clothing are the
most important product line in Zara, whereas there are perfume, shoes, belts
and cosmetics lines also. Respondents tend to agree this point as they find
these products in Zara stores (see Table 6). In 2003, Zara was extended to
create another product class, Zara Home, which sells home furnishings. The
48
reason why Zara chose an extension strategy is that the opportunities of
triumph of a new brand are not great, and the marketing costs of introducing a
new brand are extremely high. In such a case, Zara can obtain financial
benefits and a larger market share (e.g. different target groups). Whether this
strategy is successful in the view of consumers (Questions 28 and 29), most
respondents seemed unaware that the Zara brand had introduced Zara Home.
In more detail, 81% of them keep a neutral position; 14% were aware this
extension; 5% were strongly aware; and 5% were definitely not aware of this
strategy (see Figure 3). Interestingly, my question asked whether they would
be interested in Zara Home because of their loyalty to Zara. The findings show
that respondents were generally unsure. In fact, 59% chose the neutral choice;
14% agreed with this view; and 27% disagreed. Hence, whether the extension
strategy of Zara is successful or not, this outcome is not decisive. However, all
respondents deemed that Zara is an international branding, as they tend to
have seen a Zara store in more than two countries.
Figure 3: You are aware that Zara has introduced Zara Home, which
sells home furnishings
Strongly disagree
0%
Disagree Strongly agree
Agree
5% 5% Strongly agree
9%
Agree
Neutral
Disagree
Strongly disagree
Neutral
81%
49
manage, whereas in the intrinsic dimension, Zara chooses an impressive
functional approach. The feedback from consumers indicates that the
instrumental functional and expressive approach are not suitable for Zara. In
comparison with three aspiration levels, Zara should select values related to
the need-driven and inner-directed levels. Almost all consumers consider that
Zara has a positive and strong image, and enjoys a high reputation amongst
the fashion brands. In addition, Zara’s added value is upward, because its
quality (perceived performance) and brand name awareness are high.
Because of a high level in brand name awareness, it is shown that Zara utilises
brand name as a successful instrument. The design of Zara is really latest and
positioned in medium price; this feature is a main differentiation from other
brands. Its fashionable design can also improve the good images and add
value for consumers. Another instrument, advertising, does not affect the
management of Zara. In the findings, the data cannot demonstrate whether
the extension strategy of Zara is effective or not. Consumers are not definitely
aware of this extension. Nevertheless, all believe that Zara is an international
branding.
50
Chapter Ⅵ Further discussion
The findings of the case study and questionnaire survey complement each
other. One gains information from the corporation, whilst the other gains
information from consumers. Then results can be divided into several parts:
the role of three instruments (brand name, design and advertising); positioning
and brand values choice; brand images and added value; brand portfolio,
extension and endorsement strategy.
51
industry worldwide, and consumers all agree with this feature, so this
instrument is used effectively by Zara.
It is known that excellent design offers a good image to consumers, and adds
value to the brand for them. On the other hand, Zara’s design improves its
image and provides a high brand-added value. Consumers believe they can
distinguish the brand name “Zara” from other fashion brands easily. 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”. The fact
that Zara only spends 0.3% of sales on advertising can be classed as `zero
advertising’. Consumers reported having rarely seen advertising of the Zara
brand.
Despite corporations choosing one instrument to use, their brands can still be
strong as long as that instrument is employed effectively. In general, every
instrument can help the choice of positioning and brand values, enhance the
brand image and added value, because these elements lie at the heart of a
brand strategy.
After choosing the positioning, managers should more explicitly determine the
values that a brand should represent. The first and most significant step to
choose brand values is choosing the aspiration level, which has three levels:
need-driven, outer-directed and inner-directed (Maslow, 1954). Then
managers choose a maximum of three values within the aspiration levels
selected (Kahle, et al., 1986), and translate each value into concrete attributes.
From the replies of consumers, they are willing to purchase Zara because of
material need, and the need for self-actualisation. The relative values with
these two needs are security and self-fulfillment. Zara clothing protects
consumers’ bodies and, by wearing it, they feel they become more beautiful
and stylish. So Zara should convert these values into actual attributes.
So far, Zara’s positioning and brand value choice are successful according to
consumers’ feedback and Zara’s corporate strategy. The more appropriate the
positioning and brand value choice, the more successful a brand becomes. A
brand can be meaningful to consumers if the choice of positioning and brand
value are made. Furthermore, an accurate choice of these provides the
cornerstone to a well-managed brand.
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6.3 Brand images and added value
Positioning and brand values that are chosen can be conveyed to consumers
and form an image. Consumers’ attitudes determine whether the brand image
is positive, and whether the brand-added value is high. So managers should
take consumers’ attitudes into account when they express their brands’ images
and added value. Zara is good at collecting consumers’ feedback, because the
in-store feedback is sent back to designers every day.
A brand image comprises content and reputation. The content “… refers to the
associations a brand name may invoke” (Riezebos et al., 2003: 64). Some
brands call up many associations. Due to the consumers’ attitudes, they
receives a positive image from Zara (the content is high quality and modern;
the reputation is high). Although positive or negative brand images are decided
by consumers, design and product strategy have an effect on the creation of
brand images. The chic design of Zara evokes several associations such as
“fashionable”, “beautiful” and “colourful”, and these associations give
consumers a good image, while this design with medium price enhances
Zara’s image to be stronger and more positive. In addition, the unique product
strategy of Zara promotes the brand images. Consumers deem the speed of
launching a new collection of products of Zara is fast. Due to the exact data
from the corporation, it produces about 11,000 different products annually, and
spends four to five weeks on the process of designing a new product and
getting finished products into its stores. If the product life cycle is shortening,
consumers’ preferences will be fulfilled with a greater success (Roux, 2002). In
2007, Zara launched a Mum line (Inditex, 2007). This strategy improved
Zara’s image in the mind of consumers, strengthening the brand still further.. It
takes account of consumers’ demand, which extends to accomplish mothers’
needs and feedback, and obtains a high reputation in the fashion industry.
However, “A brand image gives no insight into the relative value that
consumers ascribe to attributes or associations. The concept of brand-added
54
value does take into account the differences in importance between
associations.” (Riezebos et al., 2003: 69)
Zara belongs to a brand portfolio, Inditex Group. There are many advantages
to building up a brand portfolio. For instance, this strategy is relative to a
greater degree of risk spread, and offers a more steady foundation for
extension to the brand. In a brand portfolio, four types of brand are
differentiated. A bastion brand has the greatest strategic and financial merits
55
for the corporation, as it is the most valuable brand in a brand portfolio. A
flanker brand is used to prevent potential competitors. Fighter brands defend
the bastion brand from competitive discount brands. And finally the prestige
brand is one with the greatest financial value (Riezebos, 1995b). According to
Table 1, Zara is a bastion brand, which is the most profitable brand and has a
high strategic advantage. Other brands in the Inditex Group can assist Zara to
stem possible rivals from entry into its market, and to spread risks in the
competition. Moreover, three strategies can be used to set up a brand portfolio:
brand development, brand acquisition and brand alliance (Riezebos et al.,
2003). The Inditex Group adopts a brand development strategy. It is obviously
shown that, as a bastion brand in a brand portfolio, Zara is being more
successful. In other words, if a brand portfolio is well controlled, it can develop
more successfully than other corporations with a single strategy.
Zara is an international branding because 68 countries all over the world have
its stores. It also demonstrates that Zara is an effective brand. This type of
branding can advance the financial condition of a corporation, and promote the
strategic position of this corporation in other countries (Marston, 1992). A
successful brand has a manifest value and a latent value. In the international
brand strategy, a powerful brand has a distinctly manifest value, but the latent
value of a brand can be exploited by brand extension and endorsement
strategy.
57
Chapter Ⅶ Conclusion
In this study, the research question is how a brand has managed to become a
powerful brand, and Zara is taken as a good case study to indicate it. Both a
case study and questionnaire survey have been used to collect data. The
former method gathers the information from Zara, whilst the latter one
accumulates scale points to measure consumers’ attitudes.
According to the findings of Zara, the choice of positioning and brand values,
brand images and added value lie at the heart of a brand strategy, even in the
brand management. Brand name, design and advertising are crucial
instruments to help a brand to develop more successfully, but it is not
necessary to employ all of them. Even if corporations only select one
instrument, their brands can be powerful as long as that one is used effectively.
Brand portfolio, extension and endorsement are good strategies to exploit
more brands. Consequently, a brand with precise positioning and brand values
choice, positive brand image and high brand-added value, should become a
powerful brand. Brand name, design and advertising have a significant
influence on this process. If corporations are interested in exploiting several
brands into more than one market, the building of a brand portfolio, brand
extension and endorsement strategy can be used. A brand must be forceful if
these strategies are to be controlled well.
58
adversely impacted on the reliability of the results. Next, the questions were
designed by me, so the design was not perfect, and participants’
misunderstanding the questions might have led to them choosing a different
answer than they would have if they fully understood the question. Since the
researcher did not conduct this questionnaire survey face-to-face, no
opportunity was given for respondents to clear up any such misunderstandings.
Thirdly, the information for the case study was not enough, as I had just found
the Inditex Group annual reports and some articles in the website. When I
began to analyse the case of Zara, my gathering of data may have been
biased.. Finally, in the literature review, the theories perhaps are insufficient.
59
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68
Appendix 1: Questionnaire
Thank you for taking part in this study. Before we start the questionnaire,
please answer the following questions.
Have you ever bought Zara brand? Yes / No
Are you a university student? Yes / No
Are you below 35 years of age? Yes / No
Please choose answer from the following five answers ranging from strongly
agree to strongly disagree. (Single-choice question)
1. The design of Zara is one of the most fashionable designs in the fashion
industry.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
3. The design of Zara is the most significant reason that you are loyal to it.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
5. You can distinguish the logo of “Zara” from other logos, such as
“Channel” and “Primark”.
69
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
8. You are satisfied with the design of Zara with relation to its price.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
10. Wearing Zara clothing, you feel very comfortable and fashionable.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
11. You choose the Zara only because you need clothes.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
14. Wearing Zara, you feel yourself being beautiful, stylish or elegant.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
22. When you see or hear the brand name Zara, you immediately know it is a
fashionable brand
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
23. When you see or hear the brand name Zara, you can distinguish it from
other brands.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
24. When people mention other high street brands, such as Next, Gap,
H&M, the brand name, Zara, appears quickly in your mind.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
25. You can associate the brand name, Zara, with the product itself.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
72
27. Besides clothing, Zara brand has perfume, shoes, belts and cosmetics in
one store.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
28. You are aware that Zara has introduced Zara Home, which sells home
furnishings.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
29. You would be interested in Zara home because of your loyalty to the
Zara.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
30. You have seen Zara store in more than two countries.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
73
Appendix 2: One Sample of Questionnaire
Thank you for taking part in this study. Before we start the questionnaire,
please answer the following questions.
Have you ever bought Zara brand? Yes / No
Are you a university student? Yes / No
Are you below 35 years of age? Yes / No
Please choose answer from the following five answers ranging from strongly
agree to strongly disagree. (Single-choice question)
1. The design of Zara is one of the most fashionable designs in the fashion
industry.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
3. The design of Zara is the most significant reason that you are loyal to it.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
5. You can distinguish the logo of “Zara” from other logos, such as “Channel”
and “Primark”.
74
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
8. You are satisfied with the design of Zara with relation to its price.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
10. Wearing Zara clothing, you feel very comfortable and fashionable.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
11. You choose the Zara only because you need clothes.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
14. Wearing Zara, you feel yourself being beautiful, stylish or elegant.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
22. When you see or hear the brand name Zara, you immediately know it is a
fashionable brand
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
23. When you see or hear the brand name Zara, you can distinguish it from
other brands.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
24. When people mention other high street brands, such as Next, Gap, H&M,
the brand name, Zara, appears quickly in your mind.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
25. You can associate the brand name, Zara, with the product itself.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
77
27. Besides clothing, Zara brand has perfume, shoes, belts and cosmetics
in one store.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
28. You are aware that Zara has introduced Zara Home, which sells home
furnishings.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
29. You would be interested in Zara home because of your loyalty to the
Zara.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
30. You have seen Zara store in more than two countries.
5. Strongly agree 4. Agree 3. Neutral 2. Disagree
0. Strongly disagree
78