BRAND MANAGEMENT AND

STRATEGY (MK983 SPRING SCHOOL)

The aim of the essay was to judge the brand equity of Zara, specifically its identity and
personality. Essay also discusses some promotional tool used by Zara for increasing the brand
value. Finally the essay is concluded by giving six key recommendations to the company
which will aid in enhancing the brand value of Zara.The greater part of the general population
concur about the significance of brand identity or image. As per Keller, brand image is "a
perception about a brand as reflected by the brand associations held in consumer memory"
(1993), yet Aaker says that brand identity makes esteem in an assortment of ways, helping
customers to process data, separating the brand, creating motivations to purchase, giving
positive sentiments, and giving a premise to augmentations (1991).Zara is a Spanish flagship
garments and frill brand, it is the pioneer brand of the Inditex bundle. Inditex is the world's
greatest high fashion bundle, which has other style brands, for instance, Oysho, Bershka,
Stradivarius, Massimo Dutti, Zara Home, Pull and Bear, Lefties and Uterqüe. It was set up in
1975 by Amancio Ortega. Few attire brands stay aware of the most recent style, are of high
calibre, yet reasonable. It is most likely the collection of each of these qualities that made
Zara. The first store of Zara was opened in 1975 in Coruna which is situated in the northwest
of Spain. Currently Zara is transversely located around 88 nations rounding to more than
2100 stores around the world in most porch areas of the city (Zara, 2016). This strategy of
Zara is very significant in enhancing its identity and personality as the company wants to be
really near to the exclusive brands and in the meanwhile be in mid-range for customers to
differentiate it easily. Zara has been successful in grouping itself as a quick form mark
instead of luxury, and rapidly produces high end design styles from the latest fashion to reach
general society. Not like other fashion companies, who outsource their stuffs, Zara’s
personality has been viably developed as a vertical integration model there by creating a plan,
focusing on just in time production and promoting its products (The Economist, 2001). Due
to vertical integration, Zara is able to meet all the expectation of their customers in a very
brief time range. As fashion industry continuously hints about the change taking place every
day, this style of business is proving to be significant constituent in Zara's exorbitance. Zara
is slanting upwards—it shut Q3 of 2015 bragging 18 percent year-over-year sales growth
(Interbrand, 2015). At the hypothetical level, expressions like brand identity and personality
are being utilized conversely in this essay, having a same meaning (Upshaw, 1995; Graeff,
1997). On the premise of the social worldview, identity of the brand is influenced by the love

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people have in the brand and also the personality of the brand as an emotional outcome
(Aaker, 1997; Fournier, 1998).

Zara depends on the quick turnover of little supplies of everything. The deficiency of every
article of clothing is sorted out as an arrangement of attractive quality elevating normal client
come back to the shop. It regards the shop as a theatre stage, does no publicizing, and has a
striking framework for inspiring subjective data on the most recent client desires (Kapferer,
2008). Zara has become the world's greatest fashion brand this is due to its extensively
known method advancement. Snappy style, creative energy, versatility, quality diagram and
quick change are the key elements in its approach to manage internationally at great speed.
The brand positions its identity as offering Gucci-style design at a small amount of the cost.
(Dunn, 2006). Despite of its low cost, brand has never ever compromised in terms of quality
of its products. Its customers, who offer shape to the musings and persistently changing
expectations creating in the style business, direct Zara's key brisk fashion.

A brand must offer a compelling and credible reason for choosing it over the other options
(Keller, 2013). Here point-of-difference (POD) plays a vital role in identifying a brand in a
proper manner (see appendix 1). Zara has made its brand identity and personality by
segmenting its product offerings into three classes- women, men and kids, with sub
categorization of the women's product line which is believed to be one of the most
significant, having a dominant part in market sector (78%). Zara's buyers are young, regard
discerning and extraordinarily fragile to the latest outline designs in the market. Zara do not
portray itself by segmenting the market by ages, thereby acquiring broader market sector. The
organization has created their brand equity by bringing new products to its 2,000 stores twice
a month by producing around 11,000 stuffs each season (Peng, 2009), this makes interest for
rare things in the store and wipes out moderate moving stock, thereby decreasing markdowns.
The brand equity of Zara has gone some steps up if compared to last six years which
proceeded with it quick developments (Joy, 2013). It address that it has restricted marking
down, no leeway racks and by doing this it makes a feeling of shortage in the items it
displays in showrooms. Around 80% of stock is changed in Zara’s store every month. It
seems Zara to be successful in anticipating this knowledge to general society area and clients
are entirely all around educated about Zara's "quick form" plan of action and likewise
welcomes it. Zara has effectively conveyed their corporate image, including their central
goal, rationalities, organization foundation and nation of starting point to its clients.
According to van Recom, 1997, an association's execution and brand image might be

2
influenced in case of any crevice within the qualities the work force is having and the
environment in which they are working. Stores and workers of Zara are seen as mirroring the
association's craved personality to clients. Items and administrations are not by any means the
only variables that fashion brands use to separate themselves (Birtwistle et al., 1999). Zara's
store plan, changing rooms and window showcases were seen as being reliable with its
wanted character. Company is seen to be compelling in accomplishing its craved personality
by building consistent corporate procedure with its items and administration communications,
in this manner creating differentiation. Zara consistently adjusts to market requests, expecting
to convey an exceptional support of the client. Mystery shoppers are used to evaluate
different variables like layout of store, temperature, music and most importantly quality of
customer service. (Monllor, 2001). For Zara's situation, consumers concurred that the
company’s expected personality and its vision (see appendix 2) connects to its corporate
methodologies and brand equity. In reality, Zara is seen as having an unmistakable and
predictable corporate character, giving differentiation as far as its quality item offerings
(Ranis, 2008). Zara's principle rivals are H&M, Mango and AX. They are dress organizations
which offer an incredible same items as Zara and around the same cost. Also, they are
focusing on the same shoppers. The most critical contender is H&M on the grounds that they
both attempt to create high fashion and low costs items, while Mango and AX items are
somewhat less form and more costly (see appendix 3 for Zara’s perceptual map).Zara creates
around 20,000 stuffs annually, this is about three times more what Gap does. As an outcome,
"At Gap, everything is the same," according to a Zara fan, "buying from Zara, you’ll never
end up looking like someone else." (Peng, 2009).

Zara profits by its solid brand personality with high quality and the most recent design, which
is reinforce by its principle touch focuses, improvement in its stores etc. Subsequently, it is
simple for ZARA to pull in and assemble consumers to shape its own group on an emotional
and mental level (Appendix 4 shows Zara’s brand identity prism).

Keller’s brand equity model (see appendix 5) is used to measure the brand value of Zara. It
has been altered accordingly to fit within the business approach of Zara. Talking about the
salience of the brand, Zara's image and attracting window showcases are the key components
in creating brand identity mindfulness in consumer’s brains. Both review and assertion
estimates are uplifted which shows that Zara has strong commanding nature in client's heart
and mind. To the extent of significance of awareness, Zara has performed good as it has
become the noteworthy purpose of mind review of the clients with respect to popular high

3
design retail outlet. Regarding broadness of awareness, Zara has high class participation in
refined and in vogue wear.

Moreover, commenting on the brand performance, brand is esteemed on its quality it

produces and sells, starting from purposeful decision to avoid extensive scale producing. Zara
offers customers the latest and most chic things. Things being what they are, Zara produces
these business division driven styles that gigantically address its target market segment. Its
fast fashion idea pull buyers turning back for new smart and in vogue plans so as to remain
design forward. Regardless, for the most part invited trade approach where customers have
full assurance in getting back their money for purchased things that they consider unsuitable,
in comprehension to Zara's Refund Policy. This has created a positive equity for the brand.

Lastly giving light to the brand personality and value; Values of customers are associated
with Zara incorporate personality, its leading position, and its latest fashionable products.
Zara transmits an aesthetic and smart identity that advises to its unequivocal and certain
expected vested segments. Buyers from China run to Zara, in spite of the fact that they favour
lighter hues than their European partners (Joy, 2013). This is because of the identity,
personality and the equity of the brand which Zara has created.

Now, here I infer upon some promotional strategies adopted by Zara for building the brand
equity. Truly speaking, Zara has developed with almost no promoting, it is not under
company’s plan of action. As published in the New York Times the last fall, "It barely even
has an advertising office, and it doesn't participate in garish battles, as its rivals do,
collaborating with style originators like Stella McCartney, Karl Lagerfeld, Martin Margiela
and Marni,". "Zara's designers are totally mysterious; some would say this is on account of
they are copiers instead of originators. The organization puts intensely in the excellence,
recorded claim and area of its shops." Moreover, Mr. Ortega Gaona, the founder denies for
any interviews, and same is the case with his successor Pablo Isla (Parekh, 2013). Zara make
use of 0.3% of its revenues on publicizing the brand, which is immaterial when comparing
alongside its rivals (3-4%). Both GAP, H&M and AX depends on a traditional "push"
approach, creating significant assets for promoting. ZARA uses "pull" approach, pulling in
consumers with little accumulations and offering new stuffs every second week as expected
by its consumers. Zara doesn’t believe in mass media advertising, however uses its premium
store locations in marketing the brand and thereby captivating customers. Furthermore,
company makes sure that their storefronts and window presentations are charming and

4
always brand-new to clients by taking off progressive changes timely. The showroom is
always in flawless manner and splendid, having black and white themes with broad ways
amidst racks. This gives customers ease in shopping thereby increasing the brand equity.
Exactly when customers walk around a store, Zara delineates to their customers that the latest
style is always available. Zara's advancement technique is the same everywhere throughout
the world, likewise having standardization in promoting the brand’s equity. On the off chance
that organization’s another store is being opened, ad crusades are done just for it. Zara's
stores are its primary promoting instrument (Sulisetiasih et al., 2013). It has been extremely
miserly with regards to promoting effort.

Zara’s another primary source of promotion is word of mouth, it depends significantly on it.
Moreover, unpaid promotions are also one of the marketing strategies of Zara; for instance,
pictures of celebrities dressing their stuffs (for instance, Kate Middleton, utilized various Zara
bits of dress which in turn blostered the brand redesign its identity). Furthermore, buyer's
studies28 (Cheng et al., 2008) had exhibited that Zara was firm in conferring its picture as per
its proposed corporate character.

Zara’s entry in online business was regarded as one of its promotional strategies, which
increased the brand equity to some extent. Firstly, Zara’s management team were not very
comfortable in taking the brand into e-business but due to the brand’s high value in society,
they executed this plan. The company assumed that having an online presence will act as
medium in connecting customers to the brand effectively and efficiently and taking after the
same specificity as stores. Zara is additionally dynamic in informal communities such as
social media. There are more than 10 million Facebook fans. Zara is also present on twitter,
for example @ZARA_US, #DearUK and #ZARA_Shop_Online hashtags are used to keep its
supporters up to date about the latest trends in the market. However, the company is not very
active on this too and needs more attention towards it. (PR Newswire, 2011). Company needs
to rebuild its social media strategies. A wide range of advertising are thought to be critical to
the development of an association's corporate personality (Bickerton, 2000). It is trusted that
a viable communication procedure would help an organization to assemble a more grounded
brand equity, accomplish upper hand and pick up an ideal notoriety. The case is true with
Zara, as its craved personality is emulated in their marketing techniques, which are
compelling and organized. (Ranis, 2008).

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Finally, the essay wraps up by providing some suggestion to the company which will aid in
enhancing Zara’s brand equity. The table (see appendix 6) pin points the six key
recommendations and following is the explanation:

1. One noteworthy suggestion for Zara can be the execution of "Web 2.0" into their
marketing system for increasing brand equity. Berthon et al (2012) comment that in
this 21st century, market has "innovative buyers" who add to web correspondences
for items much more than what fashion brands themselves do, by engaging in
discussions, and can be utilized to make esteem. For instance, Zara customers could
subscribe to YouTube videos in a manner demonstrating modeling challenge utilizing
Zara items, add to a forum on their most loved Zara result of the season, or participate
in an intuitive site or blog in another way (Appendix 7 highlights specific plan for
social media platforms). However, while enforcing any such social media strategies,
culture of that particular country should be considered.
2. Referral programmes (see appendix 8) should be used by the company to enhance
their brand equity as well as awareness. Users will readily spread word of the brand
when they know that they will get an additional advantage. For example, the online
shopping application of Zara (available on Google & Apple play store) should give
20% discount to existing users for every friend they refer (up to 50%) and the new
user who uses the referral code of the referring friend to download the application of
Zara will likewise get a rebate up to half, which can be utilized while shopping
through that application.
3. Loyalty has taken a significant position in recent years. It is seen as a most
outstanding source of brand equity (Dopico & Porral, 2012). Zara can give Zara
club/loyalty card that offers the customary benefits including: rebates, adding points
for every purchase made, member-only offers and different prizes taking into account
for frequent purchase. Besides, free shipping for online buys. Moreover, Zara Club
card will give their members free entry to an intelligent site composed particularly for
them, where their young gathering of people accesses restrictive videos, photograph
exhibitions, advanced wallpaper, music playlists, and the benefit of V.I.P. access to
extraordinary occasions composed by the company. Besides, the site will have a ton
of fun "dressing for the climate" area, where individuals can look at in vogue styles
and accommodating on closet that go in like manner to the five-day weather forecast

6
 for the part's city. With this methodology, Zara will accomplish a keen association
with customers in making purchase their items in an enthusiastic & emotional way. It
is a reality to say that faithful clients will spend more cash on the off chance that they
feel critical, and can see that the brand is concerned and they feel being dealt with.
4. Research demonstrates that consumers these days are focusing on sustainable
environmental values and likewise retaliate to green and sustainable brands. As
published in 'rank a brand', Zara has accomplished the C-mark, taking into account the
sustainability criteria, which is reasonable but not up to the mark, which means more
can be done. Company has started to take some initiative for this, however, it need to
be more serious on this matter. I suggest that, Zara should begin to consider
sustainability, by actualizing measures to lessen carbon outflows, utilizing ideal raw
materials, for example organic cotton for at least some of its stuffs. Company should
likewise mould its promotional strategies which are more focused towards green
branding. Utilizing the schema theory as a theoretical structure, I propose components
that encourage customers preparing of green-branding data to adjust themselves for
green brand patterns. Effective green-branding approach will be seen as a decent
comprehension of how shoppers ponder natural supportability and the brand. This
approach will help the company in enhancing its brand equity.
5. Despite the fact that Zara remained greatly fruitful in motivating contenders around
the globe, perhaps clients may become worn out on just looking at what the brand
brought to the table in its showrooms in future. Bringing personal shopping service to
its stores will highlight the brand equity more favourably. However, it is worth
mentioning that a review by a customer shows that this service was started in Hong
Kong store but its accuracy is still in question as there is no verification with respect
to this. This service should be made available in all stores or at least in premium
stores of each city free of charge. Customers can benefit by just booking for this
service in advance. This will aid in enhancing brand esteem.
6. Finally I would recommend the company to begin putting resources in advertising the
brand, as it's high time now, company ought to break its pledge of 'no publicizing'. It
can deliver ads in a way making passionate association with the viewer. Hard-core
marketing is needed to position the brand on number one. Celebrity endorsements is
one the richest source of increasing brand value. It might be somewhat costly however
will give exceptional yields. Company needs to do it now as its rivals like H&M is

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venturing out in front of him (according to interbrand, 2015) which is a result of their
solid unwavering quality in marketing.

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BIBLIOGRAPHY

1. Aaker, D. A. (1991). Managing Brand Equity. New York: The Free Press.

2. Aaker, J.L. (1997) ‘Dimensions of brand personality’. Journal of Marketing. 34 (3),

pp. 47-56.

3. Berthon, P. R., Pitt, L. F., Plangger, K., & Shapiro, D. (2012) ‘Marketing Meets Web
2.0, Social media, and creative consumers: implications for international marketing
strategy’. Business Horizons, 55 (3), pp. 261-271.

4. Bickerton, D. (2000) ‘Corporate reputation versus corporate branding: the realist

debate’. Corporate Communications: An International Journal, 5 (1), pp. 42-8.

5. Birtwistle, G., Clarke, I. and Freathy, P. (1999) ‘Store image in the UK fashion sector:
consumer versus retailer perceptions’. The International Review of Retail,
Distribution and Consumer Research, 9 (1), pp. 1-16.

6. Cheng, R., Hines, T., and Grime, I. (2008) ‘Desired and Perceived Identities of
Fashion Retailers’. European Journal of Marketing, 42 (5/6), pp. 682–701.

7. Dopico, D. C., and Porral, C. C. (2012) ‘Sources of equity in fashion markets’.

Journal of Product & Brand Management, Vol. 21 (6), pp. 391-403.

8. Dunn, B. (2006) ‘INSIDE THE ZARA BUSINESS MODEL’. DNR, 36 (12), pp. 11.

9. Fournier, S. (1998) ‘Consumers and their brands: developing relationship theory in

consumer research’. Journal of Consumer Research, 24 (4), pp. 343-373.

10. Graeff, T.R. (1997) ‘Consumption situations and the effects of brand image on
consumers’ brand evaluations’. Psychology and Marketing, 14 (1), pp. 49-70.

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11. Interbrand (2015) Zara Available at: http://interbrand.com/best-brands/best-global-
brands/2015/ranking/zara/ (Accessed: 14 April 2016).

12. Joy, A. (2013) ‘Fast Fashion, Luxury Brands, and Sustainability’. The World
Financial Review, pp. 2. Available at: http://www.worldfinancialreview.com/?p=738
(Accessed: 17 April 2016).

13. Kapferer, N. J. (2008) The New Strategic Brand Management. 4th edn. London:
Kogan Page Limited.

14. Keller, K. L. (1993). ‘Conceptualizing, Measuring, and Managing Customer-Based

Brand Equity’. Journal of Marketing Research, 29 (1), pp. 1-22.

15. Keller, K. L. (2013) Strategic Brand Management: Building, Measuring, and

Managing Brand Equity, 4th edn. United States of America: Pearson Education
Limited, pp. 87.

16. Monllor, C. (2001) Zarapolis. La historia secreta de un imperio de la moda,

Barcelona: Ediciones del Bronce.

17. Parekh, R. (2013) ‘How Zara Ballooned Into a Multi-Billion Dollar Brand Without
Advertising’. Advertising Age, 19 August. Available at: http://adage.com/article/cmo-
strategy/zara-grew-a-multi-billion-dollar-brand-sans-ads/243730/ (Accessed: 19 April
2016).

18. Peng, W.M. (2009) ‘Zara: Rewriting Rules on Marketing and Supply Chain
Management’. Business Insights: Global, pp. 411-412.

19. PR Newswire (2011) ‘Zara Launches Online Shopping in the US; The fashion
concept's entire product range now available at www.zara.com.’ 6 September.
Available at:
https://www.nexis.com/results/enhdocview.do?docLinkInd=true&ersKey=23_T23890
898037&format=GNBFI&startDocNo=1&resultsUrlKey=0_T23890898066&backKe
y=20_T23890898067&csi=8054&docNo=18 (Accessed: 17 April 2016).

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20. Ranis Cheng, Tony Hines, Ian Grime, (2008) ‘Desired and perceived identities of
fashion retailers’. European Journal of Marketing, 42 (5/6), pp.682 – 701.

21. Referral Program Examples – An Epic List of 47 Referral Programs (2016) Available
at: http://www.referralcandy.com/blog/47-referral-programs/ (Accessed: 22 April
2016).

22. Sulisetiasih A., Wibawa Junardy K., and Adam P.M.A. (2013). The Strategic
Management Analysis of ZARA. Available at:
http://www.academia.edu/5492552/The_Strategic_Management_Analysis_of_ZARA
_Relative_to_the_Case_in_Developing_Countries_ (Accessed: 19 April 2016).

23. The Economist. (2001, May 17). Spain's Zara: Floating on air. Available at: The
Economist: http://www.economist.com/node/627426 (Accessed: 14 April 2016).

24. Upshaw, L. (1995) Building Brand Identity: A Strategy for Success in a Hostile
Market Place, John Wiley and Sons, New York, NY.

25. van Rekom, J. (1997) ‘Deriving an operational measure of corporate identity’.

European Journal of Marketing, 31 (5/6), pp. 410-22.

26. Zara (2016) Available at: http://www.inditex.com/en/brands/zara (Accessed: 14 April

2016).

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 Appendix
1.) Zara’s Point of Difference:
High Velocity fashion
Creation happens in little
clusters, with vertical
reconciliation into the
production of the most time-
delicate things. Items are
transported straightforwardly
from Zara's focal circulation
focus to very much found
and appealing stores twice
per week accordingly
disposing of the requirement
for stockrooms and keeping
inventories low.
Significantly all the more
vitally, Zara can begin a
configuration and have
completed merchandise in
stores inside two to four
weeks on account of totally
new plans, and two weeks
for adjustments (or
restocking) of existing items.
Alternately, the standard
plan of action may
incorporate cycles of up to 6
months for design and 3
months for collecting.
Understanding and
delivering customers’
needs
Most plan associations are
happy for their snappy
forward style where they try
to anticipate the
accompanying season's
examples by method for
style shows up/design
appears or tantamount
channels of effect. Zara, on
the other hand, fixates its
thought on perception the
style things favoured by its
customers and passes on
blueprints as demonstrated
by buyers' needs. Store
chiefs are set up to secure
such critical information
through easy-going
examinations with shoppers.
These huge data are then
gone ahead back to the
innovative gatherings.
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Exclusivity
Zara makes the feeling of
selectiveness in its array
through insignificant
generation for every style.
This makes shortage and
thus attractive quality
particularly in the style
business. Besides, this brings
down the danger of un-
cleared stocks that may must
be sold with a rebate. As a
consequence of the system
utilized by Zara, there is very
little to be discarded when
the season closes, obvious in
the slight rebate of 18%
amid deals period rather than
the business normal of 36%.
This elevates the estimation
of Zara's merchandise in the
customer's eyes, making
immaterial worth for Zara's
things. Zara has likewise
adequately passed on to its
clients the shortage in its
stocks. Thus bringing about
higher customers' attractive
quality, so if a client likes
something, he/she needs to
purchase the thing quick as it
may not be accessible the
next week. Zara has been
fruitful in making an
atmosphere of shortage and
opportunity.
2.) Zara’s vision statement:

“ZARA is committed to satisfying the desires of our customers. As a result we pledge to

continuously innovate our business to improve your experience. We promise to provide new
designs made from quality materials that are affordable”.

3.) Perceptual map (Zara):

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4.) Zara’s Brand idenity prism:

5.) Keller’s Brand equity model:

Point-of- • User profiles

• Purchase & ussage situations
Difference Personality • Vaules, history, heritage &
experience

• Features
• Produvt relaibilty
Performance • Durability & efficiency
• Style, design & price

• Category
Salience identification
• Needs satisfied

Source: Keller (2013). [Altered for Zara]

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6.) Key recommendations for Zara

Six Key Recommendation

R 1. Rebuilding social media strategy (Execution of ‘Web 2.0’, including layout for
different social media platforms).

R 2. Implementing referral programme strategy for Zara’s mobile application.

R 3. Introducing Zara club/loyalty card.

R 4. Focusing on green branding.

R 5. Introducing personal shopping service to its stores.

R 6. Should resort to hard core marketing, including commercials, celebrity

endorsements, etc.

7.) Plan for Social media platforms:

Following this suggestion will ensure that Zara will gain an increased amount of brand equity
followed by brand loyalty from their customers. They are simple, cost effective suggestions
that will enable the brand to build closer relationship with their customers, whilst maintaining
the ethos that they do not want to take part in multi million pound advertising to promote the
brand in an overzealous way.
Note: This is just one suggestion for the company. I here infer by no means, to ignore hard
core marketing for promotion, which the brand currently does. However, company can use
this social media strategy along with the million pound advertising for extraordinary results.
Following table shows the specific plan:

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 Plan for Social media platforms
Facebook: 1. Regular daily updates with-
 Images of new garments
 Competitors
 Questions
2. Teach fans the history of the brand.
3. Links to other social media platforms.
Twitter: 1. Separate Twitter accounts for each line-
 Zara Woman
 TRF
 Zara Man
 Zara Kids
2. Account dedicated to customer service ‘@ZaraHelp’.
3. All accounts updated daily with-
 Links to promotional campaigns on YouTube
 Competitors
 Focus group style questions
 Images linked to Zara Instagram account
YouTube: 1. Behind the scenes footage.
2. Clear and informative video titles.
3. Extra insights into life of Zara.
4. Updated once a month (minimum).

Instagram: Include images that give a snapshot into daily life at Zara e.g.
 What the employees are wearing to work
 What is inspiring the design team
 What they are eating for lunch
This will create an emotional connect with the customers.

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8.) Example of Referral programme for mobile application:

Source: Referral Candy (2016)

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