School project

ZARA

BRANDING ASSIGNMENT

EDITED BY DANIEL GRABOW JENSEN

Brand name: ZARA Contains 2064 words Branding and Marketing Management Delievered to Katrin Meinert Ibsen 279403@via.dk 1st of november

BRANDING

ZARA

ASSIGMENT

1.1 MIND MAP

Sub-conclusion on the mindmap:

I would like to add different things to the mindmap, which From this mindmap you can see that ZARA are a well-eswould be: tablished company. They’re following the trends which is in the society. Also, they have become a lot more environ• The comfort of e-commerce. The opportunity to order mental oriented. They’ve created a community for their online which is aimed to be associates with: how easy ZARA ambassadors on SoMe. Also they’re very global oriit is and how comfortable it is to order from and to your ented, which has influenced their brand image and brand home. identity in a positive way.

• Strong brand equity – takes on big rolls in the society – especially environmental oriented – influencing the 1.2 SWOT AND TOWS ANALYSIS brand image in a positive way.

Sub-conclusion on the SWOT-analysis: • Following the trends – recycling etc.

• Very good brand image – Over 2200 stores worldwide, One of the things I would recommend ZARA would, be that they should operate more on the Asian market. The the possibility of ordering online and buy physical in population in Asia in general is huge. Also they do love store. highstreet brands. It could influence their brand image on • Keeps pushing forward with making their collections. another continent in a positive way. Therefore there is a • Affordable clothing.

• The ‘‘ ZARA ‘‘ logo is a perfect example of a good brand huge potential on this market. identity - you recognize it everywhere.

They’re focusing on their ECO-stores at the moment, where they wan’t to use less electricity and they should be careful about it, because it’s a store where they have their big screens, lightnings and so on. If they minimalize this, it could destroy the experience economic.

BRANDING

ASSIGMENT

Their biggest threat right now would be their lack of branding and advertisement. Even though they have a good brand image and good brand identity, they should interact way more on the social medias and use the platforms way more, than they’re doing at the moment. They have their basic accounts on Instagram, Facebook and so on. But maybe they should do the advertisement or maybe do something in a completely other way, just to stand out and differentiate themselves even more.

One of their main strenghts is that they’re a fast fashion brand, so they’re also on trend. They don’t set the trends as a trendsetter, but when they discover a trend they work after the trends. Therefore, I would say that ZARA is a trendfollower. As a consumer, you can visit the store and discover something new every week.

ZARA knows how their consumers and target group behaves on the market and reacts to new collections and lower prices. Therefore, they know that the consumers are doing a lot of impulsive buyings either online or at the physical stores, which is an advantage for ZARA, because they know their clothing can be sold out very quickly because of the trends and impulsive buyings. On the other hand it can also be an inconvenience for them, because the consumers gets frustrated when the items gets sold out very quickly.

Another thing, that could be bad for ZARA is that you can’t always find everything in store that you can find online and reverse.

ZARA

Some of the things that is a threat and influencing them from the outside is the sustainable trend. In

the future they have to focus more on the social responsibility. A lot of companies are primarily focusing on it, which could make a threat to them if they don’t do more about

Branding is also something that is growing bigger and bigger. Therefore, it would be more important to focus on in the future.

It’s a threat to ZARA from the outside, because their competitors is established on the Asian market. Their competitors already know everything about the Asian market. Their buying behavior, habits and what they’re up to, which is very new for ZARA which is making a threat to them because they don’t know market and the consumer behaviors like the other competitors do

Sub-conclusion on the TOWS-analysis:

ZARA should focus more on doing branding and marketing campaigns. They also needs to be faster on the social responsibility, when they already have some experience with their Join Life collection and the production behind the clothing line. Therefore, they should interpret it into a strategy and do more about it. Also, globally ZARA has much more potential, because of that they’re not on all markets around the world yet.

ZARA knows their target group, the markets and it’s consumers. Therefore, they can avoid some of their ‘out of stock’ situations because of their fast production and knowledge and strategies about what they want. ZARA knows what they want.

They know how to differentiate themselves from their competitors, where they can avoid some of the big competitors on the huge market because they know the market. Also, they have the fast product which is an advantage for them if there would come a new competitor on the market, who’s differentiating themselves on a higher level than ZARA does.

Because ZARA and their competitors has a very close strategy system, there’s not that much which is diffentiat-

ing them to each other. The thing that H&M has done to differentiating, which could empower H&Ms brand and it affects ZARAs brand weaker. Therefore, they should do some more collaborations. If they do some more exclusive collaborations it will affect their brand image in a positive way, because it shows to everyone else that the exclusive brands wants to collaborate with them which gives a status.

1.3 POP’s and PODs POP – Point of parity

ZARA’s POPs would be that their products are very similar to other brands as well. Especially the brand is forced to be recognized with a similar brand like MANGO. Also, they have a lot in common with another competitor H&M. When that’s said they’re very good at differentiating themselves. They take on a big role in the environment and their production stands out compared to most likely all other fashion companies around the globe.

Another POP ZARA has is when you as a customer enters the store, they want you to get the feeling you’re getting the latest fashion trends for an affordable price.

POD – Point of difference ZARA’s PODs would be that they’re good at differentiating themselves from their competitors, when it comes to production. When it comes to production they can produce a collection and deliver it to their stores within two weeks.

Sub-conclusion of POPs & PODs ZARA is a brand similar to some of the biggest competitors on the market, which is MANGO and H&M. They have Online you can search for stockings in store. They can dif- good intentions behind the concept when you enter their stores around the world. ferentiate themselves from their competitors, by doing the exact same thing just reversed. So they can search in stores for products online.

BRANDING

ASSIGMENT

ZARA

Brand awareness - ZARA doesn’t do a lot of advertisement, but what they’re doing and really good at, is that they’re doing a lot of store-fronts in their boutiques. They do this so they blend in with a lot of highend brands.

1.5 Aaker model (Leveraging the brand) Line extension To do a line extension, ZARA could for example make a plus size line. This could either be in a exsisting product class or maybe make a hole line, which is for plus size.

Body image is something that is very discussed now a days, where woman ideals is something that is taken into consideration. A lot of well-known women around the world promote that every body type is perfect, whether you’re skinny, ‘‘ normal ‘‘ or a plus size body type. They’re especially talking about the curves on a female body.

Brand loyalty - ZARA has a huge customers base, which is very good for their reputation. They have a lot of loyal customers, because ZARA as a brand keeps coming back with the latest trends, so the consumers can either blend in with the latest trends or stand out with a certain pieces.

Stretching the brand vertically ZARA is a highstreet brand with low prices. Therefore, if they want to stretch the brand they could perhabs make an exclusive line, where they focus more on the quality and prices.

Brand assets - ZARA has over 2200 stores worldwide, which is placed in 96 countries. On the Forbes’ list they’re marked as the 46th best brand list and have a brand value on $13B.

Brand extension For brand extension they could do something out of their zone. Therefore, I would suggest them to do some sort of a trend studio. With this trend studio they interact physically more with their consumers, but they do also get the oppertunity to inspire their consumers even more.

1.4 BRAND EQUITY Brand associations - ZARA is a brand which we all are familiar with. We all know the brand. They’re well-known for being modern, high-fashion and being on trend. The first thing that pops up in our minds when we think about ZARA is good quality for low costs.

Brand elements - ZARA is a brand everyone knows and recognize, when you see the bags in the streets. But most importantly, you know them because of their logo. The logo symbolizes elegance. The logo would be a perfect example of a good brand identity.

They could one store out of their clothing stores and ZARA Home. They differentiate themselves from their competitors with their ZARA Home, where it’s only H&M who has a line like this. At the moment ZARA Home is a store for itself, therefore they could unite it as one equal store and do something about the interior design of the store or even make a whole floor for ZARA Home.

Co-branding Here they could maybe make a collaboration with another brand. It could for example be a brand like KENZO. KENZO and ZARA could make a great collaboration with each other, because KENZO is a highend brand and some of their clothing lines are very similar with each other. Therefore, they have the same design ideas and therefore they could work great together. Just to keep the line between the stretching vertically and co-branding.

Maybe they could do an exclusive line with Beyonce, because she’s all about women ideals, culture and body types.

Sub-conclusion on the Aaker model ZARA has a lot of different oppertunities to evolve. They could make a great collaboration, make a trend studio to get more visual and inspire in a different way. Also, they could extend their lines with a plus line, which could attract more consumers.

1.6 CBBE model Basically, we all know that ZARA has a wide arrange of clothing, when it comes to both men, women, kids and they do even have their own ZARA Home brand. All this, you can either buy on their webshop or physically buy it in a store.

That’s what defines their success, because they interpret with their consumers (example: ZARA Ambassadors on Instagram) It’s popular, you get value for money, on trend and universal. There’s something for everyone.

When you’re wearing their clothing, it makes you feel trendy because of the fashionable clothing. It makes you feel good, because you can either be a part of a group or stand out as well. Therefore, they can make you feel sophisticated, unique etc.

1.7 Conclusion Overall we can conclude that ZARA isn’t a brand who’s going to fade away anytime soon. Because of how well they understand their target group, they know how to meet and associate with their target group.

Also we can conclude that they have such a strong brand identity, because if you see the bags or the logo you instantly know which brand it is and what they’re standing for. Also, they do have a big brand image but have grown a much bigger brand image when they started focusing of the environment and sustainability. Especially, with their Join Life collection.

There are similar competitors on the market, but ZARA knows how to differentiate themselves for these brands, so they can create value for their target group.

There’s a lot of oppertunities opened up for them on the market, which would make them have a stronger positioning on the market compared to their competitors.

BRANDING

ASSIGMENT

ZARA

https://www.inditex.com/our-commitment-to-the-environment/climate-change-and-energy/eco-stores https://www.forbes.com/companies/zara/#76f40fc27487 https://www.forbes.com/sites/gregpetro/2012/10/25/the-future-of-fashion-retailing-the-zara-approach-part-2-of-3/#624333647aa4

sources

https://martinroll.com/resources/articles/strategy/the-secret-of-zaras-success-a-culture-of-customer-co-creation/ http://retailinasia.com/in-sectors/fashion-accessories/fashion/zara-to-go-online-inthailand-vietnam-and-india/ http://zarafashion2013.wixsite.com/zara/business-strategies https://borsen.dk/opinion/blogs/view/17/2429/en_oversigt_over_emerging_ markets.html https://www.forbes.com/sites/gregpetro/2018/08/05/why-isnt-zara-on-everystreet-corner/#28f82e5a2b2b https://www.inditex.com/en/how-we-do-business/our-model/sourcing https://www.zara.com/us/en/sustainability-suppliers-l1456.html?v1=967751 https://www.inditex.com/about-us/our-brands/zara https://www.slideshare.net/LukeThurley/zara-research-report http://retailinasia.com/in-sectors/fashion-accessories/fashion/zara-to-go-online-inthailand-vietnam-and-india/

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Brand image (Minimal store image - clean and natural colours)

Close brand image to other competitors - MANGO etc.

More CSR oriented than they are right now

Fast production and collection changing - produces 20 collestions a year - fast fashion (Changing their clothing lines very quickly) - ZARA has a position on the market as a fast fashion brand. They have a very short time to market and as a consumer you can visit the store and see new products every week.

Often limited collections

Go more into the eastern market - Just opened in 2017 in India, Thailand and Vietnam

They don’t promote as much as their competitors

Globally demanding the market.

Confusing having both a physical store and a webshop - sometimes they can order it online but can’t find it in store, which could make some frustrations between the consumers.

Community - SoMe - Zara ambassadors - great relationship with consumers

Consumers can get frustrated that their stockings are listed as out of stock very quickly.

Highstreet brand - affordable prices - highstreet

They might lose some of their brand equity if they won’t focus more on branding in the near future.

Great quality

Focus more on the Asian market - A lot of consumers - Especially in China - Make a strong brand equity, brand image and loyalty there Restock more of the collections Saving enegery in stores - doing it now, but dig deeper into it They’re in 96 physical markets but only on 48 online markets.

This could be a huge potential for them.

Social responsibility

Establish productions and distribution i emerging economies around the world.

Appealing on an emotional level - Join life collection - focusing on recycling and the environment

A lot of focus on body image - feminism. Every body type is perfect.

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Huge market - which increases the competition - big companies and competitors on the market (Market, Uniqlo, Topshop, Topman etc.)

Social responsibility is a trend right now - will grow bigger in the near future SoMe - Bad reputation Branding is getting bigger and bigger. Therefore, it’s more important in the near future to focus on.

Their competitors is already established on the Asian market, which is a threat to them.

Almost a store in every big city in the world E-commerce - shop online and refund either online or in store Home (living) market - ZARA home Trendfollower - always in it with the latest trends Consumers are making a lot of impulsive buyings - ZARA knows it will be out of stock very fast.

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They’re globally demanding the market, which meets the oppertunity where they’re on 96 physical markets and on 48 online markets. Which defines that they’re going more global.

They’re not very quick in social responsibility. Therefore, they can interpret their processes with their knowledge about social responsibility, because they have some knowledge because of their Join Life concept which already is environmental oriented.

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They have the oppertunity to restock some of their ‘out of stock’ products. They know the markets and what they want, and therefore they know how much to produce. Also, they have the strategies for what gets sold out very quickly.

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They focus on the environment, because they have the knowledge about and also they have a whole clothing line about it.

Therefore, they can avoid the threat because of their knowledge.

In the future I think they should do some more marketing campaigns.

It’s a huge market, where their competitors is established on the markets. They know how to differentiate themselves from their competitors, where they can avoid some of the big competitors on the huge market because they know the market.

Online you can search for stockings in stores. They should do the exact same thing, when you’re in the physical store. They should give the consumers the oppertunities to see the possibilities online when you’re at the physical store too.

ZARA and their competiors have a very close strategy system.