Brand Audit Project Zara Andrey Nassybullin 20141341 Aidana

Brand Audit Project Zara Andrey Nassybullin 20141341 Aidana Yessengulova 20141949 Instructor: Geniyat Issin Course: MK 3214 Brand Management

Outline Brand Planning Positioning Enhancement Brand Building Assessment Resonance Key marketing activities Improvement of activities Brand Growth Assessment Brand architecture Conclusion

About ZARA Zara is a flagship brand of the Spanish retail group, Inditex group. Inditex is the world's largest fashion group, which owns other fashion brands such as Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Lefties and Uterqüe. It was founded in 1975 by Amancio Ortega 1, 671 stores in continents such as Europe, America, Africa, Asia and Oceania

What we know about Zara and its history? Zara’s founder is the first richest person in Spain and the third richest person in the world (2013). This person is Amancio Ortega (Born: March 28, Inditex founder 1936). His doughter: Marta Ortega

In the Beginning Founded by Amancio Ortega in 1975 Zara opened its first store in downtown La Coruña, Galicia, Spain. The store proved to be a success in the early 1980 s, and Ortega began opening more Zara stores throughout Spain.

Vision and Mission Vision “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” Mission Statement “Through Zara’s business model, we aim to contribute to the sustainable development of society and that of the environment with which we interacts. ”

Brand Identity Physique Basis of the brand | High reactiveness and flexibility, market-oriented Relationship Handshake between customer and company | Trusted quality, fair exchange of value Reflection Customer’s perception of what brand means | Style, individualism, assurance Self-Image What consumer thinks of herself | Confident, trendy, unique Culture Country-of-origin, values it stands for | European, international, good relationship with customers Personality What is Zara when it becomes a person | Aggressive yet calm, mature, confident, beautiful, well-kempt, modest, unpretentious, low profile

BRAND POSITIONING Zara sells apparel, footwear and accessories for women, men and children. The positioning for Zara in the fashion industry is 'affordable fast fashion' and positioned to a universal consumer market. Through the rapid imitation strategy, emphasis on the fast design, fast production, and quick sale and with the fastest speed in response to the market demand, as the representative of fast fashion.

Competitive Advantage: Marketoriented Strategy Designs are based on the latest trends Designs are ever changing according to the immediate feedback from customers Service staff in listening to customers' preferences and reacts very quickly to them Designs get altered, manufactured and restocked in the stores in 2 -4 weeks If a design is largely unpopular, Zara withdraw them from the shelves Extensive network of shopper-feedback

Marketing Mix Product: Fast Moving Fashion Fast moving fashion brand with new designs restocked in limited quantity every two weeks Process: Industry leader in lead time Creative teams - designers, sourcing specialist and product development personnel Price: Low cost, High Fashion Zara provides high fashion at an affordable cost, making its customers’ purchases value-worthy. Place: Prime retail locations Zara is located in prime retail areas, where human traffic is high. Zara has an online store Promotion: Minimum advertising

Perceptual map

Zara has no advertising. The only trade exhibition is based on trucks , storefronts, catalog and Zara bag.

Competitor Analysis

Strategic alliances Product and service alliances - when one firm licenses another to produce its product or two companies jointly market their complementary products or a new product. Whereby Zara cuts fabric in-house. It then sends the designs to one of several hundred local cooperatives for sewing, minimizing the time for raw material distribution. Logistic alliances - when one firm offers logistic service for another firm’s product. This allows Zara stores to receive new merchandise two to three times each week whereas most clothing retailers get large shipments on seasonal basis.

Brand Building Assessment Brand Resonance

Salience Depth of brand awareness Black-and-white logo Seldom uses advertisement Location strategy Among the top highly fashion retail outlets Breadth of brand awareness Stylish design with limited budget

Imagery Meeting of customers' psychological and social needs User Profile Young, fashion-conscious but with lower budget Purchase situations Window display ZARA creates psychological thoughts to let clients buy its clothing without considering too much Personality and values Modern, trendy, high fashion and individualistic

Performance Meeting of Customers' Functional Needs Reliability & Durability Disposable and fashionable design The quality is good but less than luxurious brands Style & Design Latest design The shortest time from designing to sale 15 days Service Effectiveness Not so popular products are removed so that consumers can meet what they love and buy it. Price Afordable for those who want to keep on the latest fashion

Feelings Creating which type of emotion during consumption Self-respect Less emotion about warmth, fun, security Unique, different, cool, chic, superior and individualistic

Judgments Integrating all the opinions from performance and imagery association of customers Credibility Since 1975 Expertise Fast fashion clothing for male, female and kids

Resonance Intensity or depth of psychological bonds that consumers have with the brand Behavioral loyalty Fast fashion products Sense of community Active engagement 22 million fans on Facebook Younger people who loves fashion Saves the money to design and optimizes its supply chain

Key marketing activities Fast fashion Parallel to market trends Feedback from customers Not forecasting but reacting Produces the least amount possible of what is hot Consumers are likely to regularly visit the shop

Improvements brand building activities (creating value) Product “The only true fashion brand to consider your body shape” (opposite to Abercrombie and Fitch) Design products that complement the full body shape Promotion Brand communication PR Internet Events Media cooperation

Improvements brand building activities (creating value) Pricing More inclusive, and not exclusive Place Important communication channel Gather important feedback Atmosphere

Zara Brand Architecture “Runway” fashion made accessible for everyone Policy of “glocalisation”

Strengths and Weaknesses of Brand Hierarchy Inditex Group Zara TRF Zara Woman Pull&Bears Massimo Dutti Zara Kids Zara Man Zara Home Bershka Stradivarius Oysho Uterque

Strengths and Weaknesses of Brand Hierarchy Strengths: Location Exclusivity and trendy product Weaknesses: Limited items Easy to copy design

Zara Brand Portfolio Market Growth Question Marks Stars Dogs Cash Cow Market Share

It is important to note that, when expanding internationally, Zara extends its value chain but does not entirely re-create it Zara’s approach at international expansion is particularly distinctive and cannot be easily classified into a typical category Zara first penetrates their target market with a large flagship store in a prime, urban setting.

Such a launch and expand approach allows Zara to realize several key benefits: The shipping overhead is spread as more stores are opened (i. e. it becomes cheaper to deliver to 30 branches than just to one). As more stores are opened after the flagship, customer awareness increases When Zara opens in a country, they do not have high advertising or local warehousing costs but they do have headquarters costs.

How would you judge its growth strategy? Zara is practicing both market penetration and market development strategies Zara is currently expanding aggressively in Asian countries For its business operations/processes, since the company has just bought a purchasing office located in Hong Kong, they ca n now use this facility to increase the sales in Asian countries, especially China as the largest developing market today.

Conclusion Changing generations