ZARA apparel brand project PDF

Preview

Summary

this project is a detailed description of ZARA apparel brand , their SWOT analysis etc...

Description

Brand Analysis On ZARA

Contents Problem Statement...........................................................................................................................4 Executive Summary.........................................................................................................................5 Product levels...................................................................................................................................5 Core level:....................................................................................................................................5 Generic Level:..............................................................................................................................5 Expected level:.............................................................................................................................5 Augmented Level:........................................................................................................................5 Potential Level:............................................................................................................................5 Marketing Program..........................................................................................................................5 Identification and implementation of plan...................................................................................5 ZARA’s Business Model..............................................................................................................6 Resonance model......................................................................................................................6 Rolling Inventory.....................................................................................................................6 Supply chain Strategy...............................................................................................................7 Store Fronts Approach..............................................................................................................7 Brand Elements................................................................................................................................7 Memorable...................................................................................................................................7 Meaningfulness............................................................................................................................8 Likability......................................................................................................................................9 Transferability..............................................................................................................................9 Adaptability..................................................................................................................................9 Protect ability...............................................................................................................................9 Packaging.....................................................................................................................................9 Sources of Brand Equity................................................................................................................10 Brand Awareness:.......................................................................................................................10 Brand Image...............................................................................................................................10 Strength of brand associations................................................................................................10 Favorability of brand association...........................................................................................10 2

Brand Analysis On ZARA Uniqueness of brand association............................................................................................11 Brand Positioning..........................................................................................................................11 Target Market.............................................................................................................................11 Nature of Competition................................................................................................................11 Points of Parity (POPs)..............................................................................................................12 Points of Difference (PODs)......................................................................................................12 Brand Resonance Model................................................................................................................12 Brand Salience - Identity (Who are you?).................................................................................12 Depth of brand awareness:.....................................................................................................12 Breadth of brand awareness:..................................................................................................12 Performance & Imagery—Meaning (What are you').................................................................13 Judgment & Feelings—Response (What about You?)...............................................................13 Resonance - Relationships (What about you and me?)..............................................................13 Prospective in Marketing...............................................................................................................14 Relationship Marketing..............................................................................................................14 One to One Marketing................................................................................................................15 Permission Marketing................................................................................................................15 Mass Customization...................................................................................................................15 Conclusion.....................................................................................................................................15 References......................................................................................................................................16

3

Brand Analysis On ZARA

Problem Statement Select a product/brand (Existing or Virtual) and design marketing programs to build brand equity.

Executive Summary The Brand selected is a well reckoned clothing brand ZARA having a global insight of costumers need, latest fashion trends and versatility among masses. The first section deals out with the product kevel ranging from basic to augmented level. Secondly a marketing strategy opted by Zara in radiance of brand identification & development plan, implementing marketing plan and describing the brand elements& strategies necessary to build brand equity. The third section deals with the sources of brand equity which includes brand awareness, brand image and brand positioning. The fourth section shows the resonance model and the last section shows the prospective marketing.

Product levels The product level constitutes of five paradigms ranging from basic generic, expected, augmented and potential levels are there. For ZARA the given set of level is functional.

Core level: Clothing is mainly for protection and shelter of body from environmental felony Generic Level: ZARA is recognized for stupendous quality, variant design and versatile (style, scheme& trend) clothing

Expected level: Around the global it is expected that ZARA to provide affordable Luxury & other regimes (Accessories & furniture) to the customer base

Augmented Level: Most prominent features include Customer satisfaction via Warranties, refund & exchange services. Beside this peculiar include customization of clothes, shipping and sectional Sales

Potential Level: Currently this segments deals with the R&D of fabric-style, sustaining drastic fashion trends and working on wash free clothing for far future.

4

Brand Analysis On ZARA

Marketing Program The marketing plan is based to develop the brand equity which is an elusive strain to build, the is gives insight and foresight knowledge tools to introduce a product, maintain the worth and mitigating the finances. For this strategic management approach is implemented i.e. identification of plan, implementation of models, selecting strategies and reviewing the outcomes

Identification and implementation of plan This section is the foot step of plan selecting and sorting out the model to implement strategies, the ZARA models with two main segments. First one is the customer value, loyalty and brand building. Second one comes after developing the brand image that is by snowballing with demand and supply.

ZARA’s Business Model The model works in such a manner by filling out the gap left by competitors in clothing trend by its ability to keep up with promptly shifting fashion trends with minimal delay. One of the core footstep in ZARA‘s model is customer satisfaction Stage 1

and loyalty. The interaction begins with the store the spearhead of gathering data both from in person and online This is done Resonance model

by giving an active role to customer by introducing one to one interaction via newsletters, feedbacks, promotional letters and personal wishing on occasions. Second method opted is providing an extra mile service to customers by giving reward points, discounts, early delivery and continuous product launch This is a continuous frame of loop in which inventory is roll over at a very swift pace, which creates a sense of fright among consumer if the article they like will stay till the next visit, that automatically propagates the consumer to buy it immediately .

Stage 2

The loop begins with spotting the new trend which is done by Rolling Inventory

a he team of professionals along with customer’s retirement. The next step is the design of the article which is done via in 5

Brand Analysis On ZARA hose factories. That leads to the shipping of articles to store and implementing roll over inventory approach to sell it to consumer and the loop is repeated. ZARA is Spanish apparel company producing over 450 million items and launches around 12,000 new designs annually. The crx of supply chain is in hose manufacturing in Supply chain Strategy

factories and avoiding outsourcing from Chinese manufacturer. It is viable for ZARA to do so as labor in Spain is cheaper and they recruit labor from Asian and Middle eastern countries as well. Having own distribution channels and stores enable them to sell the product. To create an exempt in apparel market ZARA instead of placing and opening store at an cost effective place tends to rent out stores near Luxury apparel shops and boutiques

Store Fronts Approach

which not only help them to attract greater foot fall but also to break the competition as well. Having maximum probabilities to develop brand awareness. Thus, saving abundance from advertisement

Brand Elements This is the main trade identities that distinguish the product from the rest. It not only deals with logos, emblem and URL but also create an insight at the end of consumer’s brain. To do so the criteria is based on memorability, meaningfulness, linkage, adaption, transferable and protection. One of the main concerns in brand equity building tis o have brand

Memorable

awareness among the masses. To do so logos emblems, URL and slogans are design. For this case ZARA uses a minimalistic logo with visual bursting with black and white color scheme. The font size alteration and small name engraved an easily reminisce able name. The type of brand name is personification. “ZARA” It uses a simple monochromatic logo with minimalistic approach showing

6

Brand Analysis On ZARA company’s descriptive name. As the name is easy to remember and simple. The logotype can not only use as store fronts but also on shopping bags, in website headers and in tags. Every letter is bit smaller and Logo, Slogans & URL

broader than standard Roman fonts. The color scheme is black and white, everyday scheme in text and newspaper which may help in remembering the simple name for a long term. Similarly ZARA don’t have a specific Slogan, the versatility in the product range is trumpet for it.

In same fashion the website uses the same name with.com as domain which means people can easily go through web store.

There is no such information about product or type of merchandize

Meaningfulness

selling is opted from the millennium logo. Showing a descriptive form of company’s name. ZARA’s store approach is its chief way to communicate with the public and has artifact categories which suit for everybody. ZARA currently runs in 2,213 stores crosswise 93 markets and 39 online markets. Having a mass customer data base. 25 M Facebook followers, 16 M on Instagram and over 1 Min Twitter. Shopper frequency at Zara is 2-3

Likability

times greater than traditional apparel, which indicates super loyalty to the brand.

Transferability

The brand Logo is simple classic having no issues with demography, and covers a global trail of about 55% revenue from global market. Showing it is highly popular and targets every segment ranging from men, women, 7

Brand Analysis On ZARA kids to street wear and footwear as well. Similarly under same name Zara is Launching bags, accessories and furniture. To sustain in ever changing change in fashion industry ZARA employs

Adaptability

differentiation and cost leader ship strategy. Alongside this supply chain is massive tool for Zara producing over 12000 different model of sale, design article. Beside this they depict there design in shops for 3-4 weeks. The variation in styles ranging from formal wear to street wear. For every

Protect ability

age group, segment and geographic changes is halted in it. For advertising prospects ZARA is strictly adopting no advertising policy. Before the Name ZARA it was originally called ZORBA which was later on changed to current one due to a bar with same name. beside this the newness name of brand is highly protected in all legal terms

Packaging It is one of the most integrated parts. Now a days ZARA has shifted towards more sustainable mindset in packaging by introducing 100% recycled cardboard. It is working with the interior designer to turn these boxes into DIY project. Beside this the fabric wear is also employed by organic cotton, recycled cotton and earthy mineral vibe. The new collection is eco-friendly approach.

Sources of Brand Equity Brand Awareness: Currently, Zara has more than 2,000 stores worldwide, and offers its products in about 40 markets online. That means, the more your product is available, the more likely you are to generate product recognition and recognition. Think of McDonald's: You could go on for the rest of your life without having to worry about another popular chain of fast food chains and you will soon see those golden bows shining in the distance. However, it is not just somewhere; it’s about being present where your target customers are. In Zara's case, this means areas with big cities (as well as other social media platforms, which we will discuss later. The lesson here is to know where your customers usually meet, and find out how your product can fit into the space. 8

Brand Analysis On ZARA Brand Image Creating a positive image of a product takes marketing processes that connect strong, attractive and unique organizations with nothing to remember. Strength of brand associations Zara has been focusing on commercially busy streets like Oxford Street in London, the ChampsElysees in Paris or the recent rental of a 50000-foot carpet space in South Korea's flagship Flora Fountain. Zara also strongly emphasizes carefully selected store windows that reflect the latest fashion trends. Zara ignores advertising as a promotional practice without briefly advertising its sales and its coverage in newspapers twice a year. Zara places great importance on word of mouth as an effective marketing tool. Favorability of brand association In summary, Zara's key to success is due to their fast distribution network. Zara focuses on the customer category that we know about fashion. While this group always wants to be alone and start with fashion. Zara's new and exclusive collection simply allows consumers to visit Zara stores regularly to see what's new in stores, before they leave. Thanks to Zara's fast distribution network, it is able to meet the rapidly changing consumer demand. That is why Zara became a magnet for customers. Uniqueness of brand association The company only uses about 0.3% of advertising revenue, and it doesn’t have much marketing to talk about. Assuming that the middle sector that spends to sell 3.5%, you can see how much of a rare duck Zara has that way. But what attracts customers is their choice and the fact that the brand is not affixed to all advertising boards. Consumers feel that if they buy a shirt from Zara, five more people will not have that shirt at work or school. The fact that the store has a small stock helps with that special feature. There’s the idea of being in a cool kids group where the product stays underground through advertising.

Brand Positioning A good product stand helps to guide a marketing strategy by explaining what type of product, how it differs and how it resembles competitive products and why the consumer should buy and use it.

9

Brand Analysis On ZARA Target Market In a modern fashion trend, Zara is primarily aimed at small customers as its main customer group, especially for thousands of years. Realizing that they are looking for fashionable but less expensive items, Zara offers a lot of the latest styles at low prices. But the quality is not damaged, the fabric used is still of sufficient quality but is intended for one season only. Compared to regular retailers, Zara offers a wide variety of styles and designs with more than 450 million products per year. Things have their own fashion seasons coming and going faster than the rest of the fashion world. Women generally like ideas for being more than half the market targeted at Zara, especially because they prefer to change their styles once in a while. Zara's high-responsive shopping sends new products to stores twice a week, giving consumers new endless options. By understanding the intended customers and offering a new fashion trend, Zara has successfully established itself as a stylish, affordable, and rapidly changing product of the new generation.

Nature of Competition Zara's main competitors include H&M, UNIQLO, Fast Retailing and Reformation. Zara is a Spanish fast-selling retailer and accessories. H&M designs (Hennes & Mauritz) and retail clothing for women, men, youth and children. Uniqlo is a casual clothing designer, manufacturer and retailer.

Points of Parity (POPs) H&M, Zara, and Uniqlo are three international clothing retailers with more than 2,000 stores each. Competing companies identify the same markets but use different strategies in their business models to manage the distribution of product lines.

Points of Difference (PODs) The brand takes a closer look at how fashion is changing and evolving every day around the world. Depending on the latest trends and styles, it creates new designs and launches them in stores in a week or two. Completely comparable, many other fashion brands can take up to six months to find new designs and collectio...