How to manage a brand to be strong a study of Zara

UniversityofNottinghamHowtomanageabrandtobestrong:astudyofZaraDanyeLUOMScInternationalBusiness1Howtomanageabrandtobestrong:astudyofZarabyDanyeLUO20082ContentsAcknowledgementsAbstractChapterⅠⅠⅠⅠIntroduction1.1Backgroundtobrandmanagement……………………………………..81.2Researchquestion………………………………………………………..9ChapterⅡⅡⅡⅡLiteratureReview2.1Whatisabrand?................................................................................122.2Howabrandismanaged?.................................................................132.2.1Brandstrategy…………………………………………………..…132.2.2Threeinstrumentofabrandstrategy……………………….......152.2.2.1Brandname……………………………………………………162.2.2.2Designofthebrand…………………………………………..172.2.2.3Theeffectofadvertising…………………………………..…182.2.3Plannedmeaningofabrand…………………………………..…192.2.3.1Positioningchoice………………………………………….…192.2.3.2Brandvaluechoice…………………………………………...222.2.4Brandimage………………………………………………………..232.2.5Brand-addedvalue………………………………………………...242.2.6Developmentofbrand……………………………………………..262.2.6.1Brandportfolio………………………………………………….262.2.6.2Brandextensionandendorsementstrategy………………..272.3ThebrandofZaraisagoodstudy……………………………………….29ChapterⅢⅢⅢⅢMethodology3.1QualitativeandQuantitativeResearchMethods………………………..303.2Thechosenresearchapproaches………………………………………..3133.2.1Casestudy…………………………………………………………..313.2.2Questionnairesurvey………………………………………………313.2.3Triangulationofthesetwomethods……………………………...323.3Questionnairemethod………………………………………………….....323.3.1Participants……………………………………………………….…323.3.2Questionnairedesign…………………………………………..….323.3.3Questionnaireprocedure……………………………………....…333.4Ethicalissuesthatmayneedtobeconsidered……………………….33ChapterⅣⅣⅣⅣCasestudyofZara4.1OverviewofZara…………………………………………………………354.2Fashionabledesignwithmediumprice………………………………..354.3ProductstrategyofZara……………………………………………...…364.4Notraditionaladvertising………………………………………………..364.5Customers’feedbackandZara’simage……………………………….374.6InditexGroup……………………………………………………………...384.7Summaryofcasestudy……………………………………………….....40ChapterⅤⅤⅤⅤThefindingsfromquestionnaire5.1Theeffectofdesignandpricestrategy…………………………………425.2Intrinsicaspectofpositioning…………………………………………....435.3Choosingbrandvalue……………………………………………….…...445.4Brandimages,brand-addedvalueandbrandname………………....455.5Advertising…………………………………………………………………485.6Zara’sextensionstrategy………………………………………………...485.7Summaryofthefindings………………………………………………....49ChapterⅥⅥⅥⅥFurtherdiscussion6.1Theinfluenceofthreeinstruments……………………………………...5146.2Positioningandbrandvalueschoice………………………………….526.3Brandimagesandaddedvalue…………………………………….…546.4Brandportfolio,extensionandendorsementstrategy………………55ChapterⅦⅦⅦⅦConclusion7.1Limitationsofthestudy…………………………………………………587.2Recommendationsforfutureresearch……………………………….59References…………………………………………………...………….........60Appendix1Questionnaire…………………...……………………………69Appendix2Onesampleofquestionnaire……………………………….745AcknowledgementIwouldliketogiveahugethankstomysupervisorHarjitSkehon,whogavemealotofencouragementandsuggestionsinmyentirewritingprocessandappreciatehishardworkontherevisionofit.Ialsowouldliketoexpressmygratefulappreciationtoallthosewhokindlytookpartinandsupportedthisdissertation.6AbstractThemeaningthatabrandstandsforisextremelysignificantforconsumers,soaconsiderablenumberofresearchers(Philips,1988;Murphy,1990;BrymerandSchiro,1989;Temporal,2002)areincreasinglyinterestedinbrandmanagement.Themainpurposeofthisstudyistoinvestigatehowabrandismanagedtobecomeastrongbrand.Thestudywillcommencewithananalysisofseveralkeyelementsinthemanagementofabrand.Thethreemajorinstrumentsofabrandstrategyare:positioningandbrandvalueschoice;brandimages;andaddedvalue.Ifcorporationsexploitsomebrandsintomorethanonemarket,thedevelopmentofabrandportfolio,extensionandendorsementstrategymaybeused(Riezebosetal.,2003;Riezebos,1995b;Temporal,2002).Zaraisagoodcasestudytoshowhowthebrandhasbeenmanagedtobecomeapowerfulbrandinthefashionindustry(Tungate,2005).Acombinationofqualitative(casestudy)andquantitative(questionnairesurvey)methodswillbeemployedtoascertainwhetherZara’ssuccessisintermsofvitalelements,asmentionedabove,inthebrandmanagement.Researchsuggeststhatabrandwithaccuratepositioningandbrandvalueschoice,positivebrandimageandhighbrand-addedvalue,shouldbecomeapowerfulbrand.Brandname,designandadvertisinghaveanimportantinfluenceonthisprogression.Abrandportfolio,brandextensionandendorsementstrategycanbeusedtodevelopbrandsforentryintoothermarkets.Ifthesestrategiesaremanagedwell,abrandcanalsobecomestronger.Keywords:brandmanagement,positioning,brandvalues,brandimages,brand-addedvalue,abrandportfolio,extensionand7endorsementstrategy,Zara.8ChapterⅠⅠⅠⅠIntroduction1.1BackgroundtobrandmanagementWhenpeopleseetheword“Nike”,“BMW”or“CocaCola”,brandisawordthatspringstomind.TheEnglishword`brand’originatedintheMiddleAges(from476to1492).Itis“…adegenerateoftheoldNorsewordbrandr,whichreferstothebrandingofcattle”(Riezebosetal.,2003:2;Keller,1998;Cheverton,2006;Olins,2003).Thiswasawayofmakingadifferentiationinownership.“TheVikingsmayhavespreadthewordbrandrinEn