Kazakhstan Institute of Management, Economics and Strategic Research
BRAND MANAGEMENT MK 3214
Theme: “Zara” brand
Instructor: Elmira Bogoviyeva
Written by: Tulegenova Aigerim - 20071441
The focus of this paper is to analyze the one of the most popular brand name called Zara. And while reading this report there can arise a question about what is so special about Zara? The challenge is that it is a brand. It is worth pointing out that this is a well known brand in the retail and fashion industry of Kazakhstan. Its name is well known all over the world, but it is very young brand in our country. Therefore, I took this brand in order to show how young and popular brand that recently came to the retail market is going to be developed, communicated and bring value to its Kazakhstani consumers.
The first part of this work talks about the brand Zara itself. Mainly, about its history, internationalization, the brand uniqueness and quick speed to consumers demand, and how the Kazakhstani consumers feel and react to its name.
The second part of this report demonstrates the six general criteria of brand elements of Zara, the elements of being successful, POD/POP and, of course the consumer based brand equity pyramid of Kazakhstani consumers. Finally, the paper identifies the main competitors of Zara in the Kazakstani market. Though, the main competitors are United Colors of Benetton, Mango, Mexx, Celio and Oggi. It is done in order to clearly understand the future of this brand in Kazakhstan. Part I
Zara is the flagship chain store of Inditex Group owned by Spanish company tycoon Amancio Ortega, who also owns brands such as Massimo Dutti, Pull and Bear, Oysho, Uterqüe, Stradivarius and Bershka. The group is headquartered in a Coruna, Galicia, and Spain, where the first Zara store opened in 1975. It is claimed that Zara needs just two weeks to develop a new product and get it to stores, compared with a six-month industry average, and launches around 10,000 new designs each year. Zara has resisted the industry-wide trend towards transferring fast fashion production to low-cost countries. Perhaps its most unusual strategy was its policy of zero advertising. The company preferred to invest a percentage of revenues in opening new stores instead. Zara was described by Louis Vuitton fashion director Daniel Piette as “possibly the most innovative and devastating retailer in the world.” Zara has also been described as a “Spanish success story” by CNN. Its first store featured low-priced look-alike products of popular, higher-end clothing fashions. The store proved to be a success, and Ortega started opening more Zara stores in Spain. During the 1980s, also he started changing the design, manufacturing and distribution process to reduce lead times and react to new trends in a quicker way, in what he called “instant fashions”. The company based its improvements in the use of information technologies and using groups of designers instead of individuals. Internationalization
It is important to mention that nowadays well-known companies are expanding very fast all over the world. And Zara brand is not an exception. That is why, it does not spend much on advertising campaigns, only 0.03% of its income, rather uses that money in order to internationalize its brand name and open new stores in other countries. The company’s internationalization started to expand through Porto, Portugal in 1980. In 1989 they entered the United States and in 1990 France. This international expansion was increased in the 1990s, with Mexico (1992), Greece (1993), Belgium and Sweden (1994), etc. until the current presence in over 73 countries. Zara stores are company-owned, except where local legislation forbids foreigner-owned businesses. In those cases, Zara franchises the stores. For 26 years Zara brand opened its doors to1,470 properties in 44...
References: 5. Kevin Lane Keller, Tony Aperia and, Mats Georgson, Strategic Brand Management: A European Perspective, 1st ed., Pearson Edition, 2008.
6. www.mktg.uni-svishtov.bg, Kevin Lane Keller, Building customer-based brand equity: A blueprint for creating strong brands, Report # 01-107, 2001.
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