A Study on Brand Strategy

This report analyzes the brand strategy of ZARA, one of the largest fashion brands, including its target market, effectiveness, brand equity, and maintenance of the target market. Learn more about ZARA's success in the global fashion industry.

A study on brand strategy

Table of Contents
Introduction......................................................................................................................................3
Background of ZARA......................................................................................................................3
Target market of ZARA...................................................................................................................3
Effectiveness of brand strategy of ZARA.......................................................................................4
Brand equity of ZARA....................................................................................................................6
Maintenance of the target market in ZARA....................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................9

Introduction
Brand strategy refers to the steps and considerations by any specific organization taken in order
to have better brand recognition and value, so that the specific goals and objectives can be
achieved. (Heding, et al., 2015). In current competitive environment, in order to survive in the
long run, having a better brand value is crucial. Therefore, with strategic approaches it is tried
and maintained that the target customers are able to not only remember the company and the
products and services it offers, but are also convinced to invest in the same. The aim of this
report is to understand the brand strategy of ZARA which is one of the largest fashion brands on
the global platform.
Background of ZARA
Zara is the Spanish clothing retailer based brand under the flagship of Inditex group. It was
found by Amancio Ortega and Rosalia Mera in 1975. Zara is the largest clothing retailer of the
world and known for their compatibility with the changing trends of fashion. The brand changes
its collection in every one or two week and put new designs. Zara had arrived in UK in late of
1990s and now has gained the position in top 20 retailers in women clothing on the basis of the
market share with the place of 19tha and market share of 1.5%. The revenue generated by ZARA
is $ 18.9 billion annually. The products offered by Zara on its store are the apparels for women,
men and children along with accessories. Zara produces more than 450 million items in a year..
Target market of ZARA
The products of Zara are mainly designed for the men and women between the ages of 15 to 45
years. The brand majorly targets the middle income individuals who tend to invest in informative
and conscious purchase and expects value for money quality. The brand produces 58% of

clothing for women, 22% of clothing for men and 20% of clothing for children (Zara.com.,
2019). The brand also targets the working people who are more fashionable and interested in
latest fashion.
Effectiveness of brand strategy of ZARA
Zara majorly focuses in democratizing fashion in the market so that every individual is able to
access high street fashion and latest trends. The aim of the company is to provide the customer
with high quality and trendy fashion goods with the lower prices so that it can accommodate the
requirement of customers (Pappu and Christodoulides., 2017). For reaching to the target market
the Zara is using the marketing strategy the INDITEX is opening more outlets and stores so that
they can provide the ZARA of high profile location so that the brand will achieve the image of
being accessible, high fashion, hip and trendy. The brand offers the apparels with high style and
quality which reflects latest trends at the mid-price. The high quality of products of the Zara
signifies fashion codes growing to the upper and middle level. Zara provides its customers the
luxury products with latest style and also stimulate the desire of customer for purchasing the
products at the reasonable price (Erdem and Swait, 2016). The strategy followed by the brand is
to imitate or make similar high-street designs from expensive labels and offer it to the target
audience at reasonable price, which makes it easier for the price-conscious yet trend followering
segment to get access to standard fashion with minimum resources. The updating of product
twice in a week attracts the consumers who want to remain in fashion trends.
The prism of the elements of brand identity of Zara is aimed to elucidate brand identity of the
ZARA, the process of construction of brand, the ways by which it wants to seen in marketed and

the traits by which brand desires to communicate (Oh, et al., 2019). The prism of the elements
of brand identity of Zara is as follows:
Figure 1: the elements of brand identity of Zara
The physical appearance of the brand in concern can be advocated by the market oriented,
flexibility, high reactiveness and responsiveness. This is the image which brand wants to induce
in the mind of the people when the band bake Zara is stated (Witek-Hajduk, and Grudecka.,
2018).
The brand personality of Zara is stylish, beautiful, confident and unpretentious. These features
make the Zara different and unique from its competitors. The features are reflected in the
collection of brand, the decoration of store, windows and location of store (Mindrut, et al.,
2015).
Even though the company originally is from Spain and culturally closest to the European
countries, it has been successful in adapting cultural aspects of other countries within which it is

functional, leading to establishment of stronger and more effective relationship. Such are the
principles and values of corporate culture of Zara.
In Zara, the band wants to build relationship with the customers on the basis of its affordable
price and quality of the products (Aqeel, et al., 2017).
The refection of Zara is regarding assurance, style and individualism which refer to reflection of
consumer as a trendy unique and confident brand. These elements has helped the brand in
constructing the image of trendy, affordable and high quality fashion brand by which the
company wants to attract the customer in the market.
Brand equity of ZARA
The brand equity of Zara is determined by analyzing the brand awareness, perceived quality,
brad associations and brand loyalty of the company (Sasmita, and Mohd Suki., 2015). Zara is
known for its top fashion brand on the global platform which has provided it brand awareness of
the high brand level among the customers. Therefore this measure enhances the brand equity of
Zara in positive manner and has developed a relationship with its consumers while they consider
fashion industry. The perceived quality can be defined as the perception of customers regarding
the quality of the brand which also provide the frame of reference to the competitors
(Rosenbaum-Elliott, et al., 2015). The high quality products of Zara are one of its key strategy
for perceiving high quality and affordable fashion. The customers of Zara have also found its
products with higher quality in comparison to the price they paid for the product and also with
their competitors. Thus Zara is also gaining positive brand equity by high perceived quality. The
brand associations are the factors that connect the customer to the brand which include value,
image and organizational associations of brand. The Zara is also gaining positive equity in this

factor also as the factors like sustainability and consciousness for environment has constructed
positive image of the brand. The limited quantity of every product and changes in their design at
regular time intervals causes artificial scarcity in the consumers which motivates them to visit
stores regularly for purchasing products and gain band loyalty (Su and Chang, 2018). This factor
also provides positive brand equity to Zara.
Thus, it may be inferred that the company targets young, working individuals have a tendency to
experiment with their choices and preferences with resources being utilized smartly and
strategically. Factors of brand equity like perceived quality and brand loyalty are considered
necessary to be developed among the target by the company in order to ensure long term survival
in the market.
Maintenance of the target market in ZARA
The brand loyalty is referred as the choice of customer for repurchasing the product from same
brand. The target market of Zara is the customers from middle and upper middle class who wants
to stay in trend in terms of fashion and the strategies and image of Zara to change its collection
twice a week has make its image as a trendy brand (Choi, 2016). They also offer high quality of
product in the affordable range which provides them positive response from customers. It shows
that owner of the brand understand the touch point of their targeted market which are easily get
distracted towards new trends, desire of trying new and according to tend, does not want to spent
huge on apparels and higher quality of products. The fashion brand is offering all of these
features to the customers who make them to choose Zara above any other competitive brand and
thus establish brand loyalty with the customers.

Conclusion
This report is aimed for understanding the brand strategy of Zara and the analysis of targeted
market and positioning strategy has provided information about their role in the success of Zara.
This report shows that Zara has focused on the customers from 0 to 45 years as they are also
providing apparels for the kids. The company successfully targets mid-income individuals and
families who are required to maintain a lifestyle, however, the availability of resources are
limited. The strategy of changing products twice in a week is the most important factor in the
present position of Zara in the market. The elements of band identity show that Zara has
implemented every possible strategy for gaining business and building brand loyalty. The
positive brand equity of Zara also helps the company to maintain its business in the target
market.

References
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