Research Report: ZARA Brand Image, Advertising, and Customer Loyalty

This research project investigates the impact of brand image and advertising on customer loyalty, using ZARA as a case study. The report begins with an introduction, outlining the research background, aims, objectives, research questions, significance, and scope, including a Gantt chart and work breakdown structure. A literature review explores the significance of brand image and promotional activities, referencing key authors and their perspectives on brand management, advertising techniques, and their impact on customer loyalty. The research methodology section details the type of methodology, research design, approaches, data sampling, and data sources. The data analysis section interprets data with graphs and charts. The report concludes with a summary of findings, recommendations, and a list of references. The study aims to identify the effect of brand image and advertising on customer loyalty in the context of ZARA, examining the importance of brand image and promotional activities, the impact of brand management and advertising on customer loyalty, and techniques for building a strong brand image.

RESEARCH PROJECT

Table of Contents
TASK 1: INTRODUCTION............................................................................................................1
1.1 Background of research.........................................................................................................1
1.2 Aim and objectives of research.............................................................................................1
1.3 Research questions................................................................................................................1
1.4 Significance of research........................................................................................................2
1.5 Scope of research..................................................................................................................2
1.6 Gantt Chart and Work break structure..................................................................................2
2.1 Introduction...........................................................................................................................3
2.2 Significance of brand image and promotional activity.........................................................3
2.3 Impact of brand management and advertisement on customer's loyalty...............................4
2.5 Techniques that helps in creating strong brand image.........................................................5
TASK 3 – RESEARCH METHODOLOGY...................................................................................6
3.1 Introduction...........................................................................................................................6
3.2 Type of Methodology............................................................................................................6
3.2 Research design.....................................................................................................................6
3.3 Research approaches.............................................................................................................7
3.2 Data Sampling.......................................................................................................................7
3.3 Sources of data......................................................................................................................7
3.4 Limitations............................................................................................................................7
TASK 4 – DATA ANALYSIS........................................................................................................8
4.1 Introduction...........................................................................................................................8
4.2 Interpretation of data with graphs and charts........................................................................9
TASK 5 – CONCLUSION & RECOMMENDATION.................................................................12
5.1 Conclusion...........................................................................................................................12
5.2 Recommendation.................................................................................................................13
TASK 6 – REFERENCES.............................................................................................................14

TITLE: “To identify the impact of brand image and advertising on customer loyalty: A case
study on ZARA”.
TASK 1: INTRODUCTION
1.1 Background of research
This is an important section of this project which highlights the reasons of carrying out
investigation. The topic of this project is to show the impact of brand image and advertisement of
ZARA on loyalty of customers. Apart from this, this also represents some of the questions that
may emerge while doing this project. ZARA is known as a Galician fast fashion retailer which is
based in Arteixo, Galicia. It was developed by Amancio Ortega and Rosalia Mera (Das, 2014).
It offers fashionable and designable clothes for all age group of people; either male or female. In
this report, aims and objectives is also formulated to find out the need of conducting this
research. Apart from that, importance and scope of the investigation is also discussed in this
section.
1.2 Aim and objectives of research
The primary motive of this research is to identify the impact of brand image and
advertising on customer loyalty: A case study on ZARA . In addition to this, there are some
objectives of this research which are mentioned as below:
1. To study about importance of brand image and advertisement in context with ZARA.
2. To find out the effect of brand and promotional activities in gaining customer's loyalty in
ZARA.
3. Determining the techniques that help in building a strong brand image in ZARA .
1.3 Research questions
There are some questions that arise while doing this investigation which are stated as
below:
1. What is the importance of brand image and advertisement?
2. Is there any impact of brand management and advertising on customer's loyalty?
3. What are those factors that lead to break the trust of consumers from any venture?
4. What are the techniques that help in creating a strong brand image?
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1.4 Significance of research
Research report is very important as it offers intense and deep knowledge to the learners
about the theme of project. The current report is made on the basis of influence of brand image
and promotional activity on clients' faithfulness (Wang, 2010). This is representing how
branding as well as advertising helps in gaining customer retention for a long period of time.
Thus, this research would be helpful in future also as this provides ideas to ZARA and aids them
in doing proper changes in their business so that they can maintaining good brand image for long
time period.
1.5 Scope of research
This investigation is having a wider range of scope as different things are getting clear
from this research. It shows why management of brand and advertisement is important for
gaining user’s trust which is essential to be understood by ZARA so that they can use this in their
firm. By this way, they can maintain a trustworthy relationship with their clients and earn huge
profits constantly.
1.6 Gantt Chart and Work break structure
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2.1 Introduction
Literature review is the process of collecting information from secondary sources like
books, views of authors and scholars, journals, internet, etc. This is considered as very easy
means of accumulating relevant information in context of the topic of the research. In this
section, views of various authors has been aggregated so that all the questions of gets clearly
answered.
2.2 Significance of brand image and promotional activity
According to Sung and Kim (2010), brand image is a vital term in marketing with both
long and short term implications. This is genuine for both old as well as new business brand. The
belief in the mind of users of a brand's total personality that is its actual and imaginary defects
and qualities. He says that brand image is created over time via promotional campaigns with a
coherent theme and is authenticated through the direct experience of customers. He also stated
that a brand is something whose value is more than a logo that identifies the products, services or
business of the organisation. It is linked with the perception of users and how they used to
visualise the whole personality of a company's brand. On the other hand, Aurier and Séré de
Lanauze (2011), ZARA has been at the first position in the growth story of the rapid fashion
industry. Brand image is playing an eminent role in supporting it in finding instant recognition
and fame. ZARA is popular as consumer friendly brand. He says that the important principles of
its image are style of their clothes and second one is its less pricing strategy. It has been observed
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that fashion cycles are shortened at this venture as they are manufacturing smart clothes which
are just good looking because these are made by designers and provide them at affordable prices.
Lazarevic (2012) says that promotional activities are also important for every corporation
as these programmes assist in making their new products and services popular in front of clients
and also change attitude of customers towards them by gaining their trust. ZARA can take use of
different techniques of doing advertisement. They can use social media sites like Facebook, You
tube, What's app, etc. for making new deliverables famous and collecting feedbacks from their
potential users so that they can make changes in their products as per that. In addition to this,
ZARA can also use news channels, posters, newspapers, etc. for making population familiar
about their new clothes in order to attract large number of users towards them.
2.3 Impact of brand management and advertisement on customer's loyalty
As per the view point of Sean Hyun and Kim (2011) gaining customer loyalty is very
important for each and every organisation now a days as competition has been increased
drastically. If company is not achieving success in gaining trust of their clients then they may
loose them at after some time. Brand management is playing an eminent role in maintaining long
relationship with all customers. A professional visual aspect creates trust and credibility. It has
been that civilians are more probably to buy from a corporation that appears authorized or true
and polished. Emotional reaction are hard-wired into the brains of users and such reactions are
actual determinant. So, it is essential for ZARA to do proper brand management as this helps in
making large number of customers and keeping them for a long period of time. For this, they
have to focus on demands of all citizens and make their products as per that by maintaining good
quality. On the contrary, Freling and Forbes (2013), think that if company do not provides
best quality goods and services then they start loosing their clients and as a result they have face
a lot of losses in their business. This will also negatively impacts on the existing brand image of
venture. At the same time Aaker (2012) says that advertisement also helps in gaining trustworthy
relation of civilians. Promotional activities aids in providing all the information about the new
products or services of organisation to the consumers. As a result, they get aware about their new
production and purchase those which they find of good quality. Almost all of the people are
using social media applications like Face book, What's app, You - tube, etc. When company uses
such applications for their promotion then it can be easily noticed by civilians, and in turn of that
popularity of those services and goods get increases rapidly.
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2.5 Techniques that helps in creating strong brand image
According to Aaker and Joachimsthaler (2012) , it is the unique set of affiliation and view
of customer about brand. Image is nothing more but the perception of customers about product.
It is usually created by advertisements. It cannot be created in some mind but it can be
automatically generated and the same is having intangible attributes in it. The best single
marketing investment Zara can make. Advantages of strong brand image is customers are loyal,
maximum sale and profit, easy capture market. Hence, it is very important for success of
company. As per the views of Bill Xu and Chan (2010), there are several techniques of creating
brand image are:-
First is, identifying key audience they can be a mix consist of external and internal groups
it can includes customers, employees and industry also. Audience target should be according to
Zara and their cost of products.
Second, customer relation can build brand image and raise awareness about Zara in their
mind. It also help in mouth publicity and promotion of brand and the services provided by the
enterprise.
Third, their return policies of product and can take money back gives a big impact on
customers mind. It enhance and attract them to purchase product of Zara.
Fourth, uniqueness and new innovation in product easily capture market and generate
competition in market at their high.
Fifth, in bound marketing for brand image is necessary it can be done through website
design and structure. It also shows that what Zara worth.
Sixth, clarify that what kind of value you are bringing to market. It is the easy way of
creating image in market and in buyers minds also.
Seventh, focus on creating brand identity not only the name. It can be identify by the
logo, symbols, packaging, colour of products and slogan.
Eighth, consistency in looks of product is required for uniformity in brand image. Quality
of product and services should be same from starting to the end.
Ninth, gaining customer trust is necessary for building image. It can be generate through
fair deal with the customers.
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Tenth, social media can also helps in the same because it is the valuable tool for this
work. It can help in easy sharing of information and direct interaction with customer to influence
and pull them.
Eleventh, define your brand persona for building this several elements is required brand
pillars, essence, promise and the last and important mission of name.
TASK 3 – RESEARCH METHODOLOGY
3.1 Introduction
Research methodology can be simply referred as an organised scheme for carrying out
investigation. It covers all the theoretical analysis of the methods that has been applied to this
research. This is considered as significant portion as it directly supports complete report in order
to quantify accurate results.
3.2 Type of Methodology
There are commonly two types of research methodologies that are quantitative and
qualitative which is used for gathering relevant data about the topic of research. Quantitative
methodology is completely based on numerical facts (Louis and Lombart, 2010). Its aim is to
measure the quantity and carry out comparison of previous numerical facts with the current one.
This procedure of measuring is the real beauty of quantitative research as provides relation
between experimental measurement and numerical expression of quantifiable relationship.
On the contrary, qualitative research methodology is totally different from quantitative
one as in this process, data is aggregated, analysed and interpreted by taking the views and
opinions of common people. This is very much objective in nature as it uses several tools of
collecting information like questionnaire, interrogation, interviews, survey, etc. It is to be noted
that in this project qualitative research methodology has been utilised as it offers feedbacks or
views of consumers that helps in making correct decisions by the corporation.
3.2 Research design
Research design simply refers to the whole strategy that is selected for integrating
different components of the study in a consistent and analytical way, thus, assures that all the
research issues are correctly addressed. There are commonly three types of research designs that
are experimental, descriptive and exploratory (Chen, 2010). As qualitative research methodology
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has been selected here so for this descriptive design is more suitable for use because conclusion
can be easily derived from this in effective way.
3.3 Research approaches
Research approaches are categorised into two kind that are deductive and inductive frame
work. Inductive one is suitable for qualitative research, so this has been used here. There is a
difference between inductive and deductive approach that is inductive deals with formation of
new theory on the basis of information collected and deductive one is considered as aimed and
testing theory.
3.2 Data Sampling
Data sampling is generally a statistical technique used for choosing, analysing and
manipulating a symbolical set of information in order to explore different structure and trends in
larger data. Probabilistic and non probabilistic testing process is used in this regard. In present
assignment, purposive sampling process has been used because this is a piece of probabilistic
sampling that assists in taking appropriate sample from entire population (Hsu, 2012). Here,
researcher has selected specimen of 20 representatives who are current customers of ZARA.
3.3 Sources of data
There are various sources for aggregating relevant data. Some of the sources which is
utilised here are articles, books, journals, questionnaires, interviews, reports, different websites
from internet, survey, views of authors or scholars, etc. Thus, this can be said that they are the
collection of primary as well as secondary sources of research.
3.4 Limitations
Major limitations examined here is issues regarding monetary and time management.
Time provide for carrying out this research is very less and as numerous of task such as
collection of information by taking interviews of people, gathering data from secondary sources,
analysation and interpretation of data, etc. has been done here , so it requires a lot of time ( Reza
Jalilvand and Samiei, 2012). At the same time, large sum of money is needed for this purpose
but appropriate sum of revenue is not provided in this regard.
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TASK 4 – DATA ANALYSIS
4.1 Introduction
Data analysis defines as a process of examining, transforming and modelling data having
an objective of finding useful information, providing conclusion that supports decision making.
In this section, data which has been accumulated is analysed and is represented in the forms of
graphs and charts. Here questionnaire has been designed by taking interviews of consumers
regarding the topic of investigation. In this report, questionnaire is created by taking interview of
20 customers so that affect of brand image and advertisement on client loyalty can be
determined.
QUESTIONNAIRE
Name : ------------------------------------------------------------------------------------------
Age : ---------------------------------------------------------------------------------------------
Gender : ------------------------------------------------------------------------------------------
Q 1. Are you regular customer of ZARA ?
Yes
No
Q 2. Have you faith on products provided by ZARA ?
Yes
No
Q 3. Do you purchase products by considering brand image ?
Yes
No
Q 4. Do you feel any impact of brand image on customer's loyalty ?
Yes
No
Q 5. Is there any affect of advertisement in gaining trust of clients ?
Yes
No
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4.2 Interpretation of data with graphs and charts
Theme 1 : Regular customer of ZARA
Q 1. Are you regular customer of ZARA ? Frequency
Yes 15
No 5
Yes No
0
2
4
6
8
10
12
14
16
15
5 Column B
Interpretation : From the above based graphs, it can be said that most of the people are
consumers of ZARA. Some of them purchase goods from their competitors.
Theme 2 : Trust on products or services offered by ZARA
Q 2. Have you faith on products provided by
ZARA ?
Frequency
Yes 16
No 4
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Yes No
0
2
4
6
8
10
12
14
16
16
4
Column B
Interpretation : Large number of clients are having trust on the products or services offered by
ZARA. But there are some people who are not having faith on them. So, corporation needs to
gain their trust by satisfying their requirements and demands.
Theme 3 : Purchasing of goods by consideration of brand image
Q 3. Do you purchase products by considering
brand image ?
Frequency
Yes 18
No 2
Yes No
0
2
4
6
8
10
12
14
16
18
18
2
Column B
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Interpretation : Most of the civilians buy goods or services by examining their brand image. If
they observe company having good brand then they will start purchasing from there.
Theme 4 : Influence of brand image on loyalty of users
Q 4. Do you feel any impact of brand image
on customer's loyalty ?
Frequency
Yes 17
No 3
Yes No
0
2
4
6
8
10
12
14
16
18
17
3
Column B
Interpretation : Large number of people are saying that there is great impact of branding on
loyalty of clients as more papular the product, more purchasing would occur.
Theme 5 : Impact of promotional activities in attaining trust of consumers
Q 5. Is there any affect of advertisement in
gaining trust of clients ?
Frequency
Yes 15
No 5
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Yes No
0
2
4
6
8
10
12
14
16
15
5 Column B
Interpretation : Most of the citizens said that promotional programmes also impact on
customer's retention as people get aware of new deliverables offered by venture by advertisement
only.
TASK 5 – CONCLUSION & RECOMMENDATION
5.1 Conclusion
From the above based report, it can concluded that management of brand image is very
important for every organisation as this helps them in gaining trustworthy relation of their
customers. So, ZARA needs to do proper brand management and should focus on making good
brand image in front of their potential consumers in order to capture attention towards them. At
the same time, promotional activities is also proved to be essential for venture as it assist in
awaking people about their new goods and services so that they can gain their loyalty.
5.2 Recommendation
After carrying out this research, researcher provides some suggestion to ZARA which is
stated below :
 ZARA have to invest proper sum of revenue in arranging promotional programmes so
that they can do good advertisement and let the people know about their new
deliverables.
 They also have to improve their brand image in order to gain consumer's retention as
well as loyalty because it supports in increasing turn over of corporation per year.
 They can take use of social media applications like Face book, What's app, You tube,
etc. for doing advertisement as these are very cheap and also takes minimum time
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because almost people are using social media and can easily notice any advertisement
done on that.
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TASK 6 – REFERENCES
Books & journals
Reza Jalilvand, M. and Samiei, N., 2012. The effect of electronic word of mouth on brand image
and purchase intention: An empirical study in the automobile industry in Iran. Marketing
Intelligence & Planning. 30(4). pp.460-476.
Hsu, K. T., 2012. The advertising effects of corporate social responsibility on corporate
reputation and brand equity: Evidence from the life insurance industry in
Taiwan. Journal of business ethics. 109(2). pp.189-201.
Louis, D. and Lombart, C., 2010. Impact of brand personality on three major relational
consequences (trust, attachment, and commitment to the brand). Journal of Product &
Brand Management. 19(2). pp.114-130.
Chen, Y. S., 2010. The drivers of green brand equity: Green brand image, green satisfaction, and
green trust. Journal of Business ethics. 93(2). pp.307-319.
Aaker, D. A. and Joachimsthaler, E., 2012. Brand leadership. Simon and Schuster.
Bill Xu, J. and Chan, A., 2010. A conceptual framework of hotel experience and customer-based
brand equity: Some research questions and implications. International Journal of
Contemporary Hospitality Management. 22(2). pp.174-193.
Aaker, D. A., 2012. Building strong brands. Simon and Schuster.
Freling, T. H. and Forbes, L. P., 2013. An empirical analysis of the brand personality
effect. Journal of Product & Brand Management.
Sean Hyun, S. and Kim, W., 2011. Dimensions of brand equity in the chain restaurant
industry. Cornell Hospitality Quarterly. 52(4). pp.429-437.
Lazarevic, V., 2012. Encouraging brand loyalty in fickle generation Y consumers. Young
Consumers. 13(1). pp.45-61.
Aurier, P. and Séré de Lanauze, G., 2011. Impacts of in-store manufacturer brand expression on
perceived value, relationship quality and attitudinal loyalty. International Journal of
Retail & Distribution Management, 39(11). pp.810-835.
Sung, Y. and Kim, J., 2010. Effects of brand personality on brand trust and brand
affect. Psychology & Marketing. 27(7), pp.639-661.
Wang, C. Y., 2010. Service quality, perceived value, corporate image, and customer loyalty in
the context of varying levels of switching costs. Psychology & Marketing. 27(3). pp.252-
262.
Das, G., 2014. Impacts of retail brand personality and self-congruity on store loyalty: the
moderating role of gender. Journal of Retailing and Consumer services. 21(2). pp.130-
138.
Horng, J. S. and et. al., 2012. Understanding the impact of culinary brand equity and destination
familiarity on travel intentions. Tourism Management. 33(4). pp.815-824.
Online
The Power Of Customer Trust In Brand Marketing. 2017. [Online]. Available through :
<https://marketingland.com/power-customer-trust-brand-marketing-147355>.
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