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STYLISH
CLASSY
TRENDY
GOOD QUALITY
BRAND AUDIT FOR




                  CAROLYN KHOO
                   DOUGLAS LAM
                   MOSES RICHU
                    JEANNIE TSE
                    REBECCA WU
                  MICHELLE ZHANG
AGENDA


BRAND HISTORY



  ASSESSMENT OF INTENDED BRAND
  MEANING


     ASSESSMENT OF ACTUAL BRAND
     MEANING


        EVALUATION OF CATEGORY
        EXTENSION


           ASSESSMENT OF BRAND STRENGTH
           + FINAL RECOMMENDATIONS
BRAND HISTORY
ZARA



         WHY ZARA

• Positive growth in declining
  industry
• Little expenditure in
  traditional advertising
• Transcending international
  borders
• Fast Fashion
MAJOR EVENTS

       •  Founded in Galicia, Spain by Amancio Ortega
1975

       •  Inditex became holding company
1985

       •  First Expansion outside of Spain, in Portugal
1988

       •  Zara Home was established
2003

       •  Zara overtake GAP in terms of worldwide sales
2008

     •  Opens Online Store; Accused of Slave Labour in
2011 Brazil and Does not Meet Quality Control in China

       •  Crisis – Toxic Chemicals found in Clothing
2012
TARGET MARKET


      TARGET MARKET

• Women, men, children
• 0-40+
• Fondness for fashion
• Women to men = 80:20 ratio
• Primary focus = women
  20-40
INTENDED BRAND
MEANING
INTENDED BRAND MEANING



        STYLISH


         TRENDY


         CLASSY


     GOOD QUALITY
INTENDED BRAND
  MEANING : STYLISH


                   STYLISH

•  Having elegance or taste in dress and suits
   one’s individual style: a complete look
•  Zara:
   •  Wide range of styles
   •  Suitable for all people
   •  Mannequins and models have individual
      and lasting styles
   •  Each store stocks clothing that reflect
      style preferences
•  Shows that Zara can provide clothing that
   looks good regardless of trends
INTENDED BRAND
 MEANING : STYLISH


          PROS                          CONS

•  Not limited to one look   •  Large product line
•  Reach a broad audience    •  Dilution of image
•  If someone changes        •  No specialization or
   style profile, can still      differentiation
   shop in Zara              •  e.g. Tommy Hilfiger,
•  Allows for                   American Apparel
   experimentation
•  Inspires confidence in
   brand with fashionable
   people
INTENDED BRAND
  MEANING : TRENDY


                   TRENDY

•  Able to follow the latest trends or
   fashions
•  Zara:
   •  Updates with new clothing every week
   •  Online lookbook is updated every
      month
   •  Post photos of new looks on Twitter
   •  Display on-trend clothing on storefronts
•  Shows that Zara can stay on top of new
   trends
INTENDED BRAND
 MEANING : TRENDY

          PROS                        CONS

• Encourages more            • Brand image of an
  traffic; visit store more     imitator
  often                      • Possible image of low
• More opportunity to          quality
  purchase                   • Drive away consumers
• One of the first stores       who do not like trends
  visited if they see an     • Tends to target a
  item in media                younger demographic
• Adds to image of being
  fashionable
INTENDED BRAND
  MEANING : CLASSY


                    CLASSY

•  Sophisticated and clean style, usually
   targeted towards more mature individuals
•  Zara:
   •  Clean black and white design theme
      •  Stores, website, mobile app, campaign
         videos
   •  Uncluttered stores, with well placed
      clothing
   •  Offers basic clothing that do not go out of
      style
•  Mimics the feeling of high-end luxury
   brands
INTENDED BRAND
 MEANING : CLASSY

           PROS                        CONS

• Aspirational motivation    • May deter mass from
  for customers                purchasing
• Classy store               • Do not feel like they fit
  atmosphere has spill         the target look,
  over effect                  unattainable
• Clothes seem more          • Less likely to shop more
  expensive                    due to lasting style
• Confidence that             • May conflict with trendy
  clothing will not go out   • However, classy is
  of style quickly             currently in fashion
INTENDED BRAND
MEANING : GOOD QUALITY


                 GOOD QUALITY

 •  Follows from intended brand meaning of
    classiness. Provide clothing that lasts.
 •  Zara:
    •  Made in Europe: Spain, Portugal and
       Turkey
    •  Store positioning near high-quality, luxury
       brands
    •  Spill over effect from high-end store
       design
    •  Premium pricing compared to H&M
 •  Appeals to those who want affordable, fast
    trends but still good quality
INTENDED BRAND
MEANING : GOOD QUALITY

            PROS                       CONS

 • Allows for more            • Opportunity to commit
   premium price over           transgression against
   competitors in similar       customer
   category                   • Quality does not meet
 • Higher trust in              expectation
   customers                  • Higher costs
 • Better image
 • Imitate not only the
   look, but the quality of
   high-end brands
ACTUAL BRAND
MEANING
METHODOLOGY



  4 GEOGRAPHIC
    LOCATIONS

 52 RESPONDENTS


 216 ASSOCIATIONS


  70 CATEGORIES
PRIMARY ASSOCIATIONS

                                                               COUNT

                            Professional"             Other"
                                1%"                                           Clothing"
                                                      16%"
                                                                                16%"
                           Mid-range"
                              1%"
               Basic"             Big"
                1%"               1%"

                    Arrogant"
                       1%" High-end"
                                 2%"                                               Functional items"
                    Expensive"
                                                                                         16%"
                       2%"

Clothing details"
      2%"                  Classy"
                            2%"
                                 Trendy"
                                   3%"                                              Stylish"
                            Retail Branding"                                         11%"
                                   3%"                         Good
                                                               value"   Foreign"
                             Retail environment"                          6%"
                                     4%"                        6%"
                                             Good quality"
                                                 4%"
SECONDARY ASSOCIATIONS

                                                           COUNT



                                           Other"
                  Sales"                   19%"                         Functional items"
                                                                              15%"
                   1%"
            Low quality"
               1%"
                                                                                             Foreign"
             Conformist"                                                                       7%"
                1%"
        Casual"
         1%"
Bold"                                                                                            Trendy"
1%"              Mid-range"                                                                        5%"
                    2%"
           Fitting"                                                                             Classy"
            2%"                                                                                  4%"
   Clothing details"
                           Big"
         2%"                                                                                Clothing"
                           2%"
                                                                                              4%"
           Professional"
               2%"
               Comparisons                                                                     Expensive"
                                  Basic"
              to other brands"                                                                    4%"
                                   2%"                            Stylish"
                    2%"                                                              Distribution channel"
                                                                   3%"
                     Retail environment"                                                      3%"
                                                 Good                        Retail Branding"
                             3%"                          Attractive"
                                   Good value"   quality"                           3%"
                                      3%"                    3%"
                                                  3%"
ACTUAL BRAND MEANING: STYLISH



   SUCCESS: MEDIUM-HIGH

 • 3rd most recalled
   association (7%)
 • Top non-generic
   association; mostly primary
 • 2/4 respondents listed Zara
   as one of top places to
   shop for style
ACTUAL BRAND MEANING: STYLISH


                                        AGE + “STYLISH”
                                 14%"
  % out of 52 respondents!




                                 12%"
                                 10%"
                                  8%"
                                  6%"
                                  4%"
                                  2%"
                                  0%"
                                        Under
                                                21-25"   26-30"   31+"
                                         21"
                             Secondary"  4%"     2%"      4%"     0%"
                             Primary"    2%"     4%"      8%"     8%"
ACTUAL BRAND MEANING: TRENDY



   SUCCESS: LOW-MEDIUM

 • 6th most recalled
   association (4%); mostly
   secondary
 • No respondents top place
   to shop for trendiness
 • Disappointing for Zara
ACTUAL BRAND MEANING: TRENDY

                                          GENDER + “TRENDY”
                                 16%"
                                 14%"
  % out of 52 respondents!




                                 12%"
                                 10%"
                                  8%"
                                  6%"
                                  4%"
                                  2%"
                                  0%"
                                            Men"      Women"
                             Secondary"     4%"        10%"
                             Primary"       4%"         4%"
ACTUAL BRAND MEANING: CLASSY



     SUCCESS: LOW-
        MEDIUM
 • 9th most recalled
  association (3%)
 • mostly a secondary
  association
ACTUAL BRAND MEANING: CLASSY

                                          GENDER + “CLASSY”
                                 14%"
  % out of 52 respondents!




                                 12%"

                                 10%"

                                  8%"

                                  6%"

                                  4%"

                                  2%"

                                  0%"
                                           Men"       Women"
                             Secondary"    6%"         2%"
                             Primary"      6%"         0%"
ACTUAL BRAND MEANING: CLASSY

                              INCOME DISTRIBUTION OF RESPONDENTS
                            40%"
                            35%"
% out of 52 respondents!




                            30%"                                 NOTE DISTRIBUTION

                            25%"
                            20%"
                            15%"
                            10%"
                              5%"
                              0%"
                                               $20-40   $40-60   $60-80
                                      <$20k"                              $80k+"     --"
                                                 k"       k"        k"
                           Primary"   37%"      13%"     20%"      8%"     17%"      6%"
ACTUAL BRAND MEANING: CLASSY


                                  INCOME + “CLASSY”
                            7%"
                                             à EQUAL PERCEPTION
 % out of 52 respondents!




                            6%"               OF “CLASSY” ACROSS
                                              ALL INCOME LEVELS
                            5%"

                            4%"

                            3%"

                            2%"

                            1%"

                            0%"
            <$20k" $20-40k" $40-60k" $60-80k" $80k+"
 Secondary" 2%"      2%"      2%"      2%"     0%"
 Primary"    4%"     0%"      2%"      0%"     0%"
ACTUAL BRAND MEANING: GOOD QUALITY




    SUCCESS: LOW-MEDIUM

 •  7th most recalled association
    (4%); mostly a primary
    association
 •  21% shop for “good quality”
 •  18% that value good quality
    apparel would go to Zara
ACTUAL BRAND MEANING: GOOD QUALITY


                                      INCOME + “GOOD QUALITY”
                                           AS TOP FACTOR
                            12%	
  
 % out of 52 respondents!




                            10%	
  



                             8%	
  



                             6%	
  



                             4%	
  



                             2%	
  



                             0%	
  
               <$20k"                       $20-40k" $40-60k" $60-80k"   $80k+"
     Series 1"  4%"                           6%"      0%"      2%"       10%"
ACTUAL BRAND MEANING: GOOD QUALITY


                                  INCOME + “GOOD QUALITY”
                            9%"                   à EQUAL PERCEPTION
                            8%"                     OF GOOD QUALITY
                                                   ACROSS ALL INCOME
 % out of 52 respondents!




                            7%"                          LEVELS

                            6%"
                            5%"
                            4%"
                            3%"
                            2%"
                            1%"
                            0%"
            <$20k"                   $20-40k" $40-60k" $60-80k"   $80k+"
 Secondary" 6%"                        4%"      0%"      0%"       0%"
 Primary"    2%"                       2%"      0%"      2%"       4%"
CATEGORY
EXTENSIONS
ZARA HOME
ZARA HOME - OVERVIEW


                          PRODUCT
      HISTORY
                         ATTRIBUTES
 • Introduced          • “Moderately
   2003                  priced, fashion-
 • Home décor            forward
   market                housewares”
 • 357 stores, 35
   countries
ZARA HOME -
   ASSOCIATIONS



      PRODUCT
    ASSOCIATIONS         WEBSITE


•  Stylish         •  Plain and simple
•  Good quality       design (classy and
•  Classy             contemporary)
•  Trendy styles
ZARA HOME - SUCCESSES



       WEBSITE             PRODUCT

 • Text minimised,      • Exotic names
   images take          • Similar to Zara
   majority of            Website
   page
 • Similar to Zara
   Website
ZARA HOME - FAILURES




   INCONSISTENCIES
  • Slower moving stock
    – conflicts with trendy
ZARA HOME – NEW
  ASSOCIATIONS



     NEW
 ASSOCIATIONS
• Contemporary
• Ethnic
FUTURE EXTENTIONS
     METHODOLOGY


ACCURATE BRAND MEANING
ASSESSMENT



STRETCH POTENTIAL


NEW, UNIQUE VISION TO
THE CATEGORY
POTENTIAL EXTENTION
      FRAMEWORK



MOST SALIENT ASSOCIATIONS:


STYLISH (11%)
FOREIGN (6%)
GOOD QUALITY (4%)
TRENDY (2%)


NEW, UNIQUE VISION TO
THE CATEGORY
POTENTIAL EXTENTION
  OPPORTUNITIES

   COFFEE SHOPS             COFFEE SHOPS
   Benefits Sought           Benefits Sought
• Professional           • Classy image re-
• Stylish                  enforced
• High-end               • Aspirational effect
• Foreign                  created
• Good Quality (food &   • Fast-fashion
  service)                 reinforced, encourage
                           more store visits
• Networking
POTENTIAL EXTENTION
  OPPORTUNITIES

 WATCHES – Benefits    WATCHES – Impact
     Sought                on Brand
• Professional        • High perceived fit
• Good value          • Improved top-of-
• Status symbol         mind awareness
• High-end            • Improved
• Keep time             perception of
                        trendiness
BRAND STRENGTH
Y&R MATRIX


                                     UNREALIZED
                                      POTENTIAL     LEADERSHIP
(DIFFERENTIATION + RELEVANCE)"




                                                                   DECLINING
                                                    ARITZIA
                                               H&M
       BRAND STRENGTH!




                                          FOREVER 21
                                                A|X
                                    CLUB ZARA!
                                    MONACO         BANANA
                                                        REPUBLIC
                                                    TOMMY



                                                                   ERODED
                                                    HILFIGER
                                              NEW




                                           BRAND STATURE!
FOR THOSE IN-THE-KNOW

         FOR THOSE IN-THE-KNOW
DIFFERENTIATION : MED-LOW

             “SIMILAR COMPANIES”

                                 H&M"
                                 20%"
               Other"
               32%"
Mexx"
                                 Forever 21"
 2%"
                                    10%"



  None!                      Top            Banana
   4%!                      Shop"           Republic"
  Tommy                      8%"              8%"
  Hilfiger"       Club
    4%"         Monaco" Armani          Aritzia"
                 4%" Exchange"           4%"
                          4%"
RELEVANCE : HIGH

             TOP FACTOR + PURSUIT
40"                                                      36"
35"
30"
25"
20"
      14"
15"
10"         7"   6"                  6"
                           4"   5"                  4"
 5"                   2"                  2"   1"
 0"
RELEVANCE : HIGH

                                    TOP DESTINATION FOR
                                       “FASHION FIND”
                       30%"

                       25%"
% of 52 respondents!




                       20%"
                                POTENTIAL SKEW
                                 FROM PRIMING
                       15%"

                       10%"

                       5%"

                       0%"
RELEVANCE : HIGH

                                   TOP DESTINATION FOR
                                    “DRESS TO IMPRESS”
                       30%"

                       25%"
% of 52 respondents!




                       20%"
                                POTENTIAL SKEW
                                 FROM PRIMING
                       15%"

                       10%"

                       5%"

                       0%"
ESTEEM : HIGH

    VALENCE OF ASSOCIATIONS



      Fuctional"       Positive"
        30%"            34%"




            Neutral"
             29%"            Negative"
                               7%"
KNOWLEDGE : MED-LOW


                   Low quality" Popular"
                                               Sales"
                                                1%"           COUNT
                      1%"         1%"

                  Casual"
                                                          Other"
                   1%"      Multifunctional"              15%"
               High-end"          1%"                                         Functional items"
                  1%"                                                               15%"
                      Bold" Conformist"
                      1%"      1%"
                   Arrogant"
                      1%"                                                                         Clothing"
    Fitting"                                                                                        10%"
     1%"
              Comparisons to
                other brands"
     Mid-range"
                    1%"
        2%"
              Big"                                                                                  Stylish"
              2%" Attractive"                                                                        7%"
                        2%"
         Professional"
             2%"
                                                                                              Foreign"
Distribution            Clothing details"                                                       6%"
 channel"                     2%"
    2%"
                       Basic"
                        2%"     Retail Branding"                                  Trendy"
                                       3%"                                          4%"       Good value"
                                                                                                 4%"
                            Expensive"          Classy"
                               3%"               3%"        Retail environment"
                                                                                        Good quality"
                                                                    4%"                    4%"
FINAL
RECOMMENDATIONS
OVERALL
          B
SCORE
ISSUE 1


    STRONG ASSOCIATION WITH
       FUNCTIONAL ITEMS
•  Clear marketing message!
   •  Up-to-date style for
      sophisticated individuals
•  Explicit themes with clear wording
   •  i.e. “fashionable basics for
      everyday”
•  Show campaign videos in-store
•  International marketing campaign
ISSUE 2


“TRENDY” ASSOCIATION IS WEAK

• Emphasize and promote fast
  fashion model:!
  • Highlight new arrivals
  • Reinforce limited quantities ->
    often on racks for less than a
    month
  • Showcase new trends
    explicitly
    • i.e. “Get this look”
• High-profile models
ISSUE 3


MISALIGNMENT IN PERCEIVED
   QUALITY WITH ACTUAL
         QUALITY
•  Increase Quality!
   •  Relocate back to original
      factory
   •  Trace quality issues to find
      root problem
•  Decrease Expectations
   •  Alter pricing strategy
ISSUE 4


  PRODUCT VALUE
     UNCLEAR
• Expensive – Lack
  of Perceived Value!
• Linked with
  Previous Issue
CONCLUSION




INTENDED BRAND MEANING
VS. ACTUAL BRAND MEANING


RECOMMENDATIONS


STRENGTHS
THANK YOU
INCOME DISTRIBUTION OF RESPONDENTS
                            40%"

                            35%"
% out of 52 respondents!




                            30%"

                            25%"

                            20%"

                            15%"

                            10%"

                              5%"

                              0%"
                                      <$20k"   $20-40k"   $40-60k"   $60-80k"   $80k+"    --"
                           Primary"    37%"     13%"       20%"        8%"       17%"    6%"

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Zara Brand Audit Final Presentation

  • 5. BRAND AUDIT FOR CAROLYN KHOO DOUGLAS LAM MOSES RICHU JEANNIE TSE REBECCA WU MICHELLE ZHANG
  • 6. AGENDA BRAND HISTORY ASSESSMENT OF INTENDED BRAND MEANING ASSESSMENT OF ACTUAL BRAND MEANING EVALUATION OF CATEGORY EXTENSION ASSESSMENT OF BRAND STRENGTH + FINAL RECOMMENDATIONS
  • 8. ZARA WHY ZARA • Positive growth in declining industry • Little expenditure in traditional advertising • Transcending international borders • Fast Fashion
  • 9. MAJOR EVENTS •  Founded in Galicia, Spain by Amancio Ortega 1975 •  Inditex became holding company 1985 •  First Expansion outside of Spain, in Portugal 1988 •  Zara Home was established 2003 •  Zara overtake GAP in terms of worldwide sales 2008 •  Opens Online Store; Accused of Slave Labour in 2011 Brazil and Does not Meet Quality Control in China •  Crisis – Toxic Chemicals found in Clothing 2012
  • 10. TARGET MARKET TARGET MARKET • Women, men, children • 0-40+ • Fondness for fashion • Women to men = 80:20 ratio • Primary focus = women 20-40
  • 12. INTENDED BRAND MEANING STYLISH TRENDY CLASSY GOOD QUALITY
  • 13. INTENDED BRAND MEANING : STYLISH STYLISH •  Having elegance or taste in dress and suits one’s individual style: a complete look •  Zara: •  Wide range of styles •  Suitable for all people •  Mannequins and models have individual and lasting styles •  Each store stocks clothing that reflect style preferences •  Shows that Zara can provide clothing that looks good regardless of trends
  • 14. INTENDED BRAND MEANING : STYLISH PROS CONS •  Not limited to one look •  Large product line •  Reach a broad audience •  Dilution of image •  If someone changes •  No specialization or style profile, can still differentiation shop in Zara •  e.g. Tommy Hilfiger, •  Allows for American Apparel experimentation •  Inspires confidence in brand with fashionable people
  • 15. INTENDED BRAND MEANING : TRENDY TRENDY •  Able to follow the latest trends or fashions •  Zara: •  Updates with new clothing every week •  Online lookbook is updated every month •  Post photos of new looks on Twitter •  Display on-trend clothing on storefronts •  Shows that Zara can stay on top of new trends
  • 16. INTENDED BRAND MEANING : TRENDY PROS CONS • Encourages more • Brand image of an traffic; visit store more imitator often • Possible image of low • More opportunity to quality purchase • Drive away consumers • One of the first stores who do not like trends visited if they see an • Tends to target a item in media younger demographic • Adds to image of being fashionable
  • 17. INTENDED BRAND MEANING : CLASSY CLASSY •  Sophisticated and clean style, usually targeted towards more mature individuals •  Zara: •  Clean black and white design theme •  Stores, website, mobile app, campaign videos •  Uncluttered stores, with well placed clothing •  Offers basic clothing that do not go out of style •  Mimics the feeling of high-end luxury brands
  • 18. INTENDED BRAND MEANING : CLASSY PROS CONS • Aspirational motivation • May deter mass from for customers purchasing • Classy store • Do not feel like they fit atmosphere has spill the target look, over effect unattainable • Clothes seem more • Less likely to shop more expensive due to lasting style • Confidence that • May conflict with trendy clothing will not go out • However, classy is of style quickly currently in fashion
  • 19. INTENDED BRAND MEANING : GOOD QUALITY GOOD QUALITY •  Follows from intended brand meaning of classiness. Provide clothing that lasts. •  Zara: •  Made in Europe: Spain, Portugal and Turkey •  Store positioning near high-quality, luxury brands •  Spill over effect from high-end store design •  Premium pricing compared to H&M •  Appeals to those who want affordable, fast trends but still good quality
  • 20. INTENDED BRAND MEANING : GOOD QUALITY PROS CONS • Allows for more • Opportunity to commit premium price over transgression against competitors in similar customer category • Quality does not meet • Higher trust in expectation customers • Higher costs • Better image • Imitate not only the look, but the quality of high-end brands
  • 22. METHODOLOGY 4 GEOGRAPHIC LOCATIONS 52 RESPONDENTS 216 ASSOCIATIONS 70 CATEGORIES
  • 23. PRIMARY ASSOCIATIONS COUNT Professional" Other" 1%" Clothing" 16%" 16%" Mid-range" 1%" Basic" Big" 1%" 1%" Arrogant" 1%" High-end" 2%" Functional items" Expensive" 16%" 2%" Clothing details" 2%" Classy" 2%" Trendy" 3%" Stylish" Retail Branding" 11%" 3%" Good value" Foreign" Retail environment" 6%" 4%" 6%" Good quality" 4%"
  • 24. SECONDARY ASSOCIATIONS COUNT Other" Sales" 19%" Functional items" 15%" 1%" Low quality" 1%" Foreign" Conformist" 7%" 1%" Casual" 1%" Bold" Trendy" 1%" Mid-range" 5%" 2%" Fitting" Classy" 2%" 4%" Clothing details" Big" 2%" Clothing" 2%" 4%" Professional" 2%" Comparisons Expensive" Basic" to other brands" 4%" 2%" Stylish" 2%" Distribution channel" 3%" Retail environment" 3%" Good Retail Branding" 3%" Attractive" Good value" quality" 3%" 3%" 3%" 3%"
  • 25. ACTUAL BRAND MEANING: STYLISH SUCCESS: MEDIUM-HIGH • 3rd most recalled association (7%) • Top non-generic association; mostly primary • 2/4 respondents listed Zara as one of top places to shop for style
  • 26. ACTUAL BRAND MEANING: STYLISH AGE + “STYLISH” 14%" % out of 52 respondents! 12%" 10%" 8%" 6%" 4%" 2%" 0%" Under 21-25" 26-30" 31+" 21" Secondary" 4%" 2%" 4%" 0%" Primary" 2%" 4%" 8%" 8%"
  • 27. ACTUAL BRAND MEANING: TRENDY SUCCESS: LOW-MEDIUM • 6th most recalled association (4%); mostly secondary • No respondents top place to shop for trendiness • Disappointing for Zara
  • 28. ACTUAL BRAND MEANING: TRENDY GENDER + “TRENDY” 16%" 14%" % out of 52 respondents! 12%" 10%" 8%" 6%" 4%" 2%" 0%" Men" Women" Secondary" 4%" 10%" Primary" 4%" 4%"
  • 29. ACTUAL BRAND MEANING: CLASSY SUCCESS: LOW- MEDIUM • 9th most recalled association (3%) • mostly a secondary association
  • 30. ACTUAL BRAND MEANING: CLASSY GENDER + “CLASSY” 14%" % out of 52 respondents! 12%" 10%" 8%" 6%" 4%" 2%" 0%" Men" Women" Secondary" 6%" 2%" Primary" 6%" 0%"
  • 31. ACTUAL BRAND MEANING: CLASSY INCOME DISTRIBUTION OF RESPONDENTS 40%" 35%" % out of 52 respondents! 30%" NOTE DISTRIBUTION 25%" 20%" 15%" 10%" 5%" 0%" $20-40 $40-60 $60-80 <$20k" $80k+" --" k" k" k" Primary" 37%" 13%" 20%" 8%" 17%" 6%"
  • 32. ACTUAL BRAND MEANING: CLASSY INCOME + “CLASSY” 7%" à EQUAL PERCEPTION % out of 52 respondents! 6%" OF “CLASSY” ACROSS ALL INCOME LEVELS 5%" 4%" 3%" 2%" 1%" 0%" <$20k" $20-40k" $40-60k" $60-80k" $80k+" Secondary" 2%" 2%" 2%" 2%" 0%" Primary" 4%" 0%" 2%" 0%" 0%"
  • 33. ACTUAL BRAND MEANING: GOOD QUALITY SUCCESS: LOW-MEDIUM •  7th most recalled association (4%); mostly a primary association •  21% shop for “good quality” •  18% that value good quality apparel would go to Zara
  • 34. ACTUAL BRAND MEANING: GOOD QUALITY INCOME + “GOOD QUALITY” AS TOP FACTOR 12%   % out of 52 respondents! 10%   8%   6%   4%   2%   0%   <$20k" $20-40k" $40-60k" $60-80k" $80k+" Series 1" 4%" 6%" 0%" 2%" 10%"
  • 35. ACTUAL BRAND MEANING: GOOD QUALITY INCOME + “GOOD QUALITY” 9%" à EQUAL PERCEPTION 8%" OF GOOD QUALITY ACROSS ALL INCOME % out of 52 respondents! 7%" LEVELS 6%" 5%" 4%" 3%" 2%" 1%" 0%" <$20k" $20-40k" $40-60k" $60-80k" $80k+" Secondary" 6%" 4%" 0%" 0%" 0%" Primary" 2%" 2%" 0%" 2%" 4%"
  • 38. ZARA HOME - OVERVIEW PRODUCT HISTORY ATTRIBUTES • Introduced • “Moderately 2003 priced, fashion- • Home décor forward market housewares” • 357 stores, 35 countries
  • 39. ZARA HOME - ASSOCIATIONS PRODUCT ASSOCIATIONS WEBSITE •  Stylish •  Plain and simple •  Good quality design (classy and •  Classy contemporary) •  Trendy styles
  • 40. ZARA HOME - SUCCESSES WEBSITE PRODUCT • Text minimised, • Exotic names images take • Similar to Zara majority of Website page • Similar to Zara Website
  • 41. ZARA HOME - FAILURES INCONSISTENCIES • Slower moving stock – conflicts with trendy
  • 42. ZARA HOME – NEW ASSOCIATIONS NEW ASSOCIATIONS • Contemporary • Ethnic
  • 43. FUTURE EXTENTIONS METHODOLOGY ACCURATE BRAND MEANING ASSESSMENT STRETCH POTENTIAL NEW, UNIQUE VISION TO THE CATEGORY
  • 44. POTENTIAL EXTENTION FRAMEWORK MOST SALIENT ASSOCIATIONS: STYLISH (11%) FOREIGN (6%) GOOD QUALITY (4%) TRENDY (2%) NEW, UNIQUE VISION TO THE CATEGORY
  • 45. POTENTIAL EXTENTION OPPORTUNITIES COFFEE SHOPS COFFEE SHOPS Benefits Sought Benefits Sought • Professional • Classy image re- • Stylish enforced • High-end • Aspirational effect • Foreign created • Good Quality (food & • Fast-fashion service) reinforced, encourage more store visits • Networking
  • 46. POTENTIAL EXTENTION OPPORTUNITIES WATCHES – Benefits WATCHES – Impact Sought on Brand • Professional • High perceived fit • Good value • Improved top-of- • Status symbol mind awareness • High-end • Improved • Keep time perception of trendiness
  • 48. Y&R MATRIX UNREALIZED POTENTIAL LEADERSHIP (DIFFERENTIATION + RELEVANCE)" DECLINING ARITZIA H&M BRAND STRENGTH! FOREVER 21 A|X CLUB ZARA! MONACO BANANA REPUBLIC TOMMY ERODED HILFIGER NEW BRAND STATURE!
  • 49. FOR THOSE IN-THE-KNOW FOR THOSE IN-THE-KNOW
  • 50. DIFFERENTIATION : MED-LOW “SIMILAR COMPANIES” H&M" 20%" Other" 32%" Mexx" Forever 21" 2%" 10%" None! Top Banana 4%! Shop" Republic" Tommy 8%" 8%" Hilfiger" Club 4%" Monaco" Armani Aritzia" 4%" Exchange" 4%" 4%"
  • 51. RELEVANCE : HIGH TOP FACTOR + PURSUIT 40" 36" 35" 30" 25" 20" 14" 15" 10" 7" 6" 6" 4" 5" 4" 5" 2" 2" 1" 0"
  • 52. RELEVANCE : HIGH TOP DESTINATION FOR “FASHION FIND” 30%" 25%" % of 52 respondents! 20%" POTENTIAL SKEW FROM PRIMING 15%" 10%" 5%" 0%"
  • 53. RELEVANCE : HIGH TOP DESTINATION FOR “DRESS TO IMPRESS” 30%" 25%" % of 52 respondents! 20%" POTENTIAL SKEW FROM PRIMING 15%" 10%" 5%" 0%"
  • 54. ESTEEM : HIGH VALENCE OF ASSOCIATIONS Fuctional" Positive" 30%" 34%" Neutral" 29%" Negative" 7%"
  • 55. KNOWLEDGE : MED-LOW Low quality" Popular" Sales" 1%" COUNT 1%" 1%" Casual" Other" 1%" Multifunctional" 15%" High-end" 1%" Functional items" 1%" 15%" Bold" Conformist" 1%" 1%" Arrogant" 1%" Clothing" Fitting" 10%" 1%" Comparisons to other brands" Mid-range" 1%" 2%" Big" Stylish" 2%" Attractive" 7%" 2%" Professional" 2%" Foreign" Distribution Clothing details" 6%" channel" 2%" 2%" Basic" 2%" Retail Branding" Trendy" 3%" 4%" Good value" 4%" Expensive" Classy" 3%" 3%" Retail environment" Good quality" 4%" 4%"
  • 57. OVERALL B SCORE
  • 58. ISSUE 1 STRONG ASSOCIATION WITH FUNCTIONAL ITEMS •  Clear marketing message! •  Up-to-date style for sophisticated individuals •  Explicit themes with clear wording •  i.e. “fashionable basics for everyday” •  Show campaign videos in-store •  International marketing campaign
  • 59. ISSUE 2 “TRENDY” ASSOCIATION IS WEAK • Emphasize and promote fast fashion model:! • Highlight new arrivals • Reinforce limited quantities -> often on racks for less than a month • Showcase new trends explicitly • i.e. “Get this look” • High-profile models
  • 60. ISSUE 3 MISALIGNMENT IN PERCEIVED QUALITY WITH ACTUAL QUALITY •  Increase Quality! •  Relocate back to original factory •  Trace quality issues to find root problem •  Decrease Expectations •  Alter pricing strategy
  • 61. ISSUE 4 PRODUCT VALUE UNCLEAR • Expensive – Lack of Perceived Value! • Linked with Previous Issue
  • 62. CONCLUSION INTENDED BRAND MEANING VS. ACTUAL BRAND MEANING RECOMMENDATIONS STRENGTHS
  • 64. INCOME DISTRIBUTION OF RESPONDENTS 40%" 35%" % out of 52 respondents! 30%" 25%" 20%" 15%" 10%" 5%" 0%" <$20k" $20-40k" $40-60k" $60-80k" $80k+" --" Primary" 37%" 13%" 20%" 8%" 17%" 6%"