Brand Management
Question 1: Brand Strategy development
Zara company has formed one of the best business models over the past few years. Zara company has a target market that consists of the latest fashion trends. The company benefits from the customers because they do not give a meaning on its target market. This is through segmentation that gives a bigger customer market. The company arranges its products depending on taste and preferences of men and women, plus the adolescent children. The company operates in many countries globally.
Usage- based positioning strategies are applied by Zara on customer centric approach in satisfying the changing needs of the customers all around (D’Arienzo, 2016). The company knows that its customers want updated fashion clothing and based on exclusive designs. The consumers are sensitive on the products they purchase since they want updated trends on the market. Despite this, the pricing should also be fair to them. Zara is positioned as a fashionable based company. Furthermore, it utilizes its factory operations by maximizing their output and leaves some capacity on purpose.
The retail of Zara company works by making and retailing its products on smaller batches. Also, it focuses on serving and developing customers preferences (Tungate, 2012). It has few stores because it selects targeting strategies in making their products available in the market by not depending on external service providers. Zara performs its operations like designing, distribution and logistics. It performs its business on a supply chain and leaving empty shelves allowing timely stock-outs and waives advertising.
Question 2: Brand marketing program design and implementation
Zara does not use advertisements policies in its development since it chooses to grow on a certain level with its revenue by forming many stores. By not advertising its products, it focuses on using the stores by keeping displays as important elements in marketing strategy. As it is located in big locations, it enhances high customer traffics for the store. In addition, it displays on the windows and showcasing its best pieces of the collection and uses powerful communication as a tool made by a special team (Pahl & Mohring, 2009).
Most time is used on creating improved displays to become more visible to attention grabbers. Based on Zara’s ideas, displays on the window often change. This plan explains how workers dress nicely. All the employees are supposed to put on Zara’s clothes. These clothes vary depending on the many places of the stores since it reflects on the location. This explains how Zara focuses on the quantity, market and reflects closely on its customers.
Based on the emerging business trends, Zara has created an online platform. Often, the website is used in many states globally making the stores be available online (D’Arienzo, 2016). As it is a fast fashion retailer, the company is aware of its control on business and how it has developed successfully on its online presence by increasing quality customer experience. Its significant aspect is the profitability in the retail industry and advertising on its stores strategically located globally.
Question 3: Brand equity and sustainability
Zara applies brand extension into its brand growth. It is the flagship brand of the chain. It involves different styles from the clothes to informal kinds, formal clothes, and party dresses which are the key attraction of stores. With all these styles, Zara has managed to launch children’s clothes. Zara can give more products than similar companies. It can design new products and still have finished goods in the stores. It can also change the items in a few weeks.
Shortening the products life creates a great success in meeting customer choices (Beverland, Beverland, Lindgreen & Napoli, 2007). When the design cannot sell, it is removed from the stores and the orders are cancelled as new designs are pursued. A design cannot stay on the store not longer than a month encouraging Zara customers to make continuous visits. The aim of implementing brand extension is to develop the customers image of the brand and increasing communication.
In evaluating the customers attitudes regarding the brand, the notion of the product is applied. The objective of enhancing brand extension on equity values is working. This is by improving the sales and making sure that the image of the brand is communicated to the customers. (Beverland, Beverland, Lindgreen & Napoli, 2007). Zara focuses on the demand of customers and technology helps the company get a quick reply to those consumers changing their demands. The perspective of a customer on brand extension is enhanced by perceived fit, brand associations and brand loyalty.
Question 4: Recommendations for brand equity enhancement
In enhancing brand equity in Zara company, quality products and services ought to be delivered often. This is the most significant part of the brand (Tungate, 2012). It is important that the products are improved and trendy in Zara’s company to the customers hence, repeat of purchases and good worth. Powerful brands bring more advantages by positively developing vital point differentiation in the market. Releasing into the market a product that does not align with expectations of customers can destroy brand equity.
Also, competitive analysis ought to be recommended in enhancing brand equity. A good brand can work in any changes (Hoffmann & Coste-Manière, 2012). Such a brand, trends and increases customers and enhances competition in the market. A great way of building brand equity is targeting a niche by meeting the demands of customers hence satisfying their needs. Through this, it brings out an understanding of the customers with the brand equity.
Having a consistent brand image develops brand equity. Through the knowledge of the market and the surrounding, communicating information to customers is significant. Products and pricing are vital just like other aspects in the business. Refinement starts from the name of the brand and straplines to social media where every sector of the business has contact to the customers. Establishing the brand image from the beginning is important hence enhancing brand equity.
Also, listening to customers is important (Kapferer, 2012). Customers enhance the development of a brand. Through good communication, by asking customers questions on their services and products, it develops good relationship. This further, makes it easier for customers to give feedback on the brand. Thereby, the strengths and weaknesses will be understood and positive image will be created. In achieving this, the brand will improve and growth will be indicated.
References
Beverland, M., Beverland, M., Lindgreen, A., & Napoli, J. (2007). Journal of business and industrial marketing. Bradford: Emerald Insight.
D’Arienzo, W. (2016). Brand management strategies. [Place of publication not identified]: Fairchild Books.
Hoffmann, J., & Coste-Manière, I. (2012). Luxury strategy in action. Basingstoke: Palgrave Macmillan.
Kapferer, J. (2012). The new strategic brand management. London: Kogan Page.
Pahl, N., & Mohring, W. (2009). Successful Business Models in the Fashion Retail Industry. München: GRIN Verlag GmbH.
Tungate, M. (2012). Branded Beauty. [Place of publication not identified]: Kogan Page Publishers.