Brand Extension for Zara
Introduction
Brand extensions are one of the most popular strategies for many firms to leverage brand equity (Monga & John, 2010; Tom, Kelly & Ravi, 2012). Zara as one of the world’s most successful fast fashion brand (FFB) retailers has applied brand extension into its brand development. The purpose of this report is to examine the brand extensions strategy of Zara which include these areas: the marketing objectives of brand extension, the relationship between competitive advantage of Zara and the brand extension strategy, the model and concept of evaluate customers’ attitude towards FFB extensions to judge whether the company is suitable to adopt brand extension strategy, apply the model into Zara’s three proposed extensions and the strengths and weaknesses of this strategy.
Marketing Objectives
Brand extension can be defined as ‘the use of an established brand name on a new brand within the same broad market or product category’ by Jobber (2007) and as stated by Choi, et al (2010) a typical definition is ‘the use of an established brand name to enter new product categories or classes’. As brand equity contribute to an increase of share value of the intangible assets of the company (Madden, Frank & Susan, 2006). Brand extension is a key tool to enhance brand equity (Susan, Hang & Mary, 2012). Therefore, the objectives of implementing brand extension are enhancing the brand equity value, increasing sales and enhancing the consumers’ image of the brand values by increased communication (Jobber, 2007).
Competitive advantages of Zara
According to the founder of Inditex, Amancio Ortega indicated that the aim of Zara is ’to democratise fashion by offering the latest fashion in medium quality at affordable prices’. The competitive advantages of Zara which differentiate from other competitors are the turnaround time and the feedback information from store (Lopez & Fan, 2009). Zara can finish designing, manufacturing, delivering a new clothing
Brand extensions are one of the most popular strategies for many firms to leverage brand equity (Monga & John, 2010; Tom, Kelly & Ravi, 2012). Zara as one of the world’s most successful fast fashion brand (FFB) retailers has applied brand extension into its brand development. The purpose of this report is to examine the brand extensions strategy of Zara which include these areas: the marketing objectives of brand extension, the relationship between competitive advantage of Zara and the brand extension strategy, the model and concept of evaluate customers’ attitude towards FFB extensions to judge whether the company is suitable to adopt brand extension strategy, apply the model into Zara’s three proposed extensions and the strengths and weaknesses of this strategy.
Marketing Objectives
Brand extension can be defined as ‘the use of an established brand name on a new brand within the same broad market or product category’ by Jobber (2007) and as stated by Choi, et al (2010) a typical definition is ‘the use of an established brand name to enter new product categories or classes’. As brand equity contribute to an increase of share value of the intangible assets of the company (Madden, Frank & Susan, 2006). Brand extension is a key tool to enhance brand equity (Susan, Hang & Mary, 2012). Therefore, the objectives of implementing brand extension are enhancing the brand equity value, increasing sales and enhancing the consumers’ image of the brand values by increased communication (Jobber, 2007).
Competitive advantages of Zara
According to the founder of Inditex, Amancio Ortega indicated that the aim of Zara is ’to democratise fashion by offering the latest fashion in medium quality at affordable prices’. The competitive advantages of Zara which differentiate from other competitors are the turnaround time and the feedback information from store (Lopez & Fan, 2009). Zara can finish designing, manufacturing, delivering a new clothing