MARKETING MIX AND THE BRAND IMAGE OF ZARA

Marketing Mix And The Brand Image Of Zara

Abstract

Purpose: Research on the internationalisation of retailing has been mainly focused on market entry issues. This paper attempts to examine the internationalisation process from a branding perspective using Spanish fashion retailer Zara as a case.

Methodology/Approach

An in-depth case approach was adopted based on extensive secondary research, which include literature published in English and Spanish as well as company internal documents.

Findings: The internationalisation of Zara seems to follow the classic “stage model” by firstly entering geographically or culturally close markets before taking opportunities in more distant markets. This global expansion was triggered by both push and pull factors. Compared with the competition, Zara has three distinctions: a) vertical integration to achieve a faster turnaround time; b) using franchise and joint ventures for rapid expansion; c) using store as the main tool for promotion with little spend on advertising. In terms of branding, the firm gives no information about its country of origin, instead aims to make the consumer to believe Zara as a local brand.

Research limitations/ implications: The main drawback in case studies is that of limited validity and representative ness that constrain the potential for making generalisations. However, this case is deemed sufficient to provide valuable insights and improve the understanding in this area.

Originality/value: Little attention has been devoted to the internationalisation process from the branding perspective. Aiming to fill in this gap in the literature this study provides important insights into Zara's internationalisation process.

Table of Contents

ABSTRACT1

TABLE OF CONTENTS2

INTRODUCTION2

The global textile and clothing industry3

ZARA: THE BACKGROUND4

The Zara Concept5

Internationalisation Of Zara8

MOTIVATIONS FOR INTERNATIONALISATION9

MARKET SELECTION12

Aggressive expansion (1997-2004)13

MARKET ENTRY STRATEGIES13

Own subsidiaries14

Joint ventures14

Franchising15

INTERNATIONAL MARKETING STRATEGIES18

BRANDING CONSIDERATIONS20

Country-Of-Origin Effect21

ZARA´S MAIN COMPETITORS22

H&M22

Gap Inc25

Comparisons between Zara and its competitors26

CONCLUSIONS28

REFERENCES30

Marketing Mix And The Brand Image Of Zara

Introduction

Despite the increased volume of research on the internationalization of retailing since the end of the 1980s, attention has been devoted to the internationalization process from the branding perspective. As Brown and Burt (1992) stated, “one view of internationalization is that based on the transfer of a retail brand, with its associated image for consumers across national borders”. Alexander (1997) added that “the image has become an important tool in the internationalization of a retailer”. Therefore this paper seeks to address this gap in the literature by examining the internationalization process of the Spanish fashion retailer Zara. This study adopts an in-depth case approach based on extensive secondary research. Literatures published in both English and Spanish have been reviewed, including company documents such as annual reports. The paper is organised into four parts. It begins with a brief overview of the global textile and clothing industry. This is followed by the case study of Zara. The main part of the case examines the key aspects in the internationalisation of Zara, namely: motivations for internationalisation, market selection, entry strategies, and international marketing strategies. In the final section, two of Zara's main competitors H&M and Gap are also discussed and comparison with Zara made. (Cronin 2003 36)

The global textile and clothing industry

The removal ...