how developing a positive brand equity influences brand image and growth of Zara in the UK

how developing a positive brand equity influences brand image and growth of Zara in the UK

Introduction

The fashion retail business has changed over the years because of the expansion of the international market. This implies that fashion retailers have acquired a competitive power in the market. The fashion businesses are finding it is difficult to compete on price alone due to the fierce competition (Varley and Rafiq, 2014). Fashion retailer like Zara has adopted fast fashion marketing as a way of responding to increased competition and low priced products. Zara is a fashion retailer that was founded in Spain in 1975. The fashion retailer has not only positioned its brand as fashionable, but also has a unique business model that making it one of the most successful fashion retailers in the world. Zara operates more than 500 stores worldwide (Bowden, 2016). The different dimensions of the retailers setting like color may significantly influence the consumers’ perception of the retailer. Fashion retailers will have to raise not only to tighter economic conditions but also to the changing consumer trends as well as shift to the fashion system. Moreover, fashion merchandiser is customer-oriented, which means that it matters how they present to their customers. This essay purpose to discuss how developing a positive brand equity influences brand image and growth of Zara in the UK.

Discussion

Name Awareness

According to Aaker (1991), brand awareness is the ability of customers to recall a brand in a particular category. Tangible properties of branding, like the name of the brand and logo, contribute to consumers’ awareness of a brand. Creating brand awareness is always the first move in the process of building the brand, and it is a fundamental aspect of brand equity. Aaker (2002), stated that brand awareness is the perception consumers have in their minds regarding a particular brand. For instance, the brand logo of Zara has black color to symbolize elegance, excellence, and style with a decent general design. Hierarchically, brand awareness is the primary dimension of brand equity. Zara has been referred to as a top fast–fashion globally (Tokatli, 2007), and as a result, it has attained a high brand awareness. With the expansion of online marketing, Zara has developed its website to be more appealing and attractive to their customer. This one way in which the retailer attracts customers to like their products.

Fashion retailer business has to create brand awareness to succeed, which means identifying the trend in the market and adjusting to the consumers’ preference. In all its stores in the UK, Zara displays its name prominently at each retail store. The simplicity of its brand name and logo makes to making it more memorable among customers (Wood, 2016). The approach to brand awareness helps to create brand equity by creating a strong perception of the brand. People are more likely to buy familiar brands because they are comfortable with them. Therefore, a recognized brand will often be selected over unfamiliar brands. Research by Lea-Greenwood (1998) identified visual marketing, as a tool of communication of brand identity in the fashion industry, plays a significant role in the success of an organization.

Perceived Brand Quality

Brand quality is the perception of the relative quality of a particular brand. Hierarchically,   brand quality is considered constructed that proceeds brand awareness. According to Davies (1992), the retailer must guarantee their customers that they will receive unique quality. Zara considers quality as one of its primary values and an essential positioning dimension. According to Danzige (2018), Zara has a strategy to be associated with high quality and affordable fashion brand compared to its competitors. Having a high perceived quality and affordable quality has positively impacted Zara and enhancing its growth in the international retail market, especially among the youth (Goody, 2016). When the perceived quality of a brand is improved, the other elements of customers’ perception of the brand also improves and hence enhancing brand growth.

In most cases, customers tend to assess a particular brand with other similar brands on the aspect of various qualitative and quantitative parameters. The demographic and lifestyle of the customers have been noted to be determinants of brand quality (Sinha and Uniyal, 2005). However, creating a perception of quality may differ from the quality of the brand. Providing quality products is only a partial victory since perception must be created. From the beginning, Zara created a competitive advantage by keeping pace with the latest fashion trends combined with high quality and affordable fashion ware (Marci, 2019). It is through this strategy that the retailer has been able to beat competitors and become one of the most preferred brand in the UK (Inditex, 2019). In some cases, the retailer may attain quality on a dimension that consumers do not consider relevant, or they may fail to notice (McGoldrick and Collins, 2007). Therefore, it is necessary to ensure that investment in quality is made on areas that will resonate with the consumers.

Brand Association

The third dimension in the hierarchy is a brand association that refers to anything that connects the customer to the brand, including imagery, which makes the brand unique. People are likely to associate with a particular brand on account of the quality acquired. Aaker (1991) argued that a brand manager is interested in those associations that affect buying behavior either directly or indirectly. Moreover, the brand association is an existing base for purchase decisions as well as brand loyalty (Beatty and Ferrell, 1998). For example, Zara is known by customers for efficient retail stores and fast supply of trendy fashion. Additional, the retailer’s website has made the customers associate the brand with sustainability, which positively impacts the growth of the brand (Patel, 2019). According to Supphellan (2000), the association helps customers to retrieve information giving them a reason to make a purchase decision.

The strength of the brand association is determined by how consumers receive information. Knowing which elements to consider in marketing, a brand manager would help to create an improved customer satisfaction (Finnand Louviere, 1996). Zara has gained a deep understanding of the full value proposition it exchanges with the customers. The customers have been able to associate the retailer with being able to deliver fast-fashion products in the right quantity, format, and time as requested. In the UK, Zara is famous for how fast it designs and provides clothing required by their customers (Sender, 2019). The underlying value of a brand name is often based upon a particular association attached to it. Burt (2010) indicated that there is a need for the retailer to focus on value and attitude information to be more competitive. Consumers mostly choose to purchase a fashion product because they associate it with a particular lifestyle (WGSN Insider, 2017). When they feel that the brand matches the lifestyle they desire, it increases their chances of purchasing the products.

Conclusion

This essay reveals that brand awareness, loyalty, and perceived quality have a significant impact on brand equity. According to the analysis, Zara has been successful in offering quality products. Zara ensures that the design of their products are flexible and change regularly to match with the changing tastes and preferences. As regards awareness, Zara has strategically located its retail stores throughout the UK in strategic locations such as shopping malls. Once a brand identifies the benefit of brand equity, they can follow the strategy to create and manage the potential benefit. Finally, brand equity is a significant factor in marketing strategy in the sense that the brand is an asset that may drive Zara’s performance over time. The three dimensions play a vital role in helping Zara become an international fashion retailer. The concept of brand equity does not only strategically aid the generation of short-term sales but also the creation of long-term value for the retailer. To maintain its reputation as a reliable and successful retailer, Zara must continue to connect with the customers’ emotions. Although it is difficult to measure brand equity, retail businesses must have an understanding of it.

This paper suggests brand quality as the single most effective way of increasing brand equity. To the consumers, it is the role of the retailer to provide quality products. Over the years, perceived brand quality has been a crucial business thrust and maybe motivational for programs designed to enhance brand equity. With the introduction of online marketing, providing quality products is one of the best ways to gain availability online (Stocker et al. 2018). Moreover, perceived brand quality is a form of marketing strategy that would promote the retailer business and create an online recognition. Providing quality products is vital in today’s fashion retail market to ensure the success of any marketing strategy. For Zara to remain productive and maintain its strategic advantage in the international retail business, they have to focus more on perceived quality. In most cases, consumers are likely to choose a brand that is generally perceived as high quality. When consumers develop a perception of quality towards the brand, they are also likely to develop a preference since they know the products are different from other retailers.

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