The document provides a comprehensive brand audit of Zara, detailing its history, target market, intended and actual brand meanings, strengths, and weaknesses. It highlights Zara's strategy of fast fashion and trends, while addressing the perception gaps between intended and actual quality. The final recommendations suggest enhancing marketing messages and improving product quality to align consumer perceptions with actual offerings.

1. STYLISH

2. CLASSY

3. TRENDY

4. GOOD QUALITY

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

7. BRAND HISTORY

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

11. INTENDED BRAND
MEANING

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

21. ACTUAL BRAND
MEANING

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%"

36. CATEGORY
EXTENSIONS

37. ZARA HOME

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

47. BRAND STRENGTH

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%"

56. FINAL
RECOMMENDATIONS

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

63. THANK YOU

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%"