Brand Extension for Zara

1914 Words May 13th, 2013 8 Pages
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
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To evaluate the attitude of consumers towards the brand extension of Zara, product concept consistency and product feature similarity can be adopted. In the research it has been shown that consumers’ attitudes towards Zara Music and Zara Moda are highly affected by the brand concept consistency while consumers’ attitude towards the FFB extension of Zara Sports are more affected by transferability aspect of similarity. Nevertheless, one aspect need to be mentioned, self-image has less influence on consumers’ attitudes towards FFB extension since people buy Zara concerned more about style and design of the product may not consider if the extension brand match their image (Choi, et al, 2010). The most significant factor that influenced customers’ attitudes towards brand extension of Zara is the perceived quality. Another aspect has been indicated by Swaminathan (2003), the degree of loyalty with the parent brand will affect consumer’s buying behaviour towards extended product. Therefore, according to the response of the consumers, in order to achieve a successful brand extension strategy, Zara as a FFB may need to focus more on increasing the brand loyalty and developing the quality of product and service.

Strengths and weaknesses
The awareness of the core brand reduces the advertising and other marketing costs (Jobber, 2007; Keller, 1993). Brand extension of a well known brand can reduce the risk of purchase on some
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