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P1: Explore the principles of branding used by a selected large business

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P1: Explore the principles of branding used by a selected large business

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Zara was started by Amancio Ortega in 1975 they specialize in fast fashion and sells products such as clothing, accessories, shoes, swimwear, beauty, and perfumes. It belongs to Inditex, one of the world’s largest distribution groups.

Zara is a Multi-national company which has stores globally , Spain is the biggest market with 547 stores. Zara's target market includes women and men, mainly younger adults in the age range of 18 to 40.

Zara builds brand awareness using a strategy that relies on brand visibility and social media engagement rather than conventional advertising. This strategy has set Zara apart in the fast fashion market, helping it remain popular and on trend consumers.

Zara has unique aspects of its offerings, from rapidly updated collections to affordable trendiness. This shadows Zara from competitors and appeals directly to its target market of trend-conscious consumers looking for both style and accessibility.

They prioritize efficient purchasing process to encourage conversions both online and in-store. From digital shopping to in-store, Zara has invested in creating a seamless purchasing experience. Zara has an engaging experience for new customers that introduces them to the brand’s value and offerings. Through recommendations and targeted promotions, which enhances the shopping experience, building strong customer relationships from the start.

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P2: Explain how brands can be an asset to a selected large business:

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P2: Explain how brands can be an asset to a selected large business:

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Zara has a market capitalization of around $73.7 billion as of 2020, they operate 2,007 stores across 96 countries, generating around 70% of Inditex Group’s total sales. In 2022 the brand reported a great global revenue of approximately €27.7 billion, showcasing its formidable market presence and brand value worth nearly $13 billion.

Zara builds brand awareness, creates a positive image, and has strong customer relationships by providing trendy clothing at reasonable prices. The CBBE model including performance, judgments and feelings.

Zara has a customer-based brand equity model starting at the top of the pyramid model is resonance which then goes onto judgments and feelings and then onto performance and imagery and lastly to salience.

Zara has loyal customers through constant purchases and great online customer reviews, it is a well-known brand and holds a great margin in the market, Zara have good quality in products for comfort etc. Zara sells fashionable and presentable items and has social approval. They have eye catching window displays and a depth of awareness. They have modern and intend items that they sell which shows their brand imagery.

Zara’s Trade secrets and their protection is one of the most significant IP strategies, its extents form its streamlined supply chain to its high-tech distribution systems thye have confidentiality agreements and internal protections prevent competitors from copying Zara’s highly efficient production model, which is one of its most valuable assets. This allows Zara to get on trends faster than any other brand, often bringing new products to stores before competitors even notice.

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M1: Analyse the advantages and disadvantages of branding to a selected

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M1: Analyse the advantages and disadvantages of branding to a selected

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Zara makes the brand experience meaningful and the exchange valuable, they have the potential of its customers to evangelize the brand. Rather than push marketing out, Zara pulls customers in, sees them as brand influencers to improve operations, services and products and stimulates them to spread the word.

Zara has advantages with its 4Es approach to marketing by focusing on experience, exchange, evangelism and every place strategy for the customer instead of the old product, price, promotion and place concept focused on the brand.

Zara’s “The Jacket” campaign in December 2023 had a huge backlash due to imagery perceived as resembling the ‘Israel–Gaza conflict,’ leading to accusations of insensitivity. It was set against rubble and broken cardboard, the imagery, ‘’featuring Kristen McMenemy and promoting six new jackets, sparked widespread protest for its controversial elements. The cracked stones, damaged statues, and broken plasterboard drew critical attention, with some viewers noting that the dust on the plywood boards resembled the map of Palestine. ’The campaign resonated with the tragic loss of over 17,000 Palestinians, mostly children, in Israeli aerial attacks since October 8, 2023, intensifying the backlash. Despite prompt retraction and apologies, the incident underscored the imperative for war sensitivity in global marketing.

Zara's marketing strategy revolves around a modern approach to fashion, with a keen focus on the younger audience, this is reflected in Zara's advertising. Understanding the need for trendy and affordable fashion, Zara delivers the latest styles at competitive prices.

Zara’s online sales statistics indicate that Zara has more than £7.4 billion from ecommerce in 2022. By comparison, it had £5.2 billion in 2021.

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D1: Evaluate the impact of branding on a selected large business

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D1: Evaluate the impact of branding on a selected large business

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Zara’s brand strategy should have the theory of an innovating fashion brand to consolidate its market position and flong-term customer loyalty. It would benefit them to create a more modern brand image through sustainable and digital engagement.

The Jacket” campaign in December 2023 had a huge backlash due to imagery perceived as resembling the ‘Israel–Gaza conflict,’ leading to accusations of insensitivity.