INTRODUCTION

EXECUTIVE SUMMARY

Established in 1956, Old Chang Kee (OCK) has successfully reputed itself as the market leader of Singapore’s local snack business. Curry Puff being its signature dish is a favourite among the locals and the tourists. Old Chang Kee Company has followed the strategy of cost leadership strategy to conquer the ever growing and highly competitive Food & Beverage industry of Singapore. The availability of OCK products is very high with an affordable range which directly expands its customer base.This document further analyses the Brand Awareness of ZARA, to compare the brand inventory and exploratory in order to measure the company’s Brand Equity. To help us understand the Brand Awareness, Image, Judgement and other elements of the Customer Based Brand Equity model we used qualitative as well as quantitative data from 55 online survey respondents and 6 direct interviews. The results of our research place ZARA as the leader amongst its competitors in terms of Brand Awareness but the level of Brand Resonance is visibly low.From the above analysis, we have formulated certain Branding strategies, which would help the company to increase its Brand Loyalty with customers. Training and restructuring the Organizational model may also result in building a better Brand Image. The Points of Parity (POP) and the Points of Difference (POD) listed .

VISIONTo provide superior quality local snacks and ready-to-eat meals at an affordable pricing, in customer oriented, friendly retail environment.MISSIONStandardised cooking and food processing, in high-tech hygienic environment.Satisfy the taste buds of ethnically diversified customers of Singapore Fast and efficient service to serve the people on the go.

SWOT ANALYSIS

BRAND INVENTORYHistoryZara is a flagship brand of the Spanish retail group, Inditex group. Inditex is the world's largest fashion group, which owns other fashion brands such as Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Lefties and Uterqüe. It was founded in 1975 by Amancio Ortega, when he decided to expand his factory in Arteixo by opening a store in La Coruña. Zara has expanded since and currently operates a total of 1,671 stores in continents such as Europe, America, Africa, Asia and Oceania, of which 333 of them are in Spain.In the BeginningFounded by Amancio Ortega in 1975, Zara opened its first store in downtown La Coruña, Galicia, Spain. Its first store carried low-priced lookalike products of popular, higher-end fashion brands. The store proved to be a success in the early 1980s, and Ortega began opening more Zara stores throughout Spain.

Global ExpansionIt was only in 1988, Zara decided to venture into the international market. This was spurred by Portuguese youths crossing the border into Spain to shop in Zara. Hence, Zara responded by opening its first store in Oporto, Portugal. The expansion strategy proved to be a success. Subsequently, new stores popped up in New York (1989) and Paris (1990), the fashion capitals of the world. Since then, more stores have opened globally to a standing of 1,671 stores. Zara Company has become an icon for Spanish fashion.

FinancialsThe Inditex group currently boasts revenue of 13.79 billion euros (2012), with profits standing strong at 1.932 billion euros (2012

OWNERSHIP IN INDIA

In accordance with Indian regulations on foreign direct investment (FDI), the Spanish fast-fashion retailer partnered with the Tata Group, India, to form a joint venture in February 2009. Inditex owns fifty one percent of this partnership while Tata’s subsidiary Trent Limited holds forty nine percent Due to various challenges the company faces, store expansion will remain slow, with only one further store op Zara is the second Spanish Retailer to enter India, after Mango. Although Mango expanded in India, by the franchise route. Ending planned for 2010.

Communication pricing and distributionBUSINESS STRATEGIES

Competitive Advantage: Market-oriented StrategyMost of Zara's designs are based on the latest trends and they are ever changing according to the immediate feedback from customers. Zara employs its service staff in listening to customers' preferences and reacts very quickly to them. It is only a matter of weeks before the designs get altered, manufactured and restocked in the stores. If a design is largely unpopular, Zara will not hesitate to withdraw them from the shelves. Its global establishment also provides an extensive network of shopper-feedback which allows them to be ahead of competitors in spotting global fashion trends.

Product: Fast Moving FashionZara prides itself on fast moving fashion with new designs restocked in limited quantity every two weeks. This encourages consumers to frequent the stores for new designs and to snap up interesting outfits on the spot in order to guarantee themselves a piece. This provides a sense of exclusivity to shoppers.

Process: Industry leader in lead timeCreative teams consisting of designers, sourcing specialist and product development personnel, develop design collections. The teams work simultaneously on different clothing, building and improving on styles previously available. Zara’s designers are trained to limit the number of changes made by lowering the number of samples required, minimizing cost and turnover time. Its demand based production or Just-in-time (JIT) production reduces the amount of inventory available, lowering Zara’s storage cost. Zara's outstanding lead time is unbeatable in the industry at the moment. Furthermore, Zara eliminated the traditional design process, where design and development overrides fabric procurement. In Zara, the design teams work with the available fabric, allowing for faster fashion.

ZARA Touch PointsTestimonials or the word of mouth is the most trusted and the most powerful branding tool for any brand.. ZARA implements word of mouth, advertising, maintains official website, OFFER VARIOUS OFFERS,SALES PROMOTION etc. to communicate and attract customers.

The main concerns that Zara had wile entering into the Indian market were Demography and cultural concerns. Speaking of demography India has a population of about 1.2 billion people and the target market would be no doubt wide than what is expected. As the income become larger in India, there will be more demand in the quality and fashionable clothing. Cultural Concerns: it is the major concern that has to be given tremendous attention when entering into a foreign market. It must accept the perspectives and beliefs of the role of culture in influence and as in India social security is given special attention.In order to effectively achieve their goals, Zara pursued a strategy of selling a variety of its local clothing lines and international clothing lines, but maintaining Zara as the primary brand in India. Zara also targeted the larger positions including either the first or second positions in the Indian market of clothing lines. Any of these positions would be sufficient enough for Zara to create an outstanding level with regards to manufacturing, marketing and distribution. These positions can set up a stage from which Zara can sell their clothing lines and other special fashion products.To promote the organization and its clothing lines, Zara utilized video advertisements, print ads and the idea of e-marketing which fulfilled the varying needs of consumers from India and beyond; particularly those priority Indian markets or the consumers in the urban India areas. For this promotion campaign, the perfect information that Zara Company utilizes is “Providing quality and fashionable clothing lines that fulfills your needs. Zara has been able to set up its reputation as one of Spain's primary clothing line companies for several years now. It is able to rise up to the challenges in most of its markets directly (year ‘99). This is made possible through the efficient promotional and positional strategies established in order to maintain not only large profits, but also on establishing the foundations of Zara’s clothes and fashion trends. The promotional strategies of Zara in India are easily implemented by the local employees themselves which enables the organization to vastly improve without the burden of implementing costly technologies. These initiatives can also lead in improved financial profit for the organization and will enable the foundation of distribution networks for Zara clothing lines in India.

Zara has maintained a reputation for targeting the teenagers, those in their twenties and even the individuals considered young at heart. This is a customer sector that other clothing companies have previously ignored in place of the adult consumers. Zara Company also has the unique strategy of portraying the generations in their campaigns. These campaigns in India will tell that Zara Company is not a mere simple clothing line for the next generation; its users are also a generation ahead of their competitors. Zara Company can establish an image for itself in India as the clothing line for the present generation. It has discovered that the purchasing power of the

youth and the marketing power of celebrities were similar (1998). They have garnered significant profit gains out of this strategy, and there is no reason why this won’t also work in India.

Price: Low cost, High FashionZara believes in offering high fashion at a low cost. Prices range from $79.90 to $539.00 for both Womenswear and Menswear while the Kids segment has coats starting from $65.00 and these prices can start from $30 during a sale. Taking quality and cost into account, Zara prides itself in providing high fashion at an affordable cost, making its customers’ purchases value-worthy.

Place: Prime retail locationsZara, like its competitor brands, is located in prime retail areas like Ion Orchard, Orchard Road, 313@Somerset where human traffic is high. As aforementioned, Zara invests in prime locations as they place great emphasis on the presentation of its storefronts. Zara also has an online store, which increases accessibility to its customers, allowing them to make purchases conveniently on the go. However, this function is currently not available to Singaporean customers.

Selective Distribution: 4 Departmental Stores,8 Retail Outlets, both town and neighbourhoodExclusive Distribution:2 Retail Outlets, only in townWebsite Jesus Echevarria Hernandez, Chief Communication Officer at Inditex Group. Says that “The entry in the Indian market has a significant strategic importance for Inditex. India is one of the top priorities in the Asia region when our retail offering has been very well received,” it took up joint ventures in India because this is a co-operative strategy in which the manufacturing facilities and know-how of the local company are combined with the expertise of the foreign firm in the market, especially in large, competitive markets where it is difficult to acquire property to set up retail outlets or where there are other kinds of obstacles that require co-operation with a local company that Zara regards its stores as one of the relevant factors in its business model. The shop is regarded as the interface between the customer and the engine of the entire business - fashion design, manufacturing, logistics and ultimately, retail.To enter the market in India, Inditex (the company behind Zara) used the strategy of pursuing a joint venture with Trent Limited, a Tata Group company, a highly recognized clothing line distributor. Inditex controls 51 per cent of the joint venture, while Trent Limited owns 49 per cent.

Promotion: Minimum advertisingZara uses 0.3% of sales revenue on advertising, minimal when compared to its competitors (3-4% of sales revenue). Instead of relying on traditional mass-

marketing mediums, Zara uses prime retail locations to attract its customers. It also ensures that storefronts and window displays are attractive and fresh to customers by making frequent changes to the items on display. The interior of the store is also clean and bright, with spacious lanes in between racks. This provides a very comfortable shopping experience. Having a good image projection of the store is vital as this is Zara's most effective marketing communications tool. When customers walk into a store, Zara wants to portray to customers that the latest fashion is always available.Store location as marketing strategy

FacebookPrint advertisementCelebrities Endorsement (e.g. Penelope Cruz)Manifolding shows with designers(write in communication)Website FacebookPrint advertisementCollaboration with renowned designers (e.g. Stella McCartney, Karl Lagerfield)

BRAND IDENTITY

Zara is the world’s largest fashion retailer in the world today because of its widely known process innovation. Fast fashion, creativity, flexibility, quality design and rapid turnaround are all part of its approach to expand internationally at such a fast pace.Zara stores are usually situated at upscale locations in the world’s largest cities. Its strategy is to get as close as possible to luxury brands but at the same time maintain its mid-range affordable prices. Although the apparel may be relatively less expensive compared to designer goods, Zara has never forsaken the quality and comfort of its completed products.On top of its operations excellence and good quality designs, Zara’s approach to design is also closely linked to their customers. Its customers, who help to give shape to the ideas and ever-changing demands emerging in the fashion industry, direct Zara’s strategic fast fashion. The relationship with its customers is an important channel of information that reflects shoppers’ reactions, desires and demands – its secret to success lies in feedback given from a wide range of people from different cultures and generations.

Brand ExploratoryCustomer knowledge: write about 200-300 words Customers see ZARA able to fulfil their up to date in fashion. This material,style warmth feeling which is experiential and immediate after consuming ZARA’s product. Highest praises are on ZAra’s accessibility. Likewise, almost half of respondent won’t refuse invitation to buy ZARA. Hence, ZARA created social approval feeling that fabric more private and enduring.

PERCEPTUAL MAP

COMPETITOR ANALYSIS(Threats)

Male, Female, KidsFast Fashion (up-to-the minute trending wear produced in weeks)Designer style at non-designer prices

Male, FemaleTrendy and practical wear~70% Basic and ~30% DressyMale, Female, KidsUrban casual wearFashionable and practical designs

Mass-tige(Luxury for the mass)Mass-tige(Luxury for the mass)Value-for-moneyExclusive Distribution:7 Retail Outlets, only in town

celebrity endorsement)Consistent black and white theme

Sources of brand equity

Customer bases brand equity model(CBBE)

Zara has moderate to high brand awareness in the Singapore market despite its low advertising policy. This is probably due to its long presence in the retail scene and the choice of strategic store locations in areas with high human traffic.

Zara’s brand name and eye-catching window displays are the key factors in building awareness in consumers’ minds. Both recall and recognition measures are high which goes to shows that Zara has high salience in customers’ minds.

In terms of depth of awareness, Zara performs well as it is the top of mind recall when respondents were asked to name fashion retail outlets. However, competitors’ brands, such as Mango and H&M, were also named, indicating the close associations between these brands in customers’ minds.

In terms of breadth of awareness, Zara has high category membership in sophisticated and trendy wear. If one were to list brands of affordable svelte luxury in Singapore, Zara would definitely be one of the top few brands listed. Although it has a casual and basic fashion line, named TRF, it is not pervasive in customers’ minds.

SalienceIndicator of Brand AwarenessReliability & Durability - Zara prides itself on its quality, stemming from deliberate decision to avoid mass production.

Style & Design – Zara offers customers the latest and most fashionable products as their sales clerks and designers are tasked to be attentive to market trends. As such, Zara churns out these market-driven styles that greatly appeal to its target market. Its fast-fashion concept keeps consumers coming back for new stylish and fashionable designs in order to remain fashion-forward.

Service Effectiveness - Zara does not focus its resources on in-store services. However, it does have a well-received exchange policy where customers are able to get back full refunds for purchased products that they deem unsatisfactory, in accordance to Zara’s Refund Policy.

Price – In Singapore, Zara is known for its mid-ranged priced products. It is able to achieve ‘High fashion at a Low cost’ through its minimal advertising expenditure, which translates to cost savings for its customers. Thus, value-seeking customers can obtain the latest season clothes at affordable prices. PerformanceMeeting of Customers' Functional NeedsImageryMeeting of customers' psychological and social needsUser Profile – A typical Zara customer is one who is young, fashion-conscious and value-seeking. He or she is keenly attuned to fashion trends and seeks for high fashion with a reasonable price tag. They also portray a sense of sophistication, confidence and impressiveness.

Purchase situations – In Singapore, shopping is a national pastime, for men and women alike. Shopping for apparels occur seven days a week, at every given opportunity, however it peaks on weekends when people have relatively more spare time.

Personality and values – Values associated with Zara include ‘modern’, ‘trendy’, ‘high fashion’ and ‘sharp’. Zara exudes a refined and stylish personality that appeals to its assertive and confident target audience.BRAND EQUITY

Two methods are used to measure brand equity: blind test and survey and interview result. Prior blind test was conducted to 2 ZARA’s customers. By providing ZARA’s PERMIUM jeans without mentioning brand, customers were asked to feel the product. Both customers feelthe cloth material is good and said it has to be ZARA’s premium jeans . The fabric , shape were said to be the distinguishers. Hence, ZARA has good brand equity.

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POINTS OF PARITY

POINTS OF DIFFERENCE(MAKe table of pod/pop)

Understanding and delivering customers’ needsMost fashion companies are proud of their fast forward fashion where they attempt to predict the next season’s trends via fashion shows or similar channels of influence. Zara, on the other hand, focuses its attention on understanding the fashion items favoured by its consumers and delivers designs according to consumers’ wants and needs. Store managers are trained to obtain such valuable information through informal conversations with customers. These valuable feedback are then passed on back to the creative teams.

ExclusivityZara creates the sense of exclusivity in its apparels through minimal production for each style. This creates scarcity and hence desirability especially in the fashion industry. Furthermore, this lowers the risk of uncleared stocks that may have to be sold with a discount. As a result of the strategy used by Zara, there is not much to be disposed of when the season ends, evident in the slight discount of 18% during sales period as opposed to the industry average of 36%. This heightens the value of Zara’s goods in the consumer’s eyes, creating intangible value for Zara’s items. Zara has also effectively conveyed to its customers the scarcity in its stocks. Hence resulting in higher shoppers’ desirability, so if a customer likes something, he/she has to buy the item fast as it may not be available the following week. Zara has been successful in creating a climate of scarcity and opportunity.High Velocity fashionProduction takes place in small batches, with vertical integration into the manufacture of the most time-sensitive items. Products are shipped directly from Zara’s central distribution centre to well-located and attractive stores twice a week thereby eliminating the need for warehouses and keeping inventories low. Even more importantly, Zara is able to originate a design and have finished goods in stores within two to four weeks in the case of entirely new designs, and two weeks for modifications (or restocking) of existing products.In contrast, the traditional industry model might involve cycles of up to six months for design and three months for manufacturing. With a closely knitted supply chain, it is no surprise that Zara stores changes its display twice a month, giving customers a pleasant surprise each time they walk past or step into the stores. This gives consumers a

reason to visit stores often and purchase the items as soon as they see it because the items may not be there the next time they visit the store.

RECOMMENDATIONS

Conclusion

In India, its clothing retail expenditure is forecast to grow at a faster rate than neighboring China with a CAGR of 6.7% in the period 2009-13, compared to China’s 5.3%, according to Verdict’s Global Retail Database.Zara success is as much a result of its history and location a sit counter intuitive business strategies. While it may not be possible for another company to exactly duplicate the conditions under which Zara grew and flourished, we can certainly try and learn from its experience, its processes and its business structures. The Asian market is huge and hungry.It seems that Zara could be leading those that feed it.

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I am writing a format hereFirst main headingBrand Inventory]History’OwnershipProduct Related AttributesBrand PortfolioCommunication, Pricing and Distribution

Second Main Heading Brand ExploratoryCustomer KnowledgeMental MapBrand MantraSources of Brand EquityThreats to brand equity

CBBE ModelRecommendations