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TRANSCRIPT
“Contribution of Brand Image and Brand Identity to Gain
Competitive Advantage: A Case study of UK Fashion Brands”
REFLECTIONThe process of carrying out a research and writing a dissertation was an enlightening
journey for me, which has helped me to develop an independent thought. No doubt, the work
was challenging and required me to dedicate a lot of time and commitment. To begin with, I
thought it would be a linear process and effortlessly I would get my job done. But it was quite
a task to balance between my study, part-time work and family commitments. To prioritise on
my dissertation work, I had to dedicate time separately and had to sideline other
commitments.
The toughest task was to conduct the primary research since it was hard to find
fashion brand establishments were willing to talk and to spare time. Through personal
contacts I was able to interview brand managers who gave me a much clearer insight into my
field of study. After approaching nearly a large number of executives, I could extract
information from few respondents. The interview schedule was quite a learning experience
since I had assumed that having ready questions with objective answers would make the task
easy. Adapting the questions to suit each respondent was a key learning point.
While analysing the data findings and comparing it with previous studies, I found that
there were lot of common themes and insights on brand identity, brand image and
competitive advantage. Despite that, I found that my study brought out some interesting
insights into the subject. This project compelled me to find inspiration from various sources,
subsequently building on my imaginative capacity as well as my practical knowledge.
Therefore, I feel I have gained and developed many skills in terms of my own personal
creativity and development.
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The final process of compiling the findings and creating the dissertation was also a
challenge. A lot of information had to be discarded since those points were not exactly
relevant to my research objectives. At times the content was vague, and the ideas did not
always follow logically. To conclude, the dissertation assignment has improved my abilities
in studying and analysing a subject, through producing a lengthy piece of work. I feel it is a
befitting culmination of the academic phase of my life and it motivates me by building the
possibilities of career prospects.
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Abstract
The main purpose of the present study was to inquire into the contribution of brand
image and brand identity for attaining competitive advantage. For the purpose of the same a
case study on fashion industry was taken with a few established and globally recognised
fashion brands existing in London.
The review of literature indicates that one of the sources for attaining competitive
advantage could be the parameters as identified by customer perception model evolved out of
the value-cascade positioning; such as the product characteristics, price, promotional
activities of the fashion firm and reaching the target audience. The reason being they mostly
remain invisible and at times difficult to copy. It is also evident from the data presentation
and analysis that the intangible sources as referred in the literature review can also viewed
through to gain brand image and brand identity and further lead the fashion industries to gain
competitive advantage; they become the most imperative resources.
Though an attempt has been made in the fourth chapter to establish relationship
between brand images and brand identity its lead to attain competitive advantage could not be
explored scientifically, but sufficiently explored with case studies. The case studies were
established fashion brand with global recognition. The collected data supported the
methodology of secondary data source as well as with interviews.
Subsequent analysis of the data has identified a theoretical model that is proposed as
the findings of the present study.
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As a bottom line it is found by the researcher that the brand image and brand identity
leads to competitive advantage.
Table of Contents
Table of Contents
1.0 Introduction 111.1 Introduction 12
1.2 Background of the Study 13
1.3 UK Fashion Industry: An overview 13
1.4 Definition and Importance of Brand and Fashion14
1.4.1 What is Fashion?......................................................................................14
1.5 The Importance of Brand Positioning: 15
1.6 Brand Image and Brand Identity 16
1.7 Problem Statement 17
1.8 Research Questions 17
1.9 Aims and Objectives 17
1.10 Research Structure 18
2.0 Literature Review 192.1 Introduction 19
2.2 UK Fashion Industry 20
2.3 Understanding the customer for Brand Image and Brand Identity 21
2.4 Values-Attitudes-Motives-Behaviour Cascade 22
2.5 Brand Positioning 24
2.6 Summary 28
3.0 Research Methodology 283.1 Research Approach 29
3.2 Qualitative Research30
3.3 Deductive Versus Inductive Research 31
3.4 Case Study: 33
3.4.1 Case Study Selection:...............................................................................33
3.4.2 Case Study Analysis.................................................................................34
3.5 Data Collection 35
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3.5.1 Primary Data.............................................................................................35
3.5.2 Secondary data..........................................................................................36
3.5.3 Data Analysis............................................................................................37
3.6 Validity and Reliability 38
3.7 Justification 39
3.8 Ethics 40
3.9 Summary 40
4.0 Data Findings and Data Analysis 414.1 Data Findings 42
4.1.1 Introduction to Case Studies:....................................................................43
4.1.2 Interview Transcripts................................................................................46
4.1.3 Categorising the Themes..........................................................................50
4.2 Data Analysis54
4.3 Discussion of Sub-themes 55
4.4 Key findings in the light of Research Questions and Literature Review60
4.5 Proposed Model and Summary 62
5.0 Conclusion and Recommendations 655.1 Major Findings 66
5.1.1 Customers’ Perception of Brand Image and Brand Identity:...................66
5.1.2 Gaining Competitive Advantage..............................................................67
5.2 Limitations 68
5.3 Recommendations 69
5.4 Further Research 69
6.0 Appendix 716.1 Appendix-1: Semi-structure Interview Questions 71
6.1.1 Introduction..............................................................................................71
6.1.2 Market Position........................................................................................71
6.1.3 Strengths...................................................................................................72
6.1.4 Brand Development..................................................................................72
6.2 References 73
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List of Figures
Figure 1: Firms Expressing their Brand and Brand Values...............................................14
Figure 2: Brand Image versus Brand Identity....................................................................15
Figure 3: The Values-Behaviour-Cascade.........................................................................21
Figure 4: Employing the Value-Behaviour-Cascade for Brand Positioning......................22
Figure 5: Corporate and Marketing Objectives..................................................................24
Figure 6: Position in Relation to Price and Quality...........................................................26
Figure 7: Logos of selected Case Study Fashion Brands...................................................42
Figure 8: Proposed Model Gaining Competitive Advantage.............................................62
List of Tables
Table 1: Case Study Brands and respective Products........................................................41
Table 2: The Emerging Theme: Customer Perception.......................................................51
Table 3: Categorization of Emerged Themes into Sub-theme...........................................53
Table 4: Sub-theme discussion: Market Entry Strategies..................................................54
Table 5: Sub-theme discussion: Road Mapping and Product Characteristics....................55
Table 6: Sub-theme discussion: Sponsoring Events and Social Responsibility.................56
Table 7: Sub-theme discussion: Internationalisation and Growth through Acquisitions...58
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Chapter-1:
1.0 Introduction
“Fashion fades, only style remains the same. In order to be irreplaceable
one must always be different. The most courageous act is still to think for you!
Aloud”
Coco Channel Quotes
True to what Ralph Lauren says, “I don't design clothes, I design dreams”. The most
important assets of any business are difficult to measure, measure the dreams of their
valuable customers. And to measure the intensity of the dreams, they however have to
measure the knowledge base of their technical staff, the competitive spirit of sales staff, and
most importantly, the awareness and attitude of their clients’ dreams.
Needless to say the resulting association of a firm in the market
place is its brand. Brand reflects the image of a firm, and its ability to
attract new customers. The symbols, tags and the slogans of a firm create
a measurable impact. They not only act to create specific relationship but
also define brand equity. And if the brand’s image and identity is used
strategically it becomes a prime source for the firm to gain competitive
advantage in the market.
- Craig Park
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1.1 Introduction
In today’s fashion industry the heart of strategic management remains with creation of
competitive advantage. And creating competitive advantage remains with the image and
identity of the brand. This becomes important because in UK competition among the fashion
industry has become the most potential predicament, and this is because of the rapid increase
of fashion firms in both size and number at various stages of their existence. Moreover with
the increase of the growing trends identification of quality garments becomes difficult. It is
the brand that could solve this problem as the brand is the true and long lasting asset for any
company.
It is the brand that is well recognized and received by the consumers. Under these
circumstances it becomes important for the fashion firms to gain competitive advantage
through their brand image and brand identity.
In UK the fashion industry is increasing in all directions; size, complexity and
professionalism. ‘The electronic media especially the television and the radio that linked
fashion at a large scale through advertising and sponsorship highlights the brand and the
brand name says, Collins (2000).
Brand image and identity are identified as potential sources of gaining competitive
advantage (Amis, 2003). A customer is always influenced by positive brand reputation.
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The main idea of the present study is to develop theoretical model for the fashion
firms to explain and establish the relationship between Brand Image - Brand Identity -
Competitive Advantage.
1.2 Background of the Study
In UK the fashion market is one among the most competitive and scrappy sector, this
makes the even more fragmented retail stores dealing with the fashion brands to create
considerable influence in the market. Hence, the profile of the fashion brands i.e. the image
and identity, act as the representatives of the fashion industry exploring the dynamics growth
trends and drivers of the fashion market. As such this paper also attempts to provide a
comprehensive picture of the key trends.
1.3 UK Fashion Industry: An overview
In UK there are approximately 11,700 clothing businesses and 117,000 people are
employed in the fashion and design industry. It is also estimated that at present the fashion
industry on the UK high street is worth £44.5 billion and accounts to 6% of the consumer
spending. Research state that during 1960s about 10% of the household expenditure was
spent on footwear and garments whereas today; it stands at only 6%. This is because of the
competition in the industry and the discounts offered by the companies. Moreover the impact
of the downfall of apparels and footwear costs to about 14.4 per cent and the rise in cost of
living to about 12.6 per cent could also be the probable reason (Research and Markets in its
report: “Clothing & Footwear Industry Market Review” researchandmarket.com).
Today in the fashion market in UK, each of the fashion brands is experiencing stiff
competition because of the discounting trend reaching its peak. And such trends are forcing
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the fashion brand to adapt better and better strategies in building their brand image.
Additionally the cheap imports are almost wiping out the UK manufacturing industry.
Rationale for the Chosen Research Topic:
1.4 Definition and Importance of Brand and Fashion
Brand: One can understand the role played by the brand only by realizing the
appropriate meaning and definition of brand and branding. Among the most available the
most quoted definition for brand and branding is the one that is proposed by Kotler (1998).
Kotler proposed a new definition from the one that was proposed earlier in 1960 by the
American Association Committee on Definitions. According to Kotler, the definition of a
brand is as follows:
"A brand is a name, terms or logo or design or a combination among them aiming at
identifying a product or a service from one vendor or manufacturer and differentiate it from
competitors".
1.4.1 What is Fashion?
Fashion: In simple terms fashion can be defined as the ‘synonym characteristic of
social behaviour’. This is because fashion is generally a process that recognizes a design or a
product depending on the present social behaviour; it is to say that one that stays for a limited
period of time as accepted by the social behaviour; because the same is again replaced by a
new and socially accepted new design or new product or even a newer form; all depending on
the social behaviour. Interestingly in an essay on fashion George Simmels (19??) inscribes:
“…fashion is merely a product of social demands… This is clearly proved by the fact
that very frequently not the slightest reason can be found for the creation of fashion from the
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standpoint of an objective, aesthetic or other expediency. While in general our wearing
apparel is really adapted to our needs there is not a trace of expediency in the method by
which fashion dictates… ”.
1.5 The Importance of Brand Positioning:
Positioning a brand is to create a position to it i.e. to make it to identify itself such that
on one hand it differentiates itself from its competitors and on other it matches with the
desires of its target group (C. F. Trommsdorff, 2007; 2008).
The most recent example for the position of a brand is the global economic crisis.
During the recession period all the companies were trying hard to differentiate themselves
from their competitors and attract the customers towards them. Needless to say it can happen
only when the consumer is carrying the brand name in their minds. To simplify it can be said
that the key to survive even during the adverse situations like recessions or an economic
storm; consumer orientation plays a vital role, it makes the consumer to think and re-think the
logic of positioning (Nique 2007).
As such it becomes important for the companies to rely on positioning the brand in
the minds of their target. It is evident from the above discussion that it becomes imperative
for a firm to establish its brand image and identity. Figure 1 shows how firms express their
brand values through advertising.
Figure 1: Firms Expressing their Brand and Brand Values
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1.6 Brand Image and Brand Identity
Jean-NBoel Kapferer, the author of “Strategic Brand Management” is of the opinion
that ‘brand identity often precedes image’. He further argues that “an obsession with image
often tends to attach more significance to its manifestation than the real inner truth. But,
brand identity is richer, brand identity has supplementary substantial concept that can be
embraced”. To understand the difference between brand identity and brand image, and how
they differ from each other a detailed comparison of brand image and brand identity is
presented in figure-2
Figure 2: Brand Image versus Brand Identity
Brand Image Brand Identity
Appearance Substance
More on the receivers side More on the senders side
Passive Active
Reflects superficial qualities Reflects enduring qualities
Backward looking Forward looking
Tactical Strategic
Associations already there Associations aspired to
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Source: Jean-Noel Kapferer, Strategic Brand Management Identity
It is evident form figure-2 that on one hand both the concepts; brand identity and
brand image are quite different from each other and on the other they are so simple to sum up
and understand their essence. In simple terms brand image is how the market perceives it and
brand identity is who you really are. From the above discussion it is evident that both brand
identity and brand image play a vital role in brand positioning.
1.7 Problem Statement
From the above submission this study is of the view that there is a need to identify the
important market drivers and how the fashion industry market is changing rapidly. The study
is also of the view that the fragmented nature of the fashion market is playing a vital role in
influencing the market trends. Under these circumstances it becomes crucial to identity how
fashion brands can build brand image and develop brand identity to gain competitive
advantage.
1.8 Research Questions
This research furthers to identity answers to the following questions:
1. Discover how key fashion brands are responding to the market changes.
2. How the fashion brands are establishing their brand image into the fragmented
market?
3. What are the measures taken by the fashion firms to establish identity to their
brands?
4. What are the strategies adapted by fashion brand to gain competitive
advantage through brand image and brand identity?
1.9 Aims and Objectives
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The following are the aims and objectives of the present study:
Understand the growth strategies of successful fashion brands benchmarking
their performance against key competitors.
Explore the role played by brand image and brand identity in facilitating the
fashion firms to gain competitive advantage.
Formulate theoretical model to explain the relation between brand image,
brand identity and competitive advantage.
1.10 Research Structure
The research is arranged in five chapters.
Chapter 1 makes a theoretical study of the research exploring the fashion industry in
UK with relevant studies on brand mapping market forces and marketing strategies
concerning brand development and gaining competitive advantage.
Chapter 2 reviews the literature and studies available on brand image, brand identity,
competitive advantage and their relation to the fashion industry in UK.
Chapter 3 covers different areas of research methodology such as research design,
procedure of data collection, method of sampling, data analysis method and reliability of data
etc.
Chapter 4 presents the case study and deals with the findings coming out of the
research and its further impact.
Chapter 5 draws conclusions and provides suggestions building a theoretical model
relating brand identity and brand image in gaining competitive advantage.
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Chapter 2:
2.0 Literature Review
Working in the context of ultra-famous brands like Dior and
Vuitton, creative spirits are always going to feel reined in. It's important
that they are free to develop ideas. And rather than detracting from the
principal job, it reinforces it. I think of that money as venture capital. It's
not a big investment.
- Bernard Arnault
2.1 Introduction
If there is anything that kept on changing with time than it is fashion. Time is evident
that the mankind has been adapting fashion with the changing time. A year has only a few
seasons but fashion has adapted multiple seasons from loin-clothes to coats and varied
accessories - everything because of the fantasies carried by the humankind. It was during
1850s when a new profession called as ‘fashion-designer’ was evolved as a new way of life.
Historical annals point at C. F. Worth, a Paris-based designer of British origin as the first
‘fashion-designer. Initially Paris remained as the hub for fashion followed by London and
Milan.
Fashion is unstylish if it doesn’t change. From the old-age skin clothes to today’s
fabrics there has been a galaxy of changes, catering to every need of the fantasies of
humankind. Nowadays fashion-designers give great care for ‘choice’ and ‘cut’ of fabrics.
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However, the brand image literature in consumer marketing can be characterized and
fragmented.
2.2 UK Fashion Industry
I am not looking like Armani today and somebody else tomorrow.
I look like Ralph Lauren. And my goal is to constantly move in fashion
and move in style without giving up what I am.
Ralph Lauren
In UK among the export performers fashion industry is considered as the strongest
one. It has established itself with high international profile. The London fashion week held
twice in a year during February and September is evident to it that projects the country’s
hottest designers. The Department for Trade and Industry supports it as it efforts to introduce
ever new talents. The annals of the history of fashion in UK state that it was during 1960s, the
era of new fashion designers like Mary Quant and Jean Muir the fashion store Biba and not to
forget is the ‘Miniskirt’- a skirt with a small hemline. Moreover its association with the
British Pop ensured the fashion designs a permanent position globally.
During 1970s UKs fashion industry was marginalized favouring styles generated from
the streets. And this is popularly known as the ‘punk moment’. During 1980s UK fashion had
a major turning point which evolved thirst for designer wear mostly termed as ‘Romantic
Moment’. During 1990s were the period when people all around the world started adapting
‘classic’ or ‘vintage’ looks and the same saw a surge in UK also. This trend gained popularity
with the designs created by Russell Sage. This period also saw drastic changes in the fashion
industries that created space for brand that started using designs created during and for
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fashion shows. And the name of the brand started playing a vital role for creation of ever new
fashion trends.
2.3 Understanding the customer for Brand Image and Brand Identity
Your premium brand had better be delivering something special,
or it's not going to get the business.
Warren Buffett
The traditional concept of a brand is related to a logo, a sign or a label. Interestingly
de Chernatony and Dall’ Olma Riley (1997) argue that firms often failed to recognise that
brand acquires connotation in consumers’’ minds through their experience.
Today, the youth are not at all lured by just expensive goods. They on the other hand
are looking for value for their money. The present day youth are more and more attracted
towards goods that exemplify self-identity and well-being. They feel that their values and
tastes are displayed through branded goods. Some even feel that it serves to fulfil their
emotional needs opines Cheng, (2006). During the earlier times ‘brands’ were those that were
scarce and available only to a small segment of people (Shiviroj, 2007).
‘Youth are the representative of pleasure-seeking effect’, opines Sriviroj, (2007).
Hamilton, (2004) argues that the elders generally look at brands as luxuries and prefer them
only when they are confident that they have met all their basic needs. C. F. Ad Silva Anana
and Nique, (2007) argue that the peoples wants and goals in life constructs their individual
values. And these values influence their respective behaviour, which includes brand
preference. Hence a cascade is established that starts with preferences for certain values.
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Based on the argument carried forward by C. F. Da Silva Anana and Nique a brief study of
Values-Attitudes-Motives-Behaviour Cascade is presented.
2.4 Values-Attitudes-Motives-Behaviour Cascade
According to Schwartz, (2006) and C. F. Rokeach, (1973), values can be defined as
“desirable, transitional goals, varying in importance, which serve as guiding principles in
people’s lives”.
Da Silva Añaña and Nique, (2007) state that values represent the peoples aims in their
lives. Values are highly relevant. Values help to predict people’s behaviour that includes brand
preferences. To describe the various constructs of value a figure is presented as under:
Figure 3: The Values-Behaviour-Cascade
Source: Trommsdorff, (2008, p. 34.)
According to the figure-3, C. F Trommsdorff, (2008) opines that there are several
constructs of consumer behaviour. And these include motives and attitudes that intervene in
between the value and brand preference.
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C. F Trommsdorff, (2008) argues that the purpose of Value-Cascade Positioning is to
turn the focus of the brand towards the consumer; and to be precise rigorously. Trommsdorff
further argues that the general positioning maps portray what are the customer’s
presumptions regarding a particular brand. Whereas, the Value-Cascade Positioning straight
away illustrates what exactly are the customers want in relation to their preferences. This
model also portrays the comparison aspect of the consumer’s preferences in relation to the
competitor’s brand.
But Shcheglova, (2009), argue that the as the means (brand preference of consumers)
and the ends (their values) match with each other, as such it is the Value-Behaviour Cascade
provides a theoretical framework for the VCP: Value-Cascade Positioning. This is evident
from figure-4 that demonstrates the position of a brand that offers a glimpse through the
layers of the values-behaviour cascade back to the values as the highest-order construct.
Figure 4: Employing the Value-Behaviour-Cascade for Brand Positioning
Source: According to Trommsdorff 2008, p. 34.
Values and brand preferences can be considered by the simplest version f the Value-
Cascade Positioning as shown in the figure-3. It is evident from figure-4 and fact that each of 20
any brand is an representative of its own value and each of such value attract consumers with
similar value and however also avert consumers with conflicting values opines Mazanec
(2001). However C. F. Elrod, (1988) states that in contrast to the ‘perceptual maps’ is of the
opinion that the positioning maps that are inferred by brand choice as ‘choice maps’, whereas
the model depicting Value-cascade positioning tends to lead to preference maps.
But because of the intervention of certain contrasts such as the attitudes and motives
they tend to leave an impact on the relationship between the values and brand preference.
This is the probable reason as to why a particular value preference doesn’t always lead to
similar brand preferences. This stands the same from other end also, i.e. as to why brand
preference of any particular brand doesn’t always lead to the same values.
It is evident from the above discussion that attitude and motives cannot be the only
constructs between brand preference and values; further constructs need to be integrated. This
becomes important because this may lead to multi-layer positioning maps that may present a
better perspective; but this needs in-depth analysis. As the aim of the present research is to
establish the relationship between the brand image and brand identity for attaining
competitive advantage for fashion brands; only a brief study on the correlation between the
brand preference and consumers value has been undertaken.
A study of value-behaviour cascade was done to understand the relationship between
the brand preference and consumers behaviour in preferring a particular brand. In
continuation of the above and to understand the relationship between the brand image and
brand identity for attaining competitive advantage for fashion brands a further study of
‘brand-positioning’ is undertaken (as discussed below). This becomes imperative because the
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