I s l a m ov i c N a d i r a , J e l o v a c A n i s a , K o k i c D z e n a n a , L u k i c M a r i a n a , P e n k w i t z Ra f f a e l , S c h t z T h o m a s

AGENDA
Introducing the brands
Brand Equity and the BCG Matrix
Product Life Cycle of the Retail Industry
Branding Decisions
Introducing exclusive brands: ZARA HOME
Further propositions and co-branding possibilites

Introducing INDITEX
One of the worlds largest fashion retail groups
Representative of the FAST FASHION Industry
Based in Arteixo (Galicia), Spain in 1963
More than 140.000 employees
Revenue in 2014: $18, 117 billion
8
BRANDS

6700
STORES

88
MARKETS

BRAND EQUITY
ZARA flagship brand, 64% of total income
Brand equity: 9.4 billion USD
Customer-based brand equity
HIGH BRAND
AWARENESS &
HIGH
COSTUMER
LOYALTY

HIGH QUALITY
FOR
REASONABLE
PRICES

POSITIVE
TRUSTWORTHY
BRAND IMAGE

The BCG Matrix

The Boston Consulting Group Matrix
Analytical tool for allocating resources
Used in brand marketing, product management,
strategic management, and portfolio analysis
Scatter graph through four different areas:

Cash cows
Dogs
Question marks/Problem Children
stars

MARKET GROWTH

STARS

PROBLEM
CHILDREN

Build sales and

market share

Build selectively

CASH COWS

DOGS

Focus on
Invest to maintain defendable niche
position
Harvest or divest
Repell
the rest
competitive
challenges

Hold sales and

market share
Defend position
Use cash for other
projects

Harvest
Divest
Focus on
defendable niche

MARKET SHARE

BCG Matrix for INDITEX

STAR

PROBLEM CHILDREN

Market Growth

CASH COW

DOG

Relative Market Share

Product Life Cycle of the Retail

Industry
1. LAUNCH
2. GROWTH
3. MATURITY
4. DECLINE

Product Life Cycle in Retail Industry

(Source: https://www.linkedin.com/pulse/20141017061020-115338191-product-life-cycle-in-retailindustry)

PLC in Retail and Factors

Heavy competition
Fast trends
Pricing
Discounts and offerings
The shortness of maturity phase

INDITEXs PLC
Fast fashion industry representative
Constant change of products and designs
Fast production and distribution
Avoiding the decline phase
Constant re-introducing of new
products and lines

Branding Decisions
Inditex multi-brand portfolio
Market orientation strategy & vertical
integration
No advertising promotion strategy
Design-Fashion follower
Stocking very little and updating collections often (twice a week)
Sustain the image of the brands that possess high
cultural capital and are competitive
with todays luxury brand
The brand of affordable luxury

Exclusive Brands: ZARA HOME

Created in 2003
Home design, bedding, tableware, dishware, decorative
items
437
STORES

48
MARKETS

ZARA HOME
Intention: introduce more fashion into a slower moving
market
Turnover in 2014: 548 million
They sell you a lifestyle. Its very aspirational.
Sales have doubled since 2009 more than all of
Inditexs brands
Zaras brand recognition is an advantage in this highly
segmented market

Brand Extensions & Co-branding

Diverse brands =
cover various
market segments

ZARA kids

Multiple brands
compete in same
categories

Differentiation in:
prices, quality of
products,
geographically,
demographically etc.

consumers can
choose between
brands in the
family

Example: extension in
market targeting
students (school
uniforms)

Future Opportunities
Co-Branding activities: companies work together as an alliance
to create synergy effects throughout their brands
Opportunity: ZARA improving its shoe and handbag sales
ZARA launching a special shoe and handbag collection with the
luxury brand Louboutin
Future opportunities:
Line extension
Category extension
Multi branding
New brands and lines