I s l amov i c Nad i ra , Je lovac An i sa , Kok i c Dzenana , Luk i c Mar iana , Penkwi t z Ra f fae l , Schüt z Thomas

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 world‘s 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

STARS• Build sales and

market share• Invest to maintain

position• Repell

competitive challenges

PROBLEM CHILDREN

• Build selectively• Focus on

defendable niche• Harvest or divest

the rest

DOGS• Harvest • Divest • Focus on

defendable niche

• Hold sales and market share

• Defend position• Use cash for other

projects

CASH COWS

MARKET SHARE

M

ARKE

T G

ROW

TH

BCG Matrix for INDITEX

1160%

128%141%

166%113%

42%

55%

7%

Relative Market Share

Mark

et G

rowt

h

PROBLEM CHILDRENSTAR

DOGCASH COW

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-retail-industry)

PLC in Retail and Factors • Heavy competition• Fast trends• Pricing• Discounts and offerings• The shortness of maturity phase

INDITEX‘s 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 today’s luxury brand• The brand of affordable luxury

Exclusive Brands: ZARA HOME

• Created in 2003• Home design, bedding, tableware, dishware, decorative items

437STORES

48MARKETS

ZARA HOME

• Intention: introduce more fashion into a slower moving market• Turnover in 2014: € 548 million• “They sell you a lifestyle. It’s very aspirational.”• Sales have doubled since 2009 – more than all of Inditex’s brands• Zara’s brand recognition is an advantage in this highly segmented

market

Brand Extensions & Co-branding• Diverse brands = cover

various market segments• Multiple brands

compete in same categories• consumers can choose

between brands in the ‚family‘

• ZARA kids• Differentiation in:

prices, quality of products, geographically, demographically etc. • 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