BRANDS

Brands

Brands

Introduction

A Brand represents one of the most important assets to a company and it may be represented by its name, logo and slogan which characterize a means by which consumers recognize, remember and recall the brand. Over time and with growing competition, many companies decide to rebrand themselves for many reasons as a way of getting a makeover, revitalizing themselves or being totally “reborn” again (Aaker, 2000, 46). In this paper, we try to focus on the two brands that are Next and Zara. The purpose of this paper is to compare both the brand elements in terms of memorability, meaningfulness, adaptability and protectability. The paper also evaluates and analyzes brand equity and brand image. The paper also critically evaluates the degree to which the companies brand strategies are effective.

Compare and Contrast Brands

Next is the UK-based retailer of clothing, footwear, accessories and home products. Next distributes its products through three main channels: Next retail, a chain of around 500 stores in the UK; Next Directory, a home shopping catalogue and website; and Next International, with around 180 stores and website capability outside the UK. The company primarily operates in the UK, where it is headquartered in Leicester and employs around 58,706 people (Aaker, 1997, 347). The company recorded revenues of £3,454 million (approximately $5,329.8 million) in the fiscal year ended January 2011. Its net profit was £401 million (approximately $618.8 million) in fiscal 2011.

Whereas, Zara has been the trend setter in the fashion industry. Since the launch of the company, it has been very successful. The company has been successful because of the technology that it has adopted. The company's success depends on the blend of the technology that the company has adopted and has been able to break all the rules that the fashion industry was following. Vertical integration has made the company earn a lot of profits and remain ahead of its competitors in the market (Echikson, 2000, 29).

This was due to the fact that the company was able to reduce its cost and increased the barriers for the potential new entrants in the industry, which is why; the company is the market leader in the industry (Lindsay, 2004, 1). Zara's position in the market is due to the strategies that the company has adopted. The company has policies that are making it the leader. The profits of the company tripled in the years between 1996 and 2000 and have even increased between the years 2001 to 2007. The company has been earning revenues from $2.43 billion to $13.6 billion in these years, and this is the reason the company was able to move ahead of the market leader, Gap (Prahalad, 1990, 79).

As NEXT Plc is a trendy high street retailer which sells moderately priced clothing for stylish women and men in the age range 20 to 40. The company also provides home shopping and financial services (Solomon, 2002, 2). NEXT operates through five divisions: NEXT Retail operates the high street shops through more than 330 stores ...