“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.

2

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.

3

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.

4

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

5

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

6

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

7

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

8

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.

9

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

10

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

11

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

12

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

13

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

14

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.

15

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.

16

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

17

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.

18

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.

19

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

21

To get the full project, please buy the Assignment by using this Link

http://sampleassignment.com/pay-now.html

Cost - £39

22