In many mature markets competition keeps growing. As a result, products are increasingly becoming similar, which often prompts price reductions and other promotional tools to ensure profit margins and the long-term marketing viability. Another solution frequently employed to win the competition is the use of emotional advertising (Rossiter & Percy, 1997). This is because products sharing the same or similar attributes can generate different emotion, therefore, be perceived different. However, the frequent use of emotional advertising has led to the situation that not only products but also their ads become similar primarily because consumers buying products of the same category tend to prefer similar effects. Such similarity of the ads is likely to create confusion among the ads so that consumers may not identify the brands of the ads correctly. Impacts of the confusion, however, may differ due to a number of variables. Of the variables, a few critical variables are examined in this study, and several propositions are suggested for the future study.
Effective branding strategy requires systematic management of brand identity and brand image. Brand identity refers to the company’s plan with regard to what associations consumers hold for the brand, whereas brand image refers to the associations consumers actually hold for the brand. According to Aaker (1996), brand identity consists of brand essence, core identity, and extended identity. Brand image, on the other hand, consists of attributes, benefits, and attitudes (Keller, 1993). Given the nature of brand identity and brand image, branding strategy aims to strengthen congruence, but lessen discrepancy among the components.
The strategy can be either manipulative or reflective, i.e., changing brand image to correspond with brand identity or changing brand identity to adopt brand image, respectively. Branding strategy of SPA (Specialty Store Retailer of Private Label Apparel: i.e., fast fashion) brands is not an exception. However, SPA brands are characterized as quick response production capabilities with enhanced design capabilities to produce "hot" products that capture the latest consumer trends and exploit minimal production lead times to match supply with uncertain demand (Cachon & Swinney, 2011). Consequently, branding strategy of SPA brands is expected to be more reflective than manipulative.
The primary purpose of this study is to verify the expectation, analyzing the branding strategy of the big 3 SPA brands: ZARA, Uniqlo, and H&M. All being SPA brands, the big 3 brands still need to differentiate from the competitors. From the perspective of this study, the differentiation strategy is expected to be manifested in the components of brand image to reflect, i.e., more emphasis on the reflection of attributes, benefits, or attitudes. Accordingly, this study also examines how the details of branding strategy differ among the big 3 SPA brands in this regard.