After inputting our values and doing our calculations taking into account the various components in the table, we have valued Zara’s brand to be SGD 14,676,761 in Singapore, using a discount rate of 10%. 



Zara already has strong brand awareness (both recall and recognition) but is lacking in conveying its message of being a brand that is exclusive and luxurious but at the same time affordable to Singaporeans. With this in our consideration, our branding strategies will address these issues and raise Zara’s brand value in the future.

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The strategies we will propose aims to reinforce Zara’s marketing communications to portray a stronger meaning behind the brand and better target potential and existing customer segments.



Limitations

As Zara is under a franchisee agreement with RSH Limited in Singapore, there is no exact calculation shown in the Inditex Annual Report. Hence, the team used the calculation method that was mentioned in Stage 1 which might reduce the accuracy of Zara’s earnings locally.


It is also crucial to note that the Interbrand valuation method that we have adopted to create this table makes the following assumptions:
- Constant discount rate
- Target segments do not change
- Role of Brand Index does not change
- Constant growth of each segment
- Only accounts for five years of earnings