ZARA Business & Marketing Essay Research Coursework

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Question 1
Zara uses market management to increase its sales. The use of technology allows the retailer to manage its marketing strategies and brands, Using Personal Digital Assistants (PDAs), the staff at Zara talk to customers to gain insight on what they want to see on the shelves. The technology allows the company to identify the tastes and preferences of their patrons. The data gathered is critical in determining what particular markets would like in a given time. The insights are sent to particular stores, which reduces wastage due to unsold items.
The company undertakes inventory management. Using technology, Zara manages the process of moving inventory of the manufacturing facilities until the products reach the final consumer. The inventory is smart due to the application of RFID (radio frequency identification) tags. Inside the Zara distribution center, the individual items have the RFID tags, which emit a unique identifying code of the item attached to it. The tags assist the company in knowing where a specific product is. This is critical in allowing the staff to determine if the ordered product is in the store, in a nearby store or if it can be obtained from the distribution center.
Additionally, sales management has been fundamental to the success of Zara. The company utilized the Point-of-Sale (POS) system to manage sales. The system records all customer purchases and it is linked to the inventory systems to deduct any sold items. The system captures the real-time data, which is then transmitted to Spain for further analysis. Based on the data generated, Zara determines which products should be shipped in which stores. This assists in...