University Of Economics And Financeelectronic Customer Relationship Management Company Zara.pdf

lOMoARcPSD|38183518 UNIVERSITY OF ECONOMICS AND FINANCE ELECTRONIC CUSTOMER RELATIONSHIP MANAGEMENT Company: ZARA Group Lecturer: L.T Sơn 195120540 185050671 Thành viên 195120595 Võ Đức Duy 195120568 Nguyễn Thỉnh 195120632 Trần Anh Tài 195120519 Đỗ Duy Quang Nguyễn Đăng Khoa Bùi Thanh Sơn Table of content Abstract Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 I About Zara .5 History Zara's growth and expansion .6 Zara stores Product portfolio Field of activity 10 II ZARA'S CRM OVERVIEW 10 Customers 10 Competitor 10 Product positioning segment .12 Zara's CRM Overview 12 4.1 Define sales push strategy and increase distribution efficiency globally 14 4.2 Evaluate the effectiveness of Zara's CRM system implementation 15 SWOT .16 5.1 Strengths 16 5.2 Weaknesses 16 5.3 Opportunities .17 5.4 Threats .18 III CRM Strategy 19 Administration process .19 Details plan .20 2.1 CRM objective formulation .20 2.2 Plan 21 IV Solution 22 1.1 SAP CRM Sales 23 1.2 SAP CRM Marketing 24 1.3 SAP CRM Service .25 1.4 SAP CRM Web Channel 26 1.5 SAP CRM Interactive Channels 28 1.6 Five benefits of SAP CRM 29 V Training plan 30 Page of 34 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 CRM DEPARTMENT .30 1.1 Team training and development 30 1.2 Conclusion 32 VI Prevention and risk prevention plan 32 Risk issues 32 Preventive options .33 VII Conclusion 33 REFERENCE 34 Table of Figures Figure Zara's logo Figure Amancio Ortega Figure Zara's growth Figure Zara Figure Zara's store Figure Zara's products Figure Zara's competitor .11 Figure Zara's positioning 12 Figure Zara's production 13 Figure 10 Push strategy 14 Figure 11 Management process diagram .19 Figure 12 CRM Sales 24 Figure 13 CRM marketing 25 Figure 14 CRM service 26 Figure 15 B2C .27 Figure 16 B2C .27 Figure 17 CRM channels 28 Figure 18 CRM Department 30 Page of 34 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 Abstract Amancio Ortega Gaona, Inditex’s founder The first Zara store was opened on an up market shopping street in La Coruna, in 1975 From the beginning, Zara positioned itself as a store selling medium quality fashion clothing at affordable prices By the end of 1970s, Ortega managed to open half a dozen Zara stores in Galician cities Ortega, interest in Information technology made him to bought his first computer in 1976 in addition to his interest in information technology also brought him to reach Jose Maria Castellano, who is an experienced professional with Information Technology, Business Economics and Sales Implementation of Information Systems strategy is an opportunity for Inditex and owned brands like Zara to take the apparel business to next level I assume that the usage of less information systems for the business processes can be a business threat for Zara to lose the customers even though they have good competitive advantages and customer loyalty I would like to consider information systems related strategies from non apparel companies like Congnizant, TCS which are also in to Information Technology Enabled Services(ITes) side I assume that eCRM adoption adds additional energy to Zara’s competitive advantage Page of 34 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 I About Zara Figure Zara's logo ZARA is a Spanish multi-national retail clothing chain It specialises in fast fashion, and sells clothing, accessories, shoes, beauty products and perfumes The head office is in Arteixo, in A Coruña in Galicia It is the largest constituent company of the Inditex group In 2020 it was launching over twenty new product lines per year History Figure Amancio Ortega Amancio Ortega opened the first Zara store in 1975 at A Coruña center, Galicia, Spain Ortega originally named the store Zorba after the Greek classic Zorba, but after learning there was a bar of the same name two blocks away, the letters were rewritten for the sign "Zara." Page of 34 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 It is believed that the additional "a" came from an additional set of letters that were created for the company The first store to introduce low-priced products of high-end, affordable clothing Ortega has opened more stores across Spain Throughout the 1980s, Ortega changed his design, manufacturing and distribution processes to reduce lead times and react to new trends in a faster way, which he called "instant fashion" Improvements include the use of information technology and design teams instead of individuals It belongs to Inditex, the largest fashion group in the world Zara is a Spanish clothing retailer based in Galicia, Spain Founded by Amancio Ortega in 1975, it is the flagship store chain of the Inditex group, the world's largest apparel retailer Zara's growth and expansion Figure Zara's growth In 1985, Amancio Ortega founded the parent company for the Zara brand before engaging in global expansion, and in 1988 the company began its international expansion through Porto, Portugal In 1989, Zara entered the United States, and then France in 1990 During the 1990s, Zara expanded into Mexico (1992) and Greece, Belgium and Sweden (1993) In the early 2000s, Zara opened its first store in Brazil (2000); Japan and Singapore (2002); Venezuela, Russia and Malaysia (2003); China, Morocco, Estonia, Hungary and Romania (2004); Philippines, Costa Rica and Indonesia (2005); Korea (2008); India (2010); Taiwan, South Africa and Australia (2011); and Peru (2012) In September 2010, Zara opened its online store The site starts in Spain, UK, Portugal, Italy, Germany and France In November of the same year, Zara Online expanded its service to more countries: Austria, Ireland, Netherlands, Belgium and Luxembourg Online stores started operating in the United States in 2011, Russia and Canada in 2013, Mexico in 2014, South Korea in 2014, Romania in 2016, India in 2017, Brazil in 2019 and Peru in 2020 Page of 34 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 Zara introduced the use of RFID technology in its stores in 2014 The RFID chips located in the security tag are removed from the clothing upon purchase and can be reused This chip allows the company to quickly take invFeignutorery Zbayradetecting radio signals from RFID tags When an item is sold, the warehouse is notified immediately so that the item can be replaced You can easily find an item that is not on the shelf with an RFID tag In 2015, Zara was ranked 30th on Interbrand's list of best global brands In 2019, Zara updated their logo It was designed by the French company Baron & Baron In 2019, the global fashion business magazine MDS said that while world textile trade fell by 2.38%, Zara grew by 2.17% In 2019, CEO Persson said the brand was waiting for more acceptable global rents to continue to expand In Europe, the brand has planned to cut the number of retail locations starting in 2020 Zara stores Figure Zara's store There are 2259 Zara stores in 96 countries Zara introduces HighAF in 2021 In early 2020 due to the pandemic (COVID-19), ZARA stores worldwide were temporarily closed due to restrictions However, in April 2020, ZARA's owner ramped up shipping to Asia as China ended its 76-day lockdown and when shoppers returned, business started again For brands like Zara that are more than just profit-centric, growth prospects are a piece of cake as their vision revolves around growth partnerships based on smart decisions rather than drastic Staying true to its unique selling proposition Zara keeps its customers waiting for new collections, inspiring other fast fashion brands to help them stand out in the race to keep Page of 34 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 up with fashion trends change globally The way and direction in which Zara's success curve goes from its roots, has in itself been an inspiration to other brands and fashion aficionados Product portfolio The main product lines of Zara Vietnam:  Zara women: Women's coats, shirts, women's T-shirts, to Zara pants, skirts, shoes, bags  Zara men: Zara shirt, vest, Zara jacket, Zara men's clothing and shoes  Zara kids – Zara children: Clothes, shoes, mainly from years old and up  Other accessories: Jewelry, bags, hairpins, … Figure Zara's products Zara stores have men's and women's clothing as well as children's clothing (Zara Kids), fashion accessories such as Zara handbags, Zara shoes, perfumes Zara Home designs are Page of 34 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 located in stores European store Zara products are offered based on consumer trends The majority of Zara's customers are between the ages of 18 and 30 Its highly responsive supply chain ships new products to stores twice a week Once products are designed, they take 10 to 15 days to reach the store All clothing is processed through the distribution center in Spain New items are inspected, sorted, tagged and loaded onto trucks In most cases, clothes are delivered within 48 hours Zara produces more than 450 million items each year In May 2021, Zara launches its first beauty line, ZARA Beauty Field of activity ZARA was originally just a small fashion store ZARA sells popular fashion items with similar designs, "cheap" prices and high-end fashion items After a period of operation, the ZARA store became more and more popular and Ortega began to expand its business from changes in design, production, distribution and quickly updating market trends In 1980, ZARA began to export its products to the international market, first to Portugal, then to the US in 1989, in 1990 entered the French market and in turn other countries around the world II ZARA'S CRM OVERVIEW Customers Zara's customer segment is mainly young people However, they want products that are reasonably priced but still trendy Therefore, Zara's strategy has targeted this element and produced trendy and low-priced designs That doesn't mean Zara uses substandard components Zara's customer positioning strategy is aimed mainly at women In addition, men occupy a smaller segment in the strategy and the remaining segment is for children's fashion Page of 34 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 Competitor ZARA being a big brand and selling numerous products in its stores these days ranging fromperfumes to footwears so the new entrants may not be a threat to ZARA but there are also otherbrands who follow fast fashion maybe not as quick as ZARA but could turn things around asconsumers market is highly unpredictable The various competitors of ZARA are: 1.) H&M 2.) Uniqlo 3.) Nike 4.) Gucci 5.) Forever 21 Two pertinent brands that are very close to how ZARA deals are H&M and Uniqlo Figure Zara's competitor H&M is one of the most popular fast-fashion businesses, with more countries than Zaraoffering exclusive and affordable high-end reproductions The company's elegant collectionsand volatile trends are sold all over the world, even in certain regions where it is Page 10 of 34 Downloaded by mai truong (truongthimai.2902@gmail.com) lOMoARcPSD|38183518 online channel than other retailers, but it designed a unique, high-quality online customer experience Here are some ways that Zara is using technology:  Card Programs - Zara has included in its app card programs like QR codes and NFC This program allows customers to use the app to scan products to get information such as sizes, colours and prices  AI shopping experience - Zara's retail website allows a customer to discover new or similar options When they click on a product, a pop up opens showing available options similar in pattern, size, colour  Sizing Tool – based on data analytics, the website and app is equipped with a sizing tool labelled "what's my size?" to assist customers with picking the right clothing size The tool asks the customer for information coupled with previous purchase information; the tool makes a size recommendation Collaborative CRM Collaborative CRM consists of communication and coordination between the various distribution channels and customers to improve profitability while building customer loyalty Collaborative customer relationship management also offers integrations with other applications, ensuring you can aggregate information from different channels and move smoothly between them (Sirk, n.d.) Zara has an integrated system that updates in real time, they have a common database that supports all applications Details plan 2.1 CRM objective formulation Each year Zara manufactures 11,000 new products for sale  CRM plays a significant role in shaping Zara’s policies  CRM is helpful in attracting customers  The data is utilized by Store Managers & Supervisors  Zara only consumes 0.3% of income on advertising & marketing compared to 3-4% on the business Page 20 of 34 Downloaded by mai truong (truongthimai.2902@gmail.com)