About Zara
History
Amancio Ortega opened the first Zara store in 1975 at A Coruủa 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."
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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
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 5 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.
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 inventory by detecting 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
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
Downloaded by mai truong (truongthimai.2902@gmail.com) 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 3 years old and up.
Other accessories: Jewelry, bags, hairpins, …
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
Figure Zara's products 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.
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.
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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
Two pertinent brands that are very close to how ZARA deals are H&M and Uniqlo.
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
Figure Zara's competitor the onlyfast-fashion retailer The Chinese official media chastised H&M and Zara for not using Xinjiang Cotton in March 2021 The Chinese government accused both companies ofmarketing dangerous clothes three months later Despite these obstacles, H&M continues tothrive in many parts of the world In the worldwide fashion retail sector, H&M is Zara's maincompetitor Uniqlo is a Japanese fast-fashion shop and one of the world's most well- known clothingmanufacturers The firm is based in Asia and has greater experience in the clothing industrythan Zara Uniqlo has over 45,000 employees and a revenue of around $200 million in 2021.Uniqlo's major competitive edge versus Zara is its distinct positioning.Uniqlo is a Japaneseclothing company that makes and sells cheap everyday wear The LifeWear aesthetic wasdebuted in February 2021.
Product positioning segment
Zara has targeted mainly young customers They are price-sensitive young people They want affordable yet trendy products Zara has strongly targeted this segment using the latest designs and low prices However, that does not mean that Zara uses products that do not meet the standards of quality Its fabric is still of good quality but is usually used for only one season.
Zara targets the women who make up the largest portion of its target segment In addition, men also occupy a smaller segment of the target market and the smallest segment is for children's fashion.
Women account for more than half of the target market while men and children make up 40% of the target market (Harbott, 2011) Zara has positioned itself as an affordable fashion brand for young people The most unique feature of quickly updating fashion trends in a season compared to the rest of the fashion world
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Zara's CRM Overview
In contrast to many other brands, Zara prioritizes the consumer, concentrates on "co-creation culture," and provides the best collections for each target market rather than rushing to meet demand market for the product
Brands must be able to gather and research customer insights for in-depth analysis in order to do this Zara gathers data on demographics and online and in-store sales.
Zara's production and distribution strategy is shaped by an understanding of what their consumer likes, desires, often interacts with, and what prompts them to buy or abandon their shopping cart effectively market The fashion brand concentrates on releasing fresh designs in small runs to create "scarcity" and appeal to consumers' need for exclusive goods available for a finite period of time.
CRM helps Zara store and aggregate huge data sources from around the world to build typical customer portraits, thereby developing products that reflect each individual's unique
Figure 1 Zara's production needs and desires This has become a highlight every time consumers mention Zara's fashion style.
For example, Zara produces fashion products in smaller sizes in Asian countries or clothes with strong religious and cultural identities in Arab countries Understanding the condition, climate, and culture of each country helps Zara make more accurate decisions in launching new collections with outstanding sales The flexibility in product strategy has helped Zara rank 29th in Interbrand's list of best global brands (2019)
4.1 Define sales push strategy and increase distribution efficiency globally
Zara regularly creates new experiences for customers both in-store and online.
Under the impact of the pandemic, the world fashion was shaken by the "tsunami" of Covid that forced thousands of flagship stores to close The CRM system helps Zara capture consumers' online shopping trends at any time, thereby promoting a plan to push global sales on e-commerce.
Continuously opening online sales websites for each clothing brand is a smart and much more economical strategy than opening a direct store, hiring labor and operating costs Each customer who visits the online sales system is fully recorded, storing their interaction with the business, from consulting, sending goods to after-sales care.
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This is an important database for Zara to carry out nurturing and customer care activities such as emailing product announcements, order confirmations, shipping status confirmations, satisfaction surveys, etc This helps customers easily access the products they need / are interested in, increasing the smart shopping experience and increasing satisfaction 3 times compared to traditional shopping.
Thus, Zara's CRM system pushes product sales in a way that provides personalized information for each customer based on data analysis, operating in the direction of automation to minimize errors and ensure 100% of customers are nurtured and cared for in a timely manner.
This fashion empire is focused on giving customers what they want and helping them get what they need faster than any other brand Zara does not mass produce products (average 12,000 new designs/year) and focuses on delivering garments to customers in the fastest time by tracking orders per account.
This activity helps businesses reduce inventory costs, fulfill orders from the warehouse to the nearest stores/customers, and reduce delivery costs for buyers “In all cases, we always try to ship the product to the consumer within a day of receiving the order information,” said Pablo Isla, president of Inditex.
4.2 Evaluate the effectiveness of Zara's CRM system implementation
Automation technology and data mastery have brought great success to Zara, making the Spanish fashion house one of the most prominent names in the world fashion industry.
Zara operates on a policy of minimizing advertising and mainly relies on CRM to maintain customer and business related activities, increasing competitiveness with similar brands such as H&M or MNG.
CRM software application has helped Zara meet expectations in shaping marketing strategies and staying connected with customers:
Understand customers better: Analyze various aspects of customer data to forecast appropriate sales scenarios by storing a complete history of customer activities.
Revenue growth, including sales opportunity management and order status management per account
Manage multi-channel marketing campaigns and evaluate the effectiveness of each campaign
Maintain interaction with customers: Set up a list of customers who need to interact and automatically send messages through many channels such as email, sms, website, e-commerce,
Easy work assignment: Empowering sales staff to proactively approach, nurture and take care of customers along the way Each employee will know who, when, and how they should interact.
CRM is really a perfect solution to solve the difficulties of businesses in customer relationship management, making more accurate marketing and business decisions Whether it is a B2B or B2C business, in any field, your business also needs a data management system and automation in customer interaction like CRM.
SWOT
ZARA focuses and orients its products as fast fashion As soon as the latest fashion trends are identified, ZARA can immediately focus on design, production and sale in just two weeks, the speed of product production is much faster than other garment companies traditional wear ZARA always has the most advanced strategies and management methods in operating its supply chain to ensure this pioneering position.
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As of 2020, ZARA is present in over 202 markets and has stores in 96 of them ZARA is the fashion brand with the largest number of retail stores in the world with a total of 2,249 stores.
ZARA's online collections are refreshed every two weeks Products are guaranteed to arrive anywhere in the world within 48 hours with 10 distribution centers In addition, the company also has an in-house team dedicated to developing its own software to double the speed of order dispatch.
ZARA's new products take an average of 2-3 weeks from the designs to the store The reason behind is a team of more than 700 well-trained, professional designers with the aim of creating designs that meet the wishes and thoughts of customers Every year, ZARA can create 50,000 products to introduce to its customers.
Selling online has been and will be the general trend of the times ZARA is also not out of this game, investing 3 billion USD to boost its online sales ZARA focuses on developing the online shopping experience, integrating the company's existing infrastructure The goal by
2022 is to be able to generate a portion of revenue through online sales.
As an advantage but at the same time a weakness, Fast Fashion is the trend that brings ZARA to the top, but at the moment, it is also an urgent risk that the company must face In recent years, social-related topics such as “sustainable development” or “green economic development” have become the top concerns of consumers and policymakers around the world many countries, this invisibly caused ZARA to face a lot of criticism.
Relying too much on the physical store
ZARA's number of fashion stores in the world is very large, with the COVID-19 pandemic slowing down their growth and plans to open more stores Even though ZARA has focused on investing in online stores, their revenue is only 89% compared to 2019 - the time when it was not affected by COVID-19.
Appears faintly in the US and Asia
As a brand whose starting point is Europe and although it has invested a lot in other major markets such as the US and Asia - the two largest apparel markets in the world, ZARA's presence in these two markets is very faint.
ZARA works with 1,520 suppliers across 7,108 factories worldwide, so multi-ethnicity in staff and management is inevitable While the company has issued a strict code of conduct on issues of racial discrimination, a report on the treatment of workers in Myanmar has raised questions about its enforcement this switch.
With a commitment to changing collections every two weeks, ZARA has a very high number of loyal customers who visit the stores (average 17 times a year) Another reason for this is the speed of ZARA's reaction to new trends as soon as they appear It only takes ZARA two weeks to complete the production of new products, and in the future, ZARA can shorten this cycle even more to ensure products will be delivered to customers as quickly as possible.
The market for selling, exchanging second-hand clothes or "resale" is currently emerging as a potential market with a value of $ 28 billion Integrating the “resale” strategy into ZARA's existing platforms allows customers to spend more and waste less.
ZARA has launched the #DearSouthAfrica campaign in the past and has attracted more than
8 million attention In the future, Influencer Marketing may be the key to attracting Customers for ZARA.
Personalization trends thanks to AI Marketing
ZARA has been focusing on investing in the development of artificial intelligence (AI) technology and it is these plans that will make it easier than ever to collect and analyze a customer base Capturing customer behavior is the "key" to their plans to grow and expand their business.
Competing on the digital field
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Shien, a Chinese fast fashion house, is the largest fashion retailer in the world with an entirely online presence In just one month, Shien reached 10.3 million downloads and installs on mobile devices Meanwhile, ZARA only reached 2 million downloads Therefore, the digital field is a new battlefield, where ZARA must be extremely vigilant and have a development investment plan.
Fast fashion has been oriented by ZARA from the beginning as a niche market for the brand. However, the industry is vulnerable to imitators waging price wars to profit from Zara's product line.
In 2020, the COVID-19 pandemic shook the world, with ZARA's parent company Inditex reporting a 44% drop in sales compared to the annual average The reason lies in the fact that the company had to close 88% of its stores globally.
CRM Strategy
Administration process
Customer relationship management is the business processes and supporting technologies that support the key activities of targeting, acquiring, retaining, understanding and collaborating with customers (Band, 2013) Zara heavily uses and relies on its CRM to meet its goals and keep them staying ahead in the industry; Zara's CRM revolves around three blocs.
Procurement plays a vital role in delivering products continuously and inventory management Zara can keep the lead because of its ability to provide the products that its customer wants quickly; the company can achieve that by including CRM to its supply chain.
The supply chain integrated with CRM used to make the database of customer information and collect valuable data that shows customers' current needs and wants CRM integration in the supply chain leads to forecasting customer behaviour and retaining customers by analyzing the likelihood of customer purchases It can be used to run sales promotions to any specific customer group An important note to Zara's integration is that it can be done because of its "in house production".
Another key element to Zara's success is that it relies heavily on technology Technology, and especially the technology-enabled by the Internet, has had enormous repercussions for CRM (customer relationship management) (saylordot.org, n.d) It took Zara longer to enter the
Page 19 of 34 Figure Management process diagram
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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 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
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.
Two CRM strategies will be developed for Zara Company According to the annual report
(2015), Zara has not in the past implemented the operational and collaborative CRM strategies The company has no specified CRM approach and only relies on market research to identify the needs of its customers Below is an explanation of the different CRM approaches that have been developed for Zara Company.
The main purpose of operational CRM is to generate leads and converting them into contacts to capture all the required details to provide proper customer care services The CRM strategy is used to streamline the business process including sales automation, marketing automation and service automation.
Sales automation- Sales automation includes various CRM sales modules including contact management, lead management and sales forecasting.
CRM is important in sales automation where it helps Zara to automate sales process which is used to set standards within an organisation to deal with current customers and acquire new customers For example, the company has online platforms that contribute to sales automation as they are vital in enabling online customers to access its products and communicate with the company The company is able to organize important information about the market to increase sales more efficiently and effectively
Marketing automation- CRM is also important in marketing automation as it helps in finding out the best way to approach customers in the market and how to offer different fashion designs to meet their expectations (Jaccard and Becker, 2010) Campaign management is important in marketing automation where it enables the business to decide effective channels of communication to meet up with potential customers For example, through social media marketing, the company links with customers via the social media sites and communicates with them on how to improve its products.
Service automation- this is where Zara Company retain customers by providing quality fashion products to build strong relationship with customers worldwide The company is able to fix customers’ issues and problems by handling customers’ request based on the company products and services based on key performance indicators (Barnet, 2016) For example, through its websites, the company is able to link with customers, serve them, receive their complaints, and improve its products to meet their expectations, satisfactorily.
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This is an effective CRM strategy, which will enable Zara Company to share customers’ important information with other units in the organisation including the sales team, marketing team, technical and support team This is based on interrelationship between various departments where each department depends on each other in the decision making process. Collaborative CRM is used to unite all departments in the company with the main goal of improving the quality of customer care services given to customers (Jobber, 2013) For example, through collaborative CRM, employees work together whilst serving customers in order to, fully, satisfy their needs and to retain as many of them they can This is to gain loyalty of current customers while acquiring new customers to increase sales.
Feedback from support team in the company is useful in various organisations including marketing team to be able to approach targeted customers to provide fashion products that meet their expectations (Berthon et al., 2012) For example, the feedback makes the company to learn about new fashion demands of customers and offer them what they need, so as to meet their expectations Lack of interrelationship between functional units in an organisation leads to poor organisation performance and business losses Information from one functional unit in the company is used to influence operations in the other unit in the organisation to make important decisions based on customers’ expectations Different types of CRM applications have different features and advantage therefore it is important for the company to implement CRM strategies that are effective in achieving future goals and objectives.
Solution
SAP CRM Sales
There are four types of sales channels that can be managed by SAP CRM Sales, which are:
SAP CRM is developed to handle customer communication anytime, anywhere.
SAP CRM Sales enables your business' sales force to be time efficient and productive.
It provides information that leads to actionable insight and maintains focus on effective operations.
SAP CRM Sales helps your business' sales force secure customers, then develop and maintain profitable relationships with them.
SAP CRM also provides a sales forecasting and analytics aspect that helps your business gather historical and predictive information.
It also provides ongoing processes for billing allowing your sales organization to most effectively manage customer demand.
Therefore, SAP CRM Sales has a lot of features such as dedicated interaction, full integration, comprehensive information and user-friendliness.
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Interacting with customers in sales:
Manage customer orders, quotes and contracts.
Opportunity management and path analysis
Commissions and incentives for employees in sales
SAP CRM Marketing
SAP CRM provides omnichannel marketing feature
Automate marketing planning and campaign execution
Consolidate key functions on a user-friendly and configurable interface:
Interacting with customers in Marketing:
SAP CRM Service
All aspects related to service order processing are supported by SAP CRM service starting from the initial response of the customer request to the confirmation & payment of the service provided for customers.
The SAP CRM service also provides your organization with quote generation and processing, service order generation, and agency assignment.
In today's market, customers are expecting more from organizations SAP CRM provides a complete end-to-end solution for your services business and helps you increase customer loyalty and increase profitability.
Using SAP CRM, Zara can manage its service cycle starting with service agreements and contracts, manage service orders, complaints and returns, and confirm service during the service cycle service.
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Service requests, service orders and contract administration
Management on an installed basis
SAP CRM Web Channel
SAP CRM deploys different channels such as Internet, telephone, direct sales and partners, agents, etc to optimize interaction with the company's customers.
In a B2B scenario, data is exchanged between two different organizations or business partners Communication between these two companies is done when a middleware is used like SAP Process Integrator PI/XI.
This scenario is used when a company wants to connect with many customers at the same time B2C scenario is done by campaign and target group.
The first and foremost thing is to find potential customers For this you can use external providers to get specific data and get new customers.
The next step is to segment potential customers according to their needs and create a marketing campaign that meets the expectations or requirements of this target segment.
This involves the channel executing the campaign and then executing the campaign.
For all supported channels, SAP CRM provides an intuitive and user-friendly interface for daily work.
Enable customers to make personalized requests and processes
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To interact on this software, SAP CRM provides customers with different channels of interaction:
Field service and offline users
SAP CRM Interactive Channels
Back-Office: Access to the Web Each case is related to service, sales and marketing, it represents a unique point of entry.
All relevant systems play business roles assigned to employees Field Service or Offline- User: SAP CRM offers several applications that customers can access anytime, anywhere. These applications are developed for handheld devices.
Interaction Center: SAP CRM provides customer service staff with a fully integrated interface with different communication channels such as phone, email, etc In addition, it includes other features that employees can used while communicating with customers to take notes and make transactions.
Web Channel Management: SAP CRM enables e-services, e-commerce and e-marketing.These platforms to provide personalized, reliable and convenient service to target customers.
This allows customers to access and study data and can request services and products anytime, anywhere Partner Channel Management: This interface is provided to facilitate collaboration with resellers, distributors, and retail channels Web channel management with conventional CRM to provide a complete solution for partner management.
Five benefits of SAP CRM
The goal of every business is to create and retain customers So let's see what benefits SAP CRM brings to businesses? Why should businesses use it?
1 You want to understand customers better: SAP CRM will interact with customers in a personalized way and will capture their information.
2 You want to stay in touch with customers: You can analyze call histories, create a sequenced list quickly, and measure them against customer expectations.
3 You want to make it easy to assign tasks: Thanks to the right system of customer interaction, each of your employees will know who, when and how they should interact.
4 You want to take technology to the next level without changing equipment: SAP CRM works in the cloud That is, all the data is stored in the SAP software, where some calculations are performed.
5 Your data will be safe: Data files are stored in the cloud You will lose it with the phone, or leave it somewhere.
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Training plan
CRM DEPARTMENT
Cashiers have a lot to learn, as the tills used in one Zara store are the exact same as the tills used in all Zara stores all over the world and things are done in a strict way where things are checked and double checked as to avoid discrepancies They are first introduced to the basics of putting through a sale on the till using both cash and cards, they are trained with real customers and not in a pretend scenario The next step is refunds once again with cash and with cards There is a head cashier in every store who trains the new cashiers He or she has a sheet to go through with the new cashier showing what should be learned and when over the new cashier’s first fourteen days of work.
Sales assistants do not work on the tills at all; they are floor staff They must learn all about the garments on the shop floor, know roughly where all items are and be able to advise customers making purchases They are trained by the managers of that particular section and by senior sales assistants They must be fully trained in the products delivered into the store and how to put them out onto the shop floor in a way that makes them look presentable and appealing The most basic of what they first learn is simply to fold the clothes on the shop floor in the correct way.
Recently Zara decided to run a competition in each of its stores in Ireland in which all of the staff had their picture taken and placed on a board in the staff room On this chart each
Department Sales department Customer care department
Warranty and maintenance department employee was awarded a star for completing different tasks like making sure their department was closed perfectly at the end of the day After about four weeks the employee from each department with the most stars on their chart was interviewed on why they would like to win.
An overall winner was then chosen from each store The prize they won was to spend the day with a regional manager of their choice, to see what their day-to-day job entails Each winner was then put into a draw to be the overall winner in Ireland and to win a trip to London This was an incentive and it gave the employees an opportunity to put their learned skills into practise This motivated employees to put in their best efforts.
When an employee in Zara decides they want to move up higher and train to become a manager there are a few steps they first must follow If this employee is a cashier, they must become a sales assistant and learn a lot more about the shop floor and about the garments than they would have known as a cashier They must also be given a full-time 37.5-hour contract if they have not already got one They are then given some more responsibility and learn about ordering and managing deliveries and transfers to different stores The step is to go for an interview with regional managers to see if they are progressing enough The employee is sent on training days in a bigger store where they learn management skills There may be more than one of these interviews before the employee may become a ‘responsible’. This is a kind of assistant manager role Notices of job vacancies within Zara and Inditex are posted for the staff to see in the canteen and staff rooms Employees who have already begun to embark on further training are the ones most likely to avail of these positions.
Zara also does training courses for staff that are already in management roles so the learning, training and development is never over This way they can maintain they are always able to compete with other retailers.
Zara also do an appraisal system in which employees are interviewed by the store manager and their own department manager This lets the manager know what stage the employee is at with their training and development and what they feel they still need to learn.
Employees are also made aware of the store target everyday This lets them know how they are selling that day in comparison to that day the previous year.
They also pay staff commission, which is a percentage of what the store takes in everyday that the employee works This helps to motivate as, the more you sell, the more you get paid!
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To conclude, training and development is a key aspect of human resource management There are many ways in which employees are trained including, education, training, learning and development These methods include training for the present time and for the future. Feedback is important to let the manger know if their training is being successful or not and allows them to improve it if needed.
Behavioural theory looks at what gets employees motivated These include things like setting goals, promotion, job security and incentives Motivation is the key to performance improvement.
Zara has a very effective way of training staff Sales assistants are trained quickly whereas cashiers learn more over a longer period of time This is because they have more to learn, as they are responsible for handling all of the cash for the store Managers are still constantly training and developing their skills too and receiving higher salaries rewards them.
Prevention and risk prevention plan
Risk issues
Assessing customer needs, an important step in customer care planning, is not flexible The risk of not planning has huge consequences: unprofessionalism, brand damage.
Risks in training and coaching staff Causing loss of sales.
Using CRM software is still poor The use of science and technology today is very important, when the age of technology is advanced Applying software or portals is the optimal solution in the digital age CRM software makes work easier Therefore, the risk encountered when using inefficient software brings weaknesses to businesses. Causing a loose system, not yet closely related to the field of marketing and brand management.
Customer care consulting service after purchase has not been able to connect with customers effectively.
Customer care service is hindered by "Dispersion of information" with the separation between the customer care system at the customer contact area and the applications in the administrative area.
Customers criticize and complain about the way employees advise customers.
Cultural differences in employee service to customers.
Preventive options
Reserve a separate budget for book care.
Regularly train the company's customer care staff to improve customer care skills.
Anticipate possible possibilities such as difficult customers, customer requirements for services, etc.
Prepare a plan to deal with customers when there is a change in customer tastes.
Refresh the customer care plan on a regular basis, if there is a change in company activities or the impact of competitors' policies.
Improve the means of customer feedback to ensure the best quality of advice,customer's personality Create an approach that puts customers at ease and gives positive feedback.
Conclusion
Customer relationship management is important in an organization where customer needs and expectations are identified in order to develop strategies to meet those needs It is important for an organization to identify new CRM systems to enable them to share information about their target audience in the marketplace in order to build lasting customer relationships. Collaborative and operational CRM are effective CRM strategies used in different organizations to ensure efficiency in the organization's activities to achieve the common goals and objectives of the organization.
The customer management strategy for Zara has been analyzed and given some advice above.
In terms of client relationship management, Zara did a fantastic job Hopefully they will keep getting better so that management is improved to the highest degree and has more success in the future.
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