Analyzing Zara's Data Collection Techniques for Strategic Advantage

This report examines Zara's data collection methods and their impact on business strategy. It highlights the importance of data collection in the retail sector for developing strategies and making effective decisions. The report focuses on Zara, a Spanish retail company, and how it collects information, the types of data collected (primary and secondary), and the sources from which it gathers data. Zara uses data related to daily sales, customer behavior, and product performance to evaluate sales and consumer preferences. Primary data is collected through feedback, questionnaires, and market research, providing insights into customer reviews and changing trends. The collected data is stored in databases for analysis, aiding in decision-making to improve product quality and address customer complaints. Findings from employee surveys indicate that questionnaires are a preferred method for primary data collection, offering insights into purchasing behavior and general trends, ultimately contributing to improvements in Zara's performance and strategic decisions.

DATA INSIGHTS

INTRODUCTION
 It is important for a company to collect data and information from the market so that
strategies can be developed. The data also helps in taking effective decisions.
Moreover, it shows number of products sold, customer of company in market, etc. In
retail sector there are many companies operating so competition level is high as well.
Thus, companies need to retain their customers. The report is based on Zara and how
they collect information. Beside this, what type of data is collected and from whom.

COMPANY
 Information plays a crucial role in giving an insight about market situation and
change in taste and preference of customers. Retail industry is expanded throughout
the world. There are many companies operating in retail sector. Also, there are
varieties of products offered by them to people. Moreover, market trends occurs with
change in needs of people. It is necessary for Zara to gather relevant and accurate data
so that decisions are taken.

CONT..
 Zara is a Spanish retail company known for its fashion products. There are total
10,000 stores of Zara all over the world. In UK there are total 64 stores of Zara. The
company tax profits earned are £51 in 2018. In addition the competitors of Zara are
H&M. Basically, company highest sales is in men fashion.

HOW DATA IS USED
 Zara collects data related to daily sales in stores and profit generated. Also,
information is gathered regarding what type of product is sold and which type of
customer has bought it. So, on daily basis they use data to evaluate sales

CONT..
 The company gather consumer data as well such as how many times they visited the
store, what product they liked, how much they spend, etc. By this it is easy evaluate
daily basis data. The information is gathered through survey and questionnaire. Then,
it is stored in database to analyze.
 Besides this, each store is having own server on where info is updated. The large data
set is stored in information system. Zara store data in segregated way such as area
wise, product type, sales, etc.

EXAMPLE
 An example can be taken where data was gathered regarding exchange or replacement
of defected product by customers. Here, data related to total number of complaints by
customers were recorded.
 It gave an insight about number of such cases each month. So, on basis of this
manager took decision that how product quality can be improved. Also, it enabled in
finding out total mistakes done.
 Another benefit in this was data of type of product and the location of store was
analyzed. Thus, in order to solve this issue manager used the info and took decision.

TYPE OF DATA
 Data and info gathered are of two types that is primary and secondary. Both are useful
in analysing market condition. Then, data is stored in database systems. As Zara
gather primary data through feedback and by visiting customers as well.
 It gives an insight to them that what are reviews of product, is there anything need to
change, etc. By conducting market research it is easy to gather data regarding change
in trends

DATA COLLECTION
 The employees of Zara gather primary data as well through questionnaire. It benefits
in finding out needs of people and their demands. However, data shows experience of
people by using Zara product. It also gives an insight about what change can occur in
trend or need of people.

FINDINGS
 Theme 1 Method to collect primary data
 Interpretation: Around 80% of the participants stated that questionnaire is the most preferred method for them to
collect the primary data. Out of 100 only 2 participants stated that though conducting a survey is time and cost
consuming but it gives more accurate findings.
 Theme 2 Information obtained from primary research
 Interpretation: Regarding the type of information received from the participant's majority of participants informed
that with primary research the purchasing behaviour of customers can be identified and it does not give any clear
idea of number of product sold. However, 40 people stated that can get information of sold products by using
analytical and statistical tools.
 Theme 3 Enough information from primary data collection to make decisions
 Interpretation -There was a complete mixed response regarding decision making from the primary data. The 50%
or study participants stated that with primary data collection decisions cannot be made as these are based upon the
perspective on only sample population. Contrary to this remaining 50% people stated that primary data gives
information regarding general trends so accurate decisions can be made by using it.
 Theme 4 improvement in Zara performance in UK
 Interpretation – It can be analyzed from graph that there has been improvement in UK performance. Out of 100,
75 employees said yes and 25 said no. The data gathered by them enables in taking effective decision.
 Theme 5 basis while collecting primary data and information - From above table it can be interpreted that out of
100 employees of Zara, 50 said they focus on age while gathering data and 50 said on gender. This allows
company to identify change in trends and take decision accordingly.

CONCLUSION
 From presentation it can be summarised that Zara collect primary data from market
through feedback. Also, managers gather data from market and analyze latest trends
in it. This information is stored in database and then decisions are taken.
 Basically, Zara focus on gathering primary data which is useful for them to analyze
information and segregate it. By this it is easy for company to make decision.

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