Impact of Digital Technology on Zara's Marketing Functions

Desklib provides past papers and solved assignments. This project analyzes Zara's use of digital technology in marketing.

RESEARCH PROJECT
IMPACT OF DIGITAL TECHNOLOGY ON MARKETING FUNCTIONS OF ZARA

Table of Contents
INTRODUCTION...........................................................................................................................3
AIMS AND OBJECTIVES.............................................................................................................4
LO2..................................................................................................................................................5
CONDUCT PRIMARY AND SECONDARY RESEARCH USING APPROPRIATE
METHODS FOR A BUSINESS RESEARCH PROJECT THAT CONSIDER COSTS,
ACCESS AND ETHICAL ISSUES............................................................................................5
P4 APPLY APPROPRIATE ANALYTICAL TOOLS TO ANALYSE RESEARCH
FINDINGS AND DATA.............................................................................................................8
M2 DISCUSS MERITS, LIMITATIONS AND PITFALLS OF APPROACHES TO DATA
COLLECTION AND ANALYSIS............................................................................................21
LO3................................................................................................................................................22
P5 AND M3 COMMUNICATE RESEARCH OUTCOMES IN AN APPROPRIATE
MANNER FOR THE INTENDED AUDIENCE......................................................................22
LO4................................................................................................................................................23
P6 REFLECT ON THE EFFECTIVENESS OF RESEARCH METHODS APPLIED FOR
MEETING OBJECTIVES OF THE BUSINESS RESEARCH PROJECT..............................23
P7 CONSIDERING THE ALTERNATIVE RESEARCH METHODOLOGIES TO VIEW OF
THE OUTCOMES.....................................................................................................................24
M7 EVALUATING CRITICAL REFLECTION AND INSIGHT THAT RESULTS IN
RECOMMENDED ACTIONS FOR IMPROVEMENTS AND FUTURE RESEARCH
CONSIDERATIONS.................................................................................................................25
CONCLUSION..............................................................................................................................26
REFERENCES..............................................................................................................................27
APPENDIX....................................................................................................................................31

INTRODUCTION
Information and communication technology is becoming the utility like electricity. It has plug in
the most effective experience that we face with the huge difficulty and getting oriented for the
seamless digital infrastructure. The day by day experiences for the implications of the ICT
budgets are constrained by the limitations through which the technology can be regardless with
the ambitious plans of the markets (De Mooij, 2013). The strategic relevance to the Fast Fashion
industry can reflect on the current and emerging trends of the market. This can be quick and
effective with the merchandise assortments that raises the important issues with the re-alignment
of the retail buyers and manufacturers. This can also help in adoption of the responsive market
conditions with the strategic trade and product groups which can help in supporting the trade
partnership and approaching to maximize sale and profit for the business by satisfying the needs
of the customer (Denscombe, 2014). The range of the customer management approach can be
responsive with the effective management and fast fashion changing.
Zara being the most influential Spanish fast fashion clothing and accessory retailers in the
Arteixo has directed on the subjective groups. The company was founded in the year 1975. They
are world’s largest apparel retailers in terms of the highest fashion groups that own the brands
with the Massimo Dutti, Pull&Bear, bershka, Oysho, Zara Home and Uterque. The Inditex
Company as the parent name for the company has total 7475 stores across the world. The net
revenue of the organization is around €25.34 billion in the year 2017 (Inditex, 2018).

AIMS AND OBJECTIVES
The effective utilization of the digital technology can help in increasing the business with the
advancement of the technology. This can differentiate the factor which is affecting the greater
form of the company. The directive changes in the business are however projecting the market
changes and sales of the organization (Kerzner and Kerzner, 2017). The impact of the digital
technology advancement on the marketing department of the Zara can be subjectively aimed in
the study.
The key objectives of the study are:
 To determine the utilization of the digital technology on Zara
 To evaluate the impact of the digital technology on the marketing functions of Zara
 To determine the productivity and growth index of the marketing department in the
organization with the effect of the digital technology

LO2
CONDUCT PRIMARY AND SECONDARY RESEARCH USING APPROPRIATE
METHODS FOR A BUSINESS RESEARCH PROJECT THAT CONSIDER COSTS,
ACCESS AND ETHICAL ISSUES.
According to the Inditex (2018), Identification of the fashion trend at the Zara, parent company
Inditex has gather the culture point. The links between the vendors and technology has processed
to fruitful deliverables. This can also pinpoint to the improvement in the ordering range of the
level of responsiveness of ZARA. The managers of the organization are the personal digital
assistant which can check the resources on the daily basis and appreciate with the order that is
fruitfully placed by the customer (Garrigos-Simon et al.,2012). The shaping of the designs in the
organization is carried out with the help of the information and communication protocols at the
Zara which can radically differentiate them from their competitors. The subjective change in the
business can help in spending the less than 0.5 percent (Gamboa and Goncalves, 2014). The net
revenue to the information technology can present the IT department at the account for only 0.5
per-cents. This can differ from the competitors who spend about 2 per-cent of the total revenue
on the information technology (Eskerod and Jepsen, 2016). This can be subjectively dedicated to
the IT workforce with 2.5%. Zara utilizes their human intelligence in order to meet the services
and come up with the hybrid models that help their stores to flow the effective functioning.
The managers for instance can utilize the information gathered from the concerning feedbacks
from the customer. This can straighten the fast changing demand of the trends with the desirable
techniques through which the company provides the company to imminent range less than the
desirable products. It is unlike the hybrid models with the competitors to rely on the most
effective information technology (Hayden, 2010). This can create the well managed inventories
at the reduced costs to the obsolete products and links with supply and demand of the business
with the nevertheless processes. The upgrading of the IT processes can be more reliable with the
management range of the inventory levels. This can help the human astuteness assisted with the
quick response to the cost advantage to the operations and assistance to the Zara with the primary
principles in the position being quick to the changing demand of the people (Hesse-Biber and
Leavy, 2010).

High tech mobile tracking systems can subjectively help in speeding up with the distribution
systems through which the numbers of the garments in the shorter space of the time can be
minimize with the labor force that can increase their productivity by cutting down the cost of
storage with the business in the long time (Erdoğmuş and Cicek, 2012). The use of the
information systems for the merchandising the back end processes can be originally targeted
with the help of the Zara in order to meet the supplies need and propose a new design to the
consumer expectations. This can avoid the bureaucratic structure which allows the system with
the improved quality and eliminating the waste with the increased productivity and ranging the
overall responsiveness to the business (Emery and Chang, 2017).
SECONDARY RESEARCH – LITERATURE REVIEW
The critical evaluation of the primary and secondary research methods can project on the
effective needs of the secondary research basis. The project can provide the relevant information
regarding the study. The literature review approach can help in understanding the impact of the
marketing functions on the advanced use of digital technology in Zara. The review of the
literature is subjectively available on the Google scholar, PubMed, CINHAL and others
(DeFranzo, 2011). This can provide the theoretical background information for the research
through which disproportionate results to the study can be projected. The positive results of the
study can be included with the inclusion and exclusion of the literatures with the assess
measures.
The lists of the information gathered through Literature review and primary research by survey
method are considered appropriate for the business research (Kim and Ko, 2012). This can
present the considerate range of the estimated cost and access to the ethical issues within the
planning of the sales growth for the business.
PRIMARY RESEARCH- SURVEY
Zara success is based on the unusual premises pragmatic through which the clothing retails can
be dependent on the technological innovation and user experience. The Inditex group can be
surveyed with the management of the stores and manufacturing of the garments (Kerzner and
Kerzner, 2017). The same strategic interventions are implemented across the locations of the

stores. They have limited their production measure in order to run in the unique style to the
change in its collections quickly.
The survey method has been evaluated to be the part of the primary research. This can target on
the volume of respondents regular visiting to the Zara organization. The total population which is
attracted might be too large so that the sample size of the 250 people are evaluated among which
the 150 respondents are subjectively involved in the meeting the relevance base for the study
(Kim and Ko, 2012). The influence of the digital technologies has regardless added advantage to
the base of the organization.

P4 APPLY APPROPRIATE ANALYTICAL TOOLS TO ANALYSE RESEARCH
FINDINGS AND DATA
The market research technique is applied to understand the marketing functions of the Zara
across the worldwide. This can help in benefiting the services that are provided to their loyal
customers. The impact of the digital technology has remarked the business to be served to the
customer with the help of the online portal for placing the orders (Kranauskaite, 2018). This can
set the bucking trends which help the marketing department to promote the range of the sale by
offering the discount on the products. The genuine long-term business stand out is possible only
if proper intervention and evaluation of the market has been undertaken.
Zara being the top most fashion hub has processed with the operations hub. The marketing
department of the organization small town nerve center which involves the Inditex’s decisions in
the process regarding the tech- related matters (Kwan, 2013). This can suitably work with the
specific facilities. The importance of the Zara being the predictive company for the immediate
adaption of the technology for saving the cost of inventory and expenses on the many fashion
products is the big investment made by the company. This has allows the customer with the
personalize customer experience and can barely overlap with clothing’s on their stores
(McGregor and Cartwright, 2011). There are different types of the data analytical tools available
in order to understand the impact of the digital technology on the marketing functions of Zara.
The tools can be utilized in the study for data analysis can wide range the applications and
industries through various programs. This can ensure the research groups with the effective data
collections (McNiff, 2016).
Control Chart
The graphs help in providing the relevance importance of the change in the market trends and
consistent variation in the process. This can direct on comparing the control limits to the
conclusions about the variation (Munthiu et al., 2014).
Survey

The data collected from the targeted groups of people of the Zara can direct on the marketing of
the Zara. Higher the promotion measure more stratified the customer attraction. This can usually
design the series of the experiments that is undertaken at the marketing department of the Zara.
The online experience of the ZARA is longer than the most of the fashion retailers channel. The
barriers can be designed with the unparalleled mode with the separate range of the services with
equally important measures to offer the customer (Neuman, 2013). The services with the same
traditional establishment of the stocks for the customer can project on the purchase of the
delivery hack with the customer those who pick with the up store in the firms that are
subjectively addressing the same and success to copy the Omni channel model.
The major challenge that Zara can face is the future maintenance of the competing challenges
with the e-commerce vendors which synergizes the statistics that are shown in the textile
industry with the second biggest source. This can direct on the key technological areas which has
recycled the materials with the same characteristics of that of the new ones. This has divested
with the considerable source in the endeavor (Parmenter, 2015). The company is working with
the internet physical stores. This can serve to the same services through e-commerce and
traditional establishment.
DATA ANALYSIS
This is the range of the examining the impact of the digital technology on the business functions
i.e. marketing of Zara. The use of the online survey method can project on the considerate range
of the target audience to around 100 (Sandler, 2018).
QUESTION 1

Marketing Sales Inventory Logistics
0
5
10
15
20
25
30
35
40
In which department do you work at Zara?
Job role
Response Table
Marketing 35
Sales 33
Inventory 17
Logistics 15
Total 100
The majority of the target base is 100 among which the marketing and sales department of the
Zara turns out to be more attractive towards the utilization of the digital technology (Potter,
2015). This helps in attracting number of the customer with the predictive range of the services.

QUESTION 2
What is your job role?
HOD
Manager
Team leader
Junior Executive
Response Table
Head of the department 1
Manager 20
Team leader 19
Junior Executive 60
Total 100
The study provides the survey of the department of the marketing of Zara. It consists of the 60
junior executive and 19 team leaders to handle the work. In order to schedule the task for the
members in the organization, managers can contact on the basis of the relevant information
(Saravanakumar and SuganthaLakshmi, 2012).