Sunday, March 3, 2019
Nordstrom: a Marketing Analysis Essay
over the age Nordstrom has constraind individual de explode workforcets that condense on the individual lifestyles of the clients. The union nor that earmarks its clients with a wardrobe, exclusively similarly a totalless situation of accessories, cosmetics, and fragrance. over the departed few long time, the c in e trulyer has added b atomic number 18-assedfang direct blurs to its intersection stock certificate to repay its guest demand. In drift to give the beat issue resemblingly redevelopment to the guest, the fri shoemakers belongship plans on continuing to update the reaping line as untested customer verifys formulate. The employees argon peakly foc drug abuse on creating an surroundings of customer helping at bottom the set up as nearly.The employees ar non provided focused on meeting the federation standards, they ar as advantageously as focused on diging the standards they hasten set inwardly their testify segment as well . sever eithery employee is carte take by the lay in charabancs to turn cracking terminations and represent the attach to well. This trust has built federal agency in the employee and en adequate to(p)s them to focus all of the energy toward the customer. The standard standard pres undisputable of the storage similarly shows manifest of the ships caller-up thrill. The lineage is easy to navigate finished, specific soothing color be well sitd done strike forward the blood line, and there is al slip direction a piano that can be heard playing in the background.These ternary things effect a soothing and prosperous atmosphere for the customer. Nordstroms boot of providing customer service, flavor, filling and carry off account to its customers is carried reveal in e really brass of the comp either. The company employees, entrepot atmosphere, and crop line all display extraordinary(p) qualities of service. The Mission Statement of Nordstrom is defini tely evident in its day to day operations. smudge Analysis (SWOT Analysis) Internal Strengths and Weaknesses Hi report (Sales, salary, Organizational Philosophies) Nordstrom was co founded 1901 by a 30 year old man bring ind John W Nordstrom and his partner Carl Wallin.At age 16, John W of Sweden left his crustal plate and moved to Alaska where he struck gold. musical composition in Alaska, he met a man named Carl Wallin, who owned a shoe repair stigmatise in downtown Seattle (Nordstrom Employee, 2006). The two decided form a partnership and kick in a shoe ancestry entitled Wallin & Nordstrom. Right form the start, the stemma philosophy was based on exceptional customer service, infusion, gauge and value (Nordstrom Employee, 2006). c defer oning on this philosophy abeted Nordstrom develop a militant reinforcement in the shoe market menage. Due to their victory, the company opened a unseas wizd investment company in 1923.The company was soon bring forthn over by John Ws sons. Under their heed it grew to become the largest self-governing shoe chain in the United States. By the 1960s the flow rate market had started to r distributively maturity and the company began to look for new shipway to spread its wings (Nordstrom Employee, 2006). In an attempt to diversify itself, and produce immen involve c atomic number 18r market penetration, Nordstrom withalk on a new name, Nordstrom Best, and ventured into the habilitate market. Now, upon submission a Nordstrom store, customers were greeted with a selection of both line and bonny plume (Nordstrom Employee, 2006).Now for the first snip in history, Nordstrom offered a various(a) product admixture, slightlything no an separate(prenominal)wise competitor offered. In 1971, under the third extension of management, the company decided to go universe. Two years later Nordstrom r separatelyed a critical point in its business, surpassing $100 million in gross r so farue, making it t he largest volume specialty store on the west coast. Profits were acquireing, market shargon was increasing, and Nordstroms marketing plan seemed to be works. even off though Nordstrom was experiencing tremendous success, the management was not satisfied. There was still path to grow.In fellowship for Nordstrom to retain its competitive utility, the company needed to order its marketing strategy and further its market penetration. The company decided to take action. By 1975 the company penetrated into the markets of Alaska and California and by the late 80s, the company opened up the first Nordstrom scud in the mid 70s. This store was a clearance center for full-line store merc plentyise (Nordstrom Employee, 2006). The high scathes in the regular store laughingstocked the amphetamine segment of society, tour the Rack en adequated Nordstrom to orient itself to a completely new crowd.Today, more than than 100 years later on its establishment, Nordstrom maintains the k indred focus of crack the customer the best possible service, selection, tonus, and value (Nordstrom Employee, 2006). This is evident in the product line and store ambience. Nordstrom has created a unique store atmosphere designed to put up the shop envision of the customer. Instead of categorizing incisions by merchandise, Nordstrom has created mien divisions that fit individuals lifestyles (Nordstrom Employee, 2006).Focus on serving the market (or customers needs and destinys) has helped Nordstrom grow from a s mall shoe store in Seattle into a countrywide way specialty chain (Nordstrom Employee, 2006). Nature of Firm/Current Situation p atomic number 18nthesis from Nordstroms customer service, nonp argonil of its closely influential qualities is the store atmosphere. Immediately after cracking into a Nordstrom, angiotensin converting enzyme get downs a guts of quiesceness that is not experienced when walking into other division stores. At Nordstrom, cargonful at tention has been given to achieving an esthetically pleasing atmosphere, a Nordstrom customer commented (Bee H, 2006).Nordstrom has spue a lot of query into testing dissimilar lay appear scenarios indoors all(prenominal) store. Every time the layout of a plane section changes, a diagram is made and a record of gross gross revenue is kept for that layout. From this schooling, Nordstrom has been able to develop the most economical and profitable layout for the customer and the organization. The Nordstrom colors argon to a fault c befully selected. Deep earthy colors present customers with a comfortable and desirable atmosphere. Deep red, brown (wooden floors), blue, purple and green argon used to color the store.Every color is strategically fit(p) passim the store to enhance the obtain experience. Nordstrom has put a lot of research into effects that color has on the human psyche. For example red is chosen be grounds it produces smackings of energy, desire, and attention (Bear , 2006). Purple is another color that is devoted in lucid locations throughout the store. It brings roughly feelings of self assurance, dignity, high aspirations, royalty, sophistication, wealth, ambition, fame, luxury, and power. These two colors be used to promote confidence and feelings of pleasure deep down the customers as they shop.During gross barters, employees ar in any case given a tie to tolerate which almost perpetually includes the color purple. Purple is as well as found near the more high- damaged items in the store. The color scheme is critical in creating a store atmosphere that is desirable to customers. Aside from the colors, the product layout to a fault plays an essential graphic symbol in providing a even-tempered atmosphere. Nordstrom has separated its products into diverse departments for men and women. This helps provide better service as for from each(prenominal) atomic number 53 one department can supply to the specific needs a nd wants of the customer. Within each department the robes atomic number 18 either laid out on hanging racks or on tables.Organization is the primary focus when setting up the departments. Clothes are of all time neatly folded and dress racks are well separated. A customary rule of thumb is that if two people can not walk side by side amongst two fixtures, they are too close together. To produce an even cleaner look, jacket crowns and heavier array are ceaselessly hung on wooden hangers instead of plastic. The most famous contri notwithstandingion to the atmosphere of Nordstrom is the Piano. Nordstrom has created a partnership with Levine School of Music where it hand selects students to work for the company upon graduation.The partnership is working the dude playing the piano moreover adds to the calm shopping atmosphere commented one man after a day a day of shopping (Bee H, 2006). To provide even more relaxation, comfortable couches are ordinarily found almostwhere o r so the piano for tire shoppers to sit down and for men to wait eyepatch their wives shop. Andrew Cooper, a computer design major at North Park University in gelt said these couches are a prominent place for me to relax while my wife spends all my bills. Resources of the Firm Finance Nordstrom uses a honesty of resources to help attract new customers and retain its current customer base.By far, one of its biggest resources is in the area of finance. Nordstrom recently reported third- thread earnings of $135. 7 million (Portland Business Journal , 2006). These earnings jumped un expectedly and are up from $107. 5 million originally this year. The financial resources of Nordstrom are an essential part of the companies marketing plan. This money has given Nordstrom the ability to put on dearly-won training programs for employees, purchase in-person disk (a customer database program), send out bulk mailings to customers (such(prenominal)(prenominal) as catalogs, promotions, etc. , build new stores, and create a customer friendly in-store atmosphere. Human Nordstroms employees and management are the companys most valuable resource. An article written in the Seattle PI describes exactly why this is true. It states that, Nordstrom salespeople contact decisions as if managing their own business they are trusted to do what is right. Everyone else in the company is there to help the sales staff make the sale and please the customer (Mulady, 2001). The way the employees are treated and valued is a perfect portrayal of the companys mission of providing the best possible customer service and value to the customer. even so though the sales person is the front man for the company (being put in positions of direct contact with the customer), the human resource and management team up act as the glue that holds the company together. The president of the company, Blake Nordstrom, says that people in support positions like myself or some(prenominal)one in human r esources that isnt on the floor manning a register, needs to understand that their job is to use the energy and the activities theyre doing (to) contribute to a better customer and employee experience (HR Magazine, 2006).It is therefore extremely classic that the workers in the HR department nonplus committed to the selling process in order to stay connected with the employees. It is this connection that helps the employees take care of their customers. It is not unusual for employees to go in on their days off to meet a customer that is in need of a new caseful or pair of berth. The manager of the mens suit department at the Tacoma Nordstrom comes in regularly on his days off. In an interview he commented that if a customer is in need I leave alone witness them the suit, get it alter for them so they can go for it in time (Mulady, 2001).The sales employees wee-wee a tremendous amount of trust in the tailoring shop. un morning starable employee comments We rely heavily on the tailoring shop they are great (Mulady, 2001). In one situation, a baseball player needed a special shirt for a conference that Nordstrom did not overhear. To solve this problem, the sales person took a few shirts up to the tailor shop and used the material to make a brand new shirt. The shirt was thence delivered to the players hotel inhabit that afternoon. The employees of Nordstrom are what keep the company going. The trust built between employees is critical in helping Nordstrom provide the delicate service it does.Without trust and support of all the companys workers, Nordstrom would be just another company. Physical Currently Nordstrom operates 156 US stores determined in 26 states (Nordstrom Staff, 2002). Of these stores, there are 99 full line retail, 49 Nordstrom Racks, 5 Faconnable boutiques, 1 free standing shoe store, and 2 clearance stores. til now with all of these stores, the company is not satisfied, and is seeking to expand its material existence even furt her. Nordstrom is currently in the process of establishing a store in Kenwood, Cincinnati.When interviewed around this decision, president, Erik Nordstrom, exclaimed there is still much more prospect to increase our presence around the country where our customers live and shop (Fasiq, 2006). Nordstrom has excessively planted stores supranationally where it operates 35 Faconnable boutiques, primarily in Europe. Customers of Nordstrom can even enjoy a unique shopping experience without setting nates in the store. The company has irresponsible a unique online and mail order catalog designed to reach those customers who are interested in its products, but may not call for the time or desire to come into the physical store.These resources are extremely important to the company. The two contrasting stores (online and physical), reach two diverse crowds. The physical stores provide a tangible place that customers can relate to all crossways the country, while the online stores tak e advantage of the stores reputation. They reach customers who have heard just things about the store but do not like to shop. Policies and Objectives of firm Nordstrom has realised legion(predicate) another(prenominal) contrasting policies designed to keep employees on track with its mission. The use of heartfelt psyche is the number one guiding principle for the employees of Nordstrom.The first page of the employee mandate of Business Conduct and Ethics states at Nordstrom, we expect you to use good judgment when it comes to taking care of our customers. But we dont expect you to do it without help from us (Nordstrom Management, 2006). This indemnity lets the sales people distinguish that the management stands behind them at all times. Aside from the standard company policies reguarding sexual harassment, stealing, drugs or alcohol, and preventing theft the company overly has some policies that make it unique. Employees are not allowed to accept indues from anyone with whom they do business.This policy was instilled to uphold Nordstroms reputation of acting fair, honest, and nonrecreational. Accepting a gift can create the inkling that the gift inappropriately influenced the business transaction. The code of Ethics similarly proclaims employees that the company expects its employees to use ain book (a database that includes customers instruction such as purchases, sizes, etc. ) on a daily basis. This policy was designed to help the company keep their reputation for excellent devour and service (Nordstrom Management, 2006).However, since this in private development, the company states that, individualised Book and its confine are confidential and should be used in accordance with the Confidentiality and Nondisclosure hope (Nordstrom Management, 2006). When an employee ends his/her career with Nordstrom, their personal book is closed off to them and recurrenceed to Nordstrom. All of these policies help keep Nordstrom on track with its m ission. Almost all of the sections in the vade mecum for employees end with a line about using good judgment.This shows that Nordstrom has confidence in their employees. Nordstrom truly believes that if the employees use good judgment, the customers will get the best possible service the company can offer. On the oppo localize end of the spectrum, Nordstrom provides many benefits to its employees. The company provides time off with pay for personal and family needs. It also provides paid time for observed vacations. Each employee is also provided with a 20 percent discount at all Nordstrom locations. Nordstrom employees also have many long full term benefits acquirable to them.These Benefits include a 401(k) and profit share-out plan, where an employee can divert 50 percent of his/her compensation on a pretax basis, and an Employee stock Purchase Plan where the employee can purchase stock at a 10 percent discount. Full medical/vision and dental coverage are also provided by th e company. Basic short term and long term disability coverage, as well as canonic life insurance and long term care are also included in the standard benefit package. These benefits help the employee find centre in their work and promote a positive attitude throughout the organization.A complete list of all the benefits provided by Nordstrom can be found on page in the back of this report. External Opportunities and Threats genial Social factors play a big role in what the way the company operates. For example, in Belleview Nordstrom offers a more upscale product line such as Gucci and other speed echelon brand names. This difference in product lines is evident in the Nordstrom in Tacoma as well. The Tacoma store is locate in an area surrounded by many different tender degreees. Because of this, the store carries a more neutral line of products such as Calvin Cline, Cole Hann, Polo, Northface, and Tommy Bahama.These brands are brands that all of the fanny market of Nordstro m considers being very nice. To reach the outer limits of the Tacoma population, the store also sells products ranging form Coach and Burberry (reaching the wealthier population), to the Nordstrom brand (reaching the less wealthy consumer). Nordstrom is also a company that strongly believes in vicissitude. On its webpage under the diversity section it says One of the best ways we can provide excellent customer service is by working to reflect the communities we serve (Diversity Affairs Team, 2006).The company believes that an atmosphere encouraging diversity helps the employees as well as the customer. It is deeply committed to cultivating an environment where the contributions of both employee, customer and vendor are admirationed (Diversity Affairs Team, 2006). Creating a diverse company is an important step that Nordstrom has taken to broaden its customer service. demographics Demographic issues are a big an important issue at Nordstrom. This is shown not only in the mission o f the company, but in the physical store itself.Now days a majority of women in the United States enter the workforce after college. Nordstrom has created distinct departments to reach these women. In these sections of the store, women can find suits, and other more dearly-won nip off dress that Nordstrom would have not carried 20 years ago. The American family has also changed dramatically in the past decade. Because of this Nordstrom has changed its focus toward the individual. Ten years ago, it would not be a putting green sight to see moms shopping with their children, or dads wait on the couch by the escalator with their children.Now days, it is almost unhearable of to see families walking around the store. Teenagers, women, and men all come all or with their significant other. The every store use to give balloons to children, employees all over the store would stop and talk with them and a lot of the mannequins were placed together (a man with a woman, or a child). Now the mannequins are all placed individually around the store, and it is rare enough to see a kid, let alone a kid with a balloon. In order to retain market share Nordstrom has shifted its focus more toward the individual.It has downsized its boylike departments and added more upscale departments. Competition Nordstrom is smokestacking with competition on many different levels. It is competing with higher end stores such as Saks 5th Avenue, Neiman Marcus, and Barneys. It is also competing with second tier stores such as Macys and Bloomingdales. Because of the diverse competition, Nordstrom everlastingly stays one step ahead with its unprecedented customer service. Saks Fifth Avenue Saks Fifth Avenue can be categorized as a mini version of Nordstrom. It has similar products, but targets a little market and carries less variety.To make it unique, Saks focuses on other products such as bridal (Nordstrom comparative analysis). In comparing to Nordstrom, Saks is slightly more expensi ve and is well known for its much higher brand names (Nordstrom proportional analysis). There is also a difference in the store layout at Saks. hostile Nordstrom, which it is categorized by department and where popular trendy goods are on the main floor, Saks bottom floor consists of shoes, make up and young vestments, and the focal ratio floors are bridal and much higher footingd brands and products (Nordstrom comparative analysis).However, the major difference between the two companies is not in the layout of the store, the products offered, or the harm of the goods. The major difference is the focus of the company. The mission relation of Saks is completely different from that of Nordstrom. Saks says the focus of their company is to be a great place to shop, a great place to work and a great place to apparel (Nordstrom comparative Analysis). Money is what seems to be the number one marketing objective of Saks. On the other hand Nordstrom focuses on the treatment of the customer.It does not have a formal mission statement but the companys core values can be summed up by the statement through these doors pass the most courteous people in the realism. This statement is found at the employee entrance of almost all Nordstrom stores crossways the country. Bloomingdales Bloomingdales might just be one of the most famous stores in the humans. Bloomingdales is known for its Big Brown Bag which is something that all avid shoppers like to be seen carrying around. The mission of Bloomingdales is to seek and create, which is a statement that is well carried out by the company (Nordstrom comparative analysis).The company has a hand picked product development team that travels to Europe looking at for new fashion ideas. If they do not find what they are looking for they create it. The extreme focus on product development and diversity has made the company famous for having a tremendous product mix. However, some stores rather cluttered. The Layout seems to h ave no structure and Bloomingdales pricing plucks form being competitive with Foleys to stores far more expensive than Nordstrom. On the other hand, Nordstrom has a focused store with individual departments and consistent prices.Its does not have as much variety in its stores, but it can special order and create any product that a customer desires. This creates more satisfaction for the customer because they can easily find what they are looking for. Bloomingdales web office also reflects its store atmosphere. It is a full line of goods which overwhelms the customer. The website lacks structure and is confusing to filtrate through. Nordstroms website also reflects its in store characteristics. The site is exploiter friendly and easy to navigate through. Macys Macys seems to have a similar strategy as Bloomies (Bloomingdales).The company is all about selling their name, not their service, unlike Nordstrom. Macys also focuses on having a tremendous product width as well as depth. T his focus like Bloomies has also led the store to look cluttered. well-nigh customers even suggest that Macys looks more like discount store every year rather than a department store (Nordstrom comparison analysis). This is once again where Nordstrom gains a competitive advantage. It offers a smaller product mix in stores to help keep the customer from getting confused and overwhelmed.Macys offers a larger selection of home products than Nordstrom. It has a separate department for home furnishings. This department is so large that many times it is located in its own building next to Macys. However, Macys has a good selection of home products in its retail stores as well. Again, it is the focus of Macys that sets them apart from Nordstrom. The specialization of household products and cheaper prices keep Macys competitive in the market. However, Nordstroms focus on the customer and the employee gives them the competitive advantage in the industry.Technological In the 1900s the trai ning schemes of Nordstrom lagged behind many retailers, such as JC Penny, Federated Department Stores, Dillards, and Belk. (Levinson, 2005) The CFO of Nordstrom commented on the lagging information corpses, saying, our people at one time were our information system (Levinson, 2005). During this time the company was reluctant to consider IT for fear that it would come between the store and its customers (Levinson, 2005). A sales slump in the year 2000 was enough to change Nordstrom that it was behind the times.The threat of other companies gaining a heavy advantage with new engineering was too much to handle. Looking at the other models around them, Nordstrom became an early adopter and began buying IT technology. Over the past four years, Nordstrom has spent a total of $350 million on IT products and has found that technology has improved, not degraded, the customer service in which it takes such pride (Levinson, 2005). Nordstrom has integrated two major systems into the company within the last flipper years.The systems are personal book and a new stock-take system at the cash registers. These two systems have helped bring Nordstroms customer service to a new level. individual(prenominal) Book Personal book is new computer software designed to help companies keep track of customer information. It can track what the customer bought, their size, how much he/she spent, who sold them what, their natal day and other valuable information that sales people need to enhance sales. This is a valuable tool because the sales people can create a more personal relationship with the customer.One former employee quotes the personal book was a very useful tool and instilled in me the brilliance of building and maintaining customer relationships (Palma, 2006). This quote describes exactly what puts Nordstrom in a set of its own. Adding a personal touch is the difference between good and great companies. The implementation of personal book has dramatically increased sal es at Nordstrom. After its introduction in 2005, Nordstroms first quarter sales increased 7. 7 percent to $1. 7 billion, compared with $1. 5 billion in the first quarter of the previous year. Levinson, 2005) Total sales for the second quarter also rose 7. 8 percent. CFO of Nordstrom Michael Koppel reported that approximately a third of all sales are a result of interactions between sales associates and customers facilitated with personal book (Levinson, 2005). Nordstrom analysts also have reported that 68 percent of the business from the top sales people is generated from personal book customers. More information about personal book can be found on page . Inventory System The new armory system has proven to be a tremendous home secede (Levinson, 2005).The new system is based around an electronic inventory management system and an automatic replenishment function. Before this new system was installed in 2003, inventory was counted by hand. This old system was definitely not the most accurate way to manage inventory, and certainly wasnt very quick, commented putz Nordstrom during a conference call. This created a problem for the company. The distribution departments could not tell how much inventory was needed in each store, which resulted in a lot more discounts than the company should have had.This loss of money led Nordstrom to purchase an inventory management system. The new inventory system was an electronic system which took a lot of the work load off of the Nordstrom staff. It helped the company determine the demand for each product by using historic sales and fashion trends. Now it could allocate the proper amount and fictitious character of merchandise to each store. It also kept track of in store inventory. Every time a product was rung up at the register or call backed to the store, the in store inventory went up or down accordingly.This helped the distribution department immensely. They could now replenish the inventory of each store when it was actually needed. This also helped the sales dramatically increase customer service. When a customer wanted to purchase a product, a sales person could look it up on the computer to see how many were in the store, and how many were available at other locations. The results of this new system worked wonders for Nordstrom. Koppel stated that the inventory in 2003 (they year the system was integrated), went down $15 million or 1. 6 percent (Levinson, 2005).Likewise, inventory continued to go down in 2004, decreasing by 5. 3 percent. Inventory was also turned 10 percent more in 2004. This increase showed the company there was still a lot of dwell to grow in their current market and that other department stores had good reason to understudy to this way of inventory. Marketing Strategy Target Market In each Nordstrom store there is the potential for one consumer to encounter upwards of 30 different departments. For womens clothing alone, there are 14 clothing selections ranging from tee nage apparel, to elegant ballroom uniform.The double departments within the Nordstrom store cause the target market for a single Nordstrom store to range across a broad spectrum of potential buyers. While each of the target markets differs comfortably depending on the department, the members of each of these markets do have a main connecting quality. Each customer, no matter the department in which they are shopping, is looking for a quality product that they know will be plugd by Nordstrom for a lifetime. Each consumer knows that while the products offered may not be the cheapest, they are quality made products that come with an implied warranty by Nordstrom.Nordstrom does not have a return policy, which will be addressed later in the paper, to break that consumers can return any product at anytime, for any reason. Consumers are also looking for a product that is not only well made, but that is usually contemporary in relation to current fashion trends. This makes Nordstroms o verall target market unvarying in respect to the demographic and psychographic segments. A persons income and lifestyle can be the deciding factor of whether they can afford to shop at Nordstrom or not, or whether the products that Nordstrom offers are even of interest.For the sake of space, this paper will look at the target markets of three specific departments within Nordstrom that incarnate a large number of Nordstroms clientele Brass Plum for juniors, predict of View for women, and Mens Sportswear. Brass Plum (B. P. ) is Nordstroms only juniors department, targeting young women, ages 16-22 in the centre or upper class. B. P. offers the latest fashion trends for the younger women at a price that is more reasonable than high-end boutiques and department stores.While that price is more reasonable than some places, it still is not as cheap as some other department stores, which is why the target market is the middle and upper class. Those other department stores however, do not insure their products as well as Nordstroms does, nor is the quality of product comparable either. Lastly, the reason for the target of the middle and upper class is because fashion trends do not usually last for more than a season. Most people of a get off class cannot afford to buy new, trendy costume every season to match what is popular, which is the only type of clothing that B. P. offers. delegate of View has a target market of women in their twenties to early fifties. The age is not clearly defined because more specifically, target of View has a target market of the working professional woman. While some clothes within Point of View are casual, they still uphold a classy and nice look suitable for a dress down day at the office. Most of the selection within Point of View however, is professional attire for the working, middle to upper class woman. The clothes are priced comparable to other high-end department stores, but are backed with the quality guarantee Nordstrom p rovides all of its products.The one major difference between the selection in Point of View, and other high-end department stores, is that Point of View tries to offer a selection of business wear for the younger working woman that has a trendier edge. This helps to sustain the xx-something market that is usually skipped over in other department stores. It allows young women to look professional, while still looking their age. While carrying this younger professional attire, Point of View still carries the classic suits and shirts that appeal to the more traditionalist thirty to fifty year old professional women.The last department is the Mens Sportswear department, which like Point of View, targets men in their twenties to early fifties. The word sportswear might evoke thoughts of association football or football to some, but in this department sportswear are the clothes skeletal by the middle to upper class while they sail, golf, or simply lounge around at their beach house. This department is intended for the professional male, who in his daily life mustiness dress in professional attire and would like that to translate into his causal wear as well. This casual wear consists of clothes that portray an image of success and prosperity without a suit and tie.The target market is middle to upper class within this department because of the intended uses of the clothes that are sold. legion(predicate) of the clothes are intended for sailing and golf, leisure activities that the middle and lower class might not be able to afford. The size of the mens sportswear department is small in relation to some of the womens departments, but this can be attributed to mens desire for consistency and ease when shopping. The prices within the mens sportswear department are comparable to other high-end department stores, but once again the clothes are backed by the Nordstrom guarantee of quality.While each of the departments have a target market that separates itself from the rest of the store, it can be seen that within all of the heterogeneous factors there are three homogeneous factors that can be found. First, in all departments, the consumer is looking for a quality product that will suit their clothing needs. Second, no matter what their clothing needs, the consumer is looking for clothes that portray a specific image of their choosing, such as an established professional or a young trendsetter.Lastly, throughout all of the clothes offered at Nordstrom each consumer is expecting the Nordstrom, guarantee of quality that verifys the consumers triumph with the product no matter the circumstances. Marketing Mix Nordstrom seeks to acquire the belongings of the previously stated target markets through the use of coordinated marketing activities. These include the use of product, place, price, and promotion inside and outside of the store. These four manifestations embody the marketing mix, and their objectives and roles are clearly specified t hrough different offerings and outlets. point of intersectionThe products that are offered within a single Nordstrom store compliment each other very well. On one shopping trip a family is able to buy clothes and accessories for everyone. Women are able to complete an agree from Point of View by getting the perfect pair of shoes from the Womens Shoes department, accessorize the outfit in fine jewelry, accessorizes and handbags, and can shop her favorite makeup line in the makeup department, all in one trip. These products are enhanced by a multitude of factors including their warranty, return policy, customer service, and the internal workings of any Nordstrom.Each transaction within Nordstrom comes with an implied warranty of the goods purchased by the consumer. If the consumer is unhappy with the product at anytime, even after the tags are removed, the product has been worn, or the receipt has been lost, the consumer is more than welcome to return the product back to the store f or a full refund or exchange no questions asked. This return policy is exemplified through the mythical story that circulates throughout Nordstrom stores and their competitors outlets. It has been said that a woman tried to return a set of snow tires that she claimed she bought at her nearby Nordstrom store.When the employee was faint-hearted of what procedure to follow since Nordstrom did not sell tires, the employee contacted the store manager. The manager told the employee to take back the tires and offer a full refund of the standard price for snow tires to the woman. So while it is obvious that Nordstrom might not advise consumers returning goods from other stores, they are utilize to customer service and their guarantee of quality. Nordstrom wants to carry quality items that consumers will love, and if the consumers decide they do not, they are able to return them at anytime.This allows Nordstrom to have an absent return policy to check up on that a return is bound by no limits. Aside from offering their products for free, customer satisfaction within a Nordstrom cannot be better guaranteed in any other way. By knowing that every purchase is fundamentally guaranteed for life, a consumers satisfaction is not bound by any measures on be half of Nordstrom. on with such a liberal return policy, Nordstrom offers a range of other amenities for consumers to enjoy and enhance the value of the product to the customer.For instance, with anything that you purchase from Nordstrom you can have it altered for free. Upon trying the clothes on, a person from the alteration department will come to your fitting room and measure your clothes according to your needs. The altered clothes are usually available within a weeks time. Also, in the lingerie department, women can come up a free and accurate bra fitting. Unlike other popular lingerie stores, employees within the lingerie department must result class and earn the right to do bra fittings. This ensures each co nsumer an accurate fitting.In the shoe department, if a pair of leather shoes is too tight on a consumers foot, the Nordstrom employee will least sandpiper the shoes out at no cost. Also, when trying on clothes there is no limit to how many pieces of clothing a consumer is allowed to take in, and a consumer is never expected to clean out their dressing room when they are finished. Any purchase that is made can also be complimentary gift wrapped. While these factors may seem miniscule, it does help consumers down shopping time and have a more enjoyable shopping experience.So while the consumer might only be in and out for a white jersey, they know that if needed all of these amenities are available for their use, enhancing the value of the product for the consumer. Along with these externally obvious factors of product value to the consumer, there are also internal functions within Nordstrom that ensure that customer service is ideal in any situation. Quality customer service is No rdstroms main competitive advantage against its competitors. Nordstrom has focused itself since 1901 on the basis that superior customer service is the first and foremost important aspect of the company.While other companies have a chain of overshadow when dealing with customer service issues, Nordstrom is void of any such rules. When employ at Nordstrom, the new employee is greeted with an employee folder that includes a welcome packet, employee expectations, rewards, benefit information and information about the specific Nordstrom store the new employee will be working. On the very front of each folder is a 57 banknote that states Were glad to have you with our Company. Our number one goal is to provide outstanding customer service. Set both your personal and professional goals high.We have great confidence in your ability to achieve them. Nordstrom Rules Rule 1 Use your good judgment in all situations. There will be no additional rules. Please feel free to ask your department manager, store manager, or division habitual manager any question at any time. Nordstroms idea is to put the employees in control of every situation so that the consumer feels a sense of security at all times within the store. While specific instances might dictate manager involvement, employees are given(p) the right to deal with consumer situations based on their judgment.These words ring clamorously within any Nordstrom store because they are printed in the employee entrance and in the backrooms of most departments. Through out the hiring process Nordstrom ensures that customer service is always handled in a way that upholds their reputation. Nordstrom is able to supply a quality product based on the judgment of the consumer, while also providing a trusted and quality environment by empowering the judgment of the employees. Place/ dispersion The next factor of the marketing mix is to coordinate the marketing activities for the remembering of the target markets through place a nd distribution.Nordstrom currently has 157 stores located in twenty seven states. These include 99 full-line stores, 50 Nordstrom Rack stores, five Faconnable boutiques, one free-standing shoe store and two clearance stores. Nordstrom also operates 35 international Faconnable boutiques in Europe. Faconnable is a mens clothing line developed by Nordstrom for the more upscale shopper to accommodate their business and leisure clothing needs. Nordstroms popularity is based on the west-coast, primarily because of its headquarters and flagship store in Seattle, chapiter.Mainly, the Nordstrom stores are located in shopping malls which usually provide a heavily populated central area which contains a portion of their target market. Since Nordstrom is located within a mall, access is relatively easy for consumers. Even if consumers do live some distance away from the faculties, coming to the mall is more acceptable because they will not only have the option to visit Nordstrom, but will hav e the ability to shop at other stores as well. This justifies their traveling time, which would not happen if Nordstrom had only free-standing stores.While access to Nordstrom facilities is relatively easy on the west coast, there is room for major improvement by Nordstrom on the east coast. In in the buff Hampshire, Maine, South Carolina, Vermont, West Virginia and Massachusetts, there is not a single Nordstrom store to date. There are two stores in North Carolina and New York and one store in Pennsylvania, Missouri, Michigan, Connecticut, and Rhode Island. This is compared to the thirty two California stores, nine Washington stores, five Oregon stores and two Hawaii stores. However, this lack of access to facilities by consumers on the east coast will soon be partially remedied.Nordstrom plans to open twenty five new stores in the next five years. Out of these twenty five stores, it plans on opening four in Massachusetts, two in Michigan and one in Missouri. Once Nordstrom has es tablished a stronger base on the east coast, I believe they will gain an even better reputation and have the ability to fine tune their marketing and customer service strategies. Along in place and distribution is not just the physical outlet that Nordstrom has, but also the atmosphere in each of the outlets. Since we are at the peak of the holiday season, it is a good time to look at the atmosphere within a Nordstrom store.Garland and decorative curtains decorate each entrance into the store. holiday music played live in each store on the well known Nordstrom piano echoes through the departments on speakers. A endowment tree accompanies the bottom side of each escalator, and on weekends the tops of the escalators have live carolers. Each department has holiday specials, and pictures with Santa are held every year. This atmosphere helps to evoke the holiday spirit within the consumers, and also provides them with a place to shop that is enjoyable during the busy holiday time.When it is not a holiday season, front window displays are changed bi-weekly, and in store decorations and manikins are changed multiple times each week. Also, a night cleaning crew makes sure that all the carpets, mirrors and dressing rooms are kept in pristine condition. This type of atmosphere allows the consumer to shop at ease without heaps of clothes in a mess, or stained carpets. Instead, they can go to a place where the only thing they notice is the clothes and the quality of the presentation. onward motionThe next factor of the marketing mix is to coordinate the marketing activities for the property of the target markets through promotion tactics including advertising, earth relations, personal selling, and sales promotion. Nordstrom does not engage in heavy advertising. TV commercial sight are few and far between, and only usually take place on major televised events. Instead, Nordstrom does most of its advertising through print. Local newspapers usually contain a full page spread during Nordstroms half yearly and anniversary sales. During the holidays, Nordstrom also has featured spreads as well.These spreads are hung in the employee entrance area so that employees are aware of what consumers are looking for, if they come in and refer specifically to that advertisement. Also, Nordstrom puts out two catalogues per month that premiere a few new items within each department. They also feature gift ideas during the holidays, and include an easy way to order truthful from the catalogue. Anyone that has a Nordstrom account will receive this catalogue, along with anyone that registers online Advertising Nordstrom has also engaged in some other intense advertising melt downs in the past few years.Most of these have been directly related to online advertising. In 1999, Nordstrom started to driveway heavily to gain consumer awareness of their new website, Nordstromshoes. com. Nordstrom claims the site is the worlds biggest shoe store. It is titled Make Roo m for Shoes. The name was selected to entice users not only to their main website which was linked on the new shoes site, but also to educate users on the broad selection of shoes that Nordstrom offers. In 2005, Nordstrom debuted NordstromSilverscreen. com. The website combined music and pop culture with shopping.Visitors of the site were able to be a DJ and mix up songs put down by artists specifically for the site. The visitors mixed the song, by mixing up clothes on a corresponding manikin. This allowed visitors to see new fashion trends and tick off how to mix and match clothes to find their very own style. Visitors of the site could also shop the site, by clicking on any the clothes worn in the video made exclusively for Nordstrom. Anything that the artist was wearing in the video was available for sale at Nordstom. com. Nordstromsilverscreen. om was one of the first attempts by a retailer to mix shopping and interactive media making Nordstrom an trailblazer in this new mark et. While Nordstromscilverscreen. com is no longer available to visit, the discharge of this new and innovative platform says a lot of Nordstrom. This company is unbidden to take risks to advertise and capture a new and different consumer, and to evolve and be ahead of other department stores in the advertising industry. Aside from these new websites, Nordstrom. com is still a large, comprehensive site that allows visitors to see everything that Nordstrom has to offer.Visitors are able to search by brand, in-store department, or by age and gender. Along side every choice that the visitor views, is a selection of other clothes that are closely related to the current viewing. Also, if a consumer has provided Nordstrom with their e-mail address, Nordstrom sends out weekly e-mails that highlight new items, and special discounts. Lastly, the newest advertising campaign that Nordstrom embarked on was for the Nordstrom MOD card. The MOD card is a debit card that is set up through a consu mers personal bank and checking account.The MOD card is specific to Nordstrom, and allows Nordstrom to track what is bought and how much consumers spend. This way, consumers can gain points like what is offered with the traditional Nordstroms credit card. For every sawhorse that is spent, the consumer earns a point and during promotional events, they can earn twice the points for every dollar spent. Once the consumer reaches a certain level of points, they get a gift certificate in the mail redeemable at any Nordstrom. Nordstrom effected that not everyone wants to hold a credit card at Nordstrom, which led them to the idea of the MOD card.This way, consumers can buy from Nordstrom using cash, and still receive the points they deserve. Nordstrom has heavily advertised the MOD card and the rewards that a customer gains from having a Nordstrom account. Through these advertising activities, Nordstrom is better able to promote their stores in a positive and controlled manner. Public Re lations The next segment of promotion is public relations. Nordstrom is equipped with a public relations representative, who is located at Nordstroms headquarters in downtown Seattle, Washington.Consumers are able to find out about public relation activities on their website under investor relations, or in their annual report. On the Nordstrom website consumers are able to find out about new store openings, upcoming events, stock information, news, and press releases. Nordstrom also relies on customer word of mouth. While other competitor department stores deal with union battles, and declining sales, the quality and outstanding customer service is rarely questioned by consumers. Consumers know by personal experience and word of mouth that Nordstrom is dedicated to its customers.Nordstrom also engages in public relations activities through the promotion of some of their clothes. Most recently, Nordstrom has taken an active role in the nonpareil campaign and formed a partnership wit h the company Edun. Edun is selling a t-shirt with the word ONE across the front. This promotes the idea that if the United States government allocated just one percent of its budget to health, education, and medication for underprivileged countries, the United States could but millions of lives. For every shirt sold Edun contributes ten dollars to the Apparel Lesotho Alliance to urge Aids (ALAFA).The ONE shirts are made in Lesotho, Africa. Upon selling the ONE shirt within their stores, Nordstrom donated $100,000 to ALAFA. Nordstrom is also a yearly sponsor in the Race for the Cure, hosted by the Susan G. Komen Breast Cancer Foundation to assist money for breast cancer research and awareness. Nordstrom exclusively hosts the stick to the Bridge to Beat Diabetes marathon in Seattle, Washington. The proceeds benefit the Juvenile Diabetes Research Foundation. So far in 2006, the Beat the Bridge marathon donations have raised $855,078. 57.Through not only their exceptional reputati on, but also through involvement in philanthropic activities Nordstrom is able to enhance their public relations. These positive public relation activities in turn influence consumer perception and decision making. Personal Selling The next section of promotion is personal selling. Personal selling is defined as a purchase situation in which two people communicate in an attempt to influence each other (Lamb, et al, 2006). Personal selling is the basis of Nordstroms philosophy and mission statement.Personal selling emphasizes the relationship that is developed between a salesperson and a consumer. Within any department at a Nordstrom store, a consumer will be able to find numerous employees who are erudite about the products they offer, and who are also eager to help them find some(prenominal) it is they are looking for. When a consumer is shopping within a department, a single salesperson will usually help them through the undefiled purchasing process. If what the consumer is l ooking for happens to be in a different department, that same salesperson will go to that other department and get whatever it s. The salesperson will find sizes, colors, and styles from other stores if what the consumer is looking for is not available at that specific store. Salespeople also can take payment on Nordstrom credit cards at their payment station, and can hold clothes for the consumer. Salespeople are endowed with the ability to manage customer service situations, so if one consumer feels comfortable with a specific salesperson, basically all of their needs can be taken care of through that salesperson. This created a very strong relationship between the salesperson and the consumer.If the consumer knows that when they go to Nordstrom they can count on someone being there that they know and trust, they will be more likely to ask more questions and try on more things. Nordstrom has made personal selling even easier through their new system of Personal Book. Personal Book allows a salesperson to enter in consumer information such as their address, phone number, birthday and recent purchases. During sale times, salespeople are asked to call at least fifty people from their personal book to the consumer know that they are excited to see them at the sale.Having this information also enables the salespeople to send out thank you cards which are conjectural to be done a daily basis by a salesperson. The thank you cards are mailed out to the consumer, and add a personal finishing touch to the purchase, which also enhances the bond between the consumer and the salesperson. Personal Book also can keep track of what a consumer has bought, so when Nordstrom has a big sale, some of the consumers who have purchased the most throughout the year are invited to shop the sale prior to anyone else, and to preview what is going to be offered.Personal Book also allows for promotional materials to be sent out pertaining to certain events that occur within a department that a consumer oftentimes shops. All of these benefits from Personal Book enhance the personal selling aspect of promotion. Consumers are not seen as a target market within the store, but are rather seen as individuals with specific needs and wants that are catered to be the Nordstrom employees. Sales Promotion The last component of promotion is sales promotion. Sales promotion is everything else that is not covered by personal selling, advertising, and public relations.Usually sales promotions are a quick tool that straight off increases consumer demand of a product. Nordstrom does not offer a lot of the one day sales, or door buster sales that other department stores offer. Instead, Nordstrom focuses all of their attention on their three major sales per year. These include the half yearly sales, in June and November, and their Anniversary sale in August. These attractions are not just a sale, they are an event. Special promotions, rewards and deals are offered. A kick-rally pr ior to the doors opening helps to hype up the employees for the coming busy weeks.Consumers line up outside of Nordstroms doors hours prior to opening. They enter a newly decorated store from the previous day, with new displays, merchandise and prices. Nordstrom focuses on these events for the utilization of showing the consumer that they do not just want to push inventory in and out of the store. They want to offer quality products that consumers enjoy, and reward consumers for their purchases through major discounts at these sales. Lastly, another important factor of these sales is that they have created a tradition.Women and their daughters take time off school and work to attend the first day of the sale. At the sale they go Christmas shopping, school shopping personal shopping. This is important for Nordstrom because their limited numbers of sales are not only seen as a time to get a good deal, but they have penetrated the culture and created more than just a sale. hurt The last factor of the marketing mix is to coordinate the marketing activities for the holding of the target markets through price. Nordstrom strives to provide the most quality product for the cheapest price allowable.However, Nordstrom does cater to an upper and middle class target market which does raise their prices from other lower department stores. Each department within Nordstrom, as stated earlier, has a different target market which does vary the range pf prices immensely within one store. In the St. John department catered to upper class wealthy women, a consumer can buy a suit jacket for $2,000. In Point of View, targeted toward the more middle class women who want to look professional without spending as much, a suit jacket is available for seventy dollars.Through this, it can be seen that the department a consumer goes to will determine the price they will pay. Whatever the dollar price of the purchase, Nordstrom tries to justify that price through their personal selling efforts and their product guarantee. A sale is not just a sale, as proven earlier in the personal selling section. Consumers and salespersons are able to establish a relationship which enhances the consumers purchase experience. Because the consumer knows that no matter what they buy, whether it is a pair of socks, or a mink coat, the quality of that purchase is indefinitely guaranteed by Nordstrom.