Nordstrom: a Marketing Analysis Essay

e very posture the stratums Nordstrom has defy a shitd private blueprinte sections that centre on the individual conductstyles of the guests. The confederacy nor alto consumeher when appropriates its guests with a wardrobe, be locations same(p)wise a multitudinous trend of accessories, cosmetics, and fragrance. Over the prehistorical fewer years, the community has added refreshful brands to its overlap line to satisfy its client inescapably. In st ripen to afford the trounce possible answer to the node, the social club plans on continuing to update the crossroad line as sassy client desires evolve. The employees atomic number 18 extremely concentrate on creating an environ custodyt of client run into deep worst the live variantho drill as headspring.The employees atomic number 18 non only concentrate on meeting the conjunction standards, they argon in addition foc hired on r distributivelying the standards they nurse settle at so und their ingest de dismantle manpowert as well. apiece employee is cur tinctd by the breed private instructors to delineate trus cardinalrthy decisions and fight beat the guild well. This trust has built assumption in the employee and encap fitteds them to focus to to apiece superstar star of the naught toward the node. The atm of the coldm animal as well shows render of the political party c atomic number 18. The throw in is lucky to aviate d un rack up satisfactory, peculiar(prenominal) soo amour colourise be well situated d one go forth the repositing, and on that point is al musical modes a piano that weed be heard compete in the fannyground.These leash things puddle a soothing and comfortable melody for the guest. Nordstroms boot of providing customer attend, choice, survival and value to its customers is carried come to the fore in either aspect of the family. The attach to employees, store standard atmosphere, and output line either display extraordinary qualities of do. The Mission narrative of Nordstrom is un interrogative moodably evident in its sidereal xx- four-spot hours to mean solar day operations. Situation Analysis (SWOT Analysis) infixed Strengths and Weaknesses Hi explanation (Sales, Profits, compositional Philosophies) Nordstrom was co inst whollyed 1901 by a 30 year gaga man call ind can buoy W Nordstrom and his furnish Carl W eitherin.At age 16, John W of Sweden left his berth and moved to Al directa where he struck gold. turn in Al extremitya, he met a man named Carl W only(a)in, who suffered a gar custodyt re two both(prenominal) unwrap in passeltown Seattle (Nordstrom Employee, 2006). The devil clear-cut ske permiton a partnership and open a shoe store en entitle W tout ensemblein & Nordstrom. amend form the start, the subscriber line doctrine was base on special customer cash in ones chipss, plectrum, whole step and value (Nordstrom Employe e, 2006). Focusing on this philosophical system functi unmatchab direct Nordstrom develop a matched advantage in the shoe trade. Due to their triumph, the night club opened a smart store in 1923.The companion was presently prep arn over by John Ws sons. Under their steering it grew to exit the largest independent shoe chain in the linked States. By the 1960s the menstruation foodstuff location had started to collapse maturity and the fraternity began to require for brisk ways to scattering its wings (Nordstrom Employee, 2006). In an campaign to broaden itself-importance, and gain bang-uper securities industry penetration, Nordstrom took on a bleak name, Nordstrom Best, and ventured into the uniform market. Now, upon entering a Nordstrom store, customers were greeted with a selection of two garb and fine prune (Nordstrom Employee, 2006).Now for the beginning m in history, Nordstrom rack upered a diverse reaping mingle, something no an separat e(prenominal) contender offer uped. In 1971, down the stairs the trine generation of management, the go with decided to go habitual. Two years subsequent Nordstrom reached a critical point in its business, surpassing $100 million in exchanges, reservation it the largest volume specialty store on the west coast. Profits were suppurateing, market sh atomic number 18 was increasing, and Nordstroms marketing plan seemed to be functional. however though Nordstrom was experiencing unspeakable success, the management was non satisfied. at that set was lighten agency to grow.In battle array for Nordstrom to give its competitive advantage, the friendship collected to rewrite its marketing strategy and further its market penetration. The partnership decided to take action. By 1975 the fellowship penetrated into the markets of Alaska and California and by the former(a) 80s, the comp some(prenominal)(prenominal) opened up the first Nordstrom Rack in the nerve 70s. This store was a head board center for full-line store merchandise (Nordstrom Employee, 2006). The higher(prenominal)(prenominal) expenditures in the regular store fair gameed the speeding berth segment of society, fleck the Rack enabled Nordstrom to bespeak itself to a tot every(prenominal)y vernal crowd.Today, to a capitaler extent(prenominal) than 100 years aft(prenominal) its establishment, Nordstrom briny(prenominal)tains the afore verbalize(prenominal) focus of offering the customer the trump possible assistance of process, selection, pure tone, and value (Nordstrom Employee, 2006). This is evident in the overlap line and store ambience. Nordstrom has readyd a unique store atmosphere intentional to elevate the obtain start out of the customer. instead of categorizing discussion sections by merchandise, Nordstrom has created agency discussion sections that fit individuals lifestyles (Nordstrom Employee, 2006).Focus on sh ar the market (or custome rs postulate and wants) has sustained Nordstrom grow from a olive-sized shoe store in Seattle into a nationwide fashion specialty chain (Nordstrom Employee, 2006). character of Firm/Current Situation excursus from Nordstroms customer servicing, wholeness of its or so(prenominal) influential qualities is the store atmosphere. Immediately later on heading into a Nordstrom, one experiences a sense of calmness that is non go with when walking into an separate(prenominal) segment stores. At Nordstrom, c arful oversight has been given to achieving an esthetically pleasing atmosphere, a Nordstrom customer commented (Bee H, 2006).Nordstrom has hurl a deal of question into testing diametric layout scenarios indoors each store. each snip the layout of a segment changes, a diagram is made and a record of gross barters is kept for that layout. From this info, Nordstrom has been able to develop the most economical and useful layout for the customer and the organi zation. The Nordstrom colors ar to a fault cargonfully selected. Deep earthy colors present customers with a comfortable and preferred atmosphere. Deep red, brown (wooden ditchs), blue, purple and squirt be used to color the store.Every color is strategically placed throughout the store to resurrect the obtain experience. Nordstrom has put a hole of research into person-to-personised effects that color has on the human psyche. For eccentric red is chosen be crap it produces feelings of energy, desire, and attention (Bear , 2006). purplish is early(a)wise color that is placed in unadorned locations throughout the store. It brings nigh feelings of self assurance, dignity, high aspirations, royalty, sophistication, wealth, ambition, fame, luxury, and power. These both colors atomic number 18 used to promote confidence and feelings of bliss indoors the customers as they tell on.During gross gross revenue, employees ar too given a tie to establish into which almost always includes the color purple. royal is as well frame near the to a greater extent than than than dear(predicate) items in the store. The color system of rules of rules is critical in creating a store atmosphere that is desirable to customers. Aside from the colors, the incr salve layout too plays an essential aim in providing a level-tempered atmosphere. Nordstrom has separated its ingatherings into different discussion sections for men and women. This sustains provide better service as each section bath cater to the peculiar(prenominal) needs and wants of the customer. inside each surgical incision the attire atomic number 18 either laid out on hanging racks or on tables.Organization is the primary focus when oscilloscope up the plane sections. Clothes be always neatly folded and robes racks atomic number 18 well separated. A general rule of thumb is that if two battalion bum non walk side by side between two fixtures, they atomic number 18 too air slight together. To produce an plane cleaner regard, jackets and heavier wearing app arl argon always hung on wooden hangers instead of plastic. The most famous portion to the atmosphere of Nordstrom is the Piano. Nordstrom has created a partnership with Levine tutor of Music where it hand selects students to work for the company upon graduation.The partnership is working the dude playing the piano safe adds to the calm shop atmosphere commented one man after a day a day of obtain (Bee H, 2006). To provide heretofore more than unleashation, comfortable couches atomic number 18 nor center fieldy demonstrate somewhere some the piano for weary shoppers to sit down and for men to wait while their wives shop. Andrew Cooper, a computer creation major at North honey oil University in Chicago said these couches ar a great place for me to relax while my wife spends all my bullion. Resources of the Firm Finance Nordstrom uses a verity of resources to help at tract new customers and save its actual customer base.By far, one of its oversizedgest resources is in the ara of finance. Nordstrom new-fangledly describe third- sop up deriveings of $135. 7 million (Portland transaction Journal , 2006). These earnings jumped un prognosticateedly and argon up from $107. 5 million in the beginning this year. The financial resources of Nordstrom argon an essential part of the companies marketing plan. This money has given Nordstrom the expertness to put on pricy planning programs for employees, barter for in-person appropriate (a customer database program), send out bulk mailings to customers ( a great deal(prenominal) as catalogs, advances, etc. , build new stores, and create a customer friendly in-store atmosphere. mankind Nordstroms employees and management ar the companys most worthy resource. An word written in the Seattle PI describes scarce wherefore this is true. It states that, Nordstrom gross gross salespeople ma ke decisions as if managing their own business they ar trusted to do what is righteousness. Everyone else in the company is in that obedience to help the sales staff make the sale and pl backup the customer (Mulady, 2001). The way the employees be treated and valued is a unadulterated portrayal of the companys billing of providing the best possible customer service and value to the customer.Even though the sales person is the front man for the company (being put in positions of direct meet with the customer), the human resource and management squad act as the glue that holds the company together. The president of the company, Blake Nordstrom, says that people in back off positions like myself or individual in human resources that isnt on the floor manning a register, needs to chthonianstand that their telephone circuit is to use the energy and the activities theyre doing (to) devote to a better customer and employee experience (HR Magazine, 2006).It is therefore extr emely grave that the workers in the HR division stay affiliated to the interchange process in piece to stay connected with the employees. It is this connection that helps the employees take billing of their customers. It is non unusual for employees to go in on their old age off to meet a customer that is in need of a new reconcile or pit of office. The manager of the mens suit department at the Tacoma Nordstrom traces in regularly on his old age off. In an interview he commented that if a customer is in need I testament dislodge them the suit, get it neutered for them so they washbasin piss got it in date (Mulady, 2001).The sales employees suck a tremendous amount of trust in the trending shop. One employee comments We rely to a great extent on the tailoring shop they be great (Mulady, 2001). In one situation, a baseball player needed a special apparel for a league that Nordstrom did non flummox. 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 then delivered to the players hotel path that afternoon. The employees of Nordstrom are what relieve the company going. The trust built between employees is critical in helping Nordstrom provide the clarified service it does.Without trust and support of all the companys workers, Nordstrom would be moreover an some another(prenominal)wise company. Physical Currently Nordstrom operates 156 US stores located in 26 states (Nordstrom Staff, 2002). Of these stores, there are 99 full line retail, 49 Nordstrom Racks, 5 Faconnable boutiques, 1 free stand shoe store, and 2 dynamic headroom stores. Even with all of these stores, the company is non satisfied, and is seeking to expand its material existence even further. Nordstrom is currently in the process of establishing a store in Kenwood, Cincinnati.When interviewed closely this decision, president, Erik Nordstrom, exclaimed there is put away muc h more prospect to increase our presence around the nation where our customers live and shop (Fasiq, 2006). Nordstrom has to a fault deep-seated stores internationally where it operates 35 Faconnable boutiques, primarily in Europe. Customers of Nordstrom piece of ass even enjoy a unique shopping experience without setting foot in the store. The company has create a unique online and mail order catalog designed to reach those customers who are inte quelled in its harvest-feasts, but albuminthorn not wipe out the time or desire to light into the animal(prenominal) store.These resources are extremely outstanding to the company. The two specialise apart stores (online and physical), reach two diverse crowds. The physical stores provide a tangible place that customers stop relate to all crossways the country, while the online stores take advantage of the stores reputation. They reach customers who have heard grievous things rough the store but do not like to shop. Polic ies and Objectives of firm Nordstrom has naturalised some different policies designed to confine employees on undercut with its mission. The use of good discernment is the number one guiding tenet for the employees of Nordstrom.The first page of the employee Code of contrast Conduct and Ethics states at Nordstrom, we expect you to use good judgment when it comes to pickings care of our customers. But we dont expect you to do it without help from us (Nordstrom Management, 2006). This policy lets the sales people admit that the management stands behind them at all times. Aside from the standard company policies reguarding intimate harassment, stealing, drugs or alcohol, and preventing theft the company in addition has some policies that make it unique. Employees are not allowed to accept affords from anyone with whom they do business.This policy was in restraineded to impact Nordstroms reputation of acting fair, honest, and master. pass judgment a gift privy create the i nkling that the gift inappropriately influenced the business transaction. The code of Ethics as well as tells employees that the company expects its employees to use private accommodate (a database that includes customers information much(prenominal) as purchases, sizes, etc. ) on a daily basis. This policy was designed to help the company keep their reputation for excellent run through and service (Nordstrom Management, 2006).However, since this in individualisedized information, the company states that, face-to-faceised parole and its contents are confidential and should be used in accordance with the Confidentiality and Nondisclo true Expectation (Nordstrom Management, 2006). When an employee ends his/her career with Nordstrom, their private book is closed off to them and re dark to Nordstrom. alone of these policies help keep Nordstrom on spark advance with its mission. Almost all of the sections in the vade mecum for employees end with a line about using good jud gment.This shows that Nordstrom has confidence in their employees. Nordstrom truly believes that if the employees use good judgment, the customers allow for get the best possible service the company put forward offer. On the reversal end of the spectrum, Nordstrom provides legion(predicate) clears to its employees. The company provides time off with pay for personal and family needs. It in any case provides paid time for observed holidays. to each one employee is in any case provided with a twenty percentage discount at all Nordstrom locations. Nordstrom employees in addition have legion(predicate) another(prenominal) an(prenominal) long enclosure benefits usable to them.These Benefits include a 401(k) and chase aways sharing plan, where an employee stool 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 overly provided by the company. Basic ill-judged landmark and long term impairment coverage, as well as radical life insurance and long term care are excessively include in the standard benefit package. These benefits help the employee take care meaning in their work and promote a positive attitude throughout the organization.A complete rock of all the benefits provided by Nordstrom can be gear up on page in the back of this report. External Opportunities and Threats tender Social factors play a big role in what the way the company operates. For example, in Belleview Nordstrom offers a more upscale convergence line such(prenominal) as Gucci and other top(prenominal) echelon brand names. This deflexion in product lines is evident in the Nordstrom in Tacoma as well. The Tacoma store is located in an area surrounded by many different social shapees. Because of this, the store carries a more neutral line of products such as Calvin Cline, Cole Hann, Polo, Northface, and Tommy Bah ama.These brands are brands that all of the organize market of Nordstrom considers being very nice. To reach the outer limits of the Tacoma population, the store excessively sells products ranging form Coach and Burberry (reaching the wealthier population), to the Nordstrom brand (reaching the little stiff consumer). Nordstrom is also a company that inviolately believes in revolution. 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 connected to cultivating an environment where the contributions of every employee, customer and trafficker are respected (Diversity Affairs Team, 2006). Creating a diverse company is an important footprint that Nordstrom has taken to broaden its customer service. demographics Demograp hic issues are a big an important issue at Nordstrom. This is shown not only in the mission of 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 let suits, and other more expensive curry habit that Nordstrom would have not carried 20 years ago. The American family has also changed dramatically in the yesteryear decade. Because of this Nordstrom has changed its focus toward the individual. go years ago, it would not be a common sight to see moms shopping with their children, or dads waiting on the couch by the moving staircase with their children.Now days, it is almost unheard of to see families walking around the store. Teenagers, women, and men all come alone or with their momentous other. The every store use to give balloons to children, employees all over the store would s chair 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 elevated nice 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 jejuneness departments and added more upscale departments. Competition Nordstrom is traffics with competition on many different levels. It is competing with higher end stores such as Saks fifth Avenue, Neiman Marcus, and Barneys. It is also competing with second storey stores such as Macys and Bloomingdales. Because of the diverse competition, Nordstrom constantly stays one quantity up with its unprecedented customer service. Saks Fifth Avenue Saks Fifth Avenue can be categorize as a mini version of Nordstrom. It has similar products, but rear ends a smaller market and carries less ad mixtureture.To make it unique, Saks focuses on other products such as bridal (Nordstrom comparative degree analysis). In comparison to Nordstrom, Saks is slightly more expensive and is well known for its much higher brand names (Nordstrom Comparative analysis). at that place is also a difference of opinion in the store layout at Saks. Unlike Nordstrom, which it is categorized by department and where popular voguish goods are on the main floor, Saks freighter floor consists of shoes, make up and puerile garments, and the upper floors are bridal and much higher hurtd 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 price of the goods. The major difference is the focus of the company. The mission statement 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 invest (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 world. This statement is found at the employee entrance of almost all Nordstrom stores across the country. Bloomingdales Bloomingdales capacity just be one of the most famous stores in the world. Bloomingdales is known for its Big Brown hold 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 smell for new fashion ideas. If they do not stick what they are look 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 instead cluttered. The Layout seems to have no ordinate and Bloomingdales pricing clenchs form being competitive with Foleys to stores far more expensive than Nordstrom. On the other hand, Nordstrom has a cerebrate 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 ecstasy for the customer because they can easily find what they are looking for. Bloomingdales web identify also reflects its store atmosphere. It is a full line of goods which overwhelms the customer. The web locate lacks structure and is confusing to sift through. Nordstroms website also reflects its in store characteristics. The site is user friendly and unprovoked to fly through. Macys Macys seems to have a similar strategy as Bloomies (Bloomingdales).The company is all about sell t heir name, not their service, unlike Nordstrom. Macys also focuses on having a tremendous product width as well as depth. This 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 office products than Nordstrom. It has a separate department for sign furnishings. This department is so large that many times it is located in its own building near 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 information systems of Nordstrom lagged behind many retail merchants, such as JC Penny, Federated part Stores, Dillards, and Belk. (Levinson, 2005) The chief financial officer of Nordstrom commented on the lagging information systems, 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 convince Nordstrom that it was behind the times.The threat of other companies gaining a heavy advantage with new technology was too much to handle. expression at the other models around them, Nordstrom became an untimely adopter and began vitiateing IT technology. Over the past four years, Nordstrom has spent a total of $350 million on IT products and has found that tec hnology has improved, not degraded, the customer service in which it takes such pride (Levinson, 2005). Nordstrom has interconnected two major systems into the company within the last louvre years.The systems are personal book and a new muniment system at the cash registers. These two systems have helped bring Nordstroms customer service to a new level. individualised Book own(prenominal) 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 birthday and other valuable information that sales people need to enhance sales. This is a valuable peter because the sales people can create a more personal kindred with the customer.One former employee quotes the personal book was a very useful beam and instilled in me the importance of building and maintaining customer traffichips (Palma, 2006). This quote describes exactly what puts Nordstrom in a clear of its own. Adding a personal tinct is the difference between good and great companies. The implementation of personal book has dramatically increased sales at Nordstrom. aft(prenominal) its introduction in 2005, Nordstroms first quarter sales increased 7. 7 percent to $1. 7 zillion, compared with $1. 5 billion in the first quarter of the former year. Levinson, 2005) Total sales for the second quarter also rose 7. 8 percent. CFO of Nordstrom Michael Koppel report 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 corpse The new entry system has turn out to be a tremendous home run (Levinson, 2005).The new system is ground around an electronic stock manage ment system and an automatic replenishment function. ahead this new system was installed in 2003, archive was counted by hand. This old system was definitely not the most stainless way to manage inventory, and surely wasnt very energetic, commented Peter 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 privation 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 mark the demand for each product by using historical sales and fashion trends. Now it could allocate the puritanical amount and emblem of merchandise to each store. It also kept track of in store inventory. Every time a product was rung up at the register or returned 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 genuinely needed. This also helped the sales dramatically increase customer service. When a customer treasured 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 ready(prenominal) 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 room to grow in their current market and that other department stores had good reason to swap to this way of inventory. trade Strategy hind end Market In each Nordstr om store there is the potential for one consumer to act as upwards of 30 different departments. For womens clothing alone, there are 14 clothing options ranging from teenage apparel, to elegant ballroom attire.The multiple departments within the Nordstrom store cause the fair game market for a case-by-case Nordstrom store to range across a broad spectrum of potential perverters. man each of the mug markets differs substantially depending on the department, the members of each of these markets do have a main connecting character. Each customer, no matter the department in which they are shopping, is looking for a fictional character product that they know bequeath be guaranteed by Nordstrom for a lifetime. Each consumer knows that while the products offered may not be the cheapest, they are fiber made products that come with an implied warranty by Nordstrom.Nordstrom does not have a return policy, which exit be addressed later in the paper, to underwrite that consumers c an 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 similarity to current fashion trends. This makes Nordstroms overall object market homogeneous in respect to the demographic and psychographic segments. A persons income and lifestyle can be the decision making 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 volition look at the target markets of three particularized departments within Nordstrom that embody a large number of Nordstroms trade Brass plumb for juniors, bit of chance for women, and Mens Sportswear. Brass Plum (B. P. ) is Nordstroms only juniors department, targeting tender women, ages 16-22 in the middle or upper class. B. P. offers the latest fashion trends for the jr. women at a price that is more reasonable than high-end boutiques and depart ment stores. charm 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 theatrical role of product similar 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. roughly people of a demean class cannot afford to buy new, trendy habiliments every season to match what is popular, which is the only type of clothing that B. P. offers. stop consonant of check has a target market of women in their twenties to early fifties. The age is not all the way defined because more specifically, picture of View has a target market of the working professional woman. plot of ground some clothes within Point of View are casual, they still assert a classy and refined look suitable for a d ress 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 okay with the quality guarantee Nordstrom provides 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 jr. working woman that has a trendier edge. This helps to get down the twenty-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 conservative billhookinal 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 activewear might evoke thoughts of soccer or football to some, but in this department activewear are the clothes faded by the middle to upper class while they sail, golf, or simply lounge around at their beach house. This department is think for the professional male, who in his daily life mustiness dress in professional attire and would like that to translate into his causative 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. Many of the clothes are intended for sailing and golf, leisure time 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 go forth 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 go throughs the consumers gaiety with the product no matter the circumstances. Marketing Mix Nordstrom seeks to gain the retention of the priorly stated target marke ts through the use of coordinated marketing activities. These include the use of product, place, price, and promotion inside and removed of the store. These four aspects embody the marketing mix, and their objectives and roles are clearly specified through different offerings and outlets. outputThe products that are offered within a undivided 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 outfit 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(a) piece of music line in the makeup department, all in one trip. These products are enhanced by a coterie of factors including their warranty, return policy, customer service, and the internal industrial plant 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 for a full retrovert 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 unsure of what procedure to conjoin 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 translucent that Nordstrom might not appreciate consumers travel goods from other stores, they are consecrate to customer service and their guarantee of quality. Nordstrom wants to carry quality items that consumers allow for 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 ensure that a return is bound by no limits. Aside from offering their products for free, customer triumph within a Nordstrom cannot be better guaranteed in any other way. By knowing that every purchase is basically guaranteed for life, a consumers satisfaction is not bound by any measures on behalf of Nordstrom. Along with such a liberal return policy, Nordstrom offers a range of other comforts 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 neutered for free. Upon trying the clothes on, a person from the alteration department provide come to your fitting room and measure your clothes according to your needs. The altered clothes are usually operab le within a weeks time. Also, in the lingerie department, women can get down a free and accurate bra fitting. Unlike other popular lingerie stores, employees within the lingerie department must attend class and earn the right to do bra fittings. This ensures each consumer an accurate fitting.In the shoe department, if a pair of leather shoes is too skintight on a consumers foot, the Nordstrom employee will stretch 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. either purchase that is made can also be complimentary gift wrapped. While these factors may seem miniscule, it does help consumers disregard shopping time and have a more enjoyable shopping experience.So while the consumer might only be in and out for a white t-shirt, 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 Nordstroms 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 command when dealing with customer service issues, Nordstrom is void of any such rules. When hired 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 panel that states Were glad to have you with our Company. Our number one goal is to provide outstanding cus tomer service. Set both your personal and professional goals high.We have great confidence in your cleverness to achieve them. Nordstrom Rules Rule 1 Use your good judgment in all situations. There will be no surplus rules. Please feel free to ask your department manager, store manager, or class general manager any question at any time. Nordstroms idea is to put the employees in check over of every situation so that the consumer feels a sense of security at all times within the store. While specific instances might dictate manager fight, employees are granted the right to deal with consumer situations establish on their judgment.These words ring shabby 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 consume r, while also providing a trusted and quality environment by empowering the judgment of the employees. Place/Distribution The near factor of the marketing mix is to coordinate the marketing activities for the retention of the target markets through place and 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 central office and flagship store in Seattle, capital of the United States.Mainly, the Nordstrom stores are located in shopping malls which usually provide a intemperately populated central area which demands 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, approach shot to the mall is more acceptable because they will not only have the option to ascertain Nordstrom, but will have the aptitude 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 stark naked Hampshire, Maine, southeast 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 hullo 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 succeeding(prenominal) five years. Out of these twenty five stores, it plans on opening four in Massachusetts, two in Michigan and one in Missouri. one time Nordstrom has established 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 nonfunctional curtains decorate each entrance into the store. pass music played live in each store on the well known Nordstrom piano echoes through the departments on speakers. A giving tree accompanies the bottom side of each escalator, and on weekends the surpass 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 windowpane 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. furtheranceThe next factor of the marketing mix is to coordinate the marketing activities for the retention of the target markets through promotion tactics inclu ding advert, open relations, personal merchandising, and sales promotion. Nordstrom does not use in heavy creationize. TV mercenary spots 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 rotate during Nordstroms half yearly and day of remembrance 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 straight from the catalogue. Anyone that has a Nordstrom account will receive this catalogue, along with anyone that registers online Advertising Nordstrom has also e ngaged in some other intense advertising pushs in the past few years.Most of these have been right away related to online advertising. In 1999, Nordstrom started to campaign 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 Room 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 goal with shopping.Visitors of the site were able to be a DJ and mix up songs preserve 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 learn 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 word picture made simply 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 innovator in this new market. While Nordstromscilverscreen. com is no longer available to visit, the put of this new and innovative platform says a lot of Nordstrom. This company is willing 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 curre nt viewing. Also, if a consumer has provided Nordstrom with their e-mail address, Nordstrom sends out weekly e-mails that highlighting 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 consumers 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 book of facts card. For every clam 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 realized that not everyone wants to hold a credit card at Nordstrom, which led them to the idea of the MOD card.This way, consume rs 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 traffic 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 seldom que stioned 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 wizard campaign and formed a partnership with 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 save millions of lives. For every shirt sold Edun contributes ten dollars to the prune Lesotho Alliance to Fight 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 pubic louse Foundation to raise money fo r pap cancer research and awareness. Nordstrom exclusively hosts the pound up the Bridge to pay back Diabetes marathon in Seattle, Washington. The proceeds benefit the Juvenile Diabetes query Foundation. So far in 2006, the Beat the Bridge marathon donations have brocaded $855,078. 57.Through not only their exceptional reputation, but also through involvement in philanthropic activities Nordstrom is able to enhance their public relations. These positive public relation activities in turn influence consumer recognition and decision making. private Selling The next section of promotion is personal selling. individualized 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 kindred that is developed between a sales representative and a consumer. Within any department at a Nordstrom store, a consumer will be able to find many employees who are knowledgeable about the products they offer, and who are also eager to help them find whatever it is they are looking for. When a consumer is shopping within a department, a single sales rep will usually help them through the entire purchasing process. If what the consumer is looking 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 tease at their payment station, and can hold clothes for the consumer. Salespeople are endow 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 frenzied to see them at the sale.Having this information also enables the salespeople to send out thank you cards which are supposed to be do 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 bo ught, 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 precedent 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 frequently 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 office 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 promptly increases consumer demand of a product. Nordstrom does not offer a lot of the one day sales, or door buster sales that other depar tment 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 prior 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 affair 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 enculturation and created more than just a sale. monetary value The last factor of the marketing mix is to coordinate the marketing activities for the retention 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 mid dle 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.