Neiman Marcus Group Ltd, which owns high-end retailer Neiman Marcus and discount retailer Last Call, has faced a public relations crisis in the past 12 months. The company, founded in Dallas, Texas, in 1907, has stores in 20 states and attracts customers with a high disposable income. The organization discovered in mid-December that they had fallen victim to a security breach. Approximately 1.1 million customer cards used from July 16, 2013 to October 30, 2013 were vulnerable to malicious software installed to Neiman Marcus’s system. An investigation discovered that 2,400 different customer cards were used fraudulently as a result of the breach.
Neiman Marcus shared news of the breach on January 1, 2014. The Secret Service and Attorneys General of Connecticut and Illinois are currently investigating the breach, which many believe is connected to the Target security breach. The breach is not thought to have targeted online purchases and did not access customers’ PIN data or Social Security numbers. Authorities believe the same group of hackers in Eastern Europe is responsible for both incidents, which may be connected to an even larger cyber attack.
Neiman Marcus’s President and CEO Karen Katz released a statement on the company’s website on January 22, 2014, in which she apologized for the breach and outlined the steps that the company will take to help its customers. She said the company notified all customers who shopped at either store during the affected time period whose e-mail addresses were in their database. Neiman Marcus also offered one year of free credit monitoring and identity-theft protection to customers affected by the security breach. Neiman Marcus’s rationale for releasing the letter was to explain ...
... middle of paper ...
... were not available did not find out until later. A major short-term effect of the security breach is a loss of business because customers do not feel safe shopping at Neiman Marcus or Last Call stores. However, in the long term, the breach could cause a loss of customer confidence in the brand, which will be hard to gain back if they do not take necessary steps. It is hard to say how Neiman Marcus will survive the crisis, as the facts are still unfolding, but they do not have a chance at rebuilding their image if do not they focus on visibility and helping the customers who were affected by the crisis.
Works Cited
• NeimanMarcus.com. Neiman Marcus Group, n.d. Web. 27 Jan. 2014. .
• "Neiman Marcus Breach Probed; Target Sued." The Daily Gleaner. CanW
Maxx benefits from chaos by picking up the pieces, merchandise at a discount, when other retail stores close, or have overruns, or unexpected changes in demand and in return pass these savings on to their customers who shop for value (Levine-Weinberg, 2016) This is the demand-side benefits of scale when the consumer rather pay less for name brand merchandise than to pay more for the same designer in the department store. The stores that where having difficulty in the retail market left themselves vulnerable by not defending their position and T.J. Maxx proactively attacks this opportunity with its purchasing power and passes the savings to its customers. This proactive process of attacking and defending is what Wee (2016) calls the holistic and balanced perspective of handling competition. Moreover, this business warfare strategy of attacking struggling competitors is called offensive marketing warfare strategy (Grewal, 2014).
Being an investigator to Apollo Shoes, the financial statement fraud scheme likely to be present is dependent on the nature of the company. Statement on Auditing Standards No. 99 (“SAS 99”) requires to focus on two broad areas of fraud:
Macy’s intended to deliver enhanced shopping experiences to its consumers through dynamic department stores and online sites. In this regard, the company developed a North Star strategy that allows it to improve its sales growth and to develop its existing core activities. The company’s consumer research monitors, analyze and anticipate their needs and wants based on the changing market trends. This allows it to strengthen its customer base and also helps it in identifying new markets and customers. Macy’s also identifies different styles and designs based on various occasions and events that allow it to capture the changing preferences of its customers. The company also celebrates various iconic events to interact with its customers which
With minimal aid from interviews with managers and no exposure to the marketing entity of the company, I was able to accomplish much of my findings related to the macro environment of Kohl’s through diligent online research. One of the major changes occurring in the retail industry is online shopping. Substitutes such as Amazon, eBay, and other online retailers are replacing the technically savvy shoppers from ever having to enter a store. Kohl’s competes with these outlets by remaining on the cutting edge of integrated technology to enhance the customer experience shopping their brand. They are currently testing multi-function tablets in jewelry and beauty departments that can be used to demonstrate
One year ago, on September 8, 2016 the Consumer Financial Protection Bureau(CFPB), the Los Angeles City Attorney and the Office of the Comptroller of the Currency (OCC) fined Wells Fargo Bank $185 million, alleging that more than 2 million bank accounts or credit cards were opened or applied for without customers' knowledge or permission between May 2011 and July 2015. This essay will discuss the Wells Fargo scandal by explaining how the event happened and describing how the organization approached handling a response to the crisis. This will be seen, firstly by describing the how the scandal happened, and what were the causes, secondly by discussing the reaction of the company in front of the situation, how they dealt with the crisis and then
“The last day of the meeting, the head of Barnes and Noble team up with other corporate people to see what items could be put in the store around the time of the biggest holiday of the year (which was Christmas) to keep the company stable and prevent it from shutting down. The company then owed so much money that they weren’t even making a profit and because they weren’t making a profit they eventually ended up having to stop shipping items the NeoStar.” (Gamestop Corp, 2013)
First, Nordstrom is unique through its excelling customer service. As a full-service retailer, Nordstrom assists customers in every phase of the shopping process. Because they carry more specialty goods, customers will need and want more assistance leading to increased value of customer service. One of their policies is that they will accept any merchandise that people bring back without asking any questions. As a result, people feel more confident about purchasing products from there, since they can buy something with the comfort and knowledge that Nordstrom has an excellent return
Nordstrom is one of the top retailers in the United States. With a solid brand image and a sound financial situation, Nordstrom is relentless in their expansion in the US, and are beginning to expand into international markets. Nordstrom takes pleasure in providing state of the art client support and having experienced sales people. In order to hold their position as the most successful high-end retailer in the United States, Nordstrom must continue to figure out ways to improve their brand image and customer satisfaction. Nordstrom’s current business working strategy is successful but I believe there are a few ideal solutions that the organization could apply to further enhance the organization. Due to the aggressive characteristics of the fashion retail store market, it is crucial that Nordstrom preserves an aggressive advantage providing the highest level of customer support as possible.
In December 2013, Target was attacked by a cyber-attack due to a data breach. Target is a widely known retailer that has millions of consumers flocking every day to the retailer to partake in the stores wonders. The Target Data Breach is now known as the largest data breach/attack surpassing the TJX data breach in 2007. “The second-biggest attack struck TJX Companies, the parent company of TJMaxx and Marshall’s, which said in 2007 that about 45 million credit cards and debit cards had been compromised.” (Timberg, Yang, & Tsukayama, 2013) The data breach occurred to Target was a strong swift kick to the guts to not only the retailer/corporation, but to employees and consumers. The December 2013 data breach, exposed Target in a way that many would not expect to see and happen to any major retailer/corporation.
Key stakeholders are owners, directors, employees, and the community that the organization draws it resources businessdictionary.com,2016). Out of the 1000 Wells Fargo customers that were surveyed 3% stated that they were personally affected by the scandal and 14% of them stated that they have changed banks while 30% of them were currently looking to switch. Studies predict that Wells Fargo could lose about $99 billion in deposits and $4 billion in revenue because of customers rejecting to do business. Individual customers weren’t the only ones that were affect by the scandal but similarly 10,000 small businesses (Razin, 2016). I believe that the owners will be affected as well because of profit losses that will eventually affect Wells Fargo shares and the employees were affected after 5,300 of were fired (Razin,
As technology get more advance, people use cameras, tracking devices in the stores to track customers shopping behavior. The retailers apply every detail that they get from anthropologists to get people buy their products. Some people claim that the surveillance of consumers by retail anthropologists is manipulative and unethical. However, the claim is not entirely true. Many retail use the data they get from anthropologists and apply it to their store to create great experiences for their customers, encourage customers to revisited, and ultimately improve business performances.
My company of choice for this report is Macy 's. 'The Magic of Macy 's ', as the company advertises it, has inspired me to shop there, take advantage of their incomparable discounts and great online shopping experience. Macy 's, Inc. is one of the largest department store chains in the United States of America. Macy 's manages stores under the Macy 's and Bloomingdale 's brands. I enjoy shopping at both of the company 's store brands, Macy 's and Bloomingdales. Bloomingdales provides a more personalized experience
On the off chance that Home Depot had a defencelessness management program, performing monthly vulnerability scans of the POS environment; they could have utilized the consequences of those outputs to show leadership the significance of the gaps in that environment and possibly started to mitigate the risk of that environment before the breach occurred.
With the advent of the digital era, Sephora was among the very first few to adopt the digital media not only for promotional activities, but also for strategic marketing activities through Sephora Direct. Year after year Sephora has created a well-valued digital experience for its customers. However, most of the customers complain about a single thing all the time and that is the experience they get from the store is different than that they get from the digital experience from the website and the existing Sephora apps. In addition, the experience few of the customers experienced during the holiday season of 2014 had further tarnished Sephora’s brand image and the Asian customers perceived the brand as an anti-Asian brand. Most of the Asian customers claimed that the website has locked out for people either with Asian names or email ids with domains from Asian countries. This event led the customers to vent their anger on the various social media
Your identity is unsafe in more places than you may realize. Every store you walk in has the possibility or either having someone behind the counter, or someone hacking into a business from outside, readily waiting to steal your identity. Using your credit card in any store is never safe no matter what signs are posted around the store, or how big the company is; it’s not always the people who work there that want your identity. The article Identity theft growing, costly to victims in The Arizona Republic, J. Craig Anderson ...