Nordstrom, as a 114 years old American high-end fashion retailer, outperformed many other fashion merchandises. Nordstrom has achieved significant sustained growth every year, and it is well-positioned to continue its success in the future. Nordstrom has gained an advantage over the competition with many other retailers such as T.J. Maxx, Target, Macy’s, Bloomingdales and Lord and Taylor using a couple of strategies that include wonderful customer service and comprehensive products retailing. From a strategic marketing standpoint, the most important things for a company to do is positioning and differentiating itself from the competitors in its market space. Positioning puts a company in a category, while differentiating separates the company from others in that same category. Nordstrom positioned itself properly among many other fashion retailers. Here are some choices that Nordstrom's has made that distinguish it from other retailers.
First and the most well-known positioning strategy that Nordstrom used is excellent customer service. As a matter of fact, good customer services are essential for merchandise companies, not differentiating factors. However,
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most companies claim to provide better customer service but not actually deliver it. They just make use of it to advertise themselves, but barely put it into practice as Nordstrom does, especially when Nordstrom characterizes itself as the upscale fashion retailer with unmatched quality customer service. In the market of retailing, customers care more than just prices. They expect to be cared for as an individual. Who don’t like the feeling of being cared? Besides, Nordstrom’s sales provides customers with excellent visual product presentation, attracting customers even they are not looking for that product, and sometimes drawing them to buy the products. Moreover, Nordstrom understands and values every customer. It provides more personalized service to make customers feel valued. The sales give not only professional and official information about the product, but also recommendations and tastes combining with their experience and knowledge. They also offer personalized advices based on customers’ different needs and conditions. Nordstrom has personalized sales associates that research customers and assist them with their shopping. Since the major customer service providers are salespeople, Nordstrom is very choosy about hiring “nice, capable” people. All the detailed elements illustrated above constitute a thorough and fantastic customer service strategy of Nordstrom. "Throughout their history, they have consistently provided some of the best service in the industry," said Robin Lewis, CEO of The Robin Report and co-author with Michael Dart, of The New Rules of Retail – Competing in the World’s Toughest Marketplace. The second outstanding character that differentiates Nordstrom from other merchandises is its outlet business.
Even though Nordstrom is an upscale fashion retailer, its outlet business, Nordstrom Rack, gives customers more acceptable price choices, and broaden its target market, exposing itself to totally different customers. Along with Nordstrom’s edgy fashion picks, outlet business attracts more young customers who contribute largely to online fashion business. Nordstrom is catering to Millennials by bringing in famous brands like Topshop and by investing heavily in digital channels. Nordstrom Rack is a way that the company provides different purchasing experience. Many people, in particular, women like the hunt of good valued items with lower price, which gives a completely experience in the Nordstrom
store. Moreover, Nordstrom exploits more opportunities using multichannel strategy. It retail its products in various ways combining full-price, off-price products with online and in store channel. Customers can enjoy full-price and off-price and online. People can buy full-price products in Nordstrom store, enjoying the excellent and intimate service. Or they can go to Nordstrom Rack to pick the most valued items. Customers are also able to shop online, buying full-price products through Nordstrom.com or off-price products through nordstromrack.com and Haute Look. Finally but the most essential one, Nordstrom always focuses on the No. 1 quality of both the products and all other environment facilities. There’s no need to talk much about the quality of products since Nordstrom is the retailer of high-end products. It is worth a mention that every time you walk in a Nordstrom store, the environment makes you feel relax, calmed and elegant, which is proper to illustrate luxury. When customers see the orderly and neatly set shelves, the soothing music, the pale grey, blue or green wall in fitting rooms and restrooms, they feel they are not only buying items but also the experience of peace and elegance. Furthermore, Nordstrom’s return policy is very friendly and desirable. It allow up to 90 days of return, and customers can return everything they don’t like. This undoubtedly appeal to more potential customers to buy things at Nordstrom store they have more guarantee of shopping. To conclude, having the advantage of excellent customer service, successful outlet business, multichannel business strategy, and appealing purchasing environment, Nordstrom outperformed other retailers in these ways and spread its valuable concepts and reputation all around the world.
Nordstrom and Nordstrom Rack are different retail operations in terms of their choice, pricing, store service, and store atmosphere customer intimate firms, which excel in serving the specific needs of the individual customer well. There is less emphasis on efficiency, which is sacrificed for giving more precisely what is wanted by the customer. Reliability is also stressed. Nordstrom is an example of this discipline. Nordstrom must meet some standards of cost-effectiveness. When customers evaluate the quality of a product, they commonly measure it against two kinds of attributes: those related to quality as excellence and those related to the quality of reliability. From a quality as excellence perspective, the important qualities are things such as a product’s design and styling, its aesthetic appeal, its features and functions, the level of service associated with the delivery of the product,
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
Retailers rely on product positioning to bolster the value of their products. Determining product positioning requires the analysis of target customers, the market competition, the definition of competitive advantages, and the communications needed to deliver the chosen position to the consumer. Kohl’s is an example of a department store that has successfully deployed a pricing a retail strategy, which evaluates and incorporates price, place, product, and promotion.
This nationally recognized mass merchandiser that stood as Kohl’s other leading adversary in the market has everyday low prices that were able to compete with Kohl’s promotional events. Wal-Mart also outdid their competition when it came to number of store locations around the country. The weaknesses of this reputable company come to light when shoppers are looking to buy clothes and are not presented with nearly the selection that the department store can offer. Also, their service is not considered to be as helpful as the department stores that can input more expertise when trying on
Target stores, inc.is a sister company of Dayton Hudson Corporation and started in the year 1962 the same year as two other large retail stores Wal-mart and Kmart. Target has always operated with the motto “ Expect More and Pay Less” target is the third in the big three in U.S. falling behind Wal-Mart and Kmart.a major part of target's success comes from its ability to bundle bargain prices with fashionable name brand merchandise with excellent customer service. Dayton’s department store started looking into Target as a discount chain in the year of 1962 when the company saw a rising in public demand for lower priced merchandise in a family friendly and convenient environment. The name target along with the bulls eye logo were selected for the company's visual impact also to show that target aims at offering
Present day Federated consists of both Bloomingdale’s and Macy’s stores and operates in 34 states as well as Guam and Puerto Rico. While Bloomingdale’s and Macy’s provide both private and national brands and are similar in merchandising categories (men’s, women’s and children’s apparel, home décor, shoes, beauty, and accessories), they differ greatly in culture. Bloomingdale’s, being more upscale, targets consumers that are more concerned with trend and quality than they are price. Macy’s targets the more value oriented consumer and represents a broader Federated clientele. Macy’s represents 423 of the 459 Federated locations while Bloomingdale’s represents only 36 locations. Because I can better relate to the value conscious consumer of the Macy’s division and because they represent such a large portion of Federated, I will further explore their current characteristics and behaviors that suggest that they possess qualities of both monopolistic competition and oligopolies.
Nordstrom’s retail positioning strategy provides it with the competitive edge it needs to differentiate it from competitors who also serve similar markets.
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.
Over the years, the American department store has developed and evolved as not only a commercial business but also a cultural institution. While it has weathered many storms and changes since its inception and throughout history, its most predominant enemy has been a change in the lifestyle of the American people (Whitaker, 2013). As the customer’s needs and wants have shifted, department stores have struggled to keep up with demands. It has been argued that the decline of the department store has been ongoing for the last 50 years (Whitaker, 2013). This dissertation aims to understand how the department store has historically played a role in consumer culture and spending, and additionally, how this has evolved and changed in today’s retail market. Although department stores may not be able to take all the credit for inventing modern shopping, they certainly made its conventions and conveniences commonplace. They set a new standard for the way the consumer should expect to be treated, the type of services that should be provided, and the convenience that should attend the process of acquiring the necessities and niceties of life all in one place. They made shopping into a leisure pastime. This environment meant shopping was a means of freedom to look around, pick up objects with no obligations to buy. As one historian remarked, department stores: “encouraged a perception of the building as a public place, where consumption itself was almost incidental to the delights of a sheltered promenade in a densely crowded, middle-class urban space” (Whitaker, 2006). Although this perception and view of the department store has changed over the years, this paper aims to follow the trail of how and why that happened.
Paco Underhill has created a way for stores to draw more customers in and spend more money by getting in the mind of the customers. I found some of Underhill’s theories to be true. Underhill’s theories have helped provide research of the actions of consumers inside of American Eagle, Meijer and Hollister, these theories include, the need for shoppers to acclimate to their surroundings, the way customers turn into stores, and by placing most used products in the farthest places away from the
The company had to be the second largest retailer shop in the US; it has many advantages that come along. The customers well acknowledge the company and its brand have been well established.
Macy 's strategy is to provide a "localized merchandise offering and shopping experience to targeted consumers" (Macy 's Inc., n.d.). Macy 's generates primary revenue through the sale
As the retail industry is confronted with extraordinary challenges (Deloitte LLP, 2011), firms are facing increased competition. Porters leading authority on competitive strategy is largely accountable for the increased importance to a firm’s strategy. The retail industry is becoming highly saturated as the world is becoming smaller; this point alone makes strategy a vital component to a firms success.
It is not often where you can find a store that is caught up with an image, that just by the smell. Customers can recognize its signature scent from a mile away, and that store is the Hollister Co. The brand is a subsidiary clothing brand of Abercrombie and Fitch. The concept of the brand was originally to target consumers aged 14-18, at a lower price point compared to their sister brand through its Southern California-Inspired image and casual wear. Hollister’s purpose was not to be a “core surf market,” but more about the lifestyle and inspiration.
The Internet is currently the third most shopped channel; brands are pushed to keep up with the trend of building an online shopping option for their consumers and this is evident through the increase in retailers offering online options for their consumers (Valerio). With solely digital stores like Net-A-Porter, Amazon and eBay, competition among digital stores and physical stores are tight. Retailers are pushed to keep up with the rise of digital shopping whether they want to or not. There are several retail implications with the rise of digital shopping, retailers are turning to multi-channel retai...