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2013

Figure 1 – Nordstrom (Source: Permalink)

Name: Amany Hamza
Student number: 21202244
Tutor: Mahen Ramsurrun
Course: MBA / Global Marketing
Nordstrom Global Marketing Plan

Table of Contents
1. Executive Summary ............................................................................................................................ 3
2. Introduction ......................................................................................................................................... 4
3. Situational Analysis .............................................................................................................................. 5
3.1. INTERNAL FACTORS ............................................................................................................................ 5
3.2. EXTERNAL FACTORS ........................................................................................................................... 6
4. Market Objectives............................................................................................................................... 8
5. Marketing Strategy ............................................................................................................................. 8
5.1. SEGMENTATION ................................................................................................................................. 9
5.2. TARGETING ..................................................................................................................................... 10
5.3. POSITIONING .................................................................................................................................. 11
6. Market Entry ....................................................................................................................................... 12
7. Market Programme........................................................................................................................... 13
7.1. PRODUCT ....................................................................................................................................... 13
7.2. PRICE ............................................................................................................................................. 14
7.3. PROMOTION ................................................................................................................................... 14
7.4. PLACE ............................................................................................................................................ 15
7.5. Physical Evidence: ..................................................................................................................... 16
7.6. PEOPLE........................................................................................................................................... 16
7.7. PROCESS ........................................................................................................................................ 17
8. Integrated Marketing Communication ......................................................................................... 18
8.1. INTERNAL BRANDING ....................................................................................................................... 18
8.2. EXTERNAL BRANDING ...................................................................................................................... 18
9. Monitor and Control ......................................................................................................................... 19
10. Budget ............................................................................................................................................ 19
11. Recommendation ......................................................................................................................... 20
12. Conclusion...................................................................................................................................... 25
13. Acronyms ........................................................................................................................................ 26
14. References ..................................................................................................................................... 27

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Table of Figures

Figure 1 – Nordstrom (Source: Permalink) .................................................................................................. 0
Figure 2 – Nordstrom Brasil (Source: Google, Adapted for the market entry into Brazil) .......................... 3
Figure 3 – Marketing Analysis (Source: Patricia Mink Rath) ....................................................................... 4
Figure 4 - Company Overview ..................................................................................................................... 6
Figure 5 – SLEPT Analysis ........................................................................................................................... 7
Figure 6 - Major Segmentation Variables for Consumer Markets ............................................................... 9
Figure 7 - Brand Positioning Based On Pricing Architecture .................................................................... 11
Figure 8 - Comparison of the Different Entry Modes ................................................................................ 12
Figure 9 - Product Assortment ................................................................................................................... 13
Figure 10 - Store Locations in Upmarket Shopping Mall ........................................................................... 15
Figure 11 - Physical Evidence - Mannequins ............................................................................................. 16
Figure 12 – Process environment................................................................................................................ 17
Figure 13 – Brand Value Equation.............................................................................................................. 18
Figure 14 - Brand Umbrella Strategy .......................................................................................................... 19
Figure 15 - Ansoff Matrix ........................................................................................................................... 20
Figure 16 - Holistic Communication Strategy across brick and mortar synergies .................................... 21
Figure 17 - AIDA Model ............................................................................................................................. 22
Figure 18 - Product Life Cycle and The Boston Matrix .............................................................................. 24

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Nordstrom Global Marketing Plan

1. Executive Summary

Figure 2 – Nordstrom Brasil (Source: Google, Adapted for the market entry into Brazil)

During the group presentation, the first marketing plan proposal for Nordstrom was provided
to make its first foray out of the U.S.A. into Brazil. Following that, this report sets out to analyse
the market entry plan as, throughout Brazil, opportunities abound for branded fashion retailers
to expand. This paper entrenches the development of marketing branding programme to build
the brand identity and cultivate loyalty to be integral in driving sales growth.

Furthermore, the appraisal presents a thumbnail sketch of Nordstrom’s leading position in the
Brazilian marketplace which is driven by inherent implementation activities through the IMC
(Integrated Marketing Communication) process. And with the attention to Brazilian consumer
trends and preferences, Nordstrom will dominate the Brazilian market.

To conclude, this recommendation encloses the imperatives for Nordstrom to sustain growth in
ROI (Return on Investment) by leveraging its brand values and attributes in the new domain,
where Brazil is the optimal territory for its debut overseas and the preliminary market to test its
potential to open up new markets south of the equator.

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Figure 3 – Marketing Analysis (Source: Patricia Mink Rath)

2. Introduction

Nordstrom Inc. - a fashion specialty retailer with 242 stores all in the U.S. (Yahoo Finance, 2013)
and the world’s number 10th best retail brand for 2013, according to Interbrand - is stepping up
efforts to expand globally. Hence, with the flagging economy and consumers are trading down
in home market, opening overseas is a way for Nordstrom to keep growing (Forbes, 2012).

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Nordstrom offers its customers a range of brand names and private label merchandise focused
on apparel, shoes, cosmetics and accessories. And through a series of smart investments and
strategies conceived out of management realisation that the customer is the one in the driver's
seat, Nordstrom showed ability to anticipate very well to the markets changes (see Appendix
AP-IF- FH).

Nordstrom integrated marketing framework addresses how its corporate brand communicates
and resonates with its targeted customers to meet their propositions in a way to live up to its
brand promise amid multifaceted efforts of CRM to retain customers and of CLV to acquire
new customers (Kotler et al, 2009).

3. Situational Analysis

The marketing environment for Nordstrom represents overwhelming opportunities. Figure 4
highlights Nordstrom’s strength whereas Figure 5 illustrates the SLEPT analysis. Related to
this, a rational decision to tap the Brazilian market can be in favour of Nordstrom corporate
brand viability in this market.

3.1. INTERNAL FACTORS

Nordstrom has a strong heritage; thus it authentically relates to and engages with
stakeholders in an ethical CSR approach. Its well-recognized brand is associated with a high
level of quality merchandise with strong brand presence in both high fashion market as well
as lower priced value market with its Rack stores. With its recent partnership with online
retailer FiftyOne Global Commerce, Nordstrom is aimed to penetrate global markets with its
high-end fashion selection. Thereof with the immense growth opportunities that abound in
Brazil, Nordstrom would benefit from entering into this new frontier. Nevertheless,
Brazil has one of the biggest upcoming markets in the fashion scene, by hosting two major
fashion events which define trends for the continent (see Appendix AP-IF-FE).

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Figure 4 - Company Overview

The Integrated omni-channel stores, convenience, and innovative data driven processes
accompanied by well -trained people committed to internal brand engagement are the
benchmarks of Nordstrom brand strength which has translated into higher sales (see
Appendix AP-IF-FH) that surpassed $10 billion in 2012 despite the deterioration of
economic conditions.

Nordstrom’s competitive edge is based on its updated cutting edge fashions to stay ahead of
its rivals. And to maintain perfect merchandise mix, it has perpetual inventory system and
its liberal return policy is legendary; the brand has been highly responsive to customer
demand. While its supply chain expedites merchandise in the areas of handling highly
innovative fashion products, partnerships are also enhancing the in-store and online
experiences. Nordstrom has partnered with fast-fashion retailer TopShop to entice younger
shoppers and increase its market share.

3.2. EXTERNAL FACTORS

Brazil’s dynamic retail sector attracts an influx of major foreign retail chains particularly
luxury players. The primary force driving the current surge in the fashion market is a

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healthy macroeconomic context with a pro-business government that welcomes foreign
investment as exhibited in figure 5 (see Appendix AP-EF-HM).

Brazil’s rise as an important fashion market results from a complex set of interconnected
conditions, such as a rapidly growing disposable income in middle-class (Snoad, 2012). This
is associated with increased consumption and significant migration into urban areas, where
most shopping malls are located. Moreover, about 62% of the country’s population is under
29 years of age. This favours the apparel market growth as most apparel sales come from the
younger population (Forbes, 2013). All of this represents dynamic growth opportunities for
Nordstrom’s expansion plan.
Figure 5 – SLEPT Analysis

Source: A.T. Kearney, 2008 (Adapted from Vivian Yeung, 2013)
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Aside from these shopping malls, the clothing retail industry is composed of small, local
retail companies that lack the economies of scale (see Appendix AP-EF-ES). Therefore the
majority of middle class has little choice but to buy from designers brands at a high price
point (Anaya, 2010). This leads to a golden opportunity to differentiate and position itself as
the market nicher to meet the needs of the underserved consumers.

E-commerce is on the rise as the country is the fifth largest globally in terms of digital users
(see Appendix AP-EF-EC). Such high Internet usage and participation in social media will
feature the way Nordstrom sells to and communicates with the target audience as
consumers compare products, share experiences and, more importantly, participate in the
creation of products (Global Intelligence Alliance, 2010). In this context to keep up with the
changes brought up by the post digital world, Nordstrom will embed holistic brand strategy
to fit with consumers’ needs and desires to create a seamless, branded and valued
experience (Interbrand, 2012).

4. Market Objectives

One of Nordstrom’s key corporate objectives is to strengthen its brand foothold by entering
new markets. In order to achieve this objective, Nordstrom decided to set the following
marketing objectives, by entering the Brazilian retail market, which are the ability to establish a
consistent brand globally in order to be able to develop a good base in this challenging market
as well as establishing breadth and depth of the corporate brand awareness in order to develop
a niche position with YOY growth of 5% for the next 3 years to secure long term profitability
and sustainable ROI .

5. Marketing Strategy

A Marketing Strategy will be to seize market segments and niche that competitors have
overlooked in the Brazilian market (Ganesha, 2003) – the poor scale of economies given the
relatively small size of the Brazilian market dominated by luxury department stores called
Daslu for the rich and famous (depicted Appendix AP-EF-DL) and domestic retailers with less
quality, thereof Nordstrom should lever delivering high perceived value defined by high
quality and affordable prices of its offerings for the target customers to be the market nicher
(FT, 2012).

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5.1. SEGMENTATION

To serve the right customers, Nordstrom would design customer-driven marketing
strategies to identify market segment and develop tailored market programs. In this context,
Brazilian market has carefully been segmented as illustrated in figure 6 to reveal attractive
target markets (Kotler et al, 2012). This segment will be of young, professional women
between the ages 16-35 who are highly sensitive to the latest fashion trends as exhibited in
figure 6.

Figure 6 - Major Segmentation Variables for Consumer Markets

Source: Adapted from Kotler et al (2012)

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5.2. TARGETING

After evaluating different segments, the targeted audience is customers who are members of
the emerging socioeconomic group with the robust purchasing power. To best advocate the
underlying prerequisites of targeted consumers, Nordstrom would follow a mass marketing
strategy, undifferentiated market, focusing on magazines such as Vogue Brasil and Contigo,
billboard, and newspapers.

Contrary with a look at established markets, Nordstrom would apply micromarketing
strategy that best serves to build the right relationships with the right customers (Kotler et
al, 2012).With regards to this, Nordstrom’s target customers would be grouped in three
main customer profile categories. The primary target would be the principle-orientated
customers, the innovators, while the secondary customer target is the status-orientated, the
self-treating, and last customer target is the savvy trendy one who is the experiencer (Figure
6). Drawing from Nordstrom’s customer centric approach, it would tailor its brands’
portfolio and marketing programs to suit the tastes of specific individuals and locations
(Kotler et al, 2012). As Nordstrom would be located in urban cities, the target customers
would value the latest of fast fashion trends, while individual’s preference could benefit
from aggregated usage of digital media across all its omni-channels.

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5.3. POSITIONING

The Brazilian fashion market is very fragmented thus Nordstrom will differentiate its
corporate brand by offering value proposition that fills the void in the Brazilian market for
luxury fashion forward brands at attainable prices. Nordstrom will be well positioned as
luxury affordable retailer to tap into the niche market by coveting and differentiating brand
offer to stand out against competitors. Beyond differentiating its physical product and
prices, Nordstrom would differentiate itself based on its services as of a legendry one.

Figure 7 - Brand Positioning Based On Pricing Architecture

Super
Premium
Price

Masstige -
Affordable
Well-
Renowned
Brands
Core Featured
Brand
Brands
Accessible

Fashion degree

Avant-grade- Tendency towards Casual
Oriented design “modern, elegant chic” lifestyle

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6. Market Entry

The above descriptive marketing analysis cites lucrative opportunities for Nordstrom to enter
the Brazilian market hence the decision to open Nordstrom branded stores will underpin the
growth potential that Brazil offers. Apart from its namesake brand, Nordstrom will also offer
the newest looks from established brands as well as unique products from rising young
designers (Figure 18).

Figure 8 -

The main challenges linked to this new market entry are mainly high import charges and
seasonal differences which is a tough logistical challenge for fashion retailers. Though it can
yield into a significant opportunity to build up designated competitive advantages to expand
into countries below the equator and that correlates with Nordstrom’s corporate objective to
become a global brand. Nordstrom would limit its risks up front by going into partnership with
local company; hence it will be the strategy to follow to enter the market there (see Appendix
AP-ME-LP). The comparison is stated in Figure 8.

While our plan emphasises on what the corporate brand stands for, to tune up with its brand
image and heritage, the Brazilian cultural resonances would be reflected into the marketing mix
programme (Kotler et al, 2012). The local adaptation of globally oriented marketing will portray

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the brand values and personality in terms of local language, practices, and the merchandise
offering to satisfy the target audience and create customer delight (Hackley, 2010).

7. Market Programme

To communicate its desired position to target the defined consumers, Nordstrom’s marketing
mix efforts, which are composed of the tactical 7Ps marketing tools, should support the above
noted positioning strategy (Kotler et al, 2012). Furthermore, Nordstrom would market
effectively by fine-tuning its marketing mix into a blended integrated marketing program to
create superior customer value. Nordstrom value proposition would be addressed by offering
attractive mix of value in terms of quality clothing, fashionable styling, excellent service and
attractive décor, albeit at affordable monetary prices. Hereunder is Nordstrom’s marketing mix
that would support its positing strategy.

7.1. PRODUCT

Nordstrom would offer a unique mix of unrivalled collection of designer brands, its core
brands, and trendy fashion assortment to make high end fashion accessible. Nordstrom
brand logo, hangtag and packaging would reinforce its brand identity and name recognition
on the customer’s purchasing pattern. Nordstrom would successfully address the sensual
aesthetics of Brazilian women through all its diffusion lines to create a need-satisfying
market offering (Kotler et al, 2012).
Figure 9 - Product Assortment

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Source: Pinterest
Nordstrom Global Marketing Plan

7.2. PRICE

Nordstrom would differentiate itself by being an affordable luxury upscale retailer by
leveraging the marketing mix, design and communication of its products in order to be
included in the masstige(1) pricing strategy to appeal to the target audience. As suggested
by Kotler et al (2012), psychological pricing is an important element to encounter because
Brazilian consumers expect that the higher the price, the better the quality is therefore the
implied premium pricing is applied (Standard, 2012)(see Appendix AP-ME-PP).
Furthermore, as noted in Figure 7, this pricing structure presents elasticity by applying
masstige to gain competitive advantage where is the gap in the Brazilian market for high
branded products with affordable prices (see Appendix AP-ME-MG). The fact that
Nordstrom would fit to all target audience’s needs would engender growth and create
loyalty.

Rather than only offering a single price point, Nordstrom would be able to be consistently
relevant to customers by the broad range of choices available that would underpin
affordability in the pricing strategy and adaptation to the variations in target audience
demands to deliver on its corporate brand promise.

Moreover, Nordstrom would be able to apply promotional pricing without the need to use
deep discounts as its prices are already competitive. The promotional pricing would be
adopted to stimulate customer traffic where the Brazilian market is heavily biased towards
discounts. Nordstrom’s price point would vary– from R$250 a bag to R$1,250 -plus pair of
Jimmy Choo boots.

7.3. PROMOTION

To optimize CRM and market share, after designing a cohesive mix of the other 7Ps,
Nordstrom at this stage would communicate the value proposition that is created from this
mix to its target consumers to persuade them to act on the market offering (Kotler et al,
2012). With focusing aggressively early at this stage on all channels whereby above and
under the line promotions to expand its reach to existing fans and new customers.

1Masstige products are defined as "premium but attainable," and there are two key tenets: (1) They are
considered luxury or premium products and (2) They have price points that fill the gap between mid-market and
super premium (Wikipedia, 2013).

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In the light of the notable emerge of digital media, Nordstrom would capitalise on this
through its implication of eCRM to treat customers as individuals with a fully commitment
to seamless engagement whether in stores or via the web therefore enhancing Nordstrom
brand experience and providing high perceived value to customers (Kotler et al, 2012).

7.4. PLACE

Nordstrom will open four female full-sized stores, in urban cities in the most upmarket
shopping malls where stores generate the highest sales per square foot to fully reach out to
its affluence target market. To raise awareness of its stores, it would seek to modernise its
stores through the use of large format photography as well as innovative product
presentation with more tantalising and eye-catching fixtures, and a well-designed free-form
layout. Furthermore, Nordstrom would define store space by lifestyle sections. This
approach makes it easier for shoppers to put together outfits to deliver a compelling
customer proposition. The stores would be sustainable in the long term through energy-
saving initiatives and environmentally adapted materials. To integrate all selling channels,
Nordstrom would introduce complimentary Wi-Fi in its stores to allow customers to browse
and buy products via IOS (iPhone/iPad) platform in its brick and mortar stores as well as
online site.

Figure 10 - Store Locations in Upmarket Shopping Mall

(Source: Google)
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7.5. Physical Evidence:

The grand opening of each of the stores with extensive promoting for it in all media related
would send messages that Nordstrom has arrived into the Brazilian market and would open
its doors on the scheduled openings. Also the ornate displays will aim to showcase the
newest apparel the stores have on sale whereas mannequins dressed in new apparel, brand
posters are devised. In the latter after the opening, people with experiences of the
merchandise will dedicate their testimonies.
Figure 11 - Physical Evidence - Mannequins

(Source: Google)

7.6. PEOPLE

As part of the CSR, internal communications is the foundation for broadcasting brand
values to help capture a loyal customer base, while the promotion mix paves the way for
dialogue with customers to interpret their needs to main suppliers. Hence there would be a
dynamic interface between all stakeholders to capture value across the board.

Leveraging brand DNA needs to be through aligned internal workings and structures;
hence managers will be creating, maintaining, and supporting the corporate service culture,
where outstanding acts of customer service will be rewarded. This strand will stem from the
cohesive culture reinforcing brand values.

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7.7. PROCESS

Service with a smile would a pivotal part of Nordstrom's brand essence. The salespeople,
with their elegant dress code, would go above and beyond in their duties. Hence, sales
associates on the floor will be empowered like entrepreneurs, given tools like well-stocked
stores, digital customer profiles, and thank-you notes to keep track of and service individual
customers in the interest of long term relationships. Furthermore, there will be a
complimentary pianist playing music in the store, which adds to the affluent ambiance of
the Nordstrom shopping experience.

Figure 12 – Process environment

(Source: Nordstrom)

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8. Integrated Marketing Communication

To sustain strong brand position, IMC has to achieve and maintain the brand equation in Figure
13 through the internal and external brand activities as depicted below.

Figure 13 – Brand Value Equation

Tangible and intangible benefits

Brand value = Benefit received by customers
Costs to the customer of brand purchase

Total costs of ownership

(Source: UWL, The Blue Book)

8.1. INTERNAL BRANDING

External recognition of Nordstrom’s brand would start internally with a consistent
and interrelated message through innovative channels about what the brand
identity. This is based on shared attributes among the employees in all interfaces
with the target audience. They would be the cornerstone in building the right
image and in communicating a compelling value proposition to the customers,
with commitment to design the want-satisfying offering. This commitment is
endowing the brand’s credibility (Figure 16).

This approach would reflect Nordstrom positioning and grow the equity of its
brand, not devalue it (Cullather, 2012).

8.2. EXTERNAL BRANDING

The dynamic brand strategy will provide both exclusivity and flexibility to meet or even
exceed the expectations of these potential customers to retain future customers and acquire

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potential ones. This is suggested in the following diagram (Figure 14) which is a visual
structure of Nordstrom’s brand umbrella strategy.

Figure 14 - Brand Umbrella Strategy

Nordstrom Group

International Featured
Core Brands
High-end Designers
Brands

Through deploying click and mortar stores, communication channels will penetrate the
market place with this strong brand offering.

9. Monitor and Control

Nordstrom will set up an effective system for obtaining feedback and controlling the marketing
efforts, this will involve both primary and secondary market research by holding well
moderated focus groups, and conducting web based surveys (Dhruv et al, 2007) to evaluate the
actual activities’ performance and take corrective actions where needed(Isobel, 2008).

10. Budget

Monetary resources will be allocated to the marketing plan as outlined in the projected budget
in table 1. The strand is to optimise the usage of these resources as a result of efficient upfront
planning, communications and on-going monitoring. To monitor against any adverse actions,
there will be 2% of the budget reserved to execute any contingency plan needed.

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11. Recommendation

The above annotated marketing plan to open Nordstrom branded stores in Brazil - the giant of
the Southern Hemisphere - will help take advantage of its untapped market potential.

Products
Figure 15 - Ansoff Matrix
Exiting New
Exiting

Market Product
Penetration Development
Market

New

Market
Diversification
Development

(Source: Adapted from Kotler et al, 2009)

In sign of the booming Brazilian fashion scene, Nordstrom will benefit from extending its reach
southward, new market development approach (Figure 15), by opening four stores between
2013 and 2016– in most lucrative urban shopping malls - one apiece in Sao Paulo in summer
season of December 2013, to be followed by Rio de Janeiro, Brasilia, and Salvador.

Getting started by employing a healthy holistic marketing strategy shaped by tying
up between its partners (Figure 16), Nordstrom’s employees as referred earlier in the
7Ps, are perceived as a business partner leading to a lasting partner relationship with
the final partner who is the Brazilian customers .

Long-term quality and diversity of brands will lie at the heart of the expansion
strategy; this will be Nordstrom’s brand USP. Henceforth, the core strength of the
promotion strategy would underlie getting the target audients’ attention at the right
place and the right time through a message that will resonate the brand’s USP in
their mind. Living up to the brand promise, would breed loyalty, consistent
engagement and recommendations.

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Figure 16 - Holistic Communication Strategy across brick and mortar synergies

Customers

Engagement B&C Customer-Centricity

Sales and Support People
Capture Value in Return
(Corporate - Marketing

Feedback
Internal Marketing

Capture Value
Objectives –

Proposition
Department Manager

Want-Satisfying offering B&B Products

Suppliers, Distributors,
Regional Managers

ROI Commitment

Board of
Directors

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Figure 17 - AIDA Model

Interest Action
•Marketing •Incentives to
communication act and buy -
•Appealing •Purchase
mix promotion mix
product •Creating sales
offering

Awareness Desire

(Source: Adapted from Kotler et al, 2009)

Prior to the opening of the stores, Nordstrom Brasil will go aggressively on popular
Brazilian digital media. It will start by getting into affiliate marketing; this
concentrated exposure will help building the brand awareness and address target
audience (Figure 17). This approach will be customised in all aspects of engagement
with customers. Another implication in other blogs is to use a pictorial questionnaire
to build up the profile of a potential customer who chooses her colour and style
preferences from pictures of fashion items and celebrities . Then, she will receive a
personalised shopping list (Forbes, 2013).

The grand opening will be promoted by one of the local young popular celebrities.
The advertising campaign will feature a Carnival-inspired celebration with fashion,
tying it to local and cultural events. While the theme is in vibrant colourful branded
collection with the influence of Brazilian Havaianas, the digital media will correlate
to this campaign by offering interactive events such as a prize to choose the best send
local designs to be part of Nordstrom’s collection.
There will be implementation of reward programmes to retain the customers as well
as other sales promotions. Furthermore, it will snap up promising Internet ventures
to diversify to be resent in new retail platforms. The social media strategy will extend
well beyond Facebook, Twitter, and YouTube ’s Brazilian domain to an array of buzz-
generating fashion and photo-sharing sites like Pinterest.

Leading up to, during and in between the 2014 Football World Cup and the 2016
Summer Olympics, Nordstrom’s advertising campaigns will take place
heavily. While the opening of the first store in Sao Rio in summer 2013 (Dec -March)

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will build customer base before the events. Thus PR initiatives will strike a chord
with football fans around the world. The decision to bolster its expansion in light of
these events will increase its chances of build ing a worldwide awareness and
recognition for its brand and gain insight B &B opportunities by tailoring the events
costumes and supply other merchandise.

The use of PR, advertising, social media and sponsorship will build brand awareness
while personal selling, sales promotion and merchandising will draw consumer
interest. In other words, advertising will effectively instil a degree of urgency in the
target market, while the latter will establish the desire to purchase the product, with
a push for the sales (Figure 17).

Nordstrom’s savvy customer service will set it apart from contending stores, the
emphasise will be on creating innovative ways to be at the customer’s fingertips, by
launching online website in Portuguese language with new apps that makes it easy to
shop anywhere. In store, the innovation should not stop, though having the best of
all in modernised brick and mortar stores to increase product rate of sale. Therefore
with the compelling merchandise and unyielding commitment to customer service,
Nordstrom will be the retailer that customers trust. On the other hand there must be
a balance to not undermine the image of the brand by having all the digital
experience focuses on discounts. The digital platform will be seen as central to the
brand building activities and will have a role to play in reinforcing the whole pricing
strategy, not just communicating discounts (Interbrand, 2012).

The Nordstrom supply chain must have the ability to respond to a wide range of
quantities, meet short lead times, while the management has to adapt to the projected
lifecycle of the product, with actions required as explained in Figure 18.

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Figure 18 - Product Life Cycle and The Boston Matrix

Sales
Cash from Portfolio (B – Featured
Brands) through Exclusivity, will be
(1) used to support Portfolio (C- Core
Brands) Portfolio –A now possibly a (3)
Portfolio (A – well-renowned dog due to new entrants?
Brands) is at Maturity stage –
cash cow. Generates fund for the Cash from Portfolio (C-
development of Portfolio (D- (2) Core Brands) will be used
New Line) to support growth of
Portfolio (D- New Line)
and possibly finance
extension strategy for B?

D
B C
A

Time

Since Nordstrom’s entry success into Brazil depends on consumers purchasing its
products, it would appreciate the importance of establishing trust and loyalty with
its customers and employees. Nordstrom would create a CSR program to promote its
affiliation with the Brazilian environment and concentrate on: Supporting
Communities, Sustaining the Environment, Protecting Human Rights and Caring for
its People.

However, by entering into Brazil market, it will have to guard against competitors,
though building strong relationships with customers, suppliers and other
stakeholders should help thwart competitors. As of the uncertainty of future a
contingency plan will be needed, hence there will be a view to open off-price store or

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even to launch a new line designer in order not to damage the brand equity while
looking for other solutions like a merge.

12. Conclusion

The expansion plan in Brazil is feasible, recommended and will strategically facilitate future
expansion to new markets in the Latin American region. As Nordstrom Brazil will become the
hub for the Latin American region, this entry is just the beginning.

To make the best use of Nordstrom’s resources by focusing on potential consumers that can
best serve through customised marketing programme, Nordstrom will build value-laden
customer relationships for her who will capture high perceived value and for Nordstrom which
will reap augmented value in the form of ROI. This well planned integration between
marketing mix elements would transform the marketing strategy into real value for both. Thus,
beyond practicing good CRM, Nordstrom must also practice good partner relationship
management with the customers (Kotler et al, 2012).

Finally, Nordstrom will then integrate its communication efforts to broadcast this value
proposition to target consumers and persuade them to act on the market offering. This is the
route to success of Nordstrom’s expansion plan in the Brazilian market positioning itself as a
niche retailer with the potential to accelerate the 5% market share of the plan objectives.

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13. Acronyms

ACRONYM MEANING
CLV CUSTOMER LIFETIME VALUE
CRM CUSTOMER RELATIONSHIP MANAGEMENT
CSR CORPORATE SOCIAL RELATIONSHIP
IMC INTEGRATED MARKETING COMMUNICATION
ROI RETURN ON INVESTMENT
SLEPT SOCIAL, LEGAL, POLITICAL, TECHNOLOGY
SWOT STRENGTH, WEAKNESS, OPPORTUNITIES, THREATS
USP UNIQUE SELLING POINT
YOY YEAR ON YEAR

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14. References
A.T. Kearney (2008) Brazil is Most Attractive Emerging Market for Apparel Retailers Looking to
Invest Abroad [Accessed on May 11, 2013] http://www.atkearney.com/en_GB/news-media/news-
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