Nordstrom: A Marketing Analysis “Does the Company’s Marketing match its Mission?”

Justin King Brittany Culver Michael Jorgensen


Brief of Contents
Executive Summary Introduction Part 1 Swot Analysis
1. Internal Strengths and Weaknesses • History • Nature of Firm/Current Situation • Resources of Firm • Policies and Objectives 2. External Opprotunities and Threats • Social • Demographic • Economic • Competition • Technological

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Part 2 Marketing Strategy
3. Target Market 4. Marketing Mix • Product • Place/Distribution • Promotion • Price

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Part 3 Charts
1. Porter’s Five Forces Model 2. Porter’s Value Chain 3. List of Nordstrom Employee Benefits

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Conclusion References

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Executive Summary
Nordstrom was founded in 1901 by John W. Nordstrom and Carl Wallin. From the companies beginning, the business philosophy of Nordstrom has been to provide the best possible service, selection, quality and value to its customers. This philosophy has remained unchanged for over 100 years. Today the mission of Nordstrom is still the exact same. Over the years Nordstrom has created individual departments that focus on the individual lifestyles of the customers. The company nor only provides its customers with a wardrobe, but also a countless line of accessories, cosmetics, and fragrance. Over the past few years, the company has added new brands to its product line to satisfy its customer needs. In order to give the best possible service to the customer, the company plans on continuing to update the product line as new customer desires evolve. The employees are extremely focused on creating an environment of customer service within the store as well. The employees are not only focused on meeting the company standards, they are also focused on reaching the standards they have set within their own department as well. Each employee is trusted by the store managers to make good decisions and represent the company well. This trust has built confidence in the employee and enables them to focus all of the energy toward the customer. The atmosphere of the store also shows evidence of the company mission. The store is easy to navigate through, specific soothing colors are well placed throughout the store, and there is always a piano that can be heard playing in the background. These three things create a soothing and comfortable atmosphere for the customer.

store atmosphere.4 Nordstrom’s mission of providing customer service. . selection and value to its customers is carried out in every aspect of the company. The company employees. The Mission Statement of Nordstrom is definitely evident in its day to day operations. and product line all display extraordinary qualities of service. quality.

Now for the first time in history. Now. Right form the start. 2006). “customers were greeted with a selection of both shoes and fine apparel” (Nordstrom Employee. and gain greater market penetration. Nordstrom took on a new name. Nordstrom offered a diverse product mix. The company was soon taken over by John W’s sons. John W of Sweden left his home and moved to Alaska where he struck gold. he met a man named Carl Wallin. Organizational Philosophies) Nordstrom was co founded 1901 by a 30 year old man named John W Nordstrom and his partner Carl Wallin. 2006). . Focusing on this philosophy helped Nordstrom develop a competitive advantage in the shoe market. 2006). and ventured into the clothing market. 2006). “Nordstrom Best”. something no other competitor offered.5 Situation Analysis (SWOT Analysis) Internal Strengths and Weaknesses History (Sales. quality and value” (Nordstrom Employee. Profits. selection. Under their management it “grew to become the largest independent shoe chain in the United States. At age 16. the business philosophy was “based on exceptional customer service. “who owned a shoe repair shop in downtown Seattle” (Nordstrom Employee. upon entering a Nordstrom store. Due to their success. By the 1960’s the current market had started to reach maturity and the company began to look “for new ways to spread its wings” (Nordstrom Employee. In an attempt to diversify itself. The two decided form a partnership and open a shoe store entitled Wallin & Nordstrom. While in Alaska. the company opened a new store in 1923.

Today. the company decided to go public. while the Rack enabled Nordstrom to orient itself to a completely new crowd. the company needed to revise its marketing strategy and further its market penetration. 2006). surpassing $100 million in sales. Nordstrom maintains the same focus of offering “the customer the best possible service. Even though Nordstrom was experiencing tremendous success.6 In 1971. and Nordstrom’s marketing plan seemed to be working. By 1975 the company penetrated into the markets of Alaska and California and by the late 80’s. market share was increasing. more than 100 years after its establishment. This store was a “clearance center for full-line store merchandise” (Nordstrom Employee. 2006). making it the largest volume specialty store on the west coast. Nordstrom” has “created fashion departments that fit individual’s lifestyles” (Nordstrom Employee. Nordstrom has created a unique store atmosphere designed to enhance the shopping experience of the customer. In order for Nordstrom to retain its competitive advantage. the management was not satisfied. 2006). selection. There was still room to grow. Two years later Nordstrom reached a critical point in its business. Profits were growing. quality. Focus on serving the market (or customer’s needs and wants) has . This is evident in the product line and store ambience. and value” (Nordstrom Employee. the company opened up the first Nordstrom Rack in the mid 70’s. “Instead of categorizing departments by merchandise. The higher prices in the regular store targeted the upper segment of society. under the third generation of management. The company decided to take action.

one experiences a sense of calmness that is not experienced when walking into other department stores. a diagram is made and a record of sales is kept for that layout. “careful attention has been given to achieving an esthetically pleasing atmosphere”.7 helped Nordstrom grow from a small shoe store in Seattle “into a nationwide fashion specialty chain” (Nordstrom Employee. 2006). It brings about feelings of self assurance. At Nordstrom. wealth. Immediately after walking into a Nordstrom. Every time the layout of a department changes. Nature of Firm/Current Situation Aside from Nordstrom’s customer service. ambition. Deep earthy colors present customers with a comfortable and desirable atmosphere. purple and green are used to color the store. Nordstrom has been able to develop the most economical and profitable layout for the customer and the organization. Every color is strategically placed throughout the store to enhance the shopping experience. The Nordstrom colors are also carefully selected. dignity. For example red is chosen because it produces feelings of “energy. one of its most influential qualities is the store atmosphere. These two colors are used to promote confidence and feelings of satisfaction within the customers as they . luxury. From this information. sophistication. blue. a Nordstrom customer commented (Bee H. and power. royalty. 2006). Nordstrom has put a lot of research into effects that color has on the human psyche. Deep red. brown (wooden floors). high aspirations. Nordstrom has put a lot of research into testing different layout scenarios within each store. 2006). Purple is another color that is placed in distinct locations throughout the store. and attention” (Bear . fame. desire.

The partnership is working. jackets and heavier clothes are always hung on wooden hangers instead of plastic.8 shop. Clothes are always neatly folded and clothing racks are well separated. a computer design major at North Park University in Chicago said “these couches are a great place for me to relax while my wife spends all my money”. Aside from the colors. comfortable couches are usually found somewhere around the piano for tired shoppers to sit down and for men to wait while their wives shop. The most famous contribution to the atmosphere of Nordstrom is the Piano. Nordstrom has created a “partnership with Levine School of Music” where it hand selects students to work for the company upon graduation. Andrew Cooper. they are too close together. Nordstrom has separated its products into different departments for men and women. To provide even more relaxation. “the dude playing the piano just adds to the calm shopping atmosphere” commented one man after a day a day of shopping (Bee H. To produce an even cleaner look. Organization is the primary focus when setting up the departments. A general rule of thumb is that if two people can not walk side by side between two fixtures. 2006). The color scheme is critical in creating a store atmosphere that is desirable to customers. employees are also given a tie to wear which almost always includes the color purple. Purple is also found near the more expensive items in the store. Within each department the clothes are either laid out on hanging racks or on tables. Resources of the Firm Finance: . the product layout also plays an essential role in providing a even-tempered atmosphere. This helps provide better service as each department can cater to the specific needs and wants of the customer. During sales.

promotions. Even though the sales person is the front man for the company (being put in positions of direct contact with the customer). These earnings jumped unexpectedly and are up from $107. one of its biggest resources is in the area of finance. Blake Nordstrom. It states that.). says that people in support positions “like myself or someone in human resources that isn’t on the floor manning a register. 2001). and create a customer friendly in-store atmosphere. The way the employees are treated and valued is a perfect portrayal of the company’s mission of providing the best possible customer service and value to the customer.9 Nordstrom uses a verity of resources to help attract new customers and retain its current customer base. “Nordstrom salespeople make decisions as if managing their own business.” needs to understand that their job is . they are trusted to do what is right. Everyone else in the company is there to help the sales staff make the sale and please the customer” (Mulady. the human resource and management team act as the glue that holds the company together. Nordstrom recently “reported third-quarter earnings of $135. By far. 2006). Human: Nordstrom’s employees and management are the company’s most valuable resource. etc.7 million” (Portland Business Journal . This money has given Nordstrom the ability to put on expensive training programs for employees. send out bulk mailings to customers (such as catalogs. The president of the company.5 million earlier this year. An article written in the Seattle PI describes exactly why this is true. build new stores. purchase personal book (a customer database program). The financial resources of Nordstrom are an essential part of the companies marketing plan.

The employees of Nordstrom are what keep the company going. Physical: Currently Nordstrom operates “156 US stores located in 26 states” (Nordstrom Staff.10 to use the “energy and the activities they’re doing (to) contribute to a better customer and employee experience” (HR Magazine. The trust built between employees is critical in helping Nordstrom provide the excellent service it does. In an interview he commented that if a customer is in need “I will find them the suit. Without trust and support of all the company’s workers. 2002). a baseball player needed a special shirt for a conference that Nordstrom did not have. there are 99 full line retail. The manager of the men’s suit department at the Tacoma Nordstrom comes in regularly on his days off. they are great” (Mulady. 49 Nordstrom Racks. The shirt was then delivered to the player’s hotel room that afternoon. It is not unusual for employees to go in on their days off to meet a customer that is in need of a new suit or pair of shoes. In one situation. 2006). One employee comments: “We rely heavily on the tailoring shop. The sales employees have a tremendous amount of trust in the tailoring shop. Nordstrom would be just another company. 2001). Of these stores. 2001). To solve this problem. It is therefore extremely important that the workers in the HR department stay connected to the selling process in order to stay connected with the employees. It is this connection that helps the employees “take care of their customers”. the sales person took a few shirts up to the tailor shop and used the material to make a brand new shirt. get it altered for them so they can have it in time” (Mulady. 5 .

Customers of Nordstrom can even enjoy a unique shopping experience without setting foot in the store. But we don’t expect you to do it without help from us” . The use of good judgment is the number one guiding principle for the employees of Nordstrom. The first page of the employee “Code of Business Conduct and Ethics” states “at Nordstrom.11 Faconnable boutiques. and is seeking to expand its physical existence even further. 2006). but may not have the time or desire to come into the physical store. president. Policies and Objectives of firm Nordstrom has established many different policies designed to keep employees on track with its mission. 1 free standing shoe store. The company has developed a unique online and mail order catalog designed to reach those customers who are interested in its products. Nordstrom has also planted stores internationally where it operates 35 Faconnable boutiques. reach two diverse crowds. Nordstrom is currently in the process of establishing a store in Kenwood. the company is not satisfied. we expect you to use good judgment when it comes to taking care of our customers. Even with all of these stores. When interviewed about this decision. These resources are extremely important to the company. primarily in Europe. They reach customers who have heard good things about the store but do not like to shop. and 2 clearance stores. Cincinnati. The physical stores provide a tangible place that customers can relate to all across the country. The two contrasting stores (online and physical). while the online stores take advantage of the stores reputation. exclaimed “there is still much more opportunity to increase our presence around the country where our customers live and shop” (Fasiq. Erik Nordstrom.

drugs or alcohol. sizes. 2006).12 (Nordstrom Management. “Personal Book and its contents are confidential and… should be used in accordance with the Confidentiality and Nondisclosure Expectation” (Nordstrom Management. and preventing theft. the company states that. This policy was designed to help the company keep their “reputation for excellent follow-through and service” (Nordstrom Management. 2006). their personal book is closed off to them and returned to Nordstrom. stealing. Employees are not allowed to accept gifts from anyone with whom they do business. All of these policies help keep Nordstrom on track with its mission. However. Accepting a gift can create the inkling that the gift inappropriately influenced the business transaction. When an employee ends his/her career with Nordstrom. Almost all of the sections in the handbook for employees end with a line about using good judgment. . This policy lets the sales people know that the management stands behind them at all times. etc. and professional. This policy was instilled to uphold Nordstrom’s reputation of acting fair. This shows that Nordstrom has confidence in their employees. since this in personal information. 2006). Aside from the standard company policies reguarding sexual harassment. The code of Ethics also tells employees that the company expects its employees to use personal book (a database that includes customer’s information such as purchases.) on a daily basis. Nordstrom truly believes that if the employees use good judgment. the company also has some policies that make it unique. the customers will get the best possible service the company can offer. honest.

These brands are brands that all of the target market of Nordstrom considers being very nice. Nordstrom employees also have many long term benefits available to them. where an employee can divert 50 percent of his/her compensation on a pretax basis. Basic short term and long term disability coverage. Nordstrom provides many benefits to its employees. in Belleview Nordstrom offers a more upscale product line such as Gucci and other upper echelon brand names. It also provides paid time for observed holidays. Because of this. These Benefits include a 401(k) and profit sharing plan. Full medical/vision and dental coverage are also provided by the company. the store also sells products ranging . Each employee is also provided with a twenty percent discount at all Nordstrom locations. These benefits help the employee find meaning in their work and promote a positive attitude throughout the organization. Northface. Cole Hann. For example. This difference in product lines is evident in the Nordstrom in Tacoma as well. A complete list of all the benefits provided by Nordstrom can be found on page … in the back of this report.13 On the opposite end of the spectrum. as well as basic life insurance and long term care are also included in the standard benefit package. Polo. The company provides time off with pay for personal and family needs. the store carries a more neutral line of products such as Calvin Cline. External Opportunities and Threats Social Social factors play a big role in what the way the company operates. To reach the outer limits of the Tacoma population. and Tommy Bahama. The Tacoma store is located in an area surrounded by many different social classes. and an Employee stock Purchase Plan where the employee can purchase stock at a 10 percent discount.

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. customer and vendor are respected” (Diversity Affairs Team. women. Ten years ago. it would not be a common sight to see moms shopping with their children. Now days a majority of women in the United States enter the workforce after college. Nordstrom is also a company that strongly believes in diversity. to the Nordstrom brand (reaching the less wealthy consumer). Teenagers. Nordstrom has created distinct departments to reach these women. Because of this Nordstrom has changed its focus toward the individual. . The company believes that an atmosphere encouraging diversity helps the employees as well as the customer. women can find suits. 2006). Now days. In these sections of the store. It is “deeply committed to cultivating an environment where the contributions of every employee. but in the physical store itself. Creating a diverse company is an important step that Nordstrom has taken to broaden its customer service. Demographics Demographic issues are a big an important issue at Nordstrom. or dad’s waiting on the couch by the escalator with their children. The American family has also changed dramatically in the past decade. and men all come alone or with their significant other. This is shown not only in the mission of the company. it is almost unheard of to see families walking around the store.14 form Coach and Burberry (reaching the wealthier population). and other more expensive dress clothes that Nordstrom would have not carried 20 years ago. 2006).

employees all over the store would stop and talk with them and a lot of the mannequins were placed together (a man with a woman. make up and teen clothing. or a child). and it is rare enough to see a kid. Competition Nordstrom is dealing with competition on many different levels. . It is competing with higher end stores such as Saks Fifth Avenue. Because of the diverse competition. In order to retain market share Nordstrom has shifted its focus more toward the individual. Neiman Marcus. There is also a difference in the store layout at Saks. It has similar products. Saks is slightly more expensive and is well known for its “much higher brand names” (Nordstrom Comparative analysis). Now the mannequins are all placed individually around the store. but targets a smaller market and carries less variety. and Barney’s. It is also competing with second tier stores such as Macy’s and Bloomingdale’s. which it is categorized by department and where popular trendy goods are on the main floor. Saks “focuses on other products such as bridal” (Nordstrom comparative analysis). Unlike Nordstrom.15 The every store use to give balloons to children. Saks Fifth Avenue: Saks Fifth Avenue can be categorized as a mini version of Nordstrom. Nordstrom constantly stays one step ahead with its unprecedented customer service. It has downsized its youth departments and added more upscale departments. and the upper floors are bridal and much higher priced brands and products” (Nordstrom comparative analysis). Saks “bottom floor consists of shoes. let alone a kid with a balloon. In comparison to Nordstrom. To make it unique.

the products offered. the major difference between the two companies is not in the layout of the store. The company has a hand picked product development team that travels to Europe looking for new fashion ideas. This statement is found at the employee entrance of almost all Nordstrom stores across the country. The mission statement of Saks is completely different from that of Nordstrom. On the other hand Nordstrom focuses on the treatment of the customer. which is a statement that is well carried out by the company (Nordstrom comparative analysis). Saks says the focus of their company is “to be a great place to shop. Bloomingdales is known for its “Big Brown Bag” which is something that all avid shoppers like to be seen carrying around. The major difference is the focus of the company. Nordstrom has a focused store with individual departments and consistent . The extreme focus on product development and diversity has made the company famous for having a tremendous product mix. On the other hand. Bloomingdales: Bloomingdales might just be one of the most famous stores in the world. It does not have a formal mission statement but the company’s core values can be summed up by the statement “through these doors pass the most courteous people in the world”.16 However. The Layout seems to have no structure and Bloomingdale’s pricing ranges form being competitive with Foley’s to stores far more expensive than Nordstrom. some stores rather cluttered. or the price of the goods. Money is what seems to be the number one marketing objective of Saks. a great place to work and a great place to invest” (Nordstrom comparative Analysis). However. If they do not find what they are looking for they create it. The mission of Bloomingdales is “to seek and create”.

Some customers even suggest that “Macy’s looks more like discount store every year rather than a department store” (Nordstrom comparison analysis). it is the focus of Macy’s that sets them apart from Nordstrom. The specialization of household products and cheaper prices keep .17 prices. Its does not have as much variety in its stores. but it can special order and create any product that a customer desires. not their service. This department is so large that many times it is located in its own building next to Macy’s. Bloomingdales website also reflects its store atmosphere. However. unlike Nordstrom. The website lacks structure and is confusing to sift through. This is again where Nordstrom gains a competitive advantage. It has a separate department for home furnishings. It is a full line of goods which overwhelms the customer. This focus like Bloomie’s has also led the store to look cluttered. Macy’s: Macy’s seems to have a similar strategy as Bloomie’s (Bloomingdales). Again. Macy’s has a good selection of home products in its retail stores as well. The site is user friendly and easy to navigate through. This creates more satisfaction for the customer because they can easily find what they are looking for. It offers a smaller product mix in stores to help keep the customer from getting confused and overwhelmed. The company is all about selling their name. Nordstrom’s website also reflects it’s in store characteristics. Macy’s offers a larger selection of home products than Nordstrom. Macy’s also focuses on having a tremendous product width as well as depth.

However. The systems are personal book and a new inventory system at the cash registers. who sold them what. saying. such as JC Penny. 2005) The CFO of Nordstrom commented on the lagging information systems. Nordstrom has spent a total of $350 million on IT products and has found “that technology has improved. These two systems have helped bring Nordstrom’s customer service to a new level. 2005). “our people at one time were our information system” (Levinson. (Levinson. Nordstrom’s focus on the customer and the employee gives them the competitive advantage in the industry. the customer service in which it takes such pride” (Levinson. “Over the past four years”. and Belk. Looking at the other models around them. During this time the company was reluctant to consider IT “for fear that it would come between the store and its customers” (Levinson. how much he/she spent. 2005). Nordstrom has integrated two major systems into the company within the last five years. their birthday and other valuable information that sales people need to enhance sales. 2005). Federated Department Stores. This is a valuable tool because the sales people can create . It can track what the customer bought. not degraded. Technological In the 1900’s the information systems of Nordstrom “lagged behind many retailers”. Nordstrom became an early adopter and began buying IT technology. The threat of other companies gaining a heavy advantage with new technology was too much to handle. their size. Dillard’s.18 Macy’s competitive in the market. Personal Book: Personal book is new computer software designed to help companies keep track of customer information. A sales slump in the year 2000 was enough to convince Nordstrom that it was behind the times.

and certainly wasn’t very quick”. Before this new system was installed in 2003. The distribution departments could not tell how much inventory was needed in each store. The implementation of personal book has dramatically increased sales at Nordstrom. 2005). This old system was definitely “not the most accurate way to [manage inventory]. 2005) Total sales for the second quarter also rose 7.5 billion” in the first quarter of the previous year. commented Peter Nordstrom during a conference call. inventory was counted by hand. Nordstrom analysts also have reported that 68 percent of the business from the top sales people is generated from personal book customers. The new system is based around an electronic inventory management system and an automatic replenishment function. Adding a personal touch is the difference between good and great companies.7 percent to $1. . This created a problem for the company. Nordstrom’s first quarter sales increased “7. Inventory System: The new inventory system has proven to be “a tremendous home run” (Levinson. 2006). (Levinson. 2005).7 billion.8 percent.19 a more “personal” relationship with the customer. compared with $1. After its introduction in 2005. More information about personal book can be found on page …. This quote describes exactly what puts Nordstrom in a class of its own. CFO of Nordstrom Michael Koppel reported that “approximately a third of all sales are a result of interactions between sales associates and customers facilitated with personal book” (Levinson. One former employee quotes “the personal book was a very useful tool and instilled in me the importance of building and maintaining customer relationships” (Palma.

decreasing by 5. For women’s clothing alone.6 percent” (Levinson. inventory continued to go down in 2004. Inventory was also turned 10 percent more in 2004. Likewise. The results of this new system worked wonders for Nordstrom. This helped the distribution department immensely. This loss of money led Nordstrom to purchase an inventory management system.20 which resulted in a lot more discounts than the company should have had. Every time a product was rung up at the register or returned to the store. When a customer wanted to purchase a product. there are 14 clothing . and how many were available at other locations. a sales person could look it up on the computer to see how many were in the store. Marketing Strategy Target Market In each Nordstrom store there is the potential for one consumer to encounter upwards of 30 different departments. 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 switch to this way of inventory. Koppel stated that the inventory in 2003 (they year the system was integrated). 2005). the in store inventory went up or down accordingly. The new inventory system was an electronic system which took a lot of the work load off of the Nordstrom staff. It also kept track of in store inventory. This also helped the sales dramatically increase customer service. It helped the company determine the demand for each product by using historical sales and fashion trends. They could now replenish the inventory of each store when it was actually needed.3 percent. went down $15 million or 1. Now it could allocate the proper amount and type of merchandise to each store.

Brass Plum (B. This makes Nordstrom’s overall target market homogeneous in respect to the demographic and psychographic segments.P. is looking for a quality product that they know will be guaranteed by Nordstrom for a lifetime. the members of each of these markets do have a main connecting quality. Each customer. and Men’s Sportswear. While that price is more reasonable than some places. Point of View for women. For the sake of space. The multiple departments within the Nordstrom store cause the target market for a single Nordstrom store to range across a broad spectrum of potential buyers. offers the latest fashion trends for the younger women at a price that is more reasonable than high-end boutiques and department stores. Each consumer knows that while the products offered may not be the cheapest. B. Consumers are also looking for a product that is not only well made. but that is usually contemporary in relation to current fashion trends.P. A person’s income and lifestyle can be the deciding factor of whether they can afford to shop at Nordstrom or not. to elegant ballroom attire. they are quality made products that come with an implied warranty by Nordstrom. to ensure that consumers can return any product at anytime. this paper will look at the target markets of three specific departments within Nordstrom that embody a large number of Nordstrom’s clientele: Brass Plum for juniors. for any reason. it still is not as cheap as some other . no matter the department in which they are shopping. ages 16-22 in the middle or upper class. Nordstrom does not have a return policy. While each of the target markets differs substantially depending on the department.) is Nordstrom’s only junior’s department. or whether the products that Nordstrom offers are even of interest. targeting young women.21 options ranging from teenage apparel. which will be addressed later in the paper.

while still looking their age. trendy clothes every season to match what is popular. While some clothes within Point of View are casual. do not insure their products as well as Nordstrom’s does. Point of View still carries the classic suits and shirts that appeal to the more conservative thirty to fifty year old professional women. Those ‘other department stores’ however. Point of View has a target market of women in their twenties to early fifties. The word sportswear might evoke thoughts of soccer or football to some. middle to upper class woman. The last department is the Men’s Sportswear department. Lastly. which like Point of View. but are backed with the quality guarantee Nordstrom provides all of its products. which is the only type of clothing that B.22 department stores. but in this department sportswear are the clothes . The age is not clearly defined because more specifically. It allows young women to look professional. targets men in their twenties to early fifties. This helps to capture the twenty-something market that is usually skipped over in other department stores. The one major difference between the selection in Point of View. Most of the selection within Point of View however. they still uphold a classy and refined look suitable for a ‘dress down’ day at the office. which is why the target market is the middle and upper class. Most people of a lower class cannot afford to buy new. the reason for the target of the middle and upper class is because fashion trends do not usually last for more than a season. Point of View has a target market of the working professional woman. is professional attire for the working. nor is the quality of product comparable either. The clothes are priced comparable to other highend department stores. and other high-end department stores. is that Point of View tries to offer a selection of business wear for the younger working woman that has a trendier edge. While carrying this younger professional attire. offers.P.

golf.23 worn by the middle to upper class while they sail. or simply lounge around at their beach house. but once again the clothes are backed by the Nordstrom guarantee of quality. the consumer is looking for clothes that portray a specific image of their choosing. the consumer is looking for a quality product that will suit their clothing needs. The prices within the men’s sportswear department are comparable to other high-end department stores. in all departments. The target market is middle to upper class within this department because of the intended uses of the clothes that are sold. leisure activities that the middle and lower class might not be able to afford. This casual wear consists of clothes that portray an image of success and prosperity without a suit and tie. but this can be attributed to men’s desire for consistency and ease when shopping. no matter what their clothing needs. First. This department is intended for the professional male. throughout all of the clothes offered at Nordstrom each consumer is expecting the Nordstrom. The size of the men’s sportswear department is small in relation to some of the women’s departments. Second. Marketing Mix . guarantee of quality that ensures the consumers happiness with the product . such as an established professional or a young trendsetter. Lastly. Many of the clothes are intended for sailing and golf. While each of the departments have a target market that separates itself from the rest of the store.no matter the circumstances. who in his daily life must dress in professional attire and would like that to translate into his causal wear as well. it can be seen that within all of the heterogeneous factors there are three homogeneous factors that can be found.

the product has been worn. Each transaction within Nordstrom comes with an implied warranty of the goods purchased by the consumer. These products are enhanced by a multitude of factors including their warranty. and promotion inside and outside of the store. Product The products that are offered within a single Nordstrom store compliment each other very well. and their objectives and roles are clearly specified through different offerings and outlets. return policy. price. and the internal workings of any Nordstrom. all in one trip. When the employee was unsure of what procedure to follow since Nordstrom did not sell tires. the consumer is more than welcome to return the product back to the store for a full refund or exchange – no questions asked. even after the tags are removed. 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. This return policy is exemplified through the mythical story that circulates throughout Nordstrom stores and their competitor’s outlets. These four aspects embody the marketing mix. These include the use of product. Women are able to complete an outfit from Point of View by getting the perfect pair of shoes from the Women’s Shoes department. accessorize the outfit in fine jewelry. accessorizes and handbags. customer service. place.24 Nordstrom seeks to achieve the retention of the previously stated target markets through the use of coordinated marketing activities. The . If the consumer is unhappy with the product at anytime. and can shop her favorite makeup line in the makeup department. or the receipt has been lost. the employee contacted the store manager. On one shopping trip a family is able to buy clothes and accessories for everyone.

employees within the lingerie department must attend class and earn the right to do bra fittings. The altered clothes are usually available within a week’s time. Unlike other popular lingerie stores. Nordstrom wants to carry quality items that consumers will love. and if the consumers decide they do not. Also. This allows Nordstrom to have an absent return policy to ensure that a return is bound by no limits. they are able to return them at anytime. In the shoe department. This ensures each consumer an accurate fitting. and a consumer is never expected to clean out their dressing room when they are finished. Along with such a liberal return policy. if a pair of leather shoes is too tight on a consumer’s foot. when trying on clothes there is no limit to how many pieces of clothing a consumer is allowed to take in. in the lingerie department.25 manager told the employee to take back the tires and offer a full refund of the standard price for snow tires to the woman. they are dedicated to customer service and their guarantee of quality. a consumer’s satisfaction is not bound by any measures on behalf of Nordstrom. a person from the alteration department will come to your fitting room and measure your clothes according to your needs. Nordstrom offers a range of other amenities for consumers to enjoy and enhance the value of the product to the customer. with anything that you purchase from Nordstrom you can have it altered for free. By knowing that every purchase is basically guaranteed for life. the Nordstrom employee will stretch the shoes out at no cost. Also. women can receive a free and accurate bra fitting. So while it is obvious that Nordstrom might not appreciate consumers returning goods from other stores. customer satisfaction within a Nordstrom cannot be better guaranteed in any other way. Aside from offering their products for free. For instance. Upon trying the clothes on. Any purchase that is made can also be .

While specific instances might dictate manager involvement. We have great confidence in your ability to achieve them. benefit information and information about the specific Nordstrom store the new employee will be working. employees are granted the right to . there are also internal functions within Nordstrom that ensure that customer service is ideal in any situation. Set both your personal and professional goals high.26 complimentary gift wrapped. Quality customer service is Nordstrom’s main competitive advantage against its competitors. employee expectations. or division general manager any question at any time”. Please feel free to ask your department manager. Nordstrom’s idea is to put the employees in control of every situation so that the consumer feels a sense of security at all times within the store. Along with these externally obvious factors of product value to the consumer. enhancing the value of the product for the consumer. Nordstrom has focused itself since 1901 on the basis that superior customer service is the first and foremost important aspect of the company. There will be no additional rules. Nordstrom Rules: Rule #1: Use your good judgment in all situations. While these factors may seem miniscule. So while the consumer might only be in and out for a white t-shirt. When hired at Nordstrom. they know that if needed all of these amenities are available for their use. store manager. it does help consumers reduce shopping time and have a more enjoyable shopping experience. the new employee is greeted with an employee folder that includes a welcome packet. rewards. While other companies have a chain of command when dealing with customer service issues. Our number one goal is to provide outstanding customer service. On the very front of each folder is a 5x7 card that states: “We're glad to have you with our Company. Nordstrom is void of any such rules.

Façonnable is a men’s clothing line developed by Nordstrom for the more upscale shopper to accommodate their business and leisure clothing needs. one free-standing shoe store and two clearance stores. Nordstrom’s popularity is based on the west-coast. Washington. Even if consumers do live some distance away from the faculties. Through out the hiring process Nordstrom ensures that customer service is always handled in a way that upholds their reputation. Place/Distribution The next factor of the marketing mix is to coordinate the marketing activities for the retention of the target markets through place and distribution. 50 Nordstrom Rack stores. primarily because of its headquarters and flagship store in Seattle. Nordstrom also operates 35 international Façonnable boutiques in Europe. coming to the mall is more acceptable because they will not only have the option to visit Nordstrom. Since Nordstrom is located within a mall. but will have the ability to shop at other stores as well. Mainly. while also providing a trusted and quality environment by empowering the judgment of the employees. These words ring loud within any Nordstrom store because they are printed in the employee entrance and in the backrooms of most departments. This justifies their traveling time. Nordstrom is able to supply a quality product based on the judgment of the consumer. the Nordstrom stores are located in shopping malls which usually provide a heavily populated central area which contains a portion of their target market. access is relatively easy for consumers. These include 99 full-line stores. five Façonnable boutiques.27 deal with consumer situations based on their judgment. . which would not happen if Nordstrom had only free-standing stores. Nordstrom currently has 157 stores located in twenty seven states.

front window displays are changed bi-weekly. Along in place and distribution is not just the physical outlet that Nordstrom has. and Rhode Island. This is compared to the thirty two California stores. There are two stores in North Carolina and New York. Nordstrom plans to open twenty five new stores in the next five years. In New Hampshire. Since we are at the peak of the holiday season. it is a good time to look at the atmosphere within a Nordstrom store. there is room for major improvement by Nordstrom on the east coast. When it is not a holiday season. Garland and decorative curtains decorate each entrance into the store. Each department has holiday specials. A giving tree accompanies the bottom side of each escalator. Missouri. and in store decorations and manikins are changed multiple times . West Virginia and Massachusetts. this lack of access to facilities by consumers on the east coast will soon be partially remedied. Out of these twenty five stores. and also provides them with a place to shop that is enjoyable during the busy holiday time. South Carolina. Michigan. I believe they will gain an even better reputation and have the ability to fine tune their marketing and customer service strategies. and on weekends the tops of the escalators have live carolers.28 While access to Nordstrom facilities is relatively easy on the west coast. This atmosphere helps to evoke the holiday spirit within the consumers. five Oregon stores and two Hawaii stores. However. it plans on opening four in Massachusetts. Once Nordstrom has established a stronger base on the east coast. nine Washington stores. and one store in Pennsylvania. and pictures with Santa are held every year. Maine. two in Michigan and one in Missouri. Holiday music played live in each store on the well known Nordstrom piano echoes through the departments on speakers. but also the atmosphere in each of the outlets. Vermont. there is not a single Nordstrom store to date. Connecticut.

. personal selling. or stained carpets. They also feature gift ideas during the holidays. Nordstrom puts out two catalogues per month that premiere a few new items within each department. and sales promotion. Most of these have been directly related to online advertising. During the holidays. a night cleaning crew makes sure that all the carpets. Anyone that has a Nordstrom account will receive this catalogue. along with anyone that registers online Advertising: Nordstrom has also engaged in some other intense advertising campaigns in the past few years.29 each week. Local newspapers usually contain a full page spread during Nordstrom’s half yearly and anniversary sales. Nordstrom started to campaign heavily to gain consumer awareness of their new website. Also. they can go to a place where the only thing they notice is the clothes and the quality of the presentation. Also. mirrors and dressing rooms are kept in pristine condition. Instead. Nordstrom also has featured spreads as well. if they come in and refer specifically to that advertisement. In 1999. Instead. and include an easy way to order straight from the catalogue. and only usually take place on major televised events. Nordstrom does not engage in heavy advertising. These spreads are hung in the employee entrance area so that employees are aware of what consumers are looking for. This type of atmosphere allows the consumer to shop at ease without heaps of clothes in a mess. Nordstrom does most of its advertising through print. public relations. Promotion The next factor of the marketing mix is to coordinate the marketing activities for the retention of the target markets through promotion tactics including advertising. TV commercial spots are few and far between.

The visitors mixed the song.com.com is still a large. Aside from these new websites.com. and special discounts. Along side every choice that the visitor views. is a selection of other clothes that are closely related to the current viewing. . but also to educate users on the broad selection of shoes that Nordstrom offers. It is titled ‘Make Room for Shoes’. Nordstrom sends out weekly e-mails that highlight new items. In 2005. Nordstromsilverscreen. The name was selected to entice users not only to their main website which was linked on the new shoes site.com was one of the first attempts by a retailer to mix shopping and interactive media making Nordstrom an innovator in this new market. comprehensive site that allows visitors to see everything that Nordstrom has to offer. by mixing up clothes on a corresponding manikin.com. Visitors are able to search by brand. Nordstrom claims the site is the world’s biggest shoe store. While Nordstromscilverscreen. Nordstrom.30 Nordstromshoes. This allowed visitors to see new fashion trends and learn how to mix and match clothes to find their very own style. Anything that the artist was wearing in the video was available for sale at Nordstom. The website combined music and pop culture with shopping. Nordstrom debuted NordstromSilverscreen. the launch of this new and innovative platform says a lot of Nordstrom. and to evolve and be ahead of other department stores in the advertising industry. if a consumer has provided Nordstrom with their e-mail address. This company is willing to take risks to advertise and capture a new and different consumer. by clicking on any the clothes worn in the video made exclusively for Nordstrom. Visitors of the site could also ‘shop’ the site. or by age and gender. in-store department. Visitors of the site were able to be a DJ and mix up songs recorded by artists specifically for the site. Also.com is no longer available to visit.

the newest advertising campaign that Nordstrom embarked on was for the Nordstrom MOD card. On the Nordstrom website consumers are able to find out about new store openings. The MOD card is a debit card that is set up through a consumer’s personal bank and checking account. Nordstrom also relies on customer word of mouth. and declining sales. and during promotional events. and press releases. This way. While other competitor department stores deal with union battles. This way. the consumer earns a point. For every dollar that is spent. Nordstrom realized that not everyone wants to hold a credit card at Nordstrom. which led them to the idea of the MOD card. The MOD card is specific to Nordstrom. Nordstrom has heavily advertised the MOD card and the rewards that a customer gains from having a Nordstrom account. Consumers are able to find out about public relation activities on their website under investor relations. who is located at Nordstrom’s headquarters in downtown Seattle. and allows Nordstrom to track what is bought and how much consumers spend. and still receive the points they deserve. they can earn twice the points for every dollar spent. news. Washington. they get a gift certificate in the mail redeemable at any Nordstrom. Nordstrom is equipped with a public relations representative. the quality and outstanding . Once the consumer reaches a certain level of points. stock information. or in their annual report. Public Relations: The next segment of promotion is public relations. upcoming events. consumers can buy from Nordstrom using cash. consumers can gain points like what is offered with the traditional Nordstrom’s credit card.31 Lastly. Nordstrom is better able to promote their stores in a positive and controlled manner. Through these advertising activities.

Nordstrom has taken an active role in the “ONE” campaign and formed a partnership with the company Edun. Most recently. Personal selling is defined as a purchase situation in which two people communicate in an attempt to influence each other (Lamb. Nordstrom exclusively hosts the Beat the Bridge to Beat Diabetes marathon in Seattle.000 to ALAFA. Consumers know by personal experience and word of mouth that Nordstrom is dedicated to its customers. Washington. The ONE shirts are made in Lesotho. the Beat the Bridge marathon donations have raised $855. Nordstrom is also a yearly sponsor in the Race for the Cure. 2006). For every shirt sold Edun contributes ten dollars to the Apparel Lesotho Alliance to Fight Aids (ALAFA). Edun is selling a t-shirt with the word ‘ONE’ across the front. Komen Breast Cancer Foundation to raise money for breast cancer research and awareness. and medication for underprivileged countries. This promotes the idea that if the United States government allocated just one percent of its budget to health. Through not only their exceptional reputation.078. the United States could save millions of lives. So far in 2006. The proceeds benefit the Juvenile Diabetes Research Foundation. et al. education. Nordstrom also engages in public relations activities through the promotion of some of their clothes. Africa. Personal Selling: The next section of promotion is personal selling. Upon selling the ONE shirt within their stores. hosted by the Susan G. These positive public relation activities in turn influence consumer perception and decision making. but also through involvement in philanthropic activities Nordstrom is able to enhance their public relations. Personal selling is the basis of Nordstrom’s philosophy and .32 customer service is rarely questioned by consumers. Nordstrom donated $100.57.

salespeople are asked to call at least fifty people from their personal book to the consumer know that they are excited to see them at the sale. they will be more likely to ask more questions and try on more things. a consumer will be able to find numerous employees who are knowledgeable about the products they offer. and add . and can hold clothes for the consumer. a single salesperson will usually help them through the entire purchasing process. Personal selling emphasizes the relationship that is developed between a salesperson and a consumer. The thank you cards are mailed out to the consumer.33 mission statement. During sale times. If the consumer knows that when they go to Nordstrom they can count on someone being there that they know and trust. basically all of their needs can be taken care of through that salesperson. Within any department at a Nordstrom store. that same salesperson will go to that other department and get whatever it is. phone number. so if one consumer feels comfortable with a specific salesperson. and who are also eager to help them find whatever it is they are looking for. Nordstrom has made personal selling even easier through their new system of Personal Book. If what the consumer is looking for happens to be in a different department. Having this information also enables the salespeople to send out thank you cards which are supposed to be done a daily basis by a salesperson. colors. and styles from other stores if what the consumer is looking for is not available at that specific store. Salespeople also can take payment on Nordstrom credit cards at their payment station. Salespeople are endowed with the ability to manage customer service situations. This created a very strong relationship between the salesperson and the consumer. The salesperson will find sizes. birthday and recent purchases. When a consumer is shopping within a department. Personal Book allows a salesperson to enter in consumer information such as their address.

A kick-rally prior to the doors opening helps to hype up the employees for the coming busy weeks. Personal Book also can keep track of what a consumer has bought. They enter a newly decorated store from the previous day. with new displays. which also enhances the bond between the consumer and the salesperson. All of these benefits from Personal Book enhance the personal selling aspect of promotion. but are rather seen as individuals with specific needs and wants that are catered to be the Nordstrom employees. These include the half yearly sales. Consumers line up outside of Nordstrom’s doors hours prior to opening. Usually sales promotions are a quick tool that immediately increases consumer demand of a product. or door buster sales that other department stores offer. Nordstrom focuses on these events for the purpose of showing the consumer that they do not just want to push . merchandise and prices. and their Anniversary sale in August. rewards and deals are offered. some of the consumers who have purchased the most throughout the year are invited to shop the sale prior to anyone else. Nordstrom focuses all of their attention on their three major sales per year. Nordstrom does not offer a lot of the one day sales. so when Nordstrom has a big sale. These attractions are not just a sale. and to preview what is going to be offered. Instead. and public relations. Sales Promotion: The last component of promotion is sales promotion.34 a personal finishing touch to the purchase. Consumers are not seen as a target market within the store. Special promotions. advertising. in June and November. 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. they are an event. Sales promotion is everything else that is not covered by personal selling.

35 inventory in and out of the store. In Point of View. This is important for Nordstrom because their limited numbers of sales are not only seen as a time to get a good deal. A sale is not just a sale. Consumers and salespersons are able to establish a relationship which enhances the consumers purchase experience. school shopping personal shopping. Lastly. Through this. targeted toward the more middle class women who want to look professional without spending as much. a suit jacket is available for seventy dollars. as proven earlier in the personal selling section. a consumer can buy a suit jacket for $2. John department catered to upper class wealthy women. and reward consumers for their purchases through major discounts at these sales. Nordstrom strives to provide the most quality product for the cheapest price allowable. another important factor of these sales is that they have created a tradition. Nordstrom does cater to an upper and middle class target market which does raise their prices from other lower department stores. but they have penetrated the culture and created more than just a sale.000. 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. Each department within Nordstrom. In the St. . Nordstrom tries to justify that price through their personal selling efforts and their product guarantee. has a different target market which does vary the range pf prices immensely within one store. At the sale they go Christmas shopping. as stated earlier. However. They want to offer quality products that consumers enjoy. Price: The last factor of the marketing mix is to coordinate the marketing activities for the retention of the target markets through price. Women and their daughters take time off school and work to attend the first day of the sale.

Nordstrom Employee Benefits Balance 1. 6. Basic Long Term Disability 6. Group Home/Auto Insurance 10. Customer Spending Account 7. 4. Paid Time off Resource and Referral Services Employee Assistance Program Observed Holidays Leave of Absence Program Paid Bereavement Leave Adoption Financial Assistance Protection 1. 3. Basic Life Insurance 9. 5. Accidental Death & Dismemberment 8. Long Term Care Save 1. Dental Coverage 3.S. 2. 7. U. Nordstrom Bank 9. the quality of that purchase is indefinitely guaranteed by Nordstrom. Basic Short Term Disability 4.36 Because the consumer knows that no matter what they buy. Merchandise Discount 401(k) Plan & Profit Sharing Employee Stock Purchase Plan Health Care Spending Account Dependent Care Spending Account 6. All of these factors help justify the price of the products Nordstrom offers to the consumer. 2. Group Legal Services 11. Medical/Vision Coverage 2. Supplemental Short Term Disability 5. whether it is a pair of socks. By Nordstrom’s deep success it does seem to be working. 4. Employee Discounts and Services (Workstream Rewards) 8. Nordstrom Federal Credit Union 10. 5. Optional Long Term Disability 7. Savings Bonds . 3. or a mink coat.

nordstrom. Nordstrom Way is legendary in shopping. A season on the brink. from phx. 2006. from about.asp Mulady. H. from www. 06. Nordstrom.about. Jacci.org Web site: http://www.org/hrmagazine/articles/1106/1106ceoex.corporate-ir. 2006. from seattlepi.zhtml?c=93295&p=irol-govConduct .htm Fasiq. 2006.com Web site: http://seattlepi.nordstrom. from cincinnati.shtml Nordstrom Employee. 21).com/business/28924_nord_way26.104/search? q=cache:ef4nZ0EG_DcJ:www. Nordstrom gives Cincinnati second chance. 2006. 2006.html? page=1 Magazine.bizjournals.com/biz/Bfgh0ow0q-S24aEcsVP6xQ+Nordstrom %2Bpiano%2Batmosphere&hl=en&gl=us&ct=clnk&cd=7 Levinson.com/cincinnati/stories/2006/11/20/daily13.com Web site: http://www. 10). Meridith (2005.253.net Web site: http://phx. from desktoppub.asp Nordstrom Management.nwsource. from http://www. HR (2006. Retrieved November 21.com Web site: http://cincinnati. Retrieved November 21.com/cs/color/a/symbolism. Retrieved December 5. (2006. 1). References Bear. Lisa. Retrieved November 1.shrm. Color meanings.shrm. 2006.com Web site: http://desktoppub.com/aboutus/companyhist/companyhist. 2006. 2006.cio. Bee (2006.nwsource. 10.html H. (2006).cio.yelp. Retrieved November 19.com Web site: http://72.14. Retrieved November 21. from www.corporateir.net/phoenix. Company history. (2006. 12. 12.yelp.com Web site: http://about. Views from the Top. 02).code of conduct.37 *This list of benefits is taken from the employee benefit handbook given to all Nordstrom employees. Retrieved November 21. 03).com/archive/120105/retail. 26). Corporate governance . B.bizjournals.about. (2006). Retrieved November 1. Kathy (2001.

06.bizjournals. from phx. 20). How to build customer relationships.com Web site: http://www.com/portland/stories/2006/11/20/daily12. signs new store deal. from www.corporateir. Nordstrom. Retrieved November 1.corporate-ir.net/phoenix. 2006. (2002. 2006. Nordstrom reports improved Q3 earnings. Maria (2006. Retrieved December 1.html? surround=lfn .com Web site: http://portland. 10.bizjournals.zhtml?c=93295&p=irol-newsArticle&t=Regular&id=304515& Palma. 02.38 Nordstrom Staff.com CEO and president resign.html Portland Business Journal .com/2006/02/how_to_build_customer_relation. 15). Retrieved November 21. from portland.net Web site: http://phx. 2006. 10).customersarealways.customerarealways. (2006.

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