...Nordstrom: How to Succeed by Selling Just One Shoe Upscale retailer Nordstrom has been famous for superior customer service for over 100 years. Robert Spector, coauthor of The Nordstrom Way, says his favorite story is of a woman with one leg who jokingly bet a Nordstrom salesperson that he wouldn’t sell her just one shoe. He was more than happy to split up the pair, though, to her surprise, and Nordstrom gained a life-long customer in the process. “Who knows how many times she’s told that story?” Spector asks. “Do you think that that’s worth the price of a shoe? I do.” This kind of word-of-mouth publicity means that Nordstrom spends much less on traditional advertising than its competitors do. And the stories told by satisfied customers are much more persuasive than an ad in the Sunday paper. Patrick McCarthy, who was the first salesperson to generate $1 million, cites an example of a customer who was traveling and accidentally left his plane tickets in the store. An employee who found them paid for a cab to the airport with her own money so that the customer wouldn’t miss his plane. This, McCarthy says, is an example of “heroic service,” and at Nordstrom they expect nothing less. Industry observer Lior Arussy calls Nordstrom’s business strategy “greed through love.” They have perfected the art of focusing on the right customers and giving them undivided attention. A salesperson will often continue the relationship with a customer for years. They may exchange business cards...
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...“Nordstrom: How to Succeed by Selling Just One Shoe” Principles of Marketing May 2011 1. Identify the type of retailer that Nordstrom’s is classified as. Describe the characteristics it shares with other retailers of this type. Nordstrom is classified as a department store. It sells a variety of products including clothing, jewelry, handbags, cosmetics, and home furnishing. Nordstrom started as a shoe store as time passed they diversify their product, and they opened more stores in different locations. They sell products identical to the department stores. Nordstrom like department stores have a series of permanent products such as cosmetics, hardware, jewelry, sporting goods, among others. Another likeness to the other department stores is that they have many stores in different locations of the US. Nordstrom competes with other national, regional, and local retail and departments stores. Nordstrom’s top competition comes from retail stores that sell similar lines of apparel such as Neiman Marcus, Saks Fifth Avenue, Dillard’s, and other high-end fashion retailers. Nordstrom shares many characteristic with other retailers such as their generous exchange policy, superior customer service, the product quality. 2. Describe Nordstrom's level of service on the continuum from full service to self-service. Give an example of a store that would be on the opposite end of the continuum and explain their differences. Moving from full service to self-service paid...
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...Nordstrom: How to Succeed By Selling Just One Shoe Ellen Korchnak Marketing 100 November 26, 2011 Professor Roy Mesich Abstract Nordstrom’s is an upscale retailer famous for its customer service; they go far beyond other retailers. Nordstrom’s has come a long way since its humble beginning as a shoe retailer in the early part of the 20th century, now with the 4th generation at the helm, it has positioned itself for the future with its customer-centric focus and rich history of entrepreneurial spirit. This report will focus on their marketing mix, level of service and challenges they face in the current retail climate. Nordstrom: How to Succeed By Selling Just One Shoe Nordstrom’s where they fit in the retailing mix Nordstrom’s is an upscale retailer following in the same category as Dillard’s and Macy’s a specialty store. Specialty stores carry a deeper but narrower assortment of specialty merchandise compared to a department store. They have more knowledgeable sales clerks and offer more attentive customer service. These retailers share a passion for outstanding customer service, upscale merchandise and outstanding store image. They all maintain a competitive pricing structure to stay competitive in this category. I think the upscale merchandise and outstanding customer service determine its profitability. Nordstrom’s level of service on the continuum Nordstrom’s level of service can be regarded as high full service off the scale of the continuum for...
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...“Nordstrom: How to Succeed by Selling Just One Shoe” Hassan Suluki Strayer University MKT 100 02/24/2011 “Nordstrom: How to Succeed by Selling Just One Shoe” Identify the type of retailer that Nordstrom’s is classified as and describe the characteristics it shares with other retailers of this type. A store like Nordstrom has built a successful model on availability of knowledgeable salespeople, and other luxury or near-luxury retailers would be advised to pay attention. But a mass retailer like Target is not dependent on “high touch” customer service; rather, the most important things it can do to satisfy its shoppers are to ensure that goods are on the shelf and the checkout process is efficient. As more consumers migrate to “mission shopping” (walking into a store looking for a specific item), the self-service model becomes more important. Consumers are also becoming accustomed to more control through online and mobile shopping. But there is still a place for good CRM, even in the most hands-off models of “customer service.” Nordstrom is classified as an Upscale Department Store Chain. Today, Nordstrom is one of the nation's leading fashion retailers, offering a wide variety of fine quality apparel, shoes and accessories for men, women and children at stores across the country. Nordstrom shares the same characteristics as Macy’s, JC Penny's and Dillard's who also sells clothing, accessories, handbags, jewelry, cosmetics, fragrances, and in some locations, home furnishings...
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...“Nordstrom: How to Succeed by Selling Just One Shoe” Identify the type of retailer that Nordstrom’s is classified as and describe the characteristics it shares with other retailers of this type. A store like Nordstrom has built a successful model on availability of knowledgeable salespeople, and other luxury or near-luxury retailers would be advised to pay attention. But a mass retailer like Target is not dependent on “high touch” customer service; rather, the most important things it can do to satisfy its shoppers are to ensure that goods are on the shelf and the checkout process is efficient. As more consumers migrate to “mission shopping” (walking into a store looking for a specific item), the self-service model becomes more important. Consumers are also becoming accustomed to more control through online and mobile shopping. But there is still a place for good CRM, even in the most hands-off models of “customer service.” Nordstrom is classified as an Upscale Department Store Chain. Today, Nordstrom is one of the nation's leading fashion retailers, offering a wide variety of fine quality apparel, shoes and accessories for men, women and children at stores across the country. Nordstrom shares the same characteristics as Macy’s, JC Penny's and Dillard's who also sells clothing, accessories, handbags, jewelry, cosmetics, fragrances, and in some locations, home furnishings. They all have built their thriving business on the principles of quality, value, selection and service...
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...in some form, whether it is purchasing good and services or selling goods and services. Retailing is activities related to the sale of goods and services to people of the world. The retailing industry is one of the largest employers in the United States and the economy depends on it heavily for economic growth. Identify the type of retailer that Nordstrom's is classified as and describe the characteristics it shares with other retailers of this type. There are a few type of retailers that we recognize or classify such as Independent retailers, which are retailers owned by a person or partnership and this type of retailer are not operated as part of a larger retail institution. Another type of retailer is franchises and they are owned and operated by individuals but they are licensed by supporting organizations two examples are Apple Bee’s or Beef ‘O Brady’s. The third types of retailers are chain stores, and they are owned and operated as a group by a single organization. Nordstrom is known to be an upscale retailer that has been famous for superior customer service for over 100 years. Nordstrom has 157 stores in 27 states and their plan was to open 19 more by 2010, and expanding into Boston, Ohio, and other untapped U.S. markets. They strive to make every customer’s experience enjoyable and upscale, so that the customer feels as if they are treating themselves upon every visit to the store. Eric Nordstrom, the company's president, visits each potential location himself...
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...Described with less than 60% accuracy and thoroughness. Described partially Nordstrom's level of service on the continuum from full service to self-service; gave a relevant example of a store that would be on the opposite end of the continuum and partially explained their differences; omitted key information. Described with 60 – 79% accuracy and thoroughness. Described sufficiently Nordstrom's level of service on the continuum from full service to self-service; gave a relevant example of a store that would be on the opposite end of the continuum and sufficiently explained their differences. Described with 80 – 89% accuracy and thoroughness. Described fully Nordstrom's level of service on the continuum from full service to self-service; gave a relevant example of a store that would be on the opposite end of the continuum and fully explained their differences. Described with 90 – 100% accuracy and thoroughness. 3. Analyze the six components of Nordstrom's retailing mix to determine which have been the most important to the company's success. Provide a detailed rationale. Did not complete the assignment or did not analyze the six components of Nordstrom's retailing mix to determine which have been the most important to the company's success; did not or did not sufficiently provide a detailed rationale; omitted key information and/or irrelevant information. Analyzed with less than 60% accuracy and thoroughness. Analyzed partially the six components of Nordstrom's retailing mix to...
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...rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2009, Ivey Management Services Version: (A) 2009-07-21 With the sun setting over the Rift Valley in Kenya, Sebastian Herrmann walked back to his tent with a head full of questions. He was at a loss as he wondered what kind of marketing campaign would ensure that every family that should use a WaterHarvester received one. If he could answer this question, he could see the potential to significantly improve the living conditions for many of the amazing people he had met over the last couple of weeks during his April 2007 visit. Just yesterday, the first prototype of the WaterHarvester had been installed and worked far better than he and his fellow students could have hoped for. It had been thrilling to see that the prototype had collected enough water with last night’s short rainfall to give a cup of clean water to each of the family’s children, cook a small meal, and still have some water left for the rest of the day! As Hermann thought about the possibilities he became...
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...Chapter 1 Case Study: Harmonix Embrace Your Inner Rock Star Little more than three years ago, you had probably never heard of Harmonix. In 2005, the video game design studio released Guitar Hero, which subsequently became the fastest video game in history to top $1 billion in North American sales. The game concept focuses around a plastic guitar-shaped controller. Players press colored buttons along the guitar neck to match a series of dots that scroll down the TV in time with music from a famous rock tune, such as the Ramones’ “I Wanna Be Sedated” and Deep Purple’s “Smoke on the Water.” Players score points based on their accuracy. In November 2007, Harmonix released Rock Band, adding drums, vocals, and bass guitar options to the game. Rock Band has sold over 3.5 million units with a $169 price tag (most video games retail at $50 to $60). In 2006, Harmonix’s founders sold the company to Viacom for $175 million, maintaining their operational autonomy while providing them greater budgets for product development and licensing music for their games. Harmonix’s success, however, did not come overnight. The company was originally founded by Alex Rigopulos and Eran Egozy in 1995, focused around some demo software they had created in grad school and a company vision of providing a way for people without much musical training or talent to experience the joy of playing and creating music. The founders believed that if people had the opportunity to create their own music, they would jump...
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...Chapter 1 Case Study: Harmonix Embrace Your Inner Rock Star Little more than three years ago, you had probably never heard of Harmonix. In 2005, the video game design studio released Guitar Hero, which subsequently became the fastest video game in history to top $1 billion in North American sales. The game concept focuses around a plastic guitar-shaped controller. Players press colored buttons along the guitar neck to match a series of dots that scroll down the TV in time with music from a famous rock tune, such as the Ramones’ “I Wanna Be Sedated” and Deep Purple’s “Smoke on the Water.” Players score points based on their accuracy. In November 2007, Harmonix released Rock Band, adding drums, vocals, and bass guitar options to the game. Rock Band has sold over 3.5 million units with a $169 price tag (most video games retail at $50 to $60). In 2006, Harmonix’s founders sold the company to Viacom for $175 million, maintaining their operational autonomy while providing them greater budgets for product development and licensing music for their games. Harmonix’s success, however, did not come overnight. The company was originally founded by Alex Rigopulos and Eran Egozy in 1995, focused around some demo software they had created in grad school and a company vision of providing a way for people without much musical training or talent to experience the joy of playing and creating music. The founders believed that if people had the opportunity to create their own music, they would jump...
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...Merchandise Stores Equity Analyst JUNE 2013 Current Environment ............................................................................................ 1 Industry Profile .................................................................................................... 12 Industry Trends ................................................................................................... 13 How the Industry Operates ............................................................................... 23 Key Industry Ratios and Statistics ................................................................... 29 How to Analyze a Retail Company ................................................................... 31 Glossary ................................................................................................................ 36 Industry References ........................................................................................... 37 Comparative Company Analysis ...................................................................... 38 This issue updates the one dated November 2012. The next update of this Survey is scheduled for December 2013. CONTACTS: INQUIRIES & CLIENT RELATIONS 800.852.1641 clientrelations@ standardandpoors.com SALES 877.219.1247 wealth@spcapitaliq.com MEDIA Marc Eiger 212.438.1280 marc.eiger@spcapitaliq.com S&P CAPITAL IQ 55 Water Street New York, NY 10041 Topics Covered by Industry Surveys Aerospace & Defense Airlines Alcoholic...
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.................................................................... 7 Organization Culture and core values...........................................................7 The Leadership....………………………………….………………………9 HR Requirements and Team……..…………….………………………… 11 Possible challenges. …………………………………………………..… 13 Marketing Mix…………………………………………………………….17 SWOT Analysis..………………………………………………….…….. 20 PEST Analysis…………………………………………………………... 21 Product Analysis and Function………………………………………….. 23 Financial Planning……………………………………………………….. 28 Business Model …………………………………………………………… 41 Conclusion………………………………………………………………….42 Reference ………………………………………………………………….43 Executive Summary Global Fashion & Designer Shoes (GFDS) is a shoe company that is originated and located in the United States. It is a newly formed footwear and apparel company that is designed to take the footwear industry to a whole new level. The target market for the company is men, women and young people. Some of brand name products include men’s dress shoes, women’s dress shoes, Sports and casual shoes such as Nike, Adidas, New Balance, Reebok, Sketchers, US Polo, Jordan, Pumas, Kenneth Cole, and Steve Martins, etc. The company also deals in clothing line for men, women and young people and brand ranging from Calvin Klein to true religion, etc. GFDS is working to become the world’s leading business in providing superior quality designer shoes and apparel at affordable prices and the company would...
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...online poll to see how their answers compare with other students taking a consumer behavior course across the country. Then turn to the last page of the chapter to find the What Others Have Thought box feature. This graph is a snapshot of how other consumer behavior students have answered this polling question thus far. Learning Outcomes After studying this chapter, the student should be able to: L01 Gain an appreciation of the link from consumption to value to satisfaction. L02 Discuss the relative importance of satisfaction and value in consumer behavior. L03 Know that emotions other than satisfaction can affect postconsumption behavior. L04 Use expectancy disconfirmation, equity, and attribution theory approaches to explain consumers’ postconsumption reactions. L04 Understand problems with commonly applied satisfaction measures. L06 Describe some ways that consumers dispose of products. Suggested Lecture Opener When we think about consumer satisfaction and the consumption process, the link seems clear. Businesses with high levels of consumer satisfaction succeed, and those with low levels fail. However, this isn’t always the case. According to a major recent survey, the social networking website Facebook ranks in the bottom five percent of consumer satisfaction with privately held companies in the U.S. Respondents had no shortage of complaints about the site’s performance and user-friendliness. Yet, Facebook continues to grow at an explosive rate. How is this? Consumers...
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...(Chapters 1–2) Part 2: Understanding the Marketplace and Consumers (Chapters 3–6) Part 3: Designing a Customer-Driven Strategy and Mix (Chapters 7–17) Part 4: Extending Marketing (Chapters 18–20) After examining customerdriven marketing strategy, we now take a deeper look at the marketing mix: the tactical tools that marketers use to implement their strategies and deliver superior customer value. In this and the next chapter, we’ll study how companies develop and manage products and brands. Then, in the chapters that follow, we’ll look at pricing, distribution, and marketing communication tools. The product is usually the first and most basic marketing consideration. We start with a seemingly simple question: What is a product? As it turns out, the answer is not so simple. Chapter Preview 8 Products, Services, Building and Brands Customer Value Before starting into the chapter, let’s look at an interesting brand story. Marketing is all about building brands that connect deeply with customers. So, when you think about top brands, which ones pop up first? Perhaps traditional megabrands such as Coca-Cola, Nike, or McDonald’s come to mind. Or maybe a trendy tech brand such as Google or Facebook. But if we asked you to focus on sports entertainment, you’d probably name ESPN. When it comes to your life and sports, ESPN probably has it covered. W The ESPN Brand: Every Sport Possible—Now Television: From its original groundbreaking cable network— which now serves 98 million...
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...forever, even after he or she was dead and gone?' Having a great idea or being a charismatic visionary leader is "time telling"; building a company that can prosper far beyond the presence of any single leader and through multiple product life cycles is "clock building." The builders of visionary companies tend to be clock builders, not time tellers. They concentrate primarily on building an organization—building a ticking clock— From 6u/;t to Last by James C. Collins and Jerry I. Porras. Copyright © 1994 by James C. Collins and Jerry I. Porras. Reprinted with authority from HarperCollins Publishers. I 80 CALIFORNIA MANAGEMENT REVIEW VOL 37, NO. 2 WINTER 1995 Building a Visionary Company rather than on hitting a market just right with a visionary product idea and riding the growth curve of an attractive product life cycle. And instead of concentrating on acquiring the individual personality traits of...
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