How does nordstrom differentiate from other retailers

Branding Nordstrom

After reading the article “Conservative Nordstrom to sell trendy Topshop fashions,” respond to the following:

· How does this partnership fit into Nordstrom’s current brand management strategy? Will it appeal to its target markets? How will it allow Nordstrom to differentiate itself from the competition?

· Is this a risky move for Nordstrom considering the downward sales trends for Topshop in the UK?

Respond to at least 3 of your classmates.

Respond to Stacie Perez post

Nordstrom embarked on a strategy to expand its customer base by reaching out to Millennials in a big way. In addition to enhancing Nordstrom’s presence at Nordstrom.com, Nordstrom partnered with UK brand, Topshop.

The Topshop partnership fits into Nordstrom’s overall strategy of reaching Millennials. In addition to Topshop, Nordstrom has helped launch other brands that offer more exclusivity. For example, Something Navy was started as a blog in 2009 by Arielle Charnas. The blog has propelled Charnas into social media influencer stardom and even led to her own fashion line, Something Navy, which is exclusively offered at Nordstrom. Nordstrom has also launched other brands that are exclusively offered by Nordstrom. The front page of the websites features a section titled, “Nordstrom Made,” which leads to several brands that are not offered anywhere else. Halogen, Zella, Caslon and BP are just a few. The photography and styling of these brands are similar to Topshop, as well as other sections of the Nordstrom site. By offering brands that cannot be found elsewhere, Nordstrom has created a well-defined differentiator between their competitors.

Known for its unparalleled customer service, Nordstrom leadership appointed Ken Worzel as the chief digital officer in 2018 to assist in bringing the website experience to a new level (Grill-Goodman, 2018). The integration of Topshop into the Nordstrom shopping experience also aided in improving the speed of purchases (Clifford, 2012). Furthermore, new merchandise will be in stores on a weekly basis to help drive frequent and repeated traffic. Although Topshop has experienced a decline in sales at the UK based franchised locations, Nordstrom should not be concerned. The decrease in UK sales could be the result of poor customer service in franchised locations. The enhanced customer experience of Nordstrom coupled with the new target audience could be the best launch for a new launch. To date, these risks have paid off for Nordstrom in a big way. Nordstrom has seen success in online and in-store shopping (Pasquarelli, 2017).

Some of the words used to describe the categories of women’s clothing include “chic”, “flirty”, “fierce”, “bohemian”, and “tough”. The word choice is indicative of the overall goal of Nordstrom to appeal to Millennials, which extends well beyond the Topshop deal. The great divide between Nordstrom’s conservative past and the new Millennial growth appears to be closing.

Clifford, Stephanie. "Conservative Nordstrom to sell trendy Topshop fashions; British chain to introduce its clothing at 14 stores in U.S. in September." International Herald Tribune 13 July 2012. Business Insights: Global. Web. 10 Apr. 2019.

Grill-Goodman, Jamie. (2018, May 30). Nordstrom Invests in Digital Strategy. RIS News. Retrieved from https://risnews.com/nordstrom-invests-digital-strategy

Pasquarelli, Adrianne. (2017, January 1). How a Millennial Mindset is Helping This 116 Year Old Retailer. Ad Age. Retrieved from https://adage.com/article/cmo-strategy/a-millennial-mindset-helping-116-year-retailer/307734

Respond to Latia Truesdale post

Topshop is a clothing store that carries clothing seen on the run way and street fashion. Their line of clothing is catered to young people. Topshop is completely opposite of Nordstrom because Nordstrom carries conservative clothing (Clifford, 2012). Therefore, I think that the partnership between these two clothing lines definitely fit into Nordstrom’s current brand management strategy. The partnership between these two brands is completely focused on pleasing their customers. Topshop and Nordstrom hope to get new customers out of this partnership (Clifford, 2012). This means that they want to attract more young customers into the Nordstrom department store. I think that they will appeal to their customer’s target market. Nordstrom will be different from their competition because they will have high quality fashion that is specifically made for youth. Topshop will also set Nordstrom apart because they plan to add a high element of speed to the department store by sending new merchandise out weekly. I think that beginning any type of partnership is risky because both businesses were already thriving at one point without each other. I do believe that Topshop has the biggest risk of losing their entire business due to downward sales because Nordstrom does not accept all of their ideas. For example, Nordstrom will allow Topshop to have an area in their store that looks exactly like a Topshop store. They will have Topshop signs, but they will not allow the Topshop music to be played (Clifford, 2012). Young people may find it weird to be shopping for nonconservative clothing while listening to the Nordstrom piano music.

Clifford, S. (2012, Jul 13). Conservative Nordstrom to sell trendy Topshop fashions. International Herald Tribune, 15. Retrieved from ProQuest

Respond to Manpreet Dhillon post

Hi Class and Dr. Tucker,

The partnership between two giants seems to be very strategic and calculative move. Nordstrom on the one hand has mastered the art of inventory integration between stores and warehouses whereas, Topshop on the other hand has capabilities to introduce 200 new styles a week at Topshop’s London flagship is clearly directed at engaging shoppers who prefer to browse and buy more frequently than its regular shoppers. This may or may not generate the initial fanfare of retail’s odd coupling. However Norstrom’s proven strategies are more about sustaining sales rather than making a quick splash.

Both of these companies share a common imperative factor as both catered to clientele with higher income. Topshop carries many different clothing lines that include collections, mainline, premium, boutique, unique, designer, and emerge. They really want to drive home the idea of being able to create your own unique look and style. All these put together would not fail to appeal to its target shoppers.

Widening Toshop’s fashion ranges under their roof specially for targeted shoppers like young women from 20’s to 30’s that are always looking for hottest and latest trends. This would mean that many of their customers are not exactly what you would call mainstream and aren’t afraid to be a trendsetter in their own way,

Topshop aims to achieve $1 billion business in US of America. Topshop sells many pieces in high volumes, which would help Nordstrom’s sales growth and the absence of UK based giant at multi brand retail stores are some of the factors that would reduce the risk for Nordstorm.In the long run, the partnership will benefit both companies, as Topshop attracts younger crowd and Nordstrom is already established and has its own recognized name. Nordstrom has higher end quality brands and everyone loves to shop from there.

A happier consumer is based on his or her experience and Nordstrom partnering with Topshop would be able to attract more younger audience consumers and will continue to have successful business growth.

Manpreet

Discussion 2 Market Segmentation

What are the different levels of market segmentation? Synthesize the segmentation strategies that manufacturers of personal computers should implement to attract both the Gen Y and baby boomer generation to increase their purchases of computers. Are there some examples of companies that have already done a good job of marketing across generations? Respond to at least 3 of your classmates.

Respond to Anai Igoche post

Our text describes mass marketing, segment marketing, niche marketing, and customized marketing as the different levels of market segmentation.

Mass Marketing is where the seller has no real set group they are trying to reach. The want to reach any prospective buyer. "Every individual within the market is part of the company's target market" (Finch, 2012).

Segment Marketing is where the marketing strategies are differentiating between customer groups within a product market.

Niche Marketing gets a bit more specific and "allows the organization to create more narrowing focused marketing plans for its brands than segment marketing approach and is also known as concentrated marketing".

Customized Marketing becomes really specific. In customized marketing "each prospective buyer is treated as a separate segment for marketing purpose" (Finch, 2012).

Baby Boomers do more research for things such as price and ease of use. Gen Y may also do research but more so for the perks. Baby Boomers are better marketing with customized marketing as they have a more vested into their purchase. Gen Y would be better marketed by mass marketing, as they are looking for the best of the best and what is trending verses all that it can do for them.

Apple does a good job at marketing both groups quite well. It is a trendy and hot commodity that most Gen Y like to have, yet it is super user friend and can do very specific task for those Baby Boomers.

Finch, J. (2012). Managerial marketing [Electronic version]. Retrieved from https://ashford.content.edu

Respond to Nicole Smith post

Mass Marketing, Segment Marketing, Niche Marketing, Customized Marketing are all different levels of market segmentation. Mass Marketing doesn’t take the time to differentiate to specific buyers. Segment Marketing pertains to the groups in the product market, so they are able to target them, Niche Marketing is a more focused market towards a concentrated customer base. Custom marketing is tailored just to the customer. So, for example, costume commissions for my clients.

When it comes to personal computers, it's able to have a segmented base to choose from. Gen Y seems to want more of the bells and whistles on items whereas the baby boomers only need the basics. (Although, there are some baby boomers that know computers a lot better than others and enjoy the bells and whistles).

Hewlett Packard has done a very good job with this. They have the easy to use, budget-friendly models to higher end gaming computers with all the extra bells and whistles. But there is also a comfortable middle as well; it is as if they can implement a mass segmentation marketing scheme. The can put computers out that appeal to everyone, but then looking at each type segments them all into areas where the differentiation takes place.

Finch, J. (2012). Managerial marketing. Retrieved from https://ashford.content.edu

Respond to Tenia Miller post

There are a few levels of market segmentation, and the type of service or product separates it. The segmentation is regularly divided by mass, niche, individuals and localized. As companies continue to market to consumers as a product or service, they have to gear their strategies to a specific age group.

For example, Baby boomer tends to hold their money and spend frugally. The also like to see the product before they purchase it and are not fans of internet purchases. They believe in brick and mortar stores versus going with the trends. Their segmentation marketing would be ideal for this group. Specifically, a computer company would benefit from having a store for them to visit.

Gen Y / Millennial are accustomed to making purchases online, not only clothes groceries, jewelry, and even homes. They desire always to have the latest trends and the most up to date products and services, often causes large amounts of debt and unnecessary material items. The same computer company might benefit from a robust online presence and social media influence.

Companies like HP, Apple(previously Macintosh) and Dell have been able to transition and evolve with the changing of generations, some better than others. HP has developed to vigorously compete with Apple, while Dell has maintained its consistency with a reliable laptop and upgraded software.