Norstorm
“Norstrom: How to Succeed by Selling One
Charisse Drysdale
MKT 100
January 28, 2011
1. Identify the type of retailer that Nordstrom’s is classified as. Describe the characteristics it shares with other retailers of this type.
I would classify Nordstrom’s as a specialty store due to the fact that their service levels are high, assortment is narrow, price would be moderate to high, and the gross margin is high. Also, a statement from the case study from Industry observer Lior Arussy calls Nordstrom’s business strategy “greed through love.” Nordstrom’s shares the same characteristics as Neiman Marcus, Bloomingdale’s, Macy’s, Saks Fifth Avenue and Lord and Taylor’s. While it is pricier to shop for clothes and home décor at these stores; most designer labels prove to be of better quality, uniqueness, and durability.
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.
Nordstrom’s level of service would be on the continuum of full-service.
When looking at the two department stores like Wal-Mart and Nordstrom 's, it is much easier to contrast differences than compare similarities. This is because they are at opposite ends of the economic spectrum; Wal-Mart specializes in discounted prices, while Nordstrom focuses on quality at a higher price. Both companies enjoy much success, however. To attract customers that are more interested in each company 's characteristics, their marketing strategies differ from one another greatly. Wal-Mart offers many different products to suit every possible need of their customers. From automobile repair services to groceries to a variety of products in between, it is a one-stop shopping excursion for most of their customers. Wal-Mart jumps on the bandwagon whenever they see an opportunity - and seem to prosper because so. Nordstrom 's also strives to meet customer satisfaction
Charisse Drysdale
MKT 100
January 28, 2011
1. Identify the type of retailer that Nordstrom’s is classified as. Describe the characteristics it shares with other retailers of this type.
I would classify Nordstrom’s as a specialty store due to the fact that their service levels are high, assortment is narrow, price would be moderate to high, and the gross margin is high. Also, a statement from the case study from Industry observer Lior Arussy calls Nordstrom’s business strategy “greed through love.” Nordstrom’s shares the same characteristics as Neiman Marcus, Bloomingdale’s, Macy’s, Saks Fifth Avenue and Lord and Taylor’s. While it is pricier to shop for clothes and home décor at these stores; most designer labels prove to be of better quality, uniqueness, and durability.
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.
Nordstrom’s level of service would be on the continuum of full-service.
When looking at the two department stores like Wal-Mart and Nordstrom 's, it is much easier to contrast differences than compare similarities. This is because they are at opposite ends of the economic spectrum; Wal-Mart specializes in discounted prices, while Nordstrom focuses on quality at a higher price. Both companies enjoy much success, however. To attract customers that are more interested in each company 's characteristics, their marketing strategies differ from one another greatly. Wal-Mart offers many different products to suit every possible need of their customers. From automobile repair services to groceries to a variety of products in between, it is a one-stop shopping excursion for most of their customers. Wal-Mart jumps on the bandwagon whenever they see an opportunity - and seem to prosper because so. Nordstrom 's also strives to meet customer satisfaction
References: Grewel, D., & Levy, M. (2008). Marketing (Second Edition). New York: McGraw-Hill Irwin. Nordstrom Inc. and Subsidiaries. (2002). Annual Report 2002. Retrieved August 4, 2009, from about.nordstrom.com: http://about.nordstrom.com/aboutus/investor/ar/2002/NOR2002AR.pdf Nordstrom 's. (2009). Nordstrom 's. Retrieved August 3, 2009, from Nordstrom.com: http://shop.nordstrom.com/c/6011957/0~2377475~6003903~6011957?origin=tab-promo Reyes, S. (2006, August 21). brandweek.com. Retrieved August 4, 2009, from Study: Wal-Mart Private Brands Are Catching On: http://www.brandweek.com/bw/news/spotlight/article_display.jsp?vnu_content_id=1003020035&imw=Y nO