Nordstrom Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of Nordstrom analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Nordstrom marketing mix, help the brand succeed in the market. Let us start the Nordstrom Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Quick Glance:
Nordstrom Product Strategy:
The product strategy and mix in Nordstrom marketing strategy can be explained as follows:
Nordstrom is mainly into top brands which cater to the upper middle class and the upper- class people of the society. They have a slew of categories of clothing for men which includes shirts, polos, pants, jackets, blazers, sweaters, scarves and shorts. For women it has tops, dresses, swimwear, lingerie, shorts, pants and sweaters. In shoes for both men and women they have a wide variety of products in marketing mix. Some of them are heels, shoes, boots, slippers, sports shoes, shoes for different occasions and sneakers.
Nordstrom also have a collection for kids which includes products for toddlers, little kids and big kids. They also have a collection of sunglasses for both men and women. For women there is a special beauty section which has all the accessories. All the products are of top brands like Versace, Louis Vuitton, Burberry, Lacoste etc.
Below is the pricing strategy in Nordstrom marketing strategy:
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Nordstrom Price/Pricing Strategy:
Following is the distribution strategy in the Nordstrom marketing mix:
Nordstrom has a wide range of products and therefore the price range is also stretched to a great extent. The brands are top ones along with mid-range brands so the company is able to widen its customer base. Nordstrom is an annual sale every year in the month of July where the greatest footfall takes place. They also have a return policy which gives customers the option to return a product within a certain period of time if they are not happy with it. Shoes range from $40 to as high as $1500. Clothing ranges from $50 to $2000.
The sunglasses range from $55 to $500.
Nordstrom Place & Distribution Strategy:
The promotional and advertising strategy in the Nordstrom marketing strategy is as follows:
Nordstrom has 349 stores in all out of which there are 123 full-line stores and 215 rack stores. They are present in 96 countries and the number of stores is targeted to reach 400 by the end of 2020. The products can be bought from the retail stores which are swanky and have a nice ambience and also are in areas where there is a high footfall of people. The purchases can also be made online from their website. Nordstrom ships to many countries. They have indirect channel distribution as they sell at various levels. There is therefore always a middleman for overseas shipping. They have their app for both Apple and Android phones through which all the browsing and purchasing can be done.
Nordstrom Promotion & Advertising Strategy:
Nordstrom has a very active presence on social media. They promote the brand through Instagram, Pinterest, Twitter and Facebook. The customers tweets are replied to and the responses are specific to the customer. They also have their monthly news-letter which can be subscribed by those interested to purchase. They also have a gift card subscription where after having a certain number of points which the store offers on purchases, the customers get a $20 coupon after reaching a certain number of points, they can spend this coupon in the Nordstrom store for any purchase. They don’t market themselves through traditional channels like TV ads or radio. They promote in newspapers during the time of sale and on billboards. They are also not associated with brand ambassadors.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Nordstrom.
People:
The entire store staff is knowledgeable and helpful and looks after the customers with a lot of attention. This ensures top quality service and attracts customers to come back. There are 73000 employees in all. Erik, Pete and Jamie Nordstrom hold top management positions in the business hierarchy. Blake Nordstrom is the president and Enrique Hernandez junior is the chairman. They have a very efficient recruitment system which hires talented sales reps who can drive the sales and at the same time offer great service. The company invests heavily in customer service.
Process:
The process is simple like any other retail clothing store. Nordstrom customers enter the store and go through the clothing line. After picking up some clothes of their choice they can try them out in the trial rooms and after getting the right fit and the design they can buy the product. Once a clothing line becomes old in the store it is moved to the ‘last chance’ section where they offer discounts on the line and later it is taken off the Nordstrom store. The products can be bought from the online store as well where they ship to many countries. The payment has to be made online for that.
Physical Evidence:
Nordstrom focuses on the customer service extensively. The sales reps are extremely helpful and knowledgeable and are therefore able to solve all the queries that the customers have. A lot of attention is given to the customers when they visit the stores which makes them feel valued and makes them come back. The ambience of the stores lives up to the expectations of the customers as the store is associated with top brands and also the website which has a great user interface. All this adds up to the physical evidence of the brand. Here this completes the marketing mix of Nordstrom.
About Nordstrom:
Nordstrom is an American high-end retail sales departmental store chain which was founded by John W Nordstrom and Carl F Wallin in 1901. It has more than 300 stores operating in 40 states across USA and has a workforce of around 70,000 employees.
It has an average net revenue of 15 billion dollars annually and has been listed on the New York Stock Exchange. Nordstrom faces fierce competition from stores like Macy’s, Dillard’s and Saks but still inspite of that continues to thrive in that category by combining fashion, shoes and accessories for men, women and children along with the branded Visa credit Cards.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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