Macy's Vs Nordstrom Marketing Strategy

When accessing a website there are certain peculiarities that may enhance or distract from a pleasant experience. If those peculiarities are too great, a visitor is likely to leave the web page without completing the intended objective of the site owner. Toward that end, this paper compares the websites of two similar online retailers Dick’s Sporting Goods (Dick’s) and Sports Authority (SA). Comparisons were made of each company’s home page and product pages. Product pages were of similar items, by the same manufacturer if possible. The criteria used was modified from published lists however since most of these lists are several years old the author has eliminated some criteria that is obsolete with advances in technology and speed and included some criteria that is relative in today’s era of mobility, privacy and security concerns.

Bargaining Power of Buyers: The bargaining power of buyers is high in the department store retail industry. The volume of buyers is high, and buyers are very price sensitive in this industry. The products are not highly differentiated, and there are numerous stores that offer the same, or similar, products, giving buyers the opportunity to search for the lowest prices and information. The industry has substitutes available in the form of specialty, differentiated products and stores. This increases the power of buyers,

Unlike more mainstream oriented department stores such as JCPenney or Macy's the target demographic for Nordstrom is more upscale. Nordstrom markets products that are indented for those with more disposable income. Because of this, they may not sell the same volume of products as JCPenney or Macy's. However, what they do sell is likely priced significantly higher than the more mainstream competition. The major draw of Nordstrom is the quantity and status of the designer brand names that they offer. Some of these brands include Gucci, BOSS, Calvin Klein, as well many more designer labels. In other words, brand names that not would likely be found at the likes of more mainstream department stores. Furthermore, these brands could be considered

In this report, I am researching Nordstrom in order to gain information on if this company would be a good company for an undergraduate student to complete an internship with. I plan on finding out information on topics such as company culture, financial analysis, growth, and competition. I will look deeply into the company’s strengths and weaknesses in order to learn about sustainability and potential for long-term employment.

My favorite two places I normally shop are Macy’s and Old Navy. I always get quality clothes and items from these stores. Both stores are really good in marketing their products both online and in-store as well as use social media to engage their customers. Both store sells quality brands but Old Navy is a cheaper than Macys. Both stores promote special deals both online and in store such as percentage discount and free shipping with an amount of purchase to obtain such deal.

Nordstrom’s is classified as one of the biggest U.S. department stores. Along with Sears, Macy’s, and JC Penny’s, Nordstrom manages each department in their stores as an individual buying center. Every group functions separately from one another, and is administered by a buyer who is in charge of all varieties and styles of merchandise sold. Promotions that can be used in the stores are included, as well. “The company has also benefited from a new computerized inventory system that gives buyers and salespeople the necessary data to make smarter decisions about what is needed in the stores—and what isn’t.” (Lamb, Hair, McDaniel 569). This new and improved system allows the department store to market a greater amount of full priced items, which ultimately increase sales. The buyer is also able to easily determine what items to obtain and exhibit in the store by using this system.

They also understand that “when you stop evolving with your customer, you die,” as Jamie Nordstrom, president of stores, has said. They are building fulfillment centers to accommodate online shopping more quickly, use RFID chips to keep their perpetual inventory system for stores and online to share, and invested more into online growth than brick and mortar stores, knowing that this is where their growth is coming from. “Over the next several years Nordstrom expects to derive half of its sales from the Rack and from its online units, versus 38 percent today,” and that’s because “the U.S. Commerce Department estimates that electronic commerce amounted to 6.2 percent of total retail sales in the first quarter of 2014.” Analysts have also been saying Nordstrom has thrived compared to competitors because it is a pioneer in perks like free shipping and also having the unique diversity of products online. (https://nrf.com/news/nordstrom-exec-evolve-or-die) (http://www.luxurydaily.com/nordstrom-integrates-instagram-to-create-shopping-experience/) (http://seattletimes.com/html/businesstechnology/2024313399_nordstromearningsxml.html) (http://wwwiebe.com/nordstrom-customer-service-first/)

Critically analyze the organization from the systems approach. You should consider the inputs, transformation and output elements of the operation and consider how the system creates value.

A teenager goes to the mall with her friends they go into many stores. They first go into Charlotte Russe but they don’t see anything that they like, The clothes in the store just looks so cheap. They decide to go to Forever21 to find many different different varieties of clothes with affordable prices. All the greatest stores have different varieties of clothes, clothes that are in fashion, and affordable prices.

it is important to identify key strengths of the company over upcoming threats and weak points. Macy’s differentiate itself from competition with upscale “Celebrity” brand exclusivity, merchandise based on local preferences, and unique store design atmosphere. Based on analysis performed the company weighted strategy is to move towards the online and technology advances with maintaining Macy’s upscale storefront culture, integrating new product offerings with revising promotions to satisfy its target market and expanding operations to a new markets with present demand. From opportunities analysis strategy can be divided in three fragments

In year 4, we will expand the line to department stores starting first at Nordstrom. Nordstrom currently has a Topshop within the department store so we will add to that. This department stores fits the line very well and it will help new customers reach the line since Topshop’s are only in major US cities. Putting the Green line inside the department stores will create more brand recognition since this will allow more consumers to see and learn about the brand and the line. By year four we will know exactly what our best sellers are and those are the pieces that we will put in the department store. The Green line will be on Nordstrom’s website as well because of how good their online sales are doing.

On paper, there might not seem much difference between a JC Penney and a Nordstrom. Both are department stores, so they carry roughly the same merchandise categories. They are large, and act as anchors in shopping malls all over America. The shopping experience is actually not that much different between them. Yet, there are subtle differences for those who are willing to search for them. The differences tend to relate to our concept of social class distinctions. Massey (2007) notes that "all human societies have a social structure that divides people into categories based on a combination of achieved and ascribed traits" (p.1). Obviously, we make use of groupings like gender, race and religion, but less explored is the degree to which we use social stratification. Ehrenreich (2001) recounts the story of her journey into the social underclass, starting in the Florida Keys. Florida is a highly stratified society, with a concentration of high wealth individuals who choose to live in the state for things like weather and proximity to the ocean, and low wealth individuals whose role is primarily to serve the upper classes.

We don’t rely on promotions, be it one-day sales, coupons, or “friends of friends” sales. We think our regular pricing has to have integrity.” Fifth is presentation, where the stores image is determined. Nordstrom is known for its relaxed upscale image. Sixth is personnel or customer service, where employees assist customers with their shopping experience. Nordstrom’s personnel are outstanding while they may not serve customers champagne they definitely will go out of their way to assist customers. I think that their personnel have to be the reason behind their success. Whether the story about the customer buying one shoe or the customer returning tires are true or not, gives the current and potential customers a sense of comfort and good customer service beats prices any day.

The competitive advantage of Nordstrom is that they have extraordinary services, high wages, promotion possibilities, product availability, their image, customer loyalty, and patronizing sales in which source is superior customer service. Their current competitive strategy is broad differentiation strategy where Nordstrom seeks to differentiate their product or offering from competitor in ways that will appeal to a broad range of

We all know that both Walmart and Macys are two of the most popular stores, they both have different concepts of the customer experience have manage to divide the public right down the middle. Macy’s stores serves high-end clientele, Walmart has more relaxed and price friendly appeal to those of who are in the middle or even low income. Many middle income Americans shop at Walmart primarily because of their low prices, there are shoppers that gathers shop for the quality of Macys. Is just a matter of asking shoppers a question: Why Walmart vs Macys? What is more important quality or quantity for the shopper’s money? Depending at their answer could change the future of each store, and maybe each store could change their perspective towers their shoppers.