Global Marketing Presentation

83
Amany Hamza, 21202244 Jonathan Ellis, 21153283 Kavi Johal, 10280251 Michael Sirch 21 20 56 40 BY 2013

Transcript of Global Marketing Presentation

Page 2: Global Marketing Presentation

Agenda

Executive Summary

Nordstrom Overview

Introducing Nordstrom;

Situation Analysis;

Financial Analysis

The Global Nordstrom

Our Mission and Objectives;

Market Analysis: Brazil, UK

Market Entry: Brazil, UK

Recommendation;

Conclusion.

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Executive Summary

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Situation Analysis

Customer Store Design Production Team

“We put our customers at the heart of

everything we do and are truly

passionate about the

products that we sell.”

“Meeting point between our customers and Nordstrom fashion selling points.” Operates 242 stores, 31 states, Store modernisations, Good visual

merchandising and product presentation,

Efficient distribution of supply chain

“A unique, differentiated

product offer at affordable prices.” A range of Apparel(casual, formal wear),

Shoes, Accessories. Product

Standardisation.

“The right teams to deliver

sustainable competitive advantages through the best practice

across the business.”

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GLOBAL NORDSTROM

AT A GLANCE

We are committed to meet

the needs of all our

stakeholders in everything

we do. With compelling

merchandise and an

unyielding commitment , we

are the retailer that

customers trust.

Our Vision

"At Nordstrom,

we value the

richness that diversity

brings to our

workforce - it makes

our Company better

and the communities

we serve stronger.“

Our Values

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•Outstanding flagship stores, wide space layout

•High store loyalty

•Online

•M-commerce

• Billboard

• Facebook

• Social Media

• Internet Marketing

• Print

• NUS discount

•Market Penetration

•Competitive Pricing

•Membership

•Brands

•Core Lines

•Product Standardisation

•USP: Vibrant fashion trend Product Price

PlacePromotion

Marketing Mix

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Speaking with one voice

Bra

nd

Tac

tics

Customer-Based Brand Equity Pyramid

ResonanceLoyalty

Engagement

Community

FeelingsCool

Fun

Excited

Timeless

JudgementsBrand credibility

High Quality

Value Proposition

ImagerySelf-Selection

Buying pattern

PerformanceAffordable Prices

Customer Care

SalienceLiked by all consumers in target segment

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PESTEL Analysis Brazil

Economical

Upper-middle income

country

GDP:

$2.477 trillion

GDP-Ranking:

7

Unemployment rate:

6.0

Inflation rate – all

items:

6.6

Social

•Population: 196.7 million

•Population growth rate:0.9

•Life expectancy: 73

•Overweight and obese aged 15 and over: 48.1

Technological

•Households with access to the internet::37.8

SOURCES: Worldbank (2013),

OECD (2013)

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SWOT Analysis: Strengths

Innovators in technology for merchandising and tracking i.e. Personal Book, & register systems.

Known for yearly Anniversary Sale, which earns more revenue in one week than all of the holiday shopping season, making for very successful second and third quarters.

“Forbes 100 Best Companies”.

Nordstrom Rack’s revenue has grown consistently over last 3 years:

0

500

1,000

1,500

2,000

2,500

2009 2010 2011

$ (m)

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Hofstede Analysis - Brazil

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Brazil

UK

• Individualism score of 38.

• Integrated into strong,

cohesive groups (especially

represented by the extended

family).

• Important to build up

trustworthy and long lasting

relationships.

• Power Distance Score of 69.

• The different distribution of

power justifies the fact that

power holders have more

benefits than the less powerful

in society.

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Customer Life Cycle - Brazil

• Use analytics from sales and social media to adapt the brand offering

• Re-introduce the brand using consumer intelligence previously collected

• Focus on trend changes and seasonal products to increase sales

• Introduce brand and generate interest through digital and physical marketing

Brand awareness

Stimulate

MonitorRetain

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Brazil

UK

Hofstede Analysis- UK

• Long Term Orientation score

of 25.

• Businesses are focused on

short term quarterly goals and

quick results.

• Individualism score of 89.

• The affluence of Britain has

increased throughout the last

decade, with wealth also

‘spreading North’.

• Rise of rampant consumerism

and a strengthening of the

‘Me’ culture.

Geert-hofstede.com

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Marketing Budget

Last updated:

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Personnel

Salaries, wages 200 200 $400

Benefits 0

Payroll taxes 10 10 10 10 40

Commissions and bonuses 20 20 20 20 80

Personnel Total $200 $10 $20 $10 $0 $30 $0 $0 $30 $0 $200 $20 $520

Market Research

Primary research 10 10 10 10 10 $50

Secondary research 10 10 10 10 10 10 10 70

Market Research Total $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $120

Marketing Communications

Branding 30 20 10 10 $70

Advertising 100 50 50 30 20 15 265

Web sites 10 10 10 30

Direct marketing 20 20 40

Collateral 0

Press relations 5 5 4 4 10 28

Public relations 5 5 5 5 5 10 35

Analyst relations 2 2 4 2 2 4 16

Events 50 30 40 120

Marketing Communications Total $172 $102 $119 $25 $2 $4 $35 $0 $41 $20 $20 $64 $604

Channels

Channel communications and training 50 50 20 10 10 10 $150

Channel promotions and incentives 10 10 10 10 16 10 10 10 60 60 70 276

Channel commissions/bonuses 0

Channels Total $60 $60 $30 $10 $16 $20 $10 $10 $10 $70 $60 $70 $426

Customer Acquisition & Retention (CAR)

Lead generation 10 10 10 10 10 10 10 $70

Customer loyalty 20 10 10 10 10 60

CAR Total $20 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $130

Other

Postage 10 10 10 10 $40

Telephone 10 10 10 10 10 50

Travel 150 100 100 100 50 50 550

Computers and office equipment 20 20 20 60

Other Total $170 $110 $10 $130 $0 $10 $10 $10 $120 $10 $60 $60 $700

Total Marketing Budget($000) $632 $302 $199 $195 $38 $84 $75 $40 $221 $120 $360 $234 $2,500

Marketing Budget Plan

11/02/2013

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Product-Market Growth Matrix – Ansoff Outperformed Present Products (casual wear,

formalwear, shoes, accessiores),

Maximise Brand Roll out,

Growth Opportunities in new markets.

High

Market Growth

Low

QUESTION MarkA good market but will the product do well in it?

StarProducts that are doing well quickly.

DogStruggling in a slow market.

Cash CowContinuing to do well in an established Market.

Low Market Share High

NO

RD

STRO

M M

arketing Strategies Boston Matrix

ChallengesConvert the Question Marks and Stars into Cash

Cows of the future

Manage the Dogs

The profits earned from Cash Cows can be used to

develop and promote Stars and Question Marks.

Exiting New

New

Exit

ing

Ma

rke

t

Products

Market Penetration

Product Development

Market Development

Diversification

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Sales

Time

(1)

B C

D

A

(2)

(3)

Portfolio (A – Rack) is at

Maturity stage – cash cow.

Generates fund for the

development of Portfolio (D-

Multi-Brands)

Cash from Portfolio (B – Full

Line) is used to support Portfolio

(C- Featured Brands )through

growth stage and to launch

Topshop Exclusivity. The Rack

now possibly a dog?

Cash from Portfolio (C-

Featured Brands ) is used

to support growth of

Portfolio (D- Multi-

Brands) and possibly

finance extension strategy

for B?

Product Life Cycle and the Boston Matrix

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Recommendation and Conclusion

UK

High quality merchandise sold at discounted prices to students in Greater

London aged between 16-24.

UK market size predicted to grow to £7bn in 2015. This with recession

means that consumers will want to spend money if they feel it is 'worth it'.

Consumers have all the bargaining as there are so many organisations

competing against each other.

Brazil

Growing digital consumption and relatively slow uptake by competitors

creates a significant gap in the Brazilian retail market for quality products

Attractive market: Brazilian economy is strong, has a developing middle

class with expendable income and a young population

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Recommendation and Conclusion

TimeLine:

The market entry needs to be heavily promoted

during the holiday season. This is when

consumers are doing most of their shopping.

We foresee that Nordstrom will dominate these

two markets if we focus on young fashion with

tasteful styling at affordable prices.

The efficient execution of our global marketing

model will lead Nordstrom into the Fashion

market with more expansion plans in other

countries in the near future.

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References1. Answers, (online), available at: http://www.answers.com/topic/nordstrom-inc #

2. BBC, (online), available at: www.bbc.co.uk

3. Ceasing a business in UK regulations, Growing Business, (online), available at: http://www.growingbusiness.co.uk/the-cost-of-closing-down-a-business-has-gone-up.html

4. Clothing Retailing Market Report 2012, Keynote, (online), available at: https://www.keynote.co.uk/market-intelligence/

5. Forbes, (online), available at: http://www.forbes.com/sites/lydiadishman/2012/02/20/nordstroms-savvy-sales-strategies-for-stellar-growth/

6. Geert, (online), available at: www.Geert-hofstede.com

7. Interbrand, (online), available at: www.interbrand.com

8. Microsoft Advertising- Clothing & Footwear Trends, Adam Goodman, May 2011.

9. Mintel Report- Fashion Online – UK – March 2012.

10. Nordstrom Annual report 2011

11. Nordstrom Retail Marketing BA 495 (online), available at:

12. 2. PR Web, (online), available at: http://www.prweb.com/releases/retail/fashion/prweb10494886.htm

13. The Brand wheel, (online), available at: www.therightgroup.com.au

14. UK Trade and Investment, (online), available at: http://news.bis.gov.uk/imagelibrary/downloadmedia.ashx?MediaDetailsID=6389&SizeId=-1

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References

15. arezzo.com.br/inverno2013/

16. bloomberg.com/news/2013-01-15/brazil-november-retail-sales-rise-for-sixth-straight-month-1-

.htm

17. bookofezekiel3.wordpress.com/2010/03/19/dear-president-luis-de-silva-its-good-to-share-

proportional-to-population/

18. cea.com.br/

19. Chee, H Harris, R. (1998). Gap Analysis. In: Chee, H Harris, R Global marketing strategy.

London: Financial Times Pitman Publishing . 71

20. cia.gov/library/publications/the-world-factbook/geos/br.html

21. comscore.com/Insights/Presentations_and_Whitepapers/2013/2013_Brazil_Digital_Future_in_

Focus

22. comscoredatamine.com/2010/10/orkut-facebook-and-twitter-growth-in-brazil/

23. en.wikipedia.org/wiki/Brazil

24. Nordstrom Investor Relations - http://phx.corporate-ir.net/phoenix.zhtml?c=93295&p=irol-

irhome

25. forbes.com/sites/ricardogeromel/2012/03/23/brazils-e-commerce-is-booming-record-breaking-

figures-in-2011-growth-of-26-earnings-of-11-bi/

26. gap.com/products/womens-clothing.jsp

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References15. hering.com.br/

16. hm.com/gb/

17. huffingtonpost.com/2012/03/11/brazilian-spending-us_n_1337354.html

18. huffingtonpost.com/brian-honigman/100-fascinating-social-me_b_2185281.htm

19. institucional.geravd.com.br/arquivos/acontece/WebShoppers.pdf

32. instituteofcustomerservice.com/1711-8843/The-UK-Customer-Satisfaction-Index-January-

2012---executive-summary.html

33. just-style.com/analysis/zara-grows-in-brazil-while-gap-and-hm-dither_id112354.aspx

34. kpmg.de/docs/Folder_Market_Entry_ing-Final.pdf

35. latinlink.usmediaconsulting.com/2011/11/what-brazilians-buy/

36. lib.utexas.edu/maps/americas/americas_pol96.jpg

37. luxuryinstitute.com/blog/?p=2310

38. marisa.com.br/

39. online.wsj.com/article/SB10001424127887323301104578257950857891898.html

40. pwc.com/en_GX/gx/retail-consumer/pdf/brazil.pdf

41. socialbakers.com/facebook-statistics/brazil

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32. sophiamind.com/en/research/beauty/women-are-satisfied-with-the-beauty-products-

available-today-however-they-are-not-loyal-to-specific-brands/

33. Thompson Reuters Street Events – Nordstrom at Bank of America Merrill Lynch

Consumer and Retail Conference

http://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CDQQFjA

A&url=http%3A%2F%2Fphx.corporate-

ir.net%2FExternal.File%3Fitem%3DUGFyZW50SUQ9MTc1ODI3fENoaWxkSUQ9LTF

8VHlwZT0z%26t%3D1&ei=9jRUUfveM8G1PZ3FgcAF&usg=AFQjCNFzAsh3W9As7rK

F4gAWEujdxUH1iA&sig2=5k0TOzwYYKZCyg1hUkPqmQ&bvm=bv.44342787,d.ZWU

&cad=rja

34. time.com/time/world/article/0,8599,2075717,00.html

35. zara.com/webapp/wcs/stores/servlet/home/uk/en/

References

Page 81: Global Marketing Presentation

0

10

20

30

40

50

60

70

80

90

100

PDI IDV MAS UAI LTO

Brazil

UK

Hofstede Analysis- UK

• Long Term Orientation score

of 25.

• Businesses are focused on

short term quarterly goals and

quick results.

• Individualism score of 89.

• The affluence of Britain has

increased throughout the last

decade, with wealth also

‘spreading North’.

• Rise of rampant consumerism

and a strengthening of the

‘Me’ culture.

Geert-hofstede.com

Page 82: Global Marketing Presentation

Hofstede Analysis - Brazil

0

10

20

30

40

50

60

70

80

90

100

PDI IDV MAS UAI LTO

Brazil

UK

• Individualism score of 38.

• Integrated into strong,

cohesive groups (especially

represented by the extended

family).

• Important to build up

trustworthy and long lasting

relationships.

• Power Distance Score of 69.

• The different distribution of

power justifies the fact that

power holders have more

benefits than the less powerful

in society.