The first is to utilize social media to leverage the power of technological innovation to reinforce the brand's image but also to move Nordstrom into the modern age with respect to its service and communications elements. The second is to focus its marketing message on bringing in customers of other department stores, and recapturing business that was lost during the economic downturn. In taking on these two strategies, Nordstrom should be able to recover some of the sales it has lost recently, and also should position the company to win a greater share of the traditional department store market.
If Nordstrom is planning to enter the Mexican market, the company should utilize a promotional strategy similar to that used in the United States. The company would occupy the higher end segment of retail in Mexico, appealing to the wealthy and middle class urban Mexicans. The company should utilize the following tactics to help enter the Mexican market.
The first element of the strategy should be place -- Nordstrom needs to set up a showpiece store, preferably in a wealthy district of Mexico City. The company needs to establish its credentials in the Mexican market and this is the best way to accomplish this task. Once the flagship has been established, Nordstrom can branch out into other parts of Mexico City and provincial centers.
The second element should be promotion. If Nordstrom wishes to be noticed among the wide range of other retailers in the Mexican market, it should launch a relatively intensive promotional campaign to announce its presence. The campaign should focus on awareness of both the Nordstrom brand and of the brand's pedigree and reputation. Customer service should...
The low cost of new media allows Nordstrom to communicate this message even to its North American customers. In addition, Nordstrom should ensure that its product offerings reflect Mexican tastes and its promotional materials use Mexican models.
In order to reach buyers in the Mexican market, the market focus should be newspapers. As a department store, Nordstrom targets a wide range of consumers, so its marketing distribution channel should reflect this broad market. Television advertising, for example, would require a broad slate of advertising in order to reach multiple target demographics. Newspapers, on the other hand, have a wide readership. The paper most read in middle class and upscale markets is most important.
The use of newspaper ads allows Nordstrom to control the size and intensity of the message. They can use large ads if they choose, or even multi-page inserts. Newspaper ads give Nordstrom the opportunity to not only grab the reader's attention, but to also hold that attention for enough time to convey the full scope of Nordstrom's introductory message. The company can utilize finer print to explain its customer service commitment, for example, and to introduce the history of the company. The flexibility and reach of newspapers make them the best channel for the Mexican market launch.
Works Cited:
Spector, R. & McCarthy, P. (2005). The Nordstrom way to customer service excellence. New York: Wiley.
Spector, R. & McCarthy, P. (1996). The Nordstrom way: The inside story of America's #1 customer service company.
