Maternity Clothes At
Brooke McGuire
Elizabeth Dwyer
Andy Chow
Gabriel Kim
NORDSTROM
Andy Chow- Marketing strategyAndy Chow- Marketing strategy
Gabriel Kim- Human Resource planGabriel Kim- Human Resource plan
Elizabeth Dwyer- Projected financesElizabeth Dwyer- Projected finances
Presentation OverviewPresentation Overview
US Annual Birth Rate Rising
4055020
3755442
3548972
39370494058814
3200000
3400000
3600000
3800000
4000000
4200000
1 2 3 4 5
Years
Num
ber
of B
irth
s
1994 1996 1998 1999 2000
Maternity Customer Base Growing
Source:US government health trends report
Customer Profile
Mothers to beMothers to be
Ages 25 -35Ages 25 -35
Household income 60,000 +Household income 60,000 +
A Pea in the PodA Pea in the Pod
Mimi MaternityMimi Maternity
The Bon MarcheThe Bon Marche
Maternity Competition
A Pea in the Pod Offering BestA Pea in the Pod Offering Best
Three dot Tahari
Seven jeans
Others include:
• Sharagano
• Juicy Jeans
• Joie
• Marc Jacobs
4 P’s of MarketingProduct
Price
Placement
Promotion
Marketing StrategyMarketing Strategy
Product/PriceProduct/Price
High fashion maternity clothingHigh fashion maternity clothing
Relative pricingRelative pricing
Nordstrom brand name - HalogenNordstrom brand name - Halogen
PlacementPlacement
137 stores in 26 states
Distribution channels on every coast
Internet
Promotion
Keep it simple
Keep current vendor marketing schemes
The Nordstrom name
5
4.1
3.53
2.4
0
1
2
3
4
5
6
2002 2003 2004 2005 2006
Year
Mill
ions
of D
olla
rs
Net Cost
Marketing Expense Decreases
Source: Nordstrom 2002 Financial Prospectus
Implementation of the Maternity LineImplementation of the Maternity Line
Increase Current SelectionIncrease Current Selection
Strengthen Vendor RelationshipsStrengthen Vendor Relationships
Highlight Product PlacementHighlight Product Placement
Expand HR OperationsExpand HR Operations
Current SelectionCurrent Selection
Few Maternity ProductsFew Maternity Products
Low Maternity SelectionLow Maternity Selection
Not Our PhilosophyNot Our Philosophy
Vendor RelationshipsVendor Relationships
Current Specialty StoresCurrent Specialty Stores
- Seven Jeans- Seven Jeans
- Three Dot - Three Dot
- Marc Jacobs - Marc Jacobs
Other Potential VendorsOther Potential Vendors- Juicy Jeans- Juicy Jeans
- Sharagano- Sharagano
- Liz Lange- Liz Lange
Product PlacementProduct Placement
Current Specialty SectionsCurrent Specialty Sections– EncoreEncore– Petite FocusPetite Focus– T.B.D.T.B.D.
Location A PlusLocation A Plus
HR OperationsHR Operations
Increase Department StaffingIncrease Department Staffing
Commit To Employee Training Commit To Employee Training
Raise Compensation for SalesRaise Compensation for Sales
Department Staffing Structure
M erch an d ise B u y e r
S ales S taf f S a les S taf f S a les S taf f S a les S taf f
A ss is tan t M an ag e r
D ep artm en t M an ag e r
Exploring Nordstrom’s FinancesExploring Nordstrom’s Finances
Analyze Past PerformanceAnalyze Past Performance
Determine the Bottom LineDetermine the Bottom Line
Increase our RevenueIncrease our Revenue
$4.26$4.96 $5.05 $5.15 $5.53
$0$1$2$3$4$5$6$7
1997 1998 1999 2000 2001
Billio
ns O
f Doll
ars
Year
Net Sales
Source: Nordstrom Annual Financial Reports (1997-2001)
Performance On The Rise
Determining the Bottom LineDetermining the Bottom Line
Comparing CostsComparing Costs
Initiating ImplementationInitiating Implementation
Measuring RevenueMeasuring Revenue
$121.5
-$12.6
$184.8$157.4
$224.9
-$50
$0
$50
$100
$150
$200
$250
2002 2003 2004 2005 2006
Milli
ons o
f Doll
ars
Year
Net Income
Source: Nordstrom Maternity Department Financial Prospect Report
Increasing Our Revenue
Brightening Nordstrom’s FutureBrightening Nordstrom’s Future
Satisfy our customers’ needsSatisfy our customers’ needs
Create awarenessCreate awareness
Execute smooth implementationExecute smooth implementation
Generate fiscal growthGenerate fiscal growth