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