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Nordstrom Business Plan

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by

Javier Prado

on 5 February 2015

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Transcript of Nordstrom Business Plan

Dorothy Bukowinski
Chris Novak
Javier Prado
Amber Snearl
Sophiya Soltys

Introduction
Situational Assessment
Solution Overview
Solution Detail
Solution Alternatives
Costs
Implementation Timeline
Critical Assumptions/Risk Assessment
Marketing Plan
Conclusion
Agenda

Opened in 1901 in downtown Seattle as a shoe store by John W. Nordstrom and Carl Wallin.
From the start, John's approach to business was to provide

exceptional service
,
selection
,
quality
and
value
.
Nordstrom is proud to serve customers in 44 countries and 31 states with 117 full-line stores, 124 Nordstrom Rack locations, two Jeffrey boutiques, one clearance store and Nordstrom.com.
Introduction
Situational Assessment
We have found that it is in countries such as Poland that there is a
lack
in a strong market presence, especially in the luxury goods market.
Since the mid 2000’s, the economy of Poland has been
improving
which in turn shows a directly correlated relationship with the GDP per capita of the Polish people; they're becoming
wealthier
every year at a very high rate.
Economy
They have one of the fastest growing economies in Central Europe with an annual growth rate of
6%
.
Consumer spending is projected to
increase
by
34%
by 2016.
Poles on average spend
13%
of their income on luxury goods.
Social Demographics
Unofficial population of
1.5 million
people and
nine million
within a 62 mile radius.
The average age in the city is
37.5 years
, with
60 percent
of the population being under 45 years of age.
Solution Overview
We are suggesting opening a Nordstrom store within Poland’s Market Square
Given the growing demand in luxury goods due to the
increase
in middle class population, we have decided that a Nordstrom would prove profitable
This would
satisfy
the want for luxury goods
Solution Detail
The want for “luxury goods” as well as our mission to bring
Americanized
service to a European market place.
Luxury goods are any goods marked with a brand considered to be a luxury brand on a particular market, or goods which acquire a luxury status owing to their particular characteristics (uniqueness, high price, etc).
Of all 200 major global luxury brands,
53%
are represented in Poland.
Although they have a presence, they
may not offer
the opportunity to purchase merchandise in store, which is what we will bring to the city.
An actual store that customers can shop in and not just have knowledge of the “representation” of the brands.
Solution Detail Cont'd
Opening the store, we will access a loan of $20 million and enter to market with the licensing method to
minimize
the risk of enterying a foreign market.
The loan will cover what we expect to be our expenses, costs, etc...(see spreadsheet)
Within our Nordstrom, we will offer a
comfortable
environment within shopping such as including a
Starbucks
coffee located inside
Offer
free
shipping/return policy, a practice in business that is not common in Poland.
Offering brands that usually wouldn’t appear in Nordstrom’s, such as
Tiffany & Co. Jewelry
.
Allowing for the counters within each department to
“sample”
the new brands to get a general idea of whether or not certain brands will sell.
Keeping this in rotation with different brands will
attract “brand loyal”
customers to want to shop with us.
Solution Alternatives
Our initial idea was to have “top notch” brands within our company.
After realizing that we needed a starting point, we decided to adjust the merchandise we carry, to achieve our goal of
establishing
brand loyalty with brands that aren’t as luxurious but still within Nordstrom quality.
Bringing
quality brands
that would fit into Poland’s standards as well as Nordstrom’s atmosphere would allow for us to
ease
into the opening of our business.
Substitutes/Alternatives?
Offering lower end brands that still fit into Nordstrom?
Smaller/ individual carriers?
Allowing for items that aren’t available in store to be ordered via internet
Costs/Financial Statement
What is Nordstrom?
Implimentation Timelime
Construction will begin
Advertisment for Nordstrom will appear in Krakow.
Week 1
Week 52
Exclusive fashion show held at Nordstrom.
Grand Opening to the public.
20 thousand units of merchandise sold.
Begin plans to introduce higher luxury brands.
Week 16
Six additional luxury brands introduced.
29 thousands units of merchandise sold.
Week 104
Reach 50% of sales net income.
Expand Men's department
Week 208
Introduce expanded Kids' department and specialty shops.
Reach sales of 83 million.
Research other markets for possibilty of opening additional locations.
Week 260
Critical Assumptions/Risk Assesment
The people of Poland may be
offended
by our introduction of the brand along with American values.
European consumers are also view merchandise manufactured in china as being low in quality;
careful
selection of merchandise will be required.
Many foreign investment restrictions have been lifted or reduced which has
created many
opportunities and profitable ventures.
Marketing Plan
Conclusion
Showcase what the
newest
fashions are and make it
clear
that
Nordstrom
is the store that carries them.
Ads in Krakow, its
surrounding cities
and a few in the
bordering countries
that would have
easy
access to Krakow’s Market Square, specifically Prague, Czech Republic and L’viv, Ukraine.
Print ads in
fashion magazines
such as Harper’s Bazaar Poland, Cosmopolitan Poland, ELLE Poland and Moda Styl.
Promotions during the
first
week of our grand opening.
Securing a partnership with
Starbucks
Coffee Company.
Introducing a
new
service that is
growing
and it satisfies the needs and wants of new luxury goods.
With careful planning and selection of right local partners, Nordstroms can
successfully
enter the luxury goods market.
First mover advantage could help Nordstrom
expand
into other emerging markets.
Poland is the
only
country in the European Union to
avoid a recession
through the 2008-09 economic downturn.
Loan Amount: $20 million dollars
Interest Rate: 3.5%
Amount to be paid back: $ 22.1 million dollars.
Thank You
for Your Time!
Full transcript