Marketing Case Study Sample


Nordstrom’s Salon is a company that deals in the sale of shoes to its final consumers. The company avails a variety of shoes that meet the needs of both men and women of different ages. John Nordstrom started the company in the year 1901. He was a Sweden citizen who migrated to the United States with the goal of engaging in business activities. Before engaging in the business, he worked in the mines as a casual worker. In the 1960s, the company had grown and became the largest shoe retailer in the United States. With time, the company ventured into selling women’s clothes. This aimed at diversifying the activities of the organization to ensure that the risks faced by the company were reduced. The company faced many challenges as it continued to grow. Its change of shareholding ownership structure over the years resulted in numerous challenges that took a long time to resolve, but the company continued to prosper through partnerships with other businesses to perform better. All these strategies were undertaken to ensure the company survives in its competitive market it has been serving all along.

Nordstrom’s Salon has braced the use of technology in its activities. The company has a website that enables its customers to shop online 24 hours for seven days a week. This retail strategy ensures that the establishment maximizes its profits by serving as many customers as possible. The organization aims at ensuring that customers have an amazing experience when they are shopping online or in the physical stores. Such good experience is important in that it attracts additional customers to the organization and creates positive goodwill. More customers mean more revenues and hence greater profits for the company.

The store positioning strategy involves opening as many stores as possible. The stores in the different states in the US ensure that many customers are reached. Apart from the sales at the stores, the company benefits from the sales that are made online. In that case, the company is well positioned to compete effectively with the competitors in the market.

Differentiation is the retail strategy the company engages in its marketing. In the differentiation process, the company sells a variety of quality products in the market. In addition, the organization ensures that its service environment is unique for its customers. The customers in their reviews of the establishment usually say that the shopping environment is exciting and attractive. Through the differentiation process, the company is able to sell products at a premium as compared to the other competitors in the market.

Customers are willing to pay the premium since they believe that the product quality and the service environment are the best. Other competitors in the environment use low cost retail strategy. Considering that Nordstrom’s Salon targets high-income earners, costs to the organization are not a significant issue as long as the customers are satisfied and come for a repeat purchase.

The mission of the company when serving its market is to ensure that the customer receives exceptional services in their shopping process. The company also aims at ensuring that customers have choice, get quality products and receive the value of the money they pay. The mission requires that the company continuously improves the provision of quality products in the market. Good experience for customers is extended not only in the stores but also on the website where customers can order for the products they wish to buy, and receive them within a short period.

Nordstrom’s Salon mainly uses the cost plus strategy when pricing its products. This means that the price attached to a product in the company relates to the cost of its production and the costs incurred in the sale inclusive of other services before closing a sale.6 The fact that the products are differentiated gives the organization an opportunity to price their products. This method of pricing enables the company to recover costs that are involved in the supply of the products, and a profit is added to the sale price of the products. Products in the company are of a higher price as compared to the price offered by competitors. The reason behind this is that the special shopping environment gives the company the pricing power to charge a higher price and retain customers…

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