Neiman Marcus Retail Company Essay Example

through 83 stores worldwide and an online platform.

Neiman Marcus Group's administration team wanted to expand the Omni-channel store network across all divisions globally. They also aimed to utilize current technology, such as mobile platforms, to modernize their brands and enhance customer service. The main objective was to provide customers with a seamless shopping experience by ensuring product visibility in all five divisions.

In their effort to implement an Omni-channel approach in the supply chain, Neiman Marcus Group realized they needed to consolidate and unify all items across divisions into a single UPC code. They also required vendors to upload these UPCs to a central location and ensure that products could be electronically transmitted and received through Purchase Orders (PO), Advanced Shipping Notices (ASN), and invoices.

After assessing the entire project scope, DiCentral determined that Neiman Marcus Group lacked the necessary staff and technology to communicate these requirements effectively to their team of 1,500 vendors. As a result, DiCentral collaborated with Neiman Marcus Group to implement a system that would successfully educate the vendor group and enable them to adopt new practices aligned with Neiman Marcus Group's trading partner guidelines.

Dealers in Hair Care Products, Makeup Products, High-End Skin Care Products, Gourmet Foods, Product Specialists, Bath & Body Care Products, Designer Fragrances & Beauty Products, Oribe Cosmetics, Fresh Beauty Products among others. The retail’s strategy is omnichannel integration, store improvement and e-commerce shopping experiences also known as online merchandising. The retailer realized that most of the customers adore shopping Neiman Marcus from anyplace on the planet, in stores and using e-business or with their call-center delegates, and they typically keep on improving the capacity to get the right things

to the customer. Neiman Marcus retailer is putting a lot of concentration and pumping a lot of money into its technology infrastructure.

The company's current focus includes three main areas: integrating Omni-channel services, enhancing in-store shopping experiences, and improving e-commerce and online merchandising. Neiman Marcus acknowledges that customers enjoy the convenience of shopping with them through various channels such as physical stores, their e-commerce platform, or by contacting their call-center representatives. They continuously strive to enhance their ability to provide customers with the right products and a complete service experience.
Recently, a senior vice president was appointed to implement Omni-channel strategies within the company. Furthermore, mobile phones play a crucial role in Neiman Marcus' approach to Omni-channel integration. They have recently launched an application called NM that connects their virtual presence with their physical stores. This application allows customers to search for products by department and also provides options for contacting sales associates at any Neiman Marcus store via email, text message, phone call, or FaceTime.

Clients can also receive advanced notice of upcoming store events or special offers from Neiman Marcus Retail. The retail company caters to a wide range of consumers by offering a comprehensive assortment of goods and services, appealing to almost every age group. Consequently, improved customer insight and awareness about the products available are provided through the information on the retail company's website.

Shop Style has teamed up with leading retailers to provide exclusive deals that are not available anywhere else. Neiman Marcus adds classical music to its store atmosphere, resulting in a one-of-a-kind shopping experience. Nevertheless, Neiman Marcus confronts tough competition from Nordstrom, the largest upscale apparel and shoe retailer in the country.

Nordstrom

is a retailer that sells clothing, shoes, and accessories. They have over 115 department stores and 165 off-price outlet stores called Nordstrom Rack in almost 40 states. They also have an online store. Their competitors include Saks Incorporated, Barneys New York, Inc., and other companies. Neiman Marcus enhances client relationship management by making changes to the Free-Form design.

The freestyle design, also referred to as the boutique format, organizes tools and pathways in an asymmetrical manner. This particular design aims to create a personalized and calming atmosphere that encourages shopping and browsing, as discussed in Chapter 17 of Visual Merchandising Store Layout. Neiman Marcus employs costly art installations and glass showcases to enrich customers' overall store experience. In a typical three-story Neiman Marcus store spanning 125,000 square feet, there are strategically placed 7,000 light fixtures throughout the retail space. Each type of light fixture and its placement are meticulously selected to exhibit merchandise similarly to how artwork is presented in a gallery.

Every display case, shelf, and table in the store is carefully arranged to ensure that the merchandise is well lit.

Target Market

Neiman Marcus Retail caters to a wide range of customers, encompassing all age groups. The retail's website provides valuable information, enhancing customers' knowledge about the products available and keeping them up-to-date.

Neiman Marcus Retail serves a diverse customer base by offering a variety of products. The website is essential for providing helpful information about the available items. Despite facing tough competition from Nordstrom, the top retailer for high-end apparel and footwear in the country, Neiman Marcus also provides similar clothing, shoes, and accessories.

Neiman Marcus faces tough competition from other

retailers such as Saks Incorporated and Barneys New York, Inc. However, its primary competitor is Nordstrom, the biggest upscale apparel and shoe retailer in the nation. Similar to Neiman Marcus, Nordstrom provides an extensive selection of clothing, shoes, and accessories. Nordstrom runs more than 115 department stores, 165 off-price outlet stores called Nordstrom Rack, as well as online sales.

Other competitors in the luxury market include Saks Incorporated, Barneys New York, Inc, among others.

Marketing Mix

For over a century, Neiman Marcus has remained focused on meeting the unique needs of the luxury market. Their main focus is on online merchandising and offering free shipping to customers' locations. The retail company prioritizes customer satisfaction by striving to provide top-quality products worldwide. The marketing mix is a crucial tool used by marketers in promoting products and brands. It is commonly associated with the four ps: price, product, place, and promotion, and is important when determining the appeal of a product or brand.

The success of the organization is clearly attributed to its recognition and adherence to its mission statement, which states that "Neiman Marcus Stores will be the premier luxury retailer recognized for merchandise leadership and superior customer service. We will offer the finest fashion and quality products in a distinctive environment." Neiman Marcus has remained committed to meeting the unique demands of the luxury market for over a century, staying true to the principles established by its founders. The company strives to be acknowledged as the top luxury retailer, providing customers with exclusive merchandise and exceptional service. Neiman Marcus caters to affluent consumers by offering high-end collections of clothing, accessories, jewelry, beauty, and home products.

Neiman Marcus, headed by CEO

Karen Katz, operates 42 stores and 31 Last Call clearance centers in the United States. Together, these locations span over 6 million gross square feet. This information can be found on Neiman Marcus' Investors Relations page under the Corporate Profile section. Despite its already impressive presence, this retail powerhouse has plans to further expand and enter new markets in the near future.

The organization aims to target younger demographics by engaging in celebrity campaigns, collaborations, and through its relatively new e-commerce website launched in 1999 (Passport GMID, Online Luxury: A Lucrative Paradox). To attract the youngest demographic, it may be necessary for Neiman Marcus to expand its retail presence. In order to remain competitive, expanding into foreign markets could be the next step for Neiman Marcus. Will Neiman Marcus succeed in expanding, penetrating, and diversifying its brand? A closer examination of other aspects of this retail giant will be crucial.

Neiman Marcus provides a wide range of specialty items, featuring prestigious brands like Prada, Chanel, Gucci, Fendi, Christian Louboutin, Louis Vuitton, Balenciaga, Bottega Veneta, Michael Kors, Marc Jacobs Valentino and others. They have retail stores located in both Central Business Districts (CBD) and shopping centers for customer convenience.

The target market of Neiman Marcus is composed of affluent consumers who are part of the top 2% income bracket in the U.S. and similarly wealthy individuals worldwide (Farfan). A typical Neiman Marcus customer is well-educated, well-traveled, and sophisticated. The trade area has an immediate impact on sales. In the case of Neiman Marcus, the trade area would typically be in a prime location where 60 to 65 percent of customers account for a majority of the stores' sales and

clientele. They have the authority to offer discounts, place items on hold, contact customers through calls or texts, and many other privileges.

Sales associates will consult upper management if they lack confidence in their decision. Neiman Marcus store follows an Everyday High Pricing policy, except during the semi-annual Last call sale in January and July when prices are reduced by up to 65% off retail prices. This retailer's stock fits into the stock design classification due to its stylish nature. Anticipating demand, limited sales history, and sales forecasting are traditionally challenging. Neiman Marcus is successfully handling these challenges through analyzing past sales data, conducting market research, managing stock positions, and implementing effective marketing strategies.

Neiman Marcus provides a variety and collection of merchandise in both its physical stores and online store. It has also mastered the art of product availability based on customer demands. To efficiently manage inventory and prevent excessive expenses, Neiman Marcus distributes their holiday catalog in October, thus avoiding the busy Christmas shopping season.

Neiman Marcus utilizes its vacation index to quickly analyze data and track sales. This enables them to assess product demand and make informed decisions about inventory. Utilizing this tool allows Neiman Marcus to predict customer demand and effectively manage their inventory during the Christmas shopping season.

In light of technological advancements, it is recommended that a comprehensive survey be conducted on marketing strategies related to technology. Nowadays, customers increasingly rely on mobile phones and other digital devices for making purchases. Additionally, retailers who can adapt to changes in payment methods, store layouts, and delivery options will gain a competitive edge. As consumer demands for convenient delivery options, flexible payment methods, and competitive

prices continue to rise, retailers can expect intense competition in the industry.

The growing importance of technology in driving progress is clear as customers now rely on their mobile phones and other digital devices to make purchases. Retailers who can adapt to this trend will benefit from convenient payment options, both online and in-store, that are attractive to budget-conscious consumers. To attract and retain customers, I suggest implementing online merchandising on Neiman Marcus.

Having a built-in customer base or depending on a few big customers can be detrimental for businesses. To acquire and keep customers, businesses need to invest more money in promoting and advertising their products. There might be a need to create demand for specific products by implementing advertising tactics that convince customers to desire what is being offered. Moreover, businesses must nurture customer loyalty by offering exceptional services and constantly updating their products.

E-commerce innovation revolutionized the shopping experience by offering multiple options for individuals to shop. With internet access, almost every store is available at clients' fingertips, allowing them to purchase goods from the comfort of their homes with a simple click. The convenience of online shopping provides everyone with the opportunity to buy whatever they need or want. One advantage of online merchandising is its vast reach, without any geographical constraints. This enables businesses to become global and expand their customer base beyond their home country. Consequently, sales volumes increase, leading to profit maximization. Overall, online merchandising plays a crucial role in facilitating communication between customers and retailers.

The reason for this is that computerized promoting has the ability to reach a large number of potential customers at once Magos, and Radu (243). Online

merchandising has increased customers' exposure to the brand and the directly promoted product. To explain, the advertisement is easily accessible and can be accessed anytime, anywhere. This enhances customers' understanding of the different products offered by the retailers. Simplified payment methods across the internet and in-store retailing are also likely to continue to appeal to consumers. Customers are more likely to demand these services at affordable prices.

Technology and the internet provide a 24/7 customer service and enable online shopping at any time, unlike physical stores. This advantage allows retailers to direct customers from the store to their online platform. Additionally, the popularity of online merchandising has led to businesses operating solely online, eliminating the need for physical outlets. Brands capitalize on technology and the internet to effectively communicate with customers and expand their reach. However, there are drawbacks that are often overlooked due to businesses heavily relying on these platforms.

Computerized promoting offers several advantages, including easy measurement of its effectiveness, allowing companies to understand the reach of their marketing efforts and whether their digital strategies are successful. It also provides insights into the amount of traffic and engagement generated. Therefore, I recommend that Neiman Marcus continue to invest in online merchandising.

Conclusion

The best retailers understand the importance of tailored online merchandising strategies for each individual customer, based on their specific needs at that moment. They also recognize that customers' preferences and needs can change significantly during a shopping session. By selecting the right business strategy, companies can maximize the value of each customer visit and surpass competitors' approaches.

Reference

• Hernandez, T. and Svindal, M., 2012. Emerging retail strategies in urban Canada. Geospatial Technologies and Advancing Geographic Decision Making:

Issues and Trends: Issues and Trends, p.114.