January 10th, 2018
Marketing case study|Nordstrom stores – Promotional strategy for entry into the Mexican market
Nordstrom stores’ promotional strategies should address the motivation factors that ensure customer loyalty. In Mexico for instance big stores are associated more with meeting the customers’ functional needs such as having all the customer wants under one roof rather than familiarity and supporting the local economy (Paswan, Pineda, & Ramirez 2009). With such perceptions being inherent in the market, Nordstrom’s principal promotion strategy would be to institute public relations programs that emphasize on its customer service prowess. Such would be possible through a number of promotional activities
First, the company needs to institute extensive online and mass media marketing in Mexico to inform people of its quality products and exemplary customer service that includes returns. By the use of catalogues and online advertisement the company can adequately inform different sections of the society on the quality of their products.
Secondly, the promotional activities need to include personal selling activities such as personal books. With such a strategy, the company could change the perception of the Mexicans on familiarity with big stores owners (Paswan, Pineda, & Ramirez 2009) thus helping build a market share.
A third promotion strategy that the stores should consider is sales promotion. These would include providing warranties for a longer period of time for items purchased at the stores. Further offering discounted purchases for a given period before establishing a large market would lure in customers who then can be retained via ensuring quality service.
Finally, the company should explore a push promotion strategy. By giving its vendors in the Mexican market incentives to sell more of its products the company can establish a considerable market share. Such incentives would include awarding discounts based on purchases made at the store or giving out other motivational prizes for highest vendors. This would also help in creating a customer network that is vital for future marketing activities.