final presentation global marketing

Agenda 1. Objec(ve2. Execu(veSummary3. CurrentSitua(onofNordstrom4. MarketJus(fica(on5. MarketEnteringStrategy

a.  MarketEntry,andStrategyChannelandPartnering

b.  TargetCustomers,CustomerSegmenta(onandPersonas

c.  RiskandManagement

d.  Globaliza(onandLocaliza(on

e.  E-commerceandDigitalMarke(ng

f.  SocialMedia,ContentandEventMarke(ng

6. PredictedProfitandLoss&FutureGoal

Objec(ves

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• Presenta(onObjec(veTogainapprovalbyexecu(vestolaunchfull-scaleprojecttooperateinoverseasmarket.

• BusinessObjec(ve

TogrowbusinessoutsideUnitedStatesandtakeafirststeptogrowglobally

• Marke(ngObjec(ve

Toincreasebrandawarenessinthenewmarketandsuccessfullyposi(onourselftoouridealmarketposi(on

Execu(veSummary

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Problem Solution

Outcome Implementation

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We have expanded in most of the states and we are reaching to the limit. At this rate, we may lose our growth potential within the country. In order to maintain our business growth, we should step outside US market and evolve our business to global scale.

The core strategies that we will take are the followings: ●  Direct Presence (100% capital investment) ●  Globalization and Localization practice ●  E-commerce marketing ●  Social Media Marketing

Australia is the best opportunity market to enter as the first step due to: ●  Low number of competitors ●  Low cultural risk ●  Lower tariff rate than US ●  High Income/capita

Break Even Point: -2,000,000 needs to be sold every month Expected ROI: - 20% of ROI - Expected unit of sales in a day is 2400 units Future Vision: - Expand across Australia - Expand Globally

CurrentSitua(onofNordstrom

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CorporateValue

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WelcometoNordstromWe'regladtohaveyouwithourCompany.Ournumberonegoalistoprovideoutstandingcustomerservice.Setbothyourpersonalandprofessionalgoalshigh.Wehavegreatconfidenceinyourabilitytoachievethem.

NordstromRules:Rule#1:Usebestjudgmentinallsitua(ons.Therewillbenoaddi(onalrules.Pleasefeelfreetoaskyourdepartmentmanager,storemanager,ordivisiongeneralmanageranyques(onatany(me.

OurPassion

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OurVision&Commitment

Dowhateverittakestotakecareofthecustomers.-JohnWNordstrom,1901

It’snotaboutusbeingrankedontopor‘bestinclass.’It’saboutdoingwhat’sbestforthecustomer.Infact,forget‘bestinclass,’theconsumerisconstantlyraisingthebar,andsincetheyarese\ngthestandard,we’recon(nuallyrese\ngoursupward.

-BlakeNordstrom

Instoreoronline,wherevernewopportuni(esarise,Nordstromworksrelentlesslytogivecustomersthemostcompellingshoppingexperiencepossible.

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“Excellent Customer Experience” address highest customer service

Strength Weakness

ThreatsOpportuni(es

◎ UniqueCorpora(onValueCulturethatempowerstheemployee’sdecision

◎ HighBrandImageStrongrela(onshipwithcustomers&brand

HighCustomerExperienceClearandoutstandingpresenta(onRefundpolicy

• LackingGlobalExperienceFirstforeigncountryexpansion-Canada,2014• LowPresenceinOtherCountry• LowAgilityHighini(alcosts((meandmoney)Duetolackofglobalexperience

ChanceofTappingintotheInterna(onalMarket

MarketsareemergingE-commerceindustryisgrowing

• Compe(torsNewEntryExpandingOverseasCompe(tors

IncreasingReturningCustomers$248b:53%Increasein5yearsReturnpolicyabuse

RecessionRisk

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CURRENTSITUATION

•  128full-linestoreinU.S.and230Rack

•  SaturatedmarketinU.S.

•  OperateonlyinNorthAmerica

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ItIsTimeToGoGlobal

MarketJus(fica(on

Indicatorforchoosingmarket

Country Income/Capita GDP/Capita Popula(onofWoman

ImportSizeofApparelGoods

(2015)

GrowthRateofImportsize

Canada 51,630 45,066 3,909 4,672,711 -1.89%

Australia 64,600 45,925 2,347 3,053,255 3.63%

UnitedKingdom

43,390 40,233 5,810 13,367,209 -4.83%

Japan 42,000 36,619 22,883 13,315,209 -8.65%

Germany 47,590 46,041 12,955 17,038,595 -10.37%

France 42,950 39,328 7,946 10,570,877 -8.54%

Dubai 44,600 36,060 562 5,887,793 17%

Italy 34,580 35,463 10,942 7,369,772 -10.78%

Brazil 11,790 15,893 26,790 1,048,631 -7.17%

Germany Japan Australia

Indicators Weight Score WeightedScore Score Weighted

Score Score WeightedScore

Income/Capita(2015) 3 7 21 6 18 10 30 GDP/Capita(2015) 1 10 10 7 7 10 10 Popula(onofEmployedWomen 2 4 8 8 16 1 2 ImportSizeofApparelGoods(2015) 2 10 20 8 16 3 6

ThreatNumberofCompe(tors 3 7 21 2 6 10 30 DecreaseRateofImporSizeofApparelGoods 2 1 2 3 6 10 20 AggregateScore 82 69 98

Compe((onGridHighCustomerexperience

LowCustomerexperience

HighPriceLowPrice

AppealClothing

Hofstede’sDimension(AUSandU.S.)Individualism-highlyindividualistculture-looselyknitsociety-takinganini(a(veShorttermOrienta(on-exhibitsmallpropensitytosaveforthefuture

-focusonachievingonquickresults

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Culture Ethnic Government

●  LowContextCulture

PeopleInterpretthewaywesay

●  DirectAdver(sement

●  Opencommunica(on

Australia U.S. ( Seattle )

Tariff 10% 15.9%

Sales tax 10% 9.6%

Corporate tax 30% 35%

●  25.9%ofthepopula(onare

English

●  25.4%ofthepopula(onare

Australian

●  7.5%Irish,6.4%Sco\sh,3.3%

Italian

●  LowerTariffandcorporatetax

ratethanUS

MarketEntryStrategy-Partnering-Channelmodel-MileStone

・DIRECTPRESENCE

・OEM

・AGENT・IMPORTDISTRIBUTOR

・EXPORTMANAGEMENT・DEALER/RESELLER・EXPORTTRADING

・LICENCE

MarketEntryStrategy

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Pros -High control (protect our mission, maintain high quality customer experience, deliver our own culture to customers) -High return -High flexibility Cons -High initial cost -Consuming time for market research,market strategy and implement with lack of experience -Difficulty to deal with localization -difficulty of managing people who have different culture

Pros -Easy to enter a new market -Learning beneficial information -Analytic strategy -Easy to localize and follow Australian regulations Cons -Miscommunication and misunderstanding our culture -taking a time to choose a right agent (large or small, background, client, culture, value)

CRITERIAFORAGENTS

ROLES&RESPONSIBILITIES CAPABILITIES

WHATWEINVEST WHATTHEYINVEST

-  submitregaldocuments-  connec(ontotherightpartners-  informa(onaboutlocalmarket

-  excellentrecordofconsul(nghistory-  deepunderstandingoflocalmarket-  posi(vea\tudetounderstandcompany

-shareourbusinessstrategy,cultureandpurposeofextensionofourbusinessintoAustralia-shareinternalandconfiden(alinforma(on-supportagentsintermsoffinance,(me,andhumanresources

-  theircommitmenttosmooththeextensionofourbusinessbyu(lizingtheirresourcessuchastheirknowledgeandexper(seforlocaliza(onofourproducts,regula(ons,documenta(onandsoforth.

-  feedbackaboutourserviceinAustraliaandtheircontribu(ontomakeitbeqer

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CHANNEL MODEL

externalinternal

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MILESTONE3YEARS storeopen

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12 months

18 months

30 months

RiskManagement&

Considera(ons

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RiskAspects RiskLevel Risk/Issues Solu(on

Management ModerateHighcontrolLackingknow-hows

Strongrela(onshipwithagents

Culture LowAustralianpreferqualityoverbrandManyculturalfactorsaresimilarwithUS

Adaptlocalculturalsuchasholidaysandvalues

Finance HighHighIni(alCost•  Costofbuilding•  Eventcost

Bank(MainBankSystem)Stockissue

Logis(cs Moderate•  Productdelay•  Damageandloss•  Tariff

IncotermInsuranceTrusrultradingcompany

Compe((on Moderate•  Lownumberofcompe(torsbutwe

ares(lllackingexperiencetooperateglobally

Differen(a(onbetweencompe(tors•  4Ps

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Regulatory Cultural Technology Privacy

•  Pricingmustincludetax

•  Labelmustincludethe

nameofthecountrywhere

producethegoods

•  Materialdescrip(on

•  Womenmakeup50%oftheworkforceandmostwomenremainintheworkplaceadertheymarry,andmanyaserthey’vehadchildren.Womenarealsofreetobreasreedinpublic.

•  Australianstrulyenjoyssport,

whetherbothplayingitorwatchingit.Australiaisalsorankedthetopcricke(ngna(onintheworld.

•  Collabora(onwithonlineshop•  E.g.discountcouponforonline

shopaserpurchaseatthefiscalstore

•  PrivacyAct1988(Protec(onofpersonalinforma(on)

Peoplearesensi(veforpersonalinforma(onPolicyaboutpersonalinforma(on•  E.g.Documentwithcoverseal

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Targetcustomers,Customersegmenta(onandcustomerpersonas

Whoareourtargetcustomers?

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Globaliza(onandLocaliza(on

-Globaliza(on-Localiza(on

Globalization , Localization Grid

Product

Globaliza(on Localiza(on

Pricing

Promo(on

Place

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Ethno Centric Poly Centric Geocentric

Product(Geocentric)-adapta(on

1. DifferentpreferenceChoosingrightbland/clothing

1. LabellingrequirementChanginglabel

1. LanguagebarrierEducateemployee

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Price(Geocentric)

◦  PricewillbesethigherthanUS

◦  Corepricingstrategywillbesame

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Image Enhance Strategy

Customer Satisfaction Strategy Profit Strategy

PriceWewillapplyUSpricingstrategy.●  PriceMatching●  SalesAdjustment●  PricingerrorsFurthermoreweunderstandthatPriceElas(cityofDemandforapparelisrela(velyelas(c.● WemayadaptsomediscountstrategyfromUS○  Anniversarysales○  AffiliateCoupons○  andothers

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Price

 Compe(torPricingComparison◦ ProductsinAustraliaaresoldroughly25%higherthantheproductinUS◦ E.gChanelCosme(cs

● CustomerPricing◦ Consumerpricesare11.35%higherthanUS◦ Apairofjeanscanreachuptomorethan70%higherthanUS◦ Summerdressinachainstorecanreach40%higherthanUS

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Price-Compe(torPriceComparison

DavidJones Nordstrom

*Note:Australian$164=US$126 *1.7oz=50ml

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Place(Ethnocentric)

Promo(on(Geocentric)-adapta(on● SaleSeason–Differentseason,

differentholiday● Theimageofouradver(sing-

shouldbemorelessfancyandhighquality● CollaboratewithlocalfamousBlogger/Vlogger

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1.   ChangeBrand/ProductLine2.   ChangeProductLabels3.   Higheduca(onemployee

Extendingourcurrentstrategy

1.   Saleseason2.   Theimageofadver(sing3.   CollaboratewithBlogger

Adapta(onStrategies

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E-commerceandDigitalMarke(ngStrategy

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Whyisitsoimportantforus?

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Whyisitsoimportantforus?

Excellentfeatures

Reduceuncertainty

●  Targetemailcampaign

●  Mobileappno(fica(on

●  SNSupdate

●  Websiteads

●  AffiliatorsinAustralia

Customerjourney

Informa(on Evalua(on

Delivery

Purchase

SupportVariousshippingservice-Fastshipping-Gisshipping-Greenshipping(Eco-friendly)-One-dayshipping(UberRASH)-Interna(onalshipping

●  Picturesandvideoproviding

products’details●  Sugges(on -Size

-Physicalstore’sloca(on-Otherproducts

●  Mobilecamerafeature●  Comparisonfeature

●  Onlinesupport(Livechat)

●  Callcenter

●  Simplepurchaseform●  Variouscreditcard

op(ons●  Digitalcoupon

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Website●  Amazingrecommenda(on●  Suitableitems

Informa(on

TargetedE-mailcampaign●  Updatemail●  Birthdaymail

Affiliatenetwork●  CollaboratewithaffiliatorshaveinfluencetoAustralian/Website,SNS(FB,Youtube,Twiqeretc...)

Integra(onwithofflineOFF-->ON●  PostcardDMwithQRcord●  DigitalcouponON-->OFF●  Sugges(onofavailablephysicalstore

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Evalua(on●  Sugges(onfeature(APP)

Sugges(onofsimilarproductsbasedonthepicture●  Automatedsizesugges(on(Web/APP)

Sugges(ontherightsizewithmoreaccurateinforma(on●  ProductVideo(Web)

Moreaccurateinforma(onofproducts

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Purchase

Easy Process ●  Exis(ngcustomers●  Newcustomers●  Paypalpayments

SocialMedia,ContentandEventMarke(ng

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Wish Your Dream to Santa Nordstrom is in Sydney Fireworks at Opera House

•  3 days Launch Event •  CEO and celebrities will cut the

tape in front of the customers •  Fireworks in the sky

•  Nordstrom will be decorated in Christmas theme and costumes

•  Costume rental service •  Small gifts from Santa

•  Nordstrom will sponsor new year firework events

•  Locate Nordstrom booths

nearby

Introduce Autumn/Winter Products

ROMAN DE LA ROSE Valentines Day

Design Your Brand @NORDSTROM

•  Send video/picture with your couple and Nordstrom will post them on Website

•  Couple photo booths

•  New product lines •  Affliators will Introduce the

products on internet

•  Candidates are allow to submit their sketch design

•  Finalists’ design will be presented

on Nordstrom

Fashion Parade at Queen’s Day

Make Mom Smile @ Nordstrom

NORDSTROM Fashion Contest

•  Create a heartwarming video with theme of “mother’s love”

•  Special gifts for mother

•  Small Parade to celebrate queen’s birthday

•  Costumes are designed by

local designers

•  Candidates are allowed to post their photos of their fashion on Instagram and bet votes will win a prize #Nordstrom_FContest16

Introduce Spring/Summer Products

Nordstrom X

The Royal Children’s Hospital Australian Football League

Final Event

•  Interact with cancer patients and Nordstrom will help to delight his day

•  Video will be posted on

Youtube

•  New product lines •  Affliators will Introduce the

products on their websites

•  Nordstrom will have special booth for the finalist teams

•  Signature event by the players

“NordstromisinSydney!!”

Element Howiselementusedeffec(vely?

Heart Bigeventiscomingup!Wanttotakeapicturewithcelebri(es&Ar(sts

Fun Fireworks/Meetcelebri(es&Ar(st/Dressperformance

Cause Brandawareness/Communicateandconnectwithcustomers

Community Offline:Customers,Celebri(es,Press,Media,BrandpartnersOnline:SocialMedia,Media

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Talkers Peoplecometotheevent,Celebri(es,Bloggers,Press,Media,Peoplewatchedourvideoandpostabouttheevent,Brandpartners

Topics Fireworks,Nordstromlogoontheoperahouse,Fashionshow,Dressperformance,Famouscelebri(es,Limitedshopbag

Tools Offline:Normalgirls,Celebri(es,Decoratedstore,Operahouse,Samples,MagazinesOnline:Blog,Internet,SNS,News

TakePart Respondthecommentonsocialmediaandvideo,RespondtotheinterviewbyTV,Thankyouemailtobloggers

Tracking #ofpeopleattheevent,#ofthesales,#ofnewmembership,#ofpeopletrysamples,#ofpressandmedia,#oflike(FB),#ofviews

“NordstromisinSydney!!”

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Market Entry, Channel Strategy and Partnering

Risk and Management Target Customers, Customer Segmentation and Personas

Management – Moderate

Culture – Low

Financial – High

Logistics – Moderate

Competition - Moderate

Customer Personas:

Globalization and Localization E-commerce and Digital Marketing

Social Media, Content Media and Event Marketing

PredictedProfitandLoss-Breakevenpoint-ROI 58

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Monthly Units Break Even: 2,000 units Monthly Revenue Break Even: $2,000,000

salespriceperunit:$1,000variablecostperunit:$700contribu(onmarginperunit:$300expectedROI:20%expectedmonthlysaleunits:2400units*ROI=(300(margin)*2400(monthlyunits)-600,000(investment)/600,000(investment))*100=20%

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EXPECTEDROI

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OurFutureVision

Thank You For Listening