Post on 12-Apr-2017
transcript
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
3
• Presenta(onObjec(veTogainapprovalbyexecu(vestolaunchfull-scaleprojecttooperateinoverseasmarket.
• BusinessObjec(ve
TogrowbusinessoutsideUnitedStatesandtakeafirststeptogrowglobally
• Marke(ngObjec(ve
Toincreasebrandawarenessinthenewmarketandsuccessfullyposi(onourselftoouridealmarketposi(on
Problem Solution
Outcome Implementation
5
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
CorporateValue
7
WelcometoNordstromWe'regladtohaveyouwithourCompany.Ournumberonegoalistoprovideoutstandingcustomerservice.Setbothyourpersonalandprofessionalgoalshigh.Wehavegreatconfidenceinyourabilitytoachievethem.
NordstromRules:Rule#1:Usebestjudgmentinallsitua(ons.Therewillbenoaddi(onalrules.Pleasefeelfreetoaskyourdepartmentmanager,storemanager,ordivisiongeneralmanageranyques(onatany(me.
OurPassion
8
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.
9
Dowhateverittakestotakecareofthecustomers.-JohnWNordstrom,1901
“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
10
CURRENTSITUATION
• 128full-linestoreinU.S.and230Rack
• SaturatedmarketinU.S.
• OperateonlyinNorthAmerica
11
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
Hofstede’sDimension(AUSandU.S.)Individualism-highlyindividualistculture-looselyknitsociety-takinganini(a(veShorttermOrienta(on-exhibitsmallpropensitytosaveforthefuture
-focusonachievingonquickresults
20
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
・DIRECTPRESENCE
・OEM
・AGENT・IMPORTDISTRIBUTOR
・EXPORTMANAGEMENT・DEALER/RESELLER・EXPORTTRADING
・LICENCE
MarketEntryStrategy
23
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
24
28
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
29
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
Globalization , Localization Grid
Product
Globaliza(on Localiza(on
Pricing
Promo(on
Place
37
Ethno Centric Poly Centric Geocentric
Product(Geocentric)-adapta(on
1. DifferentpreferenceChoosingrightbland/clothing
1. LabellingrequirementChanginglabel
1. LanguagebarrierEducateemployee
38
Price(Geocentric)
◦ PricewillbesethigherthanUS
◦ Corepricingstrategywillbesame
39
Image Enhance Strategy
Customer Satisfaction Strategy Profit Strategy
PriceWewillapplyUSpricingstrategy.● PriceMatching● SalesAdjustment● PricingerrorsFurthermoreweunderstandthatPriceElas(cityofDemandforapparelisrela(velyelas(c.● WemayadaptsomediscountstrategyfromUS○ Anniversarysales○ AffiliateCoupons○ andothers
40
Price
Compe(torPricingComparison◦ ProductsinAustraliaaresoldroughly25%higherthantheproductinUS◦ E.gChanelCosme(cs
● CustomerPricing◦ Consumerpricesare11.35%higherthanUS◦ Apairofjeanscanreachuptomorethan70%higherthanUS◦ Summerdressinachainstorecanreach40%higherthanUS
41
Promo(on(Geocentric)-adapta(on● SaleSeason–Differentseason,
differentholiday● Theimageofouradver(sing-
shouldbemorelessfancyandhighquality● CollaboratewithlocalfamousBlogger/Vlogger
44
1. ChangeBrand/ProductLine2. ChangeProductLabels3. Higheduca(onemployee
Extendingourcurrentstrategy
1. Saleseason2. Theimageofadver(sing3. CollaboratewithBlogger
Adapta(onStrategies
45
● 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
49
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
50
Evalua(on● Sugges(onfeature(APP)
Sugges(onofsimilarproductsbasedonthepicture● Automatedsizesugges(on(Web/APP)
Sugges(ontherightsizewithmoreaccurateinforma(on● ProductVideo(Web)
Moreaccurateinforma(onofproducts
51
Purchase
Easy Process ● Exis(ngcustomers● Newcustomers● Paypalpayments
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
55
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!!”
56
57
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
salespriceperunit:$1,000variablecostperunit:$700contribu(onmarginperunit:$300expectedROI:20%expectedmonthlysaleunits:2400units*ROI=(300(margin)*2400(monthlyunits)-600,000(investment)/600,000(investment))*100=20%
60
EXPECTEDROI