Nordstrom's product strategy for wedding boutiques and informal dresses

Nordstrom Wedding

Product Strategy

Recently, Nordstrom's has been aggressively targeting the wedding and accessory business through: their new division Nordstrom Wedding. These are small bridal shops that have been placed within a number of the company's flag ship stores. Part of the reason for the interest in becoming involved in this segment, is because of the changes that have taken place in consumer demand. Where, many women are no longer interested in the formal wedding dresses of the past. Instead, they are more focused on what is known as informal wedding dresses. Simply put this when, the dress will not have as much material covering the bride's shoulders and arms. As these are made with lighter material and can be used for a host of occasions (such as various formals as well as cocktail parties). This is significant, because this shift is highlighting changes in consumer demand that are occurring. As many brides want to be able to select a dress that will match with their dream wedding, while being able to utilize it for a host of other events. (Xu, 2011) in an effort to respond to these changes that are occurring, Nordstrom's is opening their different wedding boutiques with the focusing on: offering consumers style and affordable prices. However, to determine if the new idea will be successful requires examining the product strategy of the company. To achieve this objective we will look at a number of different elements including: the product level, evolution, the product line and differentiation. Together, these various factors will provide the greatest insights, as to how the company can be able to achieve their strategic marketing goals.

Product Level

The basic product strategy for Nordstrom's moving forward is to be able to create a one a kind wedding boutique that will address the needs of consumers. Where, many brides have become increasingly concerned about the underlying costs of their wedding (thanks to the recession). At the same time, they are focused on wanting a more formal dress that can fit the style of host of different themed weddings (such as: a beach ceremony). ("Nordstrom Joins the Bridal Business," 2010) These two elements are important, because they are showing how a shift has occurred in the minds of consumers. As a result, Nordstrom's needs to be able to create a marketing strategy that will address these underlying issues. This can be accomplished through: focusing on providing a wide variety of designers at competitive prices. As a result, the company has recently been testing this strategy at its Chicago and San Antonio stores, which saw a 30% increase in same stores sales from taking this approach. This is important, because it shows how the underlying strategy that is being utilized by Nordstrom's, is helping them to create a unique product that is competitively priced. When you put these different elements together, they are highlighting how this kind strategy can: increase sales and help them to be able to create a unique brand. (Jones, 2010)

Evolution

The evolution of this industry has taken place, because of change in consumer tastes and a desire to have a dress that can be used on a variety of occasions. Part of the reason for this, is because these dresses have a number of advantages over formal gowns to include: they are affordable, can be utilized for a variety of events, they are comfortable and they look amazing. This is important, because it shows how a shift has occurred in consumers demand. (Xu, 2010)

Differentiation

To make themselves stand out in the minds of customers, Nordstrom's needs to be able to create a product that is competitive, while being one of a kind. To achieve this objective Nordstrom's has been creating their Wedding Suit. This is a one stop shop for a host of: bridal showers, rehearsals, weddings and honeymoon activities. As the company is offering consumers everything that they will need for their wedding ranging from: the various gowns to providing customers with numerous types of lingerie for the night of the honeymoon. This is important, because this one stop shop type of approach, is allowing Nordstrom's to be able to offer customers everything that they will need for their wedding (without the high prices of competitors). When you put these different elements together, this means that company is a creating a unique product that will allow the Wedding Shops to mirror many of the smaller boutiques that have become so popular. The biggest differences are: there is more of choice as far as the overall amount of products are concerned and there is that one a kind feel the moment someone enters the Wedding Shop. As they will forget that they are in the middle of a large retailer. Instead, they will feel as if they are at a small boutique that is affordable, with a wide variety of choices. This is important, because this is showing how this strategy is allowing the company to standout among competitors. (Brown, 2011)