Neiman Supply chain management

The supply chain management of a retailer is referring to management system that are bringing all the activities performed by supply chain members. At Neiman, they are using a system from Trade Beam that has lowered their overall shipping time an average to 1 to 2 days on shipment time. That is a significant saving especially for a consumer that relies a lot on air shipping. Neiman can now gets its fashion into their selling channel while they are in style. They are improving a lot of things so that they can be able to attend to the needs of their customers.

Neiman Marcus marketing channel

Marketing channel is very important to the business. At Neiman, they use direct marketing in accordance with other marketing channel. For example, Neiman is selling a luxury sheet on their website but they do not have that in the store. They do have a supply chain that gets the merchandise quickly to the web for their customer to have a wide selection of product. Neiman like many other retailers in marketing channel are performing a lot several functions like the flow of goods between the buyer and the producer.

Developing and Managing product

It is an important phase of the business because the retail need to know what they will need in their store. An example at Neiman was the introduction this month of a new product: "The Bergio Collection" but they are only trying them in two locations to see how it will do. Bergio is an upscale jewelry retailer. They sell their jewelry to over 150 independents stores in the US. Now they are been associated with Neiman Which is well known for Fine apparels. By associating Bergio with Neiman, They are expecting a name recognition because Neiman already have that name recognition. Bergio will be exposed to the rest of the world. Neiman are choosing to introduce the brand in two of their stores in their Jersey locations.

Developing and Managing products 2

The development of product at neiman is done through the designers that they are working with. They are working with various designers to accomplish that. Designers may make products that they believe will appeal to the customers at Neiman. The designers already know the type of clientele that shop at the store so they will make the products accordingly. Neiman is well know for their upscale merchandises.

Personal Selling

Personal selling is a type of marketing that involves directly a sales person and a customers. At Neiman, they have clientele with whom they do personal selling. Sometimes, people do come to the store and there are sales associate that follow them and try to help them with their purchase. the customer may tell you that they want like a gown for a wedding and the sales person may select some gowns some that they think they can sell to the person. It may be a particular designers or a color.

Sales Promotion

The economy is forcing many stores to go through some promotional sales. At Neiman, they are using sales promotion like the Midday Dash. They discount certain item at very low using the social media and the email to target customers. They only do it for a short period of time in the middle of the day. I think it is very effective because they discount the items. It may be something that you really wanted but you couldn't afford it and now you with the midday dash, you can. the holidays are approaching also and it will give people some ideas of gifts without going to the store. With this recession, many people can use every bit they can save. This is the way to go Neiman.

Public Relations

It is a very important phase in the marketing process. This is the Christmas book for Neiman for the year 2009. Every year, Neiman has a Christmas book that they have so their customer can buy gifts to send it to their love one. The prices are over the top. This year for example, the book features gifts that are less than $250 because of the economy. This year, Neiman will be donating $200,000 to a charity called first book( a charity that distributes books to needy children). The buyer will get to donate the books to kids in any chosen state. This is an example that Neiman is taking care of the community.

Advertising

This advertisement here is from Neiman Marcus where the product advertise here is Chanel. We know that Neiman is a specialty store so they have all these designers including Chanel. It is a very nice bag and the way the model is dress is very classy. The advertisement is a way for the company to sell their products. A well done advertisement is the key to bring people to buy the products that you are trying to sell. When you look at the advertisement here, you will want probably the whole thing if you are attracted by designers goods. Just take a look at the bag, it is very nice and I am pretty sure that anyone that can afford it will probably buy one because of the way it was advertise.

Pricing at Neiman Marcus

As we know about Neiman being a specialty store, we may have an idea about their prices by the type of people that shop there. Their merchandise is highly priced depending on the people that are shopping there. Different people equal different situations. They have outlet store that they call Last Call where you can find bargain sometimes compare to the actual store. You will find sunglasses from designers like: Gucci, Christian Dior, D&G for $99 at the last call but in the store you may spend like $200 to $300 for the same eyeglasses. Neiman sometimes goes on sale and you may find a bargain when they do which is not often. They have to pay for their luxury fixtures and the designers that they are getting the products from. They also sell furniture at very high prices. The last time that I was there about two weeks ago, they had a sofa for $2500 so i was asking myself about what was so special about the sofa but i guess it will be a bargain for someone else and also they have to pay for their venue and all the expenses related to their business so they have to keep their prices high.

Pricing at TJ Maxx

As an off-price retailer, TJ Maxx have low prices on their merchandises due to the facts that they have buyers that are travelling around the world to get them the best price possible on items that they have in their stores. Their buyers travel over 40 countries to get the bargains so they can bring it to us. Because they don't invest a lot of money in the fixtures of their stores, they can afford to price their merchandises at a low price. In some stores, they have what they call runway where they have all the expensive designers that you may find at Neiman or Saks for an affordable price. you can find designers like: Lamb, Coach, Gucci, D&G, Juicy couture and many more at unbelievable prices. TJ Maxx also owned distribution centers so they can process the merchandise quicker and bring it to the stores. You don't never have to wait for the sales because you already have a bargain. One thing that also motivate the designers to sell to the buyers is that they do not return the merchandise at the end of the season. All sales that they make with the buyer is final that is why we have clearance rack at TJ Maxx so you can even save more.

Retailing at Neiman Marcus

Neiman Marcus is a specialty store selling luxury goods. They have fined goods made by designers only to attract their wealthy clientele. Their prices are high depending on who is shopping there. The atmosphere in the store is very cozy. The customer service level is very high. they attend to all your needs, always asking the customers to make sure that you are finding the things that you are looking for. The stores have that expensive feel to it. they do return and refund items that you are not happy with. They have women, men, kids, shoes, handbags, jewelries, housewares stuffs. They sometimes have items on sale. Twice a year, they have big sales that they call women annual or men annual sales but from most of the time, they have racks in the store with items on sale.

Retailing at T.J. Maxx

T.J. Maxx is a chain of American department stores owned by the TJX companies. It is the largest off-price retailer in the US. All their merchandise is discounted from 20 to 60 percent off department price they say. It is not the same price that you will find in department stores. They have a wide variety of designer handbags when you first enter their store to attract the women. They have many section within: men , women, kids, housewares, jewelry and the one that I went to had a runway( which is a only a part that sells stuffs from well known designers). Their prices are very good. You can really catch a bargain there. I remember buying a pair of jeans( 7 for all mankind) for $59 when you can pay as much as $129 in other stores. they offer services like layaway. They have a 30 days policy for refunds with your original receipt. If you don't have a receipt, they will give you a store credit.You won't get the one on one customer services that you will get somewhere else. You cant really blame them because you are buying at low price so they have to cut down on services. Sometimes, you really have to dig the good stuffs that are hiding between the racks. For the bargain that you are getting, every bit of it is worth it.

Product Concept

Neiman is a retailer of specialty products. They have a lot of designers stuffs in their store like: Gucci, Prada, Christian Dior and many other more. They have different designers working for them in order to keep the high standard that they already have. They select good quality material and they have a brand that is exclusive only for Neiman which is the"NM". You can only find that brand in their stores.

Product Concept

Product concept is very important for Neiman Marcus. From the finest designers and luxury merchandise for men and women to precious jewelry, beauty and home decor, Neiman is offering to their customers, an irresistible array of choices. Neiman also values its customers so that is why they pay a lot of attention to the quality of their products. beside clothing, Neiman has some delicious that is served in their restaurants and cafe. Now at last, they shared their recipe worth like 50yrs of recipes in their new lavished illuminated cookbook.

Market Research

Neiman is planning to increase its market presence by opening some new stores in location of strategic importance. the company has open some stores and are planning to open some new one by 2010. Opening new stores increase the company customer's reach. Neiman Marcus offers a strong brand portfolio. The retailers offers private label and branded merchandise through its sale channel. The store offers apparel under the "Neiman Marcus" and "NM exclusive" or "NM private label". National brands can increase customer traffic due to brand recognition they possess in the market.

Market Research

Market research is as important as any other strategy in a business. For Neiman Marcus, it has been pretty difficult as the result of the current economy. Neiman came up with a solution for the holiday. As their catalog for Christmas is out, they have slashed prices on a lot their items so they can attract people back into their stores. The retailer is also asking their suppliers for more merchandise at lower price points. They have listed a lot of items for less than $250. The idea of course is to sell the dream, courtesy of Neiman and to link it with our rarefied fantasies. Even promotions are made differently. They are more targeted. for example, with the new concept that Neiman has called " Midday Dash" sales, launched this summer, alerts customers via email or facebook about deep discounts on selects items. They are only available online for a 2 to 3 hours window frame such as during the NFL Night Monday Football debut when people attracted to fashion may be watching. The CFO of Neiman (James E. Skinner) wont reveal the sales data but says that the results have been better than expected. the recession he says is forcing us to experiment.

Market Segmentation

The segmentation of a company can be done in many level. Geographic segmentation is very important for a business. At Neiman Marcus, they are very careful at choosing the venue for their stores. Neiman situates their stores at carefully choosing venues that cater to their targeted customers in major metropolitan market across the country and design the stores to provide a feeling of residential luxury by blending art and architectural details from the community in which they are located.

Market Segmentation

The success of a company is often based on the market segmentation. What I mean by that is that it is very important. Like at Neiman Marcus, we all know that the store is targeting the wealthy and the people who love to buy luxurious stuffs. Neiman Marcus is the most powerful name in luxury retail and major emporium of world-class luxury brand in the United States, making it an authority. Neiman incorporated is all about style and wealth. It is known for their distinctive merchandise and quality service, servicing the wealthy with confidence and confidentiality. Neiman differentiate its offering from its competitors through both exclusive purchases from core vendors and new emerging designers. Neiman has relationship with well know American and International fashion houses to supply its customer with the best, latest and the most original merchandise in the business. Both segment have their own unique market position and value-creating strategies. Neiman is definitely the ultimate place for higher class citizen to shop, relax and feel secure.

Business Marketing

Like any business, Neiman has a business marketing. I will take the example of their credit cards with HSBC. Neiman sold their card business to HSBC in 2005. This is a business dealing with another business. Neiman ended up suing HSBC over fees and interest rates in 2008. The lawsuit was settled in May 2008. They sold that business to the bank so they can make some type of profit with it. Another company also that Neiman dealt with was SONY. Both companies entered an agreement where Sony was going to be the exclusive provider of electronics made available to Neiman Marcus InCircle Reward Program Members. The Neiman Marcus reward program cater to some of the world discerning customer of luxury goods. A business can have their marketing on every level. That is why we have all type of marketing division.

Consumer Decision Making

This is critical to any business. It is very important to know what your consumer are attracted to. Meaningful consumer experiences are based on the relationship between brands and products. Brands can increase the value of the products and the services of a company. For the case here, Neiman Marcus is appealing to people that love brand name stuffs. They sell so many designer brands like: Gucci, Prada, Lamb, 7 for all mankind and many more. By offering a variety of designer items, they are satisfying the needs of their consumers. One of their targeted market was with the teenagers. Neiman should definitely target the young market. They have now a market for the teenagers. The plan will be to attract , acquire the shoppers and keep them for a lifetime. By doing so they are making sure that the parents are pleased and they are bringing their children along. In this process the marketing team will be involved so they can attend to the needs of their customers.

Global Marketing

One of the weakness that Neiman Marcus have is that they do not have a single location overseas. Even tough you can shop online which will be considered a global market anyway, they will have to look at that aspect also. This is a definite negative for the company as a presence in other countries would expand their affluent clientele and increase their revenue. A major objective of Neiman Marcus in this area will be store expansion overseas. They are dedicated to store growth especially into the new markets both domestically and abroad. Analysis has indicated several locations in Asia, the middle East and Europe that will be beneficial for them and once they meet their commitment domestically, they will start expanding globally to match and get ahead of their competitor Saks Fifth Avenue which currently hold a store in Saudi Arabia. By the year 2010, the group wants to have a least 5 stores overseas. This will be their main target in this area but if they can open more, it will be more revenue into their packet.

Global Marketing

Neiman Marcus Operations overseas is not far-fetched. It is well known, world class brand. It is very complicated to open a store overseas. It will be best by licensing, the kind of thing that Saks is doing said Traub (former Bloomingdale's chairman). Licensing is not lucrative. It is difficult to make a major difference in earnings per share. the bigger advantage is the international exposure it provides. Past management of the retailers have examine foreign cities for possible Neiman Marcus and Bergdorf Goodman units. Asia seems more likely for Neiman Marcus than Europe said the retail source. One reason is that Taubman Centers is forming Taubman Asia to develop shopping centers in the Asia Pacific regions. Five of the 22 Taubman regional centers in the US house Neiman Marcus units and 3 have Neiman's outlet currently known as Last Call.

Marketing Environment

As the result of our current economy, many stores are struggling and Neiman Marcus is no different. In August 2009, the company reported a loss of nearly 170 millions for its 4Th quarter as consumers continue to cut back on high end purchases and the company itself suffer from a large debt burden. Neiman like many other luxury retailers was struck by the economy downturn forcing the company to cut down on his workforce and reduce inventories severely. Neiman said that it has made progress in restoring its balance sheet and position itself for the current environment. The company ended his fiscal year with 323 millions in cash, up by 84 millions a year ago. Inventory level, a sign of retail management, were down 23% from a year ago. the company also said that it was trying to bring in more value oriented items in order to meet customers needs. I am confident the significant actions we have taken combined with our outstanding customer relationships and the strenght of our marketing initiative, will position us well for the new year, said Burton Tansky, chairman and CEO of Neiman Marcus.

Neiman Marcus Social responsability and ethics

The Neiman Marcus group extend their benefit far beyond their customer and their employees. It participate actively in promoting and promote charitable events in the communities. Neiman Marcus discovered that accepting social responsibility was simply good business. The store has a review board that analyze all requests for support from organization around the country and then attempts to donate to a variety of different organizations. The objective is to support those causes that affect the most customers. Beneficiary have included art, civic, educational and health related organizations. One the cause in which the store has been involved is AIDS. It is a disease that have impacted our community for more than 10 years. It hasn't only impacted Neiman Marcus but it has impacted all the retail store across the country. It impacted our resources, our designers and also our advertising designers. This was something that was very important to their employees as well as their customers. Neiman Marcus has been involved with that cause for sometimes now. It is a very important cause for us. Neiman's funding for charity is generated in a number of ways including donating portion of the proceeds from numerous fashion events and sales of products such as cookbooks, candies and certain fashion collections such as its 50 Against One accessory collection.

The Neiman Marcus group has a strong commitment to compliance with the legal requirement that apply to our business and the product that we sell. One unwavering rules lies at the core of Neiman Marcus group business philosophy: we will conduct our business in strictly compliance with both the letter and the spirit of the law and with a scrupulous commitment to the highest standard of ethics. To this end, Neiman Marcus Group has developed a program of US custom and other government agency compliance that provides strict guidelines for those doing business with Neiman Marcus group including our agents and the manufacturers and the suppliers of the goods that we buy. As a condition of doing business with them, manufacturers and suppliers must agree to comply with all applicable laws and regulations including those related to the manufacture and distribution of product sold to consumers in the United States. Our contract also require all suppliers to impose this same obligation to their contractors. In addition, The group also require its vendors to abide by this standard corporate policy and code of conduct related to labor and employment practices. The group believe our customer can have confidence that merchandise manufactured in compliance with these standards is not produced under exploitative or inhumane conditions

Marketing planning

This area is very important. Let's take an example here, when teenager are looking for clothing, they are looking for what is popular, currently in fashion and cutting edges. The marketing team will then need to develop a campaign built around the labels and build a vehicle that will be the revenue driver. They need to find solution that will help them penetrate the youth market. By also doing so, they will have to keep in mind the cost of the merchandise without blowing the image of the store because remember that Neiman Marcus is an upscale store. The marketing will be responsible for keeping that image up without being very costly. They will also target family oriented neighborhood. In order to accomplish this goal they will have to work closely with the management and finance team so they can be able to project their new sale.

Stategic Planning

Neiman Marcus patriarch Herbert Marcus Sr. espoused a management philosophythat he instilled in his children and continues to direct the store management even today. "Its never a good sale for Neiman Marcus unless it is a good buy for the customers". It continues to be at the forefront of higher department stores. To approach the strategic planning of Neiman Marcus, i will be talking first about their Grand strategy which plays an important part in their strategic plan. The main objective of the store is to change the image as a store as the young market will be appealing by applying a business model based on a clear and consistent strategy brand positioning. The grand strategy needs to focus on all the major areas of the strategy planning in order to identified opportunity that appealed to the younger market.The store is knowledgeable that they need to grow in this area and by doing it, they can achieve market growth. The main market that need this growth is the affluent market. What I mean by that is somewhere that have an abundance of spending cash and a discerning audience. At this time, the company is receiving less than 3% of its revenue from the 15-30 years old market mostly due to the fact that the store is flagged as the stores of our " parents and grandparents". This perspective has to change. The belief is that with a good marketing plan and the right product and merchandising campaign, they will be able to tackle the problem and be competent.

The Current Status of Neiman Marcus

Current status of Neiman Marcus

With this economy, stores have suffered and Neiman Marcus is no different. Sale has fallen 16.6 percent in the most recent 4 weeks period ending August 29. The company stores open for 12 months or more fell to 237 millions from 284 millions. Neiman Marcus posted a total sale of 241 millions foe August down from 285 millions in August last year. The strongest sale area included ladies shoes, precious jewelry, beauty product and couture. In June, the company reported a net loss of 3.1 millions for the 3rd quarter. revenue for the quarter hit 810.1 millions which was down 1.06 billion in the 3rd quarter last year.

The History of Neiman Marcus

The company that I am choosing for my Project is Neiman Marcus. I like the store and I do shop there so It is going to be interesting for me to do some research on them also. Neiman Marcus was founded in 1987 in connection of restructuring of Carter Hawley Hale stores, inc. They have been around for more than a century. They are specialize in the sale of luxury goods. The Neiman Marcus group have specialty retail store division: Neiman Marcus stores and the Bergdorf Goodman stores. They also have a direct marketing division which is the Neiman Marcus direct. This luxury store offers upscale assortments of apparels, accessories, jewelry, beauty and home decor products. The Neiman Marcus group has 40 Neiman Marcus stores across the United States ,2 Bergdorf Goodman stores in Manhattan and 25 last call centers.