Nordstrom Mobile Checkout Initiative by Shaniya Shabrach-Ortiz

Mobile Checkout Initiative

TABLE OF CONTENTS Arthur, Rachel. "The Automated Future Of The Fashion Store: Where Self-Checkouts And Human Touch Collide."

Forbes. Forbes Magazine, 01 Feb. 2017. Web. 28 May 2017. COMPANY OVERVIEW 4 "Customer proﬁle Nordstrom's Fans Interests & Passions." Nordstrom Customer proﬁle. N.p., n.d. Web. 28 May 2017. Eileen, Isabella. "Nordstrom's Target Market (with images) · inothstine." Storify. N.p., n.d. Web. 28 May 2017. CURRENT TARGET CONSUMER 20 "Get insider info about Nordstrom competitors and the key people involved." Spiderbook. N.p., n.d. Web. 28 May 2017. Intelligence, BI. "Nordstrom's impressive online sales." Business Insider. Business Insider, 27 Feb. 2017. Web. 28 "No

OMNI May 2017. CHANNEL AUDIT

Investopedia. "Who are Nordstrom's (JWN) main competitors?" Investopedia. N.p., 22 May 2015. Web. 28 May 2017.

STRATEGIC INITIATIVE 26 Murphy, Ian P. "Nordstrom debuts ﬁrst TV ad since 2013." Retail Dive. N.p., 09 Feb. 2016. Web. 28 May 2017. "News Release." Nordstrom Fourth Quarter and Fiscal 2016 Earnings Exceeded Expectations - Investor Relations Nordstrom.com. N.p., n.d. Web. 28 May 2017.

"No "Nordstrom Company Summary." D&B Login. N.p., n.d. Web. 28 May 2017. VISUALIZATION "Nordstrom Inc." MarketWatch. N.p., n.d. Web. 28 May 2017.

"Nordstrom Online & In Store: Shoes, Jewelry, Clothing, Makeup, Dresses." Nordstrom. N.p., n.d. Web. 28 May

2017. MARKET ANALYSIS "Nordstrom, Inc. (JWN) Ownership Summary." NASDAQ.com. N.p., n.d. Web. 28 May 2017.

"Nordstrom, Inc.|Company Proﬁle." Vault. N.p., n.d. Web. 28 May 2017. O'Donnell, Jayne. "Line cutting: Mobile checkout headed to a store near you." USA Today. Gannett Satellite cu PROPOSED TARGET CONSUMER 34 Information Network, 24 July 2012. Web. 28 May 2017. Peterson, Eric. "Adding up checkout technology's costs, beneﬁts." New Hope Network. N.p., 17 July 2016. Web. 28 May 2017.

PROPOSED COMMUNICATION & N.p., n.d. Web. 28 May "QueueHop | Retail Mobile Self-Checkout." QueueHop | Retail Mobile Self-Checkout. 2017. PROMOTIONAL PLAN 36 "Saks, Nordstrom target millennial consumers." CP24. N.p., 11 Mar. 2016. Web. 28 May 2017. B Strijbos, Bram. "Global fashion industry statistics - International apparel." Fashionunited. N.p., n.d. Web. 28 May 2017. FINANCIAL PLAN "The New Era of Retail - With QueueHop." YouTube. YouTube, 12 Sept. 2016. Web. 28 May 2017.

Toplin, Jaime. "How retailers and tech giants are pushing consumers to do more of their spending on smartphones." Business Insider. Business Insider, 23 Apr. 2016. Web. 28 May 2017.

CONCLUSION Tu, Janet I. "Nordstrom's results highlight 'a company of two halves'" The Seattle Times. The Seattle Times 40 Company, 23 Feb. 2017. Web. 28 May 2017.

BIBLIOGRPAHY 42

EXECUTIVE SUMMARY For Nordstrom, we have implemented a new strategic initiative that will not only enhance customer’s in-store experience but it will also make it much easier for our customers to shop. Implementing an app that allows consumers to quickly scan products and immediately purchase them on their smartphones will ease their shopping experience as well as increase customer engagement with Nordstrom’s app. This initiative is comprised of the QueueHop technology which allows consumers to ﬁnd additional product information on the products they are purchasing in addition to prevent them from waiting in a checkout line. We plan to ﬁrst integrate this strategic initiative in the women’s contemporary and accessories section at our Seattle, Washington corporate location which happens to be one of the largest metropolitan areas in the world. This implementation will give us the competitive advantage we need in order to differentiate ourselves from our competitors.

â&#x20AC;&#x153;Offer the customer the best service, selection, quality, and value.â&#x20AC;? -John W. Nordstrom

HISTORY As a 16 year old immigrant from Sweden, John Nordstrom embarked to Alaska to find gold. After garnering a $13,000 stake he was offered a partnership in a shoe store by Carl Wallin, a shoemaker he met during his time in Alaska. In 1901, this pair opened their first store located on Fourth and Pike in Seattle. By 1929 both Carl and John had sold the company to Nordstrom’s three sons. By 1963 the original location had become the largest shoe store in the country and the Nordstrom sons decided to venture into women’s apparel through acquiring Seattle based company Best’s Apparel. It was in 1998 that Nordstrom opened its ecommerce website up for business. Nordstrom led the ecommerce revolution by having the most efficient inventory management and order fulfillment capabilities within the industry. In the years following Nordstrom focused on shipping abroad and now serves over 96 countries. The company continues to improve this experience through consistently updating website functionalities, adding their mobile shopping app, and offering of free shipping and returns within the US. Another rich part of Nordstrom’s history is its amazing partnerships. In the early 2000’s Nordstrom owned Faconnable, an upscale European apparel company as well as purchased a large part of interest in Jeffrey, two high-end boutiques located in Atlanta and New York City. In 2011 Nordstrom acquired HauteLook, an online platform for discounted items. Three years later in 2014, Nordstrom purchased Trunk Club, a personalized styling service and clothing line operating both online and its 7 clubhouses. Within the same year Nordstrom expanded its brick and mortar internationally, opening up its first stores in Canada and Puerto Rico. Today Nordstrom is still family owned with three Nordstrom’s serving as co presidents and managing the brand along with their executive team. From its roots as a small shoe shop, Nordstrom has grown into one of the largest retailers of shoes, accessories, apparel, and services always aiming at giving the customer the best possible shopping experience.

CURRENT OWNERSHIP While under ownership of the third generation of Nordstrom men the company went public in 1978. During this time Nordstrom was ofﬁcially renamed Nordstrom, Inc. Currently Blak, Peter and Erik Nordstrom are the co-presidents of Nordstrom, Inc. and continue to manage the company along side their executive team.

CURRENT REVENUE By the end of ﬁscal year 2016 Nordstrom had brought in a total company net sales of $14.5 billion which is a 2.9% increase from the $14.1 billion at the end of ﬁscal year 2015.

FUTURE GROWTH Nordstrom plans to open 23 more Nordstrom Rack’s by the end of 2019 while relocating at least four of their stores during that time. They will also open at least four full-line stores one being their new ﬂagship store in Manhattan which has two opening dates. The Men’s department is scheduled to open during 2018 while the rest is expected to be done during 2019.

SWOT ANALYSIS Overall Nordstrom is doing a great job connecting with its customers and providing services that cater to their needs. They have a strong presence in the luxury market offering many enticing products and brands. As ecommerce becomes more prevalent, it is becoming increasingly necessary for retailers to incorporate technology into the brick and mortar experience. In order to continue this success we believe that there is an opportunity to implement technology in a way that continues to serve the customers providing efďŹ ciency and ease into their experience.

STRENGTHS

OPPORTUNITIES

Strong portfolio of brands

Demand for private label

Private label

Growth through e-commerce

Operational Network

Store expansions

Diversity amongst store divisions

Technology growth

Loyalty to customers Ease of return

WEAKNESSES

THREATS

Higher operating cost

Competitive environment

Return policy abuse

Increase in counterfeit products Changing consumer preferences

MARKET POSITIONING Nordstrom has many competitors within the department store division however when it comes to technology and fashion a few hit closer to home than others. Neiman Marcus, Net-A-Porter and Amazon have all been leaders as far as implementing technology into the world of fashion retail. Nordstrom is positioned in an advantageous spot as far as better accessibility compared to other luxury department retailers. Increasing use of technology within the context of brick and mortar will help Nordstrom to create a more seamless experience between its online and brick and mortar stores. Luxury fashion overall is currently valued at $339.4 billion.

CURRENT PLACEMENT Nordstrom has a presence nationwide with 344 stores, 117 being full-line stores as well as outlets and other investments. This places Nordstrom in a great position as it reaches many different platforms and types of customers.

117 full-line stores 216 Nordstrom Racks 5 Canada full line stores 7 Trunk Club Clubhouses

2 Jeffrey Boutiques 2 Last Chance stores Hautelook.com Nordstrom.com

SALES VOLUME BY CHANNEL During the fourth quarter of fiscal year 2016 Nordstrom’s reported earnings that exceeded expectations. The total company net sales were $14.5 billion at the end of fiscal year 2016 which was a 2.9% increase compared to fiscal year 2015 of $14.1 billion. Ecommerce accommodated 25% of total net sales for fiscal year 2016 bringing in over $2.5 billion.

DISTRIBUTION MODELS Nordstrom has set up a couple of joint ventures within the past 5 years. Their ﬁrst was with Topshop in 2012. They offered a broad selection of Topshop and Topman merchandise sold in 14 Nordstrom stores across the United States, from Austin, Texas, to San Jose, California, as well as on Nordstrom's website. An average 4,000 square feet of space was devoted to Topshop/Topman merchandise, also including exclusive product in each store. A joint venture ventu with Bonobos also started later that same year in 2012. Nordstrom started carrying their top two product lines: the best-selling Washed Chinos in core khaki and colorful spring colors, and the Bonobos Weekday Warriors, a collection of non-iron cotton trousers. In addition, some seasonal pants and shorts were offered at select stores and online. The brand launched at 20 of Nordstrom full-line stores and within the Men's Shop on Nordstrom.com. In 2014, they started a joint venture with BaubleBar, an affordable jewelry line. The partnership allowed Nordstrom to appeal to a younger shopper thus extending their target customer into a new sector. Their initiatives were to expand its customer base outside of the traditional luxury shopper and the line was available in 35 stores across the country as well as on Nordstrom’s website. Their most recent venture was in March of 2017 with Black Tux. Black Tux will have an exclusive retail partnership with Nordstrom as well as the open six shop-in-shop showrooms in select Nordstrom stores across the United States. All of the shop-in-shops will feature Black Tux's two-button notch lapel tuxedo in black and their one-button peak lapel tuxedo in midnight blue, which will be available for customers to try-on in store. The new service combines ease with expert tailoring and styling, all in one place. Their goal is to bridge the convenience of the digital world to their physical stores.

COMMUNICATION & PROMOTIONS Nordstrom uses several different strategies to satisfy customers which includes providing a personalized shopping experience, fashion rewards, store cards, and incorporating technology such as their new ordering system, Nordstrom’s program book, and their emails list. Overall last year (2016), Nordstorm spent 227 million dollars on advertising.

FASHION REWARDS & STORE CARDS Nordstrom uses several store benefits to help keep consumers loyal to the store as well as tracking their spending and encouraging future spending. In order to reap the benefits of a Fashion Rewards card, a consumer must link their debit card to the Nordstrom card and from there their spending is tracked. The Fashion Rewards program gives customers two points per every dollar spent and once a customer attains 2,000 points, they will receive $20. Store Sto cards work a little differently as it is the customer’s own personal credit card that can be used to also reap store benefits such as gaining early entry into the store’s pre-Anniversary sale that is held every summer. In addition, customers can become a part of the store’s fashion hotline as well to receive great sales for special occasions. Whether a Nordstrom customer signs up for the Fashion Rewards Program or just the store card, customers will get advertisements and promotional discounts that are catered directly to their interests and tastes.

ORDERING SYSTEM Every brick and mortar store that Nordstrom operates has a implemented an ordering system. This company wide ordering system enables consumers to search and purchase items even if the item is not in stock. These items may be ordered from any Nordstrom retail store that has the same item in stock. Once a customer has used this for the ﬁrst time, the ordering system immediately tracks consumer’s names, phone numbers, home addresses, and other personal information so that both the customers and the company will always have a record of those transactions. Nordstrom also uses this information to offer those customers future promotions that may be similar to an item they purchased.

PERSONAL BOOK Nordstrom stores all customer personal information into what they call a Personal Book. The Personal Book is a digital directory that includes all past Nordstrom customer’s information and shopping history. Examples of what you can expect from the Personal Book are personal notes on a customer’s birthday or digital thank-you cards for a previous purchase.

EMAIL LIST Nordstrom also gives customers the option to join an email list in which they can gain early exclusive access to sales as well as keep up to date on current promotions and product offering. A customer may opt to join the Nordstrom email list when you purchase something in person or online. These email lists are also used to send personalized advertisements that are based on your previous buying history.

TV ADVERTISEMENTS As of February 2016, Nordstrom began running its ﬁrst television ad in three years as part of the “See Anew” campaign promoting its spring collections. This advertisement consisted of an energetic, kaleidoscopic ad that was intended to reach younger consumers, a goal that the chain has achieved successfully in recent years. Thirty and 15-second spots began airing in four markets along with digital, social, and print components to follow shortly. During the last three months of 2015, Nordstrom’s annual revenue reached $3.2 billion in sales which was a 6.6% increase from the previous year. In addition, Nordstrom has a YouTube channel of about 35,000 subscribers.

CURRENT TARGET CONSUMER Nordstroms customers are men and women ages 18-49, ranging from a middle to high-end shopper, with a salary over $60,000. Within that scope, millennials are also a huge area of interest with room to grow. 58% of surveyed millennials prefer unique goods over mass-produced, up 13% in just two years. With e-commerce and Nordstrom Rack estimated to produce over 50% of revenue going forward, millennials are sought after for their ability to stay well informed about online products and upcoming details. Within Nordstrom customers, 30% of consumers have no higher education, 20% have some college and 19% have graduated college. They also love socializing and interacting with other, whether it's going out with friends or attending charity events. Their customers are very loyal and globally aware. Facebook, Instagram, and Twitter are the top social media platforms they use. They care more about investments and valuing the craftsmanship of a product. They are willing to spend a lot because they do appreciate that high quality.

MCKENZIE DAVENPORT McKenzie is a 26 year old VP of Marketing. Her salary is $120,000 a year and she drives a Porsche Cayman. She enjoys early morning yoga sessions before work and grabbing martinis with friends on the weekend. You’ll always catch her with an apple martini in her hand. Her favorite thing about Nordstrom is their joint venture with Shoes of Prey. She is able to customize her shoes to match all of her outﬁts. She typically purchases only a few items at a time, so she loves utilizing their scan and go app. It makes checking out easy and quick.

ANDREA WALTON Andrea is a 35 year old entrepreneur and started her own interior design ﬁrm 3 years ago. Her salary is $90,000 and she drives a BMW 330i. In her free time, she enjoys walking her Pomeranian Daisy and going to the gym. Due to her busy lifestyle, Andrea doesn’t have time to go and shop for clothes. She uses Nordstrom's personal shopper service to pick out all of her outﬁts, as well, as their scan and go function. This allows her to avoid the long checkout lines.

OMNI-CHANNEL AUDIT Nordstrom incorporates a vast range of platforms in order to sell product making them easily accessible to their customers. These channels include brick and mortar stores, an ecommerce website, an application for mcommerce, and the online platform Wanelo. Nordstrom is focused on reaching their customer wherever they may be and does a good job of incorporating a good variety of platforms in order to do so. Each section is compared with their two biggest competitors: Neiman Marcus and Saks Fifth Avenue.

BRICK & MORTAR Nordstrom has 349 stores (including joint ventures) spread across 40 different states as well as Canada, and Puerto Rico. The store is beginning to have a more global presence and plans to move into more countries within the next few years. Neiman Marcus has only 42 stores and is only located within the United States. Saks Fifth Avenue has 156 stores total and has a presence in four other countries including Canada, Kazakhstan, Mexico and Puerto Rico. Overall Nordstrom compares nicely with the amount of stores and locations as its main competitors.

E-COMMERCE Nordstrom.com accounted for approximately 25% of the company's full-priced sales. They include international shipping to every country partnered with a company called Borderfree. All shipping fees, tariffs and taxes are handled through Borderfree and the customer receives a guaranteed exchange rate during checkout. Neiman Marcus offers a similar way of shipping internationally however Saks Fifth Avenue only offers shipping to a few global locations. Nordstrom recently cut supply costs by adding an East Coast distribution center which has also helped to reduce delivery times and prices for customers. They have a total of 4 fulďŹ llment/distribution centers making shipping times quick and efďŹ cient for prime customer satisfaction. e

M-COMMERCE Last year Nordstrom added a few additional features to their mobile app including a visual search function that allows customers to scan an item in order to look it up as well as allowing customers to reserve items to try on later in the store through the app. Neiman Marcus is keeping up as they have recently added a feature where customers may contact a local associate by department through email, text, phone, and even FaceTime. Saks Fifth Avenue has an app that is easier to navigate than both Nordstrom and Neiman Marcus, but is not as up to date with high tech features. Overall Nordstrom could update their app to be easier to use but they do a great job of staying up to date on the latest featured technology.

WANELO Wanelo is online selling platform similar to Pinterest where users can save certain looks into different categories. Unlike Pinterest users do this for the sole purpose of purchasing which can be completed on the site. Nordstrom has an amazing following with over 1.5 million followers, 134.9 thousand products, and 16 different collections. Both Neiman Marcus and Saks Fifth Avenue do not even come close to Nordstromâ&#x20AC;&#x2122;s success on this platform as they only have about 160 thousand followers each.

SOCIAL MEDIA AUDIT Nordstrom has a strong social media presence not only showing up on multiple platforms, but also creating strong content for each speciďŹ c site. Nordstromâ&#x20AC;&#x2122;s three strongest platforms include Instagram, Facebook, and Pinterest. Nordstrom is successful in curating a strong brand image by consistently generating a genuine connection with its consumers. As the genuine nature of their media improves so will the long term success of the brand.

4.4M followers

759K followers

2.5M followers

35K subscribers

4.5M followers

238K followers

AVG 115 comments

236K followers

INSTAGRAM Nordstrom does an extremely great job of not only having beautiful product shots but also curating a lifestyle through its Instagram. Although captions could be a bit more personal, the content is visually appealing creating a desire for customers to follow the brand. Nordstrom does an amazing job of replying to commenters and staying both relevant and consistent with posts.

FACEBOOK Nordstrom does an exceptional job on their Facebook with posting regularly sometimes up to 3 times a day as well as posting relevant content. For example this past Mother’s Day they shared quick precious moment of a mother with her son and it received a lot of engagement. They are also quick to respond to customers questions and comments which helps build loyalty and trust.

PINTEREST Nordstrom’s Pinterest is ﬁlled with great boards and fun ideas. With over 4.5 million followers its clear to see that they are utilizing the platform to a high potential. They curate helpful boards for every category a customer could want such as boards for different collections, holiday themed boards like “stocking stuffers”, their favorite picks, and even themes such as “nautical” or “throwback”. Nordstrom’s Pinterest has a lot of personality and it serves its main purpose of connecting with consumers very well.

STRATEGIC INITIATIVE The proposed strategic initiative for Nordstrom involves implementing a new feature on the mobile application which will allow customers to scan an item, pay through the app and unlock the item at an “unlocking kiosk”. Once these quick steps have been completed the customer may then simply walk out of the store with their merchandise. This allows the customer immediacy and hassle free purchases especially when they only want a small amount of items. Beginning with accessories and women’s contemporary this technology will be tested and shown to increase customer satisfaction. The technology can then quickly be implemented to all items and categories within the store.

KEY OBJECTIVES & RATIONALE This new initiative has four distinct objectives for Nordstrom including increase of customer satisfaction, to accelerate the brand’s image as an innovator, to increase daily sales, and free associates to perform more personable tasks around the store besides checking customers out . This initiative will make the checkout process more efficient therefore serving customers who have a small shopping cart and desire to get in and out of the store quickly. As Nordstrom will be one of the first department stores to implement such a relevant and current technology the brand will be seen as innovative. This initiative has the potential to increase daily sales as it allows the customers on a time crunch to get the items they need without having to wait. And finally employees may have more time to assist customers that need help instead of being stuck behind a cash wrap.

TECHNOLOGY & VENDOR The technology that will be used to create the mobile checkout feature on the Nordstrom app is called QueueHop and is made by the company Trust Tag. QueueHop involves the QR (quick response) code scanner as well as the unlocking kiosk for items with sensors to be removed after payment. Customers will simply pay through the app as if it was an online purchase.

JUSTIFICATION Nordstrom will be addressing both current industry trends and trending consumer behavior. It will address the millennial customer and their desire for immediacy which aligns with the new target segment that Nordstrom is focusing on. Not only will this attract a new type of customer but will serve current customers through efﬁciency. Another recent demand for the industry is for retail stores to create a seamless experience from online to brick and mortar. This initiative will address this by integrating the mobile app into the customer’s brick and mortar shopping experience. As for recent consumer behavior it is clear that consumers are now the ones inﬂuencing fashion retailers rather than the other way around. This new found control of the consumer will be further catered to as they will be able to control their entire experience from browsing to checking out.

LONG TERM BENEFITS Our initiative will include increased customer satisfaction, an increased awareness of Nordstrom’s innovation, and a higher amount of sales possible leading to higher earned revenue. This all aligns with Nordstrom’s core mission to serve the customer before anything else.

IMPLEMENTATION QueueHop will take approximately six hours to install throughout the store. The main installation time will come from installing the security tag removers. The installers from QueueHop will be conducting training for our employees. We will spend about two weeks on training as it will have to be done outside of regular working schedules and will have to be broken up into segments so that all of our employees will have adequate one on one time to ask any questions and be prepared to help our customers.

VISUALIZATION Once the customer scans an item it will appear on the app with a picture, detailed description, and price. From there the customer may choose add to bag or ship to me. Add to bag will allow the customer to buy the item and walk out with it in store and ship to me will be the same as purchasing the item online. Once all desired items have been scanned and placed into the shopping bag the customer may review their subtotal and click proceed to checkout when ready.

Next, customers will be able to input their payment information or choose a pre-saved payment option. They may also add their Nordstrom Rewards card in order to receive points. This screen will show the total including tax. Once the customer has paid and hit place order they will be directed to the ďŹ nal screen thanking them for the purchase and directing them to visit the nearest unlocking kiosk to remove all sensors. After this they are free to leave the store with their items.

TECHNOLOGY & USE Below is a visual of what the scanning technology as well as the unlocking kiosk will look like. Consumers will be able to follow these four easy steps to successfully complete mobile checkout.

INSTAGRAM ADVERTISEMENT Instagram will be one of the main platforms used for advertisement. Below is an example of a teaser post we will release the month before our launch date.

MARKET ANALYSIS The US Luxury apparel and accessories industry has grown extensively over the past years and it is expected to grow even more. As of 2015, the global luxury goods market was valued at $224 billion. In addition, the average US apparel market was valued at $359 billion and is expected to grow to $385 billion by 2025. Regarding different terms of luxury market segments, the largest market is the accessory market at 29%, followed closely by the Rega apparel market at 25%. The beauty segment makes up 22%, while other luxury segments make up 20%. All other types jointly account for 4% of the sector. In terms of which segment have the most growth, accessories seem the most promising due to their consistency of growth over the last couple of years. For example, the accessory market reached a CAGR of 11% from the course of 2010-2014. It has remained at 4% since 2014, which is more than this marketâ&#x20AC;&#x2122;s average.

LONG TERM SUCCESS Nordstrom will be staying true to customer loyalty as well as making it easier for their consumers to shop. As long as Nordstrom continues to stay on top of trend as well as remain innovative in how they are promoting their products, they will remain on or above the same playing ďŹ eld of their competitors.

COMPETITION The population of Seattle, Washington is around 670,000 people; this is one of the largest metropolitan areas in the world. As of 2017, there are ﬁve Nordstrom stores in Seattle, Washington - three of them being Nordstrom Rack and a total of 11 Nordstrom stores all over Washington. Other top competitors that are implementing a similar strategic initiative include Neiman Marcus, JcPenney, Amazon Go, Costco, and Sam’s Club. However, only Neiman Marcus is a top luxury competitor because they have already implemented the use of smart mirrors. They are implementing new technology that is sure to attract more attention due to its ease of shopping and reduced timing of trying on clothes. Although Amazon Go and Sam’s Club are not considered luxury markets, they also have similar check-out methods which are created to ease checkout. For Amazon Go, a customer does not have to scan anything since it immediately detects your billing information and remembers this every time. Customers can just walk right in and then walk right out with their products. However, Sam’s Club experience isn’t as seamless. It is the next best solution, considering all customers have to do is scan the product with the app on their smartphones, and then give this code to the cashier. In addition, Apple has smart pay which allows their customers to easily pay with their debit and credit cards with just a touch. Not only can this be done in a matter of seconds, but Apple Pay can also be done from an Apple phone, an Apple watch, or an Apple computer, tablet, or laptop. As far as future competition, Rebecca Minkoff is already implementing this same technology. Even though Nordstrom has hundreds of designers, she can be considered a real threat in the luxury market in the next couple of years. JcPenney is another company that could be a direct threat to Nordstrom because their mission is to have sales associates use iPad touch screen devices as well as self-checkout kiosks in their store to help speed the checkout process. Regardless of whether or not these companies are already implementing these strategies, they could easily do so once they get the funds. This would immediately increase our competition. For example, Amazon is very competitive because of it's “One Click” and “Buy Now” purchasing capabilities. Customers could easily ﬁnd about 1/3 of the products offered at Nordstrom, for either the same or a cheaper price from the comfort of their home. In addition, Amazon is the second fastest and largest growing retailer followed closely after Wal-mart.

PROPOSED TARGET CONSUMER Our proposed target consumer for mobile checkout is a little different than Nordstroms overall customer in that it will target tech savvy millennials who desire immediacy. This is still relevant to Nordstrom’s overall target market as it provides ease for any type of customer but it also caters to millennials because it is technologically advanced and is offered through their mobile device. The ease of online shopping which is so popular with the new generation is now paired with the convenience of still being able to touch, feel and try on items.

JESSICA BROOKS Our proposed customer proﬁle is recent college graduate Jessica Brooks. She is a 23 year old nurse. When she's not working, she loves fashion blogging. Her salary is $50,000 and she drives a sunshine yellow Fiat. In her free time she loves cuddling up with her kitten Mia and ﬁnding cute coffee shops to write in. Jessica isn’t the typically Nordstrom customer, but she loves shopping for accessories at Nordstrom. Her favorite brand that they ac carry is BaubleBar. Nordstrom’s new technology makes it easy for Jessica to buy accessories and head back to the hospital before her lunch break ends.

COMMUNICATION & PROMOTIONAL PLAN Our communication and promotional plan is a 10 month activity plan starting in mid 2018 and ending in 2019. Our market research will begin in May and be completed by August giving us plenty of time to be sure we have stressed all of our options. The development will start in June until October while sourcing for our technology will begin in June and last until August. We allotted 4 months for our technology implementation; August through November seeing as this not only ecompasses the actual installation of the technology but also training for all Nordstrom employees. The promotion of our technology will start in October and run through January. The promotion is divided into three parts: pre launch, launch, and post launch. We will be promoting on our social media platforms speciďŹ cally, Facebook, Twitter, and Youtube. Our pre-launch is dedicated to the whole month of October and will only be one month so that it can provide more of a teaser effect for our consumer. We will be focusing on informing our customers of our new technology and getting them excited about it. The launch will be in November. As a way of attracting people to the store, we will be hosting an event on November 10th which is when we will make the app sta in December and run through March. Our goal with the post launch is to keep in available for use. Our post launch will start touch with our customers and continue to promote Nordstrom and our technology.

ACTIVITY PLAN

PROMOTIONAL PLAN

SALES FORECAST We have based our projection of sales off of the ďŹ rst seven months that our technology will be implemented. Our numbers are derived from projected footfall as well as a conversion rate of that footfall. We have placed higher percentage of footfall during the holiday months due to that naturally being the busiest time for retail. Another factor is based off of our average basket which we have set at at $350 due to the average amount of products and checkouts at Nordstrom. After seven months our total revenue should be $1,059,212.

BUDGET FOR EXECUTION QeueHop will cost us $29,400 to implement across the department store with training included. Training will be provided by QeueHop employees.However, we will need to have our employees training outside of normal hours which will cost us a total of $4,400. We will begin our pre-launch promotions in October, one month prior to launching the technology. We are planning to run ads through Facebook, Twitter and Instagram which will cost us around $1,500 a month per platform. We will be running these social media ads from October until February costing us a total of $22,500 for advertising. On November, 10th we will be hosting a launch party at our ďŹ&#x201A;agship store in Seattle where we will have a DJ costing $10,000 as well as a photographer running hos $250 to capture images to use for continued promotion. The event will last for several hours so we have commissioned a catering company to provide hors d'oeuvres as well as champagne, wine and beer costing us a total of $16,000. Overall our grand total of expenses lands at $82,550.

CONCLUSION Nordstrom is a leading fashion specialty retailer, who has been committed to providing their customers with the best possible service. With the implementation of this new strategic initiative, Nordstrom has the opportunity tap into new innovative technologies that can continue to grow the company. This further solidiďŹ es their brand image of being innovators and catering to their customers as top priority. By implementing QueueHop, this will create a seamless experience between online and brick and mortar shopping for the luxury department store. Nordstrom has also been focusing on targeting millennials because they feel this demographic has the most room to grow. We feel this will help attract that new customer they are hoping to attract. Through careful g research of our core competitors and an overall market analysis, we have developed a completed plan to successfully integrate a self serve, quick and easy checkout system. The overall goal is for the technology to increase foot trafďŹ c and proďŹ t for Nordstrom.

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Kelly Hippenmeyer Taylor Jackson Amelia Sanda Shaniya Shabrach-Ortiz