This is our team's slides for the final presentation at University of Washington in the second quarter.

2. Agenda
1. Objec(ve
2. Execu(ve Summary
3. Current Situa(on of Nordstrom
4. Market Jus(fica(on
5. Market Entering Strategy
a. Market Entry, and Strategy Channel and Partnering
b. Target Customers, Customer Segmenta(on and Personas
c. Risk and Management
d. Globaliza(on and Localiza(on
e. E-commerce and Digital Marke(ng
f. Social Media, Content and Event Marke(ng
6. Predicted Profit and Loss & Future Goal

3. Objec(ves
3
• Presenta(on Objec(ve
To gain approval by execu(ves to launch full-scale project to
operate in overseas market.
• Business Objec(ve
To grow business outside United States and take a first step to
grow globally
• Marke(ng Objec(ve
To increase brand awareness in the new market and successfully
posi(on our self to our ideal market posi(on

4. Execu(ve Summary
4

5. Problem Solutio
n
OutcomeImplementation
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

6. Current Situa(on of Nordstrom
6

7. Corporate Value
7
Welcome to Nordstrom
We're glad to have you with our Company. Our number one goal is to
provide outstanding customer service. Set both your personal and
professional goals high. We have great confidence in your ability to achieve
them.
Nordstrom Rules:
Rule #1: Use best judgment in all situa(ons. There will be no addi(onal
rules.
Please feel free to ask your department manager, store manager, or
division general manager any ques(on at any (me.

8. Our Passion
8
Our Vision & Commitment
Do whatever it takes to take care of the customers.
-John W Nordstrom, 1901
It’s not about us being ranked on
top or ‘best in class.’ It’s about
doing what’s best for the customer.
In fact, forget ‘best in class,’ the
consumer is constantly raising the
bar, and since they are seng the
standard, we’re con(nually
reseng ours upward.
- Blake Nordstrom
In store or online, wherever new
opportuni(es arise, Nordstrom
works relentlessly to give
customers the most compelling
shopping experience possible.

9. 9
Do whatever it takes to take care of the customers.
-John W Nordstrom, 1901
“Excellent Customer Experience”
address highest customer service

10. Strength Weakness
Threats Opportuni(es
◎ Unique Corpora(on Value
Culture that empowers the employee’s
decision
◎ High Brand Image
Strong rela(onship with customers & brand
High Customer Experience
Clear and outstanding presenta(on
Refund policy
• Lacking Global Experience
First foreign country expansion - Canada, 2014
• Low Presence in Other Country
• Low Agility
High ini(al costs ((me and money)
Due to lack of global experience
Chance of Tapping into the Interna(onal
Market
Markets are emerging
E-commerce industry is growing
• Compe(tors
New Entry
Expanding Overseas Compe(tors
Increasing Returning Customers
$248b: 53% Increase in 5 years
Return policy abuse
Recession Risk
10

11. CURRENT SITUATION
• 128 full-line store in U.S. and 230 Rack
• Saturated market in U.S.
• Operate only in North America
11

12. 12
It Is Time To Go Global

13. 13

14. Market Jus(fica(on

15. 15

16. Indicator for choosing market
Country Income/ Capita GDP/ Capita
Popula(on of
Woman
Import Size of
Apparel Goods
(2015)
Growth Rate of
Import size
Canada 51,630 45,066 3,909 4,672,711 -1.89%
Australia 64,600 45,925 2,347 3,053,255 3.63%
United
Kingdom
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%

17. Germany Japan Australia
Indicators Weight Score
Weighted
Score
Score
Weighted
Score
Score
Weighted
Score
Income/ Capita (2015) 3 7 21 6 18 10 30
GDP/Capita (2015) 1 10 10 7 7 10 10
Popula(on of Employed
Women 2 4 8 8 16 1 2
Import Size of Apparel
Goods (2015) 2 10 20 8 16 3 6
Threat
Number of Compe(tors 3 7 21 2 6 10 30
Decrease Rate of Impor
Size of Apparel Goods 2 1 2 3 6 10 20
Aggregate Score 82 69 98

18. Compe((on Grid
High Customer
experience
Low Customer experience
High Price
Low Price
Appeal Clothing

19. Hofstede’s Dimension ( AUS and U.S.)
Individualism
-highly individualist culture
-loosely knit society
-taking an ini(a(ve
Short term Orienta(on
-exhibit small propensity
to save for the future
-focus on achieving on
quick results

20. 20
Culture Ethnic Government
● Low Context Culture
People Interpret the way we say
● Direct Adver(sement
● Open communica(on
Australia U.S. ( Seattle )
Tariff 10% 15.9%
Sales tax 10% 9.6%
Corporate tax
30% 35%
● 25.9% of the popula(on are
English
● 25.4% of the popula(on are
Australian
● 7.5% Irish, 6.4% Scosh, 3.3%
Italian
● Lower Tariff and corporate tax
rate than US

21. Market Entry Strategy
-Partnering
-Channel model
-Mile Stone

22. ・DIRECT PRESENCE
・OEM
・AGENT
・IMPORT DISTRIBUTOR
・EXPORT MANAGEMENT
・DEALER/RESELLER
・EXPORT TRADING
・LICENCE
Market Entry
Strategy

23. 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)

24. CRITERIA
FOR
AGENTS
ROLES & RESPONSIBILITIES
CAPABILITIE
S
WHAT WE INVEST WHAT THEY INVEST
- submit regal documents
- connec(on to the right partners
- informa(on about local market
- excellent record of consul(ng history
- deep understanding of local market
- posi(ve atude to understand company
- share our business strategy, culture and purpose
of extension of our business into Australia
- share internal and confiden(al informa(on
- support agents in terms of finance, (me, and
human resources
- their commitment to smooth the extension
of our business by u(lizing their resources
such as their knowledge and exper(se for
localiza(on of our products, regula(ons,
documenta(on and so forth.
- feedback about our service in Australia and
their contribu(on to make it beqer
24

25. CHANNEL
MODEL
external
internal
25

26. MILESTONE
3YEARS store open
26
12 months
18 months
30 months

27. Risk Management
&
Considera(ons
27

28. 28
Risk Aspects Risk Level Risk/Issues Solu(on
Management Moderate
High control
Lacking know-hows
Strong rela(onship with agents
Culture Low
Australian prefer quality over brand
Many cultural factors are similar with US
Adapt local cultural such as holidays
and values
Finance High
High Ini(al Cost
• Cost of building
• Event cost
Bank (Main Bank System)
Stock issue
Logis(cs Moderate
• Product delay
• Damage and loss
• Tariff
Incoterm
Insurance
Trusrul trading company
Compe((on Moderate
• Low number of compe(tors but we
are s(ll lacking experience to operate
globally
Differen(a(on between compe(tors
• 4Ps

29. 29
Regulatory Cultural Technology Privacy
• Pricing must include tax
• Label must include the
name of the country where
produce the goods
• Material descrip(on
• Women make up 50% of the
workforce and most women
remain in the workplace ader
they marry, and many aser
they’ve had children. Women
are also free to breasreed in
public.
• Australians truly enjoys sport,
whether both playing it or
watching it. Australia is also
ranked the top cricke(ng
na(on in the world.
• Collabora(on with online shop
• E.g. discount coupon for online
shop aser purchase at the
fiscal store
• Privacy Act 1988 ( Protec(on of
personal informa(on)
People are sensi(ve for personal
informa(on
Policy about personal informa(on
• E.g. Document with cover seal

30. 30
Target customers, Customer
segmenta(on and customer personas

31. Who are our target customers?

32. 32

33. 33

34. 34

35. 35

36. 36
Globaliza(on and
Localiza(on
-Globaliza(on
-Localiza(on

37. Globalization , Localization Grid
Product
Globaliza(on Localiza(on
Pricing
Promo(on
Place
37
Ethno Centric Poly CentricGeocentric

38. Product(Geocentric)-adapta(on
1. Different preference
Choosing right bland/clothing
1. Labelling requirement
Changing label
1. Language barrier
Educate employee
38

39. Price(Geocentric)
◦ Price will be set higher than US
◦ Core pricing strategy will be same
39
Image Enhance Strategy
Customer Satisfaction
Strategy
Profit Strategy

40. Price
We will apply US pricing strategy.
● Price Matching
● Sales Adjustment
● Pricing errors
Furthermore we understand that Price Elas(city of
Demand for apparel is rela(vely elas(c.
● We may adapt some discount strategy from US
○ Anniversary sales
○ Affiliate Coupons
○ and others
40

41. Price
Compe(tor Pricing Comparison
◦ Products in Australia are sold
roughly 25% higher than the
product in US
◦ E.g Chanel Cosme(cs
● Customer Pricing
◦ Consumer prices are
11.35% higher than US
◦ A pair of jeans can reach
up to more than 70%
higher than US
◦ Summer dress in a chain
store can reach 40% higher
than US
41

42. Price - Compe(tor Price Comparison
David Jones Nordstrom
*Note: Australian $164 = US $126
*1.7oz = 50ml
42

43. 43
Place (Ethno centric)

44. Promo(on(Geocentric)-adapta(on
● Sale Season– Different season,
different holiday
● The image of our adver(sing -
should be more less fancy and
high quality
● Collaborate with local famous
Blogger/ Vlogger
44

45. 1. Change Brand/Product Line
2. Change Product Labels
3. High educa(on employee
Extending our current strategy
1. Sale season
2. The image of adver(sing
3. Collaborate with Blogger
Adapta(on Strategies
45

46. E-commerce and Digital
Marke(ng Strategy
46

47. 47
Why is it so important for us?

48. 48
Why is it so important for us?
Excellent features
Reduce uncertainty

49. ● Target email campaign
● Mobile app no(fica(on
● SNS update
● Website ads
● Affiliators in Australia
Customer journey
Informa(on Evalua(on
Delivery
Purchase
Support
Various shipping service
-Fast shipping
-Gis shipping
-Green shipping (Eco-friendly)
-One-day shipping (Uber RASH)
-Interna(onal shipping
● Pictures and video providing
products’ details
● Sugges(on
-Size
-Physical store’s loca(on
-Other products
● Mobile camera feature
● Comparison feature
● Online support ( Live
chat)
● Call center
● Simple purchase form
● Various credit card
op(ons
● Digital coupon
49

50. Website
● Amazing recommenda(on
● Suitable items
Informa(on
Targeted E-mail campaign
● Update mail
● Birthday mail
Affiliate network
● Collaborate with affiliators have
influence to Australian/ Website,
SNS ( FB,Youtube, Twiqer etc...)
Integra(on with offline
OFF-->ON
● Postcard DM with QR cord
● Digital coupon
ON-->OFF
● Sugges(on of available physical store
50

51. Evalua(on
● Sugges(on feature ( APP )
Sugges(on of similar products based on the picture
● Automated size sugges(on (Web/APP)
Sugges(on the right size with more accurate
informa(on
● Product Video (Web)
More accurate informa(on of products
51
Purchase
Easy Process
● Exis(ng customers
● New customers
● Paypal payments

52. Social Media,
Content and
Event Marke(ng
52

53. Wish Your Dream to SantaNordstrom 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

54. 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

55. “Nordstrom is in Sydney!!”
Element How is element used effec(vely?
Heart Big event is coming up!
Want to take a picture with celebri(es & Ar(sts
Fun Fireworks / Meet celebri(es & Ar(st / Dress performance
Cause Brand awareness / Communicate and connect with customers
Community Offline: Customers, Celebri(es, Press, Media, Brand partners
Online: Social Media, Media
55

56. Talkers People come to the event, Celebri(es, Bloggers, Press, Media, People
watched our video and post about the event, Brand partners
Topics Fireworks, Nordstrom logo on the opera house, Fashion show, Dress
performance, Famous celebri(es, Limited shop bag
Tools Offline: Normal girls, Celebri(es, Decorated store, Opera house,
Samples, Magazines
Online: Blog, Internet, SNS, News
Take Part Respond the comment on social media and video, Respond to the
interview by TV, Thank you email to bloggers
Tracking # of people at the event, # of the sales, # of new membership, # of
people try samples, # of press and media, # of like (FB), # of views
“Nordstrom is in Sydney!!”
56

57. 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

58. Predicted Profit and Loss
-Break even point
-ROI
58

59. 59
Monthly Units Break Even: 2,000 units
Monthly Revenue Break Even: $2,000,000

60. sales price per unit: $1,000
variable cost per unit: $700
contribu(on margin per unit: $300
expected ROI: 20%
expected monthly sale units: 2400units
*ROI=(300(margin)*2400(monthly units)-600,000(investment)/600,000(investment))*100=20%
60
EXPECTED
ROI

61. 61
Do whatever it takes to take care of the customers.
-John W Nordstrom, 1901
Our Future Vision

62. Thank You
For Listening