For our project we are taking a new brand "Nordstrom Spa" and are generating a social media advertising plan for the company in order to raise brand awareness. So far we have done a lot of research on Nordstorm Company and have come up with our situation analysis, which is attached below. Also based on sane assumptions we decided our target market for Nordstrom Spa will be women who are 21 years and older with moderate to high incomes. Nordstorm is a retailer that caters to higher class markets which is why we decided this would be a good target market. We want to use paid media strategies such as magazines, commercials, and billboard ads in order to get our message out there about this new spa. TV is a good medium to use when promoting a new product because it reaches a mass majority of people. Magazines will be used to promote more specifically to our target market as well as billboards, which will be placed within 60 miles of new Nordstrom Spa locations in order to attract customers. Our objectives are to generate awareness toward Nordstrom Spa in order to increase profits and drive business, and to bring in new customers to the Spa rather than having only our current Nordstrom customers use the services. SWOT Analysis Strengths: Well rounded, complete, and high quality product variety Nordstrom sells a variety of clothing including shoes, jewelry, and handbags. They cover all types of clothing and all types of accessories. You could go shopping at Nordstrom and walk out with a complete outfit, let alone closet. Not only can you essentially get any fashion need at the store, the quality and performance of these products are better than average. Nordstrom can get very high end, yet have affordable prices. Of course there are several price points to anything you buy, however even the cheapest of items and reliable. Several retailing locations Nordstrom has over 150 stores, 4 boutiques, and 50 Nordstrom Rack stores. These stores are in malls and located all over the country, covering a lot of land and attracting a lot of consumers. Nordstrom is also present overseas. Lastly, the retailer has a strong online site and catalogue. Customer Service Nordstrom takes pride in the fact that their customer service policy is one of the best. Here, the customer really is always right. They treat their customers like family and implement a nearly flawless return policy. Nordstrom is known for their customer service and it is a huge strength and advantage that they possess. Weaknesses: Product recall One downfall to Nordstrom is their rate of product recall. In 2009 alone there were at least five different products recalled. Even keeping their return policy in mind, it doesn't excuse the recalls. Over time this would cause less trust from the consumers Opportunity: Social Media and digital presence A recent study on specialty retail took the digital IQs of several retailers. Nordstrom had an IQ of 143, ranking itself as number three overall, and the second best out of the department store category. It was put into the "Genius" category, along with only two other retailers (Macy's and Victoria's Secret). Nordstrom was described as, "Umber responsive Twitter account and robust mobile site stand out; site redesign embraced risk- and it paid off". Nordstrom took the risk of getting super involved in the digital scene and it worked, giving the company confidence to venture on in regards to their Facebook page, mobile presence etc. Resilience against the economy Yes, companies are going to take hits when the economy is bad and people aren't spending their money. However, it has been noted and observed that Nordstrom stays strong in dismal times; even called "resilient". During one time of trouble for many, store's sales dropped while Nordstrom's sales increased by 6.7%. This comfort and past proof allows for Nordstrom to go ahead with one or two risky decisions, and have a little extra leeway for opportune times. High end designers/new line opportunities As previously discussed Nordstrom is reliable, well known, and successful. This allows for them to be targeted and approached for valuable opportunities dealing with designers and new lines they come out with. For example, designer Rachel Zoe promoted her line to Nordstrom, her clothing went on sale, and both reaped the benefits. Nordstrom executives released that "the sell-through rate has quadrupled expectations". Nordstrom's successful and flawless reputation opens the door to so many great opportunities such as this one. Room for expansion Nordstrom is quoted "Despite the robust sales trends in the industry, Nordstrom is more consistently profitable". This allows for them to continue opening stores and expanded previously opened ones. Just as one example, they are opening their second location in Houston. Threats: Competition Nordstrom although successful in their field of the industry, is constantly competing for sales and consumer followings. For instance, Gap Inc. and Abercrombie and Fitch Co. sometimes intensify the competition. As a result, the market shares are up for grabs causing Nordstrom to turn to pricing. Nordstrom can get aggressive with their pricing, and therefore weakening the company.