Monday, 22 October 2012


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1. SWOT Analysis

a. Strengths � One of Neiman Marcus’ biggest strengths is its brand recognition. Everybody knows what he or she is getting when they walk into Neimans. The relationships that their salespeople have with their clientele are also helpful to increase sales. The personal one on one style will keep bringing people back.

b. Weaknesses � Neiman’s sells products that are for a very specific, niche group. Their products do not and cannot appeal to the masses. It will be difficult to attract the occasional shopper because of how highly priced their goods are.

c. Opportunities - Neiman’s has a good opportunity to target the occasional shopper. They already have them coming in their doors, they just need to figure out how to educate and retain them.

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d. Threats � One on Neiman’s main threats is the economy. With the high priced, high classed goods that they carry, if the economy starts going bad, then people aren’t going to spend as much money on high classed goods.

. Problem Statement � The problem that Neiman’s is facing is trying to attract more occasional customers. They have traditionally focused on their long-term customers. The occasional customer has different needs and needs to be addressed differently.

. Identification of Alternatives -

a. More widespread advertising would inform more people about what Neiman’s has to offer. Since many of these occasional shoppers are looking for specialty items, if you can inform them of what specialty items you carry, they will come looking for them.

b. Neiman’s may want to try and carry a wider variety of goods. If they carry goods that will get the occasional shopper in the door, they may buy other products. They also could try carrying less expensive products that younger consumers could buy that would attract Neiman’s customers at a younger age. These consumers could then turn into a more loyal and higher spending consumer.

4. Analysis of Alternatives �

a. The ability to advertise to a wider consumer will attract more shoppers. If they know they have the specialty product that they want, then they will come into shop. This will lead to an increase in the Neiman Marcus advertising budget. The income that they will receive by attracting a more diverse group should out weigh that cost.

b. Carrying a wider variety of goods would be a double-edged sword for Neiman’s. The first benefit would that they would be able appeal to a wider consumer base. They would attract customers that normally wouldn’t fit under the Neiman umbrella of upscale shopping. This could lead to consumers that eventually would be an upscale customer, such as young people who will have money later in life. The cost would be putting the Neiman name at risk. People expect high quality, high priced goods. If they realize that the Neiman name is on inferior or lower class products, they may stop purchasing them.

5. Recommendation � I believe that carrying a wider variety of products would be the best course of action for Neiman Marcus. They must do it carefully and tactfully. If their name recognition is at all in danger, they must stop. They must uphold the Neiman Marcus name and quality. The benefit of attracting a younger and more occasional customer will outweigh the costs and risks of their brand recognition.

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