Friday, October 25, 2013

Blog 6: Reflections on Creativity



            For me, creativity is somewhat unexpected. While I like to think of myself as someone who is overall a creative and clever person, there are definitely moments in which my creativity seems much stronger than others. The challenging facet of creativity for me is that these moments of spiked creativity and innovation come in the most unexpected times. There has never been any rhyme or reason to when I am more creative, and it’s not a quality I can just turn on or off. My own level of creativity seems to be dependent on my moods, which are relatively hard to predict and anticipate. In the times I am feeling most giddy and happy, I find myself to be much wittier and creative. In times of stress, I find my creativity to be strained. In fact, I often find that I am least creative during times when I am working hard to be creative. It’s an unfortunate paradox, but I think that the pressure of trying to be creative and think of out-of-the-box ideas actually places more stress upon me and as a result restricts my thinking.

            This realization became especially clear when I worked on a team for L’Oreal’s Brandstorm Case Competition during my junior year. After making it to the final round of the competition, my three-person team was tasked with creating an idea for an entirely new product for the L’Oreal Paris brand to launch in Southeast Asia. My group would meet often to rigorously work on this case, but we found that our least creative moments always occurred during the meetings themselves. For some reason, the pressure to be creative on the spot affected us all, and none of us were able to innovate new products when faced with the deadline of immediate idea delivery by the end of the meeting. In fact, our inevitable product idea came when we all took a week to think of ideas on our own. After giving ourselves this break of time away from any pressures, we all came back with fresh, new ideas that we were able to combine to create an innovative new product that inevitably guided our decisions for the remainder of the project.
           
As a business-minded individual, when I am under pressure or feeling stressed, my natural reaction is to follow very step-by-step thinking and take things one at a time. This type of process-driven is not conducive to creativity. I have found that creativity is strongest for me in the unpredictable moments where I feel completely carefree, optimistic, happy and free-spirited.

            During my internship at L’Oreal in New York City this summer, I was always blown away by the creativity of my superiors within the marketing department in the Luxury Products Division. Many of the marketers I interned under were incredibly creative. As a member of the digital team, I saw first-hand as many of the managers were able to create clever digital campaign themes and witty copy on the spot in the middle of our meetings. When I reflect back to why this may have occurred at L’Oreal, I believe the reason can be traced back to the importance placed on group meetings at L’Oreal. Employees at L’Oreal jokingly discus that you’ll never go a day at L’Oreal without at least 5 hours worth of meetings. From my own experience this summer, I can attest to the truth in this. Marketing managers are constantly meeting with one another to discuss and collaborate on a wide variety of projects. While at times these meetings seem tedious and unnecessary, I think the frequency of these meetings inevitably leads to L’Oreal’s continuous innovation. As I sat in on meetings with the Kiehl’s team, I saw that people from various segments of the marketing department were able to piggy-back on one another’s ideas and effectively grow and refine the ideas until they became fine-tuned surefire paths to success. Each person in the meeting brought a fresh, new perspective to the table. Because the Kiehl’s brand within L’Oreal has set such casual, comfortable in-office environment, employees felt free to openly express their ideas. L’Oreal rewards out-of-the-box thinkers and group collaboration, and I really think this helps to promote creativity within the corporation as a whole.

            I do believe that both individuals and groups have the potential to be creative. However, I think group thinking can create constraints to creativity unless key conditions are met:
  • Optimistic Group Thinking: Negative groupthink can create stress and tension within the group, in effect constraining free-thinking and creativity. It’s important for a tone of positivity to remain within the group to ensure that members feel motivated to think creatively and innovate.
  • Open & Dynamic Relationships: It’s key that a strong team dynamic exists in order for a group to collectively work together to be creative. There needs to be a strong relationship amongst team members and a level of respect for one another. If one team member does not respect the ideas of another, this will create tension within the group and will make members feel fearful to freely express their ideas. Open expression is key to generate creative ideas.
  • Planning: As discussed above, the pressure of deadlines often places members of a team under so much stress, that it’s harder for them to be creative. I think it’s important that a group plans ahead in order to allow for the team to have enough time to think without being faced by stressors and deadlines.

            Overall, it’s important for individuals, whether alone or a member of a larger group, to reflect personally on what drives their own creativity. We must be individually aware of the conditions under which we operate most creatively. If we have this knowledge, then we will be able to better understand the environments we desire or groups we need in order to maximize creativity and spur innovative thinking.

Sunday, October 20, 2013

Blog 5: Visualizing Insights with Infographics


The consumer segment of teens and tweens, ranging from age 12-17, has always been a powerful segment for consumer product companies and retailers. Each year, teens and tweens account for massive amounts of spending on goods, yet a large majority of this segment is too young to drive or even own a credit card. Today's segment of teens and tweens are especially unique due to the environment in which they have grown up in. These teens and tweens are reliant on daily technology, are more connected than ever before, outpace all other age groups in social media use, and have become experts in the art of multi-tasking. The presence of so many technology channels amidst the daily lives of these consumers means that they are exposed to more information than ever before, creating a highly competitive environment for marketers. The infographic I created explores this phenomenon while offering strategic solutions through a multi-platform marketing approach.

There are 4 major sections of my infographic visual:

  • "Teens of Today" Left Panel: This section outlines they key characteristics of today's segment of teens. As seen in the visual, multitasking and daily reliance on technology have become the new norm for this group of consumers. This essentially means these consumers are often very distracted because they are exposed to such an immense amount of information and noise on a daily basis. This creates a challenge for marketers to stand out amongst the competition in order to effectively reach this distracted audience. 
  • "Motivators" Top Right Panel: This small section outlines the major influencers for teens and tweens when it comes to use of technology and shopping. When shopping for beauty and personal care items, teens and tweens use technology with two main objectives: save money and obtain special offers and deals. This segment is unique because they really value family and enjoy spending time with their family. In fact, 63% of the segment shops with family members. This creates a need for marketers to target not only the teens and tweens themselves, but also their parents who maintain the ultimate purchasing power for this segment. 
  • "Multi-Platform Approach" Middle Right Panel: This section outlines teen and tween usage of various technology platforms. Due to the high usage of each of these platforms, marketers can effectively reach teens and tweens by creating integrated marketing communication campaigns that span multiple platforms. 
  • "Implications" Bottom Right Panel: Based on the information found in the section above, the Implications section outlines strategic solutions to effectively use each of platforms displayed to reach teens and tweens. The Internet should be used to offer online deals to teens and tweens browsing the Internet to encourage in-store visits and purchases of the advertised products using the offer provided. Social Media should be used to promote the brand's current offers and promotions. Because teens use technology to save money and obtain offers for beauty and personal care products, they are likely to share the promotional social media blasts with their friends. The mobile platform can be leveraged to reach teens and tweens as they shop in stores through text messages since such a vast majority of this segment owns cell phones. Because teens are often too distracted to respond effectively to traditional marketing approaches, strategic product placement should be used with TV in order to reach teens and tweens through the television programs they frequently watch. Many teens and tweens use their peers as an information source for personal care and beauty product information. As a result, sampling would be a great way to create loyal brand advocates amongst the segment who can in turn influence their peers through positive word-of-mouth. 
Today's teens and tweens communicate through more platforms than ever before. To be effective in reaching this segment of technology-dependent multi-taskers, marketers must create marketing campaigns that are rooted in multi-platform approaches. 

Thursday, October 3, 2013

Blog 4: Business Model Analysis of Nordstrom





In today’s fast-paced, entrepreneurial world, it’s often a rare instance to find a business celebrating its 114th birthday and still thriving in the marketplace. Since Nordstrom was founded in 1901, the company has evolved into a major specialty retailer that continues to grow their revenues while gaining market share. Nordstrom can be described as an American upscale fashion retailer existing in the services sector within the apparel retail industry. Within this arena, Nordstrom is positioned as high-end, yet affordable with a strong focus on excellent, top-notch customer service. Relative to its competitors, Nordstrom is positioned as more luxurious and high-end than Dillard’s, yet more affordable and attainable than Saks Fifth Avenue or Barney’s.

In regards to business operations, Nordstrom has two segments: Retail and Credit. Its credit segment includes the company-owned federal savings bank, called Nordstrom fsb, through which Nordstrom provides a private label credit card, two Nordstrom credit cards, and one debit card. Within its retail segment, Nordstrom operates through five main retail channels:
  • Department stores under the “Nordstrom” name
  • Discount stores under the “Nordstrom Rack” name
  • E-Commerce through the Nordstrom.com website
  • Online private sales through the HauteLook brand
  • Four individual free-standing boutique stores under the names Jeffrey, treasure&bond, and Last Chance.  

    

Nordstrom currently operates in 34 states across the United States, servicing customers through 117 Nordstrom stores and 132 Nordstrom Rack stores. These numbers have positioned Nordstrom with the largest number of store locations and the largest geographic footprint of all its major competitors in the U.S., including Bloomingdales, Neiman Marcus, Lord & Taylor, and Saks Fifth Avenue. Through its multiple retail channels, Nordstrom serves its customers with a wide variety of product categories. The categories of products sold by Nordstrom are listed in the chart below.




            For me personally, Nordstrom has always fascinated me for a wide variety of reasons. First and foremost, I have always been incredibly interested in the world of retail, particularly in fashion and beauty retail. Prior to beginning my junior year at UT, I spent the summer of 2012 abroad in Florence, Italy. While abroad, I took courses in Retail Marketing and Fashion Merchandising and spent much of my time analyzing retail operations and strategies. My time in Florence fostered a deep interest in both fashion and retail. When the time came to embark upon a new journey during the summer of 2013, I moved to New York City to work an internship for the major beauty retailer L’Oreal. Through this internship, I garnered knowledge and experience that deepened my understanding of and interest in the retail industry. Because I worked within L’Oreal’s Luxury Products Division, Nordstrom was one of the key retailers we worked with to distribute our more high-end product lines. Nordstrom interests me because they have managed to do what few other luxury retailers have done by creating brand subsidiaries that widen their customer base. Through their mix of products and mix in price points across different retail store types, Nordstrom has successfully appealed to a wide-range of customers. This is far unlike many other luxury retailers, who predominantly cater only to a wealthier, upper-class audience. As a millennial myself, I am particularly interested in companies that have a strong digital presence. Nordstrom has excelled in creating a seamless user experience that is in line with the traditional Nordstrom brand. Furthermore, they have also been an industry leader in E-Commerce through their use of real-time inventory updates and mobile and tablet platforms. Lastly, my interest in Nordstrom has also stemmed from the way the company carried itself through the economic recession in 2008. Unlike many major retailers that are still struggling to regain strength in a post-recession world, Nordstrom took major strides to adapt to the economic recession by updating their product mix to include more affordable options. I continue to love the experiences I have during my own personal time shopping at Nordstrom, and my interest in the company is fastened deeply in a respect for the company’s wide customer base, strong digital presence, and economic adaptability.

            As stated in the above paragraph, one of the things I love most about Nordstrom is the ability to appeal to a wide-range of customers. That being said, Nordstrom has a large variety of customer segments that are crucial to the store’s success. For my business model analysis report, I hope to dive deeper into the customer segments that I believe are most in line with Nordstrom’s major streams of revenue. The customer segments I plan to analyze are:
  • Women, ages 30-40, mothers in the middle-to-upper class:
    • These women are the matriarchs of the household and are likely the major buyers of apparel for their families. These women are incredibly busy raising their children while balancing work and social obligations. That being said, the value proposition for this customer segment is that of time. They desire stores that will allow them to shop for items quickly in an environment that is easy to navigate and never chaotic. In addition, these women also value affordability and reasonable prices. Although they may be in the middle to upper class, they still have a need to ensure they are spending within reason due to the multiple expenses associated with raising children.
  • Men, ages 25-35, young professionals:
    • Based on past financial reports, sales from men’s clothes typically account for 18-20% of Nordstrom’s revenues. This is a large portion of the overall revenues for the Nordstrom stores, which means that men are an incredibly valuable customer segment for the company. Men between the ages of 25 and 35 are likely to have just recently begun to shop with more discerning tastes. As young professionals, they desire to look clean-cut and professional in order to present themselves well to others. Because of this, these customers value high quality. If they are willing to pay higher prices, they want to be guaranteed that they will receive high quality in return. Much like the segment of young mothers, these men also care about prices, as they cannot afford to be too outrageous in their spending. They want to shop in a comfortable environment that is easy to navigate and that is unpretentious while still offering high quality products.
  • Women, ages 55-65, upper-class women no longer working:
    • Women in this customer segment have led successful lives and are enjoying retirement. Time is no longer a main concern for them, as their schedules allow for a greater amount of discretionary time. Rather, these women are concerned with quality and customer service. Much like the men described above, these women desire quality items that are luxurious and high-end because they have now attained financial security in their later years of life. Moreover, they desire a positive customer experience. They want to feel like their money is well spent, which means they value a shopping experience that features impeccable customer service and positive interactions with employees.



Sources Used:
Nordstrom: www.nordstrom.com