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Jenna Hepp & Lauren Morgan Non-Traditional Retailing | Fall 2017

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Key Objectives Our Initiative Market Analysis Competitors: In-Direct & Direct Technological and Communication Activity Map Conclusion


A personalized shopping experience is becoming increasingly popular in today’s culture. Department stores such as Nordstrom employ personal stylists to bring this experience to life. If Bloomingdale’s utilizes the trend of technology to enable a customized experience, the company will be one step ahead of other retailers. Another trend that is currently impacting fashion is the increase of younger customer demographics including Generation Z and the Millennial Generation. These customers expect retailers to provide new experiences using technology. Long term benefits from this initiative will be an increase in customer loyalty and customer following across all media platforms. This will eventually lead to a stronger brand presence at an international scale, and possible expansion.

Key Objectives: 1. Gain a better understanding of the target customer through the use tracking algorithms 2. Create a more personalized experience for the customer across all platforms using the Loyal-list profile 3. Develope a more aesthetically pleasing app and website experience that reflects that of Bloomingdale’s social media



My Loyal-List - name, age, gender, current address, height, weight (optional), skin tone, foot size, preferred price range Stylist Preferences - feminine, tomboy, sophisticated, bohemian, vintage, casual, trendy, preppy, punk, business, sporty, holiday the Loyal-LIST - a curated product assortment based off the personal information entered Personalization Cont. - the shopper will access other basic shopping options, such as “select a color”, price low to high, most popular to least, etc. While scrolling, users can click a “heart” symbol to favorite an item, a “+” to add an item to their wish list, or the shopping bag symbol to add to cart. Information will be collected on what items a customer “hearts”, and from there the product assortment will continue to become even more personalized to include products otherwise not featured under the stylistic preferences. 7

What? Collecting consumer algorithm data will be necessary for this initiative in terms of what items they prefer to shop via their customer profile, and also through what items they like or dislike, determining what Bloomingdale’s would recommend.

Who? Bloomingdale’s Inc. creates their app in house, so they will personally handle the overall layout changes for the app and website. As for algorithm data, the company Algorithm Technologies will process data consumption and create corresponding changes within the app and website.

How? Items to be taken into consideration to achieve our initiative include cost, new initiative promotion, and consumer adaptation of these new features. Cost will not be a concern, seeing as the majority of our technology is developed in house and the return on implementing this initiative should be prompt. Once these features have been officially developed, promotional activities must take place to inform the customers. Customers will begin to utilize the new program, providing helpful data to be collected through customer reviews/surveys via app.








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A N A LY S I S Global department store sales are expected to reach upwards of $800 billion by 2018, and the majority of those sales come from developing economies. The apparel industry accounts for 55% of retail sales in the US, while cosmetics and footwear account for 20%. The US department store industry includes about 20 companies that operate an estimated 3,250 stores with a combined annual revenue of $55 billion.

We selected Nordstrom as Bloomingdale’s top competitor after analyzing these 10 companies. They are very similar as department store retailers but Nordstrom has a more innovative approach in comparison to Bloomingdale’s.



Spotify uses personalization technology by developing a “taste profile.” Through this, the company Echo Nest (a “music intelligence company) uses an algorithm based on a user’s listening behavior. A Spotify listener will come across a series of songs, and can either like the song or skip it. After this data is collected, the streaming service then creates a curated playlist that includes songs that the listener has liked, and songs they assume the listener will enjoy based on the tracks that they have liked. DoggyLoot is another company that utilizes personalization when it comes to shopping for your animal. The company tailors its dog treat/food website content based on details about your beloved animal, with questions such as their birthday, size, gender, breed, and a section to describe your dog’s personality. This information allows the company to prioritize their merchandise for the customer, and doesn’t waste the customer’s time by shifting through hundreds of items that don’t relate to their needs.



Our future competition would still include companies within our positioning map. More specifically, Nordstrom, Barneys NY, and Neiman Marcus all possess unique customization features on their software while also being very close to Bloomingdales in terms of price and innovation. Nordstrom: free shipping and returns, the ability to text sales associates, curb-side delivery, in-store availability, track reward points, personalized style recommendations and style profile, scan tags in store for more product information, create and view other friends wish lists, fashion blogs, and in-store event tracking. Barney’s New York: personalized product recommendations, showcase new fashion trends, and style advice. Neiman Marcus: facetime or text sales associates, filter through the product selection, view upcoming promotions and designer releases, and “flip to find” where you can swipe left to reject a suggested item, or swipe right to love an item. The abilities of these companies affect the long-term success of our initiative because they possess the same resources ($$$) to achieve even more future technological advances. Functions such as curb-side delivery, “flip to find”, and connecting with sales associates via text or facetime are all features that are advanced compared to Bloomingdales and what they will have to compete with beyond our customization initiative. 21




AGE: 28 EDUCATION: University of Pennsylvania, LL.M in Family Law OCCUPATION: New Family Lawyer at a successful firm INCOME: $76K LOCATION: Philadelphia, Pennsylvania


AGE: 41 EDUCATION: Santa Clara University, M.A. in Marketing & Management OCCUPATION: Marketing Director for GUESS? INCOME: $122,000 LOCATION: Los Angeles, California




Collect Competitor Data

Analyze Competitor Data

Consult with In-House Developers Consult with Algorithm Technologies

​ ollect Competitor Data & Analyze Competitor Data C For a week, information will be gathered about Bloomingdales’ direct competition and the innovative activities these competitors are doing. The company has previous data collected on competitors, meaning this week is used to compile and analyze the relevant information. Consult with In-House Developers A team will meet with the in-house technology developers to discuss the design changes to the application and website. The main objective is to create a cohesive brand across all platforms, modeled after their social media accounts. Consult with Algorithm Technologies Algorithm Technologies will pitch to Bloomingdale’s their ideas for how to achieve and implement this new selective style feature.


Software Testing Perform any Necessary Changes

Software Test #2

Focus Group Testing

​Software Testing Bloomingdale’s will test the algorithm software that Algorithm Technologies created within the new designs; this testing will occur twice. Perform any Necessary Changes Before the second software test, items will be addressed that caused issues during Test One. Focus Group Testing A focus group will be compiled to test the functions of both the website and app, ensuring that both experiences are cohesive and seamless.


Perform any Necessary Changes Focus Group Testing #2 Further Consulting with in-House Team Prepare Blog Script & Press Release

​ ocus Group Testing #2 F After opinions and considerations are fixed, a second focus group will take place. Further Consulting with In-House Developers This meeting with the in-house team will help Bloomingdale’s to check the new seamless experience across platforms. They will also check over allotted product assortment via personal style selection. Prepare Blog Script & Press Release Bloomingdale’s has their own blog, where they will feature a post on the changes made to the app and website. This same script will be used for a press release.


Press Release and Blog Post

Prepare Media Content

In Store Signage

​ ress Release and Blog Post P The new feature details will be released to fashion-relevant news sources. Prepare Media Content This content will be used to post on a variety of social media platforms informing of the new changes, while keeping in mind the aesthetic of the existing social media posts. In-Store Sign-age This includes small signs on the registers that informs customers of the Loyal-List program and its new benefits. Employees will also be trained on pitching the program, including all details on how it works.



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First Social Media Deck

First Email Blast

Employees encourage sign-up

Second Email Blast

Second Social Media Deck

Warn Users of Updating App

​ ocial Media Decks & Email Blasts S These social media decks include content that will be posted regarding the new Loyal-List launch; two separate posts will be made, along with two email blasts. This will inform customers to sign up for the mobile profile. Warn Users of Updating App & Website While on the app or website, a banner will be posted informing users that the site/app will experience the change on May 1, 2018.


App Launch Process App Feedback

Fix Any Issues

App Launch & Feedback The app launch will take place on May 1st, 2018. After the launch, review data will be collected to inform the company on how users feel about the new services. From there, adjustments will be made if necessary.


CONCLUSION ​Although Bloomingdale’s is very strong and cohesive as a department store through their omni-channel marketing, an opportunity exists to become more pioneering in the department store world. By completely redesigning their platforms and implementing the new personalized Loyal-List program, Bloomingdale’s gains the potential to surpass their competitors in terms of technological advancements and revenue. Executing this new initiative also helps to bridge the design gap between their online presence and social media aesthetic, which is more appealing to their tech-savvy target consumers. Through the success of the launch, the company should experience enough positive attention to influence more store openings in new international locations, as they are currently reaching into foreign markets. This new initiative is exactly the push that Bloomingdale’s needs to stand out as one of the top high-end department store brands in America, and soon the world.


SOURCES “Barneys New York, On the Go.” Barneys New York, Barneys New York, 2017, Baum, Dan. “Personalized Marketing: 7 Impressive Examples & Why They Worked.” Impact, Impact, 31 May 2017, “BLOOMINGDALE.” BLOOMINGDALE’S, INC. | Revenue and Financial Reports - D&B Hoovers, html. “The Bloomingdale Brothers.” History TV, bloomingdale-brothers. “Bloomingdale’s | About Us.” Our History — About Us | Bloomingdales, history/. “Bloomingdale’s - Macy’s, Inc.” Macy’s, Inc., “Department Stores Industry Profile.” Department Stores Industry Profile from First Research, “Department Stores Market Research Reports & Industry Analysis.” Market Research, Department-Stores-c657/. “Hudson’s Bay Co. | Lord & Taylor.” EMarketer Retail, lfy/false/hudsons-bay-co-lord-taylor. “Macy’s, Inc. Evolves with Changing Customer Landscape, Invests for Continued Sales Growth.” Business Wire, 8 Jan. 2015, cy%E2%80%99s-Evolves-Changing-Customer-Landscape-Invests-Continued.


“Neiman Marcus Group LTD LLC Reports Fourth Quarter and Fiscal Year 2017 Results.” Business Wire, 10 Oct. 2017, Reports-Fourth-Quarter. “Neiman Marcus Top Navigation.” Neiman Marcus, Neiman Marcus, “Neiman Marcus App.” Neiman Marcus, Neiman Marcus, 2017, “Nordstrom Apps.” Nordstrom, Nordstrom, 2017, vice-_-globalfooternav_app. “Our Customer Service.” Bloomingdale’s, Bloomingdale’s INC., mation. Staff and Bloomberg report | May 12, 2017, et al. “E-Commerce Generates Almost 25% of Nordstrom’s Sales in Q1.” Digital Commerce 360, 12 May 2017, www.digitalcommerce360. com/2017/05/12/e-commerce-generates-almost-25-nordstroms-sales/.theBIZNOB. “New Bloomingdale’s CEO, Tony Spring, Outlines Future Plans.” THE BIZNOB - Global Business & Financial News, 11 Aug. 2014, ture/. “Who Are We.” Algorithm Technologies, Algorithm Technologies, 2015, Zantal-Wiener, Amanda. “These 7 Brands Take Personalized Marketing to a New Level.” HubSpot, HubSpot Inc, 2017,


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Bloomingdales -Part 2  

Bloomingdales -Part 2