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Jaipuria Institute of Management, Vineet Khand, Gomti Nagar Lucknow - 226 010

The document summarizes customer management practices at three retailers - IKEA, Nordstrom, and Nike. [1] IKEA uses loyalty programs, special offers for club members, and store layouts tailored to different cultures to build customer relationships. [2] Nordstrom emphasizes exceptional customer service through employee training and flexible policies like unlimited returns. [3] Nike collects customer data through apps to track fitness and tailor recommendations, while focusing on exclusive stores and removing wholesalers.

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Saurabh Singh
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59 views

Jaipuria Institute of Management, Vineet Khand, Gomti Nagar Lucknow - 226 010

The document summarizes customer management practices at three retailers - IKEA, Nordstrom, and Nike. [1] IKEA uses loyalty programs, special offers for club members, and store layouts tailored to different cultures to build customer relationships. [2] Nordstrom emphasizes exceptional customer service through employee training and flexible policies like unlimited returns. [3] Nike collects customer data through apps to track fitness and tailor recommendations, while focusing on exclusive stores and removing wholesalers.

Uploaded by

Saurabh Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Jaipuria Institute of Management,

Vineet Khand, Gomti Nagar


Lucknow – 226 010

Academic Year 2020-21


Batch 2019-21
Trimester 4
Programme PGDM-RM
(PGDM / PGDM-FS / PGDM-RM)
Name of Course SO
Section A
Name of Faculty Mr. Himanshu Mishra

Nature of Submission Assignment


(Assignment / Project Report)
Topic of Assignment / Project Individual Assignment

Deadline for Submission 13th September,2020


Group/ Learning Team Number
Maximum Marks Allotted

Contribution of Group/LT members in the Assignment/Project

Sl. Name & Enrollment Contribution Signature


No. Number of Student

1 Saurabh Singh - JL19RM042 saurabh


2
3
4
5

Date of receiving at PMC: Signature of PMC Staff:


Penalty [Marks to be deducted (if any)]:
IKEA
In 1943, IKEA was started in Sweden by Ingvar Kamprad. It started distributing products via
retail outlets. IKEA's name is derived from the initial letters of Ingvar Kamprad and the initial
letters of Elmtaryd & Agunnaryd. IKEA is a close corporation or a private company, it is an
international household product retailer that sells furniture, house accessories, kitchen, and
bathroom items. The reason behind the high demand for products is to offer house
furniture and pure function and new and innovative design at prices using reduced price
methods. IKEA is most famous for selling simple ready to assemble and stylish furniture like
chairs, beds, bookshelves and desks, kitchen cabinet, appliances, and home accessories.

CUSTOMERS MANAGEMENT PRACTICES AT IKEA

In the past, the Loyalty program for customers has seen a lot of growth in IKEA. The
company spends a lot on loyalty schemes. At IKEA, club members have access to special
offers like free coffee at IKEA restaurants and furniture have free transport insurance which
says if the product gets damaged during transportation “it is insured”. These types of
exclusive offers and special treatment makes shopping a fun experience and creates an
emotional bond between the company and its customers.

IKEA differentiated itself from the competition and created a strong retail brand in this
segment, this gave customers a reason to be loyal. Different countries required IKEA to
make changes in their store layout like in China, IKEA copied a layout of Chinese people
apartment and implemented in their stores with balcony. They knew that those people used
to spend most of their time in the living room. They also had to customize the location and
DIY concept in China. In Shanghai, only 20% of visitors have cars but IKEA made a parking
space of 1000 vehicles so that in the future people can visit with their car. Customer relation
includes many roles outside and inside of stores. They leave a positive experience in
customers' minds during or after doing purchases. They involve customers by concepts like
DIY.

At IKEA, the most important tool used for building relationships with customers apart from
their store is its catalog. Instead of using the model in their catalog, they use their
customers which also creates engagement of customers in the brand. This ensures the re-
visit of customers in the store. Also, their store layout is in such a way that people enters
and if he/she wants to leave, they must watch full products ranges, which increases the
chances of purchase from the store.

NORDSTROM
Nordstrom was founded in 1901 by John W. Nordstrom. It’s an American departmental
store chain that is known for luxury. Nordstrom is performed better than other retailers in
America. Customer service is the thing on which the success of the company is built.

CUSTOMERS MANAGEMENT PRACTICES AT NORDSTROM


Nordstrom sales are increasing every year because of its best customer experience. Every
new employee is provided with a company’s employee handbook which tells them a single
rule while working, “Use good judgment in all situation”.

 A Nordstrom employee never or rarely points towards things. If a customer asks him/her
about where something is located, they will walk with you till that location.
 Salespersons at Nordstrom are educated to walk and hand over the packed purchased
items around the counter to you not just giving it to customers over the counter.
 A salesperson at Nordstrom can offer you to do total and record your purchase without
standing in a line.
 In stores, employees are generally trained to pick up the phone within two rings.

Employees are motivated by the company to be adaptive and flexible. The knowledge and
the power of best judgment are fully used by their employees. Nordstrom takes back every
product that a customer brings back and not a single question asked.

NIKE
Nike is an American MNC which is involved in design, development, and manufacturing with
the international marketing of its products. It was founded in 1964 as Blue-Ribbon Sports.
The company manufactures shoes for men, women, and kids with sports clothing including
socks. “JUST DO IT” is the slogan used by the company. The swoosh symbol of the firm helps
the company to place the brand in the minds of customers.

In 2017, Nike announces Triple Double Plan which outlines their desire to double
innovation, double speed to market, and double direct connection to customers. Nike has a
Direct to Customer (DTC) marketing strategy which helps the company in removing market
intermediaries and saving products from inflation in prices. As of now, Nike has invested
more than $2 billion in Nike Direct which is the DTC division of its business currently.
However, 70% of Nike's business is done through wholesale distribution with nearby 30,000
partners and want to reduce the same. This is done because the fewer the partner the
easier it is to monitor

CUSTOMERS MANAGEMENT PRACTICES AT NIKE

The company looks for a meaningful and long-term relationship, not immediate profits. In
2010, the company launched Nike Digital Sports (NDS). It helped the customer to track their
performance meanwhile the company collected and stored data of their customer needs
and trends and for a long time they were able to provide as per the need of customers. Nike
is trying to get rid of those wholesalers who are not able to differentiate between Nike and
its competitors.

Nike is focusing more on its exclusive stores as they have their employees who have good
knowledge of their products and able to suggest products to customers as per needs. Nike
Fuel and Nike+ both record data of customers and track their walking and running distance
and before making a new purchase at the store they can provide the exact product which
fulfills the need of the customer. This gives a great experience to their customers at stores.
They create a textured customer profile and communicate effectively with their customers.

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