There is an increasing demand for high-quality customer service in the global market today (Lamb, Hair & McDaniel, 2012). Many companies are looking forward and ought to win product loyalty form their customer which depends on the set of activities carried out by companies and marketers to add value to the service the customers receive after buying a product constantly and increasingly from the company (Brown, 2000). When customers receive more service in terms of satisfaction from a product they tend to buy more of it. For any company to remain viable in trade arena it should be able to create and hold firmly its customer’s loyalty (Lamb, Hair & McDaniel, 2012).
It should be noted that, achieving customer loyalty requires companies to change their employees’ attitudes towards customers. This can include showing interest in serving customers or demonstrating general courtesy towards customers (Brown, 2000). The company has to build a friendly environment for the customers; Nordstrom is not exceptional for these important changes.
Exclusive brand such as Louis Vuitton can easily grow and stay afresh in the market through several the uses of several strategies, one of the ways of doing so is through never compromising in the face of challenging operational obstacles, the brand should always be able to control every aspect of the business. This is a unique approach and which has driven Louis Vuitton to be the leading as the most successful luxury brand in China.
The brand should also be able to build strong customer base, this can first ensured by carrying out integrated customer survey in the market (Lamb, Hair & McDaniel, 2012), that will enable the company to operate from consumer point of view and thus always being the best in the market in terms of predicting and meeting consumer needs.
The modernity in business should not lead companies to forgetting the significance of maintaining the balance between the tradition and innovation (Brown, 2000). Louis Vuitton exploits a blend of modernity and traditional versions, through that the company has been the leading in creativity and the sometimes the best in respect for quality and thus winning customer loyalty.
The Louis Vuitton brands are not only highest-priced but also of highest-quality, the customers experience a sense of prestige by buying and using those products. Products like watches, jewellery and exclusive resorts are considered luxury items (Lamb, Hair & McDaniel, 2012). Despite the high prices for the products, the customers are made to feel good once they purchase and put on the products.
Louis Vuitton Company has been associated with forgery that is a criminal activity and can lead to tragic activities if not curbed. It is good however to note that, the counterfeiting habit can be taken as a strength by the original brands. Counterfeiting gives the original brands the access to the new market and be a benchmark for brand’s health, one the customers realize that Louis Vuitton Company has been selling low quality products at very high prices (Lamb, Hair & McDaniel, 2012), they will want to find the original products, and this will lead to a larger market opportunity for genuine, sales migrate from counterfeit to original. Counterfeiter gives original brand an opportunity to exploit the market leading to increased awareness and thus minimizing competition (Lamb, Hair & McDaniel, 2012). Therefore there are negatives of Louis Vuitton counterfeiting but if the fake is distinguishable from the original then the genuine brand owner is presented with opportunity such as increased awareness, access to new markets, closing of the competition among other benefits.
Customer loyalty is becoming a necessity for many companies; Nordstrom is a good example of a company which has managed to win substantial customer loyalty through several strategies. The recent ideas by the company however, require more adds to ensure its sustainability in the competitive market (Brown, 2000). Since the company offers goods similar which are also sold by other companies, it should be able to ensure complete differentiation of its products from those offered by its competitors in order to boost its customer loyalty through better service delivery (Lamb, Hair & McDaniel, 2012).
The current strategies used by the company include contracts with high-fashion celebrities, use of billboards, print adds. Nordstrom company should seek to do business in new markets which have similar taste, preferences, culture, and fashion in order to take advantage of the its familiarity with the market, this will give room for the expansion of the business in a easy manner since no expenses of market research (Lamb, Hair & McDaniel, 2012). It is important for Nordstrom also to maximize on serving the customers who purchase from their stores regularly.
The company should endeavor to know its customers, this would create a friendlier environment where customers would feel recognized and valued. Nordstrom Company again should be able to distinguish between its customers’ need and wants; this would help them do the right thing to their customers (Brown, 2000). The company would better also introduce private sales with its loyal customers and introduce marketing through technology which would enable customers to reach the company stores on-line and may be make orders online.
Nordstrom Company is subject to execution and merchandising risks, the implementation and use of new strategies systems are associated with more risks compared to the strategies that the company is used to, and successful companies however, have to be bold enough to adopt changes in their business (Lamb, Hair & McDaniel, 2012). Changing fashion trend and lifestyles risk remains a threat to Nordstrom Company, the fact is that it is impossible to forecast fashion trends. Nordstrom Company operates in many segments which make it even challenging to collect information often in order to keep the company up to date with the trends (Wrenn, Kotler & Shawchuck, 2010). Furthermore, the vast market covered by the company provides potential grounds for new market entrants and competitors to get some of the segments by adopting tighter specialization (Lamb, Hair & McDaniel, 2012).
Nordstrom Company operates in highly competitive market with other companies like The Gap Inc. which is a global specialty offering clothing, personal care products for both men and women over several braches such as in Canada, the United kingdom, France, Ireland and in other states (Brown, 2000). Another company which competes with Nordstrom is the Limited Brands, Inc. with headquarters at Ohio United States, this company is also specialty in retail business focused in women’s intimate and other clothing, beauty and personal care products which make customers feel good (Brown, 2000).
The third company which competes with Nordstrom is the Abercrombie & Fitch Company; just like the other two companies, the company is a specialty retailer that operates direct-to-customer selling sportswear clothing, personal care products and accessories for men, women and children (Dodds, 2003). The competition is severe because all the named and other companies are operating in the same market and offering the same product or rather simply because the product sold by the company is also sold by other companies in similar quantities, customers are therefore facing multiple of retail options.
The Nordstrom business is also seasonal; the sales are high during the second and the fourth quarter. This therefore implies that, the company is ever exposed to high risks in case the season fails to deliver the expected sales (Wrenn, Kotler & Shawchuck, 2010). The company again is not immune from other factors like diminished customer confidence and spending behavior influenced by credit availability, unemployment levels, as well as high household debt which determine what is left for spending on company’s products (Lamb, Hair & McDaniel, 2012).
How does the Ritz-Carlton match up to competitive hotels?
In the case of Ritz-Carton, it is important to note that, he does not just ‘match-up’ to its competitive hotels, he does more by going beyond guests’ expectations in that competitive set. However there are incidences which can serve as the ‘how’s’ through which Ritz-Carton matched up to be the best hotel. The company was the first to provide several services in the hotel including private bath, fresh flowers in the rooms among other admirable treats for guests (Wrenn, Kotler & Shawchuck, 2010). To be the best hotel for the guests, Ritz had to adapt strategies like taking care of his internal customers, and this makes the guests happy. The company again empowered the employees to handle the customers’ needs effectively, by using the principles ‘ we are ladies and gentlemen serving ladies and gentlemen’ makes the employees cheerful when serving the guests and customers; this for a long time has made guests and customers loyal to Ritz and keeps on going back for more from the company. The employees ‘go out’ of their ways and venture into the sole goal for the hotel of creating the best experience for the visitors.
The key differences
Ritz-Carton is not unique compared to other hotels, the only difference comes in the ways the hotel makes the best out of the normal ways of doing things, for instance, the company minimizes turnover by ensuring that all the workers are fully trained, the skills offered to workers boosts their morale and enables them to offer exceptional services for the company (Lamb, Hair & McDaniel, 2012). The key differences between companies are how the company devotes its resources to train and also treat the staff.
Ritz-Carlton has been keen in first empowering its employees as the most important stakeholder and who are in direct contact with the guests, by so doing the company has created a ‘wow’ moment for the guests, it’s a ‘wow’ moment for the guests since their needs are always anticipated by the highly skilled staff (Wrenn, Kotler & Shawchuck, 2010).
The ‘wow stories’ and their significance
The importance of the ‘wow stories’ in customer service for luxury hotels like the Ritz-Carlton may be a sign of the hotels difference from other similar hotels, the guests are surprised to meet staffs who correctly knows what is best for customers, many of the hotels have workers who relies on directives from the customer on what is to be done, for Ritz-Carlton the case is different, for many years the workers show high knowledge in customer psychology thus making the hotel one of the most best places to visit (Dodds, 2003). The workers like the chef who ordered the eggs at personal level by requesting his mother to buy and bring the product for the sick child; this is a more than a normal service delivered out of love for customers.
The hotel staff obtains the customer information during the first visit and makes use of it during the customers’ next visit to the hotel. Customers are referred to by names making them feel ‘wow’, when the customers spend night in the hotel they are warmly served, in the morning they find newspapers outside the door for them, they feel part of the hotel as a result and would like to be ‘home’ again and again where you are provided with a feeling of satisfaction without having to request, this makes customers feel that they are among people who care about them as individuals (Lamb, Hair & McDaniel, 2012). The staff keeps getting information from customers through conversation on phones; this helps them improve their services from day to day.
Brown, M. G. (2000). Winning score: How to design and implement organizational scorecards. Portland, or: Productivity.
Dodds, B. (2003). Managing customer value: Essentials of product quality, customer service, and price decisions. Lanham, MD: University Press of America.
Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2012). Essentials of marketing. Mason, Ohio: South-Western Cengage Learning.
Wrenn, B., Kotler, P., & Shawchuck, N. (2010). Building strong congregations: Attracting, serving, and developing your membership. Hagerstown, MD: Autumn House Pub.