E-commerce is an important aspect of the modern retail market and arguably the primary form of retail in the future. The success of e-commerce has seen traditional brick and mortar retailers gradually adopt an online presence. This essay evaluates two major American retailers, Banana Republic and Nordstrom Inc., with regard to their online marketing strategies. Specifically, the essay will compare and contrast the strategies used by the two retailers on social media by comparing their Facebook sites. Currently, Banana Republic has over two million followers while Nordstrom Inc. has over four million. The motivation for selecting the two companies stems from their general congruencies. From a careful evaluation of the two social media sites, both companies have an elaborate and effective set of strategies that have seen them attract millions of followers. The key to the superiority of Nordstrom Inc. seems to rise from its interactive nature as it retains a constant two-way communication with its target customers, unlike Banana Republic.
With 2,417,403 followers as of November 2019, the Banana Republic Facebook page is quite successful. The company created the page in June 2008 and has retained its active status since. Among the strategies applied by Banana Republic on its site is the use of multimedia content. The site of full of pictures, videos and graphic work that communicates its various messages to the public. Accompanying the multimedia content is the actual message is simple, typewritten words that lays out the message to the target customers. The multimedia content attracts the customer them the typewritten words communicates. Further, the content placed in the site keeps up with the times. For example, current content corresponds with the oncoming old season and the holiday festivities.
Delegate your assignment to our experts and they will do the rest.
The other strategy applied by Banana Republic is the use of actual well-developed ads in its social media site. The company has a reputation for developing creative ads for TV audiences. Several of these ads feature on its Facebook site making them available for target customers who aspire to watch them. Another strategy applied by Banana Republic is interconnecting between different areas of the internet. For example, the company’s Facebook page has direct links that take the customer directly to the online shop. The customer can thus see a product through an ad then use the Facebook page to connect to the online shop and buy the product.
Banana Republic does not expressly state its target customers, but the content on its site clearly shows who the company targets. Having a target market is critical in advertising, as a company may not have the resources to market to a universal market effectively as reflected in Ferrell & Hartline (2019) . Almost all of the company’s multimedia content features young adults, between twenty and forty years of age. To this end, the company utilizes star power by reflecting musicians and other celebrities wearing its products. Finally, the company also uses the social network to tout its corporate social responsibility activities, such as assisting the less fortunate and protecting the environment. As reflected in Ferrell & Hartline (2019), social justice and corporate social responsibility are key concerns for modern customers.
The Nordstrom site had 4,844,570 by November 2019, which more than double the Banana Republic Number. Further, the slight is slightly younger, having commenced in May 2009. Most of the strategies applied by Banana Republic also feature in Nordstrom Inc.’s Facebook page. For a start, Nordstrom Inc. also vividly paints out its target customer through its multimedia content. Based on an evaluation of its photos, Nordstrom Inc. targets young families who include young parents and little children. Secondly, the company also keeps up to date as it features the oncoming festive season. Further, just as with Facebook, Nordstrom Inc. utilizes multimedia content on its platform, elaborate multimedia ads, and links to its online shops. Finally, Nordstrom Inc. also touts its corporate social responsibility-related projects on its Facebook page. As reflected in Kane et al. (2015), a good reputation for the organization is fundamental to the product brand the company markets.
The first strategy where Nordstrom Inc. differs from Facebook is through its interactive nature. Nordstrom Inc. efficiently responds to the comments that customers make about its content. Further, the responses seem to attract conversation between staff members and the target customer. Further, according to Facebook, Nordstrom Inc. responds to issues raised in its network within minutes, including messages sent through Facebook Messenger. By comparison, Facebook indicates that Banana Republic responds in about a day.
The other strategy used by Nordstrom Inc. on its website, is offering incentives to direct customers. Examples of incentives include offers of money for shopping for customers who attain a certain threshold. The company also markets discounts for specific products, some as high as 60%. The specific ads that contain such incentives include a link that the target customers can use to access the online shop and take advantage of the incentives. Finally, the multimedia content used by Nordstrom Inc. is relatively simple and easy to understand. For example, the cover photo of Banana Republic has a total of eleven files placed together into one cover design. Nordstrom Inc. uses one mesmerizing photo of a woman walking across the street. The single picture is hard to ignore while the eleven photos require patience to look through.
The main reason why the relatively younger Nordstrom Inc. has more than twice as many followers as the Banana Republic site is the ability to interact with target customers. First, Banana Republic’s content is less attractive to the customer at initial perusal than Nordstrom Inc. When a customer finds eleven pictures together, the first thought maybe that the content will take too much time to sift through and study. One very effective picture will attract a potential customer long enough to read the content and consider the product. On the other hand, Banana Republic needs to appreciate that in modern marketing the power has shifted in favor of the customer as outlined in Ferrell & Hartline (2019). As indicated by Owen Shapiro, “…people now have more ability than ever to organize, mobilize, innovate, disrupt and demand ” (Shapiro, 2015, P. 18). Companies need to go out of their way to appease such a powerful customer.
However, among the first things that a customer notices after accessing the Banana Republic site is that it takes a day for the company to respond to a query or issue. The duration compares poorly to the minutes it takes Nordstrom Inc. to respond. Further, the fact that Banana Republic does not respond to comments on the site reflects a company that does not take the customer seriously. The company can turn this around by having a team standing by to respond to customers in real-time, or within a few minutes. Indeed, within a day, the customer could have ordered from a competitor and perhaps even received the delivery. A strategy that improves communication is essential in online retail.
Two powerful marketers with sufficient funds to drive their online ads have an exponentially varied following. Nordstrom Inc. joined Facebook later than Banana Republic, yet it has double its followership. The key to the success of Nordstrom Inc. is a strategy that attracts the initial attention of the target customer, followed by effective interaction. Banana Republic has a good strategy and has attracted millions of followers. However, the company needs to make some strategic adjustments as outlined above. Better selection of material to attract initial attention of customers and real-time feedback can make the difference for the marketer.
References
Ferrell, O. C., & Hartline, M. D. (2019). Marketing strategy: text and cases . Boston, Massachusetts: Cengage Learning.
Kane, G. C., Palmer, D., Phillips, A. N., & Kiron, D. (2015). Is your business ready for a digital future?. MIT Sloan management review , 56 (4), 37.
Shapiro, O. (2015) Five Revolutions That Will Shape the Future of Marketing. Canadian Institute Of Management / Institut Canadien De Gestion.
