Individual project 5 Final Assignment Example | Topics and Well Written Essays - 1500 words

Individual project 5 Final - Assignment Example The market research was conducted through the pragmatic approach. The pragmatic approach secures effective cost benefit analysis of the current business environments (Bradley, 2007). Nordstrom Inc is a fashion store targeting the high-end American market. It was initiated by John Nordstrom and Carl Wallin; and its current headquarters is in Seattle area of Washington DC. The company started with the shoe business; but it has grown tremendously and currently stocks cosmetics, accessories, jewelry, handbags and clothing fragrances. Currently the company has over 260 stores in 35 states in America. The competitors for Nordstrom Inc in the luxury clothing sector include Lord and Taylor, Saks Fifth Avenue, Bloomindales and Neiman Marcas. The company is also implementing global strategies; for example it has operational stores in Canada. In the USA luxury clothing industry, Nordstrom Inc has the largest share of the store locations, and the biggest geographic representation (Gupta, 2005). Segmentation analysis entails dividing a big population into small segments so as to realize socio-demographic determinants of desired behaviors. The characteristics of members of the subpopulation are relatively similar statistically. Common factors of study in segmentation are demographic, behavioral or psychological variables like; education, age, attitudes, income and even sexual orientation (Kotler, 2006). Segmentation analysis integrates these factors into correlated attributes that identify specific population segments. Segmentation enables companies like Nordstrom Inc to produce the desired goods and services that address the requirements of the unique market segments. This will ensure increased market share, and thereafter improved sales and profit margins. Business segmentation analysis supports decision making in companies like Nordstrom. Segmentation is applied in clothing industry to ensure adequate understanding of the lifestyles, concerns or values of the