1. “Retail’s New Odd Couple”
By: Ann Zimmerman& Dana Mattioli
Source: Wall Street Journal
Published: July 10, 2012
Group 1
Kelly Aranibar, YasminBagha, Emily Bartlett and Nick Cafferky

2. Background

3. Summary of Article
• An experiment that “pushes retailing’s boundaries.”
• Includes a limited collection of 24 designers
• Prices range from $7.99-499.99, average $60.00
• Products
• Label includes both Target and Neiman Marcus logos.
• Reasoning for partnership
• Gamble for Neiman Marcus

4. Commercial

5. Pros
Target Neiman Marcus
• Partnerships are met • Products are more accessible
with continued success. to a broader range of
customers.
• Missoni
• Specifically younger
• Jason Wu customers
• Zac Posen • New target markets
• Competition • More consumer exposure for
• H&M and Kohl’s designers.
• Profit • Tone down “snobbish
practices.”
• Exclusive products keep
shoppers in stores.

6. Cons
Target Neiman Marcus
• Confusion among • Erode luxury chain’s
customer base. exclusive appeal.
• Lack of consistency • Goods must be
• Pricing produced in bulk.
• Reduces quality
• Lack of awareness
• Reduces demand
• Advertising for products.

7. Consumer Perspective
• Cognitive Dissonance
• Social judgment theory
• McGuire’s psychological motives
• The need to categorize
• Reference Price

8. Critique
• Majority of Target customers will think the Neiman Marcus
products are too expensive.
• Neiman Marcus could lose credibility among its loyal
customers.
• “Hush-hush” approach
• Commercial
• Ultimately, this experiment will erode the exclusivity of the
luxury retailer.

9. Discussion
1) What do you think about this experiment?
2) Which company do you think works to benefit most
from this experiment, and why?
3) What do you think about the advertising in terms of
the commercial we showed earlier?
4) Do you think this could lead to the future mergers of
high- and low-end retailers?

10. Works Cited