Neiman Marcus 2003 Annual Report Download - page 6

furnishings, linens, decorative accessories and tabletop items, while the Chef's Catalog brand offers gourmet cookware and high-end
kitchenware. Neiman Marcus Direct also operates the neimanmarcus.com, bergdorfgoodman.com, horchow.com and
chefscatalog.com websites, offering luxury goods, home furnishings and high quality cookware to the online consumer.
On May 26, 2004, the Company announced that it has decided to explore strategic alternatives relating to its Chef's Catalog brand.
These alternatives may include a sale, merger, joint venture or other business combination. Chef's Catalog is a multi-channel retailer
of professional-quality kitchenware with revenues in 2004 of approximately $73 million.
Brand Development Companies. The Company owns a 51 percent interest in Gurwitch Products, LLC, which distributes and markets
the Laura Mercier cosmetic line, and a 56 percent interest in Kate Spade LLC, a manufacturer and retailer of high-end designer
handbags and accessories (hereafter, collectively referred to as the Brand Development Companies).
Customer Service and Marketing
The Company is committed to providing the highest levels of service to its customers, which coupled with the Company's unique
product assortment and the inviting ambiance of its stores, provide for an inviting shopping experience. Critical elements to the
Company's customer service approach are:
• Knowledgeable and qualified sales associates.
• Marketing programs designed to promote customer awareness of the Company's offerings of the latest fashion trends.
• Loyalty programs designed to cultivate long-term relationships with the Company's customers.
• Extension of credit to the Company's customers through its proprietary credit card program.
Sales Associates. The Company seeks to maintain a sales force of knowledgeable and qualified sales associates to deliver personal
attention and service to the Company's affluent customers. Compensation for the Company's sales associates is commission-based.
Sales associates receive training in the areas of customer service, selling skills and product knowledge. Sales associates participate in
active clienteling programs designed to maintain contact with their customers and to ensure their customers are aware of the latest
merchandise offerings and fashion trends presented in the Company's stores. In many cases, the sales associate acts as the personal
style advisor to the customer. The Company actively monitors and analyzes the service levels in its stores.
Marketing Programs. The Company conducts a wide variety of marketing programs to support the Company's sales associates in the
communication of fashion trends to its customers. The programs include both in-store events and print media.
The Company maintains an active calendar of in-store events to promote its sales efforts. The activities include in-store visits and
trunk shows by leading designers featuring the newest fashions from the designer, in-store promotions of the merchandise of selected
designers or merchandise categories, often through events conducted in connection with the Company's loyalty programs, and
participation in charitable functions in each of the Company's markets.
Through its print media programs, the Company mails various publications to its customers communicating upcoming in-store events,
new merchandise offerings and fashion trends. In connection with these programs, Neiman Marcus produces The Book®
approximately eight to nine times each year. The Book® is a high-quality publication featuring the latest fashion trends and is mailed
on a targeted basis to the Company's customers.
The Company also believes that the print catalog and on-line operations of its Direct Marketing segment promote brand awareness
which benefits the operations of its retail stores.
3