CREATIVITY IN MARKETING BOOSTING HOLIDAY SALES FOR:
Megan Abero Caitlin Carroll Valerie Gerber Natasha Sanchez
BACKGROUND : •
Macy’s (formerly Federated Department Stores) is one of the premier retailers in the US, with Discal 2012 sales of $27.7 billion.
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The company’s focus on the upscale fashion apparel market has enabled it to address the needs of the niche market, giving it a specialized brand identity.
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The company operates the Macy’s and Bloomingdale’s brands with about 840 department stores in 45 states, the District of Columbia, Guam and Puerto Rico, and the macys.com and bloomingdales.com websites.
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The company also operates 13 Bloomingdale’s Outlet stores.
SWOT :
STRENGTHS
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Strong brand equity Strong advertising Economies of scale Ethical, socially responsible, and sustainable company with strong value Structured Code of conduct for all the company’s vendor Healthy portfolio Innovating company Bloomingdales is a subsidiary of Macy’s appeals to upscale customer to upscale customers while Macy’s offers “affordable luxury” items Large network of stores
WEAKNESSES
Macy as a declining net proDit Downturn in economy for in store shopping Lack of diversiDication in the merchandise Weak merchandise departments such as mattresses, furniture, and handbags causing Dirm money loss • Macy’s most proDitable brand (Liz Claiborne) even experiencing sale loss. • Not being able to Dind the middle ground between Wal-‐Mart’s low prices, and Bloomingdales high prices while maintaining reputation. • Macy’s has to overcome the client’s perception of the impersonality of national brand • • • •
SWOT :
OPPORTUNITIES
• Open new stores to boost revenues in the medium term • There is a growth trough overseas operation • There is a growth of sales in the online retail spending • Many smaller stores are looking to be bought out because of the recession • Merchandise such as apparel, cosmetics, and children’s clothing are experiencing fastest growth • Robotic machines to help sales such as IPods and IPads • Opportunities to buy out smaller brands because of its size
THREATS • The economic recession in the United States • The increase of the minimum wages in the United States • Intense competition in the retail stores such as Dillard’s, JC Penney, and Saks • Lower price competition • Numerous employee layoff • A change in customers has occurred over the past year, but Macy’s has not changes to satisfy customers.
PROBLEMS OPPORTUNITIES
• Shortest time span
between Thanksgiving & Christmas
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Less time to shop/budget money
• Mistrust/uncertainty in
government & economy
• ‘Tis the season •
People are cheerful, happyChristmas shopping
• Gas prices are lower
• • • • • • •
WHO IS THE TARGET?
Women Age: 25 -‐54 Graduates, working professionals Income: $75,000 + Geographic: Northeast and Midwest Race: Asian, African Americans, Caucasians Mothers
PROMOTIONAL PLAN: OBJECTIVE: Boosting holiday sales STRATEGY: 1.
Black Friday Sales start at midnight
2.
15% of home sales go to tornado victims (Midwest locations)
3.
Thanksgiving Day Parade in New York to help victims in the Philippines
4.
Free gift and picture with Santa
5.
Flash sale, certain amount of proDits to feed hungry/homeless
TACTICS: 1.
Promote Thanksgiving
2.
Boosts home sales & hits sentimental factor
3.
Partner with the Red Cross, obtain nation-‐wide coverage
4.
Spend $50 or more (in-‐store only)
5.
Promote via online, in-‐store, and mail advertisements