x Strategic Initiative: Proposal & Visualizations
TA B L E O F C O N T E N T S
Vision Statement..............................................................................................................5 Macy’s Overview.........................................................................................................6-11
Macy’s current positioning in the market............................................................6-7
Macy’s current communication and promotional activities ...............................8-9
Macy’s current target customer......................................................................10-11
Strategic Initiative..........................................................................................................12
Chosen Technology............................................................................................ 13
Proposed Brand Collaboration ...............................................................................14-17
Product selection.............................................................................................16-17
Justification of Trends....................................................................................................19 Market Analysis.........................................................................................................20-21 Future Competition...................................................................................................22-23 Proposed target customer........................................................................................24-26 Store Design............................................................................................................28-35 Inspiration Board.......................................................................................................... 28 Store Layout...................................................................................................................29 Process of Design....................................................................................................29-31
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Final Renders............................................................................................................32-35 Promotional Plan....................................................................................................36-45 Launch......................................................................................................................36-37 Operations, time & action.........................................................................................38-39 Advertisements .......................................................................................................40-43 . App..........................................................................................................................44-45 Financial Plan.........................................................................................................46-47 Bibliography ..........................................................................................................48-49
Strategic Initiative: Proposal & visualizations By Adriana Jastram Professor Oscar Betancur
Macy’s Herald Square, NYC
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V I S I O N S TAT E M E N T
Macy’s Inc. is one of the premier Omni-channel retailers in the United States
selling merchandise including apparel and accessories, cosmetics, home goods, and other consumer goods. Macy’s has been intending to attract a younger customer base to the store in order to expand it. Their most recent effort towards this goal consisted on the EtsyxMacy’s collaboration in 2016; The purpose of my project, similar to the Etsy x Macy’s collaboration it is to propose and justify an appropriate brand along with a strategic initiative that will attract a new range of customers to Macy’s.
The brand I chose for this partnership is Herbivore Botanicals. The skin care
company has a variety of products focused on body, face, and hair care that are handmade, organic, truly effective and beautifully packaged. Macy’s does not have a wide variety of organic products, and lacks handmade products (a growing trend within millennial) allowing Herbivore Botanicals to grab the attention of already existing and new customers. The initiative
is to introduce Herbivore Botanicals along with EON Reality augmented interactive
mirror with the goal of giving customers a fun and interactive shopping experience. The location would take place in Macy’s Herald Square in NYC. Customers will be able to choose ingredients and products according to their specific needs and they will also be able to choose specific ingredients to make their own products, or have them specifically made for them. To introduce this unique experience I will research and analyze Macy’s Inc., the skincare industry, and the interactive technology being used followed by a launch. In order to track the success, I will collect data 6 months post launch on sales increases and target customers.
MACY’S CURRENT POSITIONING IN THE MARKET
STRENGHTS
OPPORTUNITIES
-it is quickly growing as an omnichannel retailer
-To extend its online shopping website into a
carries exclusive brands -Excellent customer relationship management -Strong brand name recognition -It has a good online reputation, which has then created a strong demand for Macy’s products.
-shop online. -There are new emerging markets demanding lifestyle products. The purchasing power of new markets has become bigger. Collaborating with
-It has become both strong online and offline.
other brands will further expand its market and
WEAKNESSES
T H R E AT S
-Its international customers can only shop online.
-Macy’s has strong competitors such as
-Numerous use of coupons and discounts leads to fewer products but mass selling.
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larger costumer base since most customers
attract new ones.
Dillard’s and JC Penney.
“Our goal is to be a retailer with the ability to see opportunity on the horizon and have a clear path for capitalizing on it. To do so, we are moving faster than ever before, employing more technology and concentrating our resources on those elements most important to our core customers.�
C U R R E N T C O M M M U N I C AT I O N & PROMOTIONAL ACTIVITIES
Macy’s spent $1.6 billion on U.S. advertising in 2014, which was down 1.3% from the previous year. The department store chain and online retailer placed 19th among the 200 leading national advertisers, down one spot from the previous year, according to the Ad Age report, which reviewed data provided by the market research firm Kantar Media.
Macy’s has a catalog which they release every month either printed or emailed. Their
website contains different promotions and insights about the department store and has customer service. They always have in-store and special events in which their customers are all invited to attend. All of their events have certain promotions such as “Win a pair of tickets to the iHeart radio Jingle ball”. Macy’s sends emails and flyers in a daily basis about current promotions and new products online and in store. They believe in the communication with customers through promotions, advertisements and social media.
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14,192,169 likes. Uses promo ads with videos and company insights.
2,555 posts, 822k followers. Posts at least once a day.
49 boards, 976.6k pins, 29 likes and 229.8k follower. Inspiration on fashion, must haves and gifts.
71.5 tweets, 944k followers, 5,422 likes. Good communication with
customers with promotional ads and videos. Responds to posts
YouTube
40,998 subscribers, and has an average of 200 videos. Posts every week.
CURRENT CRM ACTIVITIES -Direct marketing, loyalty cards, and additional services -Macy’s has a rewards and credit card program. The reward program consists of getting points every time you shop and get free gifts and discounts depending on how many points the customer has or the promotions of the time.
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C U R R E N T TA R G E T C U S T O M E R Macy’s target customers are the American middle class/middle aged women who prefer quality products at reasonable prices. Macy’s is focusing now on millennial from ages 14 to 34. Millennial are well informed and follow online networks. Millennial form $1.3 trillion of the annual spending and at least $430 billion and that is seen to be spent on products of their choice. One of Macy’s biggest strategies was to focus on product assortment based on their store location. Macy’s ensures the tastes of their customers and reflects that in their merchandise such as size, fit, style and color for every store. It also keeps in mind the tastes of the different multicultural buyers because they form a considerable part of their customers.
Location: Hoboken, New Jersey Education: Bachelor's Degree in finance Occupation: Real Estate Agent Income: $64,000 Marrital Status: married with a daughter Behavioural: Likes to spend quality clothing at affordable prices & Is not technology savvy. She enjoys shopping for her children. Lifestyle: enjoys spending time with her daughter going to the cinmea and parj on the weekends. She loves reading novels. Favorite Brands: Alfani and Giani Bernini shops outfits for work and weekends.
S T R AT E G I C I N I T I AT I V E MY strategic initiative is to increase sales and foot traffic within Macy’s department stores by introducing Herbivore Botanicals along with Eon Interactive Mirrors. The strategic initiative intends to expand Macy’s customer base by attracting more millennial into the store allowing them to have a knowledgeable, fun and exclusive shopping experience.
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CHOSEN TECHNOLOGY
EON interactive mirrors is my chosen technology. The company EON
Reality is the world leader in Augmented Reality based knowledge transfer for industry, education, and entertainment. The EON Interactive Mirror is an augmented reality and gesture input based solution controlled by intuitive gesture commands, allowing anyone of any age to use it. The mirror features a full skeleton tracking in real time up to approximately 40 cm. It allows quick import of 3D and CAD data. The mirror can be paired with various devices including touch screens, printers, and external applications. The mirror includes all hardware, software licenses and custom developed 3D content.
The focus is on EON 9 Professional software, which adjusts to my initiative as follows: 1. The software allows the user to create virtual replicas of products and scenarios helping to interactively and visually configure, demonstrate, plan, support and customize products. 2.These features will allow customers to interact with the mirror and to gain knowledge about the benefits of the products as well as to customize their own products, in addition to the gift sets to fit their needs. 3. The technology will also allow the customer with any acne or skin problems externally by helping them acknowledge any external problems they are dealing
with and showing them the benefits of using Herbivore products and how they will affect them over time in a positive way. 4. Customers will be able to see each component of each product, she is going to be able to filter according to needs and preferences to display the best matches. In addition, she will be able to make her own products.
P R O P O S E D B R A N D C O L L A B O R AT I O N
Herbivore, the proposed brand introduction to Macy’s Herald Square is an organic skincare
brand founded in 2011 by Julia Wills and Alexander Kummerow in their Seattle kitchen. The products contain ingredients that are exclusively therapeutic. Therefore, fillers are not used making herbivore products highly concentrated; a rarity in the skincare industry. The formulas are handmade from scratch and tested on real people, never on animals. Ingredients range from French pink clay to Brazilian gemstones. Treatments are formulated to combine essential vitamins, minerals, and botanicals. Another special aspect about the brand is that ingredients are 100% disclosed and customers are able to make informed decisions regarding their purchases. created with: Natural ingredients, plant-based food-grade cold-pressed oils, steam distilled therapeutic-grade essential oils, GMO free soy wax, recyclable and reusable packaging, many certified organic ingredients. created without: Synthetic ingredients, parabens, sodium laurel sulfate, phthalates, chemicals, fillers, animal testing, mineral oils, petroleum.
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Herbivore co-founders, husband and wife Julia and Alex
PRODUCT SELECTION FACE
Bamboo Charcoal Cleansing Bar Soap $12.00
Pink Clay Cleansing Bar Soap $12.00
Lapis Facial Oil $72.00
Orchid Facial Oil $64.00
Phoenix Facial Oil $88.00
Blue Tansy AHA + BHA Resurfacing Clarity Mask $48.00
Phoenix Facial Oil Roller $28.00
Rose Hibiscus Hydrating Face Mist $ 16.00
Blue Clay Spot Treatment Mask $22.00
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Orchid Facial Oil $72.00
Brighten Pineapple + Gemstone Mask $48.00
Pink Clay Exfoliating Mask $22.00
BODY
After Sun Soothing Aloe Mist $20.00
Citrine Body Oil from $26.00
Jasmine Body Oil From $26.00
Coconut Soak from $18.00
Coco Rose Body Polish $36.00
CALM Bath Salts $18.00
DETOX Bath Salts $18.00
Bamboo Charcoal Cleansing Bar Soap $12.00
Coco Rose Lip Polish $18.00
Coco Rose Lip Tint $24.00
Coco Rose Lip Collection $ 49.00
LIPS
Coco Rose Lip Conditioner $22.00
J U S T I F I C AT I O N O F T R E N D S
The beauty industry is one of the largest industries in the world including cosmetics, skin
care, hair care and removal, fragrances, nail care and spa therapy. One of the reasons Herbivore is a great introduction to Macy’s is because the products are up to date with the latest trends in the Industry. Trends that justify our initiative include:
Natural & Skin Care Products The organic skin care market is listed by Euromonitor as growing quickly, accelerated by K-beauty’s influential emphasis on botanical ingredients, coupled with increased concerns about the use of harsh chemicals. Consumers are demanding paraben-, sulfate- and phthalate-free products. Additionally, 21% of US respondents reported having sensitive skin, compounding these concerns. Herbivore products are 100% organic following the increasingly growing trend. Face Masks Face masks and sheet masks are an outstanding focus of South Korean innovation and new product development, growing 11% in 2015 according to Euromonitor, converting face masks in the fastest growing category in US skin care. Face masks are practical since they address numerous skin concerns simultaneously, from acne and wrinkles to sun spots and large pores. Face masks typically contain larger concentrations of active ingredients and are advertised as a fast-acting stronger alternative to moisturizers, cleansers, and other treatments. Herbivore contains four different face masks that have distinct key functions (brightening, spot treatment, exfoliating, & clarifying) aligning with the popular trend among millennial. Premium Skin care sets/ Kits According to Euromonitor, Premium skin care sets/kits’ represented a current value growth of 13% in 2015. Selling a set of products which target specific skin concerns is effective as it is likely that customers will attain better results from using a bundle of products as opposed to a single one. Herbivore currently sells a variety of skincare sets as well as other categories such as meditation books in combination with skincare products.
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Multitasking Products Multi-tasking products is another trend. As women tend to live very busy lives, products that do double or triple duty will appeal to them. Makeup formulas that contain SPF, have moisturizing properties, and brightening benefits and color cosmetic crayons that can multi-task are among the trends that will continue to intrigue women in 2016. The category of BB creams in particular is driving this substitution trend as they tend to incorporate sun protection as well as anti-aging, moisturizing and brightening ingredients in conjunction with the immediate visual impact of color pigment. The multitasking products already existing within the Herbivore assortment are colored lip treatments. Since Herbivore is not known as a makeup brand, we would be introducing SPF hydrating face creams as an exclusive collaboration between Macy’s and Etsy. Blogging Social media is one of the biggest influences in how women discover and engage with beauty brands. Researchers found that 54% of women felt branded visual content made them feel interested in a product. Brands should consider stepping up their content programs to increase engagement, exploring platforms such as Snapchat, Instagram, and YouTube, and partnering with influencers to bring their brand to a larger audience. For my product launch I’m inviting influential bloggers Estee Lalonde and 2manybloggers, experts in the areas of well being, with whom I will also be partnering for the ongoing marketing campaign.
Individualism Millennials with the ability to craft their own products is a driving force in the beauty industry. Millennials and their younger cohorts, Generation Z, are known for customizing almost everything. Brands that make their products about their consumer and are able to react nimbly to their desires will continue to be ahead of the game since 2016. By allowing customers to personalize gift sets and products as an exclusive service of the collaboration, the individualism trend is being addressed. D.I.Y. products are going to be emphasized in the product launch by having workshops of handmade soaps, face oils and face masks in addition to an informative Youtube channel regarding handmade products.
M A R K E T A N A LY S I S
The Beauty industry generated 56.2 billion dollars in the United States alone in 2015.
As stated in Euromonitor, the skincare industry experienced increasing growth with $15.5B in 2015, a prospect of $15.84B this 2016, and it is expected to grow by $17B in 2020. According to Grand View Research, North America dominated the global organic market and is expected to grow at a CAGR of 9.8% from 2014 to 2020. There is a growing demand for organic and natural hair care, skin care and cosmetic products. In response, numerous companies have employed strategic initiatives to increase their presence in the organic market. For example, L’Oreal bought Kiehl’s in 2000 and The Body Shop in October 2013, while Clorox acquired Burt’s Bees in October 2007 to get involved in the organic market.
Due to the growth of organic skin care products within millennials, I believe that the
introduction of Herbivore Botanicals would be an appropriate choice to attract a younger consumer base into Macy’s department stores with the proposed strategic initiative.
Virtual reality has recently been playing an important role amongst retailers within
the fashion and beauty industries. Companies such as Sephora have implemented screens where customers can try on makeup virtually, giving the customer a fun and practical shopping experience. In the fashion industry, other retailers like Puma have virtual fitting rooms where customers can virtually try on clothes and purchase the clothes online. In retail stores like Adidas, mirrors display life-size clothing and customers can save the product to their smartphone for a possible purchase. In Rebecca Minkoff, the mirror shows videos and inspirational content. Customers can use the technology to request that associates prepare fitting rooms, order drinks, or change environment lighting. Also, the mirror identifies other colors and sizes available for each product. Sephora has been particularly successful in personalizing products for each customer’s unique needs with their skincare, color, fragrance IQ tests in addition to the product filter in the screen.
The concept of organic skincare products targeting millennials places Lush, Fresh,
Origins, The Body Shop, Sepora, ULTA as well as Birchbox as some of the strongest competitors of the partnership. However, these competitors do not offer the service of D.I.Y and customized products positioning Hervibore Botanicals in Macy’s uniquely in the market.
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U.S. skincare market growth, 2015-2020 (USD Million)
17,500 17,000 16,500 16,000 15,500 15,000 14,500
2015
2016
2017
2018
2019
U.S. organic skin care market revenue by product, 2012-2022 (USD Million)
2500 2,000 1,500 1,000 500
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Face Cream
Body Lotion
2020
FUTURE COMPETITION The Body Shop The retailer has an informative, customizable aspect in their websites containing filters that include formulation addressing customers who have concerns regarding certain chemicals in the products; these can be filtered by ingredients and the benefits of each ingredient are clearly explained. However, they do not offer this service in store. Birchbox The retailer doesn’t offer a retail experience, technology is not based on tracking stress areas, and customization is offered in building gift sets but is not specific to the product. Their services are based on providing a “surprise” that is personalized to the customer’s needs but ingredient information is not provided, there is no educational information. Lush the retailer offers spa services but there is no technology in store. Bath and Body Works is focused on bath and shower and provides services such as aromatherapy and at-home spa treatments, massages and pedicures in some stores, and image makeover. However, no similar technology is employed. Sephora A leading retailer employing virtual technology in store with virtual reality makeup, color, skincare, and fragrance IQ in their screens. Sephora is not focused on organic ingredients and educating customers about them. Additionally, there is no customization regarding product ingredients and no technology that identifies stress areas.
Customization is common among beauty and fashion retailers regarding cosmetics or styles
tailored to specific needs in skincare, beauty, or fashion. However, customized gift sets were only found in Birchbox while ingredient customization is not available. Lush and The Body Shop offer information regarding ingredients and benefits in their websites,but they do not have education technology in store. Additionally, the medical technology of identifying stress areas was not found among other skin care retailers, which positions the initiative as innovative in the skincare market. Sephora, Lush, Birchbox, The Body Shop, and Origins are amongst the strongest competitors of the Herbivore x Macy’s collaboration. The following perceptual map shows various competitors from the collaboration as well as from Herbivore. The Map shows how Herbivore is positioned in the market in Terms of how exclusive and natural it is in comparison to its competitors.
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Premium
0% Natural
100% Natural
Mass Market
P R O P O S E D TA R G E T C U S T O M E R
Traditional ways of shopping are slowly changing because the millennial generation is
finding new ways to shop since they are connected to technology. The millennial consumer wants to shop with brands that understand their needs, and many millennials believe department stores aren't exciting. They believe department stores are overwhelming and that they do not provide an engaging experience. Since the majority of millennials would rather spend their money on experiences, the use of interactive screens in Macy’s will draw the millennial customer into the store for something new and exciting.
Herbivore Botanicals targets millennial women between the ages from 21-36. I believe
that the target customer for the partnership fits in best with the Eclectic psychographic segment, which is made up of 72% women. Health and beauty brands specifically grab their interest and they purchase in high amounts. This segment is always aware of the brand they are purchasing from but it is tough to gain their customer loyalty. Eclectics want to have easy access to product information and depend on recommendations to decide on their final purchase. Therefore, Eclectics fit right in with the Macy’s and Herbivore Botanicals collaboration.
The Eclectic millennial is college educated, enjoys leisure activities and spa days. She
prefers natural ingredients in the beauty products she uses. She prefers retailers who take social & environmental issues seriously and practice animal free testing. She is also concerned with the importance of sustainability. She is comfortable with technology and she is loyal to the brands she shops with.
The Herbivore x Macy’s Customer values handmade goods, enjoying the occasional
craft fair. Since she was raised in New York City, she is used to interacting with people from many different backgrounds resulting her to have an open mind.
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HANNAH
EXPERIENCER/ ACHIEVER
-Location: New York City
-Education: bachelor’s degree in English Literature -Occupation: freelance writer -Income: $60,000
-Marrital status: single
-Lifestyle: Leisure activities include reading, yoga, & galleries. She uses organic products and eats organic as well.
-Behavioral: technology savvy. Shares life & work via social media. Shops online & in brick & mortar stores. -She is passionate about animal welfare and owns a shelter dog named Dandy. -Her Favorite brands are LUSH, reformation and Stella Mccartney.
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LAUREN
EXPERIENCER/ THINKER
-Location: New York City
-Education: Bachelor's degree in business. -Marital Status: married with one child
-Occupation: Marketing manager in Maiyet. -Income: $123,000
-Behavioral: reads Vogue and Nylon. Mainly buys in brick and mortar stores. Regularly goes to the spa -She has sensitive skin and is very cautions about the skincare products she puts on her skin. - Her favorite brands are Prabal Gurung, Eileen Fisher, origins and LUSH.
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21 ASHLEY
EXPERIENCER/ THINKER
-Location: New York City
-Education: Bachelor’s degree in environmental engineering. -Marital Status: single
-Occupation: Student in NYU. -Income: $40,000
-Behavioral: Buys both in brick & mortar and online. - She is tech Savvy and well versed in social media platforms - Her favorite brands are Reformation, Maiyet, Patagonia and the Body Shop.
STORE DESIGN
In order to represent the brand identity, the design of Herbivore Botanicals x
Macy’s is inspired in Dutch minimalism combined with a nature aspect. The store will be placed in the beauty section of Macy’s next to Origins, Estee Laudeer, and Bobby Brown.
I N S P I R AT I O N B O A R D
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S T O R E L AY O U T
STORE BIRDS EYE VIEW
PROCESS OF DESIGN FRONT VIEW
SIDE VIEW D . I . Y. B A R & I N T E R A C T I V E S C R E E N
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SIDE VIEW D . I . Y. B A R & F R O N T D E S K
R E N D E R E D S PA C E FRONT VIEW
SIDE VIEW D.I.Y BAR & INTERACTIVE SCREEN
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SIDE VIEW D . I . Y. B A R & F R O N T D E S K
FRONT VIEW V I S U A L I Z AT I O N O F P R O D U C T S
FRONT VIEW V I S U A L I Z AT I O N O F P R O D U C T ( C U )
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SIDE VIEW (PRODUCT TESTING IN SINKS) V I S U A L I Z AT I O N O F P R O D U C T ( C U )
PROMOTIONAL PLAN
The promotional activities that will take part of the strategic initiative will include digital
marketing, social media, magazine, flyer ads, and bloggers. The majority of the promotion would be through the Macy’s website and the use of Facebook, Instagram and Twitter. Through these platforms the public will be informed about the new collaboration of the brand and the strategic initiative that would be introduced in Macy’s. With the collaboration
with instagram bloggers @esteelalonde and @2manybloggers I plan to get the word out there about the different products that will be offered. Giveaways will be given throughout Etsy’s and Macy’s social media. For the actual launch on January 10, 2018 a combination of social media and traditional advertisements will be used to get the word out about the Collaboration, The strategic initiative, the products, the activities being held and customer experience within the store. All of the platforms will continue to be in use Post Launch, in order to continue spreading the word about the collaboration and the initiative. During this stage of the launch, the idea is to encourage the customers to share their love for the products and talk about their experience at the store. Every few months followers will be encouraged to try some of the new products and share their thoughts on their sites, bringing in even more buzz about the collaboration.
LAUNCH
The launch of the collaboration will be held at the Macy’s flagship store located
in New York City. This event will be held by the owners Julia and Alex, who will give
a speech on the signi cance of using organic products not only for our well-being, but also for the well-being of the earth. This event will give future customers a first look
at the products as well as an up close and personal look at how the EON interactive mirrors work. We will also have activities for guests, including a D.I.Y soap workshop
and a massage station featuring Herbivore Botanical’s organic essential oils. Bloggers
@esteelalonde and @2manybloggers will be invited to the event, to learn about the company, and the products to help the collaboration get exposure. This event should help attract a new customer base for Macy’s In conclusion, The Little Flower Soap Company would be an asset to the Macy’s store. With the company staying up to date on key trends within the beauty industry, we can offer our customers a fun, informative, and technologically advanced shopping experience with the use of the EON Interactive Mirror.
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Estee Lalonde Beauty Blogger
O P E R AT I O N S | T I M E & A C T I O N
In the beginning of January 2017 we will begin market research on different
interactive mirror companies that we feel will best suite our strategic initiative for the Macy’s/Etsy collaboration. This market research will most likely be analyzed through the months of January and February. After looking into many companies, our team decides to go with the company EON Reality, using their EON Interactive Mirror. From March until August we will be learning as much information about the mirror as possible as well working with the company on developing customized content that will suite the needs of our initiative. Our biggest feature using the mirror, will allow customers to visually be able to see their most stressed areas in the body, along with customization and information and benefits of ingredients. Therefore, from August through October we will be constantly testing, editing and retouching the software content until we meet our expectations. Around November when all of the software content is complete we will work on the motion gestures for the different categories featured on the mirror. Around late November through early December we will begin training our employees and managers on the content and how it works with a demo mirror. Late November we will be ordering our mirrors which will take about 45 days to deliver. Around December 2017 the mirrors will be delivered and set up in the store and ready to use for the grand opening and the launch of The Herbivore Botanicals shop on January 10, 2018.
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Social Media
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Facebook Instagram Twitter Blogging Advertisements Macy’s Window Displays Ads on Macy’s Website Magazine Print Ads Direct Marketing Catalog Flyers E-mails Spa Samples
Social Media Facebook Instagram Twitter Blogging Advertisements Macy’s Window Displays Ads on Macy’s Website Magazine Print Ads Direct Marketing Catalog Flyers E-mails Spa Samples
ADVERTISEMENTS WEBSITE | HOMEPAGE
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ADVERTISEMENTS
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esteelalonde To celebrate the Macy’s x Herbivore partnership, I’ll be hosting a workshop on D.I.Y. products this february 10th from 12pm to 3pm. Join me and get 20% off discount on Masks as a limited offer!
APP
This is a video visualization of how the app would work. The app would work identically as the interactive screen located inside the Herbivore section in Macy’s. The video is placed out of the PDF.
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FINANCIAL PLAN
After doing research and analyzing the operational and promotional
aspects of launching Herbivore Botanicals and introducing EON interactive technology we created a cost sheet of promotional and operational activities that would take part in our success within Macy’s Inc. The EON Interactive Mirror was our biggest expense, which came to a price $70,000 but we still managed to stay within our $700,000 budget with all of our expenses coming to a total of $686,599.98.
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COST
QUANTITY FREQUENCY TECHNOLOGY
EON Interactive Mirror and hardware Customized software from EON Reality
2
Everyday
$20,000
$40,000
1
Everyday
$20,000
$20,000 $60,000
PROMOTIONAL ACTIVITIES Facebook
Facebook Ads
TOTAL
Everyday
1
$0
$0
$0.27/click
$8,100
Everyday
$0.00
$0
Everyday
$0.00
$0
$300,000
$300,000
$0.04 $0
$1,600,000
$0.036
$144,000
Magazine Print Ads Macy’s Magazine catalog ads Macy’s Website Homepage Macy’s flyers Window Displays
1 1
4,000,000 Monthly X2
4,000,000
Monthly X2
1
Everyday
3/month
$0
2 $0
1/month
Massage Therapist
2
8hrs/1day
Massage chairs
2
1 day
$76.99
1 day
$16
Blogging Youtube STORE LAUNCH ACTIVITIES
$3,660 $0
5
Samples
10,000
1 day
$4
Soap workshop supplies
8
1 day
$4.5
5
Weekly
Sales associates and managers
$5000
$0 $7,200 $0 $2,064,300 $560
$35/ hr
Giveaways
STORE AMENITIES
$0
TOTAL EXPENSES
OVERALL BUDGET
$153.98 $80 $40 $36 $899.98 $30,000
$700,000.00
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