...------------------------------------------------- Group assignment 2: Macy’s Case ------------------------------------------------- Strategic Marketing 2013-2014 Macy’s Department store repositioning Guidelines You are asked to prepare a report, answering the questions below (max 10 pages). In solving the case and answering the questions, you could use not only the information given in this case and attached articles, but can seek further information about the market and consumers if necessary. * The case can be found on the Pointcarre webpage * Deadline for submission is: 27/03/2014 * Professional text and layout; no writing or grammar errors * Refer in a correct manner (e.g. APA-style) * Mention names and enrollment numbers of all the team members on the first page * Hard copy Questions regarding the Macy’s case 1) Make a situational analysis of the traditional department store industry and of Macy’s as of 2005. Which factors in the external environment could (positively or negatively) affect the success of Macy’s new strategy? Which internal factors could affect the success of the company’s strategy? (don’t forget to look at the exhibits!) 2) Evaluate Macy’s 2005 consolidation and repositioning strategy: what are its strengths? What could be the benefit of each strength? Evaluate Macy’s 2005 consolidation and repositioning strategy: what are its weaknesses? What could be the possible outcome of each weakness? 3) Porter argues that...
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...national brand—Macy’s. This decision was in response to the decline in sales and profits that had hit the traditional department store industry, which was in a maturing stage and moving towards a downward trend for some time. Just three years later, in 2008, U.S. economy was hit with a recession that threatened the livelihood of many successful retail giants. While Macy’s did experience a significant drop in revenue in 2008 with a net loss of $4,803 million, compared to other department stores such as Mervyn’s that went bankrupt when the recession hit, Macy’s managed to stay in the game. Macy’s ability to not become obsolete was in part due to the consolidation and repositioning tactics that provided the company an avenue in creating a national brand and reducing the unit cost of advertising and promotional budgets considerably due to having one central hub for all of the company’s administrative functions and bulk purchasing. The success of the consolidation strategy is attributed to several factors. For instance, Macy’s brand already had nationwide recognition as “America’s department store” through aggressive national advertising activities, Fourth of July Celebrations and Thanksgiving Day Parade. In addition, when Federated had consolidated its regionally established department stores, these stores had a well-established customer base, were regionally well known, and were in prime locations close to business districts or large shopping centers, which meant that Macy’s did not...
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...take over competing retailers. In 1929, Macys Inc. was founded as a holding company for various department operations. As of September 2006, with the conversion of stores acquired from the Macy Department Stores Company. It serves now customers through approximately 800 stores in virtually every major geographic market in the United States, as well as the macys.com website. MARKETING MIX Missing appropriate terminology in this section. User terminology we are currently covering. PRODUCT: Terminology? * provide a wide array of apparel for men, women and kids * provide goods for the home * provides beauty, hair, fragrances and cosmetics for men and women | PRICE Terminology? * affordable goods * constant sales, coupons, and specials like One Day Sale and Family and Friends * Loyalty programs | PLACE Terminology? * 800 stores across the nation * international stores * macys.com | PROMOTION Terminology? * television ads * radio ads * social media: Facebook, Instagram * store catalogs * newspaper * mobile application...
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...As prices continue to rise, people are looking for ways to save money that are a little bit out of the ordinary. In the old days, people used to clip coupons to save a little extra cash for the family. Today, people can go online and get discounted gift cards that may be redeemed at stores. Second hand sites now specialize in selling these cards for well-below face value, giving the buyer a huge opportunity to save money. Are you someone that likes to save money by buying discounted gift cards? Or would you like to know how to exchange and resell unwanted gift cards? In any case, there are a few reputable sites that specialize in these transactions. They provide a tremendous amount of value for both buyer and seller that are trying to find...
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...Jacqueline Supman Merchandise Strategies Case Study: Macy’s Private Label Macy’s current hodgepodge of brands, products and spokespeople is no coincidence. The backbone of the retail giant has always been bringing together the best selection of goods and services through partnerships and collaborations, starting in 1929 with Fred Lazarus, the puppeteer behind F&R Lazarus and the John Shillito Company (which was the oldest department store at the time). Fred famously arranged a meeting with Walter Rothschild (of Brooklyn-based Abraham & Straus), Louis Kirstein (of Filene’s) and Samuel Bloomingdale (head of namesake company Manhattan's Bloomingdale's) and decided to merge their stores into one. Rothschild, and Kirstein quickly agreed on the spot, and Bloomingdale joined the next year. 1 The company’s headquarter location was set up in Cincinnati in 1945 and over the next thirty years additional locations popped up in major cities across the U.S. The Federated company continued to purchase department stores over time, but it was not until the 90’s that the company bought 50% of the existing Macy’s debt, setting the company up for acquisition within the next two years. The first Macy’s store opened in Manhattan in 1858 by a gentleman named Rowland Macy. Forty years later after the death of Rowland, Macy’s was bought by the Strauses, who expanded the retail empire across the U.S. Unfortunately after taking the company private in the late eighties, the...
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...as. Describe the characteristics it shares with other retailers of this type. The type of retailer Nordstrom is classified as is a Department store. A Department store is a retail establishment which specializes in satisfying a wide range of the consumer’s product needs, carries a wide variety of shopping and specialty goods, including apparel, cosmetics, houseware, electronics, and sometimes furniture. Nordstrom fall into this category because it sells clothing, accessories, handbags, jewelry, cosmetics, fragrances, and in some locations, home furnishing. This hasn’t always been the case, Nordstrom started out as a Specialty store, in which retailers specialize in a given type of merchandise. This merchandise for Nordstrom was shoes but the company later decided not only to focus on shoes but other merchandise. Some other department stores that share similar characteristics as Nordstrom are Macy’s, Ross, JCPenny, Dillards, and Kohl’s just to name a few. In these Department stores a customer can find a wide variety of products, for women, men, and children. Describe Nordstrom's level of service on the continuum from full service to self-service. Give an example of a store that would be on the opposite end of the continuum and explain their differences. As mentioned prior Nordstrom’s was at one point considered to be a specialty store and their specialty was shoes. In the past your sole reason to go to Nordstrom to get fitted for a great pair of shoes. Over the years their...
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...Since the creation of humans, business has been established. For example, People around the world have long been selling merchandise in exchange for gold, and they have long been driving to stores to purchase goods. With the technological evolution, this practice has changed. Today, people don’t even have to go to the store to buy what they want because they have the possibility of having the market virtually present in the comfort of their own home. In regard to this, any business that expands its market online will basically profit in expansion moving from a local to a global market. In this case, the income will be largely intensified. Home Dress’n X is a company that specializes in selling clothes, shoes, home accents, bed and bath products, and luggage. It opened its doors in 1982, selling its merchandise with bargain prices. Nowadays, it is well-known among the S&P, Fortune 500, and Nasdaq 100. Although Home Dress’n X has high ranges in the brick-and-mortar market, its website shows otherwise in the virtual market. The store has been very successful due its great prices as opposed to its competitors. However, when taking a look at the Home Dress’n X website, one can visibly see not much marketing there. Additionally, the website, as opposed to the store, is very dull and not enough diversity is shown. For instance, the store has a variety of merchandise, some brand names, and new trends. The merchandise are arranged according to sexes, sizes, genres, and new arrivals...
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...Maureen Okoeguale Dfanni’s House of Fashion Final Course Project Report MKTG522 – Marketing Management Professor Lynne Pryor August 24th, 2015 DeVry University Table of Contents Executive Summary: …………………………………………………..3 Introduction: …………………………………………………………3 IMC Objectives: ……………………………………………………….4 Market Analysis: ………………………………………………………5 Communications Strategy Plans: …………………………………….6 Traditional Media: …………………………………………………….6 Internet: ……………………………………………………………….6 Direct Marketing: …………………………………………………….7 Sales Promotion: ……………………………………………………..7 Public Relations: ……………………………………………………..7 Communications Schedule: ……………………………………………8 Budget Evaluation: …………………………………………………….9 Conclusion: ………………………………………………………….....10 Reference Page: ………………………………………………………..11 Executive Summary The mission of Dfanni’s House of Fashion is to offer the best quality designer brands and styles from around the world at fair and competitive prices. Provide world class customer service and deliver excellent customer shopping experience that’s entertaining for the kids and relaxing/pleasing for adult shoppers. We will thrive at becoming the world’s greatest premier retail store, offering innovative and creative merchandise, and most importantly, using more technology and directing the company’s resources towards those fundamentals that are core to our customers. Prior to now, our company has only operated virtually generating $10 million and $15 million U.S. dollars of revenues in years 2013 and 2014 respectively...
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... ------------------------------------------------- table of CONTENTS EXECUTUVE SUMMARY Since the first opening in 1858 in New York the “world’s largest store” became iconic for the department store industry. From the beginning Macy's Inc. stated its mission to satisfy a consumer as a paramount and recognized that all actions and strategies must be directed toward providing a localized merchandise offering and superior shopping experience. Organization has been following that principal for over a decade and today Macy’s targeting consumers through dynamic department stores and online sites. Main issue Advancing e-commerce and internet technologies cause recent declines in sales in the entire industry. Online retailers offer more convenient and fast shopping on the internet directly from your personal computer or smartphone. Along with efficiency online retailers striking department stores with lower prices and easy shipping. Trends became so effective that consumers rapidly shifting towards online retail channels leaving department store business with a need to create an effective strategy to overcome threats and insure their future in the industry. Strategy Recommendations Department stores such as Macy's and its main competitors Sears, JCPenney, and Dillard's operate as an upscale...
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...CHAPTER 9 COVERAGE OF LEARNING OBJECTIVES |LEARNING OBJECTIVES |QUESTIONS |EXERCISES |PROBLEMS |OTHER | |LO1: Account for current liabilities. |1,2,3,4 |34,35,36,37, 38,39 |53,54 | | |LO2: Measure and account for long-term |5,6,7,8,9,10, 11,12,13, |38,39,40 |54,55,56, |87,91 | |liabilities. |30,31 | |84,85 | | |LO3: Account for bond issues over their entire |14,15,16, |41 |57,58,59, 60,61,62, | | |life. |17,31 | |63,64,65, 66,67,68, | | | | | |69,70 | | |LO4: Value and account for long-term lease |18,19,20, |42 |71,72,73,74, 75,76,77 |89,91 | |obligations. |21,22 | | | | |LO5: Evaluate pensions and other postretirement |23 |43 |78,79 |88,91 | |benefits. | ...
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...THE MARKETING MIX: 4 P’S Rob Sloan MKT1040-8 November 21, 2012 MAI PHUNG NAVI PRASHAD SARAH KON MATT GAMMON 5317904 6018196 5834577 6441950 I NTRODUCTION: Company Overview & Ryder Jeans Tommy Hilfiger has earned worldwide recognition as one of the top leaders in premium lifestyle brands. Its high quality “Classic American Cool” preppy fashion with a refreshing twist is currently distributed in 90+ countries 1. In 1985, with the support of a businessman, Tommy Hilfiger released his first signature collection, offering high quality clothes for men, women, and children. The brand became a major hit after George Lois, a famous advertising communicator released a Tommy Hilfiger ad in New York’s Time Square 2. The 1985 “Hangman Billboard Ad” instantly ignited Tommy Hilfiger’s career, making it the starting point of his worldwide success and popularity. In the 90’s, Hilfiger Denim created a very bold marketing campaign in which they featured emerging musical talents such as Britney Spears and Lenny Kravitz 3. The strategy was to develop lasting relationships with cultural influencers and trendsetters in order to entice younger consumers to purchase the brand 4. Pop culture was becoming a worldwide phenomenon, attracting young consumers all over the world. In 2004, Beyonce signed a deal with Tommy Hilfiger agreeing to be the spokesperson for Hilfiger’s True Star fragrance. Her relationship with the brand proved to be major success, as sales skyrocketed ...
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...MKT 506 – Integrated Marketing: Week 8 Discussion 1 Many companies have experienced the impact of negative publicity over the past few years as a result of product recalls, marketing blunders, etc. Give some example of some instances where companies experienced negative publicity and how they handled it. Evaluate their means of dealing with negative publicity. Many times corporate crises often result in negative publicity, threatening the image of the company. Spirit Airlines had some negative publicity recently. This negative publicity was regarding their customer service which they deemed to have a material adverse effect on business. In the past they have experienced a relatively high number of customer complaints related to, among other things, their customer service, reservations and ticketing systems and baggage handling. In particular, they generally experience a higher volume of complaints when they make changes to the unbundling policies, such as charging for baggage. This irritates customers and they complain. Thier reputation and business could be materially adversely affected if we fail to meet customers’ expectations with respect to customer service or if they are perceived by our customers to provide poor customer service. They did a horrible job when they tried to handly it. Spirit launched a Congress-facing grassroots campaign based on a shameful lie as stated on its website: “Spirit must now HIDE the government's taxes and fees in your fares.” The truth...
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...During the last decade, Coach has emerged as America's preeminent designer, producer, and marketer of fine accessories and gifts for women and men including handbags, business cases, luggage and travel accessories, wallets, outerwear, eyewear, gloves, scarves, fragrance and fine jewelry. Continued development of new categories has further established the signature style and distinctive identity of the Coach brand. Together with our licensing partners, we also offer watches, footwear, eyewear and fragrance bearing the Coach brand name. Marketing Environment Coach has many competitors but their top three competitors are Dooney & Bourke, Kate Spade and Michael Kors. Dooney & Bourke started in 1975 and is an American made brand; Kate Spade was started in 1993 and is also an American brand and lastly, Michael Kors which was started in 1981, is and American brand. Coach reaches a larger demographic compared too many of their other higher-priced competitors, such as Louis Vuitton, Prada, Gucci, Cole Haan and Dooney & Bourke, because Coach says that they are “affordable luxury”. These competitors are focused on a higher-fashion, higher income demographic than Coach is. Dooney & Bourke and Cole Haan also stress “accessible luxury” which makes them Coach’s key rivals. Coach continues to be one of the best recognized accessories brands in the United States, and is actually the leading American manufacturer and retailer of leather goods, accessories and apparel for women and men. The largest...
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...INTRODUCTION In this segment, the retailer J.C. Penney will be analyzed against the department store retail industry, with particular emphasis placed upon their competitors, Macy’s and Kohl’s. The major components to be discussed will include the general external environment (i.e. demographics, economics, politics, legal requirements, technologies and global expansion), the industry environment, the competitive environment, the driving forces and the key factors for success within the industry. In terms of the general external environment, the retail industry is a multi-trillion dollar business in the United States alone and maintains operations primarily due to consumer spending. Such purchases rely upon the disposable income of consumers and, as a result, the success of the retail industry is directly correlated to the economic status of the country. Due to the recent economic recession in the United States in 2008, customer confidence is not as high as it once was and, as a result, consumers are more price-sensitive in their retail purchases than they once were. As a result, retailers must be incredibly careful in their selection of product mix, their associated retail prices and the promotions they offer. Aside from price and pricing structure, another major component to consider in the retail industry is the domestic and global increase in the use of technology. Such shift in the availability and reliance upon technology has driven retail consumers to be more time sensitive...
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...Recruitment Advertising & Recruiting Strategy In a time when many companies are cutting costs across their operations, a growing number of HR departments are changing the ways they recruit. Their goal: to boost recruiting efficiency (reducing recruiting costs per hire). Their means: innovative recruiting approaches that bring imagination and aggressiveness to a company's overall recruiting function. Innovations are occuring in several elements of the recruiting process. Here is a look at innovations in several areas. Recruitment Advertising An increasing number of companies are supplementing and even replacing the traditional classified ad with creative, clever, eye-catching ads. These ads are essentially a company's resume and cover letter, designed to send a unique and memorable message about the company to sought-after prospective applicants. Recently, Personnel Journal reviewed several hundred ads submitted by subscribers and reported some trends in this type of advertising. They include: 1. Use of Employees in Ads Instead of the traditional testimonials, more company ads are spotlighting employees, talking about their skills, jobs, and accomplishments. For example, General Dynamics has run a series of ads that, by comparisons with great inventors, compliments profiled employees and their colleagues. For example, one ad hadline in the series proclaims, "We're looking for another Newton ...And another Newman: (Howard Newman, one of General Dynamic's senior project engineers)...
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