Macy's Store
History of the Company
Name of Company:
·
How long have they been in business?
· Since October 28, 1858.
Background information:
· Macy’s Store started as a small dry goods store in New York City in the year 1858. It was founded by Rowland Hussey Macy.
How has their business changed over the years?
· Over the years, the business at Macy’s Inc. has changed from just selling clothing to even acquiring a liquor license in the New York City. The Company has grown worldwide such that it allows for the shipment of goods to over 100 countries worldwide. This has also included online shopping for easy purchases to be made.
What is their mission statement?
· “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. "
Do they plan to expand, penetrate, diversify, or change their retail format in the near future?
· In the near future, Macy’s Inc. plans to expand, penetrate, and diversify their retail format to include more online shopping because the demands of their customers keep changing, and this can be easily addressed in an online marketing format.
Additional notes:
Target Market
1. Who is their target market:
Macy’s stores sell consumer discretionary products such as apparel, accessories, cosmetics, and home furnishings. So, their target market are males and females all age from children under 1 years old to seniors. Macy’s target middle class adults incomes of between $30,000 and $100,000.
2. Define their customer according to demographics (age, gender, income level, education etc.).
Age, in this scenario Macy’s company will be targeting all customers for each and every age in the clothing category
Gender, in this scenario Macy’s company will be targeting male and female.
Income level, Macy’s company will be targeting mostly the middle-class income.
Education level, Macy company will be targeting customers who have an education level of at least able to have internet access.
3. Trade area – Primary, secondary, tertiary (refer to chapter. 8) From the book chapter 8 note.
4. Additional Notes:
It is a natural instinct for business a business to target many people. However, the company should know that promotional strategy will not be directed to one group. By doing this it will allow a highly focused campaign that will meet the needs.
Merchandise Assortment:
1.What are the major brands they carry?
The major brands are like Adidas, Lauren Ralph Lauren
and Calvin Klein and Tommy Hilfiger.
2.Do they have private brands?
Yes, they have private brands, according to the CEO Jeff Gennete Macy’s aims to grow its private –label and Private brands.
3.Where does this retailer’s merchandise fit on the category life cycle?
This retailer’s merchandise fit on the product category of life cycle. Here new trendy product can gain the highest price.
4.Why do you think they chose this stage of the life cycle? Does this retailer carry convenience goods, shopping goods or specialty goods?
They choose this stage of the cycle because the retailer is convenient in specialty goods.
5.Additional Notes: The retail market today has become more of a ‘sea of sameness’ therefore making Macy’s aims to grow its own brands, it is also planning to have an inventory to the chain and it should be different from what has been there already.
Store Location:
1. Where is this retail store located?
Macy’s located at Easton Town Center in located in Ohio Columbus.
2. Why do you think they chose this location?
Macy’s is located in a very strategic area according to esri.com the median income in the area and around is between $35,000 - $79,187 which is higher than state median income. Also, Macy’s located in a mixed area between youth and family which serves the two segments.
3. Is this accessible for the customer?
Yes.
4. What type of lease do they have?
Macy’s own their stores.
Pricing
What is this stores pricing policy? (Everyday Low Pricing. High/Low Pricing etc.)
What other practices do they use to compete with price? (Coupons, Rebates, Price Bundling)
Does this retailer use the cost-oriented method of pricing or demand-oriented pricing?
Is there frequent shopper program?
Additional Notes:
What type of paid advertisements does this business use?
What type of unpaid communication does this business use? (Publicity)
Does this retailer use cooperative advertising? With whom?
What type of sales promotions does this retailer use? (Sales, Sampling, Demos, Contests etc.)
Additional Notes:
Store Layout
What type of design layout des this store use? (Grid, Racetrack, Free Form etc.)
Provide graphics and photos for this one.
Is it effective for customer flow?
What type of fixtures do they use?
What type of lighting are they using?
In music constantly playing? What type?
What type of scent is in the store? Does it detract or attract?
Additional Notes:
Customer Service
What type of services does this store offer? (Alterations, gift wrapping etc.)
Talk to 3 customers – What is their perception of this store’s customer service?
How does this store handle customer complaints?
Does this store have – mystery shoppers to check level of service?
Is the salesperson – empowered to make decisions or is it up to management?
Additional Notes: