Experience the Magic of

Founder: Rowlnd Hussey (age 36) Opened 1858 in New York City First day sales: $11.06 End-of-year sales: almost $90,000

History

Assortments Price Simplification Improving the Shopping Experience Marketing

4 Stategic Priorities

• May 2003 to support the company’s focus on marketing

• Responsible for developing sale promotion programs both nationally and locally

• Manages public relations and annual events• Builds the Macy’s brand while maximizing the

return on its significant investment in marketing• Goal is to move Macy’s marketing program and

advertising to a “category of one”

Macy’s Corporate Marketing (MCM)

Fashion magazines Digital and online media Promotional advertising on specific items

and prices Directly involving the customer

◦ Thanksgiving Day Parade◦ Local store personal appearances◦ In-store fashion and cooking shows◦ Fourth of July Fireworks◦ Flower shows◦ Celebrity appearances

Advertising Techniques

Unique Merchandise◦ 35% of sales are in brands that are exclusive to

Macy’s or or in limited distribution Restaurants inside the store Charity

◦ $1 for every Santa letter◦ Proceeds went to Make-A-Wish Foundation

Online at macys.com sales expected to top $1B in 2008

Unique Selling Methods

Extras

The 2007 TV ad with celebrities was a great ad: celebrities, glitz, and fun

Not all stores reflected the appeal the ad had

Newer stores did Older store did not Macy’s overpromised in their ads, leaving

many people feeling dissappointed

Downfalls

Began in 2003 Macy’s Rewards Campaign Customers give back to local charities For each Thanks for Sharing program

member, Macy’s donates $10 which goes to Go Red For Women Campaign and Make-A-Wish

Raises an unprecedented $14.7 million for charity

“Thanks for Sharing”

7,000 layoffs (4% of the country’s total workforce) Ensure every store is “just right” for the customer

in that location Each store is individually tailored Reduces previoulsy planned expenses of $400M

per year starting in 2010 Nationwide, divided into 69 demographic locations

that will have 10-12 stores each Creates 49 new districts which means 1,200 new

jobs Districts will focus more on what consumers in

those areas want to buy

“My Macy’s”

Create a unified organization Centralize Macy’s Enhance focus in local markets Central station is still in New York

Goal of “My Macy’s”

Direct mail had a 54 page “Mayalog” sent to homes in the new marketplace-2006

In-store block and shopping parties Gift card giveaway Thanksgiving Day Parade Give a lot to charities

Other Methods

macysinc.com www.dmnews.com www.allbusiness.com www.wikinvest.com

References