Macy’s 2016 College Case

StudyThe University of Arizona’s

Abraham Baca/ Daniela Aguirre/

Mila Hooks/ Vili Langi

Challenge ObjectiveConsidering Macy’s company culture, our primary goal is to evolve what

Macy’s currently has and position it as the dominant retail and entertainment giant. In order to do so we will focus on delivering convenience, valued selection, and innovation. We have seen that virtual based companies, such as Amazon, have become rising threats to establishments such as Macy’s. Therefore, our presentation will focus on:bringing the virtual retail experience to customers enhancing customer's connection to the Macy’s brandWhile maintaining Macy’s culture, and delivering on new experiences by

implementing technology.

“Be everywhere, do everything, and never fail to astonish the customer”

Macy’s NeedMacy’s Company

For nearly 150 years, the Macy’s brand has advanced in becoming a department store with the broadest selection of brands at great value, while creating magical experiences and values that drive Macy’s culture.

Current Macy’s App

The current Macy’s app allows users to:

Browse/purchase current inventory

Access to coupon savings

Store locations

Save items for later use

With Macy’s current app, customers experience an impersonal interaction with the company as there is a defined disconnect from the online and brick and mortar stores.

How do we look to the

future?

Our proposal is to replace Macy’s existing app and introduce M by Macy's as the new face of the mobile application.

What is M by Macy’s?● M by Macy’s is a new interactive website that has been

made to personalize each customer's shopping experience.

● M’s initiative is to build the best shopping experience for customers by allowing them to save products such as apparel, shoes, and accessories. The more customers interact with this platform, the more Macy’s is able to learn about that individual’s style.

● M is uniquely designed for each specific customer, one person's website and merchandise displayed will look different than other users due to their own distinct style.

Our presentation will utilize this new developed platform to evolve Macy’s app, while addressing the disconnection between Macy’s online presence and the physical store.

M by Macy’s

Innovation Valued Selection Convenience

NounThe state of being able to proceed with something with little effort or difficulty.

With the evolution of technology, customers have adapted to the convenience technology offers. To advance the Macy’s culture and customer base Macy’s must:

1) Offer a simple and approachable environment for its customers.

2) Quick access to assistance and product information

NounOffering a wide selection of quality and fashionable products.

Accessibility is crucial in order for customers to feel connected and comfortable with the products at hand because modern shoppers are continuously mobile & moving with evolving technology. Macy’s must:

1) Familiarize customers with product inventory.

2) Personalize product selection for each customer.

NounA new method, idea, product, or application of a better solution.

Millennials and American customers are continuously evolving with the newest fads and trends. In order to acquire the attention of these customers Macy’s must:1) Connect the customers & the brand on a personalized level.

2) Merge its culture with the fast evolving technology.

Solution: To target all current and potential shoppers

Therefore we have narrowed down two types of general shoppers.

The “Bullseye Shopper”

Brower Shopper: A shopper who is shopping at their own leisure.

Most often NOT on a time crunch.

The “Browsing Shopper”

A Shopper who knows specifically what they are looking for.

Most often on a time crunch.

In order to cater to all of Macy’s shoppers we have designed an action plan with three

distinctive action points.

OR

Our Solutions

Action Point #1:

Improving Innovation

My RackHow it worksMy Rack- A personalized service that allows

M by Macy’s app users to request clothing they are interested in to be set aside and ready for them to try on at any Macy’s location.Customers would use the following steps:

1. Click “Send to My Rack” for the clothing they want to try on in their My Rack Fitting room.

2. Select a time frame a My Rack attendant can expect them to be at their fitting room.

3. Confirm their appointment an hour prior to their fitting. *When they arrive to the Macy’s My Rack Fitting Rooms their

items would be waiting for them with the attendant. Clothing will be on hold for 24 hours.

1.“Send to My Rack”

Button

2.Confirm Items &

fitting time

My RackWhy it works

Another addition to Macy’s omnichannel convenience services.

Targets customers who enjoy the convenience of online shopping but prefers to try before they buy.

Creates a personal shopping experience.

Creates a direct connection from Macy’s online store to the brick and mortar.

44% of shoppers want the ability to buy online and pick up their

purchases in a store.(CMO Adobe. Abramovich, Giselle)

_____________________84% of store visitors use their

mobile devices before or during a shopping trip.

(CMO Adobe. Abramovich, Giselle)

Action Point #2:Improving Valued

Selection

Barcode Enhancement

How it WorksMacy’s current app offers the ability to scan barcodes to view product reviews and pricing.

What we’re adding is the ability for customers to scan an item's barcode which instantly provides them with:

Merchandise stock information

Similar merchandise to what was scanned

Option to add scanned items to favorites in M by Macy’s.

Suggested items to complete your outfit.

2. List of items to complement the item

scanned

1. Scan any clothing item

Barcode Enhancement

Why it Works

Creates a mobile channel for consumers that provides the information needed to make the best buying decision.

Customers can easily shift from their smartphones to the physical store.

This improved feature addresses the dilemma every customer faces—completing an outfit.

By providing additional product options and product information, it increases the likelihood of customers making other purchases.

Millennial shoppers lead the way in smartphone usage in-store, comparing

prices, reading reviews, buying products, and engaging with brands on social media while in physical stores.

(CMO adobe)--------------------------

More than 50% [of shoppers] use their smartphones to research products or

services while shopping. (Barkley Studies. Brian Honigman)

Action Point #3:Improving Convenience

My M.A.P’s stands for My Macy’s Advanced Pathfinder. It is another added feature to the M by Macy’s app that is essentially an in store Mapquest.

With My M.A.P’s, Customers are directly guided to the location of any specific department or SKU specific item.

In My M.A.P’s customers can visually see STARS on their map locating items in the brick and mortar store, indicating products they have favorited through their M by Macy’s profile.

How it WorksMy M.A.P’s

My M.A.P’sWhy it Works

My M.A.P’s addresses the issue of customer convenience, by navigating customers through the store offering real time assistance and guidance through the stores complex layout.

By allowing customers to see favorited items from their Macy’s app as stars in the physical stores. My M.A.P’s offers a bridge to the existing gap between the brick and mortar and the online stores.

68% of all Millennials demand an integrated, seamless experience… being

able to transition effortlessly from smartphone to personal computer to

physical store.

(Accenture Retail Research. Donnelly, Christopher)

____________________

Promotion & Execution:

How to make it work

Trend RackHow it WorksTrend Rack- Each Macy’s store is fitted with an

area within each department that would be known as the “Trend Rack”, displaying the items in that specific department that have been popular within a specific time frame.

a. This method allows the customers to visually understand the items that are popular within each department.

i. Each Macy’s would focus on trends that are gaining ground within each region of the united states due to the fact that trends do not remain consistent throughout all of the U.S.

ii. Places an emphasis on popular items that Macy’s currently has within inventory and allows customers to visually see what's trending.

Trend Rack

Television Monitors: Promoting the M by Macy’s and popular items Television Monitors

Clothing racks that display trending & top selling apparel.

Display of trending and top selling

accessories & shoes.

Trend RackWhy it Works

Customers and the American Culture have conformed to ACCESSIBILITY and guidance of products and brands. With the evolution of the 21st century and visual media, customers need visual access to new trends.The Trend Rack plays a vital role in promoting popular items within each specific department alongside promoting the improved M by Macy's app and our added features.As a result, this will lead to an increase in sales and a better understanding of what customers demand and are willing to purchase.

Macy’s has a robust product portfolio including 20 private label brands…

consider: Maintaining a curated assortment so as not to overwhelm

[the consumer].(Macy’s 2016 Integrated Marketing

Challenge)____________________

Essentially, our plan is to implement M by Macy’s as the primary mobile app platform for Macy’s. We foresee that the implementation of our action points involving technology will strengthen customers connection to the Macy’s brand, while making them loyal customers.

The time to combine mobility, technology, and retail has passed.As we enter the digital era, Macy’s must continue to make its presence known

as the dominant retail and entertainment giant by improving the customer's experience and connection to Macy’s. We believe that these modifications to Macy’s original app will address the existing disconnect that customers experience throughout most retail stores, advancing customers experience, convenience, and making inventory more personal. Simply for these very reason, our action plan and recommendations will set our presentation above current standards and expectations as it addresses various business gaps that we found vital to the success and evolution of the Magic of Macy’s.

Success is in the customer's experience.Executive Summary