Case Study Macy's

2423 WordsMay 27, 201310 Pages
Macy’s Department Store Reposition Case Study By Tina Parker In Partial Fulfillment of Course Requirements for BUS 530A Marketing Management California Baptist University Dr. Natalie C. Winter May 21, 2013 Executive Summary The case study is Macy’s Department Store Repositioning. The key problem is that the traditional department stores sales and profits are declining. There are specialty stores, discount stores, and online stores that offer similar products at a fraction of the cost for the most part. However, in the declining market for the department store industry, Macy’s consolidated stores, established a national department store and continues to make a steady profit. It is usually the time to divest, sale,…show more content…
Smart phones are allowing customers to shop with their phones inside stores; credit cards are accepted via phones vs. cash registers. Technology brings online shopping vs. in store shopping. And, advertising is popping up on smart phones as electronic messages as customers shop based on their location. Service is defiantly the key to keep a customer coming into a department store. The product life style of the department store is in the mature or declining phase of its product life style, because of the declining sales. Furthermore, according to estimates, market share has eroded away to 7 per cent, as of 2010, and is far below the desirable rate 15 per cent (Johnson, 2011, p. 3). Also, the brand image is being heavily relied upon and the bottom line is not showing significant increase in the years presented in the journal article. Macy’s is afloat due to a strong management team and the aggressiveness to deal with problems as they arise. For example, continuing to adjust its portfolio of stores, focusing on fashion, and developing private labels in bedding, outerwear, ‘tween’ clothing, increase national advertising and using celebrities. Additionally, Macy’s advertising is combining the national department store image with July 4 and the Annual Macy’s Thanksgiving Parade, which appeals to the American citizen. Solution The three marketing strategies for Macy’s to pursue are the harvesting, defender and maintenance strategies. As described
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