1. Marketing Plan for the Omni-channel Merchandising Concept
Thomas McDonald
FMM-457
Southern New Hampshire University

2. Omni-channel is integration of traditional retail sales and supply chains with the technological
advances and concepts of Ecommerce to allow all retail operations to act seamlessly to provide
the customer with the best shopping experience regardless of time or location the customer is
making the purchase (Alaris, K., 2015).
With the transformation of the internet into and retail platform all of its own, retailers like
amazon and overstock successfully tapped into this demand and created the online shopping
trend that is now become standard of for all forms of retail and all sizes. Omni-channel is
becoming more than just a trend but a means to modernize a full service retail business. It is now
often the case that our customers will begin their product searches from their home, offices, or
even during moments of leisure. Most people have access to at least one if not more forms of
digital technology and will use as a primary source to do research on products and pricing in
order to make an informed buying decision. Customers then pick it up or have it delivered to our
homes and or offices (Cook, G., 2014). This makes the development of the Omni-channel
concept an essential. This marketing plan is to prove that any retailer can be more successful
generating sales using the integrated Omni-Channel retail sales environment (Newstex, 2014).
Omni-channel gives retailers like Macy’s the ability to compete with all industry segments and
gives them capacity to grow into the global marketplace (Young, V. M., 2012)

3. Target Customers
With the objective to determine who are the Omni-channel target customers. The traditional
target customer of most brick and mortars retailers is likely female with a family, 30-60 years
old, with some college education, middle class to upper middle class in income and lives in a
suburbs or lives in the city (STRUGATZ, R., 2015). However, the long term future for a
company depends on whether or not they can attract new customers as their more mature
customers that have been their core customers since the mid 1990’s are lessening their spending
needs as their households become smaller with their lifestyle changes with their children leaving
the house (Newstex, 2015). Macy’s are looking forward into the future to who their target
customer of the future. The result of the implementation of the Omni-channel is for Macy’s to
create their new target customer while continuing to grow market share of their current target
customer (Cook, G., 2014).
In 2012, at the adoption of the Omni-channel, Macy’s made it known that would use technology
and change their corporate philosophy to accommodate the target customer for their Omni-
channel target customer, the millennials. The key is to develop an integrated sales platform for
younger more tech savvy customers but give those slightly older more traditional forms of
marketing while performing more concentrated marketing on social media with special
promotions geared to their internet usage. The goals to reach current and perspective target
customers to compete with Online Retailers such as Amazon, Zappos and Overstock and the Fast
Fashion apparel retailers such as H&M and Zara. (Young, V. M., 2012)

4. Competitors
The essence of creating a retail sales system based on the philosophy that the consumer should
be able to purchase and acquire merchandise by the easiest means possible based on their needs
and the availability of the product is basis for the Omni-channel sales environment. There is a
simple way to determine the impact of competition towards the utilization of Omni-channel. By
comparing companies who use the Omni-channel approach as applied by retailers like Macy’s
and those that do not and the other is to compare different variations of the use of Omni-channel.
It is the differences in how certain retailers utilize the Omni-channel concept and even those that
do not utilize the concept that has the effect (Women's Wear Daily, 2014).
For companies now fully embracing the Omni-channel merchandising concept, Nordstrom’s and
Sak’s 5th Avenue has become aggressive with their Omni-channel sales concept. The key for
them is to be able to spread their products lines for better distribution for their customer,
including the use of robotics in the distribution system (Moin, D., 2013). Another company
making vast improvements in the last couple of years is J.C. Penney’s, after years of criticism
from many over the misconception of their value price strategy and failure to truly notice the
Omni-channel concept (Women's Wear Daily, 2012) has rebuilt their business on the Sak’s
model with creating a seamless Omni-channel.
As for a company not strongly utilizing the Omni-channel concept the abilities of Dillard’s has
not integrated their Omni-channel capabilities as readily as others. To maintain market share in
the wake of the growth of ecommerce are very much noted. But noted that it had higher not
made transition fully and was having higher operating costs a sign that improvement was needed
(Newstex, 2015).

5. Opportunity and Challenges
To look at what challenges retailers face today to be continuously successful businesses and to
compete with companies that have different retail business platforms need to focus on the
challenges that result from going forward with the streamlined approaches and logistics along
with maximizing access for your consumers. The purpose of this is to gain maximum customer
satisfaction with your business in order for those customers to keep returning time and time
again.
When we consider challenges that those who utilize the Omni-channel approaches the first and
probably most important is how the customer experiences the use of on the channel (Cook, G.,
2014). The challenge then becomes delivering consistency of service, information most
important price making the customer’s life easy as possible (Enterprise Innovation, 2014).
Because retailers concentrated on making digital retail viable by doing retail only specials it
caused a discrepancy in pricing that in particular brick-and-mortar retailers had difficulty
keeping track of (McCrea, B., 2015).
The second component to meeting the challenge of an Omni channel sales environment is
ensuring your company has an efficient supply chain environment that can logistically handle the
demands of an intense new retail environment. First, the supply chain has to provide flexibility
so that the consumer can be able to acquire the merchandise they are looking for at any location
where that inventory could be located (McCrea, B., 2015). It is important to understand also the
role suppliers play The result is the decision to use retail fulfillment also known as e-commerce
distribution is no longer a question because the increasing demand real-time supply chain
visibility created by on the channel retailing has made the fully mobile supply-chain a reality
(Andel, T., 2014).

6. When we look at the O and the initials CIO and the three keys a retail we refer to order
processing. The challenge with Omni-channel is the target customer for Omni channel requires
speed and that their orders have to be processed in a timely manner so that they can get the
products when they want them or need them (Gov, N. U., 2014). Working with those third party
logistics (3pl) companies that help distribute consumer merchandise such as FedEx and UPS in
sales planning can make the omni-channel distribution process go smoothly (Levans, M. A.,
2014).

7. The following are some of the Omni-channel applications being marketed at Macy’s several of
which have been successfully branded.
BOPS (Buy Online, Pickup in Store)
Advertisement for Buy Online and Pick up in Store (BOPS)
Target Customer: 30 to 50 year old career women and families that have no time for anything
including shopping (Prior, M., & Karr, A. J., 2013).
Application: Macy's store locations nationwide. To those customers that are the primary target
of the Omni-Channel concept. Allows the consumers that cannot shop during regular brick and
mortar store hours the ability to buy merchandise via different Ecommerce applications with the
option to later pickup at their local store. This has the largest impact in that they can do all of the
research at home, order it at their convenience then pick their purchase up at their local Macy’s.
Giving this customer the ultimate shopping experience they can imagine (Macy’s, 2015).
Benefits: customers save delivery time and money through shipping costs. Can later shop the
brick and mortar location (Digital Signage Today.com, 15 Sept. 2014).
Marketing: Heaviest marketing on traditional media outlets focus on major media events and
shows geared toward this age group.

8. Macy’s Wallet
Demonstration of the convenience of My Wallet through the use of a smart phone
Target Customer: The holders of the Macy’s Star Rewards consumer credit card (Prior, M., &
Karr, A. J., 2013).
Application: The first direct major introduction of the omni-channel concept for Macy’s
customers. Provides customers with electronic coupons and gives the consumer option to opt out
of receiving paper coupons by mail. It also allows the customer the ability to able to use coupons
they get in stores online without needing a special code (Macy’s, 2015).
Benefits: Allows customers the ability to receive a discount for their purchase without the
inconvenience of not having a special discount coupon that is provided to them from the Credit
Card or from a promotional flyer like a “WOW” pass. The result is increased customer
satisfaction and the ability for associates to provide more incentives to satisfy the customer.
(Digital Signage Today.com, 15 Sept. 2014).
Marketing: Most initial marketing for this is through mail advertisement from consumer credit.
Marketing is currently provided through Macy’s promotional advertising including sales flyers
and by the Associate at checkout or Macys.com checkout portal.

9. Magic Fitting Rooms
Advertisement showing how the Smart Fitting Room and other Digital Applications work.
Target Customer: Millennial and Gen Y Customers, male and female.
Application: Wall-mounted tablets where selling associates and customers are able to scan
merchandise items being tried on by customers to view other colors and sizes and check
availability and, in many cases, see additional product information, product ratings/reviews and
recommendations on complementary items to "complete the look."(Newstex, 2015).
Benefits: This application clearly seen as a means to attract millennials and Gen Y customers
who are very technological savvy but like to touch and try new clothes. The Smart Fitting rooms
will add to these of the shopping experience and this feature (Digital Signage Today.com, 15
Sept. 2014).
Distribution: Currently 50 stores set to be implemented to all stores in 2016.
Marketing: Heaviest marketing on social media, Facebook, Twitter, LinkedIn and Pinterest.
Traditional Media outlets focus on media events and shows geared toward this age group.

10. Sources:
Alaris, K. (2015). What makes 'Omni-channel' work? Industrial Distribution (Online), Retrieved
from
http://ezproxy.snhu.edu/login?url=http://search.proquest.com/docview/1658055593?accountid=3
783
Cook, G. (2014). Customer experience in the Omni-channel world and the challenges and
opportunities this presents. Journal of Direct, Data and Digital Marketing Practice, 15(4), 262-
266. doi:http://dx.doi.org/10.1057/dddmp.2014.16
Zacks investment research: Macy's eases shopping, introduces Omni channel strategies - analyst
blog. (2014). (). Chatham: Newstex. Retrieved from
http://ezproxy.snhu.edu/login?url=http://search.proquest.com/docview/1642700996?accountid=3
783
STRUGATZ, R. (2015). Going Omni. WWD, 209(87), 24-n/a. Retrieved from
http://ezproxy.snhu.edu/login?url=http://search.proquest.com/docview/1683443237?accountid=3
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Young, V. M. (2012). Macy's sets strategy for gen-Y shoppers: Millennials' moment. New York:
Fairchild Fashion Media.
Macy's Unveils String Of Omni Initiatives. (2014). WWD: Women's Wear Daily, 208(57), 1.
Moin, D. (2013). Saks creates omni-management. WWD, 205(27), 2. Retrieved from
http://ezproxy.snhu.edu/login?url=http://search.proquest.com/docview/1289079456?accountid=3
783

11. Key to Omni-channel customer care: Consistency. (2014). Enterprise Innovation, Retrieved from
http://ezproxy.snhu.edu/login?url=http://search.proquest.com/docview/1497032557?accountid=3
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Levans, M. A. (2014). Meeting the Omni-channel fulfillment challenge. Logistics Management
(2002), 53(12), 9. Retrieved from
http://ezproxy.snhu.edu/login?url=http://search.proquest.com/docview/1638951759?accountid=3
783
McCrea, B. (2015). 2014 VIRTUAL CONFERENCE: Supply chain transformation: Meeting the
Omni-channel fulfillment challenge. Logistics Management (2002), 54(1), 4-56S,58S,60S,62S.
Retrieved from
http://ezproxy.snhu.edu/login?url=http://search.proquest.com/docview/1648114168?accountid=3
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Gov, N. U. (2014). Retailers face big hurdles in bridging Omni-channel commerce gap.
Enterprise Innovation, Retrieved from
http://ezproxy.snhu.edu/login?url=http://search.proquest.com/docview/1508569267?accountid=3
783
Andel, T. (2014). Retailers increasing adoption of Omni-channel technologies. Material
Handling & Logistics, Retrieved from
http://ezproxy.snhu.edu/login?url=http://search.proquest.com/docview/1533622276?accountid=3
783
Prior, M., & Karr, A. J. (2013). Macy's working on in-store pickup. WWD, 206(64), 2.

12. “Macy's new tech plans include Apple Pay, smart fitting rooms, more." (15 Sept. 2014).
DigitalSignageToday.com. Business Insights: Essentials. Web. 20 Aug. 2015. Retrieved from
http://bi.galegroup.com.ezproxy.snhu.edu/essentials/article/GALE%7CA382520877?u=nhc_mai
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