Macy*s Presentation


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MAR 4232 (Current Issues in Retail Marketing) presentation made to Macy*s on Search and Send with the Cosmetics department. Spring 2012

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Macy*s Presentation

  1. 1. WELCOME!
  2. 2.  Michael Perez Alexa Naranjo Alejandra Guardia Yessenia Hernandez Anesys Mena Tish Durham Cosmetics Priscilla Martinez Search & Andrea Albanez Oscar Roger Send Omar Hernandez
  3. 3. Introduction
  4. 4. Search and SendMacy*s at Dadeland Mall: One of the oldest and most iconic in Miami Third most revenue generating Macy*s store in the nation -Distribution Center = Large Inventory
  5. 5. Search and Send
  6. 6. Search and SendTwo Driving Questions How can we use “Search and Send” as a sales driving force with regards to Cosmetic replenishment? How can sales associates efficiently check MyClient for replenishment needs?
  7. 7. Research
  8. 8. Search and SendEmployee InterviewsConsumer Surveys - Focus on femalesSecret Shopping
  9. 9. Employee Analysis
  10. 10. Search and Send Paper interviews with 9 open- ended questions Asked about: - Time of employment - Cosmetic line - “Search and Send” - Training - Employee emphasis - Incentives
  11. 11. Search and Send Most employees were familiar with “Search and Send”, but typically do not mention it to customers unless the item they seek is unavailable. Problem: The item is usually always available. Therefore, “Search and Send” is not being promoted. Employees believe incentives such as Macy*s money will encourage them to bring it up more.
  12. 12. Search and Send
  13. 13. Search and Send
  14. 14. Search and Send
  15. 15. Search and Send
  16. 16. SurveyAnalysis
  17. 17. Search and Send 325 females surveyed in 3 week time frame Asked questions about: - “Search and Send” - Customer Behavior - Customer Preferences - Customer Demographics
  18. 18. Search and Send Search and Send: - Majority of people havenever heard of it (88%)
  19. 19. Search and Send Customer Behavior:- 35% of customers spend between$15-$30 on cosmetics- Most popular items: mascara, lipstick,and eyeliner- 57% of consumers do not return to samesales associate- Mascara is replenished the most - (114 responses saying within 3 months)- Skin treatment is the least often purchased
  20. 20. Search and Send  Consumer Preferences:- Majority of consumers feel “neutral” about cosmetics being shipped to them- Majority feel “neutral” about sales associates contacting them about replenishment
  21. 21. Search and Send 68% prefer MAC as their cosmetic brand Majority of consumers purchase cosmetics at Macy*s ;biggest competition: convenience stores
  22. 22. Search and SendConsumer: - Majority 18-27 age range - Make less than $30,000 a year - Hispanic - Interests: music, fashion, school and arts
  23. 23. SecretShopping
  24. 24. Search and Send 1st Secret Shopping Experience: Omar Hernandez – Dadeland Mall- Looking for MACeyeliner: in stock- Lack of attention- Asked questions- Associate did not offerthe service
  25. 25. Search and Send 2nd Secret Shopping Experience: Andrea Albanez & Yessenia Hernandez - International Mall- Looking for Clinique foundation– Product amount was notavailable- Specifically asked about a typeof shipping service- “Search and Send” wasmentioned, but the associateoffered another product insteadof insisting on “Search and Send”
  26. 26. Search and Send Through this experiment and the results we gathered from the consumer surveys, we were able to determine that Macy*s cosmetics associates need to be encouraged to increase the awareness of “Search and Send” and make it a priority in the sale.
  27. 27. SWOTAnalysis
  28. 28. Search and Send Strong brandawareness/Loyal Great variety customers Strengths Advanced Decent price technology range
  29. 29. Search and SendLow incentives for Training is not associates sufficient WeaknessesMyClient is not yet Lack of in-store efficiently promotion integrated
  30. 30. Search and SendHeavy flow of Increase in market growth • Generation Y is open toin-store traffic change and different retail services Opportunities Tourism is Consumers not opposed to idea of increasing “Search and Send”
  31. 31. Search and Send Low controlover cosmetic MAC is most vendors popular brand decisions Threats Not as Competitors cancompetitive in adopt a similarprice recession service
  32. 32. Suggestions:Target Market & Marketing
  33. 33. Search and Send Focus on targeting: - 18-27 age group (females) - Through Music, fashion, arts, school - Make under $30,000 - Tech savvy/convenience - Cross-channel shoppers
  34. 34. Search and Send Marketing- Social Media- Slogan: “Store to door”- Signs around the store- Register displays- Pins: “Ask me how to save 10% off” - First time users can recieve10% off purchase (or one product)
  35. 35. Before Afte
  36. 36. Before After
  37. 37. Before After
  38. 38. Search and Send
  39. 39. Suggestions: Associates
  40. 40. Search and Send Training and workshops Associates did not feel comfortable nor motivated to mention “Search and Send” Implementation requires : - Intensive workshops for current employees - “Search and Send” training program for incoming employees
  41. 41. Search and Send Workshops and Training - Interactive role plays between associates and managers • Acting out different scenarios in which “Search and Send” could be mentioned • Providing associates with various phrases for promoting “Search and Send” in person and over the phone • Teach associates how to use MyClient for replenishment needs and for the promotion of other items
  42. 42. Search and SendWould take place beforestore hoursWorkshops should be heldonce a month for four monthsfor employeremphasis, customer servicequality, and employeecomfort
  43. 43. Search and Send Incentive/Reward Programs- Weekly draw from “Search and Send” sales as either a raffle or based on most sales •Prize/Bonus (Macy*s money) •Parties (Ex: weekly pot luck) •Coupon books •Elite employee Recognition
  44. 44. Search and Send
  45. 45. Search and Send
  46. 46. Suggestions:MyClient/Cust omerReplenishment
  47. 47. Search and Send Upon initial purchase, ask if they would like to be contacted and fill out a profile sheet (additive selling tool) - Skin tone and type - Brand preference - Skin concerns
  48. 48. Search and Send  Example of Customer Profile Sheet
  49. 49. Search and SendAssociates should send out reminders to their customers when their products are due for replenishment.Associatesshould also contact customers about new products.Along with replenishment provide small free samples.
  50. 50. Search and SendReduce minimum cost for free shipping of “Search and Send” - Instead of $50, lower it to $40Offerdifferent shipping options such as expedited (i.e.: tourists)
  51. 51. Search and Send Popular items such as mascara should be included in “Search and Send” Popular seasonal items such as lipstick should also be considered The lack of these seasonal items being included in “Search and Send” is hindering its success
  52. 52. CostAnalysis
  53. 53. Search and Send Product Quantity *CostBanners, register displays, Determined on size $2,500and other signage in-store of storePins for Employees 200 ($1.80 ea.) $360 Estimated TOTAL: $2,860* = Cost is based on campaignimplementation at Macy*s Dadeland
  54. 54. Conclusions
  55. 55. Search and Send Research showed “Search and Send” has a huge opportunity for the Macy*s Cosmetics department New marketing/displays will target customers to approach associates regarding “Search and Send” in a cost effective manner Associates with more training and incentives will increase their willingness to promote “Search and Send” Macy*s will continue to make everything as easy & comfortable to the customer by offering the best in making things, “Store to Door”
  56. 56. THANK YOU!