Macy’s 2016
College Case Study
The University of Arizona’s
Abraham Baca/ Daniela Aguirre/
Mila Hooks/ Vili Langi
Challenge Objective
Considering 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 brand
While 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 Need
Macy’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.
â—Ź 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
Noun
The 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
Noun
Offering 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.
Noun
A 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 Rack
How it works
My 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 Rack
Why 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
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 Works
My M.A.P’s
My M.A.P’s
Why 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 Rack
How it Works
Trend 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 Rack
Why 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

Macy's Case study

  • 1.
    Macy’s 2016 College CaseStudy The University of Arizona’s Abraham Baca/ Daniela Aguirre/ Mila Hooks/ Vili Langi
  • 2.
    Challenge Objective Considering Macy’scompany 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 brand While maintaining Macy’s culture, and delivering on new experiences by implementing technology. “Be everywhere, do everything, and never fail to astonish the customer”
  • 3.
    Macy’s Need Macy’s Company Fornearly 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?
  • 4.
    Our proposal isto 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
  • 5.
    Innovation Valued SelectionConvenience Noun The 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 Noun Offering 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. Noun A 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.
  • 6.
    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
  • 7.
  • 8.
  • 9.
    My Rack How itworks My 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
  • 10.
    My Rack Why itworks 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)
  • 11.
  • 12.
    Barcode Enhancement How itWorksMacy’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 2. List of items to complement the item scanned 1. Scan any clothing item
  • 13.
    Barcode Enhancement Why itWorks 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)
  • 14.
  • 15.
    My M.A.P’s standsfor 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 Works My M.A.P’s
  • 16.
    My M.A.P’s Why itWorks 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) ____________________
  • 17.
  • 18.
    Trend Rack How itWorks Trend 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.
  • 19.
    Trend Rack Why itWorks 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) ____________________
  • 20.
    Essentially, our planis 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

Editor's Notes

  • #3 (THe Challenge
  • #6 Fix Last “Innovation” bullet
  • #19 Connects the customer's online experience to the physical brick & mortar stores. Bringing in the Virtual Retail Experience.