Strengths

• Well-Recognized: Brand has a long history and is iconic in American culture.

• High Quality: Products are perceived by customers to be of higher quality. Clothes will last longer than those bought at other stores, which makes a higher price point justifiable.

• Community Involvement: Macy’s earns great publicity through sponsoring traditional community events that are broadcast nationally like the Macy’s 4th of July Fireworks, the Macy’s Thanksgiving Day Parade and Annual Flower

Show. Macy’s also donates a large sum of money to different charities throughout the year such as the American

Heart Association’s Go Red For Women, Shop for a Cause, Reading is Fundamental, and Turn Over a New Leaf.

• Exclusive Brands: Macy’s has exclusive brands developed by recognizable names such as Martha Stewart, Jessica Simpson, Madonna, Tommy Hilfiger, Donald Trump, Ellen Tracy, Sunglass Hut and Kenneth Cole Reaction.

Weaknesses:

• Higher Price Point: With the emergence of cheaper “fast fashion” stores, younger generations choose to buy cheaper clothing more frequently than buying more expensive clothing that lasts longer. This gives Macy’s a

disadvantage with the Millenial market.

• Not Included in Evoked Set of Younger Generations: Due to the trend of buying cheaper, more fashion-forward clothing among younger generations, Macy’s is not top-of-mind when these consumers are trying to decide where to

go to purchase clothing. However, it is more likely to be in the evoked set of their parents, who look for more value

in their clothing.

• Outdated: The current offerings from Macy’s targeting Millenials are based on potentially outdated assumptions. The Material Girl line by Madonna may be fashionable, but for many of the Millenials, Madonna does not resonate

with them the same way it does with Gen X when it comes to fashion. The majority of the Millenials were not

active in pop culture until after Madonna’s reign, and while they know her as a culture icon, they do not fully

understand why she has earned this title or want to go out of their way to dress like her.

• Numerous Marketing Focuses: Since Macy’s has a number of different product lines and target markets, there are numerous marketing efforts, but not one large one that is successful. In order to target the Millenials, there is the

mstylelab, the Material Girl line, multiple Facebook pages (for Macy’s and mstylelab), and a Twitter account.

However, since there are so many different areas to try to capture the market, with no set message, many of the efforts are getting lost. The mstylelab is a good idea to get Millenials involved with the brand, but it appears to not

be monitored frequently enough to convey the message of quality that Macy’s has (especially on the “What’s your

style” section where there are multiple pictures of the same person and people dressed in ways that would not

accurately represent the Macy’s brand).

Opportunities

• Increasing Use of Technology: With each progressing generation, people are becoming increasingly comfortable with using technology in their everyday lives. 74% of Millenials believe technology makes their lives easier, and

60% of the generation turn to the Internet to learn about events (PEW 35).

• Large Millenial Generation: There are currently 50 million Millenials in the U.S. (PEW 2). If Macy’s can successfully become a shopping destination for this generation, it will allow for a potential of 50 million more

customers. Realistically, Macy’s should be able to capture around 2 million, which is a little under 5% of this

market.

• More Focused Campaign Efforts: Another major opportunity for Macy’s when considering the Millenial

generation is to create a more focused and targeted campaign. Instead of having many marketing efforts located in

every possible place a Millenial could look, Macy’s should make their marketing selections more strategically selective. Also, all of the different marketing efforts for Millenials are only branded with the “Magic of Macy’s”

tagline. However, Millenials strive to be unique, so implementing a different message specifically for them will be

more effective.

Threats

• Discount Retailers: Discount retailers such as JC Penney, Kohl’s, Target, and Wal-Mart are offering fashionable items for the Millenial market at more affordable prices. While the quality is not as good as the quality Macy’s

offers, the merchandise is at a price where they can afford to purchase multiple items. Also, these retailers not only

compete this way in the apparel division, but offer a wide range of other products Macy’s sells such as handbags,

shoes, accessories, cosmetics, bedding, and housewares.

• Cheap “Fast Fashion”: The emergence of the cheap “fast fashion” stores such as Forever 21 and H&M provide Millenial generations with clothes that rapidly change and keep up with the current trends. This could threaten the

more seasonal apparel choices that Macy’s provides. However, many Millenials in the older portion go to stores

like Forever 21 for when they need a piece of clothing they’ll only wear once or twice.

• Down Economy: Although the economy is in the process of recovery, people are still nervous about purchasing high-priced items. This is especially true when considering the numerous alternatives that offer similar products at

more affordable prices. Once the economy starts recovering more drastically, people will be more likely to revert

their spending habits back to paying more for higher quality.

Trends

• Affordable Designer Lines: Many retailers are following the trend of having limited edition, exclusive lines designed by famous designers. Target has had lines by designers like Zac Posen, Ana Sui, Shawn White, Tony

Hawk, Cynthia Vincent and Michael Kors (Target). Kohl’s has the exclusive Vera Wang’s Simply Vera line as well

as an exclusive Lauren Conrad line. Payless has also been jumping on the trend by featuring a line designed by

Isabel Toledo (Wallet Pop). Macy’s also currently features a number of designer brands, such as the Material Girl

by Madonna line. However, Macy’s differs in that most of the exclusive lines are not different, affordable lines

created by designers especially for Macy’s. Instead, Macy’s is the exclusive retailer for lines such as Kenneth Cole

and Sunglass Hut.

• Online Shopping/Mobile Apps: Another popular trend for Millenials is shopping online and usage of mobile applications. Females in the Millenial demographic are more likely to shop online than males in the same

demographic (Pew Millenials). Many Millenials also use their apps frequently and the average 18-29 year old has

22 apps on their phone. Millenials also represent the majority of all app usage and most use apps multiple times in a

day (Pew App Culture).

Sources:

• Pew Research Center- Millenials: A Portrait of Generation Next

• Pew Research Center- The Rise of Apps Culture

• Target Pressroom: http://pressroom.target.com/pr/news/target-to-offer-exclusive.aspx?ncid=24583

• Wallet Pop “Designer Lines for Less”: http://www.walletpop.com/2010/09/14/designer-lines-for-less/

Demographics

• Millenials make up a population of 50 million within the United States (PEW).

• In comparison to previous generations, they are the most ethnically diverse with only 61% of non Hispanic whites compared to the 73% in the Baby Boomers generation (PEW).

• About 54% of Millenials boast at least some college education and are more likely than their predecessors to have completed high school (PEW).

• Household income for this group is concentrated at both extremes from $20,000-$39,999 and $100,000-$149,999 (PF Gen Y). It is assumed that the lower income range is due to those who are going through college and the higher

income range accounts for those who have continued to promising careers after their college education.

• About 75% of this population is single and have never been married (PEW).

• If single, they possess a hefty amount of disposable incomes for those that land in the $100,000-$149,999 income range.

Psychographics

• 61% of Millenials agree with the statement that their generation is “unique and distinct” – mostly due to their intense utilization of technology versus generations before them (PEW).

• As generations progress they have a higher acceptance of technology and agree that it makes life easier. Generation Y is just another progression in that way of thinking with 74% agreeing with that statement (PF Gen Y).

• Generation Y is just another progression in that way of thinking with 74% agreeing with that statement. This constant interaction with technology allows them to always be connected with what is going on in the world and in

their social circle (PF Gen Y).

• With the diversity of the group, Generation Y is also more liberal and forward thinking (PF Gen Y).

• This generation is all about the idea of customizing products to express their own unique identity (PF Gen Y).

• Milenials go to great lengths in their personal consumption of media and technology to brand themselves by promoting an image through the ownership of certain products (PF Gen Y).

• Another name for this group is the Boomerang Generation which spawns from the fact that these consumers rely on their parents well into their 20’s. These financial ties to their parents are another reason they may have more

disposable income. This partial dependence stems from the fact that their spending outweighs their savings, mostly

due to college loans (PF Gen Y).

• 44% “keep up with the latest fashions.” (PF Gen Y)

• 56% believe that “it is important to be attractive to the opposite sex.” (PF Gen Y)

Consumption Constellation

• 26% of Millenials 18-29 drink coffee daily (PF Coffee).

• Approximately 75% have a social networking profile (their favorite of which 21% check several times a day) - distinctly above the rates of any other generation before them (PEW).

• This use has been found to be positively correlated with the population’s level of education with 86% of college educated Millenials having at least one social networking profile (PEW 25, 28).

• 14% of Millenials are on Twitter. However, Millenials make up 46% of the population on Twitter, which is the highest in comparison to other generations. On the other hand, this is not as many as the massive amount that would

be found on Facebook (PEW).

• 20% of Millenials (more men than women) have uploaded videos of themselves online and 32% have watched a video online in the last 24 hours (PEW).

• Approximately 60% turn to the internet to stay in the know about events (PEW).

• Due to their lenience toward fashion, it is assumed that they are shopping for clothes on a regular basis.

Sources:

• Packaged Facts: “Adults of Generation Y in the U.S.: Hitting the Demographic, Lifestyle and Marketing Mark” (Dec 2008)

• Packaged Facts: “Coffee in the U.S.: Retail, Foodservice and Consumer Trends” (Aug 2008) Pew Research Center- Millenials: A Portrait of Generation Next

Recharge: refers to technologically recharging your devices and can also be used as a reference to drinking coffee. You drink

caffeine/coffee to “recharge” yourself. As it applies to Macy’s, you can “recharge” your wardrobe and give it new life. The

“Recharge” theme can be broken down into the “Reboot,” “Refresh,” “Remix,” and “Reset” themes for different departments that

Millenials could also be interested in. These words are all technology related and fit with the “Recharge” theme.

Caffeine

• Coffee

• 26% of Millenials 18-29 drink coffee daily (PF Coffee).

• Those who don’t go to Starbucks all the time make up an even larger portion (PF Coffee).

Technology Focus

• A whopping 83% of Millenials surveyed through Pew Research Center admitted that they sleep with their cell phones on or right next to their bed (PEW).

• 62% have smartphones and wireless internet in this generation (PEW).

• 90% of Millenials send and receive emails at least occasionally (PEW).

• Phones are the new status symbol of the Millenial generation.

Sources:

• Pew Research Center- Millenials: A Portrait of Generation Next Packaged Facts: “Coffee in the U.S.: Retail, Foodservice and Consumer Trends” (Aug 2008)

Starbucks Demographics

• According to the Packaged Facts research report on the U.S. Coffee Retail Market, customers that frequent Starbucks stores are 18-24 years old, affluent, live on the West Coast and work in professional or technical jobs.

• By looking at the Quantcast analysis of traffic to starbucks.com, the visitors to the Starbucks website skews towards female with them making up 59%.

• 71% of their visitors fall in the 18-49-age range with it split relatively evenly between the 18-34 and 35-49 ranges at 39% and 32% respectively.

• 75% of visitors to the website are Caucasian, although the website tends to attract more people of Asian and Hispanic descent than other websites do.

• The Starbucks website attracts a more affluent market with 64%, of the visitors making over $60,000 per year. Of those 64%, 33% of them make over $100,000 per year.

• 47% of the visitors have had some college education and 17% have attended graduate school.

• The majority of the visitors have no children in the household.

• From this information, one can assume that the target demographic for Starbucks is a Caucasian female between the ages of 18 and 24 who is well-educated, affluent, lives on the West Coast and has no children.

Psychographics • The majority of the Starbucks target market falls in the Generation Y category. According to the PEW Research

Center’s “Millenials: A Portrait of Generation Next,” Generation Y can be characterized in 3 main ways: confident, connected, and open to change.

• This category is more likely to use money to determine the level of their success and use purchases to define them.

• They are also more drawn to customizable products, so they put their own touch on the product.

• Generation Yers are more likely to be involved in online communities, with 85% of them belonging to a social networking site.

• This segment also prefers food that is convenient and portable, but is 34% more likely than other adults to prefer gourmet flavors.

• 32.8% of this segment reads entertainment magazines, although they are more likely to read it in digital format.

Consumption Constellation

• According to the Quantcast lifestyle page for starbucks.com, people who visit their website are also likely to visit other food commerce sites as well as sites for fashion, apparel, magazines, consumer goods.

• The magazine sites they visit are high quality, self-aware publications such as “Glamour,” “Self” and “O, The Oprah Magazine”.

• According to the Packaged Facts report about the Generation Y segment, this market is very likely to have a various amount of electronics. They are more likely than the average adult to have large, HDTVs as well as DVD players

and surround sound systems. They are also more likely to subscribe to premium cable channels such as HBO,

Showtime and Starz. They are almost twice as likely to own any type of video game system or mp3 player.

Sources:

• http://www.quantcast.com/starbucks.com#lifestyle

• Packaged Facts: “Adults of Generation Y in the U.S.: Hitting the Demographic, Lifestyle and Marketing Mark” (Dec 2008)

• Packaged Facts: “Coffee in the U.S.: Retail, Foodservice and Consumer Trends” (Aug 2008)

• Quantcast- http://www.quantcast.com/starbucks.com#demographics

Promotion Details

• On average, each Starbucks location has 468 orders per day (thestreet.com)

• During the Starbucks “Find the Star” sweepstakes, we’re giving participating Starbucks locations 50 red stars per day.

• The amount of red stars was based on the average of orders. Some Starbucks will have more frequent winners, others will not.

• Starbucks employees are to randomly place the 50 red stars on cups the night before at closing so they are given to consumers throughout the next day.

• Each consumer that reveals a red star on their cup earns a coupon for 25% off one item at Macy’s

• The 25% off discount is valid for 7 days after the day they receive the coupon, which gives them a weekend to shop no matter what day they obtain it.

Why This Will Benefit Macy’s

• This promotion will drive traffic to stores.

• It will also increase awareness of the Macy’s brand among all Starbucks customers- new and current Macy’s shoppers along with Millenials.

Why This Will Benefit Starbucks

• People will return to Starbucks more frequently in an attempt to get a Macy’s coupon.

Starbucks Market Works with Macy’s Current Market and Millenials

• The following are statistics about daily coffee drinkers segmented by age.

• 26% of daily coffee drinkers are Millenials ages 18-29

• 47% of daily coffee drinkers are between ages 25-39

• 61% of daily coffee drinkers are between ages 40-59

• The promotion with Starbucks not only targets Millenials, but it will continue to target Macy’s current target market.

• Currently, Macy’s targets women 18-49 (Quantcast). Those women are not alienated in the Starbucks promotion.

Sources: • Quantcast: http://www.quantcast.com/macys.com

http://www.thestreet.com/story/10897275/starbucks-daily-customer-visits-expected-to-rise.html

Promotion Details

• The “Find the Star” sticker promotion will last 1 month.

• In order to increase awareness of the “Find the Star” sticker promotion, we will run print ads in 3 magazines: People (which runs weekly), Glamour and Allure.

• Ads will run 1 month prior to the promotion and run through the month of the promotion.

• We will also advertise it in the participating Starbucks store windows, in the drive-thru and at the register.

• Signs will also be placed at the point of purchase in Macy’s stores to encourage people to go to Starbucks specifically for the Macy’s discount.

Print Ad Placement Details

• People

• Circulation: 3,553,420

• 71.5% Female (More likely to also reach males)

• 37.34% Aged 18-34

• Circulated Weekly

• Glamour

• Circulation: 2,320,325

• 93% Female

• 50% Aged 18-34

• Circulated Monthly

• Allure

• Circulation: 1,082,873

• 92% Female

• 56.8% Aged 18-34

• Circulated Monthly

Sources:

• People Media Kit: http://www.people.com/people/static/mediakit/main.html

• Glamour Media Kit: http:///www.condenastmediakit.com/gla/circulation.cfm

• Allure: http://www.condenastmediakit.com/all/circulation.cfm

Promotion Details

• In order to encourage repeat visits to Starbucks from Macy’s customers, we will be running a 2 month promotion

during the back-to-school season.

• During the promotion, customers who spend $75 or more on Macy’s merchandise will receive a free refill cup

printed with both the Macy’s and Starbucks logos on it.

• Each customer is limited to receiving 1 refill cup per visit so people do not split their transactions. i.e. if someone

spends $150, they will not receive 2 cups.

• While there is a limit on cups per visit, if the same person were to return 3 weeks later and purchase another $75

worth of merchandise, they will receive another cup.

Why This Will Benefit Macy’s

• Sustainability and Macy’s

• Macy’s is ranked as one of the top 50 “greenest” companies in the world.

• Within the United States, it holds a place as the 5th most sustainable company.

• The company also contributes money annually to the Turn Over a New Leaf Foundation.

• Increased Revenue

• If customers are close to the $75 price point, they would be motivated to get more merchandise in order to receive a refill cup.

• Example: If someone’s purchase comes to a total of $63, once the cashier tells the customer they can get a refill cup at $75, they will pick out another product to reach $75.

Why This Will Benefit Starbucks

• Logo placed on the cup will keep Starbucks in the forefront of customers’ minds.

• More people will visit the store due to the discounted refill price.

Sources: http://www.macysinc.com/aboutus/sustainability/top100.aspx

Promotion Details

• Bus Tour will be held at Macy’s stores across the country to promote discovering the face of the

“Recharge Your Style” campaign.

• The first time the winners will be featured is to promote the summer fashion season, and they will

continue to be the face of the campaign for the rest of 2012.

• The tour will take place 3 weeks during the month of April, allowing Macy’s a full month to

decide the winner, design the ad and submit to the magazines before the summer fashion season.

• Tour will stop in 10 of the 50 most populated cities in the nation.

• Competition will be open to anyone ages 16-25, and those under 18 will need a parent/guardian present to sign a release.

• It is assumed that if participants try on an outfit they feel good wearing and like it enough to get photographed in it, they will have a significant emotional investment and buy at least one piece of

the ensemble.

Schedule of Travel:

• Thursday: New York City - Park outside of Macy’s store

• Friday: New York City Opening Event

• Saturday: Drive to Atlanta (14 hours, 888 miles)

• Sunday: Atlanta Event

• Monday: Drive to Dallas (13 hours 15 minutes, 780 miles)

• Tuesday: Dallas Event

• Wednesday: Drive to Phoenix (17 hours, 1,068 miles)

• Thursday: Phoenix Event

• Friday: Drive to Los Angeles (6 hours, 372 miles)

• Saturday: Los Angeles - Event held Saturday

• (Drive Saturday night 6 hours)

• Sunday: San Francisco Event

• Monday: Drive to Seattle (13 hours, 808 miles)

• Tuesday: Seattle Event

• Wednesday : Drive to Denver (21 hours, 1,371 miles)

• Thursday: Continue Driving Denver

• Friday: Denver Event

• Saturday: Drive to Kansas City (9 hours, 600 miles)

• Sunday: Kansas City Event

• Monday: Drive to Chicago (8 hours, 510 miles)

• Tuesday: Chicago Event

• Wednesday: Drive to New York City (15 hours, 790 miles)

• Thursday: New York City Closing Event

• Friday: New York City Closing Event

Contest Logistics

• 3 Main Stations

• “Recharge Your Style Station” will focus on all of the “RE-” branches of the campaign.

• Contestants will cycle through the “RE-” departments to put together their ensemble for the photoshoot.

• Signs will label each “RE-” department so they can easily navigate.

• Photography Station

• Bus will transport a professional fashion photographer (preferably one who has shot for a brand currently sold at Macy’s) to each location in order to ensure equal quality of all contestants’

photographs.

• Photographer will take 3 pictures of each contestant.

• Contestants may pose as individuals or part of a group.

• Contestants are encouraged to be creative with their poses and express their own style.

• Digital Station

• Multiple computers will be set up where contestants can review their photographs and choose the one they would like to submit.

• Pictures will be automatically uploaded to the computer stations using Eye-Fi SD cards, which transmit images over the wifi network .

• Contestants will also put their chosen image into a template created for them to use as their Facebook profile picture.

• This will include the “Recharge Your Style” and Macy’s logo, as well as a photographer’s copyright signature.

• Contestants will then be able to email their Facebook template picture to themselves .

Contest Prizes

• 4 Grand Prize Winners

• Photograph that was taken in the Macy’s stores will become the new print ad for the “Recharge Your Style” Campaign for the summer fashion season.

• When promotions begin for the fall and winter seasons, the same winners will be flown out to New York for photoshoots. These photos will be used in print ads promoting the upcoming 2012 seasons.

• Selected winners should be representative of the Milenial population.

• Peer to Peer marketing is the most effective among Milenials, due to their distrust of corporate marketing.

• 79% of people 25-34 say they like ads that represent their lifestyle.

• Thus, in order for the contest to achieve maximum results, the winners should be someone that accurately reflects their lifestyle.

• Facebook Contest

• Smaller prizes will also be distributed through a Facebook competition.

• More details can be found on the Facebook portion on Slide 13.

Print Ad Overview

• In order to create awareness and hype for the bus tour, we will place print ads in media Millenials will likely see them.

• Print ad will be on a black page to draw attention.

• Main focus of the print ad will guide them to the macys.com/recharge website, where they will see information about all portions of the campaign, including tour dates and contest guidelines.

Print Ad Placement

• Seventeen

• Circulation: 8,564,000

• 88% Female

• 56% Aged 18-34

• Circulated Monthly

• Glamour

• Circulation: 2,320,325

• 93% Female

• 50% Aged 18-34

• Circulated Monthly

• Self

• Circulation: 1,519,016

• 93% Female

• 41% Aged 18-34

• Circulated Monthly

Other Placements

• Point of Sale

• Signs will be placed by Macy’s registers in bus tour cities.

• Flyer versions of the print ad will be placed in Macy’s shopping bags with purchased merchandise so customers can see it later as well.

• Movie Theatres

• Ads similar to the style of the print ad will be displayed in movie theatres in the bus tour cities.

• When you purchase space in movie theatres, your ad gets placed online at ticket retailers, on the screen and in the theatre lobby.

• Females aged 15-24 are more likely than males to pay attention to commercials in movie theatres (PF Young Adult)

• 53.3% of females notice ads in lobbies and 51.8% are likely to pay attention to commercials during movies (PF Young Adult)

• Ads will preferably be shown in movie theatres located in the same mall as the Macy’s store the bus tour will visit.

Sources:

• Seventeen Media Kit: http://www.seventeenmediakit.com/r5/cob_page.asp?category_code=read

• Glamour Media Kit: http://www.condenastmediakit.com/gla/circulation.cfm

• Self Media Kit: http://www.condenastmediakit.com/sel/circulation.cfm

• Quantcast: www.quantcast.com/self.com

• Packaged Facts: “The US Young Adult Market: How 15-24 Year Old Consumers Are Transforming the Marketplace” (Aug 2005)

Facebook Contest Details

• 42% of Facebook users are ages 18-34 (Quantcast),

• After contestants email their Facebook formatted picture, they have the option of setting it as their profile picture and entering to win $50 gift cards.

• These gift cards will be given out to 25 winners per week and the contest will run for 4 weeks, totaling 100 gift card giveaways.

• Contest will not begin until May so that every person who participated in visiting the bus tour has equal opportunity to win.

• Prizes will be given out on a week-by-week basis to random Facebook users to post to the Macy’s wall.

• By offering a smaller contest, it will encourage a higher turnout at the bus tour events since there is a higher chance of winning a prize.

• Gift card prizes offer Macy’s the chance to increase their revenue since consumers will spend 30-40% more than the gift card value (Profit Point).

Entry Qualifications

• In order to participate in the Facebook Contest, participants must:

• Put their photo shoot picture as their Facebook profile picture

• “Like” the Macy’s Facebook page

• Post a message that includes the words “Recharge Your Style” on the Macy’s Facebook wall

• Entry qualifications will cause Millenials to engage with the Macy’s Facebook page and thus, the brand itself.

Sources:

• Quantcast: http://www.quantcast.com/facebook.com

• Profit Point- http://rewardforloyalty.com/downloads/Final_GWP_White_Paper.pdf

Current Macy’s iShop App

• It makes macys.com more accessible.

• Users can shop for and purchase items.

Millenials and Smartphone Applications

• 79% of 18-29 year olds use the apps they have on their phones (PEW).

• The average Millenial has 22 applications (PEW).

• Millenials represent 44% of all app usage- the most of any generation (PEW).

• 18-24 year olds use apps multiple times per day (PEW).

Sources:

• Pew Research Center- The Rise of Apps Culture

Step 1

• When the user opens the iShop application, they will see the normal home screen with a special “Recharge Your

Style” banner across the top

• In order to access the “Recharge Your Style” section (shown in Step 2), the user should click the banner to see the

Recharge options

Step 2

• Once they have entered “Recharge Your Style” section, they will be able to access the merchandise in the different “RE-” departments

• Even though they are in the “Recharge Your Style” section, they can still access other departments.

Step 3

• After the user selects a “RE-” department, they can select the piece that they want.

• On the merchandise details screen (Shown in Step 3), the user will have the option to select another “RE-”

department.

• The app will then suggest items that would pair well with the chosen merchandise to create an ensemble.

The user can then save their outfit to their macys.com account to access in-store or on macys.com/recharge.

Website

• The macys.com/recharge website will incorporate all of the components of the “Recharge Your Style” campaign.

• The main purpose of the website before and during the bus tour is to create hype and provide more detail.

• By creating a unique url, it will be easy to monitor the success of the print ads and the “Recharge Your Style” campaign in general by utilizing website analytics.

• Online buying is more popular with female college students (54%) than with their male counterparts (46%) (PF Youth Market).

Features

• Twitter Feed

• 46% of Twitter users are Millenials (Quantcast).

• It allows visitors to read honest opinions about the brand.

• Those who participate in the bus tour competition can share their experience with others by using a hashtag promoted at the event to categorize their tweets.

• The ads for both Starbucks promotions and the dates those promotions will occur will also be featured.

• “Recharge Your Style” suggestions work the same way as they do in the iShop application, with product recommendations for selected merchandise.

• Dates and cities for the bus tour as well as full guidelines and details of how to participate are strictly offered on the website alone.

• Video blog following the bus tour

• It will be updated to show behind the scenes footage of events.

• During photoshoots, there will be a live feed so those not near the bus tour can see the experience and build hype for upcoming cities.

• After the bus tour is over, the winning print ads will replace the cities and tour information with bios on the winners.

• The video blog following the bus tour will then turn into a video blog for the winners where they can share their experiences.

Sources:

• Quantcast- http://www.quantcast.com/twitter.com

• Packaged Facts: “The US Young Adult Market: How 15-24 Year Old Consumers Are Transforming the Marketplace” (Aug 2005)

Implementation Timeline

• iShop Application and Website will be active throughout the 2012 campaign

• February

• Kickoff to the campaign will be announcing the co-brand with Starbucks and the Bus Tour.

• Ads for the “Find the Star” promotion and bus tour will begin running in specified placements.

• March

• “Find the Star” promotion begins in Starbucks stores and lasts the entire month.

• Starbucks promotion and bus tour ads continue to run in specified placements.

• April

• Bus tour occurs the first 3 weeks of the month.

• The last week will be spent compiling all submissions.

• May

• Macy’s executives will judge submissions from the bus tour and choose a winner.

• Winning ads will be submitted to magazines in time for July issues (in June).

• Facebook gift card contest runs the entire month with 25 weekly winners.

• June

• Winning bus tour ads run in selected placements to advertise summer fashion.

• July

• Winning bus tour ads continue to run for summer fashion.

• August

• Winning bus tour ads continue to run for summer fashion

• The second Starbucks promotion begins for back-to-school season. Customers at Macy’s spend $75 + receive a free refill cup.

• Middle of the month, fly bus tour winners to New York to complete their fall fashion photo shoot in time to submit to magazines for October issue (in September)

• September

• Winning bus tour ads run in selected placements to advertise fall fashion.

• The second Starbucks refill cup promotion continues through the month.

• October

• Winning bus tour ads continue to run for fall fashion.

• November

• Winning bus tour ads continue to run for fall fashion.

• In the middle of the month, Macy’s flies the bus tour winners to New York to complete their winter photoshoot in time to submit to magazines for January issue (in December).

• December

• Winning bus tour ads run in selected placements to advertise winter fashion.

• January

• Winning bus tour ads run in selected placements to advertise winter fashion.

• February

• Winning bus tour ads run in selected placements to advertise winter fashion.

• Option to repeat campaign for another year

Reposition

• Make Macy’s marketing efforts more interactive.

• “Recharge Your Style” message directly correlates with their interests and lifestyle.

• The campaign utilizes Millenials’ acceptance of peer-to-peer marketing to effectively communicate ideas.

Encourages Purchases

• The campaign message will reach Millenials 3-10 times- the optimal number of exposures for memory and awareness purposes.

• It offers customers numerous incentives for purchasing and interacting with the brand.

• Discount through Starbucks promotion

• A significant discount is offered to persuade visits to a store from hesitant buyers.

• Gift Cards

• The Facebook contest gift card giveaways lead to an increase in revenue.

• The Starbucks refill cup promotion persuades people to spend more.

• Buyers near the $75 limit will be persuaded to buy more to surpass $75 and obtain the cup.

Emotional Investment

• Trying on and getting photographed in an outfit will create a willingness to buy.

• By integrating social networks, Millenials have the chance to interact more with the Macy’s brand.

• Competitions will attract more attention. Winning something of this caliber will help them achieve their success, which is of significance to Millenials.

• Video blogs will allow viewers to “get to know” the people involved in the bus tour as well as the winners after they are announced.