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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Page 1: Macy*s Presentation

WELCOME!

Page 2: Macy*s Presentation

Michael Perez

Alexa Naranjo

Alejandra Guardia

Yessenia Hernandez

Anesys Mena

Tish Durham

Priscilla Martinez

Andrea Albanez

Oscar Roger

Omar Hernandez

Cosmetics Search & Send

Page 3: Macy*s Presentation

Introduction

Page 4: Macy*s Presentation

Search and Send

One of the oldest and most iconic in Miami

Third most revenue generating Macy*s store in the nation

-Distribution Center = Large

Inventory

Macy*s at Dadeland Mall:

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Search and Send

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Search and Send

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?

Two Driving Questions

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Research

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Employee InterviewsConsumer Surveys

- Focus on femalesSecret Shopping

Search and Send

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Employee Analysis

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Search and Send

Paper interviews with 9 open-ended questions

Asked about:- Time of employment- Cosmetic line- “Search and Send”- Training- Employee emphasis- Incentives

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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.

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Search and Send

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Search and Send

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Search and Send

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Search and Send

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SurveyAnalysis

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Search and Send

325 females surveyed in 3 week time frame

Asked questions about:- “Search and Send”- Customer Behavior- Customer Preferences- Customer Demographics

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Search and Send

Search and Send:- Majority of people have

never heard of it (88%)

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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 same sales associate

- Mascara is replenished the most - (114 responses saying within 3 months)

- Skin treatment is the least often purchased

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Search and Send

- Majority of consumers feel “neutral” about cosmetics being shipped to them

- Majority feel “neutral” about sales associates contacting them about replenishment

Consumer Preferences:

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Search and Send

68% prefer MAC as their cosmetic brand

Majority of consumers purchase cosmetics at Macy*s ;biggest competition: convenience stores

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Search and Send

Consumer:

- Majority 18-27 age range - Make less than $30,000 a year - Hispanic - Interests: music, fashion, school and arts

Page 23: Macy*s Presentation

Secret Shopping

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Search and Send

1st Secret Shopping Experience: Omar Hernandez – Dadeland Mall

- Looking for MAC eyeliner: in stock- Lack of attention- Asked questions- Associate did not offer the service

Page 25: Macy*s Presentation

Search and Send

2nd Secret Shopping Experience: Andrea Albanez & Yessenia Hernandez - International Mall

- Looking for Clinique foundation

– Product amount was not available

- Specifically asked about a type of shipping service

- “Search and Send” was mentioned, but the associate offered another product instead of insisting on “Search and Send”

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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.

Page 27: Macy*s Presentation

SWOT Analysis

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Search and Send

Strong brand awareness/Loyal

customersGreat variety

Advanced technology

Decent price range

Strengths

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Search and Send

Low incentives for associates

Training is not sufficient

MyClient is not yet efficiently

integrated

Lack of in-store promotion

Weaknesses

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Search and Send

Heavy flow of in-store traffic

Increase in market growth

• Generation Y is open to change and different

retail services

Tourism is increasing

Consumers not opposed to idea of “Search and Send”

Opportunities

Page 31: Macy*s Presentation

Search and Send

Low control over cosmetic

vendors decisions

MAC is most popular brand

Not as competitive in price recession

Competitors can adopt a similar

service

Threats

Page 32: Macy*s Presentation

Suggestions:

Target Market &Marketing

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Search and Send

- 18-27 age group (females)

- Through Music, fashion, arts, school

- Make under $30,000- Tech savvy/convenience- Cross-channel shoppers

Focus on targeting:

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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)

Page 35: Macy*s Presentation

Before

After

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Before

After

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Before

After

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Search and Send

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Suggestions:

Associates

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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

Page 41: Macy*s Presentation

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

Page 42: Macy*s Presentation

Search and Send

Would take place before store hours

Workshops should be held once a month for four months for employer emphasis, customer service quality, and employee comfort

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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

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Search and Send

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Search and Send

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Suggestions:

MyClient/Customer

Replenishment

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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

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Search and Send

Example of Customer

Profile Sheet

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Search and Send

Associates should send out reminders to their customers when their products are due for replenishment.

Associates should also contact customers about new products.

Along with replenishment provide small free samples.

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Search and Send

Reduce minimum cost for free shipping of “Search and Send”

- Instead of $50, lower it to $40

Offer different shipping options such as expedited (i.e.: tourists)

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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

Page 52: Macy*s Presentation

Cost Analysis

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Search and Send

Product Quantity *CostBanners, register displays, and other signage in-store

Determined on size of store $2,500

Pins for Employees 200 ($1.80 ea.) $360

Estimated TOTAL: $2,860

* = Cost is based on campaign implementation at Macy*s Dadeland

Page 54: Macy*s Presentation

Conclusions

Page 55: Macy*s Presentation

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”

Page 56: Macy*s Presentation

THANK

YOU!