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

Transcript of Macy*s Presentation

WELCOME!

Michael Perez

Alexa Naranjo

Alejandra Guardia

Yessenia Hernandez

Anesys Mena

Tish Durham

Priscilla Martinez

Andrea Albanez

Oscar Roger

Omar Hernandez

Cosmetics Search & Send

Introduction

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:

Search and Send

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

Research

Employee InterviewsConsumer Surveys

- Focus on femalesSecret Shopping

Search and Send

Employee Analysis

Search and Send

Paper interviews with 9 open-ended questions

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

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.

Search and Send

Search and Send

Search and Send

Search and Send

SurveyAnalysis

Search and Send

325 females surveyed in 3 week time frame

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

Search and Send

Search and Send:- Majority of people have

never heard of it (88%)

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

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:

Search and Send

68% prefer MAC as their cosmetic brand

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

Search and Send

Consumer:

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

Secret Shopping

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

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”

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.

SWOT Analysis

Search and Send

Strong brand awareness/Loyal

customersGreat variety

Advanced technology

Decent price range

Strengths

Search and Send

Low incentives for associates

Training is not sufficient

MyClient is not yet efficiently

integrated

Lack of in-store promotion

Weaknesses

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

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

Suggestions:

Target Market &Marketing

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:

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)

Before

After

Before

After

Before

After

Search and Send

Suggestions:

Associates

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

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

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

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

Search and Send

Search and Send

Suggestions:

MyClient/Customer

Replenishment

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

Search and Send

Example of Customer

Profile Sheet

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.

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)

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

Cost Analysis

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

Conclusions

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”

THANK

YOU!