Macy's Business marketing plan: Strategies for Success in the Retail Industry
Question
Task: What are the key factors contributing to Macy's success in the global retail market, and how does its Business marketing plan strategy and store location play a role?
Answer
Part 1 - Macys Business marketing plan
1. Benefits of the Products and Services
One of the main factors to consider while starting up a business is the products and services the business intends on offering to its customers (Macy's, 2017). It’s also always advisable to offer products which fall under the basic necessity category. This is due to them being basic necessities and consumers prioritizing their purchase even during times of economic hardship (Kumar, 2008, p. 49). Macy has opted to specialize in offering affordable and high quality fashion clothing which allows the business to fall under the basic need category which helps ensure a stable client base.
In addition to this Macy also offers unique house hold products and accessories which customers purchase if required. As per the Business marketing plan Clothing continues to be the main product offered by Macy's due to it being a basic requirement and most working class people needing to good clothing from well-recognized brands for their daily office use as well as for special occasions.
Today most people are growing financially stable and his results in them demonstrating their stability by wearing globally recognized clothing brands. Macy's has managed to distribute its stores across the globe but more importantly, has developed a powerful e-commerce website which can be accessed by customers from across the globe for their shopping (Warren, 2011, p. 515).
Unlike most other e-stores which have subsidiary websites for each country, Macy’s has a single website from where all customers shop. All products are then shipped from the USA to their customers across the globe which helps deliver an added feeling of prestige. This also means the customer is likely to purchase unique products which are not available on the global market thus helping set them apart from the common person.
Clientele
Unlike most other e-stores like eBay which focus on selling their products at the lowest possible price, Business marketing plan placed its main focus on delivering the very best quality (Allen & Wilburn, 2002, p. 92). All products sold by Macy’s have under gone a strict quality check and audit before being listed and strict guidelines set for suppliers.
Targeted Customers
This has resulted in Macy’s targeting the middle-income groups who are capable of affording reputed brands and who are looking to purchase the best and highest quality. The majority of Macy’s customers are from the working and business classes but an increasing number of sales are being generated from emerging countries like China, India, Brazil and South Africa. This is due to a growing population of people having surplus money in the emerging markets which result in them wanting to purchase top ranked brands so as to establish and display their social stature (Armstrong, Adam, Denize, & Kotler, 2014).
By focusing on delivering high quality and the middle-income groups, the brand has been able to register continued growth and rapid international trade from customers in emerging markets looking to purchase unique brand clothing not available in their own markets.
2. Macy’s Client Demographics
Having targeted the middle-income groups who happen to also be the largest income groups globally, Macy’s has managed to secure a huge client following across both developed and developing nations. Today thanks to Business marketing plan, Macy’s has over 700 stores in the USA and several other major cities but online clients constitute to a larger number of sales as compared to their walk in customers. This has resulted in most Macy’s sales being generated from internet shoppers mainly from Europe and emerging economies like China, India, South Africa and Brazil.
3. Most Important Features Linked To Macys Success
Macy Inc. is today ranked as being among the largest and most successful retailers globally and this is directly associated with the brand's product choice and focusing on specialization. Most other stores will have a huge verity of products which makes it difficult to monitor quality. Macy's has focused its attention on offering a basic necessity product and focusing its attention on just this one product and how to market, sell and ship them to customers across the globe (Bednarz, 2011). This is rare among online stores where they avoid shipping abroad. This has limited the options customers have of shopping abroad online which have given Macy's a competitive advantage.
2. Macys Location
With regard to its stores, Macys also spends adequate time strategically planning its expansion so as to maximize the store's exposure to customers (Church & Murray, 2009). Macy's Business marketing plan focusing on several factors before selecting any store to expand to which also help improve the store's rate of success.
a. Amount of Space
Space plays an important role while selecting any store as this determines the number of products that would be put on display as well as how clearly they can be displayed at the store. Macy's prioritized leasing stores meaning between 300-500 square yards which allow for adequate space to display their products as well as adequate space for customers to use while in the store. Offering clear displays helps also increase the number of sales as many customers are likely to see something they like and decide on purchasing it even while they had not planned to make the purchase
b. Type of Building and Location
It’s also important that the store is located at a famous and modern building as well as being located in the business district so as to maximize the number of customers visiting the store. Macy's Business marketing plan prioritized on selecting stores within large shopping malls to which customers have easy access thus helping improve accessibility and the number of customers visiting the store.
c. Power and Other Utilities
It’s also important that the store has access to a constant power supply and amenities which will ensure customers remain comfortable at all times while visiting the store (Bank, 2015, p. 74).
Bibliography
Allen, D., & Wilburn, M. (2002). Linking Customer and Employee Satisfaction to the Bottom Line: A Comprehensive Guide to Establishing the Impact of Customer and Employee Satisfaction on Critical Business Outcomes. wisconsin: ASQ Quality Press.
Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of Business marketing plan. Melbourne: Pearson Australia.
Bank, W. (2015). Doing Business 2016: Measuring Regulatory Quality and Efficiency. Washington: World Bank Publications.
Bednarz, T. (2011). Identifying and Meeting Customer Expectations: Pinpoint Customer Service Skill Development Training Series. Majorium Business Press.
Church, R., & Murray, A. (2009). Business site selection, location analysis, and GIS. John Wiley & Sons.
Kumar, A. (2008). Entrepreneurship Development. New Delhi: New Age Internationa.
Macy's. (2017, August 1). About Us. Retrieved Aug 1, 2017, from Macy's Inc: http://www.macysinc.com/about-us/
Warren, J. (2011). Global Business marketing plan Management. Noida: Pearson Education India. Business marketing plan
