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建立人际资源圈case study Macys Department---Essay论文范文
2016-07-29 来源: 51Due教员组 类别: Essay范文
这篇case study-Macys Department Essay范文讲述了美国经济大萧条，威胁许多成功的零售巨头，包括梅西的存在的最严重的经济危机，改变了自己的品牌，提供实惠的价格，推广价值的定价等等措施，扩大消费者人群。对于梅西，门店重塑一个更好的购物体验，了解不同细分市场的角度在消费者需求和品味，并设置价格点在一个适度的水平，这种战术策略对公司的发展极其重要。
In 2005, Federated Department Stores (Federated) decided to pursue the repositioning and consolidation strategy of its 15 regional stores chains under just one national brand--Macy's. Federated's decision was in response to the decline in sales and profits of the traditional department store industry. Just three years later, U.S. was hit with the worst economic crisis since the Great Depression that threatened the existence of many successful retail giants, including Macy's. In addition, in 2008, the loss in profits during Christmas of that year was just the tip of the iceberg for department stores that traditionally were used seeing the highest yearly profits during the holiday season. Other factors such as rise of gas prices that increased delivery costs to the stores along with rise of cotton prices due to issues with the crop that increased the prices of clothes made out of cotton further exacerbated the already fragile retail industry. In addition, Macy's was positioned in the upper middle segment of the market and had no choice but to increase the prices of certain goods to its customers, thus leading to reduction in sales volume and profits.
Moreover, Macy's was faced with another challenge. The department store industry was divided into 5 market segment based on price of items. The segmented consisted of high-end luxury, high-end general, upper-middle, lower-middle, and the low-end areas. Additionally, since Macy's was already in the upper middle segment of the market, the company could not immediately launch into the other four segments without spending time developing a workable strategy that will not negatively affect its revenue generation, brand image, market share and not to mention the continue availability of the jobs of many of its employees in different locations, and the retention of the loyalty of customers and suppliers. Furthermore, the traditional department store industry was in a declining stage and consumers were scare, which made competition for the existing companies to be aggressive for sliver of the limited profits that were still available. Yet competition within existing companies was not the only threat, discount stores like Walmart and Marshalls were beginning to build momentum in the market, gaining more sales. Of course, with the popularity of the Internet, online shopping was also rising in popularity, once again adding more retailers to the already heavily competitive environment. Thus, these factors propelled Macy's to begin in repositioning and consolidating efforts to restore its vitality.
Consolidation and repositioning tactics, from internal perspective, provided Macy's an avenue in creating a national brand and reducing the unit cost of Macy's advertising and promotional budgets considerably due to having one central hub for all administrative functions and bulk purchasing. The success of the consolidation strategy is attributed to several factors. For instance, Macy's brand already had nationwide recognition as "America's department store" through aggressive national advertising activities, Fourth of July Celebrations and Thanksgiving Day Parade. Additionally, when Federated had consolidated its regionally established department stores, these stores had a well-established customer base, were regionally well known, and were in prime locations close to business districts or large shopping centers, which meant that Macy's did not have to put any efforts into developing business for those stores but rather maintain and increase business with them.
Moreover, both Federated and Macy's had solid leadership teams with strong retail and department store experiences. In fact, Federated management team was already well aware of the issues involving brand conversion since Federated had converted some of its regional stores to Macy's brand prior to the official 2005 consolidation. The management team also had a well established relationship with major supply chain and distribution networks that were now selected to serve the Macy's stores. Thus, once again Macy's did not have to put any efforts into establishing new relationships but would simply have to maintaining the existing ones. Thus, the offshoot of the consolidation tactic enabled Macy's to provide moderately priced goods to its consumers thereby maintaining high levels of competitiveness by remaining at the middle of a bell shaped curve and identifying it positioning as "affordable luxury."
Yet, offering affordable prices was not the only repositioning tactic used by Macy's, the company also changed its brand from specific demographics to fashion conscious consumers as well as the younger female audience. Macy's created a bridal registry and offered fashions made by younger designers to further differentiate its brand from the traditional department stores that had failed in their past attempt to attract consumers between ages of 18-25. In addition, Macy's launched Everyday Value strategy program that promoted value pricing such that customers would be able to purchase products without having to wait for sales day and the availability of coupons to get the most bang for their buck. These tactics would enable Macy's to broaden its consumer base, minimize the entrance of new competitors as well as the emergence of substitutes into its market segment.
Despite the benefits of consolidation and repositioning efforts, there are some negative factors to consider. Change is often very difficult as most individuals are creatures of habit. Thus, consolidation of department stores to one brand (in this case Macy's) meant that existing consumers who had regularly shopped at their favorite department stores (such as the conversion of Marshall Field's to Macy's in Chicago) would now have to adjust to new products, prices and services. In fact, the perception of some loyal consumers post consolidation was negative, complaining that Macy's store had lower quality products and services. Therefore, consumers were reluctant to shop at Macy's. Unfortunately, Macy's decision to standardize its products and pricing nationwide to lower purchasing cost actually backfired. In fact, standardization resulted in higher prices of products offered at Macy's compared to the former regional department stores chains, thus consumers were apprehensive to shop at the new Macy's.
However, post consolidation challenges that Macy's had encountered did not deter the company from pursuing its long repositioning and branding objectives. Macy's continued to aggressively promote its brand nationwide through celebrity advertisement. The company forged ahead as an exponential revenue generating entity by focusing on fashion, adding Martha Stewart, Tommy Hilfiger and Beyonce product lines while still embracing the concept of affordable luxury and participating in Fourth of July Fireworks as well as the annual Macy's Thanksgiving Day Parade. At the same time, Macy's did not ignore the unfavorable results of its post consolidation and repositioning hiccups that threatened its brand and image. Instead, Macy's made some necessary adjustments in order to accommodate its consumers. For instance, in response to negative consumer reception of the product and price standardization decision, Macy's abandoned the strategy and instead tailored the product selection based on consumers needs. In this way, customers would have a pleasant shopping experience and begin to trust in Macy's brand, which would increase the frequencies in which they visit Macy's stores and make purchases. Additionally, as a result of the financial crisis in 2008, many department and retail stores offered promotional discounts such as "percent off" to sell overstocked inventory and attract consumers, Macy's followed suit and discontinued its "Everyday Value" program to sustain itself during recession.
Indeed, individually all of the above tactics are cash cows themselves therefore in combining them Macy's was able to create a unique and valuable marketing position on the national landscape that would be difficult for its competitors to replicate. For Macy's, the consumer became the basis for its strategies in terms of the market segments generated, the objectives of the national promotions and advertisings created, the remodeling of the stores for a better shopping experience, the focus on fashion rather than demographics, understanding differences in consumers' needs and tastes and setting the price point at a moderate level. It was because of these tactics and strategies that the company began to increase its relevance and uniqueness among its targeted audience. Thus, Macy's definitely found a way to be less conservative than the traditional department store as a results of its well developed and thought out and timely executed strategies, which should continue reaping the success for several years to come.
51Due原创版权郑重声明：原创范文源自编辑创作，未经官方许可，网站谢绝转载。对于侵权行为，未经同意的情况下，51Due有权追究法律责任。
51due为留学生提供最好的作业代写服务，想获取更多Essay代写范文，亲们可以进入主页 www.51due.com 为留学生提供essay代写服务，了解详情可以咨询我们的客服QQ:800020041哟。-lc
In 2005, Federated Department Stores (Federated) decided to pursue the repositioning and consolidation strategy of its 15 regional stores chains under just one national brand--Macy's. Federated's decision was in response to the decline in sales and profits of the traditional department store industry. Just three years later, U.S. was hit with the worst economic crisis since the Great Depression that threatened the existence of many successful retail giants, including Macy's. In addition, in 2008, the loss in profits during Christmas of that year was just the tip of the iceberg for department stores that traditionally were used seeing the highest yearly profits during the holiday season. Other factors such as rise of gas prices that increased delivery costs to the stores along with rise of cotton prices due to issues with the crop that increased the prices of clothes made out of cotton further exacerbated the already fragile retail industry. In addition, Macy's was positioned in the upper middle segment of the market and had no choice but to increase the prices of certain goods to its customers, thus leading to reduction in sales volume and profits.
Moreover, Macy's was faced with another challenge. The department store industry was divided into 5 market segment based on price of items. The segmented consisted of high-end luxury, high-end general, upper-middle, lower-middle, and the low-end areas. Additionally, since Macy's was already in the upper middle segment of the market, the company could not immediately launch into the other four segments without spending time developing a workable strategy that will not negatively affect its revenue generation, brand image, market share and not to mention the continue availability of the jobs of many of its employees in different locations, and the retention of the loyalty of customers and suppliers. Furthermore, the traditional department store industry was in a declining stage and consumers were scare, which made competition for the existing companies to be aggressive for sliver of the limited profits that were still available. Yet competition within existing companies was not the only threat, discount stores like Walmart and Marshalls were beginning to build momentum in the market, gaining more sales. Of course, with the popularity of the Internet, online shopping was also rising in popularity, once again adding more retailers to the already heavily competitive environment. Thus, these factors propelled Macy's to begin in repositioning and consolidating efforts to restore its vitality.
Consolidation and repositioning tactics, from internal perspective, provided Macy's an avenue in creating a national brand and reducing the unit cost of Macy's advertising and promotional budgets considerably due to having one central hub for all administrative functions and bulk purchasing. The success of the consolidation strategy is attributed to several factors. For instance, Macy's brand already had nationwide recognition as "America's department store" through aggressive national advertising activities, Fourth of July Celebrations and Thanksgiving Day Parade. Additionally, when Federated had consolidated its regionally established department stores, these stores had a well-established customer base, were regionally well known, and were in prime locations close to business districts or large shopping centers, which meant that Macy's did not have to put any efforts into developing business for those stores but rather maintain and increase business with them.
Moreover, both Federated and Macy's had solid leadership teams with strong retail and department store experiences. In fact, Federated management team was already well aware of the issues involving brand conversion since Federated had converted some of its regional stores to Macy's brand prior to the official 2005 consolidation. The management team also had a well established relationship with major supply chain and distribution networks that were now selected to serve the Macy's stores. Thus, once again Macy's did not have to put any efforts into establishing new relationships but would simply have to maintaining the existing ones. Thus, the offshoot of the consolidation tactic enabled Macy's to provide moderately priced goods to its consumers thereby maintaining high levels of competitiveness by remaining at the middle of a bell shaped curve and identifying it positioning as "affordable luxury."
Yet, offering affordable prices was not the only repositioning tactic used by Macy's, the company also changed its brand from specific demographics to fashion conscious consumers as well as the younger female audience. Macy's created a bridal registry and offered fashions made by younger designers to further differentiate its brand from the traditional department stores that had failed in their past attempt to attract consumers between ages of 18-25. In addition, Macy's launched Everyday Value strategy program that promoted value pricing such that customers would be able to purchase products without having to wait for sales day and the availability of coupons to get the most bang for their buck. These tactics would enable Macy's to broaden its consumer base, minimize the entrance of new competitors as well as the emergence of substitutes into its market segment.
Despite the benefits of consolidation and repositioning efforts, there are some negative factors to consider. Change is often very difficult as most individuals are creatures of habit. Thus, consolidation of department stores to one brand (in this case Macy's) meant that existing consumers who had regularly shopped at their favorite department stores (such as the conversion of Marshall Field's to Macy's in Chicago) would now have to adjust to new products, prices and services. In fact, the perception of some loyal consumers post consolidation was negative, complaining that Macy's store had lower quality products and services. Therefore, consumers were reluctant to shop at Macy's. Unfortunately, Macy's decision to standardize its products and pricing nationwide to lower purchasing cost actually backfired. In fact, standardization resulted in higher prices of products offered at Macy's compared to the former regional department stores chains, thus consumers were apprehensive to shop at the new Macy's.
However, post consolidation challenges that Macy's had encountered did not deter the company from pursuing its long repositioning and branding objectives. Macy's continued to aggressively promote its brand nationwide through celebrity advertisement. The company forged ahead as an exponential revenue generating entity by focusing on fashion, adding Martha Stewart, Tommy Hilfiger and Beyonce product lines while still embracing the concept of affordable luxury and participating in Fourth of July Fireworks as well as the annual Macy's Thanksgiving Day Parade. At the same time, Macy's did not ignore the unfavorable results of its post consolidation and repositioning hiccups that threatened its brand and image. Instead, Macy's made some necessary adjustments in order to accommodate its consumers. For instance, in response to negative consumer reception of the product and price standardization decision, Macy's abandoned the strategy and instead tailored the product selection based on consumers needs. In this way, customers would have a pleasant shopping experience and begin to trust in Macy's brand, which would increase the frequencies in which they visit Macy's stores and make purchases. Additionally, as a result of the financial crisis in 2008, many department and retail stores offered promotional discounts such as "percent off" to sell overstocked inventory and attract consumers, Macy's followed suit and discontinued its "Everyday Value" program to sustain itself during recession.
Indeed, individually all of the above tactics are cash cows themselves therefore in combining them Macy's was able to create a unique and valuable marketing position on the national landscape that would be difficult for its competitors to replicate. For Macy's, the consumer became the basis for its strategies in terms of the market segments generated, the objectives of the national promotions and advertisings created, the remodeling of the stores for a better shopping experience, the focus on fashion rather than demographics, understanding differences in consumers' needs and tastes and setting the price point at a moderate level. It was because of these tactics and strategies that the company began to increase its relevance and uniqueness among its targeted audience. Thus, Macy's definitely found a way to be less conservative than the traditional department store as a results of its well developed and thought out and timely executed strategies, which should continue reaping the success for several years to come.
51Due原创版权郑重声明：原创范文源自编辑创作，未经官方许可，网站谢绝转载。对于侵权行为，未经同意的情况下，51Due有权追究法律责任。
51due为留学生提供最好的作业代写服务，想获取更多Essay代写范文，亲们可以进入主页 www.51due.com 为留学生提供essay代写服务，了解详情可以咨询我们的客服QQ:800020041哟。-lc
