Marcy’s Agency Brief

Target Audiences

Marcy’s has not been able to effectively adopt the changing shopping habits and cope with e-commerce competition. This has led to the decline of sales in the past few years. Currently, a considerable number of customers shop online. Many brick and motor companies have been struggling because of the online shopping strategy.  That is to say, Marcy’s needs to formulate marketing strategies that will help the retail store increase its sales. Marcy’s intends to recruit newer and younger customers into its customer base as well as retain its loyal and older customers. Macy’s wants to communicate with customers through TV, social media, and online platforms.   

The department store wants to spur growth by working with local TVs to push for the wider national campaigns. The tent-pole promotions will focus on the emotional sentiments of audiences and customers. The advertisement will develop a strong emotional marketing campaign.  Marcy’s has been accused of using old tactics like discounts and deals instead of heftier and richer marketing strategies. Marcy’s wants to use 15-second local TV ads rather than 30-second national spots. 

Macy’s wants to revamp its digital marketing strategies to grow pick-up-in-store services and online sales.  With more shopping and advertising going digital, Macy’s want to target Facebook, Twitter, and Instagram customers. The company has realized that social media is one of the best platforms to market its products in the contemporary world. Marcy’s intended to run promos via the three different social media platform. The department store wants to understand the audiences and the customers that engage with its ads within social media platform.  Marcy’s wants to create a video that will catch the attention of social media users.  The department store wants to target people who are engaging with Cyber and Black Friday content a feature revealed by Menlo Park, Calif. – based corporation. Short Twitter and Instagram ads will tell the snippet story to catch the attention of the audiences and get them to view the full 3 to 5 minutes video later on Facebook.   

The short ads would be meant to make audiences curious driving them to the full film. The retailer wants to make use of Facebook new e-commerce features.  The new features make it possible for the customer and audiences to land to a page with more information concerning a product when they click on the ad in the News Feed sections.  The second click will direct users to the Macy’s website where they can shop the item. People who will view a particular item online will also be able to view other products they do not know. The department store also wants to increase the number of customers who use Macy’s app. The company wants to enhance the effectiveness of its app to provide customers with ease from shopping anywhere. Marcy’s understand the significant of technology in customers’ lives and want to introduce new features that will offer memorable shopping experience.    The Marcy’s app and use of social medial channels will help the retailer company build a relationship with young customers who are heavy mobile users. 

Ideas for the Campaign

For decades, Marcy’s has been well-known for its reputation and one of the most dynamic brick-and-mortar companies. But in the recent past, Marcy’s has been reporting decline in its annual sales despite spending million dollars to market its products. For instance, in 2016 the company spent $679.9 million on media in the United States. This was a decline with 16 percent compared to 2015. The main of the retail company is to increase its sales, retain old and loyal customers as well as recruit newer and younger consumers.  In August 2015, the company reported its 10th quarterly sales decline. The company also closed about 30 stores as part of its strategy to minimize the cost. In line with these objectives, I think Marcy’s needs to radically change its marketing strategies.  The new marketing program and strategies will help Marcy’s increase the company sales.  The idea for these strategies is to be more efficient. 

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In the attempt to resolve customer retention issues, the company needs to adopt a more targeted method to its marketing program. Marcy’s needs to do away with national TV campaigns and concentrates on local TV ads that target specific consumers and markets. This targeted method will ultimately help the company minimize its marketing spending and reach to its most loyal and older customers. The tone and the message of these ads need to change, with Marcy’s concentrating on the emotional sentiment of its subject. Consumer behaviors have shown a positive correlation between marketing ads that focus on the emotion sentiment of customers and customer retention. Deeper emotion connection is a powerful marketing component that has high chances of retaining consumers than adopting discounting methods. 

Marcy’s generates mixed reactions from it complex coupons and promotions. For instance, “get 40 percent right away and more if you use a store card.” This approach turns customers away because sometimes it is difficult to figure out the price of products. The endless couponing cheapens and hurts the company.  This does not mean I would advise the company to do away with couponing or discounting, but need to change this strategy. It needs to focus more on products that stress on Macy’s fashion cred. Marcy’s should not concentrate on offer coupons on items that are sold on big events such as President’s Day. This approach minimizes profit margins in the attempt of grabbing marketing share. Besides that, vendors perceive this strategy as brand-destructive.  In this case, Marcy’s should offer coupons to the items of a customer’s choice rather than specific products. Marcy’s should also concentrate on sales promotion that are issued during seasonal sales events, for instance, Black Friday, that try to compete with Prime Day annual sale of Amazon. 

Marcy’s should widely know for its loyalty program. The company needs to take advantage of this program to increase its sales and achieve desired objectives. The company needs to consider scrapping special treatment of customers who have Marcy’s credit cards and offer promotions and coupons to loyal customers. 

Marcy’s was one the early company that adopted QR codes in its retail stores to offer dynamic, digital shopping experiences for all of its in-store consumers. The company IT department consistently keep on improving in-store operations and work with mobile apps to increase the efficiency of the company. The efforts of the department have not yet generated or accomplished the set goals. Online competitors such as Amazon pose a big threat. But the Marcy’s is a brand that caught attention of almost every retailer. Marcy’s is a big company that can manage experimentation of different strategies and technologies unlike many of its competitors. For those reasons, the company should take advantage of its able and knowledgeable IT department to come up with online shopping methods that enhance customer experience. Nowadays, a significant number of customers’ especially young people are shopping their items using mobile apps and online platforms. The IT department should focus on formulating strategies that reach out to these customers. 

In the process of success experiments in 2016, the Marcy’s stared shop-in-shop boutiques at it stores for brand like Brookstone, Best buy, and Apple. This was an expansion of long-time agreement with brand such as Sunglass Hut and Finish Line. Marcy’s should focus on expanding this line of business and turns some of its stores into shops that sell luxury products the same approach used by European retail stores. 

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Half of the sales of Kohl’s and J.C. Penney emanates from house brands while Marcy’s only generate 20% of its total sales from house brands. These products provide department stores high profit margins and offer consumers exclusive products. Besides that, these products will offer Marcy’s bargaining power over suppliers and manufacturers.   

In 2015, Kohl’s was the best performing department store. Marcy’s have faced increased competition from both online retailers such as Amazon and department-store chain. Besides that, multination corporations such as Wal-Mart pose are big threat to Marcy’s.  After 18 months of experimentation, Kohl’s launched its first loyalty customer retention program in 2015. It stopped providing special offers to customers who had store-credit cards. The program encourages members to visit the store frequently and buy more items. 

J.C. Penney and Kohl’s have started adding labels to their product including Izod and Puma to satisfy consumer demand for national products. In terms of sales growth, Kohl’s beauty items are outpacing apparel and like Marcy’s, Kohl’s has added famous brand like Lorac cosmetics and expanded space. Kohl’s has also started to renovate its beauty shops by adding new features. In 2015, Marcy’s agreed to buy Bluemercury, a beauty retailer. Kohl’s and J.C. Penney have also employed personalized marketing strategies like Marcy’s. Kohl’s has engaged technology companies like Oracle and IBM to have a better understanding concerning customers and apply real-time sensors to its customers behaviors. For the past three years, Kohl’s has spent approximately $1 billion on technology and its plan to spend the same amount in the next three years. 

In 2016, the company closed about 102 stores. In this case, the company will be required to initiate more drastic measures if it cannot turn around the current situation. Besides, the stores of Marcy’s are not strategically located; thus demanding more radically changes. Marcy’s needs to use these changes to stabilize its operations and creates its competitive edge. If the company can realize positive results from these changes, there are no doubts other brands will try to imitate.  

Key Messages

• “20% off of all products bought in our stores” 
• “Take advantage of 30% of all products purchased during Thanksgiving for the annual Macy’s day.” 
•  “Marcy’s offers promotions and coupons to loyal customers” 
•  “Coupons and promotions to all our esteemed customers.” 
• “Marcy’s offer affordable and quality products.”
• “Visit our stores for fashionable and luxurious products.”

Agency Brief

Mapping the Perceptual Landscape 

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Campaign Specifics