macy*s presentation
DESCRIPTION
MAR 4232 (Current Issues in Retail Marketing) presentation made to Macy*s on Search and Send with the Cosmetics department. Spring 2012TRANSCRIPT
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!