targeting the millennial customer
DESCRIPTION
Marketing strategy presented by my summer internship team for one of Macy's private brands - American Rag - with the objective of targeting & attracting the millennial customer to Macy's.TRANSCRIPT
Joins the Movement
Chad FosterIndiana Baltodano Jamie Berlin
Eliza Weiss Kevin Jaedon Tran
Dana Bezozo
Who is the American Rag Girl?
Casual
Dreamer
Fashionable
FreeSpirited
Fun
Flirty
Youthful
American RagShe is…
“We think that she is in the know and looks for hot new trends, they just may be a little tamer than some other brands. She is, overall, our
sexy ‘good girl’” – Sean Orr, Product Manager American Rag Shoes
American Rag Target Market
Age range: 15-25
Mill
enni
al
Competition
*
18-19 Years0%
20-31 Years16%
32-41 Years17%
42-51 Years27%
52-61 Years19%
62+ Years11%
Unknown10%
18-19 Years
20-31 Years
32-41 Years
42-51 Years
52-61 Years
62+ Years
Unknown
Total American Rag customer base: 1.9 M
Source: Purchase History 6/20/2010 – 6/18/2011, Macys Marketing Department
American Rag Customers by Age
Spend by Age Group
Total Spend: $82,612,223
Source: Purchase History 6/20/2010 – 6/18/2011, Macys Marketing Department
Millennials Care About Issues
Millennials & Causes
of undergrads believe that it is important to
influence social values, which is the
highest the value has been since 1993.
will trust a company more if it
is socially & environmentally
responsible.
8 out of 10 42.5%consider a
company's social & environmental
commitment when deciding where to shop
69%
Source: Generation Y gets involved; USA TODAY
American Rag Joins the Movement:
Fashion and Philanthropy
The Tote Bag Launch
• Join the Journey to Brazil Campaign
• Include Millennials • Capitalize on Current
Trend
Human Services and Health
Public SocietyBenefit, Environment
& Animals
Education,Arts, Culture and
Humanities
The Next Step…
“Vote for the Tote” Competition
Have posteda video of
themselves online
1 out of 5have a profile on a social networking
site
75%Social networking for Millennials has grown 70% since
2005
Source: Social Media & Mobile Internet Use Among Teens and Young Adults, Pew Research
Millennials & Social Media
Vote for the Tote!
Facebook Users Submit DesignsFor Charities.
The facebook community votes and comments on design finalists picked by Macys.
Winning designsis made and sold atAmerican Rag.1 2 3
Facebook Users Submit DesignsFor Charities.
The facebook community votes and comments on design finalists picked by Macys.
Winning designsis made and sold atAmerican Rag.1 2 3
Vote for the Tote!
Facebook Users Submit DesignsFor Charities.
The facebook community votes and comments on design finalists picked by Macys.
Winning designsis made and sold atAmerican Rag.1 2 3
Vote for the Tote!
Case Study: Macy’s Million Dollar Makeover
Online Image
Production and Pricing Strategy
2 Weeks
Source: American Rag Handbags Department
Product Development
3 Months
Department: American Rag HandbagsVendor: Sunrise
Production & Transport Delivery to Store
Source: American Rag Handbags Department
Pricing Strategy
Revenue (Final Market Price) $20.00 $200,000.00
Landing Cost (Vendor/SPA/Etc) $6.92 $69,000
Donation to Charity $2.00 $20,000
Total Costs of Goods Sold $8.92 $89,200
Profit Margin $11.08 $110,800
Mark Up Percentage 55.4%
After 8 weeks 25%-30%
Source: American Rag Handbags Department
Exit Strategy
Source: American Rag Handbags Department
After 12 weeks 50%
Exit Strategy
Promotion and Marketing
Strategy: Pandora Takeover
•100 million listeners•Targeted advertisement •Not just a pop-ad – can create a brand experience
Cost $50,000/month ~7.1 million impressions
Source: Macys Marketing Department
Marketing & Advertising Venues
Cost $25,000/month~4.1 Million
Strategy: Facebook Targeted Advertisement
•Inform millennials about “Vote for the Tote” and increase participation
Source: Macys Marketing Department
Marketing & Advertising Venues
Cost $30,000 Strategy: Online campaign
•Capitalize on American Rag’s partnership with Seventeen Magazine
Source: Macys Marketing Department
Marketing & Advertising Venues
Give to relevant celebritiesMagazines/Print Media
Product Placement
Users can upload outfits incorporating their
American rag bags onto facebook/mStyleLab
mStylelab & Facebook
HangtagStore Display
Instore Merchandising
Additional Merchandise
Discount With Tote
College Discount
Such as…
Further Expansion
– Create awareness – Improve brand equity– Expand customer base– Create a Macy’s exclusive “it” item– Tie American Rag brand to a “hot,”
millennial-driven social trend
Our Initiative Will…
Join The
Movement