Marketing Strategy and SWOT Analysis of Macy’s
There are numerous company chains that you immediately know what they are in your mind. Examples of those are Marshall, Amazon, Macy’s, and others. Psychology states that when you bring numerous examples, you will probably concentrate on the last example. Hence, we are going to speak about Macy’s in this blog. The latter is an American well-known department store created in 1858. Initially built in 1902, its flagship store at Herald Square makes up for 1.25 million square feet of shopping lineup. Macy’s is among the US’s largest and oldest department store chains. This blog will focus on the marketing success of Macy’s.
Mission and Vision statement of Macy’s.
Mission statement.
“To be a retailer with the ability to see opportunity on the horizon and have a clear path for capitalizing on it. To do so, we are moving faster than ever, employing more technology and concentrating our resources on those elements most important to our core customers.”
According to this claim, Macy’s is undoubtedly a business driven to improve its operations, the products it offers clients, and the services it provides to progress department stores. The following characteristics of the mission statement include recognizing and taking advantage of chances, using technology, and enhancing communities.
Only the best and most aggressive companies succeed in the present markets. In the case of Macy’s, the business environment is constantly shifting, and the department store sector may be pretty unpredictable. To prevent being caught off guard, Macy’s has made it a habit to always search for unique business strategies, keeping it afloat and ahead of the competition.
By doing this, the business has been able to satisfy the wants of its clients at all times, which is why it is regarded as a trustworthy business in both the United States and abroad. As stated in the second aspect of its mission statement, Macy’s outperforms its rivals through technology. The industry appreciates innovation’s value in product development and service provision.
For instance, the business enables online shopping and real-time tracking of package shipments for its consumers. In addition to this, Macy’s makes it plain that its primary goal is to guarantee that every customer receives the most fantastic services regardless of where they shop or engage with the business. The company is known for more than just this, though.
Macy’s broadens its influence by acknowledging that it is a part of the communities where its clients are from. As a result, the business promotes itself while improving people’s lives. For instance, in its attempts to improve society, Macy’s has donated over $13,535,501.52 and volunteered for more than 39,799 hours in 2019 alone.
Macy’s broadens its influence by acknowledging that it is a part of the communities where its clients are from. As a result, the business promotes itself while improving people’s lives. For instance, in its attempts to improve society, Macy’s has donated over $13,535,501.52 and volunteered for more than 39,799 hours in 2019 alone.
Vision statement.
“To operate Macy’s and Bloomingdale’s as dynamic national brands while focusing on the customer offering in each store location.”
The positioning of the company’s brand is highlighted in the vision statement. The company’s main objective is to make Macy’s a destination where customers may find all they desire and more. This Macy’s vision statement includes the following significant components: vibrant national brands and putting the customer’s needs first.
Being dynamic is what Macy’s focuses on, which makes it the top department store in the United States and internationally. Due to its capacity to adjust to shifting market conditions while preserving its mission, Macy’s has endured numerous economic crises for more than a century.
As a result, Macy’s seizes every chance to build its brand and become the industry leader it is today. Its ability to meet the needs of its clients further supports its attainment of this top position.
For instance, the company’s inventiveness in providing the latest trends and best-in-class products is motivated by the dynamism reflected in its vision statement. Through delivering exemplary customer service, the business enhances the value of the client experience.
Now, we will analyze the archetype that Macy’s belongs to.
To do so, let us look at the Instagram post below.
This is a Valentine’s Day campaign, so understandably, it targets couples planning their holiday celebration. We see numerous items that the store offers but with a romantic theme. Those include beautiful studs, comfy slippers, and luxurious silk pillowcases.
The relationship aspect of the post already gives away a huge hint. It targets individuals that love being committed. The multiple elevating accessories are yet another hint that we receive. And lastly, we are being introduced to luxury items. That said, it is evident that the archetype Macy’s belongs to is Lover.
What do we know about it?
Desire: achieve familiarity and participate in desirable pleasure
Aim: being committed to the people, the experiences, the work, and the surroundings they enjoy
Strategy: become more physically and emotionally attractive.
These are the messaging levels of the archetype.
Level One: passion, temptation, falling in love (with an idea, a person, a product, work)
Level Two: seeking unforgettable romance in all its forms
Level Three: pursuing your bliss and engaging with what and whom you love
Level Four: self-acceptance, spiritual love, and the Experience of Ecstasy
The Lover archetype provides a good identity for brands:
- whose utilization enables people to gain admiration or companionship
- whose use produces beauty, touch, or communication between people or is associated with passion or romance
- with average to high pricing
- if it is suggested or marketed by a brand with an intimate, luxurious corporate culture
- that aims to differentiate itself entirely from lower-priced brands
SWOT analysis of Macy’s
Strengths
Vast variety: Customers can choose from a wide range of products at Macy’s. Therefore, visiting Macy’s will allow you to purchase furniture, household items, clothing, and toys for children in one location rather than visiting other stores.
With its large selection of merchandise, Macy’s has been able to grow its consumer base. Shopping at Macy’s is far more satisfying for customers than at any other retailer.
Consumer relationship management: Excellent relationship management and customer service are hallmarks of Macy’s. Their customer service representatives go above and beyond to ensure you are satisfied when you have an issue with your purchase.
Macy’s knows the importance of high standards for quality and customer service and makes every effort to give its clients the finest possible service. Because of this, Macy’s is regarded as one of the best retailing brands overall.
Marketing: With efficient marketing, competing in such a cutthroat industry is possible. Marketing is a crucial instrument for attracting clients.
Macy’s has the most incredible and distinctive marketing strategy worldwide. Like its rivals, it conducts a Thanksgiving Day Parade rather than spending millions of dollars on printed and digital advertising. This parade doubles as a Macy’s commercial stunt as much as a cultural celebration.
Popularity: Every brand aspires to be well-liked by the general public. Becoming a household name requires years of marketing and a solid reputation. But Macy’s has succeeded in making a brand for itself.
The business has been operating since 1858, and thanks to its diverse selection of goods, its outlets are well-liked by customers from all age groups. This gives Macy’s an edge over its rivals in the marketplace.
Utilization of technology: Macy’s is utilizing technology in the modern era for their gain. Using technology, Macy’s has grown its business. Additionally, the retailing company is boosting its revenues through Internet means.
By 2023, $10 billion in Macy’s sales will come from digital sources.
Weaknesses
Failed expansion projects: Loyal American ex-pats cheered in anticipation for the arrival of their favorite department store when the New York company revealed that it would continue its past US growth and open stores in the UAE.
However, a few years later, Macy’s abandoned their expansion plans without reason. With this decision, Macy’s has let down many foreign customers, and as a result, those customers may need more faith in Macy’s long-term dedication to its goals for worldwide expansion.
US market high dependence: Macy’s enjoys a dominant position and a sizable market share. However, because of its substantial reliance on the US market, the corporation is more susceptible to the adverse socioeconomic problems the nation is experiencing, such as rising unemployment, poverty, inflation, etc.
Despite Macy’s footprint in other countries, it pales compared to the US. Five hundred seventy out of the total 787 stores are located in the US.
Expansion: Expansion of business operations is the most frequently employed approach to boost revenue and market shares. For instance, Macy’s has long dominated the US market but has yet to expand as much as it could outside the country.
Macy’s squandered its opportunity to rule the global market. Instead, it might have significantly grown its market share by penetrating underserved markets worldwide.
Opportunities
Develop international presence: Macy’s has accomplished a lot in the US. In the US, it is already regarded as the market leader. Since business is booming in the US, this is the ideal time for Macy’s to expand globally by concentrating on other markets.
This will aid Macy’s in gaining more customers and market share. Additionally, it will assist Macy’s in expanding its appeal internationally.
Diversify: For many years, Macy’s marketed a variety of things, including clothing, accessories, and cosmetics for both men and women. But now that Macy’s has maintained a substantial market share, it can diversify its products.
In addition to providing standard items, Macy’s can now expand its business by delivering used clothing. It could also utilize its brand to enter the food and beverage sector. Macy’s revenue stream and consumer base will grow as a result.
Acquisitions and mergers: The time has come for Macy’s to combine with or buy one of its rivals. However, it can become oppressive when so many rival businesses are nearby. Therefore, Macy’s can use merger and acquisition techniques to drive out rivals from the market.
A competitor purchase might be what Macy’s needs to grow its business. Macy’s might continue to dominate the industry by earning additional market share.
Threats
Covid-19: Macy’s was one of the businesses that suffered significant losses during COVID-19. During COVID-19, one of the most impacted nations was the US. Due to its stringent lockdown procedures, Macy’s suffered a COVID-19 loss of over $1.1 billion.
Following the immunization procedure, there was a noticeable reduction in lockdowns, and things gradually returned to normal. However, the possibility of additional COVID-19 waves remains. There is a concern for Macy’s in relation to these future COVID-19 waves.
Competition: No matter how well a business does, it is constantly concerned about its rivals. Operating in a market where your rivals continually vie for market share can be frustrating. In the department store sector, there is ruthless competition.
Despite having a sizable market share, Macy’s must watch its rivals to maintain its position. Several retailing companies, including Nordstrom, TJ Maxx, and Kohl’s, are constantly vying with Macy’s for their market share.
The competitors of Macy’s pose a danger to the company. Macy’s must seek ways to establish a competitive edge to stay one step ahead of its rivals.
International recession: Businesses always suffer during recessions. What they do is deprive people of their riches and reduce their level of living. In addition, there is always uncertainty during recessions. People save more and spend less when there is uncertainty.
As everything returned to normal after COVID-19, a significant inflation rate was experienced globally. In addition, it is anticipated that the world may enter a recession shortly due to the ongoing conflict between Russia and Ukraine.
It is possible to view the prospect of a worldwide recession as a threat to Macy’s. Sales at Macy’s will decline significantly as a result of the recession’s impact on living standards, which might cause the retailer substantial financial issues.
Target segment of Macy’s
Let us watch this video for it.
This video targets stylish individuals out there. Whether you believe it or not, everybody I stylish with their unique offerings. This video introduces the different sorts of individuals with multiple styling options, from classy to formal, cute, sporty, etc.
There is one major hint in this ad, and the latter is the shopping convenience. The targeted segment likes to be efficient with their time and shopping choices.
Secondly, we see that even with over-the-top fashion choices, this ad solely seeks comfort, another quality of the segment. They enjoy being stylish and comfortable at the same time.
And from those points, it becomes apparent that the segment that Macy’s has chosen to target is Nesters.
Lifestyle and values:
Nesters prioritize spending time with their families—every action they take and milestone they reach is intended to bring happiness and relief to their families.
Setting family traditions is something this sector values. One of the things is the weekly gatherings where people can enjoy food and each other’s companionship.
They experience a sense of belonging as a result. Nesters genuinely like preparing meals for their loved ones, making the kitchen their preferred space.
This section exhibits a lovely traditional mindset. They appreciate adopting beliefs and customs. Nesters are charming and dependable.
That holds for associations and fellowships as much as for religion. Nesters view people realistically and demand sincere and honorable behavior from those around them.
This section might go along with the overall theme of life and making decisions.
For Nesters, comfort comes before intelligence is essential. That, therefore, applies to their sense of style. Nesters enjoy making detailed plans. They follow a schedule the majority of the time.
Their job typically falls within their comfort zone. For benefits relating to money, solidity is better. Because family is so essential to Nesters, they seek a partner who shares their outlook on life.
They should get along with their potential spouse’s family.
The ideal adage for Nesters is “Better safe than sorry.” This is why they typically use mechanical devices that have been “tried and true.”
That is a preferable option to trying something new and concluding that it was not worthwhile.
Attitude towards shopping:
Nesters typically purchase from affordable and domestic brands. They make every effort to look for discounts and rebates.
They tend to prioritize comfort over fashion, which is evident in the things they choose to buy. Nesters prefer to use their time productively.
They ensure that their shopping trips are planned because of this. They will ride their bike there if the store is nearby and close enough. This area is depleted by cars.
Even when shopping, nesters value including their families. For instance, lengthy trips to the local grocery shop are dull when done alone.
This section opts to visit establishments that sell inexpensive necessities. They can sell more products for a much better price, which explains why.
Trendy patterns are irrelevant to Nesters.
They follow the fashion that makes them feel at ease. Additionally, they have a preference for buying domestic brands.
Other interesting facts:
- Home is this segment’s most desired place because of their family and loved ones
- They love fixing things around their home and gardening
- Nesters love watching TV, specifically movies, with family members.
- This segment is physically active.
- They love being informed about the neighborhood buzz
- Adoree bike riding because it allows them to meet new people
- Consume magazines full of local issues
- Are not that literate with the internet
- Are above-average radio consumers.
And that concludes the blog about Macy’s that discussed its mission and vision statements, archetype, SWOT analysis, and targeted segment. Make sure to visit our main website for more informative and fun content.
