Introduction
In this term paper, I will recommend short-term, intermediate and long-term strategies that Macy’s should adopt to ensure increased sales as well as reduce the cost of operation.
Short-term
Short-term strategies are those plans that a business wants to achieve with a short cycle, usually within months or a year. Importantly, short-term strategies aim at generating profits for the company, but they should pave the way for achieving long-term goals (Paley, 2006).
I would recommend Macy’s to consider rebranding and diversifying its products as a short-term strategy. Rebranding is cheap and achievable within months while adding product variety is expensive, but it’s feasible within a year.
Rebranding
Macy’s should consider rebranding to meet the 21st century standards. According to Todor (2014), time and market trends usually erode a brand’s image, and rebranding is a sure way to recapture market share. However, the name “Macy” shouldn’t be dropped. The company can furnish its outlets around different states in the U.S. with latest features such as Wi-Fi, appealing display, elegant furniture and beautiful fitting rooms. Most shoppers love to visit stores that have attractive looks; thus, enhancing display will attract more customers. If the company installs Wi-Fi in its stores, it will offer value to its shopper. The rebranding will require combined efforts of the staff and management.
Diversifying products and adding varieties
Macy’s can concentrate on adding more product variety in its outlets as a marketing strategy. Stein (2014) insists that product diversification usually leads to success. Importantly, these new products should target women and children since they are the key consumers of lifestyle products. When targeting women, Macy’s should sign agreements with various beauty companies to ensure it diversifies its beauty product. The new beauty products should be able to satisfy the growing changes in taste and preferences of consumers. Regarding children, Macy’s should consider adding more high-end and expensive products to its outlets. Modern parents are ready to spend on their children provided they are purchasing quality products. That way, Macy’s will realize an increase in sales and profits.
Intermediate-term
Medium strategies are the plans that a business wants to achieve within two or five years. The medium goals act as a link between short and long-term plans.
I would recommend Macy's to launch outlets in open-air centers and start small specialist stores as an intermediate-term strategy. A specialist store is a cheap and conservative method while the open-air outlet is an expensive but aggressive plan.
Open-air centers
There are growing numbers of people who shop in open markets as opposed to malls. Also, open-air centers offer a business a chance to display its products in more appealing ways than some malls. According to Walker (2013), outdoor markets are becoming popular, and most people are no longer shopping in malls. If Macy’s launches stores in open centers, it has a chance of attracting these people and possibly making sales. However, the company should also keep the culture of operating outlets in malls where it targets high-end customers.
Small specialist outlets
As an intermediate plan, Macy’s should consider small stores instead of the large shops. The company will accrue many benefits if it chooses to operate small stores. First, small stores are cost-efficient since they occupy a small space; the company won’t pay high rents or build costly structures. Additionally, some products such as cosmetics appear appealing when displayed in small stores. Furthermore, specialist stores attract more customers as opposed to general outlets. Thus, this strategy will reduce operation cost and increase revenue.
Long-term strategies
Long-term strategies are those plans that a company wants to achieve with a period of five years or more. The marketing team should focus on developing assets that will ensure the company has continuous cash flow in long-term (Viewpoint, 2012).
I would suggest Macy’s to venture into the international market and develop its cosmetics as a long-term strategy.
Venturing in international markets
Macy’s can establish outlets to outside the United States as a way of boosting its reputation and revenue. The company can target markets such as China, Mexico, and the UK. In fact, Tuttle (2009) highlights Mexico as one of best opportunities for international businesses. Successful companies such as McDonald already have a presence in these countries. My suggestion is based on the fact that these three countries have a growing population of middle-class earners who love shopping. This population is mainly attracted by the beautiful display as I suggested in short-term goals. However, Macy’s will require investing more if it decides to venture into the international market.
Developing cosmetics
The demand for beauty products is growing, and the market is still not saturated. Product development is an excellent way to capture the existing market (Stein, 2014). Hence, Macy’s should adopt the suggestion of developing its range of cosmetics products as a long-term strategy. The company has a ready market in its stores around the U.S. so marketing won’t be a major challenge. These products should specifically target the middle class and young generation. Nevertheless, Macy’s has to invest significantly in this suggestion to ensure the products are high-end and unique.
Conclusion
I would recommend Macy’s considers rebranding and adding product variety to its outlets as short-term strategies. In intermediate plans, Macy’s can think of launching small specialist stores in open-air centers so as to meeting the changing consumer needs. The company can venture into the international market and develop its cosmetic products as long-term strategies. These marketing strategies will build the reputation of Macy’s and increase its revenue and profits.
References
Paley, N. (2006). The managers guide to competitive marketing strategies. United Kingdom: Thorogood.
Stein, N. (2014). Product development: the route to success. Horticulture Week, 37.
Todor, R. (2014). The importance of branding and rebranding for strategic marketing. Bulletin of the Transilvania University of Brasov. Series V: Economic Sciences, 7(2), 59-64.
Tuttle, G. M., & Hooper, P. (2009). Mexico: Opportunity for International Expansion. Franchising World, 41(9), 40-43.
Viewpoint: Patrick Barwise, London Business School. (2012). Marketing Week (Online Edition), 6.
Walker, K. L. (2013). A Retail Center Facing Change: Using Data to Determine Marketing Strategy. Marketing Education Review, 23(3), 287-296.
