Macy’s Inc. Advertising Plan Report

University of Delaware

Macy’s Inc. Advertising Plan Report

Restoring Macy’s Retail and Advertisement Strategy

Isabella Aswad

BUAD 471

Professor Kent

December 6, 2016

Executive Summary

This report examines why Macy’s Inc. has been falling behind compared with rival companies, and to evaluate how the company can change their advertising strategy to increase sales.

The proposal draws attention to the fact that Macy’s, a historically old department store, has had countless competition. However, in the last few years the emergence of online, off-price, and fast-fashion retailers have made it difficult for the department store to stand out.

With the new focus on a larger age demographic, which would include millennials and teenagers, they will be able to focus on updating sectors of their merchandise to reflect the younger clientele, and to attract new customers.

They will change their advertising strategy to include the younger audience, as well as continue to attract and retain their original customers. Aside from spending a larger segment of the advertising budget on digital media and on launching the updated phone app, they will focus on creating more modern, sleek, and influential print and televised advertisements.

By updating these specific areas of the brand, they will create more of an impact in the retail industry and be able to effectively regain their status at the go-to department store.

Background

Macy’s Inc. is a common household name to nearly every person in the United States. A nationwide department store with over 870 operating stores, they have established themselves as one of the few premier variety retail outlets in the country. As many know, Macy’s has a rich history and several “firsts” since its opening in Manhattan in 1856. Per macysinc.com, they were the first retailer to promote a woman to an executive position, making business history. Macy’s pioneered such revolutionary business practices as the one-price system, in which the same item was sold to every customer at one price, and quoting specific prices for goods in newspaper advertising. They are also known for their creative merchandising. Macy’s was the first