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FLORIDA INTERNATIONAL UNIVERSITY
GROUP MEMBERS
Rebecca M Alvarez
Vianeth Araya
Claudia Calvo
Jennifer Cepeda
Landy Fenelus
Kristina Jurdi
Mayling Luna
Marcos Nunez
Laura Pelini
Daniela Rodriguez
Professor: Tim Birrittella
MAR 4232 – Current Issues in Retail Marketing
Spring Semester
April 23, 2014
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INTRODUCTION
The purpose of this research is to analyze
the advantages of implementing a strategy
specific to the multicultural millennial Men’s
Department customer. Within this project,
you will find that we have created four
recommendations that can be used to
maximize revenue and increase traffic within
the Macy’s stories- especially for Hispanics
and African Americans. These
recommendations include: “Happy Hour”
events, Display changes, a new Sports
Section and a “My Motto” weekly contest.
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The Men’s Department is a complete station with head-to-toe looks
of the most fashionable clothing out in the market today for men.
Consisting of dress shirts, pants, jeans, casual shirts and sweaters,
the men’s department (according to Macy’s Sales Data) has a
combined revenue of 23% of all Macy’s sales in 2013 alone.
The Men’s Department Industry has a variety of retail outlets; some
including: Armani Exchange, Express, Guess, J.Crew, Men’s
Warehouse and JC Penny.
In Macy’s, the Men’s Department has endless brands, some
including:
Alfani
Calvin Klein
Levi’s
Nautica
Polo Ralph Lauren
Sean John
The North face
Tommy Hilfiger
The Men’s Department
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Some of Macy’s biggest competitors in Dadeland Mall are
JCPenney, Men’s Warehouse, and J.Crew. Out of these three
major department stores, the only competitor focusing solely on
attracting a multicultural audience is JCPenney.
JCPenney has done advertisements in catalogs and has aired
major commercials on one the biggest Spanish-language
television network: Univision. JCPenney also has an exclusive
retail sponsorship with Premio lo Nuestro a la Musica Latina.
Premio lo Nuestro is the longest-running and most popular
award show in the U.S, and it is mostly watched by Hispanics.
JCPenney has also shown an interest in the Hispanic market by
translating their “Every Day Counts” add to "Cada Dia Cuenta”
on The Academy Awards- this reached 89 % of all women ages
18 to 54. JCPenney created this 30-second ad exclusively for
their Hispanic customer, hoping to increase their Hispanic
consumers within their stores.
The Men’s Department
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The Men’s Department
Some smaller competitors such as Abercrombie & Fitch,
Aéropostale, Cotton On, Banana Republic, Hollister Co, Lucky
Brand, True Religion and Urban Outfitters are also located in
Dadeland Mall. None of these retail stores are focused on
attracting a wider audience. What these retail stores have to
offer is: price, quality, and uniqueness.
Although some of these stores seem to have the same style,
they are all unique within the industry. In the majority of
these stores, their advertisements include good looking teens
wearing each brand’s clothing. People purchase each item in
hopes of one day looking and feeling like the people on their
advertisements.
Express for example, offers frequent shopper exclusive
coupons, J. CREW Outfitters benefits from Michelle Obama’s
amazing representation. Men's Warehouse and Tux offers
Wardrobe and Formalwear Consultants. If Macy’s
implemented some of these ideas it would have a huge
competitive advantage.
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Our Multicultural Millennial target are Hispanics ad African
Americans., they’re buying has significantly grown in the past years.
Our goal is to determine their needs and wants and to ultimately
deliver their desired satisfaction more effectively and efficiently than
our competitors.
Macy’s is launching 13 new brands and expanding 10 other existing
labels which they believe will resonate with shoppers in the 13 to 30
age group. The roster includes an exclusive Marilyn Monroe fashion
collection and a men's T-shirt line from an upstart called Fatal
Clothing, which specializes in tattoo-influenced designs.
The chain also will be offering a collection of runway-inspired
fashions that will change monthly
The new fashion offerings, which are being rolled out this fall and
next spring, represent the first phase of the retailer's intensive
campaign to attract the highly sought-after group. The current
millennial generation is the first to grow up with cell phones and the
Internet; its members are accustomed to receiving fast access to
anything they wish.
Macy’s is trying to capture the millennia’s attention by not only
having these 13 new brands, but also by taking over the social media
platform.
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In order to get more knowledge about Multicultural Millennial’s trends and attitudes, we
conducted a survey among 365 people (target group: 13 to 30 year old). The main purpose was to
gather information about what they would like to see implemented in order to improve their
shopping experience at the Men’s department and to evaluate what are the most important
aspects when purchasing clothes.
After gathering and analyzing the data, we concluded the following:
1. 60% of all participants asked, shopped for themselves.
2. When asking about what is their preferred Social Media platform, 43% of our Hispanic sample
stated that Instagram is their favorite social media to use. Out of our African American sample, 46%
of them prefer Instagram and 46% Facebook, we can say both social media platforms show the
same popularity.
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3. We wanted to see how much money Multicultural Millennial's spend when shopping at the
Men’s department. We can see that our Hispanic sample spends different amounts of money when
they shop: 29% are spending between $26 and $50 each time, 25% spend between $51 and $70
and 24% spend between $71 and $100. We also found that they are most likely to shop monthly
(47%) and yearly (43%).
As a conclusion, the Hispanic market is not willing to spend a lot of money at Men’s Department.
The African Americans showed different trends, 32% of them are only willing to spend from $1 to
$25 each time and 32% stated that they spend between $71 and 100$. Because our sample
showed completely different amounts of spends, we are developing two different promotions to
reach each of these groups.
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4. Conclusions from our sample showed that Hispanics are most likely to buy shirts
(24%), shoes (20%) and bottoms (17%).
African Americans are also most likely to buy shoes (20%), shirts (18%) and bottoms
(15%).
We can conclude that both Hispanic and African American Millennial's are not really
interested in accessories, active wear or swim wear; what they buy are the basic
elements of the outfit. This shows that their style is mostly casual.
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5. Hispanics Millennial's consider Quality the most important aspect when buying clothes
(57%) followed by Price (33%).
African Americans Millennial's showed a similar trend, 54% of our sample consider Quality
the most important aspect followed by Price (38%).
Surprisingly, our sample considers Quality as a more important aspect than Price. So even
though we need to focus on promotions, Macy’s should communicate always the quality of
the brands they are carrying.
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6. In order to create an accurate campaign, we thought
that knowing what influences Multicultural Millennial's
style was important. From our sample, we can conclude
that the majority of Hispanics (49%) seek Comfort,
followed by a 22% who are influenced by Celebrities.
African Americans Millennial's majority is also most
influenced by Comfort (38%), however, it is followed by a
31% of them who stated that friends/family influenced
their style the most.
Due to this, our strategy is trying to show how the
Millennial's like to include comfort in their fashion style
and Macy’s is going to provide it to them. We also decided
to use celebrities to communicate this way of life that is
behind “MY MOTTO”.
7. We also wanted to know what incentives lead
Multicultural Millennial's to shop at their preferred men's
department. Out of our sample we concluded that
Hispanics are lead mostly by Pricing
(Promotions/Discounts/Gift Cards) (42%) and Variety
(Brand Portfolio) (31%).
African Americans showed a similar trend. 34% considered
Pricing (Promotions/ Discounts/ Gift Cards) and 28%
Variety (Brand Portfolio).
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8. One of the main objectives from our research study was to know what Multicultural
Millennial's want to see implemented in order to increase their shopping experience at
the Men’s department. 38% of Hispanics would like to see more Promotions and 30%
would prefer Customization.
36% of African Americans would like to see Customization and 23% of them,
Promotions.
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9. Most of our Hispanic sample prefers Nike and Polo Ralph Lauren (17% each), followed by
Calvin Klein (15%) and Levi’s (11%).
Our African American sample show a very similar trend again, Nike and Calvin Klein are the
preferred brand (15% each), followed by Levi’s and Polo Ralph Lauren (13% each).
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STRENGTHS
• Strong Portfolio of different brands
• Agreements with artist and celebrities
• Special events, honoring traditions and
lifestyle of multicultural millennials
• Strong promotions toward different
multicultural market depending
on budget
• In store promotion strategically placed
WEAKNESSES
• Many competitors offering same
quality products
• Upper style store, high prices
• Men are less likely to buy so often
OPPORTUNITIES
• Many new opportunities when it
comes to technology
• Introduction of new innovative
marketing campaign focus mainly on
millennial market
• Could be an opportunity to develop to
other multicultural target markets
( Asian, Caucasian, Caribbean, ect.)
• Attract new customers and reinforce
loyalty ones
THREATS
• Many new opportunities when it
comes to technology
• Introduction of new innovative
marketing campaign focus mainly on
millennial market
• Could be an opportunity to develop to
other multicultural target markets
( Asian, Caucasian, Caribbean, ect.)
• Attract new customers and reinforce
loyalty ones
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HAPPY HOUR
Based on our survey findings, Multicultural Millennial's demand an increase in promotions, which will augment
traffic to the store. Moreover, the results from our survey indicate that: both the Hispanic and African Americans
Samples spend between $1-25 each time they shop. Also, that the multicultural millennial main concerns when
shopping are price and promotion.
In order to cater to what the multicultural millennials want, and also increase revenue, we propose a weekly
happy hour. The happy hour would consist 20 % all the brands that the multicultural millennials appeal to (both
African Americans, and Hispanics). For example: Nike, Ralph Lauren, Calvin Klein and Levi’s, and also Macy’s
brands that are aimed for millennia's such as: Buffalo, and American Rag.
To promote the happy hour, we will launch a Facebook page for the happy hour. In order to see the details of the
happy hour, you have to like the page. You cannot see the details unless you like the page, and you can invite
your friends to like it as well. Customers will have to follow the page for weekly updates and posts. In case of
extra promotions, people will have to keep up with it to find out.
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DISPLAYS
Another way to increase multicultural millennial traffic in Macy’s is by increasing and re-arranging their displays in the
store. For example: if a young, Hispanic man were to enter the men’s department at the Dadeland store, he would
probably not feel very welcomed, due to the fact that the actual entrance for the department is not very multicultural
millennial friendly. Ways they could increase this is by putting signs that promote the brands that appeal to them the
most (Nike for African Americans and Polo Ralph Lauren for Hispanics). Also, the display pictures on the windows can be
young, African American or Hispanic men. In the aisle on the middle of the store, they can display mannequins with the
latest trends for the multicultural millennials.
Displaying jerseys, or team shirts of different sports team to get their attention, and having signs telling them to go to
the men’s department to find all of the collection. If they increase signs and displays that appeal to the multicultural
millennial male, then it will increase traffic and revenue.
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SPORTS SECTION
After observations at several Macy’s store, we concluded that a
sports section is needed to attract multicultural millennials.
Hispanic millennials are very into soccer, and African American
millennials are very into basketball. In general, millennials are
into sports, and knowing that they can come into the store and
find all their favorite players and teams jerseys, will definitely
attract them to the men’s department. We would like to
implement a section, that every main sport will have a section
for teams, for example: Football, Basketball, Baseball, Soccer,
and Hockey. The items for purchase would include: shirts,
jerseys, basketball shorts, socks, wristbands, headbands, and
other accessories. Mostly shirts, jerseys and shorts, because
based on our results we found that millennials shop for those
items the most. Depending on which sport season it is, the
store will have the largest variety of merchandise. Currently, it
is basketball season and the World Cup is approaching. This
appeal to both of the largest multicultural millennials:
Hispanics, and African Americans. So there would be a large
section for each with various merchandise of the Miami Heat
and different soccer teams from around the world.
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MY MOTTO
The basic concept of My Motto is to show how your lifestyle influences your
personal style. It’s important to show who you are, where you are from, and
your culture. All these factors affect who you are and how you dress.
Especially in multicultural millennials who are trying to discover who they are
and what they like. We want to strengthen their bond with Macy’s by
showing them that the store will provide them with what they need to
represent who they are.
Based on this idea, we are going to launch social media contests, through
Instagram. Our results found that Instagram is the number one social media
used by millennials. So firstly, we will create an Instagram page for My Motto.
On the page there will be weekly contests open up to all multicultural
millennials- they will have to post a picture on their Instagram page that
shows who they are and their style influenced by Macy’s. They will use the
hash tags: #MyMotto. If they win, they will be featured on the My Motto
Instagram page for the week. Each week the My Motto page will try to
feature a person from a different ethnic background, and age in the
millennials age range. For Black History Month and Hispanic Heritage Month,
my motto will make their contest specific to those multicultural millennials
which are the largest both in the country, and in Miami. They will use the
hash tags: #MyMotto and #HHM (Hispanic Heritage Month) and #BHM (Black
History Month) appropriately, and the winners of the contest will win $25 gift
cards each to spend at Macy’s. This will promote Macy’s to the multicultural
millennials, and show them that Macy’s accepts them and welcomes their
heritages, and increase sales for Macy’s as well.