MAR 4232 (Current Issues in Retail Marketing) presentation made to Macy*s on Search and Send with the Cosmetics department. Spring 2012

1. WELCOME!

2.  Michael Perez
 Alexa Naranjo
 Alejandra Guardia
 Yessenia Hernandez
 Anesys Mena
 Tish Durham Cosmetics
 Priscilla Martinez Search &


Andrea Albanez
Oscar Roger
Send
 Omar Hernandez

3. Introduction

4. Search and Send
Macy*s at Dadeland Mall:
One of the oldest
and most iconic in
Miami
Third most revenue
generating Macy*s
store in the nation
-Distribution
Center = Large
Inventory

5. Search
and
Send

6. Search and Send
Two Driving Questions
 How can we use “Search and
Send” as a sales driving force
with regards to Cosmetic
replenishment?
 How can sales associates
efficiently check MyClient for
replenishment needs?

7. Research

8. Search and Send
Employee Interviews
Consumer Surveys
- Focus on females
Secret Shopping

9. Employee
Analysis

10. Search and Send
 Paper interviews with 9 open-
ended questions
 Asked about:
- Time of employment
- Cosmetic line
- “Search and Send”
- Training
- Employee emphasis
- Incentives

11. Search and Send
 Most employees were familiar with “Search and
Send”, but typically do not mention it to customers
unless the item they seek is unavailable.
 Problem: The item is usually always available.
Therefore, “Search and Send” is not being
promoted.
 Employees believe incentives such as Macy*s
money will encourage them to bring it up more.

12. Search and Send

13. Search and Send

14. Search and Send

15. Search and Send

16. Survey
Analysis

17. Search and Send
 325 females surveyed in
3 week time frame
 Asked questions about:
- “Search and Send”
- Customer Behavior
- Customer Preferences
- Customer Demographics

18. Search and Send
 Search and Send:
- Majority of people have
never heard of it (88%)

19. Search and Send
 Customer Behavior:
- 35% of customers spend between
$15-$30 on cosmetics
- Most popular items: mascara, lipstick,
and eyeliner
- 57% of consumers do not return to same
sales associate
- Mascara is replenished the most
- (114 responses saying within 3 months)
- Skin treatment is the least often purchased

20. Search and Send
 Consumer Preferences:
- Majority of consumers
feel “neutral” about
cosmetics being
shipped to them
- Majority feel “neutral”
about sales associates
contacting them
about replenishment

21. Search and Send
 68% prefer MAC as
their cosmetic brand
 Majority
of consumers purchase cosmetics
at Macy*s ;biggest competition:
convenience stores

22. Search and Send
Consumer:
- Majority 18-27 age range
- Make less than $30,000 a year
- Hispanic
- Interests: music, fashion, school and arts

23. Secret
Shopping

24. Search and Send
 1st Secret Shopping
Experience:
Omar Hernandez –
Dadeland Mall
- Looking for MAC
eyeliner: in stock
- Lack of attention
- Asked questions
- Associate did not offer
the service

25. Search and Send
 2nd Secret Shopping
Experience: Andrea Albanez &
Yessenia Hernandez -
International Mall
- Looking for Clinique foundation
– Product amount was not
available
- Specifically asked about a type
of shipping service
- “Search and Send” was
mentioned, but the associate
offered another product instead
of insisting on “Search and Send”

26. Search and Send
 Through this experiment and the
results we gathered from the
consumer surveys, we were able
to determine that Macy*s
cosmetics associates need to be
encouraged to increase the
awareness of “Search and
Send” and make it a priority in
the sale.

27. SWOT
Analysis

28. Search and Send
Strong brand
awareness/Loyal Great variety
customers
Strengths
Advanced Decent price
technology range

29. Search and Send
Low incentives for Training is not
associates sufficient
Weaknesses
MyClient is not yet
Lack of in-store
efficiently
promotion
integrated

30. Search and Send
Heavy flow of Increase in market growth
• Generation Y is open to
in-store traffic change and different
retail services
Opportunities
Tourism is Consumers not
opposed to idea of
increasing “Search and Send”

31. Search and Send
Low control
over cosmetic MAC is most
vendors popular brand
decisions
Threats
Not as Competitors can
competitive in adopt a similar
price recession service

32. Suggestions:
Target Market
&
Marketing

33. Search and Send
 Focus on targeting:
- 18-27 age group
(females)
- Through
Music, fashion, arts, school
- Make under $30,000
- Tech savvy/convenience
- Cross-channel shoppers

34. Search and Send
Marketing
- Social Media
- Slogan: “Store to door”
- Signs around the store
- Register displays
- Pins: “Ask me how to save 10% off”
- First time users can recieve10% off
purchase (or one product)

35. Before Afte

36. Before
After

37. Before After

38. Search and Send

39. Suggestions:
Associates

40. Search and Send
 Training and workshops
 Associates did not feel comfortable
nor motivated to mention “Search
and Send”
 Implementation requires :
- Intensive workshops for current
employees
- “Search and Send” training
program for incoming employees

41. Search and Send
 Workshops and Training
- Interactive role plays between
associates and managers
• Acting out different scenarios in which
“Search and Send” could be mentioned
• Providing associates with various phrases
for promoting “Search and Send” in
person and over the phone
• Teach associates how to use MyClient for
replenishment needs and for the
promotion of other items

42. Search and Send
Would take place before
store hours
Workshops should be held
once a month for four months
for employer
emphasis, customer service
quality, and employee
comfort

43. Search and Send
 Incentive/Reward Programs
- Weekly draw from “Search and
Send” sales as either a raffle or
based on most sales
•Prize/Bonus (Macy*s money)
•Parties (Ex: weekly pot luck)
•Coupon books
•Elite employee Recognition

44. Search and Send

45. Search and Send

46. Suggestions:
MyClient/Cust
omer
Replenishment

47. Search and Send
 Upon initial purchase, ask if they
would like to be contacted and fill out
a profile sheet (additive selling tool)
- Skin tone and type
- Brand preference
- Skin concerns

48. Search and Send
 Example of
Customer
Profile Sheet

49. Search and Send
Associates should send out reminders
to their customers when their
products are due for replenishment.
Associatesshould also contact
customers about new products.
Along with replenishment provide
small free samples.

50. Search and Send
Reduce minimum cost for free
shipping of “Search and Send”
- Instead of $50, lower it to $40
Offerdifferent shipping options
such as expedited (i.e.: tourists)

51. Search and Send
 Popular items such as
mascara should be
included in “Search and
Send”
 Popular seasonal items
such as lipstick should also
be considered
 The lack of these seasonal
items being included in
“Search and Send” is
hindering its success

52. Cost
Analysis

53. Search and Send
Product Quantity *Cost
Banners, register displays, Determined on size
$2,500
and other signage in-store of store
Pins for Employees 200 ($1.80 ea.) $360
Estimated TOTAL: $2,860
* = Cost is based on campaign
implementation at Macy*s Dadeland

54. Conclusions

55. Search and Send
 Research showed “Search and Send” has a huge
opportunity for the Macy*s Cosmetics department
 New marketing/displays will target customers to approach
associates regarding “Search and Send” in a cost effective
manner
 Associates with more training and incentives will increase
their willingness to promote “Search and Send”
 Macy*s will continue to make everything as easy &
comfortable to the customer by offering the best in making
things, “Store to Door”

56. THANK
YOU!