targeting the millennial customer
DESCRIPTION
Marketing strategy presented by my summer internship team for one of Macy's private brands - American Rag - with the objective of targeting & attracting the millennial customer to Macy's.TRANSCRIPT
![Page 1: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/1.jpg)
Joins the Movement
Chad FosterIndiana Baltodano Jamie Berlin
Eliza Weiss Kevin Jaedon Tran
Dana Bezozo
![Page 2: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/2.jpg)
Who is the American Rag Girl?
![Page 3: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/3.jpg)
Casual
![Page 4: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/4.jpg)
Dreamer
![Page 5: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/5.jpg)
Fashionable
![Page 6: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/6.jpg)
FreeSpirited
![Page 7: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/7.jpg)
Fun
![Page 8: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/8.jpg)
Flirty
![Page 9: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/9.jpg)
Youthful
![Page 10: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/10.jpg)
American RagShe is…
![Page 11: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/11.jpg)
“We think that she is in the know and looks for hot new trends, they just may be a little tamer than some other brands. She is, overall, our
sexy ‘good girl’” – Sean Orr, Product Manager American Rag Shoes
American Rag Target Market
Age range: 15-25
Mill
enni
al
Competition
*
![Page 12: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/12.jpg)
18-19 Years0%
20-31 Years16%
32-41 Years17%
42-51 Years27%
52-61 Years19%
62+ Years11%
Unknown10%
18-19 Years
20-31 Years
32-41 Years
42-51 Years
52-61 Years
62+ Years
Unknown
Total American Rag customer base: 1.9 M
Source: Purchase History 6/20/2010 – 6/18/2011, Macys Marketing Department
American Rag Customers by Age
![Page 13: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/13.jpg)
Spend by Age Group
Total Spend: $82,612,223
Source: Purchase History 6/20/2010 – 6/18/2011, Macys Marketing Department
![Page 14: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/14.jpg)
Millennials Care About Issues
![Page 15: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/15.jpg)
Millennials & Causes
of undergrads believe that it is important to
influence social values, which is the
highest the value has been since 1993.
will trust a company more if it
is socially & environmentally
responsible.
8 out of 10 42.5%consider a
company's social & environmental
commitment when deciding where to shop
69%
Source: Generation Y gets involved; USA TODAY
![Page 16: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/16.jpg)
American Rag Joins the Movement:
Fashion and Philanthropy
![Page 17: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/17.jpg)
The Tote Bag Launch
• Join the Journey to Brazil Campaign
• Include Millennials • Capitalize on Current
Trend
![Page 18: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/18.jpg)
Human Services and Health
Public SocietyBenefit, Environment
& Animals
Education,Arts, Culture and
Humanities
The Next Step…
![Page 19: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/19.jpg)
“Vote for the Tote” Competition
![Page 20: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/20.jpg)
Have posteda video of
themselves online
1 out of 5have a profile on a social networking
site
75%Social networking for Millennials has grown 70% since
2005
Source: Social Media & Mobile Internet Use Among Teens and Young Adults, Pew Research
Millennials & Social Media
![Page 21: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/21.jpg)
Vote for the Tote!
Facebook Users Submit DesignsFor Charities.
The facebook community votes and comments on design finalists picked by Macys.
Winning designsis made and sold atAmerican Rag.1 2 3
![Page 22: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/22.jpg)
Facebook Users Submit DesignsFor Charities.
The facebook community votes and comments on design finalists picked by Macys.
Winning designsis made and sold atAmerican Rag.1 2 3
Vote for the Tote!
![Page 23: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/23.jpg)
Facebook Users Submit DesignsFor Charities.
The facebook community votes and comments on design finalists picked by Macys.
Winning designsis made and sold atAmerican Rag.1 2 3
Vote for the Tote!
![Page 24: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/24.jpg)
Case Study: Macy’s Million Dollar Makeover
Online Image
![Page 25: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/25.jpg)
Production and Pricing Strategy
![Page 26: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/26.jpg)
2 Weeks
Source: American Rag Handbags Department
Product Development
3 Months
Department: American Rag HandbagsVendor: Sunrise
Production & Transport Delivery to Store
![Page 27: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/27.jpg)
Source: American Rag Handbags Department
Pricing Strategy
Revenue (Final Market Price) $20.00 $200,000.00
Landing Cost (Vendor/SPA/Etc) $6.92 $69,000
Donation to Charity $2.00 $20,000
Total Costs of Goods Sold $8.92 $89,200
Profit Margin $11.08 $110,800
Mark Up Percentage 55.4%
![Page 28: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/28.jpg)
After 8 weeks 25%-30%
Source: American Rag Handbags Department
Exit Strategy
![Page 29: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/29.jpg)
Source: American Rag Handbags Department
After 12 weeks 50%
Exit Strategy
![Page 31: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/31.jpg)
Promotion and Marketing
![Page 32: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/32.jpg)
Strategy: Pandora Takeover
•100 million listeners•Targeted advertisement •Not just a pop-ad – can create a brand experience
Cost $50,000/month ~7.1 million impressions
Source: Macys Marketing Department
Marketing & Advertising Venues
![Page 33: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/33.jpg)
Cost $25,000/month~4.1 Million
Strategy: Facebook Targeted Advertisement
•Inform millennials about “Vote for the Tote” and increase participation
Source: Macys Marketing Department
Marketing & Advertising Venues
![Page 34: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/34.jpg)
Cost $30,000 Strategy: Online campaign
•Capitalize on American Rag’s partnership with Seventeen Magazine
Source: Macys Marketing Department
Marketing & Advertising Venues
![Page 35: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/35.jpg)
Give to relevant celebritiesMagazines/Print Media
Product Placement
![Page 36: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/36.jpg)
Users can upload outfits incorporating their
American rag bags onto facebook/mStyleLab
mStylelab & Facebook
![Page 37: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/37.jpg)
HangtagStore Display
Instore Merchandising
![Page 38: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/38.jpg)
Additional Merchandise
Discount With Tote
College Discount
Such as…
Further Expansion
![Page 39: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/39.jpg)
– Create awareness – Improve brand equity– Expand customer base– Create a Macy’s exclusive “it” item– Tie American Rag brand to a “hot,”
millennial-driven social trend
Our Initiative Will…
![Page 40: Targeting the Millennial Customer](https://reader036.vdocument.in/reader036/viewer/2022062513/554cbeb7b4c905aa608b54b0/html5/thumbnails/40.jpg)
Join The
Movement