Macy’s is an American chain of departmental stores that are owned by Macy’s Inc. Founded in 1858 in New York City, this firm has experienced massive growth, and currently, it owns over 850 stores in 793 locations within the United States of America (Pulizzi 56). The firm offers a wide range of products from clothing, footwear, bedding, accessories, jewelry, housewares, and beauty products. The first Macy’s departmental store to be established outside the United States was in Puerto Rico in the year 2000.
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This move was seen as an opportunity to explore the international market after dominating the American market for several years. According to Zarrella (112), Macy’s operates under various brands in the market based on the category of the products.
Operating under different private label lines has been very beneficial in meeting the needs of the clients in a unique manner. Firms always struggle to find a way of meeting the diversified needs of customers in the market. Macy has realized that the best way of addressing this problem is to offer a wide range of brands, each uniquely defining the needs of different clients.
One of the top featured brands at this firm is the Alfani (“The Magic of Macy’s” par. 1). This brand offers a wide range of men accessories, from shirts, pants, ties, sportswear, shoes, belts, sweaters, and suits. Based on the research done on this brand, it is clear that the management has done everything in its power to ensure that the products in this life meet the diversified needs of the customers.
However, a gap was detected in the line of belts that are offered under this product line. This gap should be exploited in order to increase the earnings from this private label brand. In this research paper, the focus is to create a new private brand label under Alfani that specializes in a new range of belts.
Creation of a Private Label Brand
According to Pulizzi (82), when faced with a variety of products, customers always go for the one that offers a unique benefit. Belts are common products that have been in existence for several years. They are available in almost every retail store that sells clothes. They can even be bought along the streets.
This means that for a firm to attract customers to its brand of belts, the product must offer unique value that others do not offer in the market. In this new private label brand, Macy’s will be introducing a product that offers additional value other than what a common belt would offer. This new brand will be called Functional Belts.
As their name suggests, functional belts will be offering more than just holding trousers in the right position. These belts will also serve different purposes based on the unique needs of the clients. According to Zarrella (90), in the current society, people prefer buying items that can serve more than one purpose so that they eliminate the need to buy some products.
This new line of belts will integrate various functions, making it easy for the wearer to address various duties with minimal effort. When creating this new brand, it is important to understand the customers in order to ensure that the product will meet their demographic and psychographic demands. The following are some of the different products that will be introduced under this new brand based on a number of marketing factors.
Automobile Belt Buckle
This unique mechanical belt is fitted with a small engine powered by the light from the sun. The entire system is tested and proven safe to wear. This belt adjusts itself automatically to ensure that there is no strain on the wearer even if there are changes that may happen in the belly. For example, when one has taken a heavy meal, and the stomach is bulging out, the belt will automatically adjust itself without the knowledge of the wearer. The same case will apply when one changes the position.
When one is seated, the belt adjusts itself, and when he stands, it tightens a little in an automated process. This product will be marketed based on the demographic and psychographic factors among the targeted customers. This product will be targeting the rich members of the society that wants a sense of class in the product they buy. Its high price and value make it unique and very appealing to the upper end of the market.
The target customers for this product are people who are struggling to regulate their weight. This is not just a mere belt. It is also a measure of the changes in one’s weight over time. Instead of using other means to determine the changes in the waist, the user can easily take the reading in a flash and at any moment. This way, one is able to know the progress he or she is making.
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The piano belt is another unique product that will be suitable for a music instructor. When wearing this belt, the instructor will not have to carry a piano around because he will have his piano at all times.
Booz belt is a unique belt that will be very relevant to the bar attendants, especially those that work in highly packed clubs. It eliminates the use of trays that can fall at any time, causing damage and sometimes-bodily harm. With this belt, the attendant can be assured that the Booz and glasses he or she is carrying are safe.
Unique Action Points Focused on Promoting the Brand
According to Moore (48), introducing a new brand in the market may be a very challenging task, especially when operating in a large market. The challenge can be even greater in cases where the brand offers a variety of products, as presented in this case.
In order to ensure that Functional Belts gain popularity among the target market, the marketing unit will need to engage in a number of activities that will not only inform the market about the product availability, but also the unique value they offer. The following are some of the actions that point out that the management will have to focus on when promoting the new brand.
Pricing of products is one of the most important activities that need proper knowledge of the target market and the cost of presenting the product to the market. According to Pulizzi (31), the pricing of a product is one of the best ways of positioning it in the market. In most of the cases, customers use the pricing strategy to determine the value of a product. The automobile belt will be priced higher because of a number of factors. It is costly to present the product to the market because of its unique components.
That is why its target market will be rich. The high price will help emphasize its value in the market. This target market is always sensitive when it comes to the value of what they buy. When they have doubts about the quality of a given product that is new in the market, they use the pricing strategy to determine the product’s quality.
When the price is lower than what they are paying for similar products, they will consider the quality of that product below. Moore (87) advises that when setting prices, care should be taken to ensure that the targeted customers find it realistic irrespective of their segment.
When introducing a new product into the market, marketing campaigns are very important in a number of ways. The campaigns will be informing the targeted customers about the existence of the product, its price, the stores where it can be found, and any other detail that will help customers when planning to purchase the product (Zarrella and Zarrella 78). Functional Belts will be marketed using both social and mass media platforms.
Facebook and Tweeter will be used to reach the customers in the regional markets, while mass media will be used to reach out to customers in the selected states. The promotional campaigns will be designed for each of the four new products that will be introduced at the stores of this firm. One of the products will be used to carry the brand name Functional Belts. Automobile Belt, being the most prestigious of the four new products, can be used for this purpose.
According to Pulizzi (73), one of the best ways of meeting the demands of customers in a unique way is by maintaining an efficient customer service unit. The way a customer is treated within the firm will determine the possibility of retaining him or her as a loyal client for the firm.
The management will have a team of customer service officers who will be specifically responsible for handling customers for this new brand. Given the wide geographic coverage that is targeted, it will be necessary to use virtual communication technologies to address the concerns of the customers. This means that customers will be able to make calls wherever they are and raise their concerns about the issue they want to be addressed.
These unique products may also be available at other stores within the same market. This means that the market will be very competitive. The management will have to find a way of managing this competition through value addition whenever a client makes a purchase from this store.
An effective customer care unit will help in enhancing the value generated from these products by creating an interactive communication system to help address all the concerns of the customers. Other services such as after-sale services and the use of coupons may also help in improving the competitiveness of the firm.
Alfani is one of the most popular brands at Macy’s in the current market. We are introducing a new sub-brand known as Functional Belts within this brand. This new brand will specifically focus on unique belts that offer additional functions than what is offered by conventional belts. This new line will help in improving the profitability of the firm if they are successful in the market.
Moore, Geoffrey. Crossing the Chasm: Marketing and Selling Disruptive Products to Mainstream Customers. New York: Collins Business Essentials, 2006. Print.
Pulizzi, Joe. Epic Content Marketing: How to Tell a Different Story, Break Through the Clutter, & Win More Customers by Marketing Less. London: McMillan, 2014. Print.
The Magic of Macy’s 2014. Web.
Zarrella, Dan, and Alison Zarrella. The Facebook Marketing Book. Beijing: O’Reilly, 2011. Print.
Zarrella, Dan. The Social Media Marketing Book. Beijing: O’Reilly, 2010. Print.