Overview of the Company
Macy retailer is a fashion company based in the United States and offers products such as clothes, shoes, accessories, cookingware, and colognes to its customers. Currently, the company is under the ownership of Macy’s Multinational Corporation that owns the parent division and Bloomingdale’s. Some of the current brands that the company offers include Alfani that satisfies the needs of working individuals, including women, who love designs that they can wear after work to late in the evening.
Another label line is the American Rag, which targets the individuals in a society such as young men, who like authentic and comfortable products. Beligue is a stainless product line designed to improve cooking experience because it facilitates high quality cooking. The company operates in over 793 locations in the United States and has about 300 stores used in product distribution.
In this view, expedition boots a new product that the study plans to introduce into the company and expand current shoe line that deals with trendy shoes. Therefore, it is against this background that the study assesses the viability of a new private label, expedition boots, with a view of expanding Macys’ label line and increasing its revenues.
Expedition Boots
To enable the company to expand its variety of shoes, the study aims to introduce a new line of boots, specifically designed for expeditions. The boots will focus on the segment of consumers, who love tourism products such as expeditions, and thus, the design will invite considerations from this segment of consumers. According to Varadarajan, before embarking on the mission of developing the product, the company has to execute an intensive customer survey using channels like focus groups, opinion leaders, and consumer correspondence (126).
Through the channels, the company will be able to design boots that meet the expectations of the potential clients. According to Blythe, market research is very important in the achievement of customer expectations and improvement of company growth (28). Fundamentally, effective design and implementation of success strategies help the company to increase the sales volume of the boots and boost its revenues. Promotion, effective pricing, and marketing will be instrumental in increasing customer awareness and persuading them to purchase the products from the company.
Action Points
Pricing
The label brand of boots that the company already has developed is very practical and matches client needs and desires. The ability of already existing shoes to match client expectation implies that the new products cannot underscore the importance of quality in its design. Significantly, pricing is one of the action points that the company can use in perfecting the products and distributing them effectively to the target consumers. The effective use of pricing strategy leads to successful growth of an organization, as it facilitates increased sales in the company (Boone and Kurtz 12).
Modern consumers require quality products with fair prices, and thus, companies should design products that meet these attributes of cunsumers. Essentailly, consumers weigh the products against the monetary value attached to them and make judgments based on the perceived product quality. Therefore, product pricing can only materialize after a scrutiny of the purchasing power and buying behaviors of the target clients.
The boots that the study intends to use in expanding the company label line, which is already in existence, and increasing its revenues must pass the perceived quality test of customers. During the design of the shoe, the company has to consider the cost of production and its influence on the price and purchases of potential clients, who consume tourism products. The price allocated to the boots needs to be within the range of competitors in the market and within the purchasing power of consumers.
Kotler explains that pricing of products beyond the purchasing power of consumers scare them away and make them purchase alternative products (26). As a result, the design of boots will be undertaken when the company has a clear understanding of the purchasing power and buying habits of its target customers. Evidently, pricing is an important action point that can transform the new products in the label line into an income-earning venture for the company.
Marketing
It is vital to understand that the purchase of a new product may not be effective if the company does not promote it properly. Since the boots comprise a new label line of the company, several potential consumers in the field may not be aware of their existence. Therefore, the clients can be reluctant to purchase and use the products. Conversely, proper marketing of the products, which focus on informing and persuading the target clients to purchase the products, will amplify the sales volume of the boots tremendously.
A tremendous increase in the sales volume of the boots materializes when marketing incorporates conveyance of correct information to the clients without delivery of wrong information about the products. Varadarajan asserts that marketing must be strategic in the sense that it should increase awareness among potential clients, while persuading them to purchase the products (122). Hence, marketing is an effective action point, which the study wants the company to employ in the introduction of the expedition boots, as a new label line.
Media such as television, radio, newspaper, and billboard are very crucial in informing the target clients on the new products that the company intends to roll out. Evidently, the media will facilitate the passage of information to the potential consumers, and thus, increase their level of awareness on the products and its qualities. As a result, several potential consumers of tourism products will be eager to purchase the expedition boots from the company. According to Withey and Lancaster, correct placement of the billboards and the use of the right communication media are essential in increasing customer awareness of new products (67).
Remarkably, the use of misleading and wrong information to increase sales volume leads to short lived profits and success in the company. Consequently, due to the wrong information about the products, customers lose trust in the company and purchase products from competing firms. Therefore, it is crucial to ensure that the information that the media conveys to the target clients is correct in all aspects.
Customer Satisfaction
In every organization, customer satisfaction is a primary objective in which all the stakeholders strive to achieve. When the products that a company offers match the pre-consumptive perceptions of the customers, they become satisfied, and thus, appreciate the products from the company (Varadarajan 125). In essence, satisfied clients usually recommend the products to others in the society and market the company through the word of mouth.
Therefore, for successful design and sale of the expedition boots, customer demands, likes, and preferences are crucial as their pre-consumption, consumption, and post-consumption experiences lead to satisfaction. According to Blythe, customer satisfaction is one of the factors that organizations strive to achieve in the daily activities (97). Since expedition boots target the new customer segment, a good understanding of the behavior and character of the individuals is vital so that the products match their demands and requirements.
The use of channels like customer focus groups, opinion leaders, and direct correspondence is very important in pulling out ideas and details from consumers concerning their levels of satisfaction. In addition, the channels help the company to identify areas of weaknesses and address them effectively. The use of questionnaires and interviews to inquire about the expected products and their properties from the customers is vital as its helps the company to understand the type of expedition boots that meets tastes and preferences of customers. Boone and Kurtz point out that when an organization understands the likes, preferences, and demands of its customer segments, they can match their products with client desires and in turn increase the level of customer satisfaction (35). Through the production of expedition boots that meet client requirements, the company will not only increase its label line, but will also boost its revenue.
Conclusion
Macy’s is a fashion design company that deals with the sale of products like clothes, colognes, sunglasses, accessories, and shoes. Its target consumers usually comprise of the young, the middle aged, and the old individuals in the society.
The company has always offered products that satisfy its clients in terms of quality and utility for their money. The expedition boots are products intended to help the firm increase its customer base, expand its label line, and boost its revenues. The products target the tourists and individuals, who love expeditions and tourism products associated with adventure. Notably, the use of action points like pricing, marketing, and customer satisfaction is instrumental in effective introduction and sale of the expedition boots in the company.
Works Cited
Blythe, Jim. Consumer behavior. New York: SAGE Publisher, 2013. Print.
Boone, Louis, and David Kurtz. Contemporary Marketing 2009 Update. New York: Cengage Learning, 2009. Print.
Kotler, Philip. Principles of marketing. New York: Prentice Hall, 2001. Print.
Varadarajan, Rajan. Strategic marketing and marketing strategy: Domain, definition, fundamental issues, and foundational premises. Journal of the Academy of Marketing Science 38.1 (2010):119-140. Print.
Withey, Frank, and Geoff Lancaster. CIM Course Book Marketing Fundamentals. New York: Routledge, 2013. Print.