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Bloomingdale's grants customers with a preferred customer card a 5% discount for ... Visualize the location of Macy's, Bloomingdale's and Gimbel's main stores by ... – PowerPoint PPT presentation

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Title: conceptual%20designed%20by:dr.%20a.%20seiler;%20eth-z

Case Study
Macys Problem
The problem is to be found in New York City,
where the market shares have dropped 9 over the
last three years.
Your Mission
You are Macy's marketing specialist. Your
assignment is to assist the marketing manager of
New York, Kevin Smith, with a market - and
competition analysis.
Identifying Market Segments
Mr. Smith wants to know which of the following
options seems the most sensible to you.
  • Products apparel, house wares, jewelry
  • Geographical market segmentation downtown,
  • Types of customers businessmen, families,

Task 1.1
Finding Out Market Shares of Important Offerers
Mr. Smith has asked you to go through the
documents and pick out the information regarding
the present market shares for the most important
department stores of New York.
  • Macys
  • Abraham Straus
  • Gimbels
  • Bloomingdales
  • Others

Task 1.2
Establishing Market Size
Mr. Smith has asked you to define the size of the
department store market in New York as precisely
as possible. Information in the folder therefore
serve as a basis.
Task 1.3
Describing Customers
When describing customers, separate the
essential from the less relevant questions.
  • How many customers visit Macys in New York each
  • Which division of Macys has the most customers?
  • What income do Macys customers have?
  • How often do Macys customers shop at the
  • What market share equals one thousand customers?
  • How much price reduction should loyal customers
    be given?
  • How far away do Macys customers live from the
    location of the store?

Task 2.1a
After separating the essential questions, please
help Mr. Smith to answer them, by using the
information folder and making estimations.
  • Less than 5'000
  • Between 5'000 and 50'000
  • More than 50'000

customers visit Macy's each day.
The income of most customers is
  • high.
  • medium.
  • low.

The majority of Macy's clientele live
  • up to 5 km
  • between 5 and 20 km
  • more than 20 km

from the location of the store.
  • never
  • seldom
  • often

shop at the competition.
Macy's customers
Task 2.1b
Studying the Act of Purchase
Put together a rough profile for how purchases
are made at Macys.
  • Number of customers per day
  • Ration of purchases taken by the customer vs.
    delivered purchases
  • How many products that were bought were ordered
    in advance

Task 2.2
Analyzing the Purchase Decision
Put the following deciding factors in order of
High Priority
  • Deciding factors
  • delivery time
  • price
  • breadth of the assortment
  • quality
  • service
  • availability
  • payment methods

Medium Priority
Low Priority
Task 2.3
Capturing the Scope of Services
For capturing the scope of services, separate the
following questions into important and irrelevant
/ wrong questions.
  • What is the average time a customer waits in line
    at the register?
  • Is there a return or exchange policy?
  • Does Macys offer sufficient parking in the city
  • Is a contact person to help with problems or
    questions available to customers at all times
    (consultation, customer service, a service
  • What kind of guarantee from the manufacturer can
    the customer expect?

Task 4.1a
  • What kind of guarantee from the manufacturer can
    the customer expect?
  • Does Macys fashion department follow the newest
  • How do customers react to Macys Logo?
  • Does Macys offer customers an advantage for
  • Is it possible to deposit umbrellas at the
  • Are there options to eat at Macys?
  • Are there enough restrooms?

Task 4.1b
Pricing Policy
What is the predominant and also Macys current
pricing policy?
Pricing policy with orientation according to
  • cost
  • demand
  • competition
  • use

Task 4.2a
Determining Pricing Conditions
Following is a list of campaigns for discounts,
various payment conditions and other measures of
pricing differentiation as undertaken by Macys
According to which of the following criteria do
they differentiate their prices?
Pricing differentiation according to
  • region
  • marketing instruments
  • type of customer
  • line of a product
  • times

To stimulate the holiday business Gimbels has
a sale in December.
Task 4.2b1
Bloomingdales grants customers with a
preferred customer card a 5 discount for the
entire assortment. Customers at Alexanders
profit from a 2 discount if the payment is made
in cash. For purchases of more than 500
customers receive a 10 voucher at Arnold
Constable. The in-store prices at Abraham
Straus are slightly higher in the city than in
the suburbs. B. Altmans gives customers a 20
discount on their entire jeans selection. There
is a flat fee of 15 for home delivery of all
purchases made at Alexanders.
Task 4.2b2
Identifying Means of Communication
Which of the following questions are important to
identify Macys means of communication and which
  • What is the ratio of orders to offers?
  • What part of the turnover can be put down to
    visits from sales representatives?
  • Which means of communication does Macys use?
  • How many consumers watch Macys
  • What is the communication between management and
    personnel like?
  • What is the significance of the individual means
    of communication?
  • Does Macys also sell musical instruments?
  • In what type of media does Macys advertisement
  • What does the ratio of cost to use of the
    individual means of communication look like?

Task 4.3
Deriving of Critical Factors for Success
According to priority (1st and 2nd), assign the
critical factors for success to the following
three segments. Hurry up, Mr. Smith is waiting!
1st Priority
2nd Priority
Individuals with a high income (more than
50'000 per year)
Individuals with a low income (less than 50000
per year)
  • quality
  • service
  • breadth of the assortment
  • price

Task 5
Determining Decisive Competitors
Mr. Smith wants to know which competitors are
especially threatening, and which are not?
Decisive Competitors
  • Gimbels
  • Lord Taylor
  • Bloomingdales
  • B. Altmans
  • J.C. Penney
  • Ohrbachs
  • Alexanders
  • Arnold Constable
  • Abraham Straus

Task 6.1
Visualizing Main Store Locations
Visualize the location of Macys, Bloomingdales
and Gimbels main stores by drawing them in the
street map of Manhattan attached to the folder.
Task 6.2
Task 6.2b
Analyzing Strengths Weaknesses
formal Product Price Quality Appearance Product
extended Product Advice Sale on exchange Payment
conditions Queue time at the register
Consumer needs Bloomingdales Abraham Straus
Macys Gimbels Alexanders
Task 6.3a
Try to fill in the gap text with help of the
preceding strengths / weaknesses-profiles
  • has the best price level.
  • Macys meets customers expectations the least in
    the area of .
  • Regarding service (extended product) is ahead by
    a nose.
  • Only the at Abraham
    Straus ranked higher than at Gimbles.
  • In general Macys covers the needs of the
    customers .

Task 6.3b
Estimating Future Behavior
With the aid of your information - folder and the
findings you have obtained so far, try to make an
estimate of the important competitors future
Gimbels, Bloomingdales, Abraham Straus or
... will cut back a great number of jobs. ...
wants to maintain price level and the market
share, if possible. ... will attempt to keep
prices below the price level of the
competition. ... will launch innovative
products. ... wants to become leader of the
market. ... withdraws from the market. ... will
invest more in research and development. ...
orientates itself newly to the market.
Task 6.4
Mission accomplished
New York, New York
Start spreading the news, I'm leaving today I
want to be a part of it - New York, New York
These vagabond shoes, are longing to stray
Right through the very heart of it - New York,
New York I want to wake up in a city, that
doesn't sleep And find I'm king of the hill -
top of the heap These little town blues, are
melting away I'm gonna make a brand new start of
it - in old New York If I can make it there,
I'll make it anywhere It's up to you - New York,
New York
Task 7a
New York, New York I want to wake up in a city,
that never sleeps To find I'm a number one, head
of the list, Cream of the crop at the top of the
heap. These little town blues, are melting away
I'm gonna make a brand new start of it - in old
New York If I can make it there, I'm gonna make
it anywhere It's up to you - New York, New York
Task 7b