Macy\'s Department Store, or the Macy\'s National

Macy's department store, or the Macy's national brand has survived many decades of economic turmoil while becoming a popular and fully recognizable brand that has stood the test of time throughout the 20th and into 21st century. The purpose of this essay is to examine Macy's corporate strategy, specifically its marketing strategy, in order to gain understanding into how a successful national brand, in the form department store, can realize success throughout a very extended period of time. I will examine Macy's corporate vision and financial objectives that are described within the contents of their website. I will then examine how Macy's marketing strategy and tactics are used in the form of target markets, product, price our promotion and distribution.

Referring to their website at Macy's, their brand includes nearly 800 stores in furniture galleries in 45 states. Prior to June 1, 2007 Macy's Inc. was known as Federated Department Stores Inc. The company's shares are traded under the symbol "M" on the New York Stock Exchange. According to Macy's calculations, "in 2010 operating income rose by 78% and the return on invested capital, a key measure of financial productivity, rose significantly in 2010 from 2009. Among the strategies driving growth are my Macy's localizations, an increase in distinctive and exclusive merchandise, magic selling training, a new approach to customer engagement, on the channel integration and focus on the upscale customer at Bloomingdale's."

Malhotra (2009) reported this change was to come some years ago. According to this report the leadership strategy was aware that "the economic problems in today's market in this environment consumers are more selective and are seeking bargains to get customers in the door, knowledge of consumer taste trends and price consciousness has become the mainstay of the retail sector." This new marketing strategy has seemed to pay off according to recent calculations.

Moore (2011) seems to disagree and feels that Macy's has limited potential for growth. In his analysis he stated that Macy's intangible assets ratio of nearly 21% should be taken with caution. Financial figures are often hard to interpret and sometimes not very useful to understanding what the real market is trying to say. Globalization threatens Macy's competitive advantage due to the cheapness of manufacturing goods overseas. The global economy in general has threatened all retail outlets, but Macy's is a specific threat as well. Terrorism and high gas prices seem to scare customers and force them into saving their money as opposed to spending it.

Macy's is also facing greater amounts of competition. Many stores that make their business online can under price items due to the lack of capital required to maintain such a business. Macy's cost-of labor seems to hold them back in being competitive on the global market. Supply sources being threatened due to global events always will cause disruption with in any economic market. Macy's should be well aware and monitor situations in order to predict outcomes that may affect their business.

Macy's however has much opportunity for growth. In their recent localization tactic, Macy's has introduced a way to keep stores from maintaining their personal appeal. Understanding the regional fashions and tastes are indeed regional will no doubt serve Macy's in the long run in keeping repeat customers from returning to buy more products. The Macy's brand has lasted throughout many years of test and trial. The demonstration of survival should be exploited for all it's worth. The opportunity to capitalize on such a notion will no doubt help in a marketing strategy and attract more business.

The idea of luxury may be a thing of the past for America, and is important for Macy's to become more practical and austere in their undertakings for attracting new customers. This new reflection of the product should reflect current social trends and keep up with global events as well. It is important to maintain a profitable business even during tough times that may lie ahead for many retail outlets.