Macy's Private Label Case Study

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Topics: Marketing, Brand, Price
Anastacia Stobbe
Merchandising Strategies
Tuesdays 12:00
10 December 2012
MACY’S PRIVATE LABELS CASE STUDY
There are several private labels and several independent brand labels within Macy’s often amongst each other as a clever marketing technique. However what will attract customers to Macy’s is not the high priced brands but rather their private label brands that often closely mock the established brand style but for a much cheaper price point. People shopping at Macy’s are seeking a deal; otherwise they could shop at Nordstrom’s for a pair of 150-dollar jeans so people often come for the private labels. Macy’s private labels are very clever because of their strategic placing which leads me to say that the private labels are more lucrative to the company than the major brands are.
Starting with major brand DKNY which Macy’s sells their mission statement is, “The mission of the Donna Karan Company, as a design driven company, is to represent the international pulse of New York in the design, marketing and delivery of a complete lifestyle system to a global customer”. DKNY is all about marketing to the New York style consumer who keeps up with East Coast styles and also runs on the more expensive side with a dress averaging around 200 dollars and jeans around 150 dollars. Although the brand is very trendy and made with quality materials one would expect at that price, it simply isn’t really the Macy’s target market. Macy’s consumer expects to shop for deals on the cheaper end as opposed to going to a competitor on the pricey side such as Nordstrom or Bloomingdales. However Macy’s is very strategic in the placing of this brand because it’s generally right next to their private label INC and that proves smart because someone who loves a 300-dollar dress from DKNY can walk over a few feet to INC and find one very similar for much, much less. INC is also urban inspired young contemporary clothing however at a much cheaper price point than the clothing at DKNY.

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