Macy’s Private Label Case Study Essay

There atomic number 18 several hole-and-corner(a) labels and several nonsymbiotic grease labels within Macys lots amongst each other as a clever marketing technique. However what pass on attract customers to Macys is not the high priced carrys but rather their mysterious label brands that often closely mock the established brand style but for a much cheaper price point. People shopping at Macys are seeking a deal otherwise they could shop at Nordstroms for a pair of 150-dollar jeans so people often come for the private labels.Macys private labels are very clever because of their strategic placing which leads me to cite that the private labels are much than lucrative to the company than the major brands are. head start with major brand DKNY which Macys sells their mission statement is, The mission of the Donna Karan Company, as a design driven company, is to represent the international pulse of rising York in the design, marketing and delivery of a complete lifestyle agr eement to a global customer.DKNY is all about marketing to the bare-ass York style consumer who keeps up with East Coast styles and likewise runs on the more expensive side with a dress averaging or so 200 dollars and jeans around 150 dollars. Although the brand is very trendy and made with quality materials adept would expect at that price, it simply isnt really the Macys ass market. Macys consumer expects to shop for deals on the cheaper end as opposed to personnel casualty to a competitor on the pricey side such as Nordstrom or Bloomingdales.However Macys is very strategic in the placing of this brand because its generally right next to their private label INC and that proves pain because psyche who loves a 300-dollar dress from DKNY nooky walk everywhere a few feet to INC and find one very standardized for much, much less. INC is also urban inspired young contemporary wear however at a much cheaper price point than the clothing at DKNY. The median(a) price for a dres s from the INC department at Macys cost from 70-100 dollars.Macys is very strategic in merchandising and generally will place INC directly next to brands such as DKNY so that when someone falls in love with that 300 dollar cocktail dress they can ask an associate for something similar and walk a few feet over to the INC department and get the uniform look for about 200 dollars less. This is quick because Macys typical consumer is on the lower end of the financial spectrum and they hit the sack people want expensive looks for less money.They use the name brands as bait and lure shoppers in to ultimately buy something from a similar private label, which consumers love because they feel like they are getting a expectant deal. The INC marketing strategy is very clever and brings in more money than their brand name labels. Overall, INC has the better marketing strategy between the two labels because although people value quality they will take a great deal even if it means sacrificin g a bit of quality. The clothing is just as trendy and its what ultimately brings in Macys target market consumers because they are generally shopping for a great deal.This strategy of using brand names as bait has been the rudimentary reason for their success because their goal of maintaining reasonable price points for their customers is prevalent through their private label brands. Its similar to if you are at the food product store and want a box of Lucky Charms for 4 dollars and then next to it is the same cereal but the stores private label brand such as Kirkland for only 2 dollars. Itll gustatory modality just a little bit different but not enough to dictate the difference off the bat.INC clearly isnt the same quality of material as a 300-dollar DKNY dress however at a glance no one can really tell if its DKNY or INC it just looks good and this is what matters to consumers at the end of the day. Macys should implement more private label brands because these are what mak e the gross sales for them. INC wins over DKNY because someone shopping at Macys is statistically proved due to finances to be more likely to buy a less expensive private label brand than the pricey brand name item.