Macy’s Private Label Case Study Essay

There ar several clannish labels and several indep send awayent scrape labels in spite of appearance Macys often amongst each other as a clever merchandiseing technique. However what pull up stakes attract customers to Macys is not the high priced brands but rather their mystical label brands that often closely mock the established brand appearance but for a much cheaper price tip. People shop 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 say that the private labels are more than lucrative to the company than the major brands are. Starting with major brand DKNY which Macys sells their mission statement is, The mission of the Donna Karan Company, as a role driven company, is to represent the international pulse of New York in the design, marketing and delivery of a dismay along lifesty le 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 fix up averaging around 200 dollars and jeans around 150 dollars. Although the brand is very trendy and made with quality materials wholeness would expect at that price, it simply isnt really the Macys target market. Macys consumer expects to shop for deals on the cheaper end as opposed to going to a competitor on the pricey side such(prenominal) as Nordstrom or Bloomingdales.However Macys is very strategic in the placing of this brand because its broadly right neighboring to their private label INC and that proves smart because someone who loves a 300-dollar pasture from DKNY can laissez passer oer 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. The average price for a d ress from the INC department at Macys be 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 same look for about 200 dollars less. This is smart because Macys typical consumer is on the lower end of the financial spectrum and they know 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 kindred they are getting a great 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 prise quality they will take a great deal even if it means sacrificing a subrou tine 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 central 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 grocery store and want a recession of Lucky Charms for 4 dollars then next to it is the same cereal but the stores private label brand such as Kirkland for only 2 dollars. Itll taste just a picayune bit different but not enough to tell the difference off the bat.INC clearly isnt the same quality of material as a 300-dollar DKNY dress however at a inspect 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 make the sales for them. INC wins over DKNY because someone shopping at Macys is statistically proven due to finances to be more likely to buy a less expensive private label brand than the pricey brand name item.