Final Macys Research Proposal

J428 | Public Relations Planning & Research

Nicholas Janicki, Madeleine Weil, Kelsey OConnor, Hengying Cui
12/09/2013

Final Macys Research Proposal

Table of Contents
p. 3. Executive Summary
pp. 4-5. Research Problem in Context
pp. 6-8. Situation Analysis
p. 9. Stakeholder Analysis
pp. 10-13. Research Design and Recommendations of Methods
p. 14. Discussion
pp. 15-16. References
pp. 17-19. Appendix

Final Macys Research Proposal

Executive Summary
Macys, Inc. is a mid-to-upscale department store in America with over 800 stores
throughout the nation. While Macys has a wide variety of products available to
consumers at reasonable prices, there is a common belief that the stores and products are
meant for older women (30 years old and above) and therefore the image of the store
does not appeal to the millennial generation.
We found the key stakeholders of the company to be public and private
(celebrities, for example) vendors, customers who shop at Macys, the news media, and
Macys employees, to name only the most important stakeholders. Furthermore, we
attributed the wide variety of products, inexpensive products (in comparison to other
department stores such as Nordstrom), Internet presence, nation-wide store presence, and
private labels to be strengths of the company. Alternatively, the company also has a fair
amount of weaknesses. The companys decline in overall value is primarily a result of
cash flow problems due to reduced sales, many traditional media sources only
mentioning Macys in a negative way, severe decline in the companys stock price that
crosses below the critical moving average, and Macys growth rate being very slow are
all important weaknesses to note. Also, another weakness could be the negative remarks
on social media.
Looking more at potential opportunities and threats of the company, Macys can
redesign parts of their stores, which could benefit the company and even eventually be
done to stores nationwide. Also, social media is always an opportunity for any company;
social media is becoming more prominent throughout society and there are a lot of
opportunities within social media platforms such as Twitter, Facebook, and Instagram.
Lastly, Macys has recently hired a lot of college representatives, which could ultimately
be very beneficial to the future of the company and millennial involvement. On a
different note, Macys primary threats are its competitors (cheaper department stores,
department stores with more variety, etc.).
After having done extensive research our objective became clear: discover how
Macys can reach the millennial generation and ultimately influence them to become
more involved in the store, making them a more valuable demographic to the company.
In addition to using secondary research and carefully observing the stores competitors,
we relied heavily on primary research to assist us in reaching our measurable objective.
We conducted an internet survey because the millennial generation has a strong presence
on the internet. This drove us to create simple questions which would allow us to get
feedback about the company, department stores in general, and customer shopping
interests/influences from the millennial generation. We also designed a focus group (with
a layout) which would provide different, more conversational feedback from the
millennial generation.
Eventually we would like to put our survey and focus group into action,
ultimately leaving us to analyze the data to find areas that Macys needs to improve on in
order to better reach the millennial generation. This primary research along with our
secondary research would provide Macys with crucial information regarding how to
reach and influence the millennial generation to shop at their stores, thus benefiting the
company socially and economically.

Final Macys Research Proposal

Research Problem in Context
a. Macys, Inc. is a prominent retail company in the United States. They have a
wide variety of products, but our research led us to notice that they are not reaching every
audience to their full potential. More specifically, they are not reaching the millennial
generation nor do they have a positive image in the eyes of that generation.
b. After doing extensive initial research on Macys, Inc., it became clear that the
company had an issue with its image, most importantly the problem that the millennial
generation is not as involved in the Macys as it could be (Current Annual Report / Fact
Book - Macys, Inc., 2013). The millennial generation is often a difficult demographic
to reach today, and it is a group that Macys as a whole could benefit from if they
managed to draw them more into their store. This led us to ask, more specifically, why
this lack of involvement existed and what the company could do to improve in that area.
c. The objectives of our research became clear, the more time we invested
monitoring news media, viewing past studies, and analyzing the companys entire
situation. Our objective ended up being to measure what draws the millennial generation
to stores and what does not, and what else Macys can do to reach this generation. There
are many more specifics that apply to the objectives of our research, but the overall goal
is to find a foundation and basic idea that Macys can build off of to begin to attract the
millennial generation. Breaking the objective down into a more detailed perspective, we
formulated survey questions that related to the general shopping experience and then
included questions regarding exclusively Macys. Finding out this information is crucial
in order for us to learn more about our target audience; the millennial generation often
has a problem with expensive items, for example, so finding out how important price is to

Final Macys Research Proposal

them is one example of how we can prioritize the problems with reaching that generation
("Sterne Agee Lowers Price Target on Macy's, 2013). We are confident that our tactics
will allow us to obtain results that are extremely measureable and that can be organized
into data that clearly displays the approach that Macys should take in order to reach the
millennial generation.
d. This study should provide solid information and groundwork that Macys can
use to eventually reach the millennial generation. Once that occurs, Macys will begin to
progress in several aspects that will benefit the entire company. First, they will benefit
socially; the millennial generation is an audience that has a large voice in the world now.
Through Twitter, Facebook, and other social media networks they have established a
dominating voice that often influences the opinions of others. If Macys can reach this
generation they can also benefit from the social influences that the generation has. More
specifically, though, if the company can influence millennials to shop more at their store
(or online), Macys will benefit financially. Right now, the millennial generation is
somewhat of an untapped resource for the company in that there are a lot of potential
customers in their audience that simply do not currently see a reason to shop at Macys.
In short, putting this research problem in context has allowed us to see that there
is a definite benefit of reaching the millennial generation by finding out what their
shopping habits are like in general and their view of Macys.

Final Macys Research Proposal

Situational Analysis
a. Macys is a mid-to-upscale department store that has been present since 1858
and originally founded in New York City, New York. This department store is owned by
Macys, Inc., which also owns the department store Bloomingdales. Macys corporate
headquarters is in Cincinnati, Ohio, and outside of their corporate employment they have
approximately 850 locations throughout the nation. Additionally, as of 2013 they totaled
their number of employees at 175,700. The store has an online division, private brands,
merchandising groups, as well as a marketing division that all play a key role (in addition
to its store employees) in the success of the store (Current Annual Report/Fact Book,
2013).
b. In relation to public perception and their reputation, Macys has several
important strengths that should be mentioned.
i. Macys is a department store. That quality alone makes the store attractive
to a wide variety of costumers as they carry a lot of products. On a similar
note, the products they carry are also, in some cases, private labels. These
items cannot be sold in other stores, which certainly serves as a benefit to
carrying those labels.
ii. The store carries inexpensive as well as higher-end products. This draws
customers to the store who may be looking to purchase high-end products
and also those who are looking to spend a little less.
iii. Macys online presence is also a strength. The company has a website that
allows companies to shop online, a website that discusses corporate

Final Macys Research Proposal

information, and a strong presence in social media networks (i.e.,
Facebook, Twitter, and Instagram).
iv. They have a strong national presence (850 stores nationwide). They have
far more stores available to customers throughout the country than many
other retail stores (Nordstrom, Inc. has 117 stores and 141 Nordstrom Rack
stores (About Us: Nordstrom, 2013)).
c. Alternatively, Macys also has several weaknesses that should be noted.
i. The company has had a large decline in overall value. They are facing cash
flow problems in a result of reduced sales. In addition to this, their stock
price has declined to the point where it went below the critical average.
ii. Negative publicity, especially by the news media, puts the company in a
negative light and may discourage customers to shop at the store.
iii. Although the company has a strong online presence, social media could be
a weakness of theirs as well. The company receives around 30% negative
tweets from users online, which not only is out for the public to see but
also reflects the companys lack of responding to complaints online.
d. Macys also has a lot of external factors that stem from its external relations
and forces that are often beyond the control of the company.
i. Other retail stores (such as Nordstrom, J.C. Penney, Kohls, Neiman
Marcus, Saks Fifth Avenue, etc.) always pose a threat to Macys. There are
competitive prices, similar products being sold, and also overall reputations
of the stores that play a role in competing with Macys. There was recently
a legal issue between J.C. Penney and Macys regarding Martha Stewart

Final Macys Research Proposal

partnership that was clearly displayed competition between the two stores
(OToole, 2013).
ii. Discount stores also are an external threat to Macys in that they are
incredibly inexpensive and offer items other than clothing as well.
iii. Due to the economic crisis and other factors, Americans have been cutting
back on spending. Customers are obviously vital to the company in order to
succeed.
iv. Macys is always working on opportunities to improve their stores, such as
the recent total redesign of the beauty department in the New York flagship
stores (Shropshire, 2013). These internal improvements are always good
opportunities for the company to grow and improve.
v. Social media has endless opportunities for the company. Macys can
interact with customers/potential customers, create contests or promotional
material, and continue to adapt to the different trends and social networks
that become present in society.

Final Macys Research Proposal

Stakeholder Analysis
Macys key stakeholders come from several different groups that are committed
to Macys and its success. First, Macys has public and private vendors, such as
celebrities that have their own clothing lines like Jessica Simpson, that only sell their
brand through Macys stores. This would make the vendors a key public. Another key
stakeholder would be shareholders who have stocks in Macys. Obviously customers who
shop at Macys are key stakeholders as well, as the customers are who control the
revenue of the store. Macys most prominent consumers are women, according to the
Mintel Report (Mintel, 2013). Lastly, the news media would be a key stakeholder
because they represent Macys in the public eye, and therefore Macys must maintain a
positive relationship with the news media.
Looking at customers more closely, according to the Mintel Report on department
store trends, older women tend to be more price sensitive and less engaged. Also, women
are more like to wait for sales than men. As Macys goal is to target the millennial
generation (Mintel, 2013), it is important to look at the spending habits of multiple
demographics. According to millennial spending trends, Millennials have aligned with
the conventional wisdom that members of this generation are constantly connectedvia
mobile devices and the internetand will be most receptive to retail and service
opportunities grounded in technology (Grabowski, 2012). As a result, Macys should be
working towards increasing their social media interactions with millennials and keeping
up to date on trends, as millennials are a vital stakeholder. As for women and men,
Macys should continue to market their frequent sale discounts to attract that population
of stakeholders.

Final Macys Research Proposal

10

Research Design & Recommendations of Methods
a. In order to meet our research objectives, we decided to use the survey and focus
group methods to conduct our research. We selected an Internet survey as our means of
distribution to the sample. For the qualitative research method, we decided that a focus
group would be the best approach to achieve our research objectives.
b. We selected an Internet survey because of the key public we are attempting to
reach. We believe this would best reach the demographic of the key public, the millennial
generation. This demographic is extremely active on the Internet and social media. The
survey in this format is quick, simple to complete, and easy to disseminate. Most of all, it
is presented on a medium that the key public is already experienced with and present on.
We decided to use a focus group instead of an in-depth interview due to the type
of information we are trying to obtain. An in-depth interview is more useful when you
have access to key personnel or when analyzing the decisions on an individual. A focus
group will better serve our needs because we are seeking more general feedback from our
key public. We want to analyze how this group makes purchasing decisions and their
opinions on our client. We are seeking insight into what the public would like to see from
the client, and a focus group setting will help us obtain this type of candid feedback.
We expect that utilizing both quantitative and qualitative research methods will
have a positive impact on our discoveries. By using mixed methods, we will uncover
diverse and detailed findings that will give us a more in-depth perspective of the key
publics and their behaviors. The survey will give us precise numerical data, while the

Final Macys Research Proposal

11

focus group will yield more rich description. Combining these results will give create a
more complete picture of the key publics and their ideas, behaviors, and values.
c. The research participants will be males and females between the ages of 18-29.
With a population of 5.28 million millennial in the U.S., the sample size will be about
1,067. The margin of error is +/- 3% and the confidence level is 95%. We are using a
method of probability sampling in order to obtain results that most accurately represent
the population selected. We selected systematic sampling as our method of sampling.
This method eliminates most bias in sampling by randomly selecting a sample population
using a set interval.
Macys, Inc. Internet survey
The following survey is for Macys. We appreciate your feedback and look forward
to improving our company to your benefit.
1. How often do you shop at department stores?
a. Never
b. Rarely
c. Sometimes
d. Often
e. Very often
2. Which type of store would you be most likely to shop at, 1 being most likely and 5
being least likely?
__Boutique
__Thrift shop
__Department store
__Retail store (ie. Old Navy, Forever xxi, American Eagle, etc.)
__Big Box store (ie. Target, Walmart)
3. What factors influence where you shop? Check all that apply.
__Prices
__Location
__Quality of Product
__Brand names
__Customer service

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Final Macys Research Proposal

4. Please rate the following brands in the order that you would most likely purchase them
(1 being most likely, 10 being least likely).
__GUESS?
__Levis
__Material Girl
__Tommy Girl
__American Rag
__Keds
__XOXO
__Jessica Simpson
__Angie
__Planet Gold
5. How often do you shop at Macys?
a. Never
b. Rarely
c. Sometimes
d. Often
e. Very often
(If you answered Never, please skip to question 10)
6. How would you rate your average experience at Macys on a 1-10 scale (click your
answer; 1 being terrible and 10 being excellent)?
1

10

7. How satisfied are you with the products that Macys carries (click your answer; 1
being extremely unsatisfied and 10 being very satisfied)?
1

10

8. Please rank the following areas in which Macys should improve (1 being most
important to improve and 5 being least important to improve)
__Customer service
__Variety of brands
__Quality of clothing
__Pricing
__Variety of merchandise (clothing, jewelry, shoes, etc.)
9. What types of products do you purchase at Macys? Check all that apply to you.
__Clothing
__Shoes
__Accessories/handbags
__Jewelry
__Beauty products
__Home goods

Final Macys Research Proposal

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10. If you have never shopped at Macys, please state why in the comment box below.
11. Please select your age range.
a. 17 and under
b. 18-22
c. 23-27
d. 27-30
e. Older than 30
12. Please select your gender.
a. Male
b. Female
c. Prefer not to answer
Focus Group for Macys, Inc.
Introduction
Can everyone please introduce themselves?
What typical stores do you usually shop at for clothing and beauty products?
What factors influence where you shop?
What is your current impression of Macys?
What was your last experience like at Macys?
Transition
What did you particularly about your experience?
What did you dislike about your experience?
What changes would you like to see at Macys? (Make a list)
Key questions
What can Macys do to better serve people in your age group?
What can Macys do to improve its service and products?
If you could give advice to our CEO, what would you tell him?
If you could include a brand into the Macys line that they dont already have, what brand
would you include?
Final
Is there anything you would like to add?

Final Macys Research Proposal

14

Discussion

We now have a layout, timeline, and budget for our primary research. From

here, we would proceed to post the survey online and analyze the information based
on the demographic (specifically the age) responses from participants, and we will
be able to filter out any respondents that do not fit the basic demographics of a
millennial. From there, we will be able to see the spending habits, what draws
millennials to stores, and other factors that Macys can use to develop a campaign to
reach that generation.
We would ideally like to begin working with Macys on creating an
advertising campaign as well as suggesting store redesign initiatives in order to
actually start reaching the millennial generation and influencing them to shop at the
store/be more involved in the store in general. Our survey and focus group should
provide us with more than enough information to know what the company needs to
prioritize in order to reach the millennial generation and what is less important.

Our research will ultimately benefit Macys financially and socially in relation

to the millennials. First, millennials have a strong voice and influence today in
society, especially in terms of the Internet and social media and therefore having a
closer relationship with them would benefit Macys in a social context. Additionally,
there will obviously be a financial gain from reaching the millennial generation and
influencing them to shop/spend more at Macys.

Final Macys Research Proposal

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References
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Creswell, J. W., & Clark, V. L. P. (2005). Principles of qualitative research: Designing a
qualitative study. In a Capella University workshop, Washington, DC.
"Current Annual Report / Fact Book - Macys, Inc. (2013). Current Annual Report /
Fact Book - Macys, Inc. Retrieved from <http://www.macysinc.com/forinvestors/annual-report/current/default.aspx>.
Department Store Retailing US (Feb. 2013). Mintel.
<http://academic.mintel.com.ezproxy.lib.indiana.edu/display/653232/>
Gantt.com (2013). What is a Gantt Chart? Gantt Chart Information, history and Software.
[online] Retrieved from: http://www.gantt.com/ [Accessed: 8 Dec 2013].
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http://academic.mintel.com.ezproxy.lib.indiana.edu/display/590277/?highlight=tr
ue>
Hopkins, A. "Macys the Latest Retailer to Say It Will Open Thanksgiving Night."The
Washingtion Times. (28 Oct. 2013). Retrieved from
<http://www.washingtontimes.com/news/2013/oct/28/macys-the-latest-retailer-tosay-it-will-open-than/?page=all>.
"Join Our Team!" (2013). Explore Career Opportunities at Macys. Search and Apply
for Jobs. N.p., n.d. Web.
Lipson, A. Issues in the Market.
"Macy's CEO: Unemployment Threatens Retail's Recovery, (22 Apr 2010). CNBC.com.
Retrieved from http://www.cnbc.com/id/36714157
"Macy's - Shop Fashion Clothing & Accessories - Official Site - Macys.com,
(2013). Macys.
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[online] Retrieved from:
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2013].
O'Toole, J. "J.C. Penney Scales Back Martha Stewart Partnership under Macy's
Pressure, (21 Oct. 2013). CNNMoney. Retrieved from
<http://money.cnn.com/2013/10/21/news/companies/martha-stewart-jc-penney/>.

Final Macys Research Proposal

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Reidy, C. "Business." BostonGlobe.com. N.p., (26 June 2013). Retrieved from
<http://www.bostonglobe.com/business/2013/06/26/fluent-firm-that-helpsbrands-market-college-millennials-moves-larger-huboffices/ME2WvOIkBzaPW7sOWMkwcL/story.html>.
Shropshire, C. "More than Cosmetic Change for Macy's Beauty Department, (20 Sept.
2013). Chicago Tribune. Retrieved from
<http://articles.chicagotribune.com/2013-09-20/business/ct-biz-0920-macysbeauty-20130920_1_ulta-beauty-beauty-departments-macy>.
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<http://www.stanford.edu/group/ncpi/unspecified/student_assess_toolkit/intervie
ws.html>.
"Sterne Agee Lowers Price Target on Macy's," (24 Sept. 2013). Bloomberg Business
Week. Retrieved from <http://www.businessweek.com/ap/2013-09-24/sterneagee-lowers-price-target-on-macys>.
Talley, K. Macys Issues Upbeat Outlook. The Wall Street Journal. WSJ.com. (26 Feb.
2013). Retrieved from
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66784520>.
Wilson, J. "Macy's Also Gets Slapped With Racial Discrimination Lawsuit By Black
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Final Macys Research Proposal

Appendix
a. Timeline (Gantt chart)
i. Timeline for survey

12/8 12/10 12/12 12/14 12/16 12/18 12/20 12/22

Draft of Letter for Survey
Letter to Survey Participants
Collect and Count the Number of Willing
Dissemination of 1000 Survey forms to 1000
Consolidate the Responses in the Survey
Analyze the Results of the Survey Using

ii. Timeline for the selected qualitative method

12/4
Researcher's Salary
Statistician
Travel Costs-Petrol
Stationery
Computer Laptop
Photocoping

12/6

12/8

12/10 12/12 12/14 12/16 12/18 12/20 12/22 12/24

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Final Macys Research Proposal

b. Budget (itemized narrated budget)
i. Budget for survey

Tasks
Calculations
Draft of Letter for Survey
Letter to Survey Participants
Collect and Count the Number of
Willing Participants who will be
involved in the Survey
Dissemination of 1000 Survey forms to
1000 participants through email
Consolidate the Responses in the
Survey
Analyze the Results of the Survey Using
Qualitative Methods
Total Cost

Estimated
2800
1765

2200
1750

1770

1830

2140

1900

1680

1590

1780
11935

1900
11170

3000
2500
2000
1500
1000
500
0

Calculations
Estimated

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Final Macys Research Proposal

ii. Budget for the selected qualitative method

Budget
0

500

1000

1500

2000

Researchers Salary
Statistician
Travel Costs Petrol
Stationery
Computer Laptop
Photocopying
Printing
Binding
Refreshments/Snack

Items/Resources
Researchers Salary
Statistician
Travel Costs Petrol
Stationery
Paper
Envelopes
Notebooks
Pen
Extra
Computer Laptop
Photocopying
Printing
Binding
Refreshments/Snack
TOTAL COST

Calculations
2000
1000
$25/week for 4 weeks

Estimated Total ($)

2000
1000
100

100

100

1000
30
50
20
Drinks/snacks

1000
100
50
12350

2500