Initial Question(Does It Matter Where You Sell? Read the following articles: Link: https://knowledge.wharton.upenn.edu/article/can-macys-save/ PDF: Can Macy’s Save Itself? – Knowledge@Wharton.pdf Click for more options Link: https://knowledge.wharton.upenn.edu/article/e-commerce-consumers-can-retailers-meet-rising-expectations/ PDF: E-commerce and Consumers: Can Retailers Meet Rising Demands? – Knowledge@Wharton.pdf Click for more options Some marketers feel that the image of the particular channel in which they sell their products does not matter—all that matters is that the right customers shop there and the product is displayed in the right way. Others maintain that channel images—such as a retail store—can be critical and must be consistent with the image of the product. Please explain why channel images must be consistent with the brand image. In your discussion, use BOTH the text and both of the articles to support your position. Additionally, in light of the global pandemic, do you believe Macy’s will be able to save itself? Support your view with the text, articles, and outside sources.) Response to your classmate should further the discussion and include concepts learned from the text. The primary discussion post below… “Some marketers feel that the image of the particular channel in which they sell their product does not matter as long as the targeted segment of buyers shops there. According to Kotler and Keller (2016), “Each channel can target a different segment of buyers, or different need states for one buyer, to deliver the right products in the right places in the right way at the least cost” (p. 494). These marketers understand the value of multichannel marketing and believe increasing their presence across multiple channels is merely a numbers game that will increase sales due to the increased accessibility. Unfortunately, while this strategy may sound appealing, issues such as dilution and cannibalization may occur depending on the products being sold. One category where channel image is critical and must be consistent with the product’s image is luxury products. Kotler and Keller (2016) stated, “they are perhaps one of the purest examples of the role of branding because the brand and its image are often key competitive advantages that create enormous value and wealth” (p. 376). As a result, luxury products must be distributed via a selective channel strategy to maintain a premium image. For example, customers would form a negative impression of the brand or product if the shopping experience was unpleasant. Similarly, luxury products would lose their exclusive image and value if sold via discount channels. Macy’s is a channel member known to be up-scale and carry higher-priced products compared to retailers like TJ Maxx, Marshalls, and HomeGoods. In addition, in line with their product images, Macy’s is usually in excellent anchor locations at malls. In contrast, TJ Maxx, Marshalls, and HomeGoods are located in less desirable areas like strip malls. Unfortunately, the pandemic has caused decreased sales for Macy’s due to consumers transitioning to online shopping to avoid potential virus exposure. The retailer is strategizing the best path forward. Critics have highlighted how they don’t see the quality or value of shopping at Macy’s due to high-priced products that can be found cheaper elsewhere, paired with an uninviting in-store experience. Two conflicting ideas are that Macy’s focuses on discounting products similar to TJ Maxx to attract shoppers in search of bargains or focus on addressing their uninviting in-store experience. According to the article Can Macy’s Save Itself (2020), “Macy’s has to deliver great merchandise and the best in-store experience, which is now about things like customization, concierge services, cool brands, and fun in-store opportunities.” Macy’s must retain their original premium image and continue to carry higher-priced products instead of adjusting its focus and attempting to compete with retailers that are already well-known for bargains and discounts. Instead, Macy’s needs to focus on fixing its image and reclaim their status as an up-scale retailer with quality products and services. Another concern is the ability of Macy’s to compete with online retailers such as Amazon. Macy’s should take notes from Target’s playbook as they did a tremendous job navigating COVID with their ‘Target Run’ campaign. The campaign provides additional options to the traditional in-store experience, such as pickup, drive-up, and ship, to increase convenience and efficiency. While many consumers transitioned to online shopping to avoid COVID-19, Target retained customers by offering a hybrid alternative for those unwilling to go in stores. Brick-and-mortar establishments have a significant advantage over online retailers: location. The drawback of ordering online is the delay consumers need to wait until the order processes, ships, and ultimately arrives. In contrast, with physical retail locations, customers can receive their purchases much quicker. According to the article E-commerce and Consumers: Can Retailers Meet Rising Demands? (2020), “in order to achieve speeds such as same-day or two-hour delivery, a business needs to have forward-deployed inventory (meaning inventory is maintained in a number of small locations around the country rather than one large warehouse).” Macy’s already has a significant investment in locations across the country and is appropriately positioned to capitalize on this advantage that many online retailers do not have. Macy’s is an excellent example of how channel image must be consistent with brand image. They would be wise to remain an upscale retailer with higher-end products and invest in improving their declining in-store experience. To effectively compete with online retailers in a post-pandemic world, they need to also capitalize on their significant investment in real estate and use their locations as a substantial advantage over online retailers.” Required References below: Can Macy’s save itself? (2020, February 11). Knowledge at Wharton. https://knowledge.wharton.upenn.edu/article/can-macys-save/ E-commerce and consumers: Can retailers meet rising demands? (2020, January 15). Knowledge at Wharton. https://knowledge.wharton.upenn.edu/article/e-commerce-consumers-can-retailers-meet-rising-expectations/ Kotler, P., & Keller, K. L. (2015). Marketing management (15th ed.). Pearson Education https://www.ted.com/talks/rory_sutherland_life_lessons_from_an_ad_mantion.
