Assignment: Macy's Technology Case Study
BACKGROUND:
The evolution of e-commerce, social media and mobile devices has permanently changed the expectations of consumers in the ways they shop and the demands they place on traditional retailers. "Brick and mortar" retailers continue to report declining trends in store traffic, comparative store sales and profit margins. Consumers are also making it clear that there needs to be added value to shopping in a physical store over the convenience of shopping online with an entertaining, effortless and personalized shopping experience.
Faced with these challenges, retailers are turning to a broad range of technologies to enhance the consumer experience. For example, digital business-to-business marketplaces are making it easier for retailers to source products, allowing them to be more nimble in responding to fashion trends and speed the delivery of products to the sales floor. Data analytics provides retailers with significant insight into consumer preferences and shopping habits, allowing them to tailor product assortments and marketing initiatives. Artificial intelligence and augmented reality technologies instantly allow consumers to see how a product will look on them or integrate into their environment. Rebecca Minkoff is a great example of how innovative RFID technology has been used in fitting rooms to triple expected clothing sales and collect valuable data, such as why certain styles are selling poorly due to fit issues. Indeed, retailers are rethinking their future store formats as many of these technologies will enable them to interact with their customers in new ways.
Technology is also changing consumers' expectations for the products they purchase. Innovations in smart textiles and wearable technology have given fashion designers new tools to create customizable products that can engage consumers. Recently, Levis has collaborated with Project Jacquard to launch the first ‘Smart' jean jacket for urban cyclists that uses conductive yarns to allow simple movements to activate functions on their phone without compromising the appearance of the garment.
OBJECTIVE:
Many of the technologies available to retailers are new and therefore have not yet achieved widespread application. Additionally, the recent poor financial performance of many retailers has left them with fewer resources to invest in new technologies, meaning that each new initiative must show a rapid, measurable return on investment.
Your objective will be to select one emerging technology that would allow Macy's to offer its customers an enhanced shopping experience. You may select from virtually any technology that is currently available to retailers, provided that it helps Macy's offer a more personalized shopping experience to the consumer and contributes meaningfully to sales and profit line. The technology can apply to the Macy's product assortment, supply chain, store environment, or communications strategy.
INSTRUCTIONS:
Based on the research you have done, strategically choose one emerging technology. Please explain why you chose this technology and what other options you considered before arriving at this decision.
1) Complete a demographic and psychographic profile for the consumer that your technology is designed to target. Be specific! What is the lifestyle, mindset, income level, and product needs of this customer? Remember that the customer should be part of the Macy target market.
2) Why does this consumer need/demand this technology in fashion? How will this technology provide enough value to this consumer to convert to a purchase?
3) How will the benefits offered by this technology be communicated to the customers?
4) How can your selected technology reinforce all shopping channels for Macy's including brick and mortar, e-commerce, and mobile?
Include the following:
1) Complete two comprehensive SWOT analyses - one on Macy's and the other on the technology that you have selected. You should do these in a chart format and include both charts in the appendix of your paper.
2) Which categories of product offered by the retailer would benefit most by implementation of the technology? In other words, you can select one category (for example, cosmetics) that would benefit from the technology's application.
3) Identify potential implementation challenges for the retailer.
4) Develop specific criteria the retailer can use to measure the effectiveness of the roll-out (how will they determine if it is successful)
5) Provide a detailed explanation as to how the technology will be introduced to the customer. How will it be marketed? What benefit(s) will it provide the consumer? How does it offer a unique platform to Macy's?
6) Develop an expansion strategy for your chosen technology, demonstrating how the retailer will integrate it into their operations. Explain how the retailer should determine the stores in which to test the technology and implement a full roll-out if successful.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
Attachment:- RE-Macys.rar