International Entrepreneurship

Macy’s Inc Bloomingdales

SARA

1 INTERNATIONAL ENTREPRENEURSHIP

Table of Contents

Executive Summary.............................................................................……..2

Objectives…………………………………………………………………………………………….3

1.2 Mission ………………………………………………………………………………..…………3

1.3 Keys to success………………………………………………………………………………..4

Company Summary………………………………………………………5

2.1 Company Ownership……………………………………………………………………....6

2.2 Startup Summary…………………………………………………………………………...6

2.3 Company Location and Facilities……………………………………………………..…7

Products…………………………………………………………………...7

3.1 Competitive Comparison………………………………………………………..…………8

3.2 Sales Literature ……………………………………………………………………….…8

3.3 Exclusive Merchandise Growth……………………………………………………….9

3.4 Technology...............................................................................................…...10

3.5 Future Products...........................................................................................…...10

Market Analysis Summary………………………………………..……11

4.1 Market Segmentation………………………………………………………………...11

4.2 Target Market Segmentation Strategy…………………………………………………….12

4.2.1 Market Needs……………………………………………………………………….…12

4.2.2 Market Trends……………………………………………………………………….13

4.2.3 Market Growth…………………………….…………………………………………..15

Vance Havne“The vision must be followed by the venture. It is not enough to stare up the steps - we must step up the stairs”


4.2.4 Industry Analysis……………………………………………………………………………….15

4.3 Main Competitors………………………………………………………………………………..15

Strategy and Implementation ………………………………………..……16

5.1 Market Strategy……………………………………………………………………………..….16

5.1.1 Pricing Strategy……………………………………………………………………..……….16

5.1.2 Promotion Strategy ……………………………………………………………………...16

5.1.3 Marketing Programs…………………………………………………………………….17

5.2 Positioning Strategy ……………………………………….………………………………..17

5.2.1 Sales Forecast……………………………………………………………………….…….17

Marketing Summary Analysis…………………………………..…………18

6.1 Organizational Structure………………………………………………………………….…18

6.2 Management Team………………………………………………………………………….20

Financial Plan……………………………………………………….……..21

7.1 Important Assumptions…………………………………………………………………..…21

References………………………………………………………………………………………...21



Executive Summary:

The report describes the significant steps for marketing penetration, as today understanding of country’s norms and values plays a vital role to win the consumers heart. It has become challenging and a major dilemma for an organization to enter international market. The proposal will highlight the foremost and core fundamental actions to be taken off in order to obtain and gain successful market dispersion and access.

Macy’s Inc Bloomingdales is an American nationwide outfit’s brand, after creating a positive influence domestically the company intends to establish a trade channel in the Middle East bazaar which is Kingdom Of Saudi Arabia. Despite of colossal line of rivals the company will differentiate itself through groundbreaking competitive comparisons. The company however, looks onward to conquer the consumers by crafting an entirely distinctive position in to the minds of the community by emphasizing on youths growing demands and adults ever-increasing to look more delicate and astonishing.

On the contrary, Bloomingdales under the partnership of Macy’s Inc promises and assure in bringing up the most innovative designs for ladies and gentlemen with the Saudi Cultural affect. Together both associates guarantee to transport and fetch the classiest and fashion styles for attire devotee that ultimately will fall under the demands of the consumers.



OBJECTIVES:

1. To occupy a distinctive position in the K.S.A market, spread the awareness of the brand quality and loyalty.

2. To build an exclusive shopping milieu that helps to accommodate and attract the needs of the style aficionado and devotee.

3. To provide the shopaholics and present them with the attire designed by the emerging designers according to their taste.

4. Provide them comfortable and outstanding fitting rooms, lounges and personal shoppers.

5. To have end user base of 10,000 within one year as the major objective lies in establishing a unique recognition of the brand and Company.

6. To achieve profit margin of $50,000 at the end of the year.7. Try best to congregate the flavor of the consumers.

1.2 MISSION:

Macy’s Inc Bloomingdales will bring Excellency in the city, class in the products, worth in procure, value in the appearance and apart from all, the Company will underline the up and coming need of all young and old age bracket.



1.3 KEYS TO SUCCESS:

In order to achieve the Saudi Arabia market Macy’s Bloomingdales must act upon on:

1. To form a complete different and separate identity into the mind of the consumers.

2. To develop a concept of fashion where aristocracy and nobility will be supply and could be offer in an affordable price.

3. Understanding the culture will play a vital role in enhancing the relationship with the consumers as well as the senior citizens of the country.

4. To promote and sponsor the brand into an areas where target customers will learn about our brand and stores.

5. Continuously review and check balance sheets and income statement to avoid any sudden mishaps during the operating activities.

6. Constantly verify the inventory in order to avoid impulsive deficit.7. Actively take part into certain activities like social and national festivals to

put forward and elevate the brand.



COMPANY SUMMARY:Macy's, Inc is a department store holding company and owner of Macy's and Bloomingdale's department stores. Macy's Inc.'s stores specialize mostly in retail clothing, jewelry, watches, dinnerware, and furniture.

Macy's Inc. is headquartered in Cincinnati, Ohio and operates just over 850 stores in the United States.[2] The company's Macy's locations and related operations account for 90 percent of the company's revenue, while luxury-oriented Bloomingdale's stores and associated ventures represent the balance of the company's business. Macy's is well known for its flagship department stores, most notably in New York, San Francisco, Los Angeles, Boston, the former Dayton's in Minneapolis, the former Kaufmann's in Pittsburgh, the former Burdine's in Miami, the former Wanamaker's in Philadelphia, and the former Marshall Field's location in Chicago and the former Famous Barr in St. Louis.

Macy’s offers powerful assortments and the best brands, tailored to each and every customer with obvious value, engaging service and unforgettable moments.

Clearly, Macy’s is distinctly different from other major retailers. Macy’s embraces customers and provides an experience that transcends ordinary shopping. Our heritage includes magical special events – the Macy’s Thanksgiving Day Parade, Fourth of July Fireworks, flower shows, fashion extravaganzas, celebrity appearances, cooking demonstrations and holiday traditions ranging from the arrival of Santa Claus to tree lightings and animated window displays.

Macy’s continued to expand in 2009 with new stores in the Dallas, Fresno, Kansas City, Phoenix and Visalia, CA, markets; a replacement store in Nampa, an additional Macy’s location in an existing mall in Guam; and the re-opening of two Houston stores damaged in Hurricane Ike. Macy’s currently operates about 810 stores in 45 states, the District of Columbia, Guam and Puerto Rico in addition to macys.com.

Now it’s planning to enter Middle East Market to increase potential growth and expand throughout to be recognized all over and completely on Global basis.


http://www.macys.com/

http://en.wikipedia.org/wiki/Marshall_Field's

http://en.wikipedia.org/wiki/Wanamaker's

http://en.wikipedia.org/wiki/Burdine's

http://en.wikipedia.org/wiki/Kaufmann's

http://en.wikipedia.org/wiki/Dayton's

http://en.wikipedia.org/wiki/Macy's,_Inc.#cite_note-1

http://en.wikipedia.org/wiki/United_States

http://en.wikipedia.org/wiki/Cincinnati,_Ohio

http://en.wikipedia.org/wiki/Retail

http://en.wikipedia.org/wiki/Bloomingdale's

http://en.wikipedia.org/wiki/Macy's

http://en.wikipedia.org/wiki/Holding_company

http://en.wikipedia.org/wiki/Department_store


2.1 COMPANY ONWERSHIP

Rowland Hussey Macy is the owner of the Macy’s Inc and Bloomingdales is owned by Joseph and Lyman G.Bloomingdale. Bloomingdales is an associate with the Macy’s Inc. It is Partnership Company that started as joint venture and started the company with Macy’s in 1930

2.2 STARTUP SUMMARY:

As the product will be launch in the Kingdom of Saudi Arabia, the business settings and startup program will take place according to the Country’s rules and directive without abiding the norms and values of the Kingdom.

As the Company cannot itself launch a product independently, Macy’s Bloomingdales will initiate under the partnership of Saudi businessman, which will facilitate to establish a proper guideline for us and also because this subsidize act as an intermediary and will arrange appointments with the different delegations with the Ministry of Commerce of Saudi Arabia.

Saudi Partner will assist the Company to understand the customs and manners, relationships and communication, to learn Arabs business culture and etiquettes and to comprehend the religion of K.S.A

The Ministry of Commerce in Saudi Arabia will help the Macy’s Inc Bloomingdales to implement a better business tactics into the region and will advice to use joint Western/Arab Ventures Law Firms, and thus winning the confidence of the Ministry will help to negotiate good business within the kingdom.

The Local partner, as it is considered imperative will help to encourage foreign investment. After the registration of the business with the help of the business partner, the company will show $50,000 to the Ministry of Commerce to start a venture as it is regarded a guarantee against liabilities, although a company can withdraw the capital shortly afterwards.


http://en.wikipedia.org/wiki/Rowland_Hussey_Macy


As the Company has done a complete research on to the country’s Culture and Market, the process still remains financially complex and uncertain. In order to avoid insure circumstances the company had further planned to employ a fine lawyer from the onset, because the experience lawyer will help the Company to channel through registration complications and will prove to be very crucial in protecting the company’s interest.

2.3 COMPANY LOCATIONS AND FACILITIES:

After a successful registration of the business, the company has planned to inaugurate and locate itself into the Capital province of the kingdom which is Riyadh. Although the fashion followers are found in another city of the Saudi Arabia which is Jeddah, but the company has planned to establish itself in the capital prior to Jeddah because all the new business emerge from the Riyadh as well as it has a long list of clients to take hold of.

The Company has chose to open the first store on the core marketing lane of Riyadh which is known as Olaya, as it is the major district of all clothing and citizens all over the city come to shop in this street.

The district of Olaya is recognized for the class and fashion. The public is profound about this area because this place is continuously updated with the current trends and brands, later on it spread all over other markets.

We believe it is critical to our preliminary and ongoing achievement that we locate ourselves in the heartbeat of the society.

The company’s office will also be housed at this location in the famous tower known as Kingdom Tower.

PRODUCTS:Macy’s is distinctly different from other major retailers. Macy’s embraces customers and of supply a wonderful experience that surpasses ordinary shopping. Macy’s offers powerful assortments and the best brands, tailored to each and every customer with obvious value.



Macy’s will bring the products and highlight the fashion in different ways, by keeping in view the needs of its customers. It will bring the Casual wears with simple and elegant yet modernized and inspired by the celebrities’ choice. Seasonal wears and diverse outline and sketch by professional plus emerging young designers of America. In addition it will commence watches, shoes according to which suit the customers’ demands.

Bloomingdale’s is a full-line, upscale clothing line. It is recognized for its originality, innovation and leadership. It will fetch and carry the party line dress for men and women.

Moreover, it will separate itself from the mainstream and reinforcing its position as an authority for upscale, contemporary fashion.

3.1 COMPETITIVE COMPARISON

Macys Inc Bloomingdales will set itself apart from its competitors in a numbers of ways. The Simplicity of Macy’s and novelty of Bloomingdales with added up-to-the-minute wears will combine the modernism and will help to capture the target market. Moreover it will develop a healthy customer base.

1. The stores will provide comfortable and luxurious lounges. Fitting rooms, where our customers can have more eased to select suitable clothes and check them according to their need.

2. We will endow our customers with experience personal shoppers who can guide them through their voyage.

3. We will craft sense of customs and link with the society by offering products that will combine the mixture of American and Arabs culture together. Bloomingdales has planned to combine the western party wears dresses with the Arabs women cultural dress.

4. Separate ladies and gents stores in order to create clear sense of marketing. 5. Our stores will be located to the innermost target customer base. 6. Seasonal and occasional discounts.7. Stunning and attractive displays of clothes and complete reviews.8. In order to build a firm relationship the Macy’s Bloomingdales will serve the

customer in a different way, by supplying them an offer to shop on credit basis after the 3 times purchasing and will add their address in to the



computers so they can be updated with the latest products by sending them outlets and magazines.

3.2 SALES LITERATURE

As Kingdom of Saudi Arabia is an Islamic Theocratic Monarchy, the advertisements and media remains very restricted. As the religion banns and prohibits the wrong use of anything which Islam does not permit.

Before advertising the product in the K.S.A, the company has decided to firstly take the permission from the Islamic Scientific Research. This research facility will give some proper guideline to follow within the country to advertise the products. It will include the proper

Wearing of women clothing in the TV Add and it should be positive and inspirational rather diverting the natives into negative side because the Saudi culture lacks diversity.

For a successful business achievement Macy’s Bloomingdales will do breathtaking and groundbreaking marketing.

1. 50 billboards will be advertised into the city of Riyadh, 2000 full colored postcards flyers will be circulated in the central areas of the city and 300 coupons o promotional of 25% on the first buying.

2. TV advertisements for more effective selling, publishing magazines of latest and currents products.

3. 4000 business cards with the back side translated in proper Arabic language.

3.3 Exclusive Merchandise Growth

Beyond private brands, Macy’s continued to aggressively pursue customer-right merchandise from market brands that are sold exclusively at Macy’s. This builds on



our success with Martha Stewart Collection, Tommy Hilfiger, Donald Trump and others.

In 2009, we launched Rachel Rachel Roy only at Macy’s and signed several new exclusive deals, including those for Ellen Tracy branded sportswear (to launch in spring 2010) and Sunglass Hut eyewear (with a rollout planned to begin in 2010). Exclusive and limited-

Distribution merchandise (including private brands) at Macy’s rose to more than 42 percent of total sales in 2009. In fall 2010, Macy’s had become the exclusive department store retailer of Kenneth Cole Reaction men’s sportswear and a new junior’s line called “Material Girl” being developed in conjunction with Madonna.

The Company looks forward to perform the same commerce within the Kingdom in order to increase the production and clothing business and to offer the community a great deal as well as variety of choice

3.4 TECHNOLOGY

The company will make the appropriate use of technology to further enhance the trade and create a systematic approach.

Macy’s Inc Bloomingdales will use the customer data systems which will be interlink with the core headquarters in America. All the sold products and purchased item will be enter into the system, as it will help to organize the inventory. It will be easy to check and review the capital earnings. Help to minimize the risk of deficit.

Moreover, the company will utilize the CRM software to keep the track of its customer. Customer Relationship Management will help to manage the information of the customers in a better way as it will allow all the sales managers, officers to sustain absolute and inclusive control over sales operations and not miss any prospects.



3.5 FUTURE PRODUCT

If the company becomes successful in grabbing the market, it will optimistically introduce the other products like dinnerwares and furniture as well as it will also introduce the private brands into the kingdom. The customers can enjoy the great line of global products within the boundaries of the Kingdom.

MARKET ANALYSIS SUMMARY

Saudi Arabia's economy is a Centrally Planned Economy. Private enterprises do exist, but they are regulated by the Saudi

government.

For a successful approach The Company will develop a thorough strategy plan. A perfect market analysis will prove to be enhanced idea. Training personnel’s, market entry plan, outline the market trends, consumer behavior, market size, competitors, resources, pricing, marketing and target marketing.

The Saudi Arabia is a very stable market with a very stable government. The leading target market of the Macy’s will be the youth, as they are found of American casual wears and constantly want to look simply stunning. The inspirational celebrities style, street fashions are the main theme they want to Vance Havne“The vision must be followed by the venture. It is not enough to stare up the steps - we must step up the stairs”


adopt in the ordinary life. As we believe that we are inaugurating in the main area, it will be easy for us to grab the large percentage of customers.

The secondary target market will be middle age women and men and Bloomingdales will provide them with the latest and trendy party line wears. Bloomingdales will look forward to provide the Saudi women to combine the hoopskirt with their Saudi cultural dress in order to give them new look.

4.1 MARKET SEGMENTATION

As the Youth from 16-19 are heavily found in the city of more affectionate of the trends and fashion will ultimately leads to the major and largest customer base.

The last minority of the targeted customer’s are the men and women from 28 to 45 ages who are present in the city. This market is also growing with a great deal and their demands to look more wonderful are increasing.

Sales

YouthMen and Women

Fisheries

4.2 TARGET MARKET SEGMENT STRATEGY



The imperative goal of the Macy’s Bloomingdales is to provide the youth as well as the adult with the greatest trends of fashion that could be afforded under the minimum price. The Company will best try its best to sell the product that best meets the expenses of the target customers.

4.2.1 MARKET NEEDS

There are many needs in the K.S.A market that hasn’t been touched yet in the clothing industry. The company is planning to give its impression on to fulfill all those needs and service that are stipulate and query by the consumers.

Spotlight and attention to customer's personal preferences and customer retention will be given high priority.

Providing the Customers with the luxurious fitting rooms that could be best for them to select the dresses which suits and match their taste.

The customers will be given individual personal shopper who will assist them and guide them to which sense of fashion to adopt. This is a main segment which is missing in the Kingdom.

4.2.2 MARKET TRENDS

“Our youth wants dashing personality”



Today’s youth are most fashionable and fashion conscious. They spend most of their time in choosing and selecting new trends and stay updated with the vogue. They strive to bring class in their looks yet with simplicity, stylish and little bit of craze. Boys and girls both apart from all these things wants to be hugely inspire with the celebrities and want to blindly follow their approach and elegance.



On the Contrary, the adult fashions always remain at its peak. The most delicate and sensitive styles of long skirts, long gowns are the beauty of women and admirable tuxedo is the good looks and the attractiveness of men’s style.

4.2.3 MARKET GROWTH



Retailing saw a strong performance in Saudi Arabia during the review period, with growth due to a number of factors. The country benefits from a high degree of affluence and saw a good economic performance, avoiding recession during the global economic downturn in 2009. Retailing also benefited from the country’s young population, with the majority of indigenous Saudis being aged below 30-years-old. Due to the conservative nature of Saudi society there are few entertainment options, with many of these consumers thus opting to socialize in malls and regarding shopping as a leisure pursuit. A major factor driving growth for retailing during the review period was the strong development of shopping malls, with this air conditioned outlets housing a wide range of offering a comfortable shopping environment.

Market Opportunity Analysis (MOA)

The Company now applies (MOA) to determine the attractiveness and success probability of opportunity. The company must determine that the target market be located and reach with cost-effective media and trade channels. Can the company able to give successful benefits better than their competitors? Will the financial rate of return meet or exceed the company’s required investment.

4.2.4 INDUSTRY ANALYSIS

There are several retailing stores who are selling the garments and outfits in a variety of way.

Medium and Small size commerce exist in a variety and serving in fabulous means to citizens expressly.

Large size industry western clothing wears subsist and sell in a cosmic system.

4.3 MAIN COMPETITORS

Macy’s will have a huge line of competitors in the Riyadh, internationally as well domestic products.

All the American and UK brands such as Parada, Gucci, and lots of others domestic Arabs attire is available in a vast mode. All these competitors hold their own unique position and admired by the community but as the demand increasing the youth specially are inspire by the most fashionable brands, we believe we will ultimately conquer this need and niche of the market.



STRATEGY AND IMPLEMENTATION SUMMARY

We ended 2010 by updating Macy’s business strategy and brand strategy to guide the growth in sales and profitability we have planned for 2011 and beyond. In doing so, we have honed our focus on specific metrics. We have refreshed our four strategic priorities – Assortment, Value, Shopping Experience and Marketing – with a new generation of tactics. We are working to create a culture in our organization that embraces innovation and testing, an inclusive work environment, the development of people, and collaboration internally and externally.

5.1 MARET STARTEGY

The main focal point of our marketing promoting of the products will mainly depend on sales endorsement, niche positioning in the market and customer service with loyalty and retention in sales and separately positioning unique brand recognition into the consumers mind.

5.1.1 PRICING STRATEGY

We will be locating ourselves on the basis of flexible and supple pricing strategy by offering garments on the outlay which could be easily afforded by our valuable customers.

5.1.2 PROMOTION STARTEGY

The company looks ahead to follow a possessive yet very creative campaign in order to have a successful launching of the product.



5.1.3 MARKETING PROGRAMS

Our marketing program will include the positive and effective advertisements keeping in view the norms and values of the society as well as the escalating claim of the society. Our goals consist of creating a good image into the consumers mind and good will in the Saudi Arabia market.

5.2 POSITIONING STRATEGY

Customers will find and comprehend the product into breath taking and ground breaking mode. The influence will be “the offered product is of great value and will make them look what they actually desire yet in a simple or in a noble way”

5.2.1 SALES FORECAST

Year 1 Year 2 Year 3$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

Clothing

Clothing

The above mentioned graph represents the forecasting of sales for the 3 year coming years. The yearly increasing show that Macy’s Inc Bloomingdales will have sales for $55,000 for the 1st year and the very 2nd we see accumulation of $15,000 which makes up $60,000 and the 3rd year we calculate up to $80,000 which shows that $20,000 extra profit has been added up.



MANAGEMENT SUMMARYMacy’s Inc Bloomingdales will provide a competitive environment for the employee to work within. All the Personnel’s will be welcome to present their creative idea for the field they are working and to show their rational abilities. The entire task will be handover to them according to which they are assigned for keeping in view their strength and weakness, because the high mental capability to deal with the customers and charming personality will play crucial role in winning the heart of the consumers.

Ronald Klein and Jeffery Gannette will be given the responsibilities of all the productivity and operating activities to handle within the Kingdom and to keep on evaluating on all personnel’s in order to have a smooth operation.

6.1 ORGANIZATIONAL STRUCTURE

As the Macy’s is a large expending business, Jeffery Gennette will act as a Managing director in the Kingdom and will have the authority to make all the decisions regarding the business and hire employees based upon their level of skills proficiency and for the work.

6.2 MANAGEMENT TEAM

Ronald Klein is a Chief Executive Store Officer of Macy’s Inc will act as a Country Manager in the Kingdom and will handle all the administrative functions; inventory controls all the accounting operations and related activities. He previously served as Executive Vice Chairman and Chief Officer of different Macy’s Division.



FINANCIAL PLANThe growth of the Macy’s Inc Bloomingdales will be restrained and judicious. The balance sheet will always be positive.

7.1 IMPORTANT ASSUMPTIONS

As we are also selling our products on the credit basis, the checking of all records of sold products to the customers will be highly imperative to be continuously detect and aware of .As this type of selling falls under our competitive comparison, we have a great advantage that we cannot be disloyal to our consumers because Saudi Arabia have great policy that no consumer or citizen shall leave the boundaries of the country until and unless all remaining dues are cleared. We believe and take this as a very good opportunity to introduce the credit basis selling in the City for the very first time, without any certain or major future mishap.


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