Advertising has always been around. In a competitive market it is necessary. In this post I will look at the fortune 500 retail companies Bed Bath & Beyond and Macy's. One of them have a very heavily driven advertising initiative and the other not so much to put it mildly. In examining the longevity of Macy’s and the relatively new company Bed Bath & Beyond there are clear distinction in the way the two retail giants fundamentally operate when it come to advertising.
Ranking on the Fortune 500 list
110. Macy's
294. Bed Bath & Beyond
Based on the list you can recognize the company with the least advertising effort. It has been proven that there is a direct correlation between sales and advertising. So why doesn't Bed Bath & Beyond do more advertising? If you have not noticed BBB does not have any billboard, television, or any major advertising campaigns like that of its competitors.
Looking at it from a business stand point Macy's grossed over 26 billion in revenue last year. Macy's is recognized as one of the biggest department store retailors today. A big part of the company's success is the Macy's brand management. Everyone recognizes the red star as the Macy's logo. It has become an icon in the world of retail. Another example is the Macy's day parade. Millions of people tune in to watch it every year. The retailer also strategically does collaborations and joint branding efforts with today's biggest celebrities. Everyone from Diddy to Mariah Carey can be spotted in a Macy's Ad. Macy's stays current with the trend of the day. This is smart, the consumer in 1980 is not the consumer today. I think Macy’s does an excellent job at speaking to the current buyer through advertising.
Bed Bath &Beyond on the other hand uses one form of advertising, coupons essentially. We all have seen them in the mail and I will be the first to admit that I love them. But this is not your intricate massive advertising campaign when compared to any major retailer today. BBB which was founded in 1971 has over 900 stores in comparison to Macy’s which has a little over 800 stores. Further more BBB offers a far greater variety of home products in comparison to Macy’s. Yet BBB’s annual revenue last year was a little under 6 billion. I think BBB has the potential but should focus on branding through heavier advertising and speaking directly to its costumers through ads. It is impressive that BBB has grown into one of the most well respected retail companies today using only coupons and very traditional marketing measures. I think this fact alone is motivation enough, it’s clear they have a loyal consumer base that loves their products. I think this company has a lot of untapped potential.
BBB has demonstrated excellent customer services along with product variety and consumers love that. This is something most retailers cannot boast about. Macy’s strength lies in their advertising that is why they spend millions upon millions on it. BBB strength is its good company-costomer relationship. With the right advertising campaign that enhances their established marketing strategy they can quickly move up that fortune 500 list.
A very interesting and informative posting. I suggest you take out the I thinks... when writing. I did this in my writing a lot as well and I had to stop doing it.
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