retail

Macy's Reprises 'Believe,' Pushes Image Over Price

Macy's Yes Virginia Macy's is kicking off its holiday ad campaign with a new animated TV spot, featuring Virginia, the animated little girl in its holiday "Believe" campaign. While that's hardly news -- the nostalgic campaign is now in its third year -- what is remarkable this season is a retailer pushing brand image over price.

Kohl's, for instance, just launched a holiday campaign themed "Give, save and be merry," and JC Penney's Web site is currently promoting big sales and early door-busters. And even higher-end stores are hyping deals: Nordstrom already has its "Holiday Free Shipping" offers up, and even Neiman Marcus is tempting shoppers with something for nothing, with a "Buy now, gift later" promotion that promises free shipping and gift wrap.

"Macy's is trying to zig when others are zagging," says Sally Mueller, a former marketing executive with Target who now runs Mueller Marketing in Minneapolis. "It's trying to rebuild an emotional brand connection, which department stores were once known for, while straddling the balance -- it doesn't want to come across as a middle-tier store, like Penney or Kohl's, and still compete with higher-end stores, plus all the regional players."

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Of course, that's not to say that Macy's isn't pushing the price message just as hard in stores and on its Web site -- it is. But by turning the plucky little redhead into its holiday marketing linchpin, "it can differentiate itself a little," she says.

In addition to the Macy's National Santa Tour, Macy's has declared Dec. 10 National Believe Day, and the retailer is again asking people to write letters to Santa, opening letter-writing "Believe Stations" in stores, as well as through its macys.com/believe microsite. And as in years past, each letter generates a $1 donation from Macy's to Make-A-Wish Foundation, up to $1 million. (In its first two years, 2.5 million letters were written.) And "Yes, Virginia," the animated special, is scheduled to air Dec. 17.

Of course, this early in the game, it is still anybody's guess what will resonate most with shoppers. "Retailers and consumers are out of the gate early this year," Doug Stephens, president of Retail Prophet, a consulting company based in Toronto, tells Marketing Daily.

"Retailers are looking to extend the buying period and consumers are trying to stretch their budgets. Consumers will respond to retailers who promise the best overall value for the money. That may not always mean the lowest price. It may be a blend of selection, quality, and rewards. But consumers are looking for retailers to help them get their list done with minimal pain."

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