Joins the Movement

Chad FosterIndiana Baltodano Jamie Berlin

Eliza Weiss Kevin Jaedon Tran

Dana Bezozo

Who is the American Rag Girl?

Casual

Dreamer

Fashionable

FreeSpirited

Fun

Flirty

Youthful

American RagShe is…

“We think that she is in the know and looks for hot new trends, they just may be a little tamer than some other brands. She is, overall, our

sexy ‘good girl’” – Sean Orr, Product Manager American Rag Shoes

American Rag Target Market

Age range: 15-25

Mill

enni

al

Competition

*

18-19 Years0%

20-31 Years16%

32-41 Years17%

42-51 Years27%

52-61 Years19%

62+ Years11%

Unknown10%

18-19 Years

20-31 Years

32-41 Years

42-51 Years

52-61 Years

62+ Years

Unknown

Total American Rag customer base: 1.9 M

Source: Purchase History 6/20/2010 – 6/18/2011, Macys Marketing Department

American Rag Customers by Age

Spend by Age Group

Total Spend: $82,612,223

Source: Purchase History 6/20/2010 – 6/18/2011, Macys Marketing Department

Millennials Care About Issues

Millennials & Causes

of undergrads believe that it is important to

influence social values, which is the

highest the value has been since 1993.

will trust a company more if it

is socially & environmentally

responsible.

8 out of 10 42.5%consider a

company's social & environmental

commitment when deciding where to shop

69%

Source: Generation Y gets involved; USA TODAY

American Rag Joins the Movement:

Fashion and Philanthropy

The Tote Bag Launch

• Join the Journey to Brazil Campaign

• Include Millennials • Capitalize on Current

Trend

Human Services and Health

Public SocietyBenefit, Environment

& Animals

Education,Arts, Culture and

Humanities

The Next Step…

“Vote for the Tote” Competition

Have posteda video of

themselves online

1 out of 5have a profile on a social networking

site

75%Social networking for Millennials has grown 70% since

2005

Source: Social Media & Mobile Internet Use Among Teens and Young Adults, Pew Research

Millennials & Social Media

Vote for the Tote!

Facebook Users Submit DesignsFor Charities.

The facebook community votes and comments on design finalists picked by Macys.

Winning designsis made and sold atAmerican Rag.1 2 3

Facebook Users Submit DesignsFor Charities.

The facebook community votes and comments on design finalists picked by Macys.

Winning designsis made and sold atAmerican Rag.1 2 3

Vote for the Tote!

Facebook Users Submit DesignsFor Charities.

The facebook community votes and comments on design finalists picked by Macys.

Winning designsis made and sold atAmerican Rag.1 2 3

Vote for the Tote!

Case Study: Macy’s Million Dollar Makeover

Online Image

Production and Pricing Strategy

2 Weeks

Source: American Rag Handbags Department

Product Development

3 Months

Department: American Rag HandbagsVendor: Sunrise

Production & Transport Delivery to Store

Source: American Rag Handbags Department

Pricing Strategy

Revenue (Final Market Price) $20.00 $200,000.00

Landing Cost (Vendor/SPA/Etc) $6.92 $69,000

Donation to Charity $2.00 $20,000

Total Costs of Goods Sold $8.92 $89,200

Profit Margin $11.08 $110,800

Mark Up Percentage 55.4%

After 8 weeks 25%-30%

Source: American Rag Handbags Department

Exit Strategy

Source: American Rag Handbags Department

After 12 weeks 50%

Exit Strategy

Liquidation

Source: American Rag Handbags Department

Exit Strategy

Promotion and Marketing

Strategy: Pandora Takeover

•100 million listeners•Targeted advertisement •Not just a pop-ad – can create a brand experience

Cost $50,000/month ~7.1 million impressions

Source: Macys Marketing Department

Marketing & Advertising Venues

Cost $25,000/month~4.1 Million

Strategy: Facebook Targeted Advertisement

•Inform millennials about “Vote for the Tote” and increase participation

Source: Macys Marketing Department

Marketing & Advertising Venues

Cost $30,000 Strategy: Online campaign

•Capitalize on American Rag’s partnership with Seventeen Magazine

Source: Macys Marketing Department

Marketing & Advertising Venues

Give to relevant celebritiesMagazines/Print Media

Product Placement

Users can upload outfits incorporating their

American rag bags onto facebook/mStyleLab

mStylelab & Facebook

HangtagStore Display

Instore Merchandising

Additional Merchandise

Discount With Tote

College Discount

Such as…

Further Expansion

– Create awareness – Improve brand equity– Expand customer base– Create a Macy’s exclusive “it” item– Tie American Rag brand to a “hot,”

millennial-driven social trend

Our Initiative Will…

Join The

Movement