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Brand authority as a component of success: the Macy’s case
Building a successful brand requires a unique approach. It is impossible to copy another company’s strategy and achieve sustainable results. This leads to attracting an audience that focuses solely on the product’s price. However, brand authority plays a key role in today’s market. It ensures stable profits and a long life cycle for the company.
The very concept of brand building is about providing customers with a personalised, relevant experience. Many factors need to be taken into account to achieve this, and credibility is one of them. A company must become a leader in its field to earn its audience’s loyalty. A prime example is Apple, which has created a unique brand image. This has helped it attract customers who share its values.
However, it is important to recognise that demonstrating authority is no guarantee of success. In addition, the brand proposition must be consistent with the desired attributes. Put simply, the food has to be tasty, and the appliances have to be of high quality.
The Macy’s case
The key to successful business development is to focus on differentiation. The Macy’s brand is a good example of this. The company developed a new strategy to transform its footwear business, devoting significant resources to implementing the changes. The plan aimed to improve the customer experience and increase sales.
It is worth noting that Macy’s profits were declining at the time, and measures had to be taken to increase them. However, the company decided to focus exclusively on the footwear segment rather than on strengthening its brand. At the same time, the products were positioned as high-quality and expensive, which limited the potential audience.
According to analysts, Macy’s made a number of mistakes that undermined its efforts:
- the company didn’t initially figure out what made it unique;
- it focused on one segment, forgetting the importance of its credibility;
- Macy’s shoes are not a unique product; there are many strong competitors in the market.
Notably, companies with low credibility are successful in the market. At the same time, they have a high degree of product uniqueness. These are niche companies that operate in narrow sectors. Dyson is one of them.
In the case of Macy’s, it was necessary to focus on the following success factors:
- relevant differentiation;
- continuous business process improvement;
- improving the quality of services provided;
- increasing the level of customer confidence.
Macy’s had every opportunity to achieve its goals. It had built credibility in shopping and attracted its audience. However, the brand did not pay adequate attention to its customers, which led to a loss of trust. The company must now rebuild its relationship with consumers.
This example highlights the importance of authority, especially in areas where the company is already strong.