Sears Product Market Analysis

1
SearsProduct Market Analysis

• Rohan Shah
• John Snyder
• Lani Wijaya

2
Retailing Industry

• Two Product Segments
• Soft lines (clothing, apparel, other fabrics)
• Hard lines (Appliances, electronics, furniture,
  home-decoration)
• Sears
• Hard line accounts 69 of the total revenue.
• Soft line

3
Sears Major Goods Categories

• Appliance
• Apparel
• Home-improvement

4
Appliances
5
Appliances
Sears Home Depot Lowes
Target Market Mid-High Income Brand Recognition Kenmore High Quality Dependability Mall Based Stores Applied Strategy Target Market Commercial and Professional Most Major Brands Great Customer Service Stand-alone Stores Applied Strategy Target Market Traditional American Household Mid-High End Brands Low Price Retailer with upscale feel Stand-alone Stores Applied Strategy

6
Appliances

• Brand recognition
• Fierce competition
• Need to match price
• Broaden selection
• Location-Perceived Inferior
• Misconception Only carry Kenmore
• Product Life Cycle-Mature Market for Sears

7
Apparel
Sears Wal-Mart JC Penney Kohls
Target Market Low-Mid Income Brands Perceived Low Quality. Image A Hardware Store Location Disadvantage Target Market Low to Middle Income Brands Acceptable quality for the price Image Low Price Leader Location Advantage Target Market Female shopper-Low to Mid Income Brands Mid Value Priced Image Conservative Semi-Fashionable Location Disadvantage Target Market Generation X Y Brands Fashionable Career-Wear Image Good Product at Low Price Location Advantage
8
Apparel

• Fussy Target Market
• Deemed as low quality clothing provider
• Customer perception as hardware and appliance
  stores
• Lands End
• More confusion in target market
• Compete with discounted retailer (Wal-Mart)
• Location disadvantage
• Product Life Cycle-Growth Stage for Sears

9
Home-Improvement
Great Indoors Home Depot Expo Lowes
Target Market Female Shopper. Income Range 50K Product Positioning Offer Hard and Soft Goods Image Ineffective. No name recognition. Target Market Incomes greater than 50K Product Positioning Moving to Lower Priced Products. Adding new product categories Image Traditional Higher Quality and Higher Priced Target Market Mostly Female. Product Positioning Upscale. Increased Selection and Web-base sales Image Upscale Product at Acceptable Price
10
Home-Improvement

• Targeting females with an income range of
  50,000.
• Lowes has better name recognition.
• Fewer Stores vs. Home Depot and Lowes
• Ineffective Sales and Promotion.
• Product Life Cycle-Growth Stage for Sears