SEARS

1
SEARS
2
SEARS Meeting the Challenge of the Future.

• Despite Sears success and consumer popularity,
  they have experienced a recent decline in net
  income.
• Alan Lacy, Sears CEO, realized that Sears
  marketing strategies should be based on an
  understanding of how consumers select department
  stores while shopping for specific needs.

3
Problems Facing Sears

• Sears reported a 40 drop in net income for
  fourth-quarter 2000 earnings.
• The net income was 442 million, down from 740
  million.
• These reports did not include a 197 million
  charge, which was a result of closing 89 retail
  stores.

4
Is Sears doomed to be the next Kmart?
5
(No Transcript)
6
What role can marketing research play in helping
Sears continue to grow sales?
7

• The purpose of marketing research is to improve
  decision making related to identifying and
  solving problems.
• With marketing research Sears will be able to
  understand how consumers select department stores
  while shopping for their specific needs.

8
What is the management decision problem facing
Sears CEO, Alan Lacy?
9
Management Decision Problem

• Sears needs to figure out a plan to increase net
  income.

10
What is the marketing research problem facing
Sears?
11
Marketing Research Problem

• To determine what factors affect selection of
  department stores by consumers

12
Graphical Model
Choosing a department store
Selection criteria
Sears
Other dept. store
13
Selection Criteria

• Public Awareness
• Value
• Price
• Reputation
• Location

14

• SEARS Located in the butthole of a mall near you

15
Reasons We Dont Shop at Sears

• Lingering in the middle
• Over-extended
• No appeal to younger generation

16
Possible Solutions

• Reassessment of the advertising campaign
• Relocation
• Specialize in fewer areas

17
THE END