Transcript Sears

SEARS
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.

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.

Is Sears doomed to be the next
Kmart?
What role can marketing research
play in helping Sears continue to
grow sales?
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.

What is the management
decision problem facing Sears’
CEO, Alan Lacy?
Management Decision Problem

Sears needs to figure out a plan to
increase net income.
What is the marketing research
problem facing Sears?
Marketing Research Problem

To determine what factors affect
selection of department stores by
consumers
Graphical Model
Choosing a department store
Selection criteria
Sears
Other dept. store
Selection Criteria
Public Awareness
 Value
 Price
 Reputation
 Location

SEARS: Located in the
butthole of a mall near you
Reasons We Don’t Shop at Sears
Lingering in the middle
 Over-extended
 No appeal to younger generation

Possible Solutions
Reassessment of the advertising
campaign
 Relocation
 Specialize in fewer areas

THE END