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Sears Product Market Analysis

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Presentation on theme: "Sears Product Market Analysis"— Presentation transcript:

1 Sears Product Market Analysis
Rohan Shah John Snyder Lani Wijaya

2 Retailing Industry Two Product Segments: Sears
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 Lowe’s 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 Target Market: Traditional American Household Mid-High End Brands Low Price Retailer with upscale feel

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 Kohl’s 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

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 Lowe’s
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.
Lowe’s has better name recognition. Fewer Stores vs. Home Depot and Lowe’s Ineffective Sales and Promotion. Product Life Cycle-Growth Stage for Sears

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