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