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

Choosing a department store 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

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