Sears Rebranding and Marketing Strategy - Case Study Example

Sears Rebranding and Marketing Strategy Creative Brief Current Situation Sears has been undergoing turbulent economic times in recent history. With a seemingly clear crisis in its identity, the once robust retail store that once boasted sales values of over 10 billion dollars has struggled to fend off competition from other retail stores for market share and sales. The company has failed to respond to the changes in trends in the retail market, in the process losing revenues. Consumer Problem The consumer market in the United States has changed tremendously over the past decade. This market continues to change every so often, with the entry of hundreds of new products into the market. Currently, there are more than 20 large retail stores in America that put in efforts to satisfy a growing demand for quality products. In this regard, it is imperative for any retail store to respond to these drastic changes by constantly refreshing their stocks and employing vigorous advertising campaigns that will appeal to the various target groups. Sears has not been in touch with consumer requirements over a long period of time. Its reluctance to conform to the demands of consumers has seen the firm undergo losses going into billions of dollars. The composition of the consumer market has changed with the times, and right now the biggest customers of retail markets are the young adults. It is estimated that this particular group contributes either directly or indirectly to 75% of all sales in retail stores. In a population of over 311 million people, this amount of influence cannot be ignored by a serious retailer. Tastes and preferences of the market have had an almost absolute change over the past decade. There have immerged technologies that have appealed to the consumer base, changing the entire consumer patterns. The importance to respond to these changes in consumer needs in a timely manner cannot be stated enough. Marketing Objective Sears seeks to provide quality solutions to the diverse consumer needs by stocking products that form the heart of what the consumer requires with the aim of satisfying demand. The company has a desire to create awareness among all demographics on the quality of products and services it wants to offer through undertaking consumer surveys to better understand the market trends. The company shall also use vigorous advertising in efforts to rebrand and resell its image in the market. In light of sales, Sears seeks to maximize unit sales in order to maximize revenues. The company will employ several methods of drawing customers to its stores such as promotions on selected products on sale at the stores. Another method that Sears will consider using to draw customers to the stores is by sale of special coupons to customers who make purchases up to a specified amount of money. Other methods will be looked into to ensure they are effective and will serve the purpose intended; to drive up sales figures for the company. In increasing sales figures, the company shall be positioning itself to command a larger share of the market that was lost to competing retail stores over the years. In order to retain these customers and protect the gained market share, Sears will need to have a working loyalty programme that will reward customers for their support. The company shall also protect its market share by widening the variety of products on sale at the stores, while at the same time ensuring quality in these products and services. Brand Strategy Positioning Sears is a brand that is already well known within the United States. However, the company will need to rebrand to indicate changes in strategy in conformity with the new goals of the firm. It is advisable that Sears sells itself in the minds of the consumers as the go-to place for consumer goods due to the guaranteed quality of products sold and availability of products that are in demand. In so doing, Sears shall have to appeal to a cross section of target markets like the young people, the Millenias and the aged. In stocking the latest products on its shelves, Sears shall be able to supply latest innovations to the growing populations, while still stocking brands that have been around for a while and have loyal customers. As a brand, Sears should be etched into the minds of the consumers as a reliable solution provider for desired quality goods with stocks being available to satisfy their needs. Marketing Strategy Target Audience 1. Demographics By rebranding, Sears will be making another entry into the retail market. This will entail competing with the big box retail stores like Walmart and Target. Demographic information is important in formulating a marketing strategy as it will enable Sears find out who the consumer is, and what group in the population prefers what. Recent demographic surveys of shoppers have indicated that more urban young people shop at retail stores than any other age set. The population of people in this age group is approximately 112 million people. This group has adopted online shopping as a preferred mode of shopping, having grown up in a wired world. This has made Amazon record the biggest online sales ever recorded. In fact, Amazon’s sales figures are more than all of its main competitors combined. This is an indication that this population commands a large chunk of the consumer base and needs to be considered in this marketing plan as the main target group for Sears. The potential sales that Sears stands to make as a result of marketing itself to the young generation is limitless as this consumer base is the next workforce and will have disposable income for more than 20 years to come. It is, therefore, prudent to secure their loyalty because it could mean sustained sales figures for the company in future. 60% of retail store shoppers are women. In creation of a marketing plan, Sears should consider setting up a department for women’s products, as this figure is expected to grow. Male shoppers are more inclined to adopt online shopping because of its convenience. In order to capture tis large target group, Sears should market itself as a retail store that has top quality and updated home appliances and women’s products. This will attract more women to the stores. Demographic statistics show that in the United States, women form the bulk of furniture buyers. Endearing the brand to Sears will not only ensure sales of the small items but also large items like furniture. 2. Psychographics (VALS) Sears shall employ the use of VALS (Values, Attitude and Lifestyles) to find out the psychographic segmentation of its customer base. The VALS system is reliable in finding out what the consumer is thinking and prepare the company for measures to be taken to adopt to these thoughts and ideas well in advance before the competition finds out. Sears’ core target market is the young generation. This segment of the population has a liking for technology and as such has taken up online shopping. In order to appeal to this group, Sears should take advantage of the fact that this population is wired to online shopping and set up an online shopping site that sells products to this target market with discounts. The payment and delivery system should be prompt in order to give Sears an edge over the competition in terms of customer satisfaction and after sales services. The use of the internet to buy products is meant to be effective and time saving. Therefore Sears should invest in developing a reliable online shopping site for this particular target group. 3. Relationships By rebranding, Sears shall be seeking to rebuild the relationship it had with its old customers while still putting in efforts to create new relationships. Sears shall work towards retaining the customers it has currently by improving services offered to them and using them as ambassadors of the company. The company shall also build new relationships with reliable partners who will be able to help the firm with its marketing and sales strategy such an proven advertising and marketing firms and publicity companies. A healthy relationship with these partners will ensure the intended message that the company bears for the market is disseminated correctly and exhaustively and promotes the mission and vision of the establishment. Sears shall also maintain some of its suppliers while replacing some. This is because the retail store shall be changing its strategy to gain a competitive edge in the market, and in so doing some products that have not been performing well will not be stocked by the company. The company will employ a strategy of mainly stocking fast- selling products to ensure that the traffic of customers does not stop moving. Competition The main competition that Sears will be up against includes the big box retailers such as Target, Wal-Mart, Cosco, Macy’s, Kohl’s, BestBuy. The establishment shall seek to establish itself as one of the biggest retail stores both in volume of sales and physical presence across the country. The company also recognizes the competition fronted by smaller retail stores like Staples, Radio Shack, JC Penney and even its sister company K-Mart. By beginning to stock products favored by the young people, Sears will be competing against high end brands that focus on fashion like Nordstrom, Bloomingdale’s, Lord & Taylor, and Neiman Marcus. Creative Strategy Sears shall seek to have a unique selling proposition as a retail store that serves as a one-stop shop for all the needs of the young generation. Currently, there is no large departmental store that has zeroed in on this particular subset of the population and so this proposition is highly likely to attract the target audience. The Brand Promise The Sears brand promises to supply products of high quality to the market and satisfy the demand for its products by constantly restocking and making products available for the consumers to purchase. Benefits to the Prospect The prospective customers will be able to enjoy top quality services and products from Sears, at the same time saving money from discounts for purchases of particular products from the Sears stores. The prospective customers can also take advantage of the effective delivery system should they shop for products online. This will save them a lot of time and money as well, as compared to doing shopping at physical locations. Call to Action The prospective customers are expected to visit the stores and the online shopping websites in order to view the products on offer and begin purchases. Net Impression Sears is the ultimate one-stop store and solution provider for all consumer needs. Consumer Profile The Sears advertising campaign shall target the young population. This will be in line with the new company strategy that is to appeal to this generation of shoppers. This sub set of the population has become attached to high end fashion products and state of the art technological products such as smart phones and computers. This population is motivated by a desire for a comfortable lifestyle and owning the best things in life. The most important aspect of a product to this target market is the quality of the product that is being sold to them. The young American population is a highly ambitious group. They seek every opportunity for financial freedom and security and savings. Therefore they are drawn by offers and promotions that would assist them get more value for less. This explains why the young generation has a need for fast moving products that do not require a lot of investment to acquire. Most of the members of this generation are urban dwellers, living in towns and cities across the country. It is notable that this target group watches a lot of television and spends a considerable amount of time online. The social media sites are highly populated by members of this age group. Already, the young generation has shown positive response to the use of social media as a tool for marketing. Works Cited "Lampert Says He Has Sears Strategy as Analysts Doubt It: Retail." Bloomberg.com. Bloomberg, n.d. Web. 14 Apr. 2014. . Maehle, Natalia, and Magne Supphellen. "Advertising strategies for brand image repair: The effectiveness of advertising alliances." Journal of Marketing Communications 2 (2013): 1-13. Print. Rebranding case study the pitfalls of undertaking rebranding strategies in the consumer domain.. London: Datamonitor, 2009. Print. "Sears CEO Criticized for Lack of Growth Strategy.." Knight Ridder/Tribune Business News [New York] 7 Apr. 2002: 14. Print. Smith, Wendell R.. "Product Differentiation and Market Segmentation as Alternative Marketing Strategies." Journal of Marketing 21.1 (1956): 3. Print. Solomon, Michael R.. Conquering consumerspace marketing strategies for a branded world. New York: AMACOM, 2003. Print. Vinjamuri, David. "Can Sears Be Saved? Four Strategies For Success." Forbes. Forbes Magazine, 10 Jan. 2012. Web. 13 Apr. 2014. . Read More