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

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