Kmart Marketing Strategy

Continues for 10 more pages »
Read full document

Kmart Marketing Strategy

By | December 2010
Page 1 of 11
Agenda
• • • • • • • • • • Organizational Overview Industry Snapshot Competitor Analysis Financial Analysis SWOT Overview Current Strategy Strategic Issues Recommended Solutions Implementation/Justification Recommendation Recap

Organizational Overview
• • • • • • Founded by Sebastian S. Kresge in 1962 Number 3 discount retailer in the U.S. Operates 1,479 stores in 49 states Maintains 3 retail concepts Filed bankruptcy in 2002 Merged with Sears, Roebuck & Co. in March 2005

Industry Analysis Key Success Factors
• Advanced technology that enables

Technology

merchandising efficiency

Distribution

• Efficient Supply Chain Management • High return on inventory investment/high inventory turnover • Good working relationship with suppliers • Low distribution costs • Low replenishment cycle times • Ability to predict consumer demand • Courteous customer service • Breadth of product line and brand selection • High sales per square footage (store productivity) • Effective merchandising strategies • Ability to meet local preferences and price sensitivities • Overall low costs and underpricing strategies • Convenient store locations

Marketing

Skills & Capability

Other types

Kmart’s Microenvironment
Economic Conditions

Rivals

Substitute Products

Technology

Legislation/ Regulations

Suppliers

Buyers

New Entrants

Society Values/ Lifestyles

Demographics

Disposable Personal Income
Retail Sales Approaching 41.5% in 2005

Consumer Confidence is beginning to rise

Competitive Analysis
High

Low
Variety

High

Low Price

Competitive Analysis
Expensive

Low
Variety

High

Inexpensive Price

Product Line Strategy
A time phased plan for introducing products, each product targeting a specific target market How Targets: African American Hispanic Asian American

Use unique strategic brand alliances Advantages and licensing agreements that are culturally specific to our target market

Favorable...

Rate this document

What do you think about the quality of this document?

Share this document

Let your classmates know about this document and more at Studymode.com