Page 1 of 11

Kmart Marketing Strategy

Continues for 10 more pages »
Read full document

Kmart Marketing Strategy

  • By
  • December 6, 2010
  • 1449 Words
  • 5 Views
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...