Urban Outfitters Continuing Case Study: Marketing a business Deborah Riley
Dr. John H. Carter
BUS100 – Spring/2010
May 30, 2010
Question #1 - Explain why Sears or Wal-mart cannot effectively create a trendy counterculture image.
In my opinion I don’t think that Wal-mart would be able to create a trendy counterculture because it sales clothes at a lower price. Trendy clothes would not be effective for them because the cost associated with trendy clothes would not be profitable. Wal-mart shoppers are looking for a bargain when they go shopping at their stores. Wal-mart is known for their lowering prices on items in their stores called the Roll Back Price. “Wal-Mart said last week that it is stepping up price cuts, although it wouldn't specify how much it is boosting its typical weekly discounts designed to lure customers.” (Anderson, 2010, para 2). They also buy their merchandise in bulk as oppose to small quantities. While Urban Outfitters buy their merchandise in smaller quantities and there items are priced higher which is why they can create a trendy counterculture. When speaking of Sears they are not on the same line as Wal-mart considering they do not offer their customers price cuts such as roll back prices. But they do buy their merchandise in larger quantities then Urban Outfitters. Sears prices are high when compared to Wal-mart but they offer designer labels that are not offered at Wal-mart. But they also mass produce their items and buy in bulk. The items they sell in their stores are geared towards all customers and not one specific customer. I don’t think that they would be able to sale merchandise that’s for a specific group of people and continue to make profits. Competition is a huge problem for businesses and retail stores for the most part are dealing with this issue during the recession period. Sears has to try and compete with JcPenny’s and Khols and as a result of having to compete they have...
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