Story Transcript
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
December 17, 2020
Daniel Webster, Mafer Bencomo, Nina Prodanovic, Sam Grimm
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
OVERVIEW ASSUMPTIONS TARGET MARKET FINDINGS STRATEGY 3
STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
1886 1. “Sears History – 1890’s,” Sears Archives, n.d.
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
PIONEER of the DEPARTMENT STORE 1. “Sears History – 1890’s,” Sears Archives, n.d. 2. Howard,V. Smithsonianmag.com, 2017
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
EVERYTHING for
EVERYONE
1. “Sears History – 1890’s,” Sears Archives, n.d.
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
WHAT HAPPENED?
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
COMPETITORS TOOK OVER THE MARKET 3. Delventhal, S. Investopedia.com, 2020 4. “Annual Report,” Transformco.com, 2018.
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
5. Dayen, David. Prospect.org, 2018 6. Celarier, Michelle. Institutionalinvestor.com, 2018.
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
0.12% MARKET SHARE
7. O’Connell, L. Statista.com, 2019 8. “The future of retail in the US: Industry trends and market trends,” Businessinsider.com, 2020
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
FILING CHAPTER 11 BANKRUPTCY 3. Delventhal, S. Investopedia.com, 2020
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
182 ONLY OPERATING
STORES
9. Peterson, H. Businessinsider.com, 2020
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
BUSINESS PROBLEM
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
Drastic market share decrease and massive closure of physical shops [stores and outlets], edging Sears to chapter 11 bankruptcy.
7. O’Connell, L. Statista.com, 2019 8. “The future of retail in the US: Industry trends and market trends,” Businessinsider.com, 2020
3. Delventhal, S. Investopedia.com, 2020 9. Peterson, H. Businessinsider.com, 2020
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
HUMAN PROBLEM
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
Sears has a disconnect with its consumers due to the lack of authenticity, purpose, and status.
10. Goodfellow, P. Forbes.com, 2013 11. “Sears Online Survey 2020,” Ringling College of Art & Design, 2020
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
DISCONNECT Is Sears even OPEN?
10. Goodfellow, P. Forbes.com, 2013 11. “Sears Online Survey 2020,” Ringling College of Art & Design, 2020
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
q q 12. Isidore, C. “Sears’ survival is in doubt,” CNN.com, 2020
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LACK OF PURPOSE NOTHING MORE than PRODUCTS
11. “Sears Online Survey 2020,” Ringling College of Art & Design, 2020 13. “Store Observation,” Sears Department Store PA, 2020
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
13. “Store Observation,” Sears Department Store PA, 2020
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
INAUTHENTICITY ROBOT MESSAGING
10. Goodfellow, P. Forbes.com, 2013
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14. “Sears,” Instagram.com/sears/, 2020
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
A POSITIVE DIGITAL PRESENCE IS ESSENTIAL 23
STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
ASSUMPTION #1
COMMUNICATION CHANNELS ARE FAILING 14. “Sears,” Instagram.com/sears/, 2020 15. “Sears,” Facebook.com/sears/, 2020
16. “Sears,” Twitter.com/sears/, 2020
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
“Bummer they are gone” “It still exists?” 11. “Sears Online Survey 2020,” Ringling College of Art & Design, 2020 14. “Sears,” Instagram.com/sears/, 2020
15. “Sears,” Facebook.com/sears/, 2020 16. “Sears,” Twitter.com/sears/, 2020
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
ASSUMPTION #2
WALMART & AMAZON AS #1 COMPETITORS 3. Delventhal, S. Investopedia.com, 2020 4. “Annual Report,” Transformco.com, 2018.
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
HOME DEPOT & LOWES 3. Delventhal, S. Investopedia.com, 2020 4. “Annual Report,” Transformco.com, 2018.
11. “Sears Online Survey 2020,” Ringling College of Art & Design, 2020
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
ASSUMPTION #3
TOO MANY TARGET MARKETS 28
STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
FACT
17. “Sears Bankruptcy: Outdated Model,” Mintel.com, 2019
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FOCUS ON SELECT TARGET AUDIENCES 30
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EXISTING HOME OWNER PRIMARY AUDIENCE
q q
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
AGES 35 – 45 FAMILY ORIENTED QUALITY SEEKERS “DREAM HOME” MAKERS
11. “Sears Online Survey 2020,” Ringling College of Art & Design, 2020 13. “Store Observation,” Sears Department Store PA, 2020
20. “Store Observation,” Sears Department Store FL, 2020 21. “Sears Interview: Hunt, B,” Interviews, 2020
18. “Shop: Appliances, Tools, Clothing, Mattresses & More,” Prospect.org, 2020 19. “Sears.com Revenue,” Ecommercedb.com, 2020
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
Rachel & Patrick
Married Enjoy suburban life & personal space Prioritize in-person shopping Research products for the best quality
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HOME IMPROVER SECONDARY AUDIENCE
q q
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW 11. “Sears Online Survey 2020,” Ringling College of Art & Design, 2020 13. “Store Observation,” Sears Department Store PA, 2020 23. “Sears Interview: Wiley, L. & Wiley, P.” Interview, 2020
AGES 50 – 65 GOAL ORIENTED TOOLS FOR TOYS REMODELS FOR FUN
18. “Shop: Appliances, Tools, Clothing, Mattresses & More,” Prospect.org, 2020 19. “Sears.com Revenue,” Ecommercedb.com, 2020
20. “Store Observation,” Sears Department Store FL, 2020 22. “Sears Interview: Grimm, W & Grimm, N.” Interview, 2020
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Bill
Retired Enjoys his home improvement projects Researches tools online & in-person Always looking for a good deal
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FIRST TIME HOMEOWNER TERTIARY AUDIENCE
q q
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW 11. “Sears Online Survey 2020,” Ringling College of Art & Design, 2020 13. “Store Observation,” Sears Department Store PA, 2020
AGES 26 – 30 CAREER DRIVEN DISCOUNT SEEKERS MINIMALISTS
18. “Shop: Appliances, Tools, Clothing, Mattresses & More,” Prospect.org, 2020 19. “Sears.com Revenue,” Ecommercedb.com, 2020
20. “Store Observation,” Sears Department Store FL, 2020 24. “Sears Interview: Woods, J” Interview, 2020
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
Daniel & Chelsey Life Partners Enjoy the busy city life Hold social gatherings often Best quality for the lowest price
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ALL IN SEARCH FOR TOOLS & APPLIANCES q q Cullen, R. Mintel.com, 2020 25.
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SURVEY INTERVIEWS IN-STORE OBSERVATIONS
11. “Sears Online Survey 2020,” Ringling College of Art & Design, 2020 13. “Store Observation,” Sears Department Store PA, 2020 22. “Sears Interview: Grimm, W & Grimm, N.” Interview, 2020
18. “Shop: Appliances, Tools, Clothing, Mattresses & More,” Prospect.org, 2020 19. “Sears.com Revenue,” Ecommercedb.com, 2020 23. “Sears Interview: Wiley, L. & Wiley, P.” Interview, 2020
20. “Store Observation,” Sears Department Store FL, 2020 21. “Sears Interview: Hunt, B,” Interviews, 2020 24. “Sears Interview: Woods, J” Interview, 2020
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
SEARS IS ASSOCIATED WITH
TOOLS APPLIANCES CLOTHES 11. “Sears Online Survey 2020,” Ringling College of Art & Design, 2020 22. “Sears Interview: Grimm, W & Grimm, N.” Interview, 2020
23. “Sears Interview: Wiley, L. & Wiley, P.” Interview, 2020
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
CUSTOMERS WANT
RELIABILITY AFFORDABILITY CONVENIENCE 11. “Sears Online Survey 2020,” Ringling College of Art & Design, 2020
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
LAST PURCHASE WITH SEARS WAS 2.4%
9.8%
87.8%
11. “Sears Online Survey 2020,” Ringling College of Art & Design, 2020.
2+ YEARS AGO 1 YEAR AGO 6 MONTHS AGO 44
STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
CHALLENGE
Put Sears into the MINDS of the CONSUMER q q
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
STRATEGY
A HOME is something that YOU MAKE 46
STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
OBJECTIVE #1
Put Sears on the map, and increase public awareness of the brand and its purpose q q
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
DELIVERABLES
UPDATED DIGITAL PLATFORMS RELEASE THE CATALOG
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
KPI’S
3% Increase in monthly website traffic within the 1st quarter 2% purchase increase from social media platforms in 1 year 5% growth in revenue in 1 year q q
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q q
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
OBJECTIVE #2
Establish connections with consumers. 51
STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
DELIVERABLES
An interactive social media campaign Reply to consumers comments Use consumer input for campaign
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KPI’S
Increase customer engagement by 3% in 1 year. Gain at least 20,000 followers in 1 year. Gain 2% positive feedback from consumers within the year. q q
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Put Sears into the MINDS of the CONSUMER q q
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STRATEGY FINDINGS TARGET MARKET ASSUMPTIONS OVERVIEW
Position themselves as an appliance & tool retailer q q
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HOME is something YOU MAKE
q q
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THANK YOU
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STRATEGY FINDINGS TARGET MARKET ASSESSMENT OVERVIEW
WORK CITED 1. ”Sears History - 1890s.” (n.d) Sears Archives. Retrieved September 28, 2020. http:// www.searsarchives.com/history/history1890s.htm 2. Howard, V. (2017, Jul 25).“The Rise and Fall of Sears.” Smithsoniamag.com. Re trieved September 28, 2020, https://www.smithsonianmag.com/history/rise-and fall-sears-180964181/ 3. Delventhal, S. (2020, Aug 28). “Who Killed Sears? Fifty Years on the Road to Ru in.”Retrieved September 28, 2020. https://www.investopedia.com/news/downfall of-sears/ 4. “Annual Report.” Sears Holdings Corporation. Corp. Retrieved September 28, 2020. https://transformco.com/docs/investor/SHC_2017_Form_10-K.pdf 5. Dayen, David. (2018, Oct 17). “How Sears Was Gutted By Its Own CEO.” The American Prospect. Retrieved September 29, 2020. https://prospect.org/econo my/sears-gutted-ceo/ 6. Celarier, Michelle. (2018, Dec 04). “Eddie Lampert Shattered Sears, Sullied His Reputation, and Lost Billions of Dollars. Or Did He?”. Institutional Investor. Re trieved September 28, 2020. www.institutionalinvestor.com/article/b1c33fqdn hf21s/Eddie-Lampert-Shat tered-Sears-Sullied-His-Reputation-and-Lost-Billions of-Dollars-Or-Did-He. 7. O’Connell, L. (2020, Jul 07). “Sears Holdings global sales 2005-2019.” Retrieved September 28, 2020. https://www.statista.com/statistics/292990/global-reve nue-of-sears-holdings/ 8. “The future of retail in the US: Industry trends and market trends.” EMarketer. (2020, Feb 24). Retrieved September 28, 2020. https://www.businessinsider.com/future of-retail-market-trends 9. Peterson, H. (2020, Aug 24). “More than 7,500 stores are closing in 2020 as the re tail apocalypse drags on. Here’s the full list.” Business Insider. Retrieved Septem ber 28, 2020. https://www.businessinsider.com/stores-closing-in-2020-list-2020-1 10. Goodfellow, P. (2013, Jan 22). “Even Sears Shoppers Don’t Care About Sear.” Re trieved September 29, 2020. https://www.forbes.com/sites/prosper now/2013/01/22/even-sears-shoppers-dont-care-about-sears/ 11. “Sears Online Survey 2020.” Ringling College of Art & Design. Survey. (2020, Nov 5-12). 12. Isidore, C. (2020, May 20). “Sears’ survival is in doubt.” Retrieved September 28, 2020. https://www.cnn.com/2020/05/20/business/sears-bankruptcy/index.html
13. Sears Department Store. (2020, Nov 8). “Store Observation.” 1067 W Baltimore Pike, Media, PA 19063, United States. Place. 14. “Sears.” Instagram page. Retrieved September 28, 2020. https://www.instagram. com/sears/ 15. “Sears.” Facebook page. Retrieved September 28, 2020. https://www.facebook. com/sears 16. “Sears.” Twitter page. Retrieved September 28, 2020. https://twitter.com/Sears 17. “Sears Bankruptcy: Outdated Model.” News, Mintel. Mintel. (4 Apr. 2019). Re trieved September 29, 2020. www. mintel.com/blog/retail-market-news/ sears-bankruptcy-outdated-model. 18. “Shop: Appliances, Tools, Clothing, Mattresses & More.” (17 Nov. 2020). Sears Store Page. Retrieved September 28, 2020. https://prospect.org/economy/sears gutted-ceo/ 19. “Sears.com Revenue.” EcommerceDB. (17 Nov. 2020). Retrieved September 28, 2020. https://ecommercedb.com/en/store/sears.com 20. “Store Observation.” Sears Outlet FL. (2020, Nov 7). 8333 Lockwood Ridge Rd, Sarasota, FL 34243, United States. Place. 7 November 2020. 21. “Interview: Hunt, B.” Interviews. 16 November 2020. 22. “Interview: William G. & William N.” Interview. 16 November 2020. 23. “Interview: Wiley, L. & Wiley, P.” Interview. 6 November 2020. 24. “Interview: Woods, J” Interview. 15 November 2020. 25. Cullen, R. (2020, Mar). “Major Household Appliances - US - March 2020.”. Mint el. Retrieved October 15, 2020. https://data-mintel-com.ringlingcollege.idm.oclc. org/databook/986892/
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