Sears downfall:
Consumers subconsciously choose brands based on touch points and competition. In my opinion, Sears’s inability to understand consumer decisions, invest in consumer-driven marketing and maintain customer loyalty all contributed to the company’s demise. In addition, Sears’s poor treatment of employees and failure to pay off debt loans had a detrimental effect on the company’s brand image and company morale. As a result, the company was forced to announce liquidation and close more than 74 stores in areas with populations of 400,000 people.
Sears made the error of developing a marketing program catered towards satisfying the “average consumer”. Each market is composed of submarkets with their own characteristics and preferences. As a result, Sears could have adapted its products and services to meet the needs of the individual consumer. For example, Sears’s clothing apparel targets individuals who receive a fairly low income. This includes individuals between the ages of 10 to 35. In regards to clothes, Sears could have specifically targeted a smaller age group, possibly between the ages of 20 to 25 years old. Successful companies who employ this strategy include H&M and Forever 21.
Moreover, if Sears conducted extensive marketing research on the effectiveness of its advertising, it could have shifted from a traditional marketing strategy to an all-digital marketing strategy. It could have invested in social media marketing, advertised through YouTube videos, and focused on selling more products by telephone.
From Commerce 101 class, I also learned that how the employee perceives both the brand image and the products associated with it are extremely important. After much research, I discovered that the majority of the consumers perceived Sears as a big but old hardware store that produced low-quality goods. Moreover, it targeted individuals who received a fairly low income. In order to increase sales and prevent liquidation, Sears should have reinvigorated and revitalized its brand image.
Moreover, Sears should implement performance management strategies such as
performance reviews to understand why employees believe they are being treated poorly. In addition, Sears should have more than one point of disparity to differentiate itself from other competitors.
Ultimately, Sears made strategic business errors that led to its demise. If I choose to pursue a career in entrepreneurship, I will learn from Sears mistakes. and make careful decisions in the future.
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References:
15 Marketing Strategies That Inspire Strategic Thinkers | Inc.com. (n.d.). Retrieved from https://www.inc.com/murray-newlands/15-marketing-strategies-that-inspire-strategic-thinkers.html
The consumer decision journey | McKinsey & Company. (2009, June 29). Retrieved from https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-consumer-decision-journey
Court OK’s Sears Canada liquidation, all stores to close – Business – CBC News. (n.d.). Retrieved from http://www.cbc.ca/news/business/sears-closures-impact-small-communities-1.4353011
Sears reports wider fourth-quarter loss | Toronto Star. (n.d.). Retrieved from https://www.thestar.com/business/2017/03/09/sears-reports-wider-fourth-quarter-loss.html
Sears Worst Practice Core Business Strategy. (n.d.). Retrieved from https://www.thebalance.com/sears-worst-practice-core-business-strategy-2891858
Why Sears is failing and closing stores – Business Insider. (n.d.). Retrieved from http://www.businessinsider.com/sears-failing-stores-closing-edward-lampert-bankruptcy-chances-2017-1