Sears Marketing Problem Essay
History of Sears, Roebuck and Co.
I would like you to use your imagination for just one moment. Picture America in the late 1880s. At that time, the states were only 38 in number. Their total population was 58 million and about 65 percent of these people lived in rural areas. Very few cities had 200,000 or more residents. And the yearly national income was about $10 billion. This was the scene when, one day in 1886, a Chicago jewelry company shipped some watches to a jeweler in a Minnesota hamlet. This brought about the name of a man that would go down in history.
Richard Sears was an agent of the Minneapolis and St. Louis railway station in North Redwood, Minnesota. Sears job as station agent left …show more content…
After that, Sears saw the opportunity to sell other things to people besides watches. They started to sell flour, especially to farmers, because they bought in bulk and were able to sell it cheaper. They became known with the motto "Shop at Sears and Save." "In 1895 was producing a 532-page catalog with many other items. This book offered shoes, women's garments and millinery, wagons, fishing tackle, stoves, furniture, china, musical instruments, saddles, firearms, buggies, bicycles, baby carriages and glassware, in addition to watches and jewelry." Since then they have added many new products including an entire clothing line, Craftsman tools (Private branding), appliances featuring Kenmore, computer and office supplies, and lawn and garden mowers and utilities.
What Sears has Done
I believe that Sears has re-addressed its target market to increase penetration in the market and expand in new markets. Sears has refocused its market concept. In the past Sears was where your grandparents shopped for quality product. As they sat back and enjoyed the comfort of their brand name and reaped the benefits, other companies sliced away at the market with new concepts in advertising until about five years ago, when Sears woke up to a lagging profit margin. Sears began a recovery to regain market shares lost through the last couple of years. To do this, they gathered