Kmart – Keys to Success Presented by: Robert Shaw Yasmin Anandwala Eric Findley Ardita Kalaja Winfield Pollidore Sanjay MengiSlide 2
Kmart - Introduction Yasmin AnandwalaSlide 3
Kmart – Keys to Success Industrial Analysis Kmart Profile SWOT (Strength, Weakness, Opportunity, and Threat) Kmart versus Wal-Mart Survey 3 Marketing Keys to Success Leverage Urban Minority Market Strengths Implement CRM Strategy Improve Supply Chain Management - IT ConclusionSlide 4
Kmart - Analysis Robert Shaw Yasmin AnandwalaSlide 5
Kmart\'s Strength Clothing lines Exclusive Joe Boxer product offering Route 66 Carry an assortment of items effortlessly Martha Stewarts items Home Goods Store Locations Urban territories Stores situated in effectively available regions Market in the Urban ranges viably Able to get an extensive multi-social buyer assemble Offered lay away arrangement for individuals who need to pay on portionsSlide 6
Kmart\'s Weakness Chapter 11 Bankruptcy Protection Low advertising spending plan Many low benefit rural stores Ineffective Supply Chain Management Negative attention Marketed suburbia like the urban zones Did not change the picture of the organization as the requests of the buyers changed Did not offer assortment that spoke to the white collar classSlide 7
Kmart\'s Opportunities Re-position store Adopt Urban Strategy Integrate Supply Chain Management Sell to Carrefour (Paris based retailer) Need to change the antagonistic picture of K-Mart Improve the product offering conveyed to keep the working class Design the store to be more composed and alluringSlide 8
Kmart\'s Threats Wal-bazaar and Target Increasing Market Share Having to exchange organization Suppliers raising costs Profits declining Martha Stewart getting awful press Urban regions are turning out to be more rural like Youth\'s rejects K-Marts Urban techniqueSlide 9
K-Mart Opportunity Threat Matrix Probability of Occurrence 1 – Credit can be down appraised 2 – K-shop getting purchased 3 – Supplier raise costs 4 – Martha Stewart hauls outSlide 10
Market Share AnalysisSlide 11
Kmart opened 1962 (Originally Kressege) In 1987, 2,200 outlets Market share 34% In 1994, deals $34 billion Wal-Mart opened 1962 In 1987, 980 outlets Market share 22% In 1994 $82 billion in deals Kmart versus Wal-MartSlide 12
Retail Preference Survey Selection Criteria 15 Female and 5 Male Wayne County zone Average age more than 35 All were visit customersSlide 13
Survey Results 80% individuals favored Kmart Favorable area 100% went by store in most recent six months half would not give it a second thought if Kmart left business 100% never went to siteSlide 14
Marketing Key #1 Leverage Urban Minority Market Strengths Eric FindleySlide 15
Facts Kmart most grounded areas are it\'s urban groups (far from Target and Wal-Mart) where Kmart is extraordinarily famous among (multicultural populace) African Americans and Hispanic clients Multicultural buyers speak to 39% of the about 30 million individuals who shop at Kmart every week. African Americans and Hispanics alone record for 32% of Kmart\'s customers.Slide 16
Kmart Market Profile by RaceSlide 17
Demographic Trends Hispanic populace going to increment at a speedier rate than whatever remains of the country Multicultural buyers control $1.2 trillion in joint-obtaining power at a market section development rate seven circumstances quicker than the overall public Urban African-American people group\'s $560 billion in purchasing power Urban youth purchaser has turned out to be enormous business as a result of their purchasing power ($300 billion) and impact over the standard shopper advertiseSlide 18
Market Trends and Attitudes Shoppers are progressively bypassing its maturing shopping center stores to shop at more up to date urban and rural strip shopping centers Emerging pattern of retail advancement in inward city regions around the United StatesSlide 19
Market Trends and Attitudes Urban adolescents: Tend to be individualistic, they don\'t react to anything outside of their existence Don\'t think about the present state of affairs Urban youth buyers: have a tendency to be pattern and style cognizantSlide 20
Market Trends and Attitudes "What works in urban communities, works in the suburbs, however not bad habit versa," Generation X & Y affected by urban culture (70% of hip-bounce music sold to whites living in rural areas) and mold that describes its character Minority gathers a year ago represented 27.3 percent of the rural populace in the 102 biggest metropolitan territoriesSlide 21
Urban Minority Strategy Recommendation Kmart create specialty showcasing procedure to focus on Urban and Minority Gen X and Gen Y Market Make Kmart the "most sizzling spot to shop" & "in vogue" place to shop Eventually technique will infiltrate Suburbia Partner with rap/music craftsman and expert game players to embrace and advance shopping at Kmart Youth advertise reacts well to good examples and VIPs (Master P and Converse) By catching the urban market you can catch the standard marketSlide 22
Popular Apparel Urban Brands Kmart would do best to comprehend and elevate brands like those spoke to by Urban Minorities Popular Urban Brands Phat Farm FUBU Rocawear Ecko Sean JohnSlide 23
Other Popular Apparel Urban Brands Other Popular Brands Levis Nike Kangol Kenneth Cole RockportSlide 24
Urban Minority Strategy Recommendation In comprehension and focusing on urban minorities: Kmart needs to tailor it\'s items to every group\'s ethnic blend Give store supervisors self-sufficiency to stock that suits their client\'s tastes since urban patterns change rapidly To remain famous Kmart might need to change it\'s picture from discounter to reflect premium discounter (Urban reduced Marshall Fields)Slide 25
Marketing Key #2 Implement CRM Strategy Ardita Kalaja Winfield PollidoreSlide 26
K-Mart CRM What is CRM? Client Relationship Management CRM Process Discover Assemble Deliver Does association bode well?Slide 27
K-Mart CRMSlide 28
K-Mart CRM How can CRM help K-Mart Refine the Customer Focus (Positioning) Create an incentive for the Customer Enhanced Automated Checkout Personal Online Shopping (EchoMail) Re-Focus the Retailer approach Targeted Incentives versus Noticeable IncentivesSlide 29
CRM-Creating an incentive for the Customer Recognizing the significance of making one of a kind approaches to amuse the clients -Self-Service Technology (NCR Self-Checkout, Pre-Cashier Checkout) - Bilingual Capability Meets Needs of More ShoppersSlide 30
Personal Online Shopping (EchoMail) Link the Blue Light Special to In Store Incentives Personalization apparatuses help clients with buys and let dealers strategically pitch The item monitors clients\' activities after some time, constructing a more extensive base of learning about the individual and driving proactive promoting, for example, inciting new offers at the webpage or activating E-mail publicizingSlide 31
K-Mart CRM-Recommendations K-Mart ought to perceive the significance of making extraordinary approaches to enchant the clients Targeted Incentives versus Noticeable Incentives Effective approaches to customize Online Shopping. Recognize each non-esteem included cost from every component of its supplySlide 32
Marketing Key #3 Improve IT Supply Chain Management Sanjay MengiSlide 33
K Mart – IT Incompetence Five CIOs in seven years (One stage forward, another progression back) Incompetence SCM innovation in retail industry In 2001, $195 million discount in H/W & S/W Real time information not imparted to providersSlide 34
Wal Mart – IT Facts Information innovation matters—when it conveys "everyday low prices" Mastery of innovation by regarding IT as center competency Just-in-time inventories - Best SCM in retail industry Continuous change in innovation by smart IT spending Over 5 Year term put over $600 million in IT Running innovation with a dreamSlide 35
Wal-Mart IT Integration Real time information and mission-basic data imparted to providers overall Wal-Mart utilize broadcast communications to interface specifically from its stores to its focal PC framework and from that framework to its provider\'s PCs. This permits programmed reordering and better coordination Some 3,800 merchants now get every day deals information straightforwardly from Wal-Mart stores 1,500 have a similar choice and examination programming that Wal-Mart\'s ownSlide 36
Retailer Orders Distributor Orders Production Plan Trend of Weak Supply Chain Management Customer Demand Order Size TimeSlide 37
FINANCIAL SERVICES PARTNERS RETAIL PARTNERS CONSUMER CHANNEL MANAGERS BRICKS & MORTAR Catalogs INTERNET LAST POINT OF VALUE CREATION CONSUMER DELIVERY FOCUSED PURCHASING IS CORE COMPENTENSE MANAGES THE DELIVERY MOMENT OF TRUTH CONSUMER PRODUCTS GOODS PARTNERS BRAND/CATEGORY MANAGERS FOR COMMUNITY USUALLY BOTH MANUFACTURER & SERVICE PROVIDER PURCHASING IS CORE COMPETENSE PROVIDES MARKETING MOMENTS OF TRUTH BRAND/CATEGORY EQUITY FOCUSED DISCRETE MANUFACTURING PARTNERS SPECIFIC PRODUCT MANAGER FOR COMMUNITY PRIMARY MANUFACTURER OF SPECIFIC PRODUCT EQUITY FOCUSED PURCHASING IS INTEGRATED/DRIVEN BY MANUFACTURING DIRECTLY SUPPORT CPG PARTNERS PROVIDES PRODUCT MOMENTS OF TRUTH PROCESS MANUFACTURING PARTNERS SPCEIFIC PRODUCT MANAGER FOR COMMUNITY PRIMARY MANUFACTURER OF SPECIFIC PRODUCT EQUITY FOCUSED PURCHASING IS INTEGRATED/DRIVEN BY MANUFACTURING DIRECTLY SUPPORTS DISCRETE PARTNERS PROVIDES SUPPLY MOMENTS OF TRUTH RAW MATERIALS CONSUMERS TRANSPORTATION/LOGISTICS PARTNERS Local and Global Optimization in Supply ChainSlide 38
Push-Pull Supply Chains PUSH STRATEGY PULL STRATEGY Push-Pull BoundarySlide 39
IT Recommendations Involve providers amid framework advancement and upgrade Share On-line information with providers Engage best CIO in retail industry and sign long haul get A
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