KMART

Retail Business Analysis Maria Carrillo BUS620: Managerial Marketing Dr. Lee Meadows August 29th, 2011

KMART Retail Business Analysis

All organization need to invest in market research to be at the forefront of its business. The marketing effort must take into account market segmentation to build a strong marketing department. These concepts apply to the retail industry, which have evolved into a very competitive industry for which Kmart is a discount retailer pioneer. Kmart is the third largest retailer in the US even after filing chapter 11, that allows them to re-structure. For Kmart, efficiency is the key concept on cost with the likes of Walmart and Target. Therefore, Kmart needed to change their marketing strategy that failed their customers before. Kmart new strategy is to continue their partnership with brandnames that appeal to their new target customers (Latinos and AfricanAmericans). Using market segmentation which is the process by which a market is divided into distinct subsets of customers with similar needs (Mullins and Walker (2010), p. 180). Segmentation was a key factor in Kmart's failure because their inability to decide which market to be in. Marketers representing Kmart need to find an identity that will satisfy their customers. Some of the brand-names they carried are targeted towards inner-city minorities; however, Martha Stewart's fans are part of a different market. Marketers from Kmart need to position itself as a low-price retailer for urban multicultural communities to create an identity with the customers.

KMART The Latino / African-American market segment can become Kmart's specific market and it can create a niche for its organization to serve a community that is somehow neglected by its retail competitors. Focusing on the segmentation strategy of this target market can help Kmart to create customer satisfaction with this segment of the market. It is a given fact that unless Kmart develops a new marketing strategy, and defines an specific market; the future does not look good. The organization was given time to re-structure, but unless management makes an investment of time and resources to discover an optimal target, positioning, and most important customer satisfaction to create a reason for customers to stay with Kmart and not with the competition, the industry pioneer will not prevail in the retail business. According to Schroeder (2003) the strategy for operations function must be limited to the business strategy and other functional strategies leading to a consistent pattern of decisions (p. 13). Kmart must follow this recommendation with their marketing strategies. Kmart need to concentrate in a selected market segment and deliver satisfaction to the group needs and wants. Ultimately the goal of any organization is to have long term customers. This retailer must meet customers expectations to create loyalty and repeat business. I believe that Kmart needs to deliver a unique shopping experience to the selected market segment if the want to stay in business.

KMART Reference

Huston, L., Lee, H., Shewchuck, C., Welsh, R. (2003) Kmart: A Strategy of Survival, Economics of Competitive Strategy. Mullins, J. W., Walker, Jr., O. C. (2010). Marketing management: A strategic decision making approach (7th ed.). Hill Irwin. Schroeder, J. E. (2003), Consumption, Gender and Identity,Consumption Markets & Culture. Boston: McGraw-