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K-Mart Analysis. Attention Kmart executives: reality check on aisle five
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Submitted by ritedere on October 10, 2005
Category: Business
Words: 1458 | Pages: 6
Views: 879
Popularity Rank: 7,837
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Attention Kmart executives: reality check on aisle five please. The former "Big Three" of the discount stores is now seemingly becoming the "Big Two," as Target and Wal-Mart have surpassed Kmart in terms of growth rate and public perception. What happened to the at one time leader of discounters? This paper will point out not only what Kmart has done wrong in recent years, but also what Target and Wal-Mart have done right in the meanwhile to become the more dominant names in the discount store business. Emphasis will be placed on bad marketing strategies, questionable management decisions, and an outdated supply-chain system. Suggestions will be made as to how Kmart could rebound from this current state of affairs in order to remain a part of the "Big Three."
One of Kmart's biggest problems of late has been it's mundane and ineffective advertising promotions. Target has seen huge success as of late with it's mixture of vibrant colors and exciting music featured in it's ads, while Wal-Mart has maintained it's "everyday low-price" campaign that continues to resonate with consumers. Kmart is trying, albeit unsuccessfully so far, to reintroduce its "Blue Light Specials" promotion that was retired in 1991 after a successful twenty-six year run. (Muller, 50) Kmart failed to include the younger generations in its target market for this campaign, as they're likely too young to be able to conjure up any sense of nostalgia that its obvious Kmart hopes to invoke. Kmart should not be afraid to try something new, something different. Another major problem regarding this promotion involved the lack of participation from various individual Kmart stores. A Kmart in Chicago had a banner proclaiming "You are now entering the BlueLight Zone," however; there was no BlueLight Special to be seen. (Zimmerman, B2) Spending $25 million on an advertising campaign for a promotion that's not even available in certain stores is a waste of money and more...
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