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| February 2002 | |
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Take A Lesson From KMart
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How An Advertising Blunder Helps Knock out a Corporation
Trapped between Wal Mart - the low price leader - and Target - mass with class - Kmart has been struggling with their persona. Their 2001 strategy was to turn KMart into a low price, every day destination. Wall Street liked it, as initial stock prices went up. But, consumers dissented. By October, according to DSN Retailing Today, total sales dropped 5%. Why? To become the low price destination, Kmart cut back in advertising as much as 50% in September and October. As it turns out, it was those Sunday circulars that brought in the customers. As KMart cut back, the competition brilliantly pumped up their advertising. Once the ad budget was reinstated, market share had evaporated. Now, Kmart will need to spend incremental dollars to dislodge their lost market points away from their competitors - all while in Chapter 11 Bankruptcy. As it's been demonstrated over and over again, keep your advertising budget stable during a downturn. And, if your competition cuts their ads, you can pick up their market share at a discount price.
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| Upcoming Events... |
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Tradeshow and tradeshow March 5-8, we will be in Las Vegas at ISC West, holding individual editor interviews for Kalatel, RemoteVideo and Zebra Technologies. March 17-21, we will be in Chicago at the Plant Engineering Show, holding one-on-one press interviews for nMetric. |
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Copyright (c) 2002 Brigham
Scully
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