BRAND EXTENSION
BRAND BACKGROUND -
Sears Proprietary Brand since 1927 Lawn and Garden since 1948 Other brands- Kenmore, DieHard, Lands' End Merged with Kmart in 2005 Relationships with NASCAR & DIY Network
BRAND ARCHITECTURE SEARS
KENMORE
TOOLS
CRAFTSMAN LAWN & GARDEN
DIEHARD
GEAR
LANDS’ END
TOOLS & EQUIPMENT
GEAR
LAWN & GARDEN
CURRENT PROBLEM "Today, the Craftsman Brand is a de-focused warranty, price point, and quality-level nightmare...What's a Craftsman? An expensive, cheap, lifetime-not lifetime warranty, hand-tool, garage door opener, garden tractor, vice, toolbox, and now gadget making Brand." -Studio X-Temporal, Global Brand Consulting
CONSIDERATIONS -
Other Sears Brands Tools & Equipment vs. Lawn & Garden Future of the industry
GOAL
Refocus the Craftsman brand and position it to take a leadership role in the Home & Garden industry.
INDUSTRY -
Green building sector outperforming overall building and home improvement markets
-
Increasing government regulations and incentives continue to be a major driver
-
Greater consumer awareness of green building and desire to reduce energy costs
INDUSTRY Green Homes Built in the US 60,000 45,000 30,000 15,000 0 2000
2004
2008
* National Association of Home Builders
COMPOSTING -
Situated between Lawn & Garden and sustainable products
-
Not jumping into housing market Many practical uses A gardening tool
ECO-QUIPMENT SEARS
KENMORE
TOOLS
CRAFTSMAN LAWN & GARDEN
DIEHARD
GEAR
LANDS’ END
ECO-QUIPMENT
ECO-QUIPMENT SEARS
KENMORE
TOOLS
CRAFTSMAN LAWN & GARDEN
DIEHARD
GEAR
LANDS’ END
ECO-QUIPMENT
BRAND VISION -
Entering sustainability segment Opportunity for product line extension Creating new segment
BRAND VISION -
Message Current Positioning Future Promise Core value
PRIMARY TARGET -
AGE: 45-64
-
TARGET SIZE: 21.2 million people
Own Craftsman Lawn & Garden tools AND agree with at least two of the following statements: I make a conscious effort to recycle. Packaging for products should be recycled. People have a duty to recycle.
-
175% more likely than general pop to have purchased hardware/ home improvement items at Sears in last 3 months
SECONDARY TARGET -
Growing trend Younger, ethnically diverse Pull into Sears Lack loyalty to specific channel
ENTHUSIASTS I attend every lawn and garden show that I can I am a member of a lawn/gardening club I regularly read lawn and gardening websites and magazines I am a member of an online lawn/gardening chat site or forum I am passionate about tending my lawn and garden
ENTHUSIASTS -
Environmental concerns Cost-effective Spend more on products Willing to shop at Sears
PACKAGING
RETAIL PRICE: $200
GETTING IT OFF SHELVES -
Boomers: in-store communications Younger: online presence Optimistic, health-focused messaging
IN SEARS STORES -
Educational materials Displayed in current Lawn & Garden section Floor model Employee sales training
ONLINE -
Purchasing option, FREE SHIPPING! How-to guides Gardening information and advice Composting FAQs Other services: clubs, forums, etc.
ADDED BRAND VALUE ECO-QUIPMENT Flexibility Unity
Credibility Quality
THE NUMBERS # of People % Spending > $300/yr Population 58% of Hobbyists are Eco-Gardners 4,180,640 0.2 836,128 57% of Enthusiasts are Eco-Gardners 3,323,100 0.4 1,329,240 Total % of Pop purchases # of People Probability Number 10% 216,537 0.45 97,442 20% 433,074 0.3 129,922 30% 649,610 0.12 77,953 40% 866,147 0.08 69,292 50% 1,082,684 0.05 54,134 Total 428,743 Average
85,749
#Units Sold X Cont/Unit #Units Sold X Margin/Unit
7,803,159 9,346,594
Difference
1,543,435
ROI
0.20
2,165,368 Variable Costs Plastic Promo/Advert Miscellaneous Green Giving
46 3,944,434 12 1,028,983 20 1,714,971 10 857,486
Fixed Costs General and Admin Depreciation Labor
20,000 24,000 200,000
20,000 24,000 200,000 7,789,874
Selling Price Cont. per Unit Margin
200 91 109
Total
MARKET SHARE OBJ
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$180 MILLION Market 10% Market Share
THE FUTURE
-
Potential product line extensions Tools for sustainable building
Questions?