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Marketing Research of Sears
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Netra Shetty
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Marketing Research of Sears - April 8th, 2011

Sears, officially named Sears, Roebuck and Co., is an American chain of department stores which was founded by Richard Warren Sears and Alvah Curtis Roebuck in the late 19th century. Formerly a component of the Dow Jones Industrial Average, Sears[2] merged with Kmart in early 2005, creating the Sears Holdings Corporation.
From its mail order beginnings, the company grew to become the largest retailer in the United States by the mid-20th century, and its catalogs became famous. Competition and changes in the demographics of its customer base challenged the company after World War II as its rural and inner city strongholds shrank and the suburban markets grew. Eventually its catalog program was largely discontinued.Market Structure
This industry has seen very high growth relative to other industries in the past 10 to 15 years. With the rise of awareness of environmental issues and the trend towards "green living", this industry has risen very rapidly. at this point in 2009, bottled water is a large global business, and many countries are participating in bottled water production. The business is generally fairly concentrated in each country, although there are many smaller niche players such as Fiji Waters which often market brands from a particular source. Large players, however, dominate the business in developed countries. Many major beverage companies found this a natural brand extension of already successful beverage lines and they extended their brand into bottled water labels. Large players such as Nestle, Pepsi and Coca-Cola have all been highly successful in their marketing efforts.

U.S. consumers now drink more bottled water than any other beverage, except carbonated soft drinks. Since 1998, per capita consumption of carbonated soft drinks has fallen slightly, while bottled water consumption continues to set new records. From 1997 to 2005, per capita consumption of bottled water increased by 90 percent to 25.4 gallons—17 percent of nonalcoholic beverage consumption.


The four largest suppliers’ share of bottled water sales rose from 52 percent in 1997 to 63 percent in 2002, a 21-percent increase. Such a large increase in sales concentration occurred despite rapid demand growth, which can attract new suppliers and slow increases in concentration. In the poultry industry, for example, the four-firm concentration ratio rose by 17 percent from 1987 to 1992, while the hog slaughter concentration ratio increased by 43 percent. Over the same period, ERS’s food availability data, a proxy for consumption, show a 19-percent increase for poultry, compared with a 7-percent gain for pork.

Leveraged by their extensive bottling and distribution networks, Pepsi-Cola and Coca-Cola entered the bottled water industry in the mid- to late-1990s and quickly ranked among the top four suppliers of bottled water in the U.S. Both companies distribute their bottled water brands through the same channels that carry their soft drinks. The companies have also relied on their own brand-building capabilities. Pepsi introduced Aquafina in the mid-1990s and, by 1999, had become the fourth-largest supplier of bottled water with a 5.5-percent market share. In 1999, Coke introduced the Dasani brand, supported by the largest advertising budget in the bottled water industry. In 2004, shares of Pepsi and Coke reached 11.3 percent and 10 percent of the bottled water market, respectively. The other two leading suppliers of bottled water, European-based Nestlé and Groupe Danone, also continued to increase their U.S. market share by acquiring North American companies and constructing new plants in the United States.

Industry Definitions
Bottled water industry terms:

Artesian - water from a confined aquifer that has been tapped, with purification based on gravity
Fluoridated - water containing fluorine for health reasons
Ground - water from underground sources obtained by pressurized pumping, can be well water
Mineral - water with at least 250 parts per million total dissolved solids, obtained from underground springs
Purified - water deerived from deionization, distillation, deionization, and reverse osmosis processes
Sparkling - water in which carbon dioxide is added to create a carbonated effect
Spring - water obtained from underground formations in which the water flows to the surface

Market Metrics
U.S. Market


The U.S. is the world’s largest market for bottled water, estimated with annual consumption of more then 26 billion liters and average per person consumption of approximately 190 liters annually. The growth rate in bottled water sales in the U.S. has slowed somewhat from a rate of over 12% annually earlier in the decade, but may be still growing about 10% annually.

A significant driver of bottles water sales has been the "green" or environmental effect which has underscored the potential health benefits, as opposed to sugared soft drinks or other drinks. Artificially carbonated bottled water has also become trendy and popular in the U.S.

As indicated above, the industry has seen very high growth. In the chart below, data from the U.S. Department of Commerce indicates that in the latest period measured, 1997 to 2002, the number of firms in the U.S. bottled water industry had grown 84% in 5 years to 201 companies and the number of employees by 49%. Again, this is a relatively concentrated industry.
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Jitendra Mazee
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Re: Marketing Research of Sears - August 1st, 2016

Quote:
Originally Posted by netrashetty View Post
Sears, officially named Sears, Roebuck and Co., is an American chain of department stores which was founded by Richard Warren Sears and Alvah Curtis Roebuck in the late 19th century. Formerly a component of the Dow Jones Industrial Average, Sears[2] merged with Kmart in early 2005, creating the Sears Holdings Corporation.
From its mail order beginnings, the company grew to become the largest retailer in the United States by the mid-20th century, and its catalogs became famous. Competition and changes in the demographics of its customer base challenged the company after World War II as its rural and inner city strongholds shrank and the suburban markets grew. Eventually its catalog program was largely discontinued.Market Structure
This industry has seen very high growth relative to other industries in the past 10 to 15 years. With the rise of awareness of environmental issues and the trend towards "green living", this industry has risen very rapidly. at this point in 2009, bottled water is a large global business, and many countries are participating in bottled water production. The business is generally fairly concentrated in each country, although there are many smaller niche players such as Fiji Waters which often market brands from a particular source. Large players, however, dominate the business in developed countries. Many major beverage companies found this a natural brand extension of already successful beverage lines and they extended their brand into bottled water labels. Large players such as Nestle, Pepsi and Coca-Cola have all been highly successful in their marketing efforts.

U.S. consumers now drink more bottled water than any other beverage, except carbonated soft drinks. Since 1998, per capita consumption of carbonated soft drinks has fallen slightly, while bottled water consumption continues to set new records. From 1997 to 2005, per capita consumption of bottled water increased by 90 percent to 25.4 gallons—17 percent of nonalcoholic beverage consumption.


The four largest suppliers’ share of bottled water sales rose from 52 percent in 1997 to 63 percent in 2002, a 21-percent increase. Such a large increase in sales concentration occurred despite rapid demand growth, which can attract new suppliers and slow increases in concentration. In the poultry industry, for example, the four-firm concentration ratio rose by 17 percent from 1987 to 1992, while the hog slaughter concentration ratio increased by 43 percent. Over the same period, ERS’s food availability data, a proxy for consumption, show a 19-percent increase for poultry, compared with a 7-percent gain for pork.

Leveraged by their extensive bottling and distribution networks, Pepsi-Cola and Coca-Cola entered the bottled water industry in the mid- to late-1990s and quickly ranked among the top four suppliers of bottled water in the U.S. Both companies distribute their bottled water brands through the same channels that carry their soft drinks. The companies have also relied on their own brand-building capabilities. Pepsi introduced Aquafina in the mid-1990s and, by 1999, had become the fourth-largest supplier of bottled water with a 5.5-percent market share. In 1999, Coke introduced the Dasani brand, supported by the largest advertising budget in the bottled water industry. In 2004, shares of Pepsi and Coke reached 11.3 percent and 10 percent of the bottled water market, respectively. The other two leading suppliers of bottled water, European-based Nestlé and Groupe Danone, also continued to increase their U.S. market share by acquiring North American companies and constructing new plants in the United States.

Industry Definitions
Bottled water industry terms:

Artesian - water from a confined aquifer that has been tapped, with purification based on gravity
Fluoridated - water containing fluorine for health reasons
Ground - water from underground sources obtained by pressurized pumping, can be well water
Mineral - water with at least 250 parts per million total dissolved solids, obtained from underground springs
Purified - water deerived from deionization, distillation, deionization, and reverse osmosis processes
Sparkling - water in which carbon dioxide is added to create a carbonated effect
Spring - water obtained from underground formations in which the water flows to the surface

Market Metrics
U.S. Market


The U.S. is the world’s largest market for bottled water, estimated with annual consumption of more then 26 billion liters and average per person consumption of approximately 190 liters annually. The growth rate in bottled water sales in the U.S. has slowed somewhat from a rate of over 12% annually earlier in the decade, but may be still growing about 10% annually.

A significant driver of bottles water sales has been the "green" or environmental effect which has underscored the potential health benefits, as opposed to sugared soft drinks or other drinks. Artificially carbonated bottled water has also become trendy and popular in the U.S.

As indicated above, the industry has seen very high growth. In the chart below, data from the U.S. Department of Commerce indicates that in the latest period measured, 1997 to 2002, the number of firms in the U.S. bottled water industry had grown 84% in 5 years to 201 companies and the number of employees by 49%. Again, this is a relatively concentrated industry.
Hey netra, it is really nice to see that people like you are sharing such an important information and helping others. Well, i am also going to share some useful information on Sears which would be useful for many people and help them in their research or project.
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