In 1970s, other than the economic difficulties like inflation and recession, the retailers were facing the difficulties of saturating markets. Gaining market share had become difficult because of product proliferation, wide distribution and the absence of fair trade laws. Providing high quality of service, to gain larger market share, was not feasible due to the high labor cost. Location, also, was not a factor that could provide competitive edge, as the customers had a wide variety of shopping choices. The adversities had led to the quite revolution in retailers. Retailers were becoming sophisticated strategists.
"Sears
starts National wide price plan"was the headline of a retail trade
newspaper. The news meant a remarkable change in Sears' policies: Sears was to
take the brand building in its own hands from the regional managers. It also meant
that a retailer was to market its name and products nationwide, which was otherwise
done by a brand marketer. Television was a traditional medium for nationwide brand
marketing and pricing. Television was a territory of the brand marketers. The
new policies were to lead Sears into direct competition with brand marketers,
a competition directly from nationally recognized brands (like Levi's Strauss,
GE). |