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February 2002
Welcome to the Brigham Scully Newsletter.
Take A Lesson From KMart
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.

Upcoming Events...
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.

We hope you have found this newsletter to be informative.  If there are others you know that would like to receive this email, please feel free to forward us that information or call us at (818) 716-9021!
Copyright (c) 2002 Brigham Scully