a strategic evaluation of:

❖ ❖ ❖

Kate McNichol & Ryan Pina

September 27, 2016 Executive Summary…

❖ Brand History In 1886, Richard W. began his search for a way to support his primary income. He began selling watches to locals. This venture proved to be so lucrative, he eventually moved to Chicago and partnered with watch repairman Alvah C. Roebuck. Eventually, they started a catalog to sell watches and jewelry, which eventually became the iconic Sears catalog most people are familiar with. The catalog sold everything from clothing, to food, to even homes that could be assembled on-site, either by a crew, or as a do it yourself project. By 1970, Sears built its own headquarters in downtown Chicago, and was the largest retailer in the country until 1992, when it was surpassed by Walmart.

❖ Advertising History In the 1980s, Sears began to focus on patriotism and value as brand attributes for its consumers. Sears’ slogans included “There’s more for your life at Sears” and “Come see the (softer, newer, playful, etc.) side of Sears” as they began to publicly reinvent themselves in the early 1990s. Recently, Sears went to rebranding itself as the go-to “back-to-school” destination. They launched a microsite ArriveLounge.com, partnering with pop-star Selena Gomez to reach an adolescent audience. The brand appears to be losing its voice, and will need to find a cohesive messaging strategy.

❖ The Challenges Sears has been struggling to find itself. The brand has had inconsistent messages over the years that has caught up with them. Consumers have begun to associate the Sears brand with the brands that they sell in their stores, rather than the company as a whole. With competition like Target, Walmart, and Kohl's taking the lead both online, and at their brick and mortar establishments, Sears has been struggling to remain competitive.

❖ The Competition Sears has six major competitors: Walmart, Target, J.C. Penney, Kohl's, Best Buy and Amazon.com. Sears’ competitors have been taking advantage of Sears’ shrinking market share. The company's decline in domestic sales has resulted in a lack of growth within the retail segment. Meanwhile, its competitors have had a positive growth and share-of-voice consistently, year-over-year. With the digital space, comes a major opportunity for growth, which, when executed correctly, can bring people back into the stores.

❖ Product Offerings Sears offers thousands of products, from clothing, home décor, appliances, automotive products & maintenance, health & beauty products, sporting goods, toys, etc. This gives Sears a unique position in the department store landscape because they simply have a larger offering than most of their competitors combined. With some strategic repositioning,

Sears has the opportunity to come back as the go-to American one-stop-shop. sears ❖ Current Position As competitors dominate the consumer market with low prices, free shipping, and high quality products, Sears has struggled to remain top-of-mind and continues to lose share-of-wallet among their consumer base. Due to a sporadic messaging strategy and unclear target audience, Sears is simply firing on all cylinders, with no specific goal, other than to stop the bleeding. If the brand continues at this rate, it will no doubt be out of business within just a few short years.

❖ The Target We’ve identified an opportunity for Sears to capitalize on the growing home improvement market by targeting what we have called the “milestone” customer. These consumers are first-time home buyers, newlyweds, soon-to-be-parents, and recent empty nesters, whose needs align with the product offerings of Sears.

❖ Our Position Sears stands by its principles of hard-work, a “do-it-yourself” attitude, and the American dream. We want Sears to remain the brand you choose when you look for high-quality goods and services, coupled with a friendly and professional staff.

❖ Our Strategy We want Sears to be considered a branch of your extended family. By focusing on the foundation of family, we’ve created a strategy centered on celebrating milestones. We’ve developed a few concepts to bring our home to yours, including: an augmented reality app to assist with do-it-yourself projects, and specialists known as ‘Home Experts’ to ease the shopping experience.

❖ For Employees At Sears, while we are working to engage your family, we would be at a loss to not engage ours. To empower our employees, we to present three new initiatives: The first is ‘Kudos Points’, a rewards-based incentive program that recognizes our employees who exemplify our family values within the community. The second is a partnership with Habitat for Humanity, that will allow employees to take our concept of “home” and bring it to those who need it most. The last initiative focuses on hiring veterans. These dedicated and passionate individuals have proven themselves in serving our country, and we want to provide them an environment in which to flourish, when they return home.

❖ Creative Execution In order to create an immersive experience and drive the concept of ‘welcome home’, we’ve created a myriad of creative executions. Print and digital banners will attract customers with their vibrant colors and simple messages that reinforce the concept of home. Radio and television spots will maximize reach while providing additional support for the ‘welcome

home’ message. sears brand history

The Sears story begins in 1886, when a young Richard W. Sears, looking for a supplement to his primary income source as a railroad station agent, starts selling a surplus inventory of watches to locals. This would prove to be so successful, that within just a year, he would leave his railroad job, and move his efforts from the small Minnesota town of North Redwood, to the bustling city Chicago, Illinois. There, he makes his first hire, a watch repairman named Alvah C. Roebuck.

The following year, the pair produce a mail-order catalog for watches and jewelry, that would eventually balloon into the behemoth Sears Catalog we know today. The catalog expanded as Sears, Roebuck, and Co. (as it was then called) realized its potential to sell goods to rural customers, who may otherwise not have access to such items locally. The catalog contained everything from clothing and food, to automobiles, and eventually, even entire homes that could be assembled on site, either on one’s own, or by a crew employed by the company itself.

In 1925, backed by the success of its mail-order catalogue business, the company opened its first retail location in Chicago’s west side. At the height of its retail dominance, Sears would own and operate as many as 2,063 retail locations including mall-based stores (and often, adjacent Auto Centers), hardware, outlet, tire, and battery stores.

Long before the days of shopping malls, and giant big box retailers like Walmart and Target, large department stores such as Sears and Macy’s were where Americans went to shop for goods. While other major department store brands tended to focus on stocking the latest styles, Sears focused on practicality. The company tended to set up in working class neighborhoods and provided ample parking for its customers.

By the 1930s, Sears began creating large windowless, air- sears conditioned spaces, in which customers could could shop in comfort. By the 1950s, the mail-order business would become overshadowed by the tremendous growth of its retail operations, as access to stores became more convenient. Throughout the 1960s and 70s, Sears would begin placing locations in suburban shopping centers, with many becoming “anchor” stores. With the rise in popularity of the automobile, Sears became a destination of convenience. No longer would you have to travel to several different stores on a single shopping trip. Sears was the everyman’s store, and the everywoman’s store. It was a one-stop shop for everything from top-line electronics such as color televisions, and radios, to clothing, to furniture, and even tools.

Sears was an innovator in the retail industry. The brand pioneered the , as a way to purchase goods on credit, allowing consumers to enjoy their purchases immediately, and pay them off later. Sears championed the appliance industry, with its stylish and well-built brand appliances. Boomers were the fastest growing generation ever at the time, requiring larger homes for larger families. Many of these homes were built using Sears’ own tools, which had established itself as a leader in quality since the late 1920s.

In the early 1970s, Sears built its headquarters in downtown Chicago—a 108 story architectural marvel, that suggested not only its dominance over the Chicago skyline, but also the retail industry at large. From the time it was completed in 1973 until 1998, it was the tallest building in the world.

In fact, Sears was the largest retailer in the country, until it was surpassed by Walmart in 1992. This is quite impressive considering its competition at one time consisted of Macy’s, Woolworth’s, Filene’s, Lord & Taylor, J.C. Penney, and many more. Of course, the department store of today has evolved several times over from the days of Sears’ dominance. Many have failed, as we have said goodbye to brands of yesterday such as Ames, Ann & Hope, Calgon, Lechemere, Service Merchandise, Zayre, and others.

Today, Sears faces steep competition, particularly from discount department stores, and ranks as the fifth largest department store brand in America, behind Walmart, Target, Best Buy, and Home Depot. Will Sears emerge sears as the innovative brand who consistently reinvented themselves and kept shoppers coming back, or will they go quietly into the night, the way of other once large retail giants before them? advertising history

Beginning in the 1980s, Sears began focusing on the the brand attributes that it felt would resonate best with consumers: patriotism and value. Their advertising showcased beautiful models sporting fine goods, like fur coats and wool hats, strutting their way down a red carpet. The juxtaposition of luxurious coats and terms like “value” and “discount” did very little for the brand’s position.

The next iteration of Sears branding revolved around the slogan, “There’s more for your life at Sears.” This highlighted the one- stop-shopping experience of the physical Sears real-estate. This moonlighted earlier attempts to portray Sears as a place of convenience. We’re introduced to the idea of shopping as an entire family. No longer is it just about jackets or tires or microwaves, but instead about the Sears event holistically. Ideas and stories started to come alive in the advertising.

Some of these ideas include:

❖ Taking your son with you to get a tune-up, because you can both catch the ball-game in the electronics section while you wait.

❖ Going to Sears with your family might mean a boring stroll through the appliance section with mom, the automotive section with dad, or the sporting goods section with your brother, but your patience and best behavior could score you a new bike!

❖ Sears knows everything you want, and has everything you need.

In the early 1990s, Sears begins to publicly reinvent itself, with the “Come see the ______side of Sears” campaign. The fourth word is often changed out with terms like softer, newer, playful, etc. We continue to see traces of the family aspect, but we also begin to see this transition to the timelessness of Sears. One ad in particular follows the life of a young girl, and her journey to wifehood, with Sears representing a consistent role in that sears journey.

Sears’ advertising became more friendly, and familiar, and the Sears story became more enticing. Recent advertising efforts from Sears appear to be running amok, falling somewhere between serial blunders, and random acts of creativity. Even some consistent efforts such as their “You won’t run into the top ten appliance brands just anywhere” campaign, fails to capture the tradition and sentiment of what the Sears brand was build and founded. While comical and clever, it gives the brand very little traction.

Just a few years ago, Sears, facing a ten year decline in “back- to-school” market share, decided to try something a bit more bold. Sears was not resonating with the 8-12 year old market, often being perceived as “outdated” and “old fashioned”. Sears took it upon itself to set up a confession booth where kids in this age group could anonymous voice their opinions about the first day of school, and some of the challenges they faced.

Sears gained excellent insight, finding that many kids in that age group have a lot of anxiety about how they’re going to dress, and fit in. They launched a microsite called ArriveLounge.com, where teens could pair their favorite style of music with their attire. They partnered with pop star Selena Gomez to promote

the campaign. sears the challenges

In addition to lower-cost competitive alternatives such as Walmart and Target fighting over the market share that Sears once called its own, the brand seems to be struggling to find an identity for itself. Sears inconsistent messaging over the years seems to have caught up to them. What is Sears? What do they stand for?

Where America shops forThere’s Value. more for your life at Sears. Your money’s worthYou and Can a whole Count lot on more. Me.Come see the _____ sideThe of goodSears. life at a great price. Guaranteed.Sears, where else? ? Good life. GreatWhere price. it begins.Life. Well spent.Shop your way.

1980 1990 2000 2010 2020 A Sampling of Sears Slogans (1980-Present)

Is Sears a noun or a verb? Can it be both? What would it take? If you were to ask most people what they typically associate with Sears, you’ll likely hear some of the brand names that are sold in Sears stores. Kenmore. Craftsman. Die Hard.

These represent the nouns. These are the “things” associated with Sears–or the what. People can get things anywhere. In fact, they can even get Kenmore and Craftsman items anywhere, because Sears authorized those brands to be sold in K-Mart locations amongst other retailers in 2010.

The verb is the how and the why. What are the reasons to go to Sears, over other retailers? Consumers need to be motivated by more than just a “what”. After a while, the what becomes the

“So what?”. This does not nurture brand loyalty. sears

What can Sears provide that no one else can? What makes them unique? Let’s look at the competition. the competition Price

Quality

Retail Sales 2015: The retail space is both, highly competitive and volatile. Many brands are fighting for market share, and there are several ❖ Walmart factors that contribute advantageously, or otherwise. $343.6 Billion ❖ Target Compared to direct competitors, Sears ranked 16th and 18th in $72.6 Billion 2014 and 2015 respectively on the National Retail Federation’s ❖ Amazon Top 100 Retailers List. The problem lies not with its ranking on $49.4 Billion the list, but rather with the lack of growth. Between 2012 and ❖ Best Buy 2014, the company saw a decline in domestic sales of -13.4% $36.0 Billion and -11.8%. ❖ Sears $25.8 Billion Meanwhile, the competition is seeing growth in their domestic ❖ Kohl’s sales numbers across the board. These numbers, while small, $19.0 Billion imply that Sears market share is shrinking, while its competitors ❖ JC Penney are taking advantage. $12.2 Billion The kinds of products that Sears offers are continually found at

other retails, with potentially lower prices. There is also a sears significant increase in competition from the digital space, with many items available through online retailers such as Amazon.com. product offerings

Apparel ✅ ✅ ✅ ✅ ✅

Automotive Accessories ✅ ✅ ✅

Consumer Electronics ✅ ✅ ✅ ✅

Floor Care Products ✅ ✅ ✅

Food & Consumables ✅ ✅ ✅

Footware ✅ ✅ ✅ ✅ ✅

Grocery ✅ ✅ ✅

Heath & Beauty Products ✅ ✅ ✅ ✅

Home Appliances ✅ ✅

Home Fashion Products ✅ ✅ ✅

Household Products ✅ ✅ ✅

Jewelry & Accessories ✅ ✅ ✅ ✅ ✅

Lawn & Garden Equipment ✅ ✅ ✅

Outdoor Living Products ✅ ✅ ✅

Pantry Goods ✅ ✅ ✅

Plumbing Fixtures ✅ ✅ ✅

Residential Heating & Cooling ✅

Seasonal Merchandise ✅ ✅ ✅ ✅

Sporting Goods ✅ ✅ ✅

Tires & Batteries ✅ ✅ sears Toys ✅ ✅ ✅ ✅ current position

Sears is struggling to remain top-of-mind, in a landscape where consumers appear to value both price and quality. From a performance standpoint, brands such as Bed, Bath and Beyond fare much higher for wedding registries, and home improvement stores like Lowe’s and Home Depot for appliances.

Strengths:

❖ Visibility with price conscious consumers ❖ Strength in core brands like Kenmore, Craftsman, & DieHard ❖ Growth of digital audience connecting with Sears

Weaknesses:

❖ Poor financial forecast with industry-wide sales decline ❖ Fragmented organization of various products and services ❖ Perception of being “uncool” and not consciously on consumer minds

Opportunities:

❖ Growing e-commerce sector with improved technology for smart devices ❖ Home improvement market provides growth opportunities ❖ Strong performance of footwear and cosmetics markets in the US

Threats:

❖ Increased competition from value and online retailers ❖ Growing expenditures caused by rising wages and increasing healthcare costs

So, how do we fix it? sears the target

As briefly mentioned in the SWOT analysis on the previous page, we note that one of the major opportunities for the Sears brand is the potential growth of the home improvement market. With the return of consumer confidence to the economy, there is an increase in spending, including on home improvement projects that may have been placed further down on priority lists.

Given the vast categories of products that Sears sells, we believe that home improvement, and home decor will be a huge opportunity. Sears has the ability to be the one-stop-shop for everything from curtains, blinds, and bedding, to appliances, furniture, and housewares.

Our target is what we like to call the “milestone” customer. These are customers who have recently, or will soon reach milestones in their lives, such as getting married, having children, or purchasing a new home. By targeting these consumers, we will be able to align their wants and needs, with the products and services that Sears provides.

We know that our “milestoners” have a need for visiting department stores. Per Simmons research, recently engaged men and women reported shopping at Target three-to-six times in the past four weeks at an index of 145. Expecting a baby or recent empty nesters index at 123 and 225 respectively. Walmart had similar indices for expecting parents and empty nesters, at 135 and 151 respectively. Kohl’s indexes at 147 and 184 for these same categories. Clearly competitors are gleaning sales from these milestones. The question is, why not Sears?

We believe that during these critical “milestone” moments, consumers are in a different mindset than when shopping on average. With so many options for where to get day-to-day supplies, we feel that Sears would be a special place for special moments.

Sears has the potential to attract consumers for their wedding registry, as they may want to consolidate two households into one, and may require upgrades of decor, small appliances, etc.

During the home-buying process, or during a home renovation, the entire aesthetic of a room may change based on the decor, or in the case of a kitchen, the appliances. With a little one on the way, perhaps the spare bedroom could use a facelift to

become the nursery. Maybe someone wants to become more sears active and now needs new workout clothes.

All of these scenarios present opportunities for consumers to make decisions, both big and small, and Sears could play a significant role in providing solutions. psychographics

Dan & Amy

❖ Ages 34 and 29, respectively ❖ Advertising executive and stay-at-home mom ❖ Married for four years ❖ Are expecting their second child ❖ Planning to move from their crowded two bedroom apartment in the city to a three bedroom home in the suburbs ❖ Robert & Lisa

❖ Ages 62 and 54, respectively ❖ Both retired ❖ Married for twenty-nine years ❖ Third child just went off to college ❖ Planning on remodeling their current home and turning the kids’ old bedrooms into recreation and exercise rooms our position

Sears believes in the American dream. We are a company founded in the tradition of hard work, and a “do-it-yourself” attitude. Over the years, we have welcomed millions of people through our doors, in search of goods and services, paired with friendly and professional staff. While the times have certainly changed, our ideals have not.

Sears sells products that make a house into a home. Sears has the expertise to help plan your home, and keep it running. Sears provided your cradle when you were a baby, your air sears conditioning on those long, hot summer nights of your youth, and the curtains and bedding in your first home. You used Craftsman tools to build that shed in the backyard, and to fix up that old Chevy in the garage with your dad.

From our place to yours, welcome home. our strategy…

Our strategy is simple. Sears is an iconic American brand, that is built on a foundation of embracing a changing landscape, and coming out even stronger. This ideal continues to be a common strength of American families, who cherish tradition and heritage.

The idea of coming home is also nothing new to Americans. Whether it be returning home after a long day of work, or returning home from defending our country overseas, the idea of “coming home” invokes ideas of celebration, and milestones. Our strategy is to celebrate those milestones with you, whether it is helping you to decorate and furnish your new home, prepare for the arrival of a new member of your family, or to help you convert your empty nest.

Being Sears, it is in our DNA to understand the value of a dollar, and to bring quality and compassion to our consumer base. According to Simmons research, our target audience is drawn to stores that offer sales promotions with an index of 116. This target avidly looks for special offers with an index of 121, and will shop around to find the best price with an index of 117.

Home isn’t just a space–it’s a time, and an idea. It’s the smell of the first thanksgiving dinner cooked in your new kitchen. It’s warm and inviting. It’s home.

A few of our suggestions include:

Brands Returning Home

❖ The Craftsman and Kenmore brands that have, for so many decades, been a staple of the Sears brand, should be sold exclusively at Sears, and on Sears.com. This will place emphasis on the brands’ origins and traditions under the Sears name. ❖ Sears should consolidate all of it’s different subsidiaries under one company. Sears is incredibly fragmented right now, with properties in Auto, Parts, Home Services, Connected Solutions, ServiceLive, , et al. Consolidating these different divisions under the Sears name will simplify solutions for clients and enhance brand recognition.

Home Experts

❖ Embracing “do-it-yourself” projects can sometimes be a bit daunting. Wouldn’t it be great sears to have a little help along the way? Look no further than our Home Experts. While this is a service that is currently offered by Sears via its ServiceLive subsidiary, more emphasis can be placed on this, both in the store, and online, encouraging customers to chat with experts in interior design, and construction for all of their projects, no matter how big or small. Sears ‘ProjectHome’ App

❖ With augmented reality becoming such a popular thing right now, we believe that the Sears brand can leverage this with a new ‘ProjectHome’ app. This app would allow customers to try out different products and designs in the own homes by simply holding their smartphone or tablet in a room, and choosing the window dressing, furniture, or other item, allowing customers to visualize their ideas in a whole new way. The images could then be saved, and a customer could walk into a Sears location, and speak with a Home Expert, to discuss the project. ❖ Through Simmons research, we found that our target is often using the internet to help plan their shopping trips, with an index of 140. They are also shopping, particularly when they need something, with an index of 131. The ‘ProjectHome’ app will not only allow them to research the product, but also allow them to actually see what it will look like in their own home utilizing augmented reality, so they can make extremely informed decisions–when they need to. With Sears on their side, they can turn the idea of the dream home into a vision.

Home Away From Home Funding and Planning

❖ With a focus on our “always on the go” milestone audience, Sears will partner with several vacation destinations around the world to create custom honeymoon excursions complete with wish list necessities such as new luggage, his-and-hers beach towels, and matching fitness trackers to track their long romantic walks on the beach, while away from home. This allows Sears to offer more value to their customers, and increase partnerships with other brands ushering in a new category of service. All of the planning

will be accessible on Sears registry (Homepage). sears ❖ With the growth of ‘honey fund’ type organizations, fewer couples are using this money exclusively for vacation expenses only, with many of them utilizing this extra capital on items such as a new lawnmower, a washer and dryer, or even new tires for their car. By implementing this service into their business, Sears will be positioned as a unique player in the space. No more multiple steps. With Sears, it’s all right here. Sears ‘ProjectUs’ Registry

❖ To effectively serve the target audience, Sears will overhaul their current registry process, and implement a fully-integrated, user-centric digital store, that is personalized for each unique visitor. This new digital environment will work similarly to the Sears ProjectHome app, but focus on wedding and baby registry. ‘ProjectUs’ will make it easy for consumers to register for the things they want, both in-store and online, and visualize those products in their own homes - full circle. Research shows that this new generation of “soon to be married” and “soon to be parents” value emotional experiences, over tangible items. They need to see the effects of products and services in a way that will work for them. Using augmented reality users can see what their actual homes will look like with the products and updates they select from the Sears site. They can upload images of rooms and plan their dream home one tap at a time. ❖ ‘ProjectUs’ will work seamlessly with ‘ProjectHome’, so that the user can easily navigate between the two apps to create a unified experience. If a user is in ‘ProjectHome’ testing a new bed and duvet in their master bedroom, and decides they want to add it to their ‘ProjectUs’ registry, they can do so with one tap. Research shows that “milestoners” enjoy shopping, even when they do not purchase something (with an index of 146), and that they are frequently shopping for household appliances (with an index of 128). With ‘ProjectUs’ and ‘ProjectHome’, we are bringing that experience to them. ❖ The apps will also work in-store. If the user is at a Sears retail location, they can unlock special deals, add products to their registry using their smartphone, and drop images of their actual home into the augmented reality so that they can bring their home with them to Sears. Per Simmons research, our “milestoners” tend to spend long periods of time browsing with an index of 112, both online and in-store while shopping. This will bring more value to their experience, and give Sears a competitive edge in innovative offerings.

And for employees?

Many of our suggestions, thus far, have focused on the external customer, but what about our internal customers (or employees)? Sears employees need to be empowered to take pride in their jobs, and know that what they do for a living really makes a difference. This is why we suggest two wonderful initiatives that further embrace the idea of “home,” for the Sears team.

Coming Home

❖ Sears will place an emphasis on hiring veterans who are seeking employment once

returning home from deployment and are in search of their next mission. Veterans are very sears passionate people, and can often flourish in a retail environment. Sears has an opportunity to improve their image, while also employing millions of vets who may otherwise struggle with finding employment Not only is this initiative a noble one, it is right on-brand for the Sears organization. From Our Home To Yours

❖ Sears, in partnership with Habitat for Humanity, will provide products for stocking new homes built by the organization. Not only does this present the unique opportunity for Sears to give back to the community in a way that matters, but it might also benefit from allowing employees to donate their time to the organization and donate money for their time volunteered. Research shows that employees feel positive when they can contribute to aspects of community through their place of employment. ❖ Additionally, this offers a unique opportunity to show off this partnership, by sponsoring Habitat for Humanity events, and further conveying a positive brand image, not only to external customers, but also to enhance the experience of its own employees, and give them the opportunity to perform work they can be proud of, both in and outside the workplace. ❖ Should Sears employees decide to take part in the event, they will be paid in full for their time and honored both in the annual report and on a wall design in every Sears store.

Sears “Kudos” Points

❖ Sears also wants to reward employees for being great, not only at their respective jobs, but also for being great people. For this, Sears will introduce Kudos Points–a rewards system that recognizes its employees for doing things such as giving blood, volunteering at a homeless shelter, or simply, having a great interaction. Kudos Points can be given by teammates, and can be redeemed for things like paid days off, or a cash bonus!

creative executions…

On the following pages, you will see some sample creative executions. These executions target the exact moment when a “milestone moment” and the decision to purchase intersect. We have prepared a series of print/digital banners, and several pieces of copy that could potentially represent either television or radio advertisement.

These creative executions also tie together nicely, our theme, welcome home. By having consistent messaging, we believe this will bring the Sears brand top of mind during these milestone moments. Shopping at Sears shouldn’t just be a swipe of your card-–it should sears be an experience. creative brief

What do we want the advertising to do? ❖ Re-establish Sears as a go-to brand for home needs. ❖ Show the consumer that Sears can be valuable partner, not just a store. ❖ Convince the consumer that they should go to Sears over competitors.

Who is our target?

❖ 'Milestoners' or consumers who are reaching a peak moment in their life, getting engaged, becoming a parent to be, or an empty nester - all milestones in life that require remodeling, revamping, and big shopping.

What do they currently think? ❖ Sears is a dated brand that their parents might have gone to but they typically do not. ❖ Sears has a few good brands, but they don't need to go to Sears to get those products.

What would we like them to think? ❖ Sears is the only place to get everything you need in one place. ❖ Sears is the best choice for their families and believes in the success of their milestone moments for years to come. ❖ Sears is an ally and a part of their journey, from the start.

What is the single most compelling promise we can make to them? ❖ Sears will be the most valuable partner for them to trust as they build their home, with the best prices and the most innovative tools.

How will we make it believable?

❖ We will utilize the 'Welcome Home' messaging strategy, to help the consumer see themselves in the advertising. Sears will not just sell products, they will provide solutions and evoke emotions to resonate best with the target audience who is going through a very special, and very stressful time.

Is there anything else worth considering that may help us get to great creative work? ❖ The messaging has to be genuine or it will fail. ❖ Sears must do a little soul searching of their own, get back to their roots.

Are there any executional mandatories?

❖ There has to be a digital solution to combat the emerging online-vendor industry. sears Radio & Television Executions

Home. It’s the place where you nurtured them and helped them to grow. And now that your youngest is starting her first semester, it’s the blank canvas you never imagined you’d have. Sears is here to help. Whether it’s designing the kitchen of your dreams with that Kenmore dual-oven, or choosing the curtains for your new sewing lounge, we’re the one stop shop for expert advice. This weekend - we’ve got you covered with 50% off any Kenmore appliance when you buy another at full price. We can’t wait to see what you can do when you put your mind to it. Sears. Welcome home.

Let’s face it–as a new mom, your time is precious. So why spend that precious time doing things you could hand off to someone else? Or something else? A new Kenmore dishwasher or self-cleaning oven might help and guess what - with the Sears buy-one-get-one sale this weekend you can have them both. That way, you can get back to the things that matter, like play time. Sears. Welcome home.

You did it. You’ve been working hard all of these years, and you finally get to start your retirement. Maybe it’s also finally time to pull the cover off of that old, rusty convertible in the garage and finish restoring it. If your old tools won’t cut it, Sears has got you covered with quality Craftsman tools that are 20% off all week long. Make the garage your kingdom again. Sears. Welcome home.

You’re getting married. And you have no idea what you’re doing. You know you’re supposed to register somewhere, but where? And what about all those projects you’ll have to put off until after you come back from the honeymoon? At Sears, we’re here to help you through your journey, see you off, and help you get back on track when you return. With our new Sears ProjectHome app you can pick out your dish-ware while finalizing your snorkeling adventure. You see the full

picture - why shouldn’t we? Sears. Welcome home. sears Print Executions

When “you” & “I” becomes “us”.

welcome home

At Sears, we believe your journey is our journey. As you begin this new chapter, we are committed to being your guide, your partner, and your trusted source of all things for your new life. That’s why we’ve created Sears ProjectUs, a registry app that will help you take care of what you need, from tea-cups to tool sheds. Unlock special pricing, add items to your list, and digitally bring home with you so you can see your future clearly. We call it home, and you call it yours. Congratulations, from all of us, at Sears.

welcome home

When “home” takes on a whole

new meaning. sears

At Sears, we believe your journey is our journey. As you arrive home, we are committed to being your guide, your partner, and your trusted source for settling back in. We’d also be honored to call you “teammate”. Visit sears.com/ComingHome to find out more about the veterans we hire. From all of us at Sears, welcome home. supporting data… Defining Target

Behavior/Attitude Recently Expecting Recent Engaged A Baby Empty-Nesters A store’s environment can 110 122 107 make a difference in whether I shop there Shopped at Kohls at least 3-6 n/a 147 184 times in the past 4 weeks Shopped at Target at least 3-6 145 123 225 times in the past 4 weeks Shopped at Walmart at least 87 135 151 3-6 times in the past 4 weeks I shop around a lot to take 117 101 advantage of specials My children have or will have a 191 104 143 significant impact on the brands I choose I always look out for special 121 110 offers I am drawn to stores I usually 116 105 116 don't shop at because of sales

Among Target

Behavior/Attitude Index

I usually go shopping when I need something 131

I often use the internet to help plan my shopping trips 140

Regardless of price, it is important to me to have the 133 brand I like

I frequently shop for household appliances 128 sears

I tend to spend long periods of time browsing 112

Even when I do not purchase something, I enjoy the 146 shopping experience. references

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