1998 Volume 121 No 1–4 - Phi Delta Theta Scroll Archive

kicked off the campaign. The
"softer side" was an instant hit
and spawned other campaigns.
The "many sides of
Sears" became a total store
campaign, the "merry side of
Sears" a holiday campaign,
and the "iimovative side of
Sears" a campaign for
Kenmore appliances.
Meanwhile, Costello, who
oversees a marketing budget
of $1.4 billion, began looking
for other ways to connect
Sears to its target
customer. Special
advertising campaigns
were created
especially
for Hispanic-
American, African-American
and Asian-
American markets
and Sears
began sponsoring
a variety of
entertainment
events, including
the Ringhng Brothers and
Barnum & Bailey Circus, the
Women's National Basketball
Association and national concert
tours by Phil Collins and
Gloria Estefan. The circus tiein
alone gave Sears with direct
contact with 12 million
households in 96 markets.
The goal, says Costello, was to
link Sears with "events that
"iapture a sense of excitement
and fun for the family."
Costello believes that, like
politics, all retailing is local.
So many of these events and
sponsorships have raised
money for charities and nonprofit
groups like the American
Cancer Society and Boys
and Girls Clubs in local markets.
Such promotions are
consistent with Sears' long
history of corporate citizenship
and are based on the
theory that people don't make
a decision to shop at a $30
billion company but rather a
preferred store in a close driving
distance.
Perhaps the most interesting
aspect of Costello's plan is
that he didn't just borrow successful
ideas from direct competitors
like JC Penney,
Wal-Mart and K-Mart. He
took ideas from the best of
the best: stand-out consumer
companies like Walt Disney,
Coca-Cola, General Electric
and General Motors' Saturn
"I bought my firstblazer for
my firstjob at Sears... Sears
was an important part of my
life growing up. Like so many
others, though, I hadn't
visited a Sears store in a
number of years."
Division. In essence, he
adapted marketing strategies
that are common for package
goods but not prevalent in
retailing.
Costello likes to say, "Competitors
can copy your features,
but they can't steal your
brands." A brand signifies a
relationship with the customer.
It's a company's most
valuable asset.
The Disney Company has
been so successful in recent
years, notes Costello, because
"they understand that Disney
is a brand name" and they are
consistent with the use of that
brand name whether the medium
is film, television, a
theme park or a toy.
Because Sears is so large
and diverse, is was easy to
diffuse brand image. But under
Costello, brand management
has been given special
care and attention. If Costello
has anything to do with it,
newer and less known brand
names like Canyon River
Blues denim. Crossroads casual
apparel for women, Laura
Scott career wear, and Circle
of Beauty cosmetics will also
become household names.
"Sears always had been big
in private labels like Kenmore
and Craftsman, but what John
has done is make Sears itself a
well-respected brand name,"
says Dale Lewison, chairman
of the department
of marketing
in UA's
College of Business
Administration.
"Sears
was changing
its image to the
point that it became
very
cloudy and confusing.
The
'softer side of
Sears' is a wonderful
campaign,
but what I think John
has really done well is that he
has clearly positioned Sears in
the minds of consumers."
Saving a dinosaur
Just how successful has the
new marketing program
been Even Fortune admits
the one-time dinosaur has
turned itself around. Sears
earned $1.3 billion on revenues
of $38.2 billion last
year, up steadily from $30.5
billion in 1993. The profits
came not only from cost cutting,
but by gains in market
share in virtually every category
of merchandise. Surveys
show customer
satisfaction rising steadily
since 1993, and the company's
stock has outperformed the
big brand companies like
Coca-Cola and Disney that
Sears has tried to emulate.
Costello, who has been