14 September 2010

Kohls: Brilliant Strategy

Share
I like Kohls for many reasons. They have friendly and attractive employees, quality merchandise, and frequent sales. All of those things combine together into their plan, but the sales are the most brilliant part of their strategy.

As much as I mock the fact that Kohls has a 'lowest prices of the season' sale almost every week, even if it annoys me, I pay attention to it. I find myself constantly and regularly scouring their advertisements for things that I need. Last time I went there, with sales, discounts, etc., I bought a new razor/beard trimmer for $5.88 after tax which was regularly $25. That's an exception to the rule that happened because I only buy things I actually need, but it's part of their overall strategy where they will risk patrons like me in favor of those they actually hope to attract.

People who shop at Kohls generally react the same as shoppers everywhere tend to act. When it's on sale, their relative amount of available capital increases, and so they feel like they have more spending power. In essence, they say, "It's on sale, so I had better buy it while it's cheaper." Most of these kinds of customers end up buying things in advance of their need (which is ok, and smart in many cases), but they also buy things on impulse while they're there because they have coupons, additional discounts, or the convenience of spatial proximity to other things they want or need that may or may not be on sale or on sale for a good price.

I shop at Kohls. I have a list of things I need to buy, including some things I need at some unknown future date that are not yet worn out (like jogging shoes and jeans). When they go on sale and I can capitalize on the bonuses, I will drop by since it's only a little out of my way, and scoop things up for a similarly exquisite song of a price, albeit probably not 20% of original list price like my last purchase. This way, I don't buy things 'just because they're on sale' when they are not a good value or when in those rare cases they raise the price in advance of a sale to drive in business to a product that was priced at the sale price regularly only a few months before (I have no evidence that Kohls follows this latter practice).

A man I once knew gave me this advice: "The kind of woman with whom you mesh well is one who likes the finer things in life but waits until they are on sale." Women used to be responsible for disposition of household goods, which meant they were in charge of the purse. They were supposed to make the money the man earned go as far as possible to meet all the needs and as many of the wants of the people in the household as possible. What I actually seek is someone with the same values and sense of value as I have.

Kohls would do well to have semi less frequent sales. However, I am addicted almost to their advertisements, and so they have managed to keep themselves on the front of my mind. It's a brilliant strategy. Fortunately, I have a brilliant countermeasure of my own...

No comments: