Analyzing Kohl’s Business Strategy: A Comprehensive Review

Kohl’s Business Strategy: A Comprehensive Review

Kohl’s, a retail giant, operates over 1100 stores across the United States. The company has been successful in maintaining its position in the retail industry and maintaining a strong brand name. In this article, we will analyze Kohl’s business strategy to understand what lies behind the company’s success.

Market Segmentation

Kohl’s has wisely targeted their customers by focusing on the middle-class consumers who are looking for quality products at an affordable price. The stores have a variety of products ranging from clothing to home appliances, which caters to this segment. The company has also kept the option of retaining high-end products, thus widening its target audience.

Effective Marketing

The company has heavily invested in its marketing strategy. Kohl’s has aggressively advertised their branding through social media and has also successfully implemented promotional offers such as ‘Kohl’s Cash’, which encourages customers to make more purchases.

Innovative Customer Engagement Programs

Kohl’s has introduced innovative strategies to engage its customers. One such program is ‘Yes2You Rewards’ where customers can earn points for every dollar spent at Kohl’s. This encourages customers to shop frequently and thus generates loyalty among them.

Technological Advancements

Kohl’s has been quick to adapt to technological advancements. The company has adopted innovative technologies such as ‘Buy Online Pick up In Store (BOPIS)’, which provides customers with extra convenience. The company has also launched Kohl’s Pay, which allows customers to make their purchases through their mobile phones.

Collaboration with Leading Brands

Kohl’s has collaborated with leading brands, which not only adds credibility to the store but also generates brand loyalty. These collaborations include partnerships with Nike, Levi’s, and Lauren Conrad. These collaborations have made Kohl’s one-stop-shop for top-notch brands and have definitely contributed to the company’s success.

Conclusion

Kohl’s business strategy revolves around understanding its target customers, investing in innovative technologies, and collaborating with leading brands. The company has been successful in providing an overall shopping experience that is both affordable and convenient. Kohl’s has made significant progress over the years and continues to grow steadily.