Research Project Located in Monument, CO Jackson Creek Shopping - PowerPoint PPT Presentation

Buying and Merchandising Operations Research Project

 Located in Monument, CO Jackson Creek Shopping Center  Surrounding businesses include Wal- Mart, Kohl’s, Chili’s, It’s a Grind, & various other small restaurants and stores  Products Include:  Plumbing, Electrical, Building Supplies, Paint, Landscaping Materials, Tools, Appliances, Home Décor and Lighting  Services Include:  Tool Rental, Delivery, Installation

 To analyze the effectiveness of the current branding activities used by Home Depot  Determine effectiveness of current use of logo, advertising, and social media  Identify potential improvements in the branding activities used by Home Depot

 Internet Research (secondary data)  Company background and history  Identification of current branding activities  Customer reviews and feedback regarding Home Depot’s products, services, and customer service  Management Interview (primary data)  Evaluation of current branding activities  Explanation of current brand image and mission  Future development of brand  Customer Survey (primary data)  Effectiveness of current logo, advertising, and social media  Current brand image of Home Depot  Potential improvements that would improve products, services, and brand image

 Residents of Tri Lakes area (87% live within a 10 mile radius of the store)  80% male  Middle to upper income  92% own single family homes  Psychographic Characteristics  Desire to improve home interior or exterior  Completing a home improvement project  Improving home landscape  Desire to increase property value  Need to repair something in the home

 Current logo and slogan  Use television and newspaper advertising  Seen by customers as a “do it yourself” store  Sales people are sometimes helpful, sometimes not available  Use of social media is limited

 Website: www.homedepot.com  Facebook fan page  Twitter page  YouTube videos  Monthly emails to credit card holders

 42% of customers surveyed like the selection of products and services  38% feel brand image is positive  43% rated customer service as good or excellent  34% have seen television or newspaper advertisements  8% are fans on Facebook  9% receive monthly emails  12% have viewed YouTube videos

 57% of customers rated customer service as fair or poor  42% had a difficult time finding merchandise within the store  Only 18% have used website to purchase products  Social media use is low – on average, one in ten customers use social media related to Home Depot  No links to YouTube videos on website – 75% of customers said they would view videos, if available on website

 Lowes has registration feature  Lowes website is less cluttered  Lowes has better selection of appliances on website  Lowes has better selection of lighting on website  Lowes has “how - to” videos in each product category  Lowes has “Clearance” section on website

 Improve brand image of Home Depot  Increase number of customers accessing website for product information and purchasing products  Benefits: increased awareness of Home Depot’s products, services, programs, and promotional events; increased customer traffic; increased sales & profits; increased customer loyalty  Increase amount of “how - to” information on website  Benefits: increased effectiveness of advertising; increased awareness of products, services, and store programs; increased sales & profits

 Increase interaction with customers  Benefits: improved products, services, customer service, store organization, advertising; increased customer satisfaction; improved reputation; increased sales & profits; increased customer loyalty  Use more contemporary logo and slogan  Benefits: will attract a younger customer base and increase sales

 Create updated logo and advertising slogan  Add customer registration to website – offer weekly coupons and sale information as incentive  Semi-monthly electronic newsletter  Produce new “how - to” videos from in-store demonstrations  Add “how - to” videos to each product category  Offer incentives on website – coupons & frequent buyer discounts  Add rental equipment scheduling request feature to website  Add “Clearance” section to website

 Promote in-store demonstrations on social media sites and through email; offer incentives for attending demonstrations  Promote Eco-Options program through website  Add blog to website  Discussion topics include: electrical repairs, plumbing repairs, flooring installation, landscaping tips, selecting appliances, and others.  Summarize & distribute blog feedback to staff

 Estimated Costs of each Activity:

 “How - to” videos will give customers confidence to do home repairs/improvements  Leads to increase sales of products  Registration and newsletter will provide incentives for purchasing and will increase sales of products, as well as develop loyal customers  In-store demonstrations increase product sales  Eco-Options information will attract environmentally conscious customers  Blog will improve customer service, leading to increased customer satisfaction and sales  Clearance section on website will increase sales  Rental Equipment scheduling will increase equipment rental revenue