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