Table of contents INTRODUCTION MARKETING ENVIRONMENT ANALYSIS – MICRO TRENDS TREND ONE-COMPETITORS TREND TWO-CUSTOMERS MARKETING ENVIRONMENT ANALYSIS-MACRO TRENDS MACRO TREND ONE-ECONOMIC MACRO TREND TWO-TECHNOLOGY MARKETING MIX-EVALUATION AND CRITIQUE OVERVIEW OF CURRENT MARKETING APPROACH EVALUATION OF EFFECTIVENESS MARKETING MIX-REDESIGN PRODUCT PRICE PLACE PROMOTION PHYSICAL EVIDENCE PROCESS PEOPLE IMPLEMENTING RECOMMENDATIONS RECOMMENDATION ONE-BUDGET RECONSIDERATION TO NEW DEVELOPMENT RECOMMENDATION TWO-CUSTOMER’S ROYALTY ESTABLISHMENT RECOMMENDATION THREE-FEATURES DIFFERENTIATION REFERENCE Introduction Australian hardware industry showed a considerable growth in the last 10 years. The market sees a cash revenue of $22 billion per year. Bunnings owned by wesdfarmers is the market leader. Launched in 2011 Masters is the home improvement big box retail offer, offering Australian consumers a retail experience they have never seen before. Each store stocks over 35,000 different product lines from outdoor furniture to a complete new bathroom with all the accessories. In 2012 Masters launched its online store, becoming the first Australian Hardware and Home Improvement store to allow customers to shop online. Masters Home Improvement is the biggest, most exciting thing to happen in home improvement in Australia. This report is an analysis of Master’s current marketing approach with respect to the 7 p’s of marketing, understanding the macro and micro environmental trends affecting the company and redesigning the marketing approach based on the shortcomings of the current being applied by Masters. Marketing Analysis 1. Marketing Environment Analysis – Micro Trends Micro environment- Mic... ... middle of paper ... ... Retrieved 15 May 2014, from :http://www.woolworthslimited.com.au/page/Who_We_Are/Our_Brands/Masters_Home_Improvement/ Retrieved 15 may 2014, from: http://miy.masters.com.au/about Taylor∗, S.A. (1994). An assessment of the relationship between service quality and customer satisfaction in the formation of consumers' purchase intentions. Journal of Retailing, Volume 70, (Issue 2). To Keep Your Customers, Keep It Simple,Patrick Spenner and Karen Freeman, retrieved 20 May 2014 from: http://hbr.org/2012/05/to-keep-your-customers-keep-it-simple/ar/1 What Is the Economic Environment in Business? - Definition, Importance & Factors, Shawn Grimsley, retrieved 20 may 2014 from :http://education-portal.com/academy/lesson/what-is-the-economic-environment-in-business-definition-importance-factors.html#lesson
Home Depot is the brainchild of Bernard Marcus and Arthur Blank and came about after both men lost their job in the home improvement industry in 1978 (Parnell, 2014). Home Depot has acquired several smaller home improvement stores in both the U.S. and abroad through the years which enabled it to position itself as the world’s largest home improvement chain (Parnell, 2014). Home Depot focuses on the do-it-yourself segment of the market and sells sells tools, construction products and services. Marketing is a strong point for the company. They are able to maintain a competitive advantage by keeping themselves available to their customers at all times. Home Depot has been using both online and offline marketing efforts. The internet has become a very useful tool for the company and part of the reason that they are leading the market in DIY stores. Home Depot currently provides DIY videos on YouTube and Vine that cover current topics that consumers are likely to be interested in. They also have social media pages on Facebook and Twitter, where they have a huge following. They provide online communities where actual employees answer consumer’s questions and provide assistance on
In the early 2000’s Lowe’s was rapidly intensifying its presence nationwide. The company carried a varied assortment of home improvement products and catered to the needs of retail as well as commercial business customers. Lowe’s expanded their reach by acquiring a 41-store chain, Eagle Hardware and Garden, and engaging in a strategic alliance with HGTV to obtain a more profound existence in their market (Rouse, 2005). By 2004, Lowe’s operated almost 1,000 stores with plans to continue expansion across the nation (Rouse, 2005). The company has a core competency in helping customers meet their home improvement needs at a low price. In order to use this core competency to gain a competitive advantage, the company has focused on key functional strategies. To continue their success, Lowe’s must specifically focus on marketing, logistics, and human resource management strategies.
Mike took over the lease of a building and wanted to transform it into a fully functional department store that offered a variety of products.
Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank in Atlanta, Georgia. With their store, Marcus and Blank revolutionized the do-it-yourself home improvement market in the United States. Home Depot began as a very basic store, operated in a large, no-frills warehouse. Home Depot carries over 35,000 products, with national brand names along with the Home Depot brand. At the start, Home Depot was able to offer exceptional customer service with knowledgeable employees who could guide customers through home renovation projects. Since its opening, Home Depot has experienced incredible growth, and today is North America's second largest retailer, and the largest home improvement retailer. Internationally, Home Depot has expanded into Canada, Mexico, and is beginning to operate stores in China. Home Depot's competition includes Sears, Ace Hardware and Lowes (the main competitor).
Home Depot operates in the home improvement retail industry that comprises of retailer that sell appliances, lumber, building material, kitten fittings and other home improvement products aimed at improving existing structures. Companies functioning in the home improvement industry buy products from retailer and manufacturer based all over the world, and then put those products for sale on the market to three types of buyers, generally characterized as: do-it-for-me, do-it-yourself, and professional customers. The home improvement retail industry is well established industry and is highly attractive and there is high level of price competition among the key players of the industry as the products lines are all the same.
The Home Depot organization has generated quick growth throughout its operating years. From the first store openings in 1979, the firm has created an exceptional growth pattern, opening their 100th store in 1989 and continuing on into the global market. The company feels that their unique culture and values are what gives them their competitive advantage in the marketplace. Their strengths are in the strong position they have with professional
Second, the rapid development of the Home centers such as The Home Depot, with prices 30% less than the traditional hardware store made Black & Decker to lose market share to Makita. As per Exhibit 2 we could notice that in the home center channel that represent 25%of the trades...
...mer base. Home Depot, as an organization, makes it evident that based on their success, the organization’s marketing strategy marks the shift that today’s consumers respond best to. Consumers no longer purchase products, they support organization they can realte to or they feel proud to support. Home Depot is an excellent example of the type of marketing campaigns that gains the highest return by its focus on branding the company as an organization with a heart, wanting to create a happy home for every type of American.
Part of the demographic of shoppers in Home Depot retail outlets need an item or product immediately, and that brand recognition and in stock purchase option is vital to maintaining the competitive advantage of the organization.
Demographics- An advantage of the home improvement industry is that you have a wide range of consumers. The main consumers of the home improvement industry are males from the age range 25-40.
The Home Depot provides the supplies to assist with the new ideas, techniques and simple way to improve your life and home. The Home Depot was founded in 1978 in Atlanta, Georgia, by Bernie Marcus and Arthur Blank. During this time, the store contained 25,000 products; compared to today’s store which carry 40,000 different home accessories and building supplies. In the beginning, the vision of the store was to be a warehouse full of products that sold to men and women, providing the best customer service. During the next five years The Home Depot placed stores in five different states, with Texas being one of them. Today the company has over 1,700 stores which are satisfying over 22,000,000 customers each week. These stores bring in approximately $64.8 billion ...
Williams, P. & Naumann, E. 2011, "Customer satisfaction and business performance: a firm-level analysis", The Journal of Services Marketing, vol. 25, no. 1, pp. 20-32.
Spenner, P., & Freeman, K. (2012). To Keep Your Customers, Keep It Simple. Harvard Business Review, 90(5), 108-114.
Marketing is a core pillar of an organization and contribute significantly in its prosperity through attaining the laid down targets as well as scope of development. The position of an organization is hugely based on its competitiveness and capacity to capture a significant portion of the market in relation to the prevailing needs of consumers. Interaction of the organization with the consumers and the potential consumer in the market arena is attained through the marketing wing of the organization (Ferrell& Hartline, 2012). The preferences of the consumer and avenues of satisfaction are aligned to the established marketing frameworks. However, the success of organization marketing is highly inclined to the marketing strategies formulated and adapted towards coping with competition and eventually enhancing firm competitiveness.
By altering Home Plus product offering the organization now has an opportunity to enter new markets. As a result the organization will attract new customers who prefer the high quality and cost products will offer. Additionally, Home Plus will have the opportunity to increase its profit by increasing its margins. Home Plus will now have excess revenue to reinvest in itself. Managers can use these funds to build new stores, purchase a wider variety of merchandise and provide better service for customers. Lastly, Home Plus will have the opportunity to diversify its product. Though it is cutting the discount products by half management intends to double the high end product that the store