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Home depot industry analysis and strategy
Notes on branding a product
Home depot industry analysis and strategy
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Once Home Depot’s marketing plan contains a thorough description of the scissor lift, it will then focus on the branding, pricing, and distribution of the lift. The plan will also need to include a product branding and pricing strategy, as well as examine how the pricing strategy supports the branding strategy. In addition, Home Depot will prepare a distribution channel analysis from which it will create a distribution strategy, determine whether the company is going to use a push or a pull strategy, and how the distribution strategy fits the product. Branding Strategy A brand is utilized by a company to differentiate its products from others in the market. Some techniques for accomplishing this are through the use of distinguishing logos, names, color schemes, and slogans. An effective branding strategy is one of the most important components for gaining a significant advantage in a progressive market. Basically, a company brand is its promise to its customers about what can be expected from its product and how it differentiates from the competitors. The branding strategy is the part of the marketing plan that explains how and to whom the company proposes on conveying its brand messages. It will also explain where the company plans to advertise and what it will publicize both visually and verbally (Williams, 2013). Home Depot’s marketing plan will contain domestic and global branding strategies and will be a collaboration of brand messages from both Home Depot and Reach the Top®. Home Depot, well-known by its big, bright orange box logo, is a retailor of numerous popular brands of construction and home improvement products. Reach the Top® manufactures a popular brand of ladders and scaffolding already sold by Home Depot, and... ... middle of paper ... ...urselfers. The distribution strategy identifies the major channels through which the product will delivered and pushed through to the consumers. Works Cited Distribution Channel. (2013). Retrieved November 18, 2013, from Investopedia: http://www.investopedia.com/terms/d/distribution-channel.asp Iacobucci, D. (2012). Mm². (2nd ed., p. 59). Mason, OH: Cengage Learning. Markgraf, B. (2013). Distribution Channel Strategies. Retrieved November 18, 2013, from azcentral.com: http://yourbusiness.azcentral.com/distribution-channel-strategies-9101.html Suttle, R. (2013). Definition of Pricing Strategy. Retrieved November 16, 2013, from Houston Chronicle: http://smallbusiness.chron.com/definition-pricing-strategy-4686.html Williams, J. (2013). The Basics of Branding. Retrieved November 17, 2013, from Entrepreneur: http://www.entrepreneur.com/article/77408#
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.
The founders of The Home Depot, Bernie Marcus and Arthur Blank, set the foundation of their company on eight core values that are transferable to any business. Their tools for success included:
Home Depot’s slogan, “More saving. More Doing.”, promotes Home Depot’s marketing strategy with more appeal for customers with less money to spend. Home Depot carries major brands but also carries Home Depot exclusives and proprietary brands which save customers money. Home Depot carries major brands like Dewalt, Hampton Bay, Homelite, and Martha Stewart Living. They also carry proprietary brands such as Ryobi, Rigid, Behr, LG and Toro.
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
Before comparing each company’s benefits plan there should be some discussion on the three companies’ history. According to lowes.com, Lowes Home Improvement was founded in 1946, there are more than 1825 stores, they employ more than 240,000 people, and it is the second largest home improvement retailer in the world (n.d.). According to homedepot.com, The Home Depot was founded in 1978, which makes it fairly young when compared to the other two companies, yet it is the largest home improvement retailer in the world (n.d.). Acc...
...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.
In every given business, the name itself portrays different meanings. This serves as the reference point and sometimes the basis of customers on what to expect within the company. Since personality affects product image (Langmeyer & Shank, 1994), the presence of brand helps in the realization of this concept. Traditionally, brand is a symbolic manifestation of all the information connected with a company, product, or service (Nilson, 2003; Olin, 2003). A brand is typically composed of a name, logo, and other visual elements such as images, colors, and icons (Gillooley & Varley, 2001; Laforet & Saunders, 1994)). It is believed that a brand puts an impression to the consumer on what to expect to the product or service being offered (Mere, 1995). In other application, brand may be referred as trademark, which is legally appropriate term. The brand is the most powerful weapon in the market (LePla & Parker, 1999). Brands possess personality in which people associate their experience. Oftentimes, they are related to the core values the company executes.
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.
Since the home improvement market is highly competitive, Lowe’s needs to apply the best strategies to deal with Home Depot’s rivalry. This rivalry is as a result of the identical nature of the products handles by the two companies. The company should structure its distribution framework to pull down costs as the firm adjusts to changes in demand. The company should set a 6-month budget for research and development projects. To outperform Home Depot, Lowe’s should seek to expand its in-store services as well as the international operations.
Home Depot and Lowes sell basically the same products and are members of the dame industry, home improvement industry. Covalent Marketing article states that the way that you portray yourself to consumers will very likely determine the type of people that decide to associate themselves with your brand, and shape the consumers that you target (2016). The article also pointed out that Home Depot marketing is directed toward the professional home improvement customer and Lowes is directed towards the novice do-it-yourself customer (Covalent Marketing, 2016). The marketing strategies are geared towards each type of customer respectively. Home Depot has a more rugged look and feel catering to contractors and professional builders which evident
Due to my interest in the company I am currently employed with I will be discussing The Home Depot’s governance structure as well as their strategic planning. The Home Depot is a public company and all information about them as well as their governance documents are public information and can be found on their website. The website opens up with the following statement: "The Home Depot strives to be employer, retailer, investment, and neighbor of choice in the home improvement industry. Corporate governance is part of our culture and is founded on our daily commitment to living values and principles that recognize our ethical obligations to our shareholders, associates(employees), customers, suppliers, and the communities in which we operate."
Brand; - brand is known as uniqueness in term of what products or service the company provides. Brand is also set of insight or image that represents seller. Brand defines symbol, name, term or feature of company’s service or goods. Example of popular brand is apple, Amazon and Samsung.
In the current issue of Better Home and Gardens (BHG) magazine, published on October, 2004, there is an advertisement presenting how BHG and The Home Depot work together to provide new ideas and products. This is a win-win situation for both companies.
The range of products should cover the total home area, indoors as well as outdoors, with fixed furniture or loose furniture. The profile a company will want to bring to the table will give competitors and buyers a direct image of the company. There should be a wide selection of products along with the quantity of stock to sell to all customers. Quality and price are also an important factor but should be left up to the consumer to decide what they are looking to do in the long run.
When analyzing an organization’s target market, the first step is to understand the business and what they hope to achieve through their marketing strategies. Targeting and positioning strategies consist of analyzing and identifying segments within a given product-market, choosing which segment or segments to target, and developing and implementing a positioning strategy for each targeted segment (Cravens & Piercy, 2009). The company’s target market determines what customer group or groups the company wants to serve (Cravens & Piercy, 2009). Analyzing IKEA’s target market allows the company to determine if their marketing strategies have successfully targeted their intended customer group or groups. Discussing the company’s positioning strategy helps determine if the strategy is effective or if the company must make improvements strengthen their positioning strategy. The company must determine if their targeting and positioning strategies may be lacking. If the company’s targeting and positioning strategies are lacking, the company must determine what they must do to strengthen their targeting and positioning strategies.