The Lowe’s organization has long been successful in reaching its broad based customers through national television, radio announcements, newspapers, magazines, direct mail, emails, and the internet.The organization is seeking to gain more consumers through Multicultural marketing outlets to reach even more customers. Their ads are designed to promise a broad product selection and tout their pricing strategy. Lowe's tag line is "everyday low price (EDLP)" which is their pricing strategy that promises customers everyday low pricing without the need to wait for sale price events or comparison shopping. EDLP to a pricing strategy in which a retailer offers its customers consistently low prices on every product, without running sales or price promotions. The store sets prices fairly and then maintains them for a long time, …show more content…
basically until costs change significantly for the company. In other words, this pricing strategy benefits the consumer.
Lowe’s has maintained their pricing strategy with the advantages to the company, as well. The Lowe’s organization is able to focus more on marketing quality and less on sales advertisements. There is less sales fluctuation which helps out with staffing and their business practices, in general, become easier. It goes without saying that Lowe’s has a distinct advantage using this pricing strategy, simply because of its name: Lowes, plus the letter “t”, equals lowest, as in lowest pricing available. It looks like the strategy is continuing to work as 2017 is shaping up to be a better year than 2016 for the Lowe’s organization. Net earnings for the first three quarters were $2.9 billion, versus $2.4 billion for the same timeframe in 2016, according to the company’s Nov. 21, 2017 report (News Release). Lowe’s President and CEO, Robert Niblock, stressed at a conference that Lowe’s intends to be price competitive, whether the competitor is another store or an online retailer. In other words, the Lowe’s organization will always compete in the price wars as they continue to keep the consumer in
mind. 5. Location Strategy Lowes is continuing in its struggle to catch Home Depot in store locations. Currently, Lowes has identified Canada and Mexico as having huge potential growth markets with values at $40 billion and $30 billion, respectively. Lowe’s growth strategy has given them the position of second and third largest home improvement in those countries at this point. If Lowe’s can take advantage of these open markets, it could get a jump on finding the best locations before Home Depot does, giving them the sustainable competitive advantage. A good location chosen these countries already has people in the target market ready to shop at Lowes. Having 1,750 stores and 39 facilities throughout North America, Lowe's has developed an extensive evaluation process for each potential site. Its evaluation is based on hundreds of factors including population growth and access to major roads and interchanges, and their focus is always on responsible development. During the fiscal year 2017, the company expects to add approximately 25 home improvement and hardware stores. 6. Retail customer communications strategy The Lowe’s organization believes their retail customer experience strategy should be focused on improving things that people don't even know they want improved. According to Kyle Nel, executive director of Lowe's Innovation Labs, Lowe’s is paying special attention to the customer experience, customer service and how they are embracing emerging technologies. Lowe's core customers are mainly those who are a little bit older, and the millennial consumer who may be a first-time home buyer. Keeping them in mind, Lowe’s has a presence on five major platforms: Google Plus, Twitter, Facebook, YouTube, and Pinterest, where they use consistent branding across all platforms. Lowe’s app has the tagline, “Never stop improving” because it works for all stakeholders and serves as a constant reminder. According to Lowe’s is looking for ways to create a single, relevant customer experience across all channels. For example, on their Facebook page they encourage interaction, even allowing customers to express their displeasure. An important next step is encouraging customers to share content. I give Lowe’s high marks for creating a more tailored and helpful customer experience. For Lowe’s to be relevant, the organization had to find a way to provide utility on their customer’s terms. This means finding a way to connect their needs with what you have to offer. One way Lowe’s has done this is through their immersive design and visualization tool, the “Holoroom How To”. This is an on-demand virtual reality skills clinic that is currently available in a few of their stores. Also, with the retail customer in mind, Lowe’s has recently introduced in-store navigation app that uses AR via Google's Tango to provide indoor mapping to customers via smartphones. "With Lowe's Vision: In-Store Navigation, we've created a more seamless experience using breakthrough technology so customers can save time shopping and focus more on their project." One of Lowe’s new retail consumer strategy is "The Make Your Home Happy” campaign. “It is a way for Lowe's to communicate the different ways they go above and beyond to help people bring their home improvement visions or projects to life," said Tim Bayne, executive creative director at BBDO New York. He noted that the marketing "allows us to inject some humor and personality that resonates with our emerging customers, without alienating our current customers." 7. Store layout and atmospherics Lowe’s has a clear and well-defined strategy to put customers first and offer innovative home improvement products and services to make their lives easier. The shopping environment in the stores influences every customer’s emotional state, which in turn determines a specific behavior. Lowe’s organization has managed to use that knowledge to target women. Michael Levy, a retailing expert at Babson College says, "Lowe's has really seized on the opportunity to target women by paying attention to atmosphere and aesthetics," says Levy. "These are things that the average 'tool guy' doesn't pay attention to." By allowing the customer to visualize a project, with easy access to the items needed, Lowe's lighting aisle and other design areas use such "atmospherics" to increase the willingness of customers to buy. Lowe's relies on two prototype stores, a 117,000-square-foot version designed for larger metropolitan markets and a 94,000-square-foot model suitable for small and midsized markets. Lowe's plans out its stores with Web-based software from Marketmax, a retail analytics company that provides advanced retail planning. Lowe’s is able to use the collected data, such as sales and household income to develop a store-layout that can be used in different sections of a company. This allows managers to use the software to get the layout. Lowe’s has already discovered that better space strategy drives sales and now suppliers can get in on that strategy. Because of the accessibility of the layout, Lowe’s is able to provide its national suppliers access to its store layouts for the aisles that they control. The suppliers then have ownership in the placement of their own products.
The method of depreciation the company uses is the straight-line method. The straight-line method is the most common method of calculating deprecation; therefore, it makes logical sense that this is the method that Lowe's Home Improvement uses.
Established as the older company of the two, Lowe’s ranks forty-second as a Fortune 500 company. Established in 1946 as a small hardware business, Lowe’s has grown into a 40,000 product, global market enterprise that consist of 1,710 stores nationwide expanding into the countries of Canada, Mexico and Australia (Lowe's Internal, 2010) Home Depot, founded in 1978, is the fastest growing retailer in the United States. Ranked twenty-ninth as a Fortune 500 company, Home Depot continues to remain the number one do-it-yourself retail store in America. These two companies may sell products of the same nature, but comparing their Code of Ethics is their way of setting themselves apart. (Home Depot Internal, 2009)
Per Kalogeropoulos (2016), the company is better able to ensure product availability while managing their costs because of their latest logistics initiative. They have recently created a network of deployment centers that reduces the time between when the product leaves a supplier to when it hits the shelf at the Home Depot store which drives profits higher. Parnell (2014), relays that companies who use low-cost strategy seek distribution channels that minimize cost. Home Depot’s new logistics initiative provides the company with economies of scale and a market advantage because it adds to their low-cost
Opening its doors for the first time in 1946, Lowe’s is now the second largest home improvement chain in the world, operating over 1,800 stores in the United States, generating $56.2 billion in sales and $2.6 billion in net income for 2014 (Lowes Newsroom, 2015). Employing around 265,000 personal making them one of the top employers in the nation, there is no question that Lowe’s must be doing something right. According to Lowes Newsroom, “Lowe’s professional customers represent approximately 30 percent of total sales, approximately 16 million retail and professional customers are served each week. (2015, para 3) “Never Stop Improving”, is Lowe’s slogan; encouraging employees and customers to work together to maximize their in store
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.
Lowe’s is a large chain of home improvement outlets with more than 1840 stores in North America. Their corporate slogan is ‘Never Stop Improving’
Lowe’s employs more than 260,000 people in more than 1830 stores; these employees are trained to provide exceptional customer service as well as receiving up-to-date product knowledge to assist customers with their improvement needs. In addition, Lowe’s has upgraded store information technology infrastructure to assist employees in accessing product data faster and easier. This is accomplished by providing the sales team with computers that have Internet access, and Ipad’s and Iphone’s loaded with specialized apps (Lowes, 2014).
There are a number of smaller players but lack the public existence and retail footprint of their larger counterparts. With such high levels of market absorption, both HD and LOW enjoy high bargaining power with suppliers of goods. The two companies vary significantly in terms of the strategies they employ to compel consumer traffic. Home Depot centre of attention is customer service, while Lowe’s offers discounts to improve sales. Home Depot has determined on customer service as a driver to grow customer traffic and sales, Lowe has battled mainly on the basis of lower prices. Home Depot has a status for lesser prices and more pro-friendly impression where Lowe’s is trying to capture the traditional do-it-yourself customer by trying to appeal the female customer, who the company declares, is responsible for eighty percent of home improvement
Dr. Carl Hart had a very rocky childhood and through his own determination to not repeat the past has gotten to where he is now in life. He comes from a broken family plagued by domestic violence, divorce, and a lack of support while he was growing up. Dr. Hart’s views on; social support, addiction and the physiological effects on the brain, factors to take into account when assessing drug abusers, drug policies influencing discrimination, and decriminalizing drug use are well articulated through his book High Life; in which enabled the audience to have raw reactions to his personal views.
Lowe’s Companies, Inc. is the fourteenth largest retailer in America, and overall the world’s second largest home improvement retailer. They are the 108th ranked corporation on the Fortune 500 top corporations list. With an impressive in store stock of 40,000 home improvement items on hand, ranging from lumber to Home décor items, plus an additional 400,000 home improvement items available through a special order program. Lowe’s provides a onetime stop for all home improvement needs, for both the Do-It-Yourselfer, and the ever-expanding market of the Commercial Business Customer.
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.
It should capitalize on the cost-leadership strategy and improve its customer service to edge out Ace and steal a chunk of its market share. Lowe’s should also seek to negotiate for favorable contracts with the major Australian suppliers on a cost-advantage level and thus increase its bargaining power. Moreover, such a strategy would create an entry barrier for Australian start-up competitors who might seek to use their home advantage to outcompete
By being a customer oriented company Lowe’s uses the information that is given to them to help build upon their great reputation. To help show that Lowe’s is willing to help others they continue to help with disaster relief not only by donating money and supplies but also help rebuilding. Compared to its rivals I am certain that Lowe’s will be able to carry out its goals and missions. With having one of the best customer service programs in its market Lowe’s does its best to not only help its customers out as a whole but also on an individual level. Lowe’s will continue to grow across the nation to ensure to help you with your every home improvement need.
The focal article I chose is Dynamic Pricing: The Future of Ticket Pricing in Sports by Patrick Rishe published on January 6th, 2012 through Forbes. Pricing is an important component of the marketing mix because it is the element where managers have expectations of customers paying their money to the organization (Kopalle, 2009). Compared with other elements of the marketing mix, pricing has the advantage because there is a high level of flexibility. The flexibility is because prices change continually (Smith, 2008). The opportunity of quick price changes also has disadvantages. For much of the 20th century, the vast majority of sport managers employed one of two pricing strategies: the one-size-fits-all approach, where every ticket price
Most of PepsiCo’s products are priced based on the market-oriented pricing strategy. The company’s objective in using this strategy is to ensure that its prices are competitive, based on other firms’ prices and prevailing market conditions. On the other hand, Hybrid Everyday Value is PepsiCo’s pricing strategy for some of its products, especially soft drinks. The company’s objective in using this pricing strategy is to close the gap between regular/everyday prices and discounted holiday prices. In this way, PepsiCo expects consumers to buy more of its soft drinks every day and not just during the holidays.