MKT 315 RS Marketing Plan Analysis and Presentation Part 2 Research PDF

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Marketing Plan Analysis and Presentation: Part 2 – Research Template Directions: Using the company and research sources from the Topic 2 assignment as a starting point, conduct additional research to acquire information related to consumer behavior, product or service, and price associated with the company you selected. In the “Research Summary” section, discuss how the company could use these types of research findings to develop a marketing plan in order to meet the company marketing objectives and business needs. Information to be Research Findings Resource Citation Information Researched Home Depot caters to the DIY-ers and Soni, P. (2015). Home Depot’s Target Market and professionals. Each store prides itself in Customer Base. Retrieved from https://mark providing the best customer service possible. etrealist.com/2015/03/home-depots-targetBy having a large selection of products, market-customer-base/ customers feel as though they have more customizable choices for their project. For the past 5 years, Home Depot has been steadily focusing more on increasing their target market to the DIY-ers. Due to the pandemic, people Describe the customer that lost their jobs can’t afford to hire segments and target professionals to do projects or work on home markets. renovations. By catering to the DIY-ers, Home Depot can significantly increase their profit over time. “The company believes in providing the customer with the appropriate product assortment and quantities at the right price. It also believes in having trained employees on hand to help customers make appropriate choices” (Soni, 2015). Describe characteristics of the target markets that

Major characteristics of Home Depot’s target market include being specially trained for the

Gurulocity. (2017). 7 Characteristics to Define Your Marketing Target. Retrieved from

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will affect product/service and pricing decisions.

Describe how the company differentiates its product and positions its brand.

Describe a consumer buying behavior model for this company and

department associates are placed in, knowledgeable on products, competitive pricing, and store locations. Home Depot is currently trying to focus more on customer needs. “Needs are customer/consumer requirements, wants or desires” (Gurulocity, 2017). Geographic: Products vary on store location and size. Rural cities will carry products more specific to gardening and landscaping whereas urban cities will focus more on interior design and contractor supplies. Demographic: Appeals to all demographics Psychographic: Product selection appeals to all customers both amateurs and professionals. “Home Depot’s intensive growth strategies specify the approaches used to sustain business growth in the international home improvement retail market” (Smithson, 2017). The company has been using its Everyday Low Price slogan to attract customers since the store opened in 1979. Home Depot also utilizes its large online product selection to its advantage. This is their “Buy Online Pickup In Store” marketing position. If a customer is looking for a product in store and its unavailable, a store associate can order that product online and have it delivered right to the customers home or pick it up at their nearest Home Depot. Home Depot as a home improvement store is more geared toward individual consumer buying. Customers shop at Home Depot 2

https://gurulocity.com/define-marketingtarget/

Smithson, N. (2017). Home Depot’s Generic Strategy, Intensive Growth Strategies. Retrieved from http://panmore.com/homedepot-generic-strategy-intensive-growthstrategies

Pearson, B. (2019). Home Depot is Rehabbing The Shopper Experience. Can Other Retailers Do The Same?. Retrieved from

brand.

Describe the product mix.

Describe the product lines.

because it is their one-stop shop to get all the project supplies and professional help they need. “Home Depot’s integration strategy is designed to hone in on what shoppers want most: synthesized access, product availability and pinpoint delivery” (Pearson, 2019). Home Depot acknowledges the needs of its customers and adequately supplies the necessary products for both DIY-ers and its pro-customers.

https://www.forbes.com/sites/bryan pearson/2019/01/16/home-depot-isrehabbing-the-shopper-experience-can-otherretailers-diy-the-same/?sh=748476544ddb

Home Depot’s product mix varies from store to store. However, there is one consistent aspect with each store, the associates are specially trained for each department they’re in. For example, an associate working in the hardware department is specifically trained for that department only. “While Home Depot's core business is brickand-mortar, it also has expanded by purchasing online companies with a track record of strong customer focus” (Johnston, 2020). Each Home Depot also houses its own house brands which are Home Decorators, The Company Store, Interline Brands Inc. Husky, and more.

Johnston, M. (2020). 5 Companies Owned by Home Depot. Retrieved from https://www.i nvestopedia.com/articles/company-insights/ 082416/top-7-companies-owned-home-depo t-hd.asp

Home Depot organizes their stores by department and each department houses specific products. For instance, the hardware department houses products such as saws, hand tools, power tools, screws, nails, and much more. Within each of these products are many different product brands. “Home Depot

Home Depot. (n.d.). About Us. Retrieved from https://corporate.homedepot.com/about

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currently stocks more than one million products for the DIY customer and professional contractors” (Home Depot, n.d). The service process for a Home Depot employee begins by greeting the customer and finding out the reason that brought them in the store. If the customer came into the store because they were looking for products and supplies for a project they were working on, the associate is supposed to help them locate those supplies and break down the project into steps. Describe the service Every employee is also required to be in an processes. orange apron which signifies that they’re an employee with Home Depot. Employees must always be respectful and helpful with customers. “The key to our success is treating people well. We do this by encouraging associates to speak up and take risks, by recognizing and rewarding good performance and by leading and developing people so they may grow” (Home Depot, n.d.). Discuss physical evidence “The main characteristics of Home Depot’s of service, service scape, organizational structure are: geographic and ambiance. divisions, global functional groups, and global hierarchy” (Greenspan, 2018). The stores are each laid out in the same concept, but depending on the layout of the store, can either vary from left-to-right or right-to-left. Every store begins with gardening and ends with lumber, but this can either start on the left side of the store or the right side of the store. The stores always have the Home Depot staple orange color spread throughout the store. 4

Home Depot. (n.d.). Our Values. Retrieved from https://corporate.homedepot.com/about/value s

Greenspan, R. (2018). Home Depot’s Organizational Structure Analysis. Retrieved from http://panmore.com/home-depotorganizational-structure-analysis

Discuss the roles of company employees in service delivery.

Define the company’s pricing objectives and discuss whether the objectives are profit- or sales-oriented.

Displays are always prominent, noticeable, and change with the current season. Stores have bright lighting so it is easy to see and aisle signs are clearly labeled and easy for customers to know where they need to go. “The heart of Home Depot was the expertly trained floor associates who could teach customers how to handle a power tool, change a fill valve or lay tile. It wasn’t enough to sell or even tell — associates also had to be able to show” (Home Depot, n.d.). Associates are expertly trained in the department they’re assigned to. Employees are told to always be respectful to customers and help them to the best of the associate’s ability. For DIY-ers, associates are to guide those customers to the correct products and supplies to do their current project. Associates are expected to go above and beyond for customers and provide an excellent customer service interaction so that customers will continue returning to the store to buy more products and supplies for future projects. Home Depot is a sales-oriented business whose goal is to be the number one selling home improvement business in the world. The company has marketed products to two specific customer segments: DIY-ers and “pros”. The “pros” are professional contractors, laborers, interior designers, landscapers, and plumbers. By securing their customer loyalty, Home Depot can continue to rake in significant profits 5

Home Depot. (n.d.). The Home is Where Our Story Begins. Retrieved from https://corporate.hom edepot.com/about/history

Hensel, A. (2019). How Home Depot and Lowe’s are Modernizing Their B2B Business. Retrieved from https://digiday.com/retail/home-depotlowes-modernizing-b2b-businesses/

from both DIY-ers and pros each fiscal year. “Lowe’s reported $68.6 billion in sales during fiscal year 2018, while Home Depot reported $100.9 billion in sales” (Hensel, 2019).

Provide an example of current company pricing strategies.

Describe pricing tactics (discounts, etc.) that are used to drive short-term demand

Home Depot uses the Everyday Low Price (EDLP) pricing strategy. The company’s first stores advertised “Everyday Low Price” to attract customers (Rowland, 2017). The slogan has become a well-known staple in the company’s commercials and markets very well to customers.

Rowland, C. (2017). Home Depot’s Marketing Mix (4P’s Analysis. Retrieved from http://panmore.c om/home-depot-marketingmix-4ps-analysis

Home Depot uses its price match guarantee as its primary pricing tactic. By having a price match guarantee, customers feel confident that they are receiving the best price for the product they’re buying. Since the pandemic began, Home Depot has adapted well by utilizing their large product selection online. “Much of what stores like Home Depot sell is difficult to ship -- think stand-alone grills and wooden beams. Where that leaves those stores in the digital age: with BOPIS. Using this method, customers can still avoid the lines and shop from home, then easily pick up their packages in the store” (Saibil, 2019).

Saibil, J. (2019). The Smart Strategy Home Depot Uses to Grow Sales. Retrieved from https:// www.fool.com/investing/2019/12/08/thesmart-strategy-home-depot-uses-to-growsales.aspx

Research Summary: In 250 words, discuss how the company could use these types of research findings to develop a marketing plan in order to meet the company's marketing objectives and business needs. Home Depot for the past 5 years has been determined to expand its customer target market more toward the at-home builders rather than just professional. The age demographic for professionals is usually 35+ whereas the age group for DIY-ers is typically between 18-30. Home Depot can utilize the craze of social media to their advantage by paying well-known influencers to sponsor their 6

company. By doing so this would significantly increase their sales and strengthen their target market toward the DIY-ers. To assist in their progress to become more environmentally friendly, Home Depot could also cut plastic usage significantly by selling eco-friendly and biodegradable materials in certain products. Another way Home Depot could help the Earth’s environment is by taking a small portion of their profit each year and donating it to foundations that are dedicated to replanting trees in areas that have recently suffered immense damage from fires.

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