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Lee Valley Marketing PlanPrepared by: Lexy Correa and Jaymie OakesMCOM15-F15-101-4023-KKathy PattersonAMC - SLC1
Part 1: Marketing BackgroundWith a population of about 160,000 individuals, Kingston Ontario is known to be more of agovernmental city with historic buildings located downtown and military presence in the Eastend with CFB Kingston. In addition to this, there are 3 major learning institutions- QueensUniversity, St. Lawrence College, and Royal Military College. In the fall, the populationincreases due to an influx of students. Local downtown stores such as feature products thatappeal to their own niche markets. In addition to this, there are well-known brand name storesaround Princess Street such as Urban Outfitters, American Apparel, and Lululemon. In the Westend of Kingston there are box stores that include Old Navy, Puma, and Sears Home Store as wellas the Cataraqui Town Center shopping mall. Lee Valley is located in the west end with RioCanoutlets.With 18 retirement homes in the city, Kingston is known to be a peaceful place to retireespecially being situated right by Lake Ontario. Many people who are retired take up hobbies tokeep busy. In total there are about 42,800 individuals aged 60 that reside in Kingston.Company BackgroundFounded in Ottawa in 1979, Lee Valley Tools is a Canadian owned family business thatspecializes in woodworking, gardening, and hobbies. Unlike most stores that focus on making asale, Lee Valley focuses on long term relationships with customers by treating them as a friend.They empower the customer to make their own decisions by not forcing a sale on them. Instead,they tell the customer the truth about a particular product to ensure they will be satisfied withtheir purchase. Overall, there are only 16 locations in CanadaSWOT AnalysisStrengthsWeaknesses Quirky products Intimate store layout compared to industriallook Leisurely in-store experience Wide variety of products Niche market Offers a catalog for their products Opportunities Limited locationsHigher priceLow awareness with target marketMinimal advertisingThreatsExpand in KingstonAttract a wider demographicUtilize social media within advertisingCreate a loyalty program Competition (Home Depot in the same area) Lose customers due to high prices minimal advertising Little creativity skill for current ads2
Competitor AnalysisLee Valley’s indirect competitors are home improvement stores such as Home Depot, CanadianTire, and Rona. These stores cater to individuals who conduct their own home improvements andoffered gardening sections as well. They classify as indirect competitors due to the lowerstandard of luxury and specialty that their items have, versus Lee Valley. The layout of thecompetitor’s stores has a more industrial and warehouse like design, and filled with theirproducts. Where as, when you walk into Lee Valley it is very organized and more compact withminimal material on the floors. In addition to this, they have a variety of areas to show off theirproducts to customers.Direct competitors to Lee Valley, would be classified as specialty kitchen stores. Oderin KitchenSupplies is located in downtown Kingston, where they offer in store knife sharpening services,and quirky yet practical kitchen gadgets comparable to Lee Valley. Another high quality kitchenstore in Kingston is Paderno, located within the Kings Crossing fashion outlets. They featureelite non-stick bakeware, heavy duty kitchenware, as well as kitchen necessities such as utensils,coffee and tea kettles, and cookware sets. Like Lee Valley, they have a higher price point (locatedwith fashion outlets with a similar price) and quality items. Instead of focusing on quirkygadgets, they focus on quality and durability.Brand Analysis 1/3 of their sales are their own design Store has an intimate layout with separate sections for each product. This juxtaposes indirectcompetitors industrial layouts Higher price point Focus on gardening and woodworking hobbyists Make ordinary items sound extraordinary Only 16 locations in Canada Quirky practical items Focuses on long term relationships with customers by treating them as a friend Empowers the customer to make their own decisions. They do not force any sale on them, butinstead tells them the truth about a product3
Part 2: Target Market ProfilePrimary TargetDemographics Ages 30-55Attended post secondary educationHigher income to purchase Lee Valley’s productsSome working a part-time job to have room for hobbiesMarried or singleMostly CaucasianPsychographics Positive outlook Does not want to settle down and retire- wants to make the most of his life and be involvedwith hobbies, work, and his personal life Interest in woodworking, painting, gardening Active lifestyle Perfectionist Enjoys their leisure time in a peaceful environmentSecondary TargetDemographics Females aged 40-65Attended post secondary educationHigher income to purchase Lee Valley’s productsMarriedSome retiredMothers and/or GrandparentMostly CaucasianPsychographics Positive attitude/outlook on lifeInterest in gardening, bakingHobbyist that enjoys having leisure timeFamily Oriented- Enjoys spending time with their familyActive lifestyle4
Geographics West end of Kingston- Cataraqui areas, Bayridge, Lemoine Point East end of Kingston- Downtown Kingston, CFB Kingston, Suburban homes (GreenwoodPark) Surrounding areas of Kingston such as, Gananoque, Glenburnie, Wolfe Island and Sydemham,Napanee, Picton, and Bath Rural setting Suburban homesT HE C OR P OR AT IO N OF T HE C IT Y O F K ING S TO NPL AN N ING & D EV E L O P M E N T D E PA RT M E N T NEIGHBOURHOOD PROFILES - 2011 CENSUSKEY MAPMeters01,1502,3004,60011- Bayridge East12 - Gardiners13 - Waterloo Village14 - Lemoine Point15 - Auden Park16 - Henderson17 - Collins Bay Penitentiary18 - Reddendale19 - Strathcona Park20 - Alcan21 - Kingscourt22 23 24 25 26 27 28 29 30 31 32 -WilliamsvilleMarker's AcresRideau HeightsInner HarbourGrenville ParkHillendalePolson ParkCalvin ParkFairway HillsPortsmouthKingston Penitentiary33 - Sunnyside34 - Alwington35 - Queen's36 - Sydenham37 - Cataraqui River East38 - CFB Kingston39 - Ravensview40 - Greenwood Park/St. Lawrence South41 - St. Lawrence North42 - Kingston Mills43 - Joyceville/Brewer's Mills43Township of South Frontenac4213241404Loyalist TownshipshipIslands Town1 - Sharpton/Glenvale2 - Elginburg/Silvers Corners/Shannon's Corners3 - Glenburnie4 - Cataraqui Westbrook5 - Cataraqui North6 - Woodbine7 - Westwoods8 - Sutton Mills9 - Mile Square10 - Bayridge West9,200e ThousandLeeds and 24192126 27 21252228 293335363031 3432Howe Island37Lake Ontario3839St. Lawrence RiverWolfe IslandSource: 2011 Census of Population, Statistics CanadaBehaviour Response Loyal Response- Lee Valley focuses on creating long term relationships with the customer bytreating them like a friend. Benefits Sought- When a customer enters the store they expect leisure when browsing foritems. They search for customized items that will help complete any project they take on.5
Part 3: Positioning StrategyPositioning StatementLee Valley’s tools is like morning coffee for hobbyists. The kickstart to any project.RationaleLee Valley’s tools are oftentimes referred to as frivolous or unnecessary. After speculation andreading descriptions, the consumer figures out that they are practical and will get the job donewith ease. Lee Valley’s target market of enthusiastic hobbyists find these products thrilling andexciting- experiencing an adrenaline rush much like what you experience when drinking coffee.People spend a lot of money on coffee and question why they purchase so much, but it hasbecome an essential start for their day. Like Lee Valley’s tools, it is the kickstart to any project.Using a metaphor as a form of figurative language makes the positioning statement memorablein an individual’s mind. It is more effective to relate a product the target audience has alreadyexperienced (coffee)- especially if they have no prior knowledge of Lee Valley.Part 4: ObjectivesCreative BriefMarket Information Kingston is a governmental city that feature specialty niche market stores in the downtownarea, and box outlet stores in the west end. There are many individuals who are retired and takeup hobbies. Founded in 1979, Lee Valley focuses on the long term relationships with their customer bytreating them as a friend- only giving them a true opinion on the product. They feature quirkypractical products at a high price point. Lee Valley’s indirect competitors are DIY home improvement stores such as Canadian Tire,Rona, and Home Depot. Direct competitors are specialty kitchen stores such as Oderin andPaderno who feature high quality and quirky products, much like Lee Valley. Lee Valley will target enthusiastic hobbyists who enjoy spending their leisure timewoodworking and baking. To purchase products that have a higher price point, they haveattended post-secondary education. Lee Valley will have a media budget of 10,000 in the span of 3 months.6
Problem and Overall ObjectiveWith only 16 locations and limited advertising, Lee Valley is challenged with bringing awarenessto their company that features quirky products. Many people categorize Lee Valley with indirectcompetitors such as Canadian Tire or Home Depot, not knowing their target audience ispassionate hobbyists. Future growth depends on their ability to create advertising that will berelevant to their target audience and attracting more people.Advertising Objectives To increase an awareness level of 25 percent for Lee Valley in the defined target market within6 months of utilizing social media. To increase store traffic by 40 percent for Lee Valley in the defined target market within 3months of utilizing direct mail advertising. To re-image Lee Valley in the consumer’s mind by associating their products as being akickstart to any project.Positioning Strategy StatementLee Valley’s tools is like morning coffee to hobbyists. The kickstart to any project.Creative Objectives To portray the experience of an adrenaline rush the hobbyist will experience when using theproducts. To communicate a connection between coffee and the tools. The kickstart to any project theytake on. To communicate that their quirky tools are an essential part of starting any project.Creative StrategyLee Valley’s central theme is the thrill an individual experiences when using their products. Ourteam is relating the adrenaline rush to coffee and how it is the essential kickstart to their daymuch like their tools. Using positive and humorous appeal techniques will showcase their quirkyproducts that are unlike no other while setting the brand apart from their competitors. Their toneand style will be friendly and upbeat in manner to target their audience.Creative Execution Direct response mail advertising to catalog circulation listOnline video ads (Youtube)Minimal 30 second spot radio adsColor print ads (local newspaper)7
Media PlanMedia Budget 10,000 in the span of 3 months.Media Objectives Lee Valley will target enthusiastic hobbyists who have an interest in baking and woodworking. We will convey that Lee Valley’s quirky tools are a kick start to any project a hobbyistattempts. The prime time to advertise is from 4-6 PM when individuals get home. In addition to this, wewill be advertising during the morning when an individual drives to work and wakes up withtheir morning coffee. The priority markets are in their cars travelling and within their homes getting ready forsupper/breakfast. We will send direct mail at the beginning of every month for upcoming events and promotions,as well as update social media daily to inform customers of current sales promotions.Media Strategy Lee Valley will use a profile matching strategy to target their audience through a newspaperthat interests the target market, social media platforms, and minimal radio ads at specific times. We will have a key market coverage in Kingston and surrounding areas using daily newspaperssuch as The Whig Standard in the home and marketplace section. As well as local radiostations such as BOB FM (80’s, 90’s) and Kix 93.5 (country). Lee Valley will use a skip schedule to stretch the budget over an extended period whilemaintaining the effect of advertising in the marketplace. Lee Valley needs to attract a largertarget audience and it will be beneficial to advertise for as long as they can. The user will engage with the brand on social media by commenting and liking posts,newspaper when actively reading specific sections such as the home and marketplace. Localradio stations such as BOB FM and Kix features music the target audience enjoys and they willbe actively involved with listening. Lee Valley will use mostly local newspapers, social media, and radio to advertise. The targetdemographic is older and therefore reads the newspaper more. Social media is inexpensive touse and is based on a budget of your choosing. This is beneficial because you can specify yourtarget market and will save money. Lastly, we will be using radio at specific times such as themorning when the audience is waking up and driving to work, and from 4-6 when the audiencewill get home. Our team will not be using television because it is very expensive and we have a minimalbudget. We have rejected out of home advertising such as billboards and transit ads since LeeValley will already be using radio. This will have a greater and more specific coverage area.We have also rejected magazines because of a larger cost and newspaper will cover theKingston area effectively.8
Part 5: Marketing Communications Mix ElementsEvent MarketingEvent marketing is a form of experimental marketing and Lee Valley will use this to bettereducate customers and communicate that their products are a kickstart to any project. With LeeValley being a massive specialty
SWOT Analysis Strengths Weaknesses Quirky products Intimate store layout compared to industrial look Leisurely in-store experience Wide variety of products Niche market Offers a catalog for their products Limited locations Higher price Low awareness with target market Minimal advertising Opportunities Threats
