WIXLIB

Buying and Merchandising OperationsResearch Project

Located in Monument, CO Jackson CreekShopping Center Products Include: Surrounding businesses include Wal-Mart, Kohl’s,Chili’s, It’s a Grind, & various other smallrestaurants and storesPlumbing, Electrical, Building Supplies, Paint,Landscaping Materials, Tools, Appliances, HomeDécor and LightingServices Include: Tool Rental, Delivery, Installation

To analyze the effectiveness of the currentbranding activities used by Home DepotDetermine effectiveness of current use of logo,advertising, and social mediaIdentify potential improvements in thebranding activities used by Home Depot

Internet Research (secondary data) Management Interview (primary data) Company background and historyIdentification of current branding activitiesCustomer reviews and feedback regarding Home Depot’sproducts, services, and customer serviceEvaluation of current branding activitiesExplanation of current brand image and missionFuture development of brandCustomer Survey (primary data) Effectiveness of current logo, advertising, and socialmediaCurrent brand image of Home DepotPotential improvements that would improve products,services, and brand image

Residents of Tri Lakes area (87% live within a 10mile radius of the store)80% maleMiddle to upper income92% own single family homesPsychographic Characteristics Desire to improve home interior or exteriorCompleting a home improvement projectImproving home landscapeDesire to increase property valueNeed to repair something in the home

Current logo and sloganUse television and newspaper advertisingSeen by customers as a “do it yourself” storeSales people are sometimes helpful, sometimesnot availableUse of social media is limited

Website: www.homedepot.comFacebook fan pageTwitter pageYouTube videosMonthly emails to credit card holders

42% of customers surveyed like the selection ofproducts and services38% feel brand image is positive43% rated customer service as good or excellent34% have seen television or newspaperadvertisements8% are fans on Facebook9% receive monthly emails12% have viewed YouTube videos

57% of customers rated customer service as fair orpoor42% had a difficult time finding merchandisewithin the storeOnly 18% have used website to purchase productsSocial media use is low – on average, one in tencustomers use social media related to Home DepotNo links to YouTube videos on website – 75% ofcustomers said they would view videos, ifavailable on website

Lowes has registration featureLowes website is less clutteredLowes has better selection of appliances onwebsiteLowes has better selection of lighting onwebsiteLowes has “how-to” videos in each productcategoryLowes has “Clearance” section on website

Improve brand image of Home Depot Increase number of customers accessing website forproduct information and purchasing productsBenefits: increased awareness of Home Depot’sproducts, services, programs, and promotionalevents; increased customer traffic; increased sales &profits; increased customer loyaltyIncrease amount of “how-to” information onwebsite Benefits: increased effectiveness of advertising;increased awareness of products, services, and storeprograms; increased sales & profits

Increase interaction with customers Benefits: improved products, services, customerservice, store organization, advertising; increasedcustomer satisfaction; improved reputation;increased sales & profits; increased customer loyaltyUse more contemporary logo and slogan Benefits: will attract a younger customer base andincrease sales

Create updated logo and advertising sloganAdd customer registration to website – offerweekly coupons and sale information as incentiveSemi-monthly electronic newsletterProduce new “how-to” videos from in-storedemonstrationsAdd “how-to” videos to each product categoryOffer incentives on website – coupons & frequentbuyer discountsAdd rental equipment scheduling request featureto websiteAdd “Clearance” section to website

Promote in-store demonstrations on socialmedia sites and through email; offer incentivesfor attending demonstrationsPromote Eco-Options program throughwebsiteAdd blog to website Discussion topics include: electrical repairs,plumbing repairs, flooring installation, landscapingtips, selecting appliances, and others.Summarize & distribute blog feedback to staff

Estimated Costs of each Activity:

“How-to” videos will give customers confidence todo home repairs/improvements Leads to increase sales of productsRegistration and newsletter will provide incentivesfor purchasing and will increase sales of products,as well as develop loyal customersIn-store demonstrations increase product salesEco-Options information will attractenvironmentally conscious customersBlog will improve customer service, leading toincreased customer satisfaction and salesClearance section on website will increase salesRental Equipment scheduling will increaseequipment rental revenue

Improve brand image of Home Depot Increase number of customers accessing website for product information and purchasing products Benefits: increased awareness of Home Depot’s products, services, programs, and promotional