Branding home improvement
-
Upload
vince-rubiera -
Category
Education
-
view
301 -
download
0
description
Transcript of Branding home improvement
Branding Home Improvement
Rachelle GinsbergIrene TzouganakisAdam BerkWayne AndermanVince Rubiera
Home Depot
• Founded in Atlanta by Bernie Marcus and Arthur Blank.
• Worlds largest home improvement chain; second largest retailer in the U.S.
• 40,000 products - 2,100 stores.
• Grew into five states within the first five years.
• Targets the DIY and pro markets with a broad product assortment.
Lowe’s
• founded in N.C. by H. Carl Buchan
• #2 U.S. home improvement chain
• 40,000 products - 1380 stores
• 1961, Lowe’s went public @ $12.25 a share.
• 1979, had 200 stores and was listed on the NYSE.
• 1982, had its first billion dollars in sales.
ACE Hardware
• Founded in 1924 by Richard Hesse, E. Gunnard Lindquist, Frank Burke and Oscar Fisher in Chicago
• 4700 stores • 1928: 11 retailers joined the cooperative• 1929: first warehouse, 25,000 square feet in Chicago. • 1986: Jon Madden became spokesperson (positioning)• #1 hardware cooperative in sales in the U.S.
Annual Sales
( $ millions)
90,837 46,927 3,770
Employees 364,000 210,000 5,000
Market Cap
( $ millions)
70,575 45,738 N/A
1 Yr Sales
Growth
11.4% 8.5% 8.8%
Market info
Schlage Double Keyed Deadbolt,
All Finishes
Target Product
Home Depot Experience
• Sample: 5 (Miami & Broward)• Inventory - target brand - mean: 25• Inventory - alternate brands - mean: 29• Negotiation – on sales > $5,000• Aisle configuration and presentation
• Closest to Aisle entrance at eye level or just below• Displayed on swivel boards after inventory , eye level • Display organized by finish, but crowded• Easy to find• Touch screen display (Kwikset)• Dimly lit and dirty
• Service provided• Product knowledge: Poor• Qualified associates, hard to find• Overall service: shallow and hasty
• Sample: 4 (Miami, Atlanta, Memphis & Broward)• Inventory - target brand - mean: 11• Inventory - alternate brands - mean: 8• Negotiation - None• Aisle configuration and presentation
• Displayed on swivel boards eye level, product hanging below• Organized with great detail• Easy to find• Well lit
• Service provided• Product knowledge: extensive• Qualified associates: greeted by master locksmith• Overall service: patient and thorough (personal shopper)
Lowe’s Experience
ACE Experience
• Sample: 6 (Miami & Broward)• Inventory - target brand - mean: 8 (2 stores had 0)• Inventory - alternate brands - mean: 16• Negotiation – Volume (manager discretion)
Service provided Good Bad
Knowledge High Very poor
Qualified Associates Patient and experienced None
Overall Service Excellent Very poor
Aisle configuration/presentation Good Bad
Display Pottery barn Very dirty, messy & on floor
Lighting Well lit Not well lit; ambient light
Aisle Clean and spacious Cluttered and narrow
Price Ranges
HD Lowes Ace
Schlage $31.54 – &42.84 $38.97 - $43.97 $45.99 – $49.99
Kwikset $15.47 – $25.97 $16.97 – $29.97 $24.99
Guard $14.99
Ace Brand $16.99 – $21.99
Ultra Security Plus $16.99 – $20.79
Oultra $22.39
Defiant $9.97
Pegasus $32.99 – $34.99
Baldwin $49.98
Tell $27.78
Gatehouse $11.97
Metrics
MetricMean Time
Home Depot Lowes ACE
Starting point to store parking lot 6:10 9:30 8:27
Parking lot to space 0:28 0:15 0:23
Space to front door 1:04 0:45 0:58
Total travel to store 7:42 10:30 9:48
Door to product aisle 1:21 1:00 0:47
Time to find product in aisle 1:50 0:12 0:31
Total product search 3:01 1:12 1:18
Collecting product to check-out line 0:30 0:48 0:21
Time thru line- self checkout 3:24 2:07* N/A
Time thru line- employee checkout 5:00 1:48 2:03
Service wait time- in aisle 4:20 Stationed 2:50
Service wait time- from another aisle 7:06 None N/A
Total Service wait 11:06 None 2:50