branding home improvement

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  • 1. Branding Home Improvement Rachelle Ginsberg Irene Tzouganakis Adam Berk Wayne Anderman Vince Rubiera

2. 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. 3. Lowes founded in N.C. by H. Carl Buchan #2 U.S. home improvement chain 40,000 products - 1380 stores 1961, Lowes went public @ $12.25 a share. 1979, had 200 stores and was listed on the NYSE. 1982, had its first billion dollars in sales. 4. 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. 5. 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 6. Schlage Double Keyed Deadbolt, All Finishes Target Product 7. 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 8. 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) Lowes Experience 9. 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 10. 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 11. Metrics Metric Mean 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