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ROOM TO GROW: A FOCUS ON DIYSummer Intern Program at Sherwin-Williams

INTRODUCTION• Name: Kristina Miller

• College: Southern Illinois University – Carbondale

• District: Tri-State (Evansville, IN)

• Project Title: Room to Grow: A Focus on DIY

THE ISSUE PRESENTED• How do you increase market share over big box stores (i.e. Menards,

Lowes, Home Depot)?• Examine: DIY v. Contractor Market Segments

• Bottom Line: Increased focus on overall DIY market• Figure out who isn’t buying & why

• Increase sales• Create market growth

• Focus on sundry promotion & sales

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DIY 20%......Commercial 80%

DIY SURVEY RESEARCH• 41.93% under 35 years old

• 16.13% shop at S-W for paint products• 74.19% at Big Box

• 67% never shopped at S-W

• Market suggestions:• More sales and specials• Price match/accept big box deals• Improve marketingRecommend professionals to help DIY

Additional Issues at Hand• Why they never shopped with S-W:

• 0% didn’t like our products• 13.64% too expensive• 36.36% never considered it an option• 40.91% no location nearby• 9.09% only come in for swatches & to

look

• 12.5% inconvenient

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Sample size of 31 participants, 77.42% Female

ADDITIONAL RESEARCH• Visited local competion

• S.I. Paint Supply• Lowes

• Please see “Price Comparison Handouts”

• SURVEY SAYS:• 25% think S-W is too expensive & not worth the extra money

• 3.23% shop at S-W for sundry items• 64% at Big Box

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Store layout and atmospherics not as welcoming as S-W

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For Paint products, Need to be at 30% to 40% off to come close to big box prices

REASONING AND CONSIDERATION

• Price, Cost, Product Value and Quality vary in importance to customers.• Price & Value/Quality Relationship• Brand Image

• My DIY Survey and our store’s Guest Satisfaction Surveys indicate:• Price is a contributing factor to less sales frequency

• Addressing the inconvenience factor:• S-W is a specialty store

• Get in their consideration set!

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S-W is the industry leader in paints. When considering a solution to gain market share, its important to stategize, as to not devalue that image.

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Price and Value correlate. Consumers see a higher price and associate it with a higher quality product. Conversely, consumers are likely to divert from the cheapest and most expensive. They find value somewhere in the middle

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36.36% of consumers don't even consider S-W an option. What can we do to fix this?

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Sherwin-Williams offers a lot of great resources, but the compeition is starting to catch up. Moreover, a great deal of factors that consumers look for in a paint store, Sherwin-Williams offers; the customers are just not aware.

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It's like wanting to buy grocery's at Dillards; you can't please everybody!

STRATEGIZE AND CONQUER• Naturally, people are more inclined to visit during sales.

• Therefore: Increase the frequency of sales and boost marketing promotion efforts.

• More than ¾ of DIY buyers are women.• Co-Branding & endorsements

• Pottery Barn• HGTV

• Quarts

• Hold DIY seminars & community outreach to educate consumers

• Differentiate from the competition!• Promote the S-W services and resources (like “Need a Pro?”).• S-W Apps are highly rated on the Google Play Store.

• Have kiosks or iPads available in store to access these apps

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a number of women saw our coupon in their pottery barn magazine and made purchases.

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I think if sherwin is going to successfully target economical DIY buyers, they would benefit from selling HGTV in quarts. Many are turned off when they find out HGTV doesn't come in quarts, especially for projects like accent walls that don't require an entire gallon.

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Chip it, SeaGuard, ColorSnap, Pintrest pages, etc.

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More and more women are coming in with projects they find on pintrest with SW colors--keep it up!

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can use apps, physically see color cards, and get paint product information

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also, engages the millenials/younger generation, those current first-time home buyers, with technology and social media

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people want a one coat product, thats why they come to SW; but they often come back disappointed because they failed to prep the surface correctly or use the proper tools.

RETURN ON INVESTMENT• Greater profitability from DIY sales

• If 36.36% that never considered S-W did & purchased 2 gal. of SuperPaint with a 30% off sale:• SuperPaint Store Cost: $24.17/gallon• 36.36% x 31 people = 11 people never considered S-W• 22 x $37.10/Gallon = $816.05• $816.05 x approx. 3,500 stores ≈ $2,856,175

• 22 x 247.17 = $531.74• $531.74 x approx. 3,500 stores ≈ $1,861,090

(Gains-cost) = ROICost

($2,856,175 - $1,861,090) = 53.47% ROI

$1,861,090

TO CONCLUDE…• Sherwin-Williams hold the majority of the commercial market segment.

• Big Box stores see the majority of DIY sales.

• Target DIY via:• Quality economical products• Continue and pursue endorsements & co-branding• Increase # of percent-off sales• Improve and increase marketing efforts• Create new ways to differentiate from the competition.

• Ultimately, see a return on investment!

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