Marketing Plan The Home Depot
Mission Statement – organization’s basic values and philosophy Home Depot, a leader in the home improvement business, is committed to providing the highest level of service and the widest selection of reduces at the best price. This commitment is driven by the following core values:;Excellent customer service;Taking care of our people;Giving back;Doing the “right” thing;Creating shareholder value;Respect for all people;Entrepreneurial spirit;Building strong relationships (The Home Depot, Inc. 2009)These values will guide The Home Depot to meeting and exceeding the goals of the company. (The Home Depot, Inc. , 2009)Geographic location Home Depot is headquartered in Atlanta, Georgia where all operations, purchasing, and upper management maintain and oversee all areas of The Home Depot organization. The Home Depot, Inc. , 2009) The Home Depot stores can be found all over the United States, Canada, Mexico, and China. (The Home Depot, Inc. , 2009)Product Maximal ways to satisfy the needs of target customers are possible.
Additionally, many ways to help organize all these decisions and to simplify the selection of Products are possible. The product mix of a company consists of both product line and individual products. In a product line exist a group of products within the product mix that are closely related because of the function of the primary product, they are sold to the same customer group, are arrested through the same types of outlets, or fall within the given price ranges. An individual product is a distinct unit within the product line that is distinguished by size, price appearance or some other attribute.
For example, all the products The Home Depot is a product mix, products in the lumber isle are the product line; and the type of lumber is the product item. At each of the three levels there are two types of decisions those that involve width (variety) and depth (assortment). Managing a product mix for a company is very demanding and requires constant attention. Management must provide accurate and timely analysis of their company’s product mix so the appropriate adjustment can be made to the product line and individual products. Marion, 2006)New Product Descriptions bringing a new product or service into a business or organization the first assessment involves the area tot opportunity in a particular industry market. Opportunity may be defined in terms of current industry growth or potential attractiveness as an investment. In addition, a second criterion is the company’s ability to exploit opportunity, which is based on its current or potential position in the industry. In the case of The Home Depot the product variety is to its highest potential. In this case providing a better service will emphasize the quality of customer service provided by the company.
The Home Depot is guided by the values established by its founders Bernie Marcus and Arthur Blank these values are excellent customer service, taking care of people entrepreneurial spirit, respect for all people, building strong relationship, doing the right thing, giving back to commitment, and creating shareholder value. (The Home Depot, Inc, 2006) Customer service at home depot is one of the most important oratories. What better than enhancing customer service than providing a small coffee shop in the store for our early risers?
The benefits of this service will make it convenient. Most of The Home Depot early risers are contractors who purchase their materials early to start their projects for the day. Having a small coffee shop in the location will save the customer time by not having to stop elsewhere for a quick breakfast before a long day at work. SHOOT Enlightenment’s (internal)The Home Depot is a large organization that focuses on two major buying segments. The self employed general contractor who an go to The Home Depot for all their buying needs and secondly the weekend warriors.
Those would be the average working person who likes to do things and build things themselves. This has been a strength and staple for The Home Depot from its infancy as an organization. Adding in a coffee shop to The Home Depot mix could be a strength. In the early morning hours, the coffee shop could focus on the always-on-the-go contractors who need a quick cup of coffee and a hearty breakfast sandwich to keep them going until the early afternoon. This would cut down on stops for the contractors and the nonviolence of it would allow The Home Depot to charge a premium.
During the later part of the day and on the weekends the coffee shop could focus on quick lunches for the do it yourself and even conduct mixed marketing within the store. For example, if a customer was waiting on some lumber to be cut down that they requested the associate could offer them a coupon for a free drink with the purchase of a sandwich. This would keep the customer from getting inpatient and add another revenue stream by cross marketing within the location. Weaknesses (internal)Opening a coffee shop and sports lounge for customers in existing The Home Depot stores has weaknesses.
One weakness is the current economic landscape. With other businesses in the coffee shop industry closing stores and laying-off employees, this project will have a significant hurdle to overcome. Potential customers who were once willing to spend money on eating out are now staying home for meals including coffee. Another weakness to consider is the current state tot the company . With home sales down, the home industry professionals are not working building and remodeling projects. This has a significant impact on The Home Depot sales. (The Home Depot, Inc. , 2009) Reduced sales indicate fewer customers in the store.
Fewer customers who are not spending money on luxury purchases such as eating out may prevent the success of this project. Opportunities (external)Several opportunities exist for a coffee shop and entertainment alcove to succeed in The Home Depot environment. During the regular work week, construction workers and contractors get an early start. They are often at the store when it opens at 6:00 a. M. These hardworking people will have the same challenges to starting the day as most people do. A coffee shop will offer breakfast, fee, and other early morning items that are a favorite of the clientele.
In addition to professionals, The Home Depot caters to the do-it-yourself homeowner. These people tend to work regular Jobs during the week and save home maintenance and renovations for the weekend. The do-it-yourself has different challenges than the contractor. These individuals and families compromise leisure activities for small home Jobs. A lounge area with the game televised will give this individual an opportunity to keep up with current televised sports. Threats (external)Declining housing markets and economic conditions threaten The Home Depot sales. The Home Depot customer base is contractors and DID homeowners.
The Home Depot announced in January 2009 that all EXPO centers would close and would incur lay-offs of 7000 employees. While the EXPO centers catered to The Home Depot’s high end customers, it gives an indication of how the economy is effecting The Home Depot overall. Should The Home Depot need to cut cost again, the coffeehouse may not survive. Cost vs… Revenue need to be examined for the project to be successful. Trends (external)Struck successfully started the trend of coffeehouses within other establishments. They offer a customer friendly environment and a quality product.
To be competitive, The Home Depot coffeehouse will need to follow the example. McDonald’s offers similar products of Struck at a lower price. The Home Depot coffeehouse will need to find a middle ground in price to capture customers who are loyal customers of Struck and McDonald’s. Marketing Researches Market research for placing a coffee smartening Research is the function that lings the customer, customer and public to the marketer through information. Managers need information in order to introduce a product and a arrive that can create value in the mind of the customer.
Marketing research can be defined in three categories. Exploratory research helps formulate the problem, clarifies concepts gathers explanations gains insight, eliminates impractical ideas, and forms hypothesis. Second is Descriptive research, is the most rigid and seeks to describe used tot a product determines the proportion tot the population that uses the product and predicts future demands. The last of the categories is casual research it helps find the effect on the relationship between variables and it accomplishes its AOL through laboratory and filed experiment.
Once an organization decides that a marketing research is needed most marketing research projects involve these steps:;Define the problem;Determine research design;latently data types and sources;Design data collection forms and questionnaires;Determine sample plan and size;Collect the data;Analyze and interpret the data;Prepare the research reported goal of marketing research is to provide the facts and the direction that managers need to make an important marketing decision. (Quickens. Com, 2007)A consumer analysis is crucial for a company to use before launching a new product or service.
Home Depot is known to be the world’s largest home improvement specialty retailer with stores in all estates, the District of Columbia, Puerco Rice, U. S. Virgin Islands, 10 Canadian provinces, Mexico, and China (Home Depot. Com). Home Depot has stores all over the county and all over the world. There are hundreds of stores that operate on a daily basis. Adding a coffee shop in the stores will allow for more revenue. There are various types of programs and web services that can be used in assisting a many to determine the best locations to open these coffee shops.
It should be questioned as to what stores should offer a coffee shop. For example, some locations may not be worth opening a shop due to various factors. Coffee is a popular product that many construction employees consume. Many of those employees often stop somewhere to have a cup of coffee and breakfast on the way to work. Knowing the daily routine for these employees will ensure a company profit. Competition is going to be a factor as well. Today, there are many coffee shops and cafes that also operate on a daily basis. This includes many chain stores as well as small independent stores.
The coffee shops for Home Depot should take into consideration the types of coffee that people prefer, the competitions prices, and the overall customer satisfaction for the other completion. The research should include observations and surveys. Conclusion Home Depot is continually looking for methods of enhancing customer service. Through careful examination of company values, the proposed project, SHOOT analysis, and market research, The Home Depot can add service for existing ND potential customers by providing a coffee shop and lounge area to existing stores that would welcome and benefit from this project.
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