Marketing Mix
Product
The company provides its customers wide range of products for home improvement in its store that range from the home decor items, paint, flooring to the electric supplies ,fixtures and appliances.Furthermore,company also offers installation services to the customers in various product categories that includes flooring, plumbing ,appliances, and lighting.
Price
The company provides varieties in each product offerings to its customers with a complete collection of price points to them.
Promotion
The company adopted the promotion strategies that include coupons, flyers and direct mail in order to generate interest as well as increase the awareness among the customers of Lowe’s kitchen remodeling services. However, the emailed coupons of the companycontains the offers such as $10 off a$50 purchase or $25 off a$250 purchase in order to attract the attention of the customer to the kitchen service program. In addition to this, the promotion worked only on a short term basis as compared to the other marketing tools.
Place
The company served approximately 1,649 home improvement stores in the United States and Canada with fourteen million customers a week.
1) Segmentation analysis
The company market segmentation based on the demographics as well as on the geographic segmentation. Furthermore, most of the customers that are targeted by the company belongs to the customer groups that were near to the retirement and also customers that belong to the families of the dual income group.
2) Competition analysis
There were anumber of players in the market that provided the services of Kitchen remodeling and installation.Most of the retailers in the market offered some mix of both the product and services to both the professional as well as DIY segment.Following are the competitors of Lowe’s in the industry:
Home Depot
Home Depot wasthe largest home improvement retailer in the industry.The services of the company included free design services with the design professionals. Furthermore, the professional measurement service fees applied towards an installation purchase. The final stage of the installationwas performed by the licensed and insured professionals.
Menards
It was the third largest home improvement retailer in the industry.Menards had provided a limited variety of services to the customers in the kitchen remodeling and installation. It was also known as a supplier in the market of wood for cabinets, flooring and other construction materials.
Sears
Sears had the nation’s largest repair network and it provides free in home design consultation. In addition to this, it also provides home serviceforf turkey installation with a Sears’s project coordinator. Some other services provided by the company includes plumbing, flooring, electrical services, flexible financing and extended warranty services.
IKEA
IKEA was a leading retailer that had gained the significant market share of kitchen remodeling. The companyoffered a free in home design service to the customer with installation purchase. It also provided customers with an easy to use web tool to design their own kitchen. It also provided professional measurement services with a complete floor plan installed by the certified kitchen installers.
Studio41
Studio 41 provided in home design consultation services to the customers. In addition to this, the company did not provide installation services and its showrooms were opened for everyone that includes homeowners, contractors, designers and architects.
3) Financial analysis
CPM rate for each media type
Case keys
Key success factors:
The factors that can play an important role in the success of the company includes:
- The digital marketing plays an important role in creating awareness among the customers about the product offering of the company and its value.
- Integrated marketing communication mix is very vital for the success of the company in order to effectively launch the product .This can be achieved by targeting the right and appropriate customer segment as well as effectively positioning the product in order to attract the customers.
- Understanding the demands and needs of the consumers while offering the product that meet their expectations.
Key uncertainties:
The factors that can affect and threaten the success of the company includes:
- The increase and uncertainty in the competition from the other companies in the industry with the better offerings.................................
This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.
Related Case Solutions & Analyses:
Medfield Pharmaceuticals
The Drivers of Greenwashing
China s Challenge to Feed Its People
Robb Fitzgerald at Comvia Networks
WIPHOLD (C): Managing the 2002 Crisis
Managerial Effectiveness and Diversity: Individual Choices
Outsourcing at Office Supply Inc.
Managing Diversity at Cityside Financial Services
Market Consolidation In The Telecommunication Sector Will Lime Survive
Logitech: Learning from customers to design a new product
