Presentation Promotional Strategy

Strategy and Positioning Analysis Part 1

For any business to thrive and expand there is a need to come up with new products so that it can be in a position to compete favorably with its competitors. However, there’s need for a market research to be conducted first so that the product introduced in the market can be unique enough to fill a gap that is in existence on the market. In this paper, we going to spout the launching of a product referred to as the Depot to Go by a company known as the home depot. This is a service that will help make use of a cell phone application to enable the customers to enjoy the deliveries of the heavy products at their homes upon making an order at a low cost.

Overview of Organization

The Home Depot is an American retailer company that deals with the sale of the home improvement and the construction products as well as services. The company operates some big format stores in the 50 states in the United States, in Mexico, Puerto Rico and also in the ten provinces in the country of Canada. The headquarters of this company are located at the Cobb County in Georgia at the Atlanta Sore support center. It is recognized as the largest retailer of the home improvement products in the United States, and its main competitor is Lowe’s. This company was formed in the year 1978 by three people who are Pat Farrah, Bernard Marcus, and Arthur Blank. The company’s proposition was to build some form of home improvement superstores which could be larger than any of the facilities of their existing competitors. Marcus and Blank were helped by the investment banker Langone to obtain the necessary capital that was required to start the business operations (Roush, 1999).

The Home Depot Stores offers the full-service warehouse style stores which deal with the sale of a wide range of products for home improvements, building materials, garden and lawn products as well as some other several services in the industry. The company is also known for its provision of other installation services nationally by making use of the pre-screened contractors who are independent of products that range from roofs to floors, heaters to windows, cabinets used in the kitchen to the vinyl siding. To make the customers successful on the job sites, the retail stores offer to them the remodeling and repair contractors, support and special services. It serves a variety of people such as the small business owners, professional remodelers, repairmen, tradesmen and the general contractors.

Description of Product/Service

The Home Depot Company will launch the sale of the service referred to as the Depot to Go. The depot to go service is a mobile app for smartphones that will be introduced in the market by this company to give its clients the opportunity to choose the person or company for home deliveries if they are making a purchase of heavy equipment or construction materials. Through this product, the customers will be in a position to automatically contact the company for the orders, and then some personnel from the company will provide the service at a very low cost. In the utilization of this service, the clients will just need to go to the application on their cell phones and mark as well as show the specific store location where they want the merchandise to be picked and also mark the location where they want it to be delivered. It is also in the application where the client will show the method of payment that they intend to use to complete the order. This service will be very efficient for the clients since they will not need to be present themselves. They will just make the payment and complete the order after which the merchandise will be delivered at their comfort at home. To the company, the importance of this service cannot be underestimated as it will assist it by increasing its scope of the customers and also its competitiveness in the market. This will attribute to a rise in the popularity of the company and also an increase in the level of profitability and revenue at large.

SWOT Analysis

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Competitive Analysis

Competitive analysis is a part off the market plan of the company which evaluates what makes the company competitive, the services unique and the attributes employed in order to attract the target company. The table below shows the competitive analysis of the Home Depot Company. The potential competitor in this case is Wal-Mart while the competitive rival is Lowes.

Target Market Segments

The target market refers to individuals who want the customer service. The market segments of the Home Depot Company can be classified into three; which are the professional customers, do it for our customers and do it yourself, customers. The professional customers consist of the traders, contractors, interior designers, renovators and builders among others. The do it for our customers consists of the customers who are looking for a person to offer them with certain services such as the installation. On the other hand, the do it yourself customers are the homeowners who purchase products and do the installation themselves.

Demographic

Demographics refer to the quantifiable characteristics of a certain population. The market is dived in the basis of the age, gender, education, income, marital status and ethnic background among others. In this case, the company’s market consists of the people across all the classes from the low class to the middle class. This is because they offer their products at low cost which makes it affordable to all persons.

Psychographic

Psychographic refers to the classification of the target market by the attitudes, opinions, interests, values, activities and lifestyles among others. It usually tends to consider some factors which affect the purchasing power of an individual. In psychographic, the company makes use of the measure that is referred to as PRISM. This measure divides the country into some segments based on the prices of the condominiums as well as that for the homes (Weinstein, 2013). The company uses the everyday low prices strategy to make the products and the services affordable to their customers.

Geographic

This entails the division of a large geographic region into small geographic regions or units. The geographic segmentation is used together with the psychographic and the demographic market segment. It is very essential in the giving of the marketer a clear description of the target market and also assists in the coming up with the market strategies from the market descriptions made. In this, marketing segment, the Home Depot company segments its market in rural areas, suburban, urban, city and the regions to effectively meet the needs of the people.

Behavioral Factors

This entails the division of the buyers by their occasion for use, the degree of loyalty, the benefits sought and the rate of usage. The behavioral factors are used together with the other variables such the psychological, demographic and the geographic factors. To increase the consumption of the products, the company uses the occasion for use to show the potential customers how the products can be used on some occasions. The company tries to show the benefits that are associated with making use of its products and services and also their efficiency.

Positioning Statement

The Depot to Go service is like no another in the market. It is very essential to all the persons since it allows for the saving of time, energy, and resources when purchasing the large equipment or heavy construction materials. With this service, the welfare of all our clients is fully taken into account since all the services are extended at a very low cost. All that our clients’ needs to do is to get to our application through their mobile phones and specify the destination where you want your merchandise to be picked from and where to be delivered and then a specification of the payment method and completion of the order. After this, the merchandise will thus be delivered to the specific client’s doorstep.

Conclusion

In conclusion, the advantages of the depot to go services of the home Depot Company cannot be underestimated. This will be very essential for all the three types of the customers that the company deals with, and it will assist in increasing the satisfaction of the customers and the

confidence in the purchasing of the large equipment. The service will also save them from the wastage of time and resources when organizing on how to ensure that their heavy equipment and other merchandises land home safely and on time. The introduction of this service in the market will also assist the company by becoming more competitive; increase its market share and also the level of profitability. The company will also benefit greatly since it will be in a position to retain its competitive position in the industry. From the SWOT analysis, it is also clear that the Home Depot Company needs to expand globally in order to avoid the macroeconomic problems that are likely to arise in the event that United States which is the largest market for these products experiences an economic downturn.

References

Ferrell, O. & Hartline, M. (2014). Marketing strategy. Mason, Ohio: South-Western Cengage Learning.

Luther, W. (2001). The marketing plan: how to prepare and implement it. New York: AMACOM.

Roush, C. (1999). Inside Home Depot: how one company revolutionized an industry through the relentless pursuit of growth. New York: McGraw-Hill.

Weinstein, A. (2013). Handbook of Market Segmentation Strategic Targeting for Business and Technology Firms, Third Edition. Hoboken: Taylor and Francis.