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Integrated Marketing Communications Plan 
Alaina Moore 
West Virginia University 
IMC 610 
Fall 2014
The Home Depot: IMC Plan 1 
Executive Summary 
In this paper, you will find the Integrated Marketing Communications Plan f...
The Home Depot: IMC Plan 2 
Table of Contents 
I. Executive Summary .........................................................
The Home Depot: IMC Plan 3 
Objectives: .....................................................................................
The Home Depot: IMC Plan 4 
Background Information 
The Home Depot is the largest home improvement retailer, the fourth la...
The Home Depot: IMC Plan 5 
centers. In 2001, they opened their first store in Mexico through the acquisition of Total HOM...
The Home Depot: IMC Plan 6 
3. Doing the right thing: 
We exercise good judgment by "doing the right thing" instead of jus...
The Home Depot: IMC Plan 7 
Products and Services: 
The Home Depot offers a variety of innovative merchandise and services...
The Home Depot: IMC Plan 8 
successful at the job site. More 1,900 stores offer a contractor service desk which gains them...
The Home Depot: IMC Plan 9 
is ahead of Lowe’s in the home improvement industry, they are a serious competitor and need to...
The Home Depot: IMC Plan 10 
major college teams. They have also started @TeamDepot, which is a part of The Home Depot 
Fo...
The Home Depot: IMC Plan 11 
Target Audience 
Meet Emma Wilson and Derrick Hernandez. Emma is from Charlotte, North Caroli...
The Home Depot: IMC Plan 12 
Background Information 
The Home Depot has many target markets. While the largest demographic...
The Home Depot: IMC Plan 13 
associate because they are already sold. Adding to the immediate gratification factor, consum...
The Home Depot: IMC Plan 14 
SWOT Analysis 
The U.S. home improvement retail industry is a mature industry characterized b...
The Home Depot: IMC Plan 15 
A huge opportunity is to increase social media and online presence, which will reach the 
tar...
The Home Depot: IMC Plan 16 
Campaign Objectives and Strategies 
Objectives: 
Based on the SWOT Analysis, the campaign obj...
The Home Depot: IMC Plan 17 
 We will also increase awareness for The Home Depot mobile app by giving users 
exclusive of...
The Home Depot: IMC Plan 18 
to make those major purchases. That is why we will push our DIY programs to educate them on 
...
The Home Depot: IMC Plan 19 
Creative Brief 
To increase sales by 20% within 12 months among the target audience by increa...
The Home Depot: IMC Plan 20 
 Monthly DIY project packets for easy-to-make customizable projects for your home or 
garden...
The Home Depot: IMC Plan 21 
the current ads on traditional channels. The music used in the current commercials alone is v...
The Home Depot: IMC Plan 22
The Home Depot: IMC Plan 23
The Home Depot: IMC Plan 24 
Media Objectives and Strategies 
Objectives 
 Use online sources to advertise to target mark...
The Home Depot: IMC Plan 25 
The Home Depot’s Hulu campaign, we want to target specific shows that prove to have larger 
g...
The Home Depot: IMC Plan 26 
During the specific shows, interactive ads will be used to allow views to choose which 
ad th...
The Home Depot: IMC Plan 27 
use of our mobile app by having DIY inspired articles and quizzes for its users to read about...
The Home Depot: IMC Plan 28 
Media Flow Chart 
Broadcast Media 
Hulu.com 
ABC 
CBS 
NBC 
ESPN 
HGTV 
Cartoon Network 
Radi...
The Home Depot: IMC Plan 29 
Public Relations Strategies and Tactics 
Objectives 
 To increase awareness to target audien...
The Home Depot: IMC Plan 30 
Home Depot Foundation. There will be workshops available to everyone, and activities for 
chi...
The Home Depot: IMC Plan 31 
20. Long Beach, California 
21. Atlanta, Georgia 
22. Minneapolis, Minnesota 
23. Seattle, Wa...
The Home Depot: IMC Plan 32 
Direct Marketing Plan 
Objectives: 
 Reach target audience located in specific cities that w...
The Home Depot: IMC Plan 33 
 Update customizable options for customers who sign up for emails. It will be very 
straight...
The Home Depot: IMC Plan 34 
Tactics: 
Because we want our primary channel for the #DoItYourselfBlockParty to be the mobil...
The Home Depot: IMC Plan 35 
Measurement and Evaluation Plan 
The objectives in this IMC plan is to increase sales in-stor...
The Home Depot: IMC Plan 36 
Conclusion 
The Integrated Marketing Communications Plan for The Home Depot is designed to 
c...
The Home Depot: IMC Plan 37 
References 
Banjo, S. (2014, February 28). Home depot sets up for CEO succession as focus shi...
The Home Depot: IMC Plan 38 
Guerringue, L. (2013, April 19). Can PR Professionals Continue to Reach Millennials Using 
Tr...
The Home Depot: IMC Plan 39 
Kolodziej, C. (2014, February 11). Reaching Millennials With Mobile - Direct Marketing News. ...
The Home Depot: IMC Plan 40 
Stone, M. (2013, November 7). Vocativ: Best Cities For People Under 35 - Business Insider. 
R...
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IMC 610: IMC Plan for The Home Depot

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IMC 610: IMC Plan for The Home Depot

  1. 1. Integrated Marketing Communications Plan Alaina Moore West Virginia University IMC 610 Fall 2014
  2. 2. The Home Depot: IMC Plan 1 Executive Summary In this paper, you will find the Integrated Marketing Communications Plan for The Home Depot, targeting men and women, ages 25-35, with a college degree, without children who may or may not own a home. A lot of research has been collected to determine The Home Depot’s strengths, weaknesses, opportunities and threats. The target audience for this plan offers an opportunity for The Home Depot to capture this upcoming generation of consumers and to create brand loyalty while in the early stage of the buying life cycle. This plan outlines the marketing, creative, media, public relations, direct marketing and sales promotion objectives and tactics needed to capture this target audience and to make this plan successful.
  3. 3. The Home Depot: IMC Plan 2 Table of Contents I. Executive Summary ...........................................................................................................1 II. Background Information ................................................................................................. 4 Values....................................................................................................................................5 Products and Services:............................................................................................................7 Financial Statistics .................................................................................................................8 Competition ...........................................................................................................................8 Current Marketing Strategies ..................................................................................................9 III. Target Audience ............................................................................................................... 11 Background Information ....................................................................................................... 12 IV. SWOT Analysis .................................................................................................................14 V. Campaign Objectives and Strategies............................................................................16 Objectives: ........................................................................................................................... 16 Strategies:............................................................................................................................ 16 VI. Integrated Creative Strategy Statement .......................................................................18 Integrated Creative Strategy Statement: ................................................................................. 18 VII. Creative Brief .....................................................................................................................19 Tactics: ................................................................................................................................ 19 Target Audience: .................................................................................................................. 19 Product Positioning: ............................................................................................................. 19 Integrated Creative Strategy Statement: ................................................................................. 20 Creative Considerations: ...................................................................................................... 20 VIII. Creative Execution .......................................................................................................... 20 IX. Media Objectives and Strategies .................................................................................. 24 Objectives ............................................................................................................................ 24 Strategies:............................................................................................................................ 24 Tactics: ................................................................................................................................ 24 X. Media Flow Chart ............................................................................................................ 28 XI. Public Relations Strategies and Tactics ..................................................................... 29 Objectives ............................................................................................................................ 29 Strategies ............................................................................................................................. 29 Tactics ................................................................................................................................. 29 XII. Direct Marketing Plan .................................................................................................... 32
  4. 4. The Home Depot: IMC Plan 3 Objectives: ........................................................................................................................... 32 Tactics: ................................................................................................................................ 32 XIII. Sales Promotion Plan ...................................................................................................... 33 Objectives: ........................................................................................................................... 33 Tactics: ................................................................................................................................ 34 XIV. Measurement and Evaluation Plan.............................................................................. 35 XV. Conclusion ........................................................................................................................ 36 XVI. References ......................................................................................................................... 37
  5. 5. The Home Depot: IMC Plan 4 Background Information The Home Depot is the largest home improvement retailer, the fourth largest retailer in the United States and the fifth largest retailer in the world. In 2010, they were ranked 29th on the Fortune 500 U.S. list. They sell products to do-it-yourself (DIY) customers, do-it-for-me (DIFM) customers and professional customers such as remodelers, general contractors, and repairmen (Friesner, 2014). The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank. The two founders brought investment banker, Ken Langone, and merchandiser, Pat Farrah onboard to help bring their vision of a one-stop shopping experience for the do-it-yourselfer to life when they opened the first two stores on June 22, 1979 in Atlanta, Georgia. The first stores were about 60,000 square feet and stocked 25,000 SKUs, which was much larger than the average hardware store at that time. Associates were able to offer great customer service, helping customers through various projects. They undergone a lot of product knowledge training and even offered clinics so customers could really learn how to do-it-themselves. The Home Depot revolutionized the home improvement industry by aiding customers, supplying them with the tools they needed and saving them money. Bernie and Arthur created the customers' bill of rights at The Home Depot. This meant the customers had the right to assortment, quantities and price and trained associates on the sales floors who were willing and able to take care of them. They had a "what it takes" philosophy about customer service meaning they were building relationships with their customers, rather than making transactions ("Our Company: History," 2014). In 1981, The Home Depot went public on NASDAQ and in 1984 moved to the New York Stock Exchange. For two decades, the company saw tremendous growth. They opened their first store in Canada in 1994 with the acquisition of Aikenhead's home improvement
  6. 6. The Home Depot: IMC Plan 5 centers. In 2001, they opened their first store in Mexico through the acquisition of Total HOME, and 2006 opened stores in China after acquiring The Home Way, a 12 store chain ("Our Company: History," 2014). The Home Depot developed strategic product alliances with industry- leading manufacturers to offer the most exclusive assortment of products to customers. Through a combination of national brands and proprietary products like Ryobi® tools, RIDGID® tools, BEHR® paint, LG® appliances and Toro® and Cub Cadet® lawn equipment, the company set a high standard for innovative merchandise for the do-it-yourselfer and the professional contractor ("Our Company: History," 2014). Values The Home Depot's values guide the beliefs and actions of all associates. They believe their values are the fabric of the Company's unique culture and are vital to their success. They also believe they give them a competitive advantage in the marketplace. According to their website, "associate pride and their "orangeblooded" entrepreneurial spirit are distinctive hallmarks of their culture" ("Our Company: Values", 2014). Their values include: 1. Taking care of our people: The key to our success is treating people well. We do this by encouraging associates to speak up and take risks, by recognizing and rewarding good performance and by leading and developing people so they may grow. 2. Giving back to our communities: An important part of the fabric of The Home Depot is giving our time, talents, energy and resources to worthwhile causes in our communities and society.
  7. 7. The Home Depot: IMC Plan 6 3. Doing the right thing: We exercise good judgment by "doing the right thing" instead of just "doing things right." We strive to understand the impact of our decisions, and we accept responsibility for our actions. 4. Excellent customer service: Along with our quality products, service, price and selection, we must go the extra mile to give customers knowledgeable advice about merchandise and to help them use those products to their maximum benefit. 5. Creating shareholder value: The investors who provide the capital necessary to allow our company to grow need and expect a return on their investment. We are committed to providing it. 6. Building strong relationships: Strong relationships are built on trust, honesty and integrity. We listen and respond to the needs of customers, associates, communities and vendors, treating them as partners. 7. Entrepreneurial spirit: The Home Depot associates are encouraged to initiate creative and innovative ways of serving our customers and improving the business and to spread best practices throughout the company. 8. Respect for all people: In order to remain successful, our associates must work in an environment of mutual respect, free of discrimination and harassment where each associate is regarded as a part of The Home Depot team.
  8. 8. The Home Depot: IMC Plan 7 Products and Services: The Home Depot offers a variety of innovative merchandise and services for its customers because they believe that for most people, their home is the biggest financial and emotional investment they make. Their goal is to help consumers create the home of their dreams whether they want to do it themselves or have it done for them. They offer specialized support and services for professional contractors and tradespeople to ensure they have access to everything they need on the job site ("Our Company: Stores, Products and Services," 2014). Today, the Home Depot has more than 2,200 locations throughout the United States including the territories of Puerto Rico and the Virgin Islands, and have stores located internationally in Canada, Mexico and China. Each store averages 105,000 square feet with approximately 23,000 additional square feet of outside garden area. Each store has about 40,000 different kinds of materials, home improvement supplies, appliances and lawn and garden equipment. Items do vary by store because they stock merchandise that matches what an area's market demands. They also offer a low price guarantee to beat competitors' prices. Their website and mobile app are also available to customers and provide another way to shop for products. They will also do special orders if the item you are looking for is unavailable ("Our Company: Stores, Products and Services," 2014). The Home Depot offers a variety of services for its customers. Home Services are available if customers do not want to take on a project themselves. They offer national installation services through a pre-screened independent contractor for a variety of products. They provide customers with Free How-To Clinics which allows them to get hands-on experience. Their classes are offered every Saturday and Sunday. They also have the largest garden club in the world. They provide Kids Workshops which allows children to have fun and learn new skills, and more than 1 million children have built their first toolbox at one of the Kids Workshops. For their professional customers, the Home Depot offers special services and support to make them more
  9. 9. The Home Depot: IMC Plan 8 successful at the job site. More 1,900 stores offer a contractor service desk which gains them access to loyalty programs, a pro bid room to handle large customer orders with volume discounts, direct ship programs, credit programs and other specialty sales initiatives. In 2002, the Home Depot Foundation was formed and have granted more than $270 million to nonprofit organizations to improve homes and lives in local communities. Since 2008, the Home Depot Framing Hope Program has donated $100 million worth of products to over 1,400 local charitable partners to renovate and rebuild homes. In 2010, The Home Depot announced a goal of cutting energy use in their stores by 5% by 2015, reducing energy use by 20% since 2004 ("Our Company: Stores, Products and Services," 2014). Financial Statistics The Home Depot has done well in the last four years and continues to grow. Their revenue in February 2014 was $78.8B, which increased $4B over 2013. It has risen $10B since 2011. The cost of goods sold in 2014 was $51.4B which gives The Home Depot a gross profit of $27.4B. They decreased sales devoted to selling, general and administrative costs from 21.90% to 21.06% which contributes to their net income increasing from $4.5B in 2013 to $5.4B in 2014 ("HOME DEPOT INC (HD: New York Consolidated): Financial Statements - Businessweek," 2014). Competition The primary competitors of The Home Depot are Lowe’s, Ace Hardware, Menard and True Value. Other competitors include Walmart, Target, Sears, Kmart, Amazon.com and Sherwin Williams. Lowe’s has actually been around a little longer than The Home Depot, but trail behind in market share. They have about 400 less stores than The Home Depot. They target the same market as The Home Depot, but Lowe’s has more female shoppers than The Home Depot. However Home Depot’s male shoppers are spending much more. While the Home Depot
  10. 10. The Home Depot: IMC Plan 9 is ahead of Lowe’s in the home improvement industry, they are a serious competitor and need to remain ahead of the curve. Current Marketing Strategies The Home Depot has had many successful marketing campaigns including "Let's Do This" which is geared towards getting projects done. Their slogan "More Saving. More Doing" is very identifiable with the brand. They have made successful efforts to increase their presence in social media, which includes Facebook, Twitter, Tumblr, Pinterest and their app. They have even used YouTube for how-to instructions and product help (Belch & Belch, 2015, p. 514). The Home Depot has been successful on Twitter and have campaigns such as #LetsDoGameDay where they partnered up with ESPN College Game Day and tailgate with
  11. 11. The Home Depot: IMC Plan 10 major college teams. They have also started @TeamDepot, which is a part of The Home Depot Foundation, and provides home improvements to the homes and lives of U.S. veterans. They are doing a special Celebration of Service campaign until Veteran’s Day this November. Another social media channel that has been successful is YouTube.com, where they post how-to videos for various projects.
  12. 12. The Home Depot: IMC Plan 11 Target Audience Meet Emma Wilson and Derrick Hernandez. Emma is from Charlotte, North Carolina, and Derrick is from Katy, Texas. Newly engaged, they met at the University of North Carolina in Charlotte where Emma studied Psychology and Derrick studied Graphic Design. They moved to Nashville, Tennessee after Derrick was offered a job with a design firm six months after they graduated. Emma is working on her master’s degree at Middle Tennessee State University in Special Education and working as a Career Counselor at a local high school. They have an apartment in East Nashville, which is an upcoming neighborhood with a younger demographic. They have been in Nashville for about a year, and they both love everything the city has to offer. They are constantly on the go between work and the entertaining nightlife that Nashville has to offer. They enjoy being young and in the early stage of their lives, and are very focused on their careers. When they are home, they catch up on their favorite TV shows on hulu.com, and don’t feel the need to pay for regular cable. They stream everything online and are very tech savvy. Social media is also a huge part of their routines. Emma is obsessed with her Pinterest boards and regularly uses her smartphone to get more ideas of things to do around the house. Derrick is a big video gamer and loves watching YouTube for the latest information about upcoming products. Together, they have a Household Income of around $80,000 per year, which is just below the average in Nashville. They are not ready to buy their first home, but they want to improve their apartment so that it doesn’t look like they’re in college anymore. They want to entertain friends and family without committing to any major renovations. They also are not looking to start a family for at least five years because they really want to focus on themselves and become established in their careers.
  13. 13. The Home Depot: IMC Plan 12 Background Information The Home Depot has many target markets. While the largest demographic, population wise, is that of the aging Baby Boomers, retailers tend to agree that one of the most important consumer demographics is a large portion Generation Y, which in more general terms are college-educated adults in their mid to late 20s and early 30s who haven't yet had children. Although this group has been labeled "generation debt" due to many taking out student loans that will require decades to repay and having grown up in the credit card era, they are very optimistic. This group is who retailers are aiming their marketing efforts toward to gain loyalty (Smith, 2012). The members of the mid-20 to mid-30 demographic aren't just linked by their age. Many members of this group are college-educated and are perceived as having more discriminating tastes. They also have a wider exposure to the range of products and services available to them and the experience to research their choices and make the best decision on which products best fit their needs. The members of this group being childless is significant in that discretionary income may be spent on what they want and to fulfill immediate needs and items from the list of wants, especially with respect to electronic goods. Most of the members of this group are living on their own for the first time and are setting up their households, either independently or with a partner or roommate. They are beginning their careers and are purchasing items that give the sense of being well-off. This is why The Home Depot may appeal to their group because they carry products that are viewed as essential to establishing one's home (Smith, 2012). There are many psychological and sociological variables that influence the purchasing patterns of this target market. First, members of this demographic tend to seek immediate gratification. In a world of needing everything now, members are generally ready to make a purchase on the spot. Although they have many tools to conduct research, they rely heavily on word-of-mouth and media-generated buzz. They typically do not need persuasion by the sales
  14. 14. The Home Depot: IMC Plan 13 associate because they are already sold. Adding to the immediate gratification factor, consumers in this group tend to seek a convenient and fast shopping experience. They expect sales staff to be available but prefer avoiding interaction because they view themselves as self-sufficient and knowledgeable about the products they buy (Smith, 2012). Another huge factor is a change in the mindset of Generation Y, which are now being called "Generation Right". Though they are more socially liberal and accepting of different lifestyles, according to the polling company Ipsos Mori, they are likely to be more politically Right-winged than the generations prior at the same age. An odd statistic that defines this group is the trend of partying is decreasing for young adults unlike generations before. The idea of young adults acting more mature is a huge benefit to retailers like The Home Depot as owning or remodeling your home is a more traditional idea. DIY mania has taken over, especially among females in this group thanks to Etsy.com and Pinterest. Gardening is now the fifth most popular leisure activity among young adults, and the New York Times called this group the "New Domestics". They are more into clean living and wholesome hobbies in comparison to the "Sex, Drugs and Rock-N-Roll" mindset of previous generations at the same age (Dove, 2014). Members within the mid-20s to mid-30s are completely different than generations before them. They are somewhat more mature and ready to make purchases for their new home earlier in their lives. Because of their need for instant gratification, this group doesn’t need as much attention on the sales floor as other markets because the majority already know what they are planning to buy once they walk into the store. They are an emerging group of self-sustainable and independent consumers who want to learn more about doing things on their own. The Home Depot has many products that this group is looking for and now just need to shift their efforts into drawing them into their stores. One huge benefit of capturing this group now and building loyalty to the brand is that they will grow and mature with the brand as they enter into different phases of their lives.
  15. 15. The Home Depot: IMC Plan 14 SWOT Analysis The U.S. home improvement retail industry is a mature industry characterized by a high degree of market concentration and homogenous product line. The Home Depot is the leader in the industry, taking up 58% of the annual $129 billion dollar revenues. Lowes is the industry’s second-largest company taking up 39% of the annual revenue making them their biggest competitor (Hellman, 2014). After completing the SWOT analysis for The Home Depot, it’s easy to see that they have many important strengths including overall awareness of the brand. The Target Audience is already aware of The Home Depot and what they offer, and they already trust that they are getting the most trusted brands in the industry. There are a few internal threats from within the past ten years that are still being resolved. Prior to 2007, the management in place didn’t have the company’s values in mind when making decisions which left employees and customers unsatisfied. The Atlanta-based company’s stock prices had stagnated, and the company was losing ground to its rival, Lowe’s which prompted criticism for higher management. Since 2007, management has been working to regain the trust of their employees and customers (Banjo, 2014). However there are a few threats in targeting this audience. In conjunction with the U.S. housing market, the target audience’s homeownership trends are a huge threat. This group in the past has seen a huge decline in homeownership mainly because they just missed the Hosing Crisis causing fear among these buyers, but we are seeing this slowly start increasing some in the last two years. The good news is that the trend of them living with their parents is starting to decrease, meaning they are beginning to live on their own or with roommates (Kolko, 2014). This is an opportunity to create brand awareness and loyalty to this market now while they are just beginning their independence so that when they are in the market to buy their first home, The Home Depot is who they turn to, differentiating them from the competition.
  16. 16. The Home Depot: IMC Plan 15 A huge opportunity is to increase social media and online presence, which will reach the target market much more effectively than more traditional channels. The behaviors of this group is much different to that of earlier generations, which is why it’s important to reach them on more non-traditional channels. Increasing awareness of the mobile app is a huge opportunity for this audience as they are more likely to shop on their mobile device. Strengths:  Brand Awareness  Industry Leader  Strong Media Tactics  High Quality Products and Services  Patents  Product Alliances  Number of Locations  Loyalty Programs  DIY Workshops Weaknesses:  Brand Differentiation  Weak Online Presence  Product Recalls Opportunities:  Create Loyalty within Target Market before they are homeowners  Larger Social Media Presence  Utilizing Mobile App  Online Presence  More interactive abilities within store, online and with mobile app  Associate training program Threats:  Declining Housing Market  Competitors’ rising industry revenues  Target Market’s Homeownership Trends
  17. 17. The Home Depot: IMC Plan 16 Campaign Objectives and Strategies Objectives: Based on the SWOT Analysis, the campaign objects are:  Increase overall sales by 20% within 12 months among target audience  Increase awareness of DIY possibilities for members by educating our target audience  Increase social media presence by increasing frequency, improving content and targeting specific audience  Increase online purchasing by 20% from last year  Increase use of mobile app by 30% among target audience  Create more interactive advertisements and features in-store and through the app Strategies: To meet the objectives stated above, the following strategies are in place:  To increase social media presence, we plan to increase the consumers’ awareness of the brand on channels like Twitter, Facebook, Pinterest, YouTube and Tumbler. The target audience spends on average 17.4 hours per week on social media. We want to increase the frequency of advertising on these channels and also make these advertisements more interactive, influencing users to become involved with the messages.  One of the major opportunities is continued efforts to increase The Home Depot’s online presence. Last year, online sales of the company 50% to $2.7 billion, making up 3% of total sales. This is a huge opportunity to tap into the online market even further, especially being that the target market prefers online shopping. This group of consumers research products prior to buying and want to have a place to give their feedback of the items they are buying.
  18. 18. The Home Depot: IMC Plan 17  We will also increase awareness for The Home Depot mobile app by giving users exclusive offers for using and purchasing from their mobile devices. We know this will directly influence our target audience since 50% of this group uses their smartphones to research products.  Combining our efforts to create more interactive advertisements for our target audience, we want to influence this group once they are in the store as well by installing touch screen displays in specific locations within the store. Our audience are 216% more likely to be influence to purchase by the use of in-store touch screen displays. Along with the Marketing Strategies listed above, The Home Depot has an opportunity to improve its customer service by providing its employees with even more opportunities to learn about all of the products that are available to purchase in-store and online. Great customer service is what will differentiate them from the competition, and it’s important to train associates on how to sell to this group. Their target audience does not need a stereotypical sales pitch in order to make a purchase. They need employees who are there to answer questions when they have them and to help determine which product is the right choice for them. They have typically done the research and are ready to purchase prior to walking into the store, but they need employees who are able to steer them in the right direction. This doesn’t mean they can’t upsell, being that millennials are 52% more likely to make impulse purchases than previous groups. It’s also 33% more important for a sales associate to make a Generation Y customer smile than it is for a Baby Boomer, so employees need to be personable and really be authentic. These strategies will enable The Home Depot to complete the marketing objective of increasing sales by 20% within this target audience. Many of these customers are just starting out, and may not be in the market to purchase a home or to do a major renovation. However they are trying to become more independent by learning skills now to help them when the time comes
  19. 19. The Home Depot: IMC Plan 18 to make those major purchases. That is why we will push our DIY programs to educate them on ways they can improve their homes or apartments. The Home Depot needs to build those relationships now so that they are the only brand they trust as their buying matures. Integrated Creative Strategy Statement Rational Benefits Mobile App Online Shopping Improving Home Free Education Competitive Prices Quality Products Emotional Benefits Actually oing It Yourself Independence Builds Confidence Promotes Creativity Integrated Creative Strategy Statement: Let’s turn your first place into the place to be! Rejected Creative Statements • I did this myself! •We did this ourselves! • I t was just an idea I had. • Let 's turn your first apartment into the t ime of your life. • Let 's make your place look like you got that big promot ion. • Let 's turn your DIY Board into reality. • Let 's make them think you spent a fortune. • Let 's proudly say, "I made it myself."
  20. 20. The Home Depot: IMC Plan 19 Creative Brief To increase sales by 20% within 12 months among the target audience by increasing exposure to the brand through more untraditional channels, such as social media and the mobile app. Tactics:  To support the long-term goal of capturing this target audience which will create loyalty to The Home Depot brand for many years.  To increase the use of the mobile app among the target market.  To increase brand recognition by emphasizing social media channels such as Twitter, Facebook, YouTube, Pinterest and Instagram in campaign efforts Target Audience: The large portion of Generation Y in their mid-20s to mid-30s who are college educated and haven’t had children yet; HHI $50K+. They may or may not own their home.  What do they currently think? The Home Depot is the place to go for major renovation projects for homeowners.  What do we want them to think? The Home Depot is the place to buy everything you need for any DIY project, big or small. Product Positioning: From tools to how-to workshops, The Home Depot has everything needed to complete your next project either in-store or online, whether it’s a small DIY project or an entire renovation.  Easy-to-use mobile app that allows customers to shop from their smartphones.  Interactive guides online and in-store help you plan your next project.
  21. 21. The Home Depot: IMC Plan 20  Monthly DIY project packets for easy-to-make customizable projects for your home or garden. Integrated Creative Strategy Statement: Let’s turn your first place into the place to be. Creative Considerations:  Develop concepts that center around using the mobile app and online features.  Create interactive in-store and online features to aid customers in future projects.  Incorporate social media channels such as Pinterest, YouTube, Twitter, Facebook and Instagram.  Create an idea of affordability that looks expensive.  Use the idea of social interactions with friends and family around DIY projects.  Must be translated in both print and commercial forms.  Remain fluid in terms of current campaigns. Creative Execution One of our ideas for creative execution is a commercial campaign that will run on Hulu.com featuring interactive ads. There are 3 different concepts targeting the following groups within our target market: a single man, a single woman and a young couple. All three ads display DIY projects and use the Integrated Creative Strategy Statement. These concepts will provide market segmentation among the target audience. We do not want to go too far away from the current “Let’s Do This” campaign as brand recognition is very important in that I really like the concept they use of bringing different clips together for inspiration to the customers being shown. These ads will feature the #letsdothis hashtag, keeping familiarity with
  22. 22. The Home Depot: IMC Plan 21 the current ads on traditional channels. The music used in the current commercials alone is very recognizable to the brand, and we do not want to confuse viewers. The idea behind this execution is reintroduce the target audience to The Home Depot. Here’s examples of the creative execution for the advertisements done for Hulu.com subscribers. These ads will run during the corresponding television shows. The following examples are for Gotham, New Girl, Once Upon A Time and The Mindy Project.
  23. 23. The Home Depot: IMC Plan 22
  24. 24. The Home Depot: IMC Plan 23
  25. 25. The Home Depot: IMC Plan 24 Media Objectives and Strategies Objectives  Use online sources to advertise to target market over a 12-month period.  To reach at least 75% of target market a minimum of 3 times of 12-month period.  To increase use of The Home Depot app through mobile media by 30% within the 12- month period. Strategies:  45% of our budget will go toward advertising on Hulu.com, as this campaign will be a huge focus and will reach a large amount of our audience with interactive ads.  30% of our budget will go toward online and mobile media including social media, online websites sponsorships such as Youtube and Buzzfeed.com. We will also communicate all 12 months on The Home Depot’s website and mobile app.  25% of our budget will go toward traditional media, such as TV, radio, magazines and newspapers, specifically in areas where the DIY Block Parties will take place. Tactics: To meet the Media Objectives, we will use Hulu.com to promote The Home Depot to the target market. Hulu.com has over 6 million subscribers with 60% of them being ages 18-49, hitting our target market, and they are on over 400 million internet connected devices around the world. Hulu allows companies to custom-create ads and sponsorships that fit your needs, which ultimately drives higher engagements and results. Hulu charges companies 30 CPM for their advertisements. A great things about using Hulu is they have already done a lot of the research and know which ads are going to work in specific areas at specific times. They are also able to integrate specific ads for the specific device the viewer is using (“Hulu Advertising,” 2014). For
  26. 26. The Home Depot: IMC Plan 25 The Home Depot’s Hulu campaign, we want to target specific shows that prove to have larger groups of our target market watching. Examples include:  New Girl  The Mindy Project  South Park  The Daily Show With Jon Stewart  The Colbert Report  Saturday Night Live  Nashville  Gotham  Once Upon A Time  Key and Peele  Broad City  The Voice  Community  Bob’s Burgers  Family Guy  Brooklyn Nine-Nine  Keeping Up With the Kardashians  Parks and Recreation  Selfie  @Midnight  Late Night with Seth Myers
  27. 27. The Home Depot: IMC Plan 26 During the specific shows, interactive ads will be used to allow views to choose which ad they want to see. This will empower consumers to make selections based on personal preference, and the message is more likely to be heard. Another great feature about Hulu is that they only charge companies if the ads are watched in 100% completion, ensuring that the money for these advertisements is well-spent (“Hulu Advertising,” 2014). Another way we want to reach our target market is to have interactive ads within shows, and Hulu can make this happen. The idea behind our media is to reach our younger market by showcasing the DIY projects that can be done at your first place. An example of integrating this concept is by offering ‘How To’ DIY projects that are inspired by the show being streamed. An example is for the show The Mindy Project. In this show, Dr. Mindy Lihiri’s office is one of the many sets used throughout the show. During an episode, offer a link to a DIY project inspired by her office, which would allow fans of the show to create a similar space at home. This is one of many interactive ads that can used on a number of shows that Hulu has available to its subscribers. A specific example of a channel to be used for this campaign is a YouTube.com homepage takeover. YouTube has more than 1 billion viewers each month. Of that 1 billion, 67% are between the ages of 18-34. Since the 78% of the total viewers are male, the YouTube campaign will be aimed at the male population within our target market (“YouTube: Statistics,” 2014). The cost for a YouTube takeover is $400,000 and is sold in a package that includes stream video ads, display ads and feature video listings (Marshall, 2013). Another example of an online channel we will use is BuzzFeed to reach our target market. Buzzfeed.com receives over 150 million views each month, and 50% of this group is between the ages of 18-34, giving us a large portion of our market. Of that group 50% use their mobile devices and 75% of its traffic come from social services, which will help us increase the
  28. 28. The Home Depot: IMC Plan 27 use of our mobile app by having DIY inspired articles and quizzes for its users to read about (“BuzzFeed Advertise: Content Worth Sharing,” 2014). We do not want to neglect more traditional channels, but Hulu.com is our primary channel. We will air commercials on national networks, radio, specifically targeted magazines and newspapers. Local advertising will be done in cities where the DIY Block Parties will be held. The majority of traditional media will be heavily online since our target audience are more easily reached online.
  29. 29. The Home Depot: IMC Plan 28 Media Flow Chart Broadcast Media Hulu.com ABC CBS NBC ESPN HGTV Cartoon Network Radio Local National Satellite Mobile Home Depot Mobile App Mobile Ads for Phone Apps Magazines Wired HGTV The Knot TV Real Simple Maxim Men's and Women's Health Newspapers Local Weekly Ad Circulars Internet Social Media Facebook Twitter Pinterest Blogs YouTube Instagram Google+ Online/Digital Advertising Home Depot Website BuzzFeed.com Various Print Digital Editions Internet Radio Pandora 3Q 2015 July August September 4Q 2015 1Q 2015 2Q 2015 January February March April May June October November December
  30. 30. The Home Depot: IMC Plan 29 Public Relations Strategies and Tactics Objectives  To increase awareness to target audience of DIY project supplies available at The Home Depot.  To increase the use of The Home Depot mobile app by 30%  To empower millennials to complete DIY projects for their home and to help the community.  To raise $100,000 for The Home Depot Foundation in by Veteran’s Day 2015 Strategies  The Home Depot will sponsor the #doityourselfblockparty project where they travel to 25 cities in the country to host DIY Block Parties in younger neighborhoods and communities.  To involve customers from all over the world, the #DoItyYourselfBlockParty will also be made available on the mobile app.  These programs will also partner with The Home Depot Foundation to help raise money and awareness for Veterans Tactics To increase awareness for millennials about the DIY options at The Home Depot, they will travel to 25 major cities across the United States to host community DIY block parties. These parties will be located in central areas of younger neighborhoods within those cities, and all residents are welcome to attend. Admission will be free, but donations will be taken for The
  31. 31. The Home Depot: IMC Plan 30 Home Depot Foundation. There will be workshops available to everyone, and activities for children so that parents can get involved in the projects. However our target is millennials in their first homes, single or married, without children. Attendees will have three options to choose from to make: a set of lamps, an indoor herb garden or a small bar. The 25 cities that will be chosen to hold the DIY Block Parties are: 1. Colorado Springs, Colorado 2. Milwaukee, Wisconsin 3. Philadelphia, Pennsylvania 4. San Diego, California 5. Houston, Texas 6. Austin, Texas 7. Charlotte, North Carolina 8. Tulsa, Oklahoma 9. Nashville, Tennessee 10. New York City, New York 11. Miami, Florida 12. Kansas City, Missouri 13. Columbus, Ohio 14. Albuquerque, New Mexico 15. Tuscan, Arizona 16. Omaha, Nebraska 17. Boston, Massachusetts 18. Washington, D.C. 19. Denver, Colorado
  32. 32. The Home Depot: IMC Plan 31 20. Long Beach, California 21. Atlanta, Georgia 22. Minneapolis, Minnesota 23. Seattle, Washington 24. San Francisco, California 25. Portland, Oregon Along with these DIY Block Parties, there will be a campaign called #doityourselfblockparty where people from all over the world can be a part of the block parties by uploading selfies of themselves and their projects to the mobile app where it can be shared on The Home Depot’s social media and website. To keep the DIY Block Party going, there will be a new DIY project uploaded to the mobile app each month for members to do at home. They will be able to purchase the affordable DIY project kits, which include supplies, at their neighborhood Home Depot, and a portion of the cost goes to The Home Depot Foundation. Again, members will be able to upload pictures of each month’s projects to the mobile app to be shared on The Home Depot’s social media.
  33. 33. The Home Depot: IMC Plan 32 Direct Marketing Plan Objectives:  Reach target audience located in specific cities that will host the #DoItYourselfBlockParty  Reach target audience that is not located in specific cities where the block parties will be held.  To keep target market in control of what information they are receiving. We do not want to overbear them with information, driving them away.  To remain in-line with overall marketing objectives, we want to communicate primarily by the mobile influencing users to download and shop from their phones.  Remain strong on social media such as Twitter and YouTube, but really begin to communicate with target audience through social media, allowing them to get involved. Tactics:  Direct Mail invitation to DIY Block Party for those customers 25-mile radius of DIY Block Parties. An email will also be sent to those within a 50-mile radius. Alerts will be sent through the mobile app.  Communicate primarily through the mobile app to the DIY Club, which is targeted from the DIY block parties.  Offer monthly emails if the customers decides to sign up.  Hold contests through social media allowing followers to remain involved in the campaigns.  Provide a mobile update when the monthly DIY project is made available.
  34. 34. The Home Depot: IMC Plan 33  Update customizable options for customers who sign up for emails. It will be very straightforward so that they are receiving the information they want, the way they want it. This will also include a direct mail option Sales Promotion Plan Objectives:  Increase mobile app downloads by providing an in-store and online incentive for downloading.  Continue the DIY Block Party throughout the year and reach the target audience not located in the specific cities that were targeted.  To influence target market to complete surveys about their shopping experiences online, in-store and with the mobile app.
  35. 35. The Home Depot: IMC Plan 34 Tactics: Because we want our primary channel for the #DoItYourselfBlockParty to be the mobile app, we will target our audience by offering exclusive mobile app discounts beginning in the month of February.  Offer 20% instant discount for downloaded The Home Depot’s mobile app while in-store. Sales associates would help assist customers if needed.  Provide current mobile app users a 25% “Thank You” discount.  Promote the mobile app through social media channels by offering the 20% off discount online at checkout.  A DIY Club will be established for those interested in learning more about the program and targeted to those within group. This group will receive monthly alerts via mobile app and email about the new DIY projects that can be completed.  Provide discounts for individuals willing to complete surveys about their experience.
  36. 36. The Home Depot: IMC Plan 35 Measurement and Evaluation Plan The objectives in this IMC plan is to increase sales in-store but primarily through the mobile app and online sales to the target audience. By gathering information, these objectives will be measured throughout the 12-month period. We will conduct both pre- and post-testing to see how effectively we were able to meet our objectives and capture our target audience.  Prior to beginning the IMC Plan, The Home Depot will conduct a variety of test groups to analysis how the target market feel about the brand. We want to know what their perception is of The Home Depot and what would need to be done in order to make them loyal.  These tests will also be conducted at the end of the 12 month period to see their perceptions changed.  Social media metrics will also be closely watched as we begin the plan on channels such as Facebook, Twitter, Instagram, YouTube and Pinterest. We want to make sure we are effectively reaching our audience and make adjustments if we notice any trends.  We want to push surveys for our mobile app, online and in-store experiences so that we can effectively make adjustments if needed.  We’ll also provide incentives for completing those surveys.
  37. 37. The Home Depot: IMC Plan 36 Conclusion The Integrated Marketing Communications Plan for The Home Depot is designed to capture the target audience in their early stage of buying to create brand loyalty, which will enable them to continue to purchase as they go into the next phase of their lives. The marketing, creative, media, public relations, direct marketing and sales promotions objectives and tactics are to support the overall objective of this plan over a 12 month period. These objectives will be evaluated and measured pre- and post-plan, and adjustments will be made throughout to support trends. Once completed, this plan should meet its objectives.
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  39. 39. The Home Depot: IMC Plan 38 Guerringue, L. (2013, April 19). Can PR Professionals Continue to Reach Millennials Using Traditional Media? Retrieved from http://www.newsgeneration.com/2013/04/19/traditonal_media_millennial/ Hellman, J. (2014, January 21). The Home Depot: A Short SWOT Analysis. Retrieved from http://www.valueline.com/Stocks/Highlights/The_Home_Depot__A_SWOT_Analysis.aspx #.VA4rYfldWpc The Home Depot Business Toolbox: SWOT Analysis. (2014). Retrieved from http://www.homedepot.com/hdus/en_US/DTCCOM/HomePage/PRO/Pro_Business/Docs/S WOT-Analysis.pdf The Home Depot Foundation. (2014). Retrieved from http://www.homedepotfoundation.org/ HOME DEPOT INC (HD:New York Consolidated): Financial Statements - Businessweek. (2014, August 29). Retrieved from http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=HD Home Improvement Made Easy with New Lower Prices | Improve & Repair. (2014). Retrieved from http://www.homedepot.com/ Honigman, B. (2013, August 5). How Millennials are Shopping: 20 Interesting Statistics & Figures — Medium. Retrieved from https://medium.com/@brianhonigman/how-millennials- are-shopping-20-interesting-statistics-figures-c76fb1231fbb Hulu Advertising. (2014). Retrieved from http://www.hulu.com/advertising/
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  41. 41. The Home Depot: IMC Plan 40 Stone, M. (2013, November 7). Vocativ: Best Cities For People Under 35 - Business Insider. Retrieved from http://www.businessinsider.com/vocativ-best-cities- for-people-under-35- 2013-11?op=1 Wenz, D. (2014). How to Reach Millennials Through Mobile Email Marketing - BusinessBee. Retrieved from http://www.businessbee.com/resources/marketing/reach-millennials-mobile- email-marketing/ What kind of CPM does Hulu charge advertisers? - Quora. (2011, February 3). Retrieved from http://www.quora.com/What-kind-of-CPM-does-Hulu-charge-advertisers YouTube: Statistics. (2014). Retrieved from https://www.youtube.com/yt/press/statistics.html

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