lowe's home improvement pitch brief
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NEW BUSINESS PITCH
Let’s Build Something Together
NAME BRAND PITCH TYPE
Media
MARKET DATE
September 28 , 2016
The Data You Need to Win This Pitch
DESCRIPTIONHome improvement retail giant Lowe’s has launched its first media agency review in more than a decade. Creative is not part of the review, and sources
indicate that incumbent OMD may not defend. A Lowe’s spokesperson told Adweek:“As part of the normal course of business, we regularly review the agencies and vendors that support our company to evaluate our objectives against
performance and ensure we remain strategically aligned. As the consumer and media landscape continues to rapidly evolve, we are exploring the most compelling and efficient ways to reach consumers to help ensure we remain well positioned.”
Both OMD and BBDO declined to comment, though Lowe’s confirmed that the creative portion of its business was not affected. Sources tell us that OMD will not defend the account but that another Omnicom entity will most likely participate in the review, which remains in the RFI stage at this time.
International consultancy R3 is managing the process.
Lowe’s has launched its first media
agency review in more than a decade.
thNorth America
Lowe’s Companies, Inc. was founded in 1946, is based in Mooresville, North Carolina, and operates as a home improvement retailer. It offers products for home maintenance, repair, remodeling, and decorating. The company provides home improvement products in various categories, such as lumber and building materials, tools and hardware, appliances, fashion fixtures, rough plumbing and electrical, lawn and garden, seasonal living, paint, flooring, millwork, kitchens, outdoor power equipment, and home fashions. It also offers installation services through independent contractors in various product categories; extended protection plans; and in-warranty and out-of-warranty repair services.
The company sells its national brand-name merchandise and private branded products to homeowners, renters, and professional customers; and retail customers comprising individual homeowners and renters. As of January 29, 2016, it operated 1,857 home improvement and hardware stores in the United States, Canada, and Mexico. The company also sells its products through online sites comprising Lowes.com, Lowes.ca, and ATGstores.com, as well as through mobile applications.
FINANCIAL OVERVIEWCOMPANY BACKGROUND
2015 Net Sales (mil)
2016 Employees
Employee Growth Percent
Assets (mil)
Net Income Growth Percent
Sales Growth Percent
59,074
270,000
-
-
4.9%
-
Ms. Marci P. Grebstein
Chief Marketing Officer
Mr. Eric B. MagnusonConsumer Marketing
Manager
DECISION MAKERS by
marci.grebstein@lowes.com eric.b.magnuson@lowes.com
Client Profile / Market
MAIN COMPETITORS
Home Improvement in the U.S.
$318 BILLION
4.4%
- HIRI.com -
SALES IN 2015home improvement products
2016 FORECASTED GROWTH
- HIRI.com -
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
of U.S. adults made some type of home improvement in the past 12 months.
53%
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
of adults who did home improvements spent $1,000 or more.
56%
HIRI.com
HIRI.com
Boomers Still Leaders in Home Improvement
Baby Boomers
Gen Xers
Pre Boomers
Millennials
47.8%
34.3%
15.3%
2.6%
Home Improvement spending share by generation
- JCHS -
According to
Harvard’s Joint Centerfor Housing Studies
With the massive generation of Millennials overtaking the Baby Boomers in number, the home
improvement industry will grow
at a 3.5 percentage rate annually in the years ahead.
Fast Food industry in numbersHome Improvement in 2016
37.9%Home owners plannedto complete a Home
Improvement project in 2016
49.8%Plan to do all thework themselves
26.6%Plan to do split the work with a contractor
29.8%BATHROOM
28.6%OUTDOOR LANDSCAPING
25.9%KITCHEN
TOP AREAS IMPROVED
Lowe’s was ranked the
18th largest retailer globally in the
National Retail Federation’s 2014
Fast Food industry in numbersLowe’s Home Improvement
2015 NET SALES$59.074 BILLION
• • •
4.9%2015 NET SALES GROWTH
• • •
17% LOWE’S MARKET SHARE
• HOME IMPROVEMENT INDUSTRY •
24% HOME DEPOT’S MARKET SHARE
Lowe’s Retail
LOWE’S OWNS
1840 STORES
+4.6%
CUSTOMER SEGMENTATION
SAME-STORE SALES
RETAIL CUSTOMERS
70%
RETAIL CUSTOMERS ACCOUNT FOR ABOUT 70% OF LOWE’S SALES
DO-IT-YOURSELFCUSTOMERS
DO IT FOR MECUSTOMERS
THEPROFESSIONALS
Looking for products to complete projects for other
customers like interior designers and building
contractors
16 MILLIONCUSTOMER SERVED
857 MillionTRANSACTIONS
EACH WEEKIN US, CANADA & MEXICO
IN 2015
Fast Food industry in numbersLowe’s Revenue by Product Category
HOME FASHION, STORAGE & CLEANING 6%
ROUGH PLUMBING & ELECTRICAL 9%
FASHION ELECTRICAL 10%
HARDWARE 11%
LUMBER & BUILDING MATERIALS 12%
KITCHEN & APPLIANCES 14%
OTHER 1%OUTDOOR POWER EQUIPMENT 4%
MILLWORK 6%
FLOORING 6%
PAINT 6%
SEASONAL LIVING 7%
LAWN & GARDEN 8%
Source: Lowe’s Financials
Fast Food industry in numbersFocus on Technology
FIRST RETAILER IN SPACE
Lowe’s partnered with Made in Space to become the first retailer to launch a 3D printer into space. The printer allows astronauts to manufacture tools and parts on demand.
Customers are already using Lowe’s Innovation Labs’ 3D scanning and printing services to
produce custom or hard-to-find replacement parts.
HOLOROOM AND VIRTUAL REALITY
Lowe’s also implemented its Holoroom technology in select US stores. Holoroom enables Lowe’s customers to visualize the impact of potential home improvement projects in the kitchen and bathroom in virtual reality. The technology also allows the customer to make changes to the planned project in the Holoroom
The Holoroom is an improvement over the MyLowes feature on its web portal which
allows the customer to store room dimensions online and visualize the impact of design
changes.
Fast Food industry in numbersImproving Digital Presence
SNAPCHAT2015 Media Spending $769 Million
- Source: AccessConfidential.com -
LATEST CREATIVE “Jeff’s Story”
Type: Online Advertising
- Source: AccessConfidential.com -
FACEBOOK VIDEO
“In the past, we did lots of ‘how-to’ content that was informative and instructional. But this year, we want to have more inspiring content with a focus on digital and social to reach older millennials,” said Grebstein.
Marci P. GrebsteinChief Marketing Officer
FLIP-SIDE SERIES
Targets new homeowners
Since July, Lowe’s posts one “Made in a Minute” Facebook 360-degree video per month covering different do-it-yourself ideas aimed at attracting Millennial consumers.
360° Videos
The company used Snapchat to create a series of videos called “In a Snap” in May of this year,
where viewers can hammer, drill or chisel to complete a DIY project by tapping the right
place.
IN A SNAP SERIES
- Source: WSJ.com -
Short videos that simultaneously show what happens when a homeowner does and doesn’t do common household tasks
TOP SOURCES TOP SOURCES BY GENDER TOP DIY CONTENT
Fast Food industry in numbersDIY Inspirational Sources
59.1%Home Improvement
55.3%Home Decoration
42.0%Gardening
59.4%General Home Improvement /DIY Sites
40.7%Social MediaPlatforms
37.8%Retail /Commercial Sites
51.5% 25.3%
21.4% 8.3%
17.2% 35.5%
SOCIAL MEDIA
DECOR BLOGS
ONLINE VIDEO
- Source: Rhythmone.com - - Source: Rhythmone.com -- Source: Rhythmone.com -
DIY HOMEIMPROVERS
QUICK DEFINITION: DIY customers shop for products and supplies to complete
home projects by themselves.They often rely on blogs or magazines to find new ideas or ‘how-to’ guides to complete the projects they have in mind.
47%
10%
20%
0
30%
13-17
• • •
• • •
18-24 25-34 35-44 45-54 55-69
77%FEMALE
62%MARRIED
71%WITHOUT CHILDREN
HOME DECORATORS & DIYs
197.7 195.5
READERS
180.3
ART APPRECIATORS
161.2
PARTYGOERS
54%
DIYHOME IMPROVERS
Compare the DIY Home Improvers Demographicwith Lowe’s Female Audience
Lowe’s audience overlaps with our DIY
Home Improvers demographic by 54%
in interests, including: Home &
DIY, Art, Nightlife and Reading
LOWE’S HOME IMPROVEMENT AUDIENCE CROSSOVERS
Lowe’s Audience is highly interested in Home Decor and,
compared to DIY Home Improvers, are more engaged by
Household Supplies & Appliances (31.1%).
DIY Blogs are followed by 29.4% of Lowe’s audience while Home and Garden Magazines are read
by only 9% of them.
DIY HOME IMPROVERS:HOME DECOR & DIY
DIY BLOGS
33% POPULARITY
CLICK HERE TO SEE TOPHOME RELATED MAGAZINES
READ HOME & GARDENRELATED MAGAZINES
22%
CLICK HERE TO SEE TOP DIY BLOGS
LOWE’S HOME IMPROVEMENT AUDIENCE CROSSOVERS
DIY HOME IMPROVERS:ART
Art isn’t appreciated as much as DIY Home Improvers do.
The Art Appreciators trait scores 115.2 popularity points.
Therefore, Museums and Art Galleries gather less interest
(117.5).
ARTAPPRECIATORS
195.4
MUSEUMS &ART GALLERIES
191.4 American Visual ArtMuseum
KNOW MORE
FAVORITE MUSEUMS
DISCOVER THEIR FAVORITE ARTISTS
DISCOVER THEIR FAVORITE ART EVENTS
LOWE’S HOME IMPROVEMENT AUDIENCE CROSSOVERS
DIY HOME IMPROVERS:READING
Reading isn’t a hobby for Lowe’s audience, as
suggested by the under-indexing of the
readers trait (75.0)
However, gossip seem to attract some interest
among Lowe’s customers.They over-index as
Gossipers (123.4) and, like DIY Home Improvers, visit Gossip related websites
(140.3)
131.7BOOKWORMS
POETRY BOOKS157.4
GOSSIPWEBSITES165.5
TOP POETRY BOOK
KNOWMORE
DISCOVER THEIR FAVORITE WEBSITESLeaves
Of Grass
195.4GOSSIPERS
LOWE’S HOME IMPROVEMENT AUDIENCE CROSSOVERS
You’ll hardly meet a Lowe’s customer in a club.
The party goers trait scores 84.4 popularity points, while Nightlife is just below the average (97.0).
However, Lowe’s audience shows a good interest in Bars
(137.0)
DIY HOME IMPROVERS:PARTY
BARS160.3
CLUBS &DISCOS153.8
NIGHTLIFE161.2• • • • • •
DISCOVER THEIR FAVORITECLUBS
CLICK HERE TO SEE THEIR FAVORITE BARS
CONSUMER INSIGHTS SUITE
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