Marketing Strategy for Home Depot

This paper discusses the marketing strategy of Home Depot, including market analysis, risk of market entry, objectives and mission description, target market description, and more.

Marketing Strategy
IG005 Marketing Strategy
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Executive Summary of Marketing Plan
This paper addresses the following; services, household products and the marketing
Home Depot Strategy. It is one of the largest household products’ company. That is
evidenced by the fact they also have their set of problems. Its aim is also to identify
strategies of the firm, their execution and how they fit in the company in the short and
long run.
Product’s Analysis of Market Opportunity
The company has great plans for investing in $5.4 billion for sharpening their Omni channel strategy. It also have the plans for heightening inventory. That
will develop fundamental geographic boundaries which will enable the response of software in the region’s different area. Additionally, the technology is
also significant in analyzing the services’ and products’ market opportunity. For example, technologies enable the usage of data by the company, in a
manner that is traditional during the advertisement of products and services. The use of technology reduces cost while increasing the efficiency of analysis
for better decision making in advertising. With the current age, the use of data analytics and artificial intelligence technology have opened up countless
opportunities for marketing. Companies can now develop a strategy where they can have an acute understanding of the interests of consumers with what
they search, read and watch online. An example is the pop-up advertisements that normally appear on YouTube as a person is watching.
Analyze the External Environment
The pest analysis of home depot indicated the fact that some external factors could have potential effect on the companies basing on the macro-
environments. Additionally, external factors could open up more opportunities, despite the visibility of threats in environments that are remote. External
threats open up the scope of doing business, for the company. Because for the fact that different environments possess different traits and characteristics,
companies and businesses are forced to comply and expand their scope of operation to accommodate diverse environments. Also, the center of focus for
the Home Depot officials are on the political issues’ effects in the market for performance enhancement. External political factors are deemed as
international trade expansions, presenting opportunities. External political factors have great impact on multinational corporations.
Market Analysis with the Porter’s Five Forces
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The firm exploited regional expansions in analyzing the market of Home Depot using the Porter’s Five Forces. That is majorly because of the fact that
their political position is both stable and unpredictable in targeting customers. There is also a direct influence on the company by economic factors, given
the fact that it determines the economic conditions of the company. Social conditions also have a huge impact on the company, like investors and
employees. Technology also encompass the management systems and automations within the company that will present knowledge and opportunities for
the business. ERP systems for example, is a singular software with which dozens of company processes and functions are managed. Therefore, ERPs
completely changes the way of managing businesses.
Analysis of the Risk of Market Entry
Considering Home Depot’s large position in the industry, it bears a moderate risk of market entry. Despite the competitors in the sector of retail, the size
and position of Home Depot are partly because of the ability of Home Depot to maintain its large position in the industry and also because of the fact that
the company offers a program of consumer loyalty. That provides a cutting edge for the company, in the industry. The strength and opportunities of Home
Depot provides highlights to resilience, productivity and the competitive advantage that will continuously outweigh the weaknesses and threats of the
company for many years.
Objectives and Mission Description
The objectives and mission statement of the company highlight the activities of the business and their strategic direction. The vision and mission statement
underwent implementation in 1978. The company now leads in the improvement of home retail chain across the world. In addition to that, the mission
statement that is illustrated bears the concern for competitive pricing, quality and attractiveness for stakeholders and customers. The vision and mission
offers an indication of fulfillment of its original mission and vision statement.
Target Market Description
Home Depot leaders developed a target market for the maintenance of its marketing mix for the purpose of pleasing consumers. That kind of a strategy is
used for the selection of organizational objectives, characteristics and product attributes. For example, the company chose the differentiated targeting
strategy to gain the attention of contractors and homeowners. Business leaders identified the usefulness of the strategy because it enhanced the reputation
of the company and increased its sales.
Creating a Position Strategy
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The positioning of Home Depot appears confident, at least for the next ten years. The company must however seek to utilize the strategies for maintaining
its position to reduce the chances of jeopardizing its leading position, for instance the firm considering their credit policy that prevents consumers from
compromising identity and other kinds of developments. With the ever changing business environment, the ability of the company to enjoy one of the
leading positions is jeopardized. Therefore the company must brace itself for tumultuous moments. The primary focus of the company’s leaders is to
reduce weaknesses like demographics the main competitors like Lowes.
Describe the Market Mix Variables
Business variables and consumers are examples of variables. In addition to that, the leaders of Home Depot utilizes geographical locations, customer size
and the type of organization as variables to aid in the company’s marketing. The market mix of Home Depot compose of a dynamic set of strategies for its
prices, product, promotion and place distribution. The market mix is in regards to the efforts of business of ensuring a good implementation of the
marketing strategy. The marketing mix affords a much larger market share of a company when it competes with other companies. The marketing mix also
maintains their position while providing leadership for other companies to follow suit.
Conduct a Contingency Plan
The contingency basically comprises of the company’s repositioning to reduce prices and bargain. In such a case, the leaders of Home Depot would attract
the demographics of more women by enhancing training of customer service and maintaining cleaner stores throughout the incorporation. According to
Babson (2017), the company bears plans for creating strategies for corporate social responsibility in influencing social change. Such a gesture would help
the company to maintain a competitive advantage and excellent customer loyalty.
Create a Time Integrated With KPIs
Key indicators is a business measurement that determines overall performance of business in a certain period of time. The leaders of Home Depot use KPI
in the evaluation of progress to improve strategies as required and to achieve organizational goals. KPI will be used to measure the success of expenses,
cost and sales’ marketing campaigns and capture new customers. The benefits for the measurement of key performance indicators enable the leaders of
businesses to undertake the management of teamwork abilities, management performance, faster decisions and strategic objectives.
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The characteristics that are integrated with KPI include leading the need and desire of achieving business outcomes that include connection with corporate
goals, easy understanding and gauging the process overtime. Other attributes are; actions, accountability and the value over time. The table below provides
a good example of a Key performance indicator.
Development of a performance Dashboard Mockup
A performance mockup was developed for purposes of improving the bottom line through the reduction of the cost of productivity, mission effectiveness
and process. A similar system acts as a balanced scorecard which allows the alignment of the company’s strategic plan and the deployment of the process
of implementation. Through the creation of a performance mockup developments like that provides a rationale that allows leaders to expand usage in the
whole company and provide a rationale for improvement.
The figure below demonstrates a performance dashboard mock-up
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Devise Customer Feedback Mechanism
One should consider examining the service or product at hand, during the process of feedback collection from customers (Ferguson 2017). The
input should provide information and guidance in the process of decision making and influence the future of the product. Of great significance is the
measurement of customer satisfaction with the present customers getting their personal views that regard services and products.
Conclusion
Marketing is important to both the small and large firms and bearing a good understanding of such developments ought to enable leaders of businesses to
maintain a competitive advantage and enable leaders to embrace their futures. Since marketing develops customers for the company, it is one of the
important functions of a company or organization. Marketing is more than just creating awareness of products and services. It is most importantly
inclusive of creating and maintaining a culture for consumers. The company’s brand is also very instrumental in the development of a good culture. With
the understanding that marketing is not limited to creating a mob awareness of products and services, companies will strive to give back to the society. The
paper addressed the composition of the internal business environment with the controlled variable structures of management.
References
Barbaro, Michael, (2007). "Home Depot to Display an Environmental Label Retrieved on
Process indicator
Intended Impact
Outcomes
Indicators
Implemetation
stratgeies
Opportunity
problem
Short-term
Medium-term
Long-term
Outcomes
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February 4, 2017 from www. New york times.com
Berkshire, (2002) Evaluating Organization Structures retrieved on February 4, 2017 from
http://www.berkshireadvisors.com/uploads/Evaluating%20Organizational
%20Structure.P
Ferguson, E. (2017). Home Depot’s Vision Statement & Mission Statement, Retrieved
from panmore.com/home-depot-vision-statement-mission-statement
Home Depot, (2016) Overview Governance Document, Retrieved on February 4, 2017
http://ir.homedepot.com/corporate-governance/overview
Porter, M. E. (1996). What is Strategy. Harvard Business Review. 74, 6, 61-78.
Quiquent, (2010) Home Depot Strategy Internal organizational structure Retrieved on
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