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Team Baldwin

Team Baldwin. Francisco Alvarez William Bauer Matthew Pearce Warren Pettis Young-Soo Suh Timothy Vereb. Marketing Strategy. Print Advertising Emphasized pricing Produced in-house Broadcast Media Promoted the company, products, service and pricing. Target Markets.

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Team Baldwin

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  1. Team Baldwin Francisco Alvarez William Bauer Matthew Pearce Warren Pettis Young-Soo Suh Timothy Vereb

  2. Marketing Strategy • Print Advertising • Emphasized pricing • Produced in-house • Broadcast Media • Promoted the company, products, service and pricing.

  3. Target Markets • Do-It-Yourself Customers • Married male homeowner ages 25 – 34 with income of $20K - $40K • Do-It-For-Me Customers • Aging Baby Boomers with above average income • Professional Customers • Professional remodelers, general contractors, repairmen and tradesmen.

  4. Merchandising Strategy • Excellent Customer Service • Everyday Low Pricing • Wide Breadth of Products

  5. Clustering Strategy • In 2005, Opened 140 New Stores • 21 in Canada • 10 in Mexico • Most U.S. Stores Opened in Existing Markets • Raised Barrier of Entry • Reduced Overcrowding • Lowered Costs for Advertising & Distribution

  6. Location • 87% of Building Owned • Located Near Shopping Centers • Suburban Areas • Populated by Target Market • Online • 30,000 Items Based on Sales Potential • Online Sales Rose 100% in 2005

  7. Customer Service (D-I-Y) • Customer Cultivation • Highly Qualified Employees • Professional Clinics • In-Store Displays • Sales Personnel • Demonstrates Methods & Techniques • Feedback Mechanism • Variety of Installation Services

  8. Extra Services • Hands on Workshops • Kitchen Remodeling, Basic Plumbing & More • Load ‘N Go • Truck Rental by the Hour • Tool Rental Service • Offers Credit Programs through 3rd Parties • Approx. 4 Million Credit Accts Opened in ’05 • Home Improvement Loan Program • Finance Purchase of Large Sales

  9. Pricing • Committed to “Everyday Low Pricing” • Regularly Checks Competitors Pricing • Suppliers • Dependable Relationship with Suppliers • Purchase throughout the World • Mostly Purchases Directly from Manufacturer

  10. Products • Approx. 35,000 to 45,000 Products • Building Materials, Home Improvement Products and Lawn & Gardening Supplies

  11. Strategic Alliances • Formed Exclusive Relationships • Improves Product Features and Quality • Lowers Price of Those Products • Market Products Under Recognizable Brand Names • Berh Premium Plus, Hampton Bay, Husky & More

  12. Logistics • 16 Import Distribution Centers in U.S. & Canada • 10 Transit Facilities in U.S. & Canada • 40% of Merchandise Shipped through In-House Distribution Network • Remainder Merchandise Shipped Directly from Supplier

  13. Recruitment • Number of Employees Dependent on Store Size, Sales Volume and Season. • 68% of Employees are Full-time • Selection Process • Automated System Identified Qualified Applicants • Pre-Employment Tests • Panel Interviews

  14. Retention • Reduce Turnover to Below 20% • Causes of Turnover • Students Returning to School • Termination for Poor Performance • Temporary Positions • Semiannual Performance Reviews • VA + Q * A * E • Goals & Development Plans Mutually Set by Employees and Management

  15. Compensation • Employee Compensation • Paid Hourly (No Commissions) • Management-Level Eligible for Bonuses • Two Employee Stock Purchase Plans • Executive Compensation • The Components • Base Salary, Annual Bonus & Long-Term Incentives • CEO 2005: Salary 2.225M - Cash Bonus of 7M

  16. Training • Employee Knowledge Key to Company Success • Used Term: Training Them to “Bleed Orange” • Trained from Top-Down • Training Costs for New Store: $400K - $500K • Home Depot Television Network • Broadcast of Policies & Philosophies, Product Upgrades and More.

  17. Employees • Approx. 345,000 Employees • 26,000 on Salary • No Unions • No Work Stoppage • Management Felt Relations With Employees Were Very Good

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