Ace Hardware Presentation

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  • Mention what a Consumer Cooperative is. Because it is a co-op and not a franchise, each Ace Hardware store looks different. Ace has placed a focus on Ace stores exhibiting some similar characteristics, such as signaled and core product lines. The Vision 21 program, as this is called, is aimed to make all stores look recognizable as an Ace Hardware. Growth Coincided with \n\n
  • Side note: Compare TruValue and Home Depots position to ACE Hardware. They have to keep a prices in TrueValue, if they fluctuate they may lose customers to their competitors. Keep in touch with quality. \n\nDuring times of recession when consumer income decrease, sales are low. Geographic Forces. Since they are con\n
  • Organized in term of which products are placed where.\nMore power because of size.\nLocal Ownership allows for better customer relationship due to better communication between the customers and employees. One-to-One relationships. \nShortage of Employees lead to poor management of store. \ntill an ongoing problem at Ace was the sizable minority of dealers whose stores were not sufficiently computerized, whose inventory mix generated inconsistent profits, and whose retail presentation did not fit the homogeneous image Ace desired.\nThreats- Customer, if a competitor opens a store nearby and has more variety could captyre their customers. Lack of Advice to customers because they are so few in number.\nFrequency of Market, their own market is limited to the number of sales. Chainsaw example. \n\nInventory Management- Shortages of products which the customers wanted, and products didn’t arive on time etc. \n\n\n
  • "The mission of the Ace team is to satisfy the customer." When something goes other than the way it was planned, we do everything in our power to make it right. You have the Ace promise on that! Ace believes in being to the community what it wants Ace to be. Ace provides many niche products not typically found in hardware stores including, fireplaces, stoves, pool supplies, bird food and feeders, and special lawn and garden offerings. Ace's strategic plan also called for improvements in its warehousing operation through technological advances and increased cooperation with vendors. Goals included vendor consolidation; enhanced electronic data interchange between vendors, warehouses, and retailers; and the expansion of vendor-managed inventory systems to control up to one-fourth of inventory.\n
  • DIY consumers who like to build products themselves as a hobby, who are relatively of an older generation having free time on their hand\nContractors- people who are building, \n
  • Unsought - Ropes, Locksmith, Chainsaw\nThey add value to the core products (shoppiong and unsought) by selling quality, high value products like Ralph Lauren Paints. \nAlthough paint is generally considered a low-growth commodity, it is a do-it-yourself mainstay. Low brand loyalty and high price sensitivity made it an ideal private label product. By the early 1990s, Ace's paint division was expanding faster than the rest of the paint industry, and had become the foundation of a private-label program of nearly 7,000 items. In 1991, the paint facility expanded, and in 1995, a second paint facility was acquired in Chicago Heights, Illinois. From 1988 to 1993, private label sales grew at an average annual rate of 12.9 percent, to $350 million. The group planned to transform its private label into a national brand through extensive promotions in the mid-1990s.\n
  • Bundle Pricing- They sell bulbs in bundles.... to show focus on revenue rather than profit. ..\n
  • The Helpful Hardware Club is ACE’s Loyalty Program. rewards purchases at our stores with quarterly rebate checks, super coupons, in store specials, special sale offerings, and timely information on current home products.By 1984, Ace's national advertising budget topped $10 million, most of which was spent on television spots. Ace capitalized on its members' reputation for having knowledgeable personnel with the slogan 'Ace is the place with the helpful hardware man.' This slogan was later modified to include the gender-neutral 'helpful hardware folks.' Television spots often featured celebrities, including singer Connie Stevens and actress Suzanne Somers in the 1970s and 1980s, and football commentator John Madden in the 1990s. The company continued to emphasize service in advertisements that showcased 'helpful' Ace dealers around the country through the middle of the decade. Ace sales more than doubled during the 1980s, from $801 million in 1983 to more than $2 billion in 1993.\n\n
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  • Ace Hardware Presentation

    1. 1. ACE Hardware“The Helpful Hardware Man”
    2. 2. IntroductionFounded in 1928 as Ace Stores IncSold in 1978 to become a ConsumerCooperativeLargest Co-op in the USAs of 2005, the company owns 4600 storesspread across 50 states and in 70 countriesRay Griffith currently serves as the President and CEO of Ace Hardware Corporation
    3. 3. Environmental FactorsCompetitive: Major Competitors are TrueValueand Home DepotEconomic Forces: Business Cycles affect theperformance of the company.Geographic Forces: Accessibility to consumersinfluence where they locate their stores.
    4. 4. SWOT AnalysisStrengths: Well Organized, Largest Co-Op,Local OwnershipWeaknesses: Inventory Management Problems,Shortage of Employees, Not as much varietyOpportunities: DIY Market growth,Customization of Equipment, Internet OrdersThreats: Competitors, Frequency of Sales
    5. 5. Marketing ObjectivesSatisfying Consumer NeedsBuilding trust by assuring quality products at theright time and placeBe an integral part of the community byproviding employment and other products.
    6. 6. Target MarketDIY ConsumersContractorsHome Repair ServicesNearby consumersMiddle-Income Consumers
    7. 7. ProductCore Products: Shopping & Unsought ProductsSell Branded and Own-Label ProductsLack of Providing services hinders their valueaddition to the product.Differentiate their products through branding
    8. 8. PricingLower than CompetitorsHave special promotion and timely salesUse Psychological and Bundle Pricing to inducecustomers
    9. 9. PromotionHelpful Hardware ClubInternet AdvertisingPrint Media such as Mail-in Coupons
    10. 10. Questions & Answers

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