Lowe's Home Improvement Pitch Brief

1. NEW BUSINESS PITCH Let’s Build Something Together

2. NAME BRAND PITCH TYPE Media MARKET DATE September 28 , 2016 The Data You Need to Win This Pitch DESCRIPTION Home 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. th North America

3. 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. Magnuson Consumer Marketing Manager DECISION MAKERS by marci.grebstein@lowes.com eric.b.magnuson@lowes.com Client Profile / Market MAIN COMPETITORS

4. Home Improvement in the U.S. $318 BILLION 4.4% - HIRI.com - SALES IN 2015 home 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

5. 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 Center for 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.

6. Fast Food industry in numbersHome Improvement in 2016 37.9% Home owners planned to complete a Home Improvement project in 2016 49.8%Plan to do all the work 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

7. 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

8. 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-YOURSELF CUSTOMERS DO IT FOR ME CUSTOMERS THE PROFESSIONALS Looking for products to complete projects for other customers like interior designers and building contractors 16 MILLION CUSTOMER SERVED 857 Million TRANSACTIONS EACH WEEKIN US, CANADA & MEXICO IN 2015

9. 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

10. 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.

11. 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. Grebstein Chief 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

12. 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 Media Platforms 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 -

13. DIY HOME IMPROVERS 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. 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 PARTY GOERS

14. 54% DIY HOME IMPROVERS Compare the DIY Home Improvers Demographic with 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

15. 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 TOP HOME RELATED MAGAZINES READ HOME & GARDEN RELATED MAGAZINES 22% CLICK HERE TO SEE TOP DIY BLOGS

16. 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). ART APPRECIATORS 195.4 MUSEUMS & ART GALLERIES 191.4 American Visual Art Museum KNOW MORE FAVORITE MUSEUMS DISCOVER THEIR FAVORITE ARTISTS DISCOVER THEIR FAVORITE ART EVENTS

17. 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) 131.7 BOOKWORMS POETRY BOOKS 157.4 GOSSIP WEBSITES 165.5 TOP POETRY BOOK KNOW MORE DISCOVER THEIR FAVORITE WEBSITES Leaves Of Grass 195.4 GOSSIPERS

18. 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 BARS 160.3 CLUBS & DISCOS 153.8 NIGHTLIFE 161.2 • • • • • • DISCOVER THEIR FAVORITE CLUBS CLICK HERE TO SEE THEIR FAVORITE BARS

19. CONSUMER INSIGHTS SUITE Discover the Lowe’s consumer TRY NOW FOR FREE > on Cubeyou Consumer Insights Suite

Lowe's Home Improvement Pitch Brief

Filippo Taccia

Lowe's Home Improvement Pitch Brief