Digital marketing campaign capstone project

CAPSTONE PROJECT-
GRAINGER AND BOSCH
Digital Marketing Campaign
ABSTRACT
Digital Marketing Campaign to increase the sales of
Bosch power tools by 10% on www.grainger.com
Karan Rustagi
Digital Marketing Specialisation

CAPSTONE PROJECT-Grainger and Bosch
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TABLE OF CONTENTS
1 Executive Summary 2
2 Client and Industry Analysis 3
3 Problem Statement 8
4 Consumer Decision Journey 8
5 Data Collection and Analysis 11
6 Channel Strategy 16
7 Test and Control Plan 21
8 Endnotes 23

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EXECUTIVE SUMMARY
The work in this document is a result of 6 weeks of effort expended in order to complete the
Capstone Project for the Digital Marketing Course offered by University of Illinois at
Urbana/Champaign via Courera.
This project is meant for the application of all the theoretical concepts that I have gone
through in the past 5 courses offered by the institute. The project uses the concepts of digital
marketing in order to help Grainger have an increase in the sales of Bosch power tools by
10%.
I have learnt the following from this project:
• Mapping Consumer Decision Journey
• Application of Digital Marketing Concepts
• Creating content for Digital Marketing
• Creating a test and control plan

3
CLIENT ANALYSIS
GRAINGER
Business model and strategy for growth:
Grainger is one of the most oldest and prominent suppliers of MRO products in the industry.
It primarily focuses on serving customers that are a part of healthcare, manufacturing,
hospitality and government sectors. The company is a distributor for over 7000 brands and has
a portfolio of more that one million products in USA alone. It also has operations spread across
160 countries.
The strategy for the growth of Grainger is as follows:
1.The most locations: Grainger has more than 600 stocking branches in north America,
because of which there is quicker distribution possible.
2.The most inventory: Grainger carries a large amount of inventory and they go in for the
service level as they are in ‘speed and convenience’ category.
3.The best catalog: Grainger also has the paper catalog as the consumers find it easier to use a
paper catalog. This is one of the most important things in the ‘speed and convenience’
category.
4.The easiest to use website: Grainger.com is well designed and easy to use. This ensures that
the customers manage to quickly go through the entire process of purchase on grainger.com.
Online presence (website traffic trends and social platforms)
Grainger is a pioneer in e-commerce. In terms of digital marketing, Grainger goes for the
following options:
1.Paid search
2.Display Media
3.E-mail
4.Social Media
5.SEO
Social media presence:
Facebook Page: 195,000 followers
Twitter: 25000 followers
LinkedIn: 94000 followers
Youtube: 4037 subscriptions
Instagram: 4516 followers

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Customers of Grainger.com:
Geographically, the visitors of Grainger.com are from the following countries:
USA (83.5%)
Canada (1.8%)
India (1.7%)
China (1.4%)
Mexico (1.2%)
Note: the above data is collected from Alexa.com

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MAINTENANCE, REPAIR AND OPERATIONS INDUSTRY
The MRO services companies provide products and services that are essential for the smooth
functioning of manufacturing plants and operational facilities. The products are generally
provided by original equipment manufacturers and are classified into product based and service
based facilities.
The MRO industry is highly competitive and is fragmented in nature. The only way for the
companies to differentiate themselves from the competition is to ensure that they provide
services at short notice and the products/services are available at competitive prices.
The market has been seeing consistent growth in the past. The CAGR is supposed to be 5%
which is good enough for the industry. The key drivers for the MRO market are:
1.Demand for reduced production downtime
2.Increase in manufacturing activities
3.Demand for predictive maintenance
4.Technological advancement
Competitors:
1.Sonepar
2.Wolseley
3.Rexel
4.Wurth Group
5.W.W.Grainger

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BOSCH
Bosch power tools:
Bosch power tools is a part of the Bosch group which is known as Robert Bosch Tool
Corporation.
The brand is the world leader in power tools and power tools accessories. The core success
factor for Bosch power tools is innovation. Each year Bosch launches more than 100 new power
tools in the market.
The brands which are owned by Bosch power tools is as follows:
Primary and Secondary Customers:
The primary audience are those who will be directly using the product and the marketing
campaign is directly targeted to them. Example for primary audience is: General contractor,
carpenter, electrician, plumber …
The needs of the primary audience is as follows:
1. Specifications of the product
2. Quality of the product
3. Usage of the product
4. Features of the product
The secondary audience includes the group of people who influence the purchase of the
products which are to be used by the primary audience Examples: purchase manager, finance
manager …
The needs of the secondary audience is as follows:
1. Price of the product
2. Usefulness of the product
3. Time of delivery
Trends between the primary and the secondary audience:
1. In terms of B2B marketing, the need for a product is recognized by the primary
audience.
2. The role of the secondary audience is to either approve the demand or reject it.

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3. There is direct relation between the primary and secondary audience. The primary
audience can pressurise the secondary audience to ensure that the product will be
bought
Perception about Bosch power tools:
Ideology: The short term profits will not overweight the customer trust and loyalty.
Bosch’s most important principle was to make products that would raise the quality of the life
of the consumer.
Thus, the perception towards Bosch is that the quality of the product is extremely high.
SWOT Analysis:
Strength:
1. Extensive focus on R&D-4593 Patents filed
2. Balanced portfolio
3. Continuous innovation
4. Quality of product
Weakness:
1. High costs
2. Employee productivity
3. Lesser access to customer
Opportunity:
1. Increased mode of selling
2. Increase in the demands for the products
3. Innovation in the industry
Threats:
1. New players in the market
Bosch power tools online presence:
Facebook: 1764000 followers.
Youtube: 4500 followers.
Twitter: 660 followers.
BOB community is a platform where the customers can get in touch with the others and with
the company and find a way of communicating about the power tools and the uses of the
power tools.
This community will thus inculcate the sense of a consumer loyalty for the company.

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PROBLEM STATEMENT
The major issue that we will work on this project is increasing the sales of Bosch power tools
on www.grainger.com by 10% under three different scenarios which are expressed in detail
in the following pages. The mode of increasing the sales is only via digital marketing.
BUSINESS OBJECTIVE, CONSUMER DECISION JOURNEY
AND CONCERNS
Scenario 1:
The customer knows that the product required to solve the solution is available from
www.boschtools.com , but what he/she does not know is the fact that there is a website from
which the tool can be purchased.
Questions related the marketing
objectives of the company alongside their
respective stages in the consumer
decision journey.
Analysis that are available at the
respective stages in consumer decision
journey.

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Thus, this means that Grainger does not even make it through the initial consideration set of
the consumers.
The objective of Grainger linked to this scenario is called “building brand awareness”.
Scenario 2:
The customer knows the product required, he/she also knows that the product required is
available on www.grainger.com and then comes the moment of purchase.
The customer will then start looking at the details of that product and then either make the
purchase or not.
The objective of Grainger linked to this particular stage is called “improving sales process”.
Scenario 3:
The customer initially looks into the power tools category from Bosch, but due to the
availability of a lot of different categories available from Grainger, the customer goes through
the active evaluation stage and starts to wonder if any other product can be used to satisfy the
needs.
The objective of Grainger linked to this particular stage is called “Influence Consideration”.
SCENARIO CDJ CONCERN ANALYSIS
1
Initial consideration
set
Information about
the product
Which websites are
available to
purchase the
product
Competitive
intelligence using:
1.Google Trends
2.Google Correlate
2
Moment of
purchase
What are the
specifications
offered by different
brands
Prices of the
products offered
under different
brands
Outcome analysis
using:
1.Mongoosmetrics
2.Live person
3.Customer search
history
3
Active Evaluation Is this the only
product available to
fix my problem
Experimentation/testing
using:
1. Adwords campaign
tester
2.google website
optimizer

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BUSINESS OBJECTIVES AND THEIR RESPECTIVE SCENARIO:
Scenario 1:
The objective of the company related this scenario as stated earlier is “Build awareness”. This
objective best suit the scenario only as the consumer just knows the product that is going to
be required to satisfy the needs. What the consumer does not know is that there is a company
called Grainger, which can be used to purchase the product.
Scenario 2:
The objective of the company related to this scenario as stated earlier is “ Improve sales
process”
This objective suits the scenario only as the consumer has logged into the website off
Grainger after visiting the website of bosch tools. The consumer has also gone straight to the
power tools ection. This means that the consumer is aware of the company and has no other
evaluation to make I terms of the category. The only thing left is to analyse if the consumer
has purchased the product or not.
The consumer might not purchase the product if the sales process is not very swift and easy.
Scenario 3:
The objective of the company related to this scenario as stated earlier is “Influence
consideration”
The objective suits this scenario as the consumer has visited www.grainger.com after visiting
www.boschtools.com and has gone straight to the plumbing category instead of the power
tools category. This means that the consumer is still actively evaluating its options to satisfy
needs.

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DATA COLLECTION AND ANALYSIS
BUSINESS OBJECTIVE KEY QUESTION DATA -> SOURCE
BUILD AWARENESS Do consumers recognize my
brand
Do customers recall my
brand
Number of players in the
market -> google analytics
Number of visitors from
bosch to grainger -> alexa
IMPROVE SALES FORCE Do my sales efforts result in
wins for my brand
Number of sales made ->
website
Quantity available ->
website
Ease of sales process ->
customer survey
INFLUENCE
CONSIDERATION
Do my products satisfy
consumer needs
Brand positioning -> alexa
Direct link to power tools
under grainger -> website
Key Sources of Data:
The data that is required based on the above stated objectives are:
• Competitor data
• Customer data
• Sales data
• Brand positioning data
The following are the available sources to collect the above-mentioned data:
• Primary data from Grainger
• Google analytics
• Alexa
BUSINESS
OBJECTIVE
KEY PERFORMANCE INDICATORS (KPI)
Build
Awareness
Acquisition KPI:
Clickthrough Rate – Bosch powertools page and ads
% New Visits - Bosch powertools page and ads
Cost per click on ads
Cost per impression
Behavious KPI:
Bounce rate
Abandonment Rate
Events per visit
Outcomes KPI:
Return on advertising spends

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Days to conversion
Improve Sales
Force
Acquisition KPI:
CTO on email (Details on epre-order)
Site traffic
CPA on email
Behaviour KPI:
Bounce rate on email
Session length
Abandonment rate
Outcomes KPI:
ROAS- sales conversion on email
% assisted conversion rate
Influence
Consideration
Acquisition KPI:
CTO on email (Asking customers to join email registry)
Unique open rate
CPA on email
Behavious KPI:
Bounce rate on email registry
Session length on email registry
Outcomes KPI:
Database conversion rate
ROAS based on email
Biases And Methods Of Eliminating Them:
Before we go in for the biases that may hamper the research, it is important to understand
what kind of research will be used for solving the issue in Grainger’s case.
The following picture will give enough reasons to show why Fundamental research is the
perfect fit for the type of research in Grainger’s case

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As shown in the above pic, fundamental research is suitable in this case as this research will
aim at solving a problem by adding to the field of application of digital marketing and it
researches individual case of Grainger increasing the sales of Bosch powertools by 10%.
Bias according to NCBI is: “systematic error [is] introduced into sampling or testing by
selecting or encouraging one outcome or answer over others” 7
. Bias can occur at any phase
of research, including study design or data collection, as well as in the process of data
analysis and publication
As this particular case is revolving around fundamental research and secondary data, there are
only a few biases that can hamper the entire process. The types of biases are as follows:
Sampling / Selection Bias:
This type of bias majorly takes place only when secondary data is included. Tis bias is
introduced in the selection of the data as the researcher would not have ensured that proper
randomization had been achieved. This would mean that the data selected would not
represent the entire population.
Interpretation Bias:
This type pf bias takes place when the results of an analysis have to be interpreted in a certain
manner. It refers to inapproporiately analysing or interpreting the results of an analysis. The
proper definition for the same is: Interpretive bias or interpretation bias is an information-
processing bias, the tendency to inappropriately analyze ambiguous stimuli, scenarios and
events. One type of interpretive bias is hostile attribution bias, wherein individuals perceive
benign or ambiguous behaviors as hostile.
Methods of avoiding the above mentioned biases:
• Creating a data analysis plan before the survey takes place
• Remaining true to the survey’s purpose
• Having a firm understanding of the topic

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• Clear definition of the required data
• Being specific in the research findings
• Avoid using broad terms during the analysis
DATA ANALYSIS PLAN:
Based on the research, the analysis chosen is descriptive . Grainger currently uses a few KPIs
which give them a rough idea of about how good their digital marketing campaigns are.
By data mining, conversion of data into information, and utilizing KPIs properly, powerful
insights can be developed about any digital marketing campaign.
Grainger uses certain data to measure the following KPIs:
• Click through rate (CTR)
• Cost per acquisition (CPA)
• Return on advertising spends (ROAS)
• Repeat visits
These are some of the most important KPIs that can be used to measure the results of a digital
marketing campaign, but other than that, a few more KPIs can be used to ascertain the
detailed results of a campaign. These KPIs as mentioned earlier are as follows:
• Click to open rate (CTO)
• Unique opens
• Site traffic
• Bounce rate
• Shopping cart abandonment rate
• Conversion rates
BENCHMARK FOR DATA TO BE COLLECTED:
To achieve an increase of 10% on www.grainger.com for bosch power tools, the following
benchmarks have to be set for the following online digital activities:
Display Ads:
The average CTR for display advertisements in USA and Canada respectively are 0.10 and
0.09. Thus, the CTR for the display advertisements from www.grainger.com should either be
the same or above the average CTR in the respective countries.
The average CPA in the e-commerce industry in 46.07$ and this should be the benchmark for
Grainger.
Email (Registrations):

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The benchmark based on the industry average for the e-commerce industry for CTO should
be 16.75% and for bounce rate, it should be lesser than 0.24%
Email (E-purchase):
The conversion rate for the industry in USA is 3.00% and the same or above should be the
benchmark for Grainger.
The average shopping cart abandonment rate is 69.70% and the rate should be lesser than the
average for Grainger.
Social media activity:
The benchmark for social media interactions with the posts according to social media
ambassador would be 11.4
Paid search:
The average click-through rate on AdWords paid search ads is about 2%. Accordingly,
anything over 2% can be considered an above average CTR. Thus, this should be the
company’s average.
Summary Of Plan:
OBJECTIVE: Increase sales of bosch power tools on www.grainger.com by 10%
Goal: Building Brand
awareness
Goal: Improving Sales
Process
Goal: Influence
Consideration
KPI: Share of visits, CTR KPI: CTO, Abandonment
rate
KPI: CTO, Bounce rate,
Unique open rate
Segment: On site search Segment: Purpose of visit Segment: Product
recommendation
Target: CTR- 0.10 (Display
ad)
CTR- 2% (Paid
search)
Target: CTO- 16.75%(
registrations)
CTO- 3% (E-
purchase)
Abandonment rate-
Less than 67%
Target: CTO (As mentioned
Before)
Bounce rate- Less
than 0.24%

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CHANNEL STRATEGY
Email And Display Campaigns For The Users In Audience Category 1
Scenario 1:
Display Campaigns: The banner should include company details and should be a flash ad to
gather the attention of the consumers. The advertisement should lead the consumers directly
to www.grainger.com
As it is quite easily visible on www.boschtools.com , there is no space on the left or the right
side of the page, and thus, the banner should be displayed on the bottom. Thus the size of the
banner should be 300*250.
Scenario 2:
Display Campaign: As the customer has logged into his account on www.grainger.com , and
has left the cart without purchasing it, the cookies can be used in order to use display
advertisements on various websites such as google, facebook and youtube
The advertisement can be on the right side of the websites. The size can be 300*600
E-mail Campaign: The customers can also be sent reminders about the offers available and
the quantity available on E-mail. This mail can also be sent to audience 2 for approval.
Scenario 3:
Display Campaign: As the customer has logged into the account and has started visiting
other categories, banner advertisements can be shown to the customer on the other websites
to show them what their needs are and the only solution would be bosch tools.
E-Mail Campaign: The customer should be sent reminders about the products under the
powertools category , the usage of the product, and the pricing , so that the audience can sent
it to audience 2 for approval.
Email And Display Campaigns For The Users In Audience Category 2
Scenario 1:
Display Campaign: The same display ad which was showed to the audience 1 will be shown
here.
E-Mail Campaign: E-mails to the procurement officers can be sent which state the salient
features of the website and why the company should buy from Grainger.

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Scenario 2:
Display Campaign: a comparative display advertisement can be shown to prove to the
customers how competitively priced the products are. The display ad can also show the quick
delivery process. The banner ads will be put up specially on www.google.com to ensure that
the audience sees it when they are doing research on other sellers.
E-Mail Campaign: In order to improve the sales experience, an e-mail can be sent to the
customers for registrations and to remind them about the powertools, and majorly their
prices.
Scenario 3:
Display Campaign: Redirecting display advertisement can be put up on google in order to
ensure that the customer goes directly to the power tools website. The display ad would show
the usage of the product.
E-Mail Campaign: An email can be sent to the audience which would describe the details of
the products along with their uses and pricing to ensure that the audience’s doubts are
cleared. The email would lead the audience straight to the powertools category.
RECOMMENDATIONS FOR DISPLAY AD:
Scenario 1:
Under this scenario, what the company (Grainger) has to do, is to create brand awareness on
the website of bosch power tools ie www.boschtools.com .The following is a mock-up ad
which shows the type of ad that can be displayed:
Scenario 2:

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For the customers who have logged in, and finalised the products, but have abandoned the
cart, display advertisements can be showed on websites such as facebook.com and
answer.com to ensure that they are reminded about the products viewed and the discounts
available. The following mock-up ad can be considered as an example:
Scenario 3:
For the customers who have logged in but have not visited the power tools category, it is
important that a display advertisement be made to ensure that the customers are reminded
about the usage of the product and what the product can do. This display advertisement can
be used on google and facebook to ensure that the customers are redirected to the website and
specifically, the power tools category. The following mock-up advertisement can be used as
an example:
Recommendations for E-Mail Ad:
Scenario 1:
It is important for grainger to ensure that e-Mails are being sent to the target consumers who
have visited Bosch. The company can ensure that they get registrations by providing
incentives to the consumers. The following is a mock-up email content for the consumers:

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Scenario 2:
The biggest issue faced by the company is in terms of the abandonment rate or the shopping
cart abandonment. The company can either send display advertisements or also send
personalised emails using cookies to remind the consumer that they have an item
unpurchased in their cart. The following is an email ad mock-up:

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Scenario 3:
The major problem is that the consumer visits another category instead of the power tools
category. There can be a link which will redirect the consumer directly to the power tools
category or the webpage of the power tool on grainger.
The following is a mock-up for the email:
Alignment of the email and display ad to Bosch power tools
Currently, Grainger’s emphasis on professionalism has a distinctly different look from that of
its competitors. The one thing that Bosch focuses on mainly is ‘Quality’. Bosch would not
mind pricing extra for ensuring quality as the company believes that maintaining long term
relationship is extremely important. Bosch also believes in creating a community for its users
in order to establish better relationship with them
Grainger is in sync with the same ideology as Bosch does. The value that Bosch provides is
quality in exchange for higher price. Grainger charges competitive prices for value added
services such as immediate deliver, emergency delivery, auto re-order etc. Grainger also
gives the consumers the opportunity to compare products from different brands in order to get
a better idea for purchase.

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Thus, Grainger is aligned with the brand image of Bosch tools and thus it compliments them.
TEST AND CONTROL PLAN:
Using the above figure, the objectives should be derived.
It is important to constantly test and make adjustments to this plan to counter outside
influences. There are many techniques that Grainger could implement to test and control its
Digital Marketing plan meeting its business objectives. Three specific techniques will be
examined: Surveys, Focus Groups, & Online Monitoring. These Test and Control techniques
will be planned for Grainger to meet the following business objectives: Brand Awareness,
Influencing Consideration, & Improving Sales Process.
Business Objective Test/Control Method Type of Research
Influence Consideration Focus Group Secondary/Qualitative
Brand Awareness Survey Primary/Qualitative
Improving Sales Process Online Monitoring Secondary/Quantitative

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Surveys:
Surveys should be created by www.grainger.com in order to gather primary data which
would ensure that the company would find out about the consumer behaviour. As there is an
increase in the number of customers who are available on social networking websites, online
social network surveys will be beneficial for the company. Surveys would help Grainger
better understand the consumers, and thus perform better in the market.
Surveys will give Grainger the content about brand awareness. Questions such as Do you
know Grainger? Do you purchase online? Why do you purchase from Grainger? Which
company do you prefer? What are the attributed influencing purchase? Can give some
qualitative data. This Qualitative data will not only inform Grainger the way it is perceived,
but what it needs to improve as well.
This type of survey will help the company better understand the consumers, their decision
making process and what the relationship with the competitor is.
Focus Group:
Focus Groups are recommended for Grainger to use when trying to Influence Consideration
of its products. This Primary data can provide marketing managers, product managers, and
market researchers with a great deal of helpful information, to entice people to choose
Grainger as their supplier of BOSCH Power Tools. focus groups have a distinct advantage
over some other types of market research: they are flexible by design, capitalize on decision-
makers ability to talk to their customers and their knowledge of their brand, product, or
services. This Test and Control Technique will be useful to gather information on customers
that access Grainger.com directly as well as customers that access BOSCH.com first. By
going ahead with focus groups, the company will be able to directly take inputs from the
customers and have the desired output in having positive influence on consideration of the
company for buying Bosch power tools.
Online Monitoring:
For improving the sales process, online monitoring is one of the best testing and controlling
tools available. Online Monitoring is investigating one’s digital/internet presence. The
Quantitative Data of Bounce Rates of the two websites will assist management at Grainger
assume a correlation between a failed link between customers searching for BOSCH Power
Tools on BOSCH’s website and those customers being redirected to Grainger’s plumbing
home page when accessed. Online monitoring can also be used to find out the stage at which
the customer has left shopping or abandoned his/her shopping cart. This would help the
company also find out why the shopping cart has been abandoned. This kind of primary
research will provide enough data to ensure that the sales process can be improved in the
future.

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ENDNOTES
Number of words: 3956
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