This case discusses Lowe's strategy to optimize its marketing communications mix for its new "Next Generation Installed Sales" initiative. Lowe's aimed to move beyond its do-it-yourself customers and target the "do-it-for-me" customer segment with kitchen remodeling services. The case analyzes Lowe's customer decision process, pain points, competitors, and reviews its traditional versus digital marketing approaches. It recommends a balanced integrated marketing communications strategy using different channels like TV, digital, social media, and in-store marketing tailored to the customer's decision stages from awareness to post-purchase. A SWOT analysis and marketing mix framework are also provided to guide Lowe's optimized marketing plan.

1. LOWE’S COMPANIES INC: optimizing
the marketing communication mix
Title

2. 2 3 41 CASE SYNOPSIS 5
This case is a classic example of how to design Integrated marketing
communication for Lowe’s, the second largest home improvement retailer
in the world which had launched a new initiative Next-generation-Installed
sales in early 2009.
With this decision, Lowe’s was making a concerted effort to move beyond
its traditional Do-it-yourself customer base and capture the attention of
the do-it for-me customer.
Lowe’s chief competitors were the market leader Home Depot, Sears,
Menards, and IKEA along with an assortment of smaller independent
service contractors.
It illustrates how consumer insights lead to customer experience mapping
which then forms the basis of an integrated marketing communications
program.

3. 2 CASE BACKGROUND1 3 4 5
 The company was founded in 1946 in North Carolina with the strategy that
centered on offering customers low price products and services every day.
 The company focused on traditional marketing media in the past, but it has
moved towards providing customers with a complete kitchen remodeling
solution beyond just installation, the company changed its focus from
traditional marketing to digital marketing media.
 The company provides its customers free in-home consultations as well as
will work with the customers during the design, purchase and installation
processes that was missing in its traditional approach.
 It is now considering to optimize and design a relevant marketing mix for its
NIGS initiative.

4. 3 KEY ISSUEs1 2 4 5
 What did the customer decision process for a kitchen remodeling project
look like?
 What were the customer pain points involved in its journey to kitchen
remodeling?
 How can the IMC mix can be designed to have a balanced tandem of digital
and traditional medias to deliver a effective message to the customer?
 Which channel to be used at different stages of buying cycle of the
customer?
 What criteria should be used to select the best digital marketing tactics
among the options available?
 Determining the cost involved in using each media along with its reach
among the customers?

5. 4 Inferences1 32 5
STRENGTHS
Second largest home retailer in the
world
Offer products at low prices
Trusted position of the company
OPPORTUNITIES
Devoted customer base
NIGS initiative
Improvement of the customer pain
points by drawing customer journey map
WEAKNESSES
Limited interaction with the customer
during purchase process
Presently no after sale service is
provided
Limited involvement of the customer at
the end & beginning of buying cycle
Threats
Highly fragmented home renovation
industry
Competitors like Home Depot, Ikea,
Sears, Menards
2008 economic recession
SWOT

6. 4 Inferences1 32 5
TARGET GROUP
• Do-it-for-me customers
• Women who preferred third party involvement but
with they being asked at every decision making point.
• Low to mid income range customers
DECISION MAKING
• INFLUENCERS-family, friends, other professionals
• Important communication stages of buying
cycle(Exhibit 8)
1.Incubation stage(35% importance)
2. Post completion stage(25% importance

7. 4 Inferences1 32 5
• Kitchen remodeling solution (along with services)
PRODUCT
• Mid range-$20,000
PRICE
• Charlotte, North Carolina
PLACE
• Traditional(TV & print media, in-store marketing, consumer
promotion),Digital media(social media tools, website,online
customer service)
PROMOTION
Marketing Mix

8. Media Mix for NGIS Communication Plan Cost of Acquired Media
Television $450000
Magazine $69230
Direct Mailing $250
In store marketing $10000
Traditional Media Costs (a) $529480
Display Advertising( CPM)( for 500,000 unique
visitor
$125000
SEO ( for 500,000 unique visitor) $50000
Digital Marketing Costs (b) $175000
Interactive webtools $ 50000
Promotional E-Mails $ 20000
Social Media NO COSTS
Online Customer Service tools (c) $70000
Total cost (a)+(b)+ (c) $77480
4 Inferences1 32 5

9. Avertising Tool
Advertising Tool Advantages Challenges
Television Has worked well and driven traffic for
sales
Very costly and message might not be
effective at the incubation stage of
decision process
Print Ads Could show the ‘Before-After’ phases
effectively and is extremely selective
Falling circulation numbers and high
costs, difficult to communicate value
Consumer Promotion Generate interest and enhance awareness
, if promoted to appropriate
demographics
Short term basis and could harm th brand
on long term
In store Marketing Effective way to make customers aware of
remodeling activity
Unclear as to where exactly in the store to
place the materials
4 Inferences1 32 5

10. Advertising Tool Advantage Challenge
SEO Could decide how much to pay,
selecting right keywords would ensure
the target audience.
Selecting the landing page –whether it
should be the remodeling page or
homepage, rely on 3rd party agencies to
manage SEO and SEM.
Display advertising Present reasons as to what the
consumers should chose Lowe and
could be targeted to the user’s interest.
Display advertising was considered
annoying because they wasted
bandwidth and distracted from web
page.
Social Media tools More trusted market initiator,
influencing customer perceptions and
preferences.
Frustrated customer’s could use site for
negative reviews and discouraging
other buyers, also lack of control.
Customer Design Tools Allow customers to chose from
different options and present both
estimated cost and timeline, cut the
incubation time .
Not Sure whether to have & maintain
such a tool in –house, buy of the shelf
or contract out the service.
Customer Service Tools Provide timely and relevant data like
Ask a consultant, Track your order.
High monetary investment, personnel
training required to provide such
services.
4 Inferences1 32 5

11. Exhibit 7 is Inferred on the basis Sales Funnel and the level of
involvement of the consumer. For creating
• Stage-Incubation/Visioning. Stress on creating Awareness about
the NGIS , TV would be the best media with the broadest
reach(50).( Traffic)
• Stage-Active Shopping- For creating an Interest among the buyers a
combination of TV and digital media can be used(35). (Lead)
• Stage- Design& development- For creating a Desire among
customers Digital destination , paid media and organic searches can
be used.(Lead Nurturing)
• Stage-Purchase, Installation and Post completion. This is the stage
where the customers will take an Action .According to the
inference Social media could be leveraged upon for purchase ,
followed by digital direct post advertising. ( Sales)
4 Inferences1 32 5

12. 5 Recommendations1 2 43
The company should use the various medias as follows-
1.Awareness period: traditional media as its effectiveness is
highest at this stage(Exhibit &7)
2.Interest creation: digital media as people trust other people’s
reviews before buying and like to see various remodeled
kitchens
3.Desire generation and action: paid search, direct selling
mediums (salesperson)
4.Post sales: digital media for building customer relationship

13. THANK YOU!
Anjali Mehta Traya Roy Chowdhury