2. 2
Executive Summary
The Home Depot is known globally as the world’s largest home improvement retailer and is the
preferred choice for professional customers. Keeping these achievements in mind, this IMC plan
aims to “tame the beast” for the millions of do-it-yourself customers and position The Home
Depot as their go-to choice for all home-improvement needs. To achieve this, increasing brand
visibility and thought leadership among do-it-yourself customers is the biggest area of focus for
The Home Depot in the marketplace. The implementation of a new rewards program combined
with increased use of owned media for constant customer interaction highlight the approach The
Home Depot can take to reach this target audience. A combination of paid, earned and owned
media tactics will increase visibility and market share with various segments of the do-it-yourself
consumer target market.
3. 3
Table of Contents
Background...................................................................................................................... 4-5
SWOT Analysis................................................................................................................ 6-7
Target Market Definition .................................................................................................. 8-9
Target Market Example......................................................................................................10
Campaign Objectives & Strategies....................................................................................11
Integrated Creative Strategy Statement............................................................................12
Creative Brief .....................................................................................................................13
Creative Execution....................................................................................................... 14-15
Media Objectives ...............................................................................................................16
Media Strategies ................................................................................................................17
Media Tactics............................................................................................................... 18-19
Flow Chart..........................................................................................................................20
Public Relations & Social Media Objectives......................................................................21
Public Relations & Social Media Strategies ......................................................................22
Public Relations & Social Media Tactics ...........................................................................23
Measurement & Evaluation................................................................................................24
Conclusion .........................................................................................................................25
References................................................................................................................... 26-27
4. 4
Background
The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank in Atlanta, Georgia.
After the duo purchased two 60,000-square-foot warehouses, they set out to provide a
superstore that offered the largest variety of selection along with a staff that was well-versed in
every area of home improvement (The Home Depot, “The Home Is Where Our Story Begins,”
para. 3). Marcus and Blank founded the company on eight core values, “Doing the right thing,
building strong relationships, giving back, excellent customer service, creating shareholder
value, entrepreneurial spirit, taking care of our people and respect for all people” (Built From All
The Right Materials, 2016, para. 3). The values put in place nearly four decades ago still guide
the company today.
In addition to company values, The Home Depot utilizes an inverted pyramid approach to
service. With this approach, customers come first, then font-line associates, field support,
corporate support and the CEO comes last. The Home Depot believes that their success has
stemmed from the loyalty to their values and by following the inverted pyramid approach to
service (Built From All The Right Materials, 2016, para. 4).
An extension of The Home Depot’s commitment to service is their culture of advocacy,
volunteerism, and sustainability. In 2015, employees volunteered over 224,000 hours with Team
Depot, an employee-led volunteer group. Also, the Home Depot foundation invested over $130
million to support veterans between 2010 and 2015 (Menear, 2016). In the sustainability front,
The Home Depot was name a 2015 Industry Leader by the Carbon Disclosure Project, an
organization that works with businesses to reduce greenhouse emissions and water use
(Menear, 2016). The company also lead the way among large corporations during the recent
flooding events in Louisiana with donations to the affected areas (Boccacio, 2016).
The Home Depot isn’t just leading the way in corporate social responsibility. The company is
currently the largest home improvement retailer in the world with over 400,000 employees in
North America (Built From All The Right Materials, 2016, para. 6). According to the company
website, The Home Depot generated $88.5 billion in revenue last year and has over 1 million
products available for purchase through their online ecommerce platform (Did You Know, 2016).
Furthermore, the 2015 annual report showed that the company experienced a 6.4 percent
increase in gross profits from $28.4 billion in 2014 to $30.3 billion in 2015 (Menear, 2016, p. 21).
In terms of products and pricing, 20 percent of the company’s sales in 2016 have been on
orders $900 or more. For orders, The Home Depot uses a customer order management system
to connect all stores and online orders to make it easier to process customer orders (Dignan,
2016). The Home Depot also utilizes an analytics company to ensure that products receive
accurate price reductions across all stores (Rossolillo, 2016).
While The Home Depot remains ahead of its main competitors in many ways, the main
competitor Lowe’s has provided steep competition recently. According to Fernando (2015),
Lowe’s has identified improving customer service as one of its primary initiatives. Through the
use of improved in-store displays, adequate inventories, and professional customer focused
marketing strategies, Lowe’s has made strides to improve customer service (Home Depot Vs.
Lowes). Lowe’s has also formed strategic partnerships with companies such as Sherwin
Williams and created an ecommerce platform for professional customers in an effort to secure
the business of more professional home improvers (Derousseau, 2016).
5. 5
With competition and values in mind, The Home Depot’s current marketing strategies are
centered around customer service. The company breaks down their customer service marketing
strategies into three programs to target their three key audiences (Soni, 2015). The stores host
workshops and clinics to market to the do-it-yourself customer, which establishes an
educational and emotional connection. The company has a professional customer targeted
loyalty program named Pro Xtra and use exclusive products from industry leading suppliers to
attract all customers (Soni, 2015). Aside from their customer service marketing, The Home
Depot has three major sponsorships: ESPN College GameDay Built by The Home Depot, Major
League Soccer and the Mexican National Team (Sponsorship & Paid Media, 2016, para. 1).
1978 -
The Home
Depot
founded
1981 -
Team
Depot
began
1989 -
The
100th
Store
opens
1994 -
Canadian
Division
acquired
2000 -
ecommerce
platform
developed
2002 -
Mexican
Division
acquired
The Home Depot is currently the largest home improvement
retailer in the world with over 400,000 employees.
6. 6
SWOT Analysis
Strengths Weaknesses
Store locations in the United States,
Canada, and Mexico
The amount of selection available
through the online portal
Quality customer service processes
and protocol
Enjoyable shopping
experience/atmosphere
Improved supply chain method with an
emphasis on technology
Undifferentiated products and services
in relation to competitors
Similar marketing tactics for the
professional customer demographic as
the competition
Lack of rewards programs for general
customers
Poor store layout for general
customers
Opportunities Threats
Using social media to expand
customer service quality to consumers
Forming strategic alliances with
industry-leading product providers
Expanding corporate social
responsibility efforts
Increased consumer spending on
home improvement
Lowe’s new ecommerce platform to
attract professional contractors
Lowe’s customer-facing initiatives to
improve customer service
Competition has expanded to
additional markets (Australia)
The Home Depot outnumbers its main competitor, Lowe’s, in both physical locations and online
selection (Rossolillo, 2016). In addition to the company’s logistical supremacy, The Home Depot
has made strides in improving its overall supply chain method through the use of new,
innovative technology (Dignan, 2016). The company has also instituted a “whatever it takes”
policy and dedicated 60 percent of store labor hours to customer-facing activates (Soni, 2015).
While The Home Depot has clearly established itself as the frontrunner in the home
improvement industry, the company has several avenues for improvement. Currently, The
Home Depot partners with industry-leading products, including Behr, Weber, and KitchenAid
(Soni, 2015). By continuing to partner with industry leaders, The Home Depot can differentiate
its product selection from its competitors. Additional routes of improvement can be found in
corporate social responsibility and consumer spending. With the recent flooding events in
Louisiana, The Home Depot led the way with donations (Boccacio, 2016). Continued expansion
of the company’s corporate social responsibility efforts will set them apart from the rest. As
stated before, consumer spending is something that The Home Depot should take advantage of
as more consumers are spending money on home improvement (Derousseau, 2016).
On the other hand, The Home Depot will need to address some key areas to maintain its edge
over competitors. The company has yet to address to call for a rewards program suited for all
customers, not only professionals (Soni, 2015). Additionally, The Home Depot’s stores are
designed in a manner that is aesthetically-pleasing to professionals. With tall shelving only
accessible by forklifts and an overly-warehouse feel to the stores, The Home Depot is leaving
general customers confused (Fernando, 2015). Their main competitor, Lowe’s, has also
7. 7
instituted new initiatives to attract professional customers and improve overall customer service
while also expanding into new markets like Australia (Derousseau, 2016). The Home Depot will
have to take every positive and negative factor into consideration when deciding the direction of
their marketing communications strategies.
8. 8
Target Market Definition
“Developmentalists categorize middle age as people between ages 35 to 64, and they maintain
that healthy and unhealthy lifestyles and attitudes are the main concerns for those in this age
group” (Middle Adulthood Development, 2016).
Middle-aged men and women are a diverse and eclectic group of individuals that span a few
different generations. Many middle-aged adults are married with children, but an increasing
number have experienced divorce, financial trouble, and significant loss throughout their lives.
The Sandwich Generation, as it has been called, refers to many middle aged adults who are
now caring for their aging parents while financially supporting their millennial children.
The key demographic target is 35-55 years old with several segments within the group that
need consideration.
From a psychographic standpoint: “With an aging population and a generation of young adults
struggling to achieve financial independence, the burdens and responsibilities of middle-aged
Americans are increasing” (Parker & Patten, 2013). Middle-aged adults of the Sandwich
Generation have experienced the years of prosperity in the late 20th
century as well as the
economic turmoil of the late 2000s.
48 percent of these adults have provided some form of financial aid to their adult children in the
past year. Of those same adults, 21 percent have also provided financial support to their aging
parents (Parker & Patten, 2013).
Middle age brings with it significant changes. One major change is responsibility at work or the
lack of it. Many middle-aged adults lose responsibilities at work or lose their jobs all together
(Palmer, 2015). Today’s middle aged adults are facing technological changes as well. Many are
being forced to learn new skills in order to stay in touch with the world around them.
Adults who identify as middle age have experienced significant volatility throughout the course
of their lives. They have seen economic prosperity, the fall of communism, the rise of terrorism,
and the ups and downs of the current economic and housing market. Because of this they have
the ability to adapt quicker than the generation before them and are more open-minded, but not
as much as their predecessors the millennials.
A report from the National Center for Biotechnology Information studied 27 middle-aged adults.
The study found that middle-aged adults have the ability to have extraverted personalities while
also maintaining emotionally stability (Noftle & Fleeson, 2011). Middle-aged adults are at a
crossroads where status along with emotional and financial stability are major factors in their
day-to-day life.
Other findings from the report include:
Middle-aged adults vary the most of any age group when it comes to emotional
openness.
Compared to young adults, middle-aged adults are more agreeable and conscientious of
their actions.
9. 9
While middle-aged adults can balance extraverted personalities with emotional stability,
they are found to be less extraverted than young adults.
Summary:
Who will Home Depot be communicating to?
35-55 years old ethnically diverse do-it-yourself customers
Men are a primary segment with Caucasian men leading the way. All ethnicities should be
targeted.
Women are a secondary segment. With increased divorce rates and more women in the
workforce they are taking on home improvement independently.
Geographically, the Southeast United States is the prime target, but any geographic location
with a Home Depot should provide a market.
Based on psychographics, these are men and women who live with a sense of “agelessness”
and are concerned with financial stress placed on them by their aging parents and financially
unstable children. Many of these men and women have lost or changed jobs several times and
most likely have children. They are also men and women who are looking for an easier and
inexpensive way to get things done.
10. 10
Target Market Example
Meet Thomas, he’s a 43-year-old single father who lives in suburban Huntersville, North
Carolina, just north of Charlotte. He was born and raised in Huntersville, only leaving the town
for four years to get his B.S. in Graphic Design at the nearby University of North Carolina at
Charlotte. He currently works for a small design agency in Uptown Charlotte and makes an
annual salary of $70,000.
Thomas spends his free time watching ESPN and considers himself to be a “gym guy.”
Environmentalism doesn’t concern him as much as the financial stressors placed on him by his
21-year-old daughter who cannot find work after recently graduating.
He is always connected to the outside world on his iPhone. Whether it’s responding to emails or
staying up-to-date with clients on social media, Thomas is very technologically and socially
aware. His desire to master social media stems from his do-it-yourself mentality.
He puts a lot of emphasis on family. His parents are each 65 years old and require significant
care after a lifetime of tobacco use. His parents ensured that he had everything he and his
daughter needed as he began his adult life roughly 20 years earlier. Because of this, he
allocates a significant amount of his income to assisting his parents.
11. 11
Objectives and Strategies
Objectives
Increase sales among do-it-yourself customers by 10%
Encourage current customers to shop more frequently and for more reasons
Increase all combined in-store and online sales by 5%
Strategies
Establish The Home Depot as the go-to for all home improvement needs
Develop a rewards program for do-it-yourself customers
Promote The Home Depot as an industry-leader in volunteerism and charity
Offer a better store experience by creating a more effective and simple layout
Partner with additional industry-leading product providers
Communicate with do-it-yourself customers with interactive how-to videos via social
media
Acquire sponsorship opportunities with NFL and MLB franchises
Garner media exposure by hosting large-scale home improvement events
12. 12
Integrated Creative StrategyStatement
Creative strategy statement ideas:
The Home Depot helps every customer achieve the home of their dreams.
The Home Depot provides every customer with what they need to tackle home
improvement.
The Home Depot is a one-stop shop for products, services, and instruction for every type
of home improvement.
Creative Strategy Statement:
The Home Depot provides every customer with what they need to tackle home
improvement with ease.
Affordable home
improvement supplies
Wide variety of products
and services
Great online ecommerce
platform
Top-rated products in
various product categories
Independent, do-it-yourself
customers
Mindful of quality products
and pricing
Heavily invested in excellent
customer service
experience
Eager to learn both hands-
on and online
13. 13
Creative Brief
Client: The Home Depot Date:10/1/16
Type: Social media campaign
Why are we advertising?
To increase sales from do-it-yourself customers by 10 percent by end-of-year 2017.
Whom are we talking to?
Men and women, Age 33-55, Income $50K+, do-it-yourself customers, homeowners primarily in
the Southeast United States
What do they currently think?
I know The Home Depot is one of my choices for home improvement wants and needs, but I
feel unwelcomed by their professional-focused atmosphere.
What would we like them to think?
The Home Depot is my first choice for home improvement because of the ease of purchasing
and gratifying, money-saving rewards program.
What is the persuasive idea we can convey?
The Home Depot can help me handle all of your home improvement projects.
Why should they believe it?
The Home Depot has the most diverse and economical selection of home improvement
products and services available for purchase at lower prices.
What are the creative guidelines?
A series of paid social media campaigns with a unique hashtag highlighting the new Home
Savings rewards program targeted at do-it-yourself customers.
14. 14
Creative Execution:Social Media Campaign
Twitter:
Tweet #1: 124 characters for tweet copy. 24 used for image.
Ready to tackle your next home improvement task? Get started for less with the #HomeSavings
rewards program from @HomeDepot [IMG]
Tweet #2: 90 characters used for tweet copy. 23 used for link.
Redeem your #HomeSavings rewards with hands-on classes at your nearest @HomeDepot
[link]
Tweet #3: 115 characters used for tweet copy. 24 used for video.
Get your kids involved! The #HomeSavings rewards program allows you to get more out of your
local #KidsWorkshop at the @HomeDepot [video of an interactive kids workshop]
Facebook:
The weather is getting cooler and the holidays are just around the corner. Are you ready to
tackle that new kitchen you’ve been dreaming of? Enroll in The Home Depot’s Home Savings
rewards and make your dreams a reality! #HomeSavings provides savings on every product in-
store or online. You can also redeem your rewards points for unique hands-on classes at your
nearest store! Enroll today: [link]
LinkedIn:
What inspires you to tackle a DIY project? On this Motivation Monday we’re pleased to
announce our new Home Savings rewards program. Enroll today to earn special discounts on
15. 15
products across the store and online. You can also use rewards point to enroll in one-of-a-kind
DIY classes. Are you feeling inspired yet? Learn more here: [link]
Instagram:
Photo: A newly-remodeled patio area.
Caption: Dreaming of summer? Enroll in our Home Savings rewards program and get started on
the backyard of your dreams for less! Learn more about the program by visiting our profile.
#HomeSavings #SummerDreamin
Pinterest:
Develop a new board titled Home Savings. Include pins of DIY projects that can be made
simpler and cheaper by using the Home Savings rewards program.
Snapchat:
Develop an ad highlighting a family using the Home Savings program to complete a DIY project.
Place the ad in Live Story advertisements on sports-related Stories.
16. 16
Media Objectives
Achieve a reach of 3,000 target consumers in 2017.
Achieve a minimum 1,000 potential do-it-yourself customers enrolled in the rewards
program in the first quarter of 2017 and a minimum 2,000 current do-it-yourself
customers in the last three.
Utilize two-thirds of our media resources toward potential do-it-yourself customers and
one-third toward current do-it-yourself customers.
Increase sales from do-it-yourself customers by 10 percent by end-of-year 2017.
17. 17
Media Strategies
Utilize DIY-focused social media advertising to target advertisements both
demographically and geographically
Utilize paid social media campaigns to target DIY customers
Leverage DIY-focused television advertising to visually detail the new Home Savings
rewards program
Utilize DIY-focused magazine advertising (both digital and print) to target customers
based on their interests
Utilize DIY-focused search engine advertising to target customers based on their
searches
Display DIY-focused online banner advertisements on home improvement-focused
websites
Sponsor NFL teams to reach the target customers during leisure
Sponsor the ESPN Espy Awards annually to reach target customers during leisure
18. 18
Media Tactics
Display advertisements on Twitter, Facebook, Instagram and Snapchat for the
Home Savings rewards program targeted at 35-55 year olds. This tactic will allow the
Home Depot to garner exposure for its new Home Savings rewards with the target
audience.
Display advertisements on Facebook, Instagram and Snapchat each quarter with
season-specific content. This tactic will target the target audience with home
improvement projects relevant to the current season
Run paid social media campaigns on Facebook, and Instagram targeted at DIY
customers. This tactic will reach a broader segment of the target audience by
incorporating relevant content directly into their social media content without the
timeliness of organic campaigns.
Run paid search engine (pay-per-click) advertisements on Google with season-
specific content. This tactic will garner impressions by the target audience throughout
each season.
Run season-specific paid search engine (pay-per-click) advertisements on Google
targeted at the target audience on Saturdays and Sundays. This tactic will garner
impressions by the target audience on the weekends when many will be doing home
improvement projects.
Purchase advertising placements in magazines such as, Better Homes and
Gardens, Traditional Home, Real Simple, Good Housekeeping, CountryLiving, and
Southern Living. This tactic will allow The Home Depot to reach thousands of members
in the target audience that subscribe to these magazines both in print and online.
Run targeted social media advertisements on Facebook, Twitter, Instagram, and
Snapchat during Q1 and Q3/4 for the Home Savings rewards program. This will
allow consumers to be introduced the Home Savings rewards at the beginning of the
year and reintroduced before the holiday season.
Run targeted seasonal social media advertisements on Facebook, Twitter,
Instagram, and Snapchat. This tactic will expose consumers to seasonal home
improvement suggestions on various social media platforms year-round.
Run targeted advertisements on national television outlets (NBC, ABC, CBS, FOX,
ESPN, HGTV) for the Home Savings rewards program. This tactic will expose the
target audience and additional consumers to the Home Savings rewards program during
Q1 and Q3/4.
Run targeted seasonal advertisements on national television outlets (NBC, ABC,
CBS, FOX, ESPN, HGTV). This tactic will reach the target market and additional
consumers with season-specific home improvement content.
19. 19
Develop strategic sponsorships for pre-game and in-stadium billboards with the
Denver Broncos, Carolina Panthers, and New York Giants NFL teams. This tactic
will connect with a portion of the target market as well as additional consumers during
leisure activity.
Leverage website banner advertisements on Home Advisor, Do It Yourself, DIY
Network, and HGTVwebsites. This tactic will reach a number of do-it-yourself
consumers through visitors of each website within a given quarter.
Leverage sponsorship of the ESPN Espy Awards annually. This tactic will include
television, online, and print advertisements as well as repeated brand mentions during
the televised event.
21. 21
Public Relations/Social Media Objectives
Public Relations
Help increase lead generation of do-it-yourself customers by 10%
Persuade 100,000 general customers to enroll in the Home Savings rewards program by
December 31, 2017
Influence 40% homeowners (men and women) 35-55 years old to shop at The Home
Depot
Increase corporate social responsibility awareness in communities serviced by The
Home Depot by 10% between January 1, 2017 and December 31, 2017
Social Media
Increase The Home Depot’s website conversions (from blog to ecommerce platform) by
15% with the development of a do-it-yourself blog
22. 22
Public Relations/Social Media Strategies
Public Relations
Develop an employee education program about The Home Depot’s corporate social
responsibility
Position The Home Depot leadership as thought leaders in the realm of do-it-yourself
customer service through editorial and broadcast interviews
Promote the need for the Home Savings rewards program at home improvement trade-
shows, conferences and events
Develop a company-wide handbook for hands-on learning experiences each store can
provide to customers
Position The Home Depot as the go-to source for do-it-yourself customers
Social Media
Inform customers about The Home Depot’s Home Savings rewards program by
implementing a targeted rewards program campaign on social media
Generate one blog per week to control and deepen the message about the Home
Savings reward program and The Home Depot as the leader in do-it-yourself service
Continue to build The Home Depot’s do-it-yourself messaging by through strategic
“following” and interaction with members of the target audience on social media
23. 23
Public Relations/Social Media Tactics
Public Relations
Distribute a bi-weekly employee newsletter to inform employees of their tax-deductible
CSR opportunities
Distribute educational materials to store managers to assist them with local CSR
engagement in their communities (volunteer time is tax deductible to encourage
participation)
Distribute a bi-weekly newsletter to customers who are enrolled in the Home Savings
rewards program with hands-on learning opportunities at their local Home Depot
Distribute teaching materials to store managers to assist them with hosting hands-on
learning events
Register for home improvement trade shows in major metropolitan areas (Example:
Capital Home Show, Chantilly, VA)
Secure interview opportunities with national press (New York Times) to discuss The
Home Depot’s thought leadership
Secure broadcast interview opportunities surrounding the rewards program and
corporate social responsibility announcements with national outlets (NBC, ABC, CBS) to
discuss The Home Depot’s thought leadership
Host pro-bono hands-on workshops for customers in each locality a Home Depot store is
situated
Social Media
Develop 300-500-word blog posts focused on key topics in do-it-yourself home
improvement on a bi-weekly basis
Develop a landing page for blog content on The Home Depot website
Consistently interact with target customers on Facebook through interactive posts,
comments and reactions
Consistently interact with target customers on Twitter by strategically “following” and
responding to user tweets
Consistently interact with target customers on Instagram by posting interactive photos
and videos, as well as strategically “following” and responding to user comments.
Consistently interact with target customers on Pinterest by developing informative “pins”
and “boards” and strategically interacting with users
Develop a monthly blog/newsletter focused on The Home Depot’s corporate social
responsibility efforts
Create a YouTube campaign for the Home Savings rewards program
24. 24
Measurement and Evaluation Plan
After the first three quarters in 2017 each measurement will be conducted on a small scale. In
the first quarter of 2018 a large-scale measurement and evaluation of the overall IMC execution
will take place.
Media Evaluation
Compare sales each quarter and overall to track increase in do-it-yourself sales
How much did all sales (in-store and online) increase each quarter? Overall?
Conduct email surveys to determine reach of paid media advertisements
Include surveys on each Home Savings rewards application to determine which form of
media (if any) drove the customer
Conduct frequency tests each quarter to determine which forms of media are the most
effective in driving consumer sales
Conduct focus groups with members of the DIY target audience each quarter to discuss
various paid and owned media strategies
Social Media & Online Evaluation
Monitor unique website visitors each quarter
Monitor and compare conversions from social media to ecommerce sales each quarter
Monitor and compare conversions from the DIY blog to ecommerce sales each quarter
Track each social media platforms analytics on a weekly basis (impressions, followers,
mentions, etc.)
Utilize tools such as Nuvi to accurately monitor and respond to negative customer
sentiment on social media platforms
Track conversion rates on pay-per-click online banner advertisements each quarter
25. 25
Conclusion
This integrated marketing communications (IMC) plan for The Home Depot optimizes the
communication of the company’s strong brand message through the use of several forms of
media. Driven by metrics, a variety of tactics span the realms of marketing, advertising, public
relations and social media to ensure an increase in brand presence for The Home Depot. While
The Home Depot is widely-known as the largest home improvement retailer and the sales
charts validate it each year, the brand has struggled to overcome the competition when it comes
to do-it-yourself customers. The outcomes of this IMC plan will include increased brand
awareness, brand loyalty and sales growth from do-it-yourself customers. The Home Depot has
earned its place as one of the most trusted and respected brands over the past several
decades. This IMC plan will give The Home Depot the tools it needs to continue to forge a path
to continued success.
26. 26
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