Building Towards a Better Future

and a Better You

Team #1
Kathryn Cruz, Diana DiNapoli, Rita Murray, and Cynthia Rivera
Lowes Marketing Strategy
MAR: 349-Strategic Internet Marketing
Pace University - Spring 2015
Dr. Ipshita Ray

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TABLE OF CONTENTS
Executive Summary....2
PHASE I ..3
SWOT Analysis.3
Industry Analysis ..6
Industry Structure and Competition...10
Company Analysis ...13
Target Audience Analysis.....14
PHASE II ....20
Marketing and Product Objectives...20
Target Markets ...21
Points of Difference ...24
Positioning .....27
Product and Price28
Promotion and Placement ..32
Works Cited ...38

LOWES MARKETING STRATEGY

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As a group, we choose to develop an Internet marketing plan for the home improvement
chain, Lowes. We found a mutual interest in addressing this market. Lowes suffered some
setbacks including closing down branches and having their customers credit card information
stolen. Lowes needed to redefine itself and utilize social media and e-commerce to appeal to
their customers. We felt we could add a unique perspective and use online marketing techniques
to expand Lowes target market, increase sales, and build brand loyalty.
Executive Summary
Lowes is an American home improvement and appliance retailer that was founded in
1946. With the execution of this marketing plan, we hope to target and cater to all demographics
utilizing the Internet and social media. Our goal is to create a brand with a community feeling
with our customers, and to develop marketing promotions through the Internet and mobile
applications. Our slogan, Building Towards a Better Future and a Better You, implies that we
want customers to trust and believe that Lowes will be there for every milestone in their lives.
Our essential goal is for customers to trust our brand and company, while employing the Internet
and social media trends, which are rapidly emerging in todays culture. We believe that we have
developed a strategic Internet marketing plan for Lowes Home Improvement. Through our
marketing plan, we believe Lowes will redefine itself and operate strategically through the
Internet and e-commerce to appeal to all demographics and current customers. We feel our
marketing plan will add a distinctive perspective and use online marketing techniques to expand
Lowes target market, increase sales, and build brand loyalty.

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PHASE I
Situational Analysis
This situation analysis starts with a snapshot of the current environment in which Lowes
Companies, Inc. finds itself. By providing a SWOT analysis, we can identify strengths,
weaknesses, opportunities, and threats to provide a solid foundation of the company itself.
SWOT Analysis for Lowes
Internal Factors
Management

Offerings

Marketing

Strengths
Lowes has an experienced
board and CEO (Robert A.
Niblock), whom have worked
their way up in the company
and have a well-established
reputation.
Lowes operates a
decentralized management
system.
Lowes offers a wide range of
products all of which have to
do with home improvement.
They also sell appliances,
connect homeowners with
contractors, home service
professionals, and offer
customers personalized
attention regarding their home
projects. This includes in-store
consultations and design
services, delivery and
installation services, and instore educational workshops,
Lowes has a lot of awareness
because of the number of
stores based in Canada,
America, and Mexico. Lowes
utilizes social media sites such
as Facebook, Twitter,
Pinterest, and Youtube to
attract and interact with

Weaknesses
A decentralized management
operation could cause
disagreements between upper
management and store level
managers.

Lowes is not the only home

improvement store offering
these types of services.

Lowes fails to attract more

customers through their online
marketing. Lowes also does
not have national awareness.

LOWES MARKETING STRATEGY

Personnel

Finance

Manufacturing

External Factors
Consumer/Social

Team 1

prospective customers. Lowes

largely markets towards
women. Lowes also
introduced an online tool in
2011 to help customers track
past purchases to simplify
managing, maintaining, and
improving homes.
Lowes has a well-trained and
highly motivated workforce.
Their in-store employees help
homeowners and give advice
on what to buy and assist them
with projects. Lowes has over
265,000 full- and part-time
employees.
Lowes is a Fortune 100
company and in 2014 their
company revenues totaled
$56.2 billion. Lowes has an
excellent growth in sales
revenues.
They recently experienced a
17% increase in their thirdquarter net earnings. They are
a publicly traded company
with a stock price of $74.
Lowes relies on many
different supplies. They have
an innovative program that
strives to source, develop, and
manage diverse suppliers;
particularly those run by
women and/or minorities.
Opportunities
Lowes appeals to many
different demographics of
people including young men
and women as well as older
men and women. Lowes has a
wide variety of products and
services that appeal even to
people who dont own homes.
Lowes is especially known
for its marketing towards

People are unpredictable and

may not always be willing to
provide specialized attention
to the customers.

Expanding to open new chains

may hurt the company rather
than help. They may not have
enough capital to spare even
though their earnings are
increasing.

These suppliers are mostly

small businesses. This can
lead to a backlog of orders and
products.

Threats
Home Depot and other home
improvement stores, such as
Ace Hardware, appeal to the
same demographic of people.

LOWES MARKETING STRATEGY

Competitive

Technological

Economic

Legal/Regulatory

Industry Analysis

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women and producing a

female friendly environment
in their store.
Lowes has a distinctive and
recognizable brand name.
Lowes continuously offers
new services in order to stay
ahead of the competition and
to attract new customers.
Lowes has tried to infiltrate
social media in order to appeal
to younger customers.
Lowes is affiliated with
Porch.com. Lowes offers their
services via in-store kiosks,
which connects customers
with home service
professionals and contractors.
Lowes also has a relatively
strong Internet presence with
the creation of their online
tool, MyLowes. Lowes also
has an app available free for
both Apple and Android.
The recent upturn in the
housing market has helped
Lowes business improve
significantly. As more people
are able to buy new homes,
Lowes will be able to profit
more.
Lowes acts conscientiously in
managing its employees and
operations in order to ensure
their business runs smoothly.
Lowes complies with proper
regulations and standards.
Lowes is properly insured in
order to deal with any lawsuits
or problems.

Other home improvement

chains are recognizable and
offer similar services. They
also utilize social media
marketing more successfully,
which shifts buyers away from
Lowes.

Negative postings on social

media sites harm the
reputation of Lowes.
Technology does not always
work as it is supposed and
often needs to be updated. It
must be maintained in order to
ensure it will work properly.

The housing market has been

unpredictable since its decline
back in 2008.

Home Depots customer base

was recently hacked, which
allowed the hackers to steal
multiple credit card numbers
and other personal
information. There is the
threat of this occurring at
Lowes as well.

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In the home improvement industry, there are minor hardware companies like Ace
Hardware and Do It Best, but the main competitor of Lowes is Home Depot. The sector alone is
over a $9.1 billion industry. Lowes as of March 20, 2015, operates 1,840 home improvement
and hardware stores in the United States, Canada, and Mexico (finance.yahoo.com). In the home
improvement industry Lowes is compared as second to the industry giant Home Depot.
Just to note in the industry, Ace Hardware in a small company when compared to the
home improvement giants like Lowes and Home Depot. Ace is geared and marketed as the local
hardware store. By sales it is the #1 hardware cooperative in the US, ahead of Do It Best. Ace
dealer-owners operate more than 4,600 of Ace's 4,700 hardware stores, home centers, and lumber
and building materials locations in all 50 US states and about 60 other countries (hoovers.com).
Stores range in size and locations from urban shops to large rural locations. Ace, like Lowes and
Home Depot, distributes products as electrical and plumbing supplies, outdoor and garden
equipment, hand tools, house appliances, and power tools.
However, the national and main competitor for Lowes is Home Depot. The Home Depot,
Inc. operates as a home improvement retailer. As of the February 1, 2015, the company has 2,269
stores located throughout the United States, including Puerto Rico, the U.S. Virgin Islands,
Guam, Canada, and Mexico (finance.yahoo.com).
As for Lowes and Home Depot in the home improvement industry, both companies
operate and sell various building materials, home improvement products, and lawn and garden
products, as well as provide installation, home maintenance, and professional service programs.
Both companies in the industry offer repairs, remodels, home decorating, instillation programs
that include cabinets, countertops, roofing, and any type of service that involves home
improvement. See chart below for Lowes main competitor comparison (finance.yahoo.com).

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The numbers below signify that Home Depot is leading the industry overall. The chart below
illustrates that Home Depot has a bigger presence in the industry with more employees, larger
revenue, net income, and market cap.

Lowes overall has a great online presence; however there can always be improvements.
The Lowes site itself is easy to navigate and offers direct links to its social media pages, which
makes it easy for consumers to get connected. According to Compete.com, a digital intelligence
website that monitors online behavior of millions of consumers, concluded as of January 2015,
Lowes.com had a total of 16,073,829 unique visitors per month (UVPM).
Continuing, Lowes has a total of seven social media sites listed on their website for
consumers to get connected with the brand other than its initial site. The social media sites listed
on the website are Tumblr, Instagram - 73K followers, Facebook 3.1 million likes, Twitter
197K followers, Pinterest 3.5 million followers, YouTube 136K subscribers, and Google Plus
722K followers. By having multiple social media sites, it allows Lowes to target different
demographics and customers of a variety of ages. However, with all these social media sites
Lowes offers, new social media is always emerging. For example, a few of the more recent ones
are Snapchat and Vine. Although Lowes has a Tumblr presence, the social media only averages

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about 2 notes per post. It is important for Lowes to keep up with their following to help target
new demographics like young adults. In total, Lowes has an approximate 23.7 million people
following Lowes website including social media.
Regarding digital sales, according to emarketer.com, in Lowe's Digital Strategy Looks
Beyond Ecommerce article, Lowe's earned $1.07 billion via ecommerce on total sales of $53.42
billion in 2013. The article also explains that Lowe's mobile site to makes it more helpful for
shoppers both before and after they make a purchase. The app is available for smart phone
mobile devices and tablets. The app includes tools that points customers in the direction of items
they might need. Just like many other companies and brands, Lowe's tracks past purchases of
their shoppers, allowing them to suggest additional products or complementary items. The
mobile and tablet app also features store maps that guide customers to the place where they can
find the items. Consumers can also create lists, read reviews and watch how-to videos in the
connivance of their hands.
Some online trends that are popular with Lowes are hash tagging, how-to videos, the doit-yourself (DIY) posts, quick home improvements, and keeping up with seasonal trends. Lowes
keeps up with seasonal trends by posting indoor gardening in the winter, and more recently, DIY
outdoor fire pits for the summer. Lowes also keeps up with lifestyle trends on spring colors to
re-do rooms using in trend argyle patterns.
With all these positives and segments of growth regarding Lowes, there are a couple of
factors Lowes needs improving. Going up against their biggest competitor in the industry, Home
Depot, it is important to keep up with the trends and the online presence to keep people and the
young adult demographic engaged. According to compete.com, Home Depot has a UVPM of
24,504,188 in the month of January 2015. That is almost a 9 million unique visitor difference
than to Lowes site. Lowes 16 million UVPMs may seem like a lot, but Lowes needs to
increase traffic to their site in order to compete with Home Depot. On Home Depots website,

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they list only four social media sites for customers to get connected. Home Depots social media
varies from Facebook - 1,813,743 likes, Twitter 273K followers, Pinterest - 253K followers,
and Youtube at 82K subscribers. For the most part, Lowes has a stronger social media presence
than Home Depot. Lowes should use the social media numbers as an advantage to attract people
into their website by posting links and allowing people to visit their page. Another issue due to
the lack of growth for Lowes is the appeal to young adults. Since young adults are
predominately on social media, it is an easy way for Lowes to attract them since the ages of 1826 are either going to college, which is perfect for dorm improvements, or young adults getting
their own apartment.
As for demographics, in a Forbes 2013 online article, If Lowe's Wants To Get Serious
About Home Depot, It'll Have To Man Up, it explains that Home Depot had a 7% store sales
increases in Q4 2012 which eclipsed the 1.9% increase of Lowes. In 2013, Home Depots stock
became a quality stock reaching a 52 week high, which surpassed Lowes once again. Further
research in the Forbes article indicates that Lowes most loyal customers are consistently
dominated by females, while Home Depot continue to have an even mix of both male and female
shoppers. This is statistic is noteworthy because the male demographic on average, tend to spend
around of 35% more per month on home improvement supplies than females, which concludes
that the male demographic is more efficient to reach than women, in which Lowes lacks.
Another statistic to take note of is the gap between men shopping Home Depot more often than
Lowes male loyal customers by an average of about 18% over the course of 2013.
Industry Structure/Competition
Lowes has a number of direct competitors in the market, with one clear threat: The
Home Depot. Both brands specialize in home improvement goods, and have consumers with a
developed a brand loyalty. The following in-depth analysis of the Home Depot will help

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determine their strengths and weaknesses, and can then be utilized to improve the Lowes brand,
and attract new consumers.
Products:
Though Lowes and The Home Depot are both strong leaders in the home improvement
market, their brand identities are vastly different. The Home Depot website, as well as its brickand-mortar locations are dark, rugged, and more masculine-looking, than the bright and clean
look of Lowes. Despite their differing appearances, their products are similar. If consumers are
in need of a particular item for their homes, it is highly likely that they will find what they need
at either place.
A parallel product line does not mean that they are offered at the same price point.
According to The Home Depot, Nobody beats [their] prices. For instance, if Lowes and Home
Depot were selling the same exact product, but said product is more expensive at Home Depot,
they will either price match, or sell the product at a 10% discount (The Home Depot Low Price
Guarantee).
Revenue/Sales/Customer Satisfaction and Behavior:
In the latest annual American Customer Satisfaction Index results, it is noted that
satisfaction with retail stores, especially The Home Depot, have decreased drastically. Due to its
recent credit card security breach, The Home Depot fell towards the bottom of the home
improvement category, with a score of 76 (Mahoney). Despite the holiday time security breach,
The Home Depot experienced its biggest Black Friday ever this past year. The company reported
an 8.3% increase in sales, leaving them with $19.2 billion for its fiscal fourth quarter. Looking
towards the future, The Home Depot tells investors that they are expecting sales to grow between
3.5 to 4.7%, with competing stores sales growing between 3.3 to 4.5% (Mahoney).
Looking at the chart below, it is evident that The Home Depot has had quite a successful
past year, in terms of net earnings, compared to Lowes. For each quarter of 2014, Home Depots

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net earnings were all between $1.4 and $2.1 billion (Quarterly Earnings Archive), while
Lowes barely reached $1 billion (2015 Financial Releases).

Net Earnings 2014 Fiscal Year

$2,500

$2,100.00
$2,000

Net Earnings (in millions)

$1,500.00

$1,400.00

$1,500

$1,400.00

$1,040.00
$1,000

$624.00

$585.00

$500
$0

Q1

Q2

Q3

$450.00

Q4

Quarter
Lowe's

Home Depot

Marketing Strategy:
The Home Depot has developed a very strong marketing strategy that has been working
for them, especially during this past quarter. Home Depot tends to attract more of the
professional consumer base contractors, builders, traders, interior designers, renovators, etc.
while Lowes attracts more of the DIY (Do It Yourself) home improvement group (Soni). They
have a huge social media presence on Facebook, Twitter, Pinterest, YouTube, and on their blog.
Craig Menear, Home Depots president of U.S. retail, stated that the company is continually
shifting towards online sales and digital marketing. They have also been using more targeted
personal messaging in order to maintain relevance amongst their consumers, which they believe
is working for them. Their print advertising costs have gone down over 60% in the last 5 years,
and now, it only makes up less than 10% of the companys advertising budget, with digital
marketing making up 36% (Mahoney).

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Strengths:
One of the strengths of the Home Depot brand is their social media presence. They have
273k followers on Twitter, 1.8 million fans on Facebook, 250k followers on Pinterest, 13k
followers on Vine with over 7 million loops, and 81k subscribers on YouTube, proving that they
have a decent-sized online following. On each of these social media platforms, the content
creators show great personality, reflect typical Home Depot shoppers, and make themselves
easily relatable to consumers.
Another one of their strengths is their mobile application. It has an easy-to-use interface,
uses geo-location to provide consumers with store-specific deals, and also offers ready access to
inventory (Mahoney). Not many retail brands have an app this sophisticated, which definitely
puts Home Depot a step ahead of the rest of the competition.
Company Analysis
Lowes was founded in 1946 in Wilkesboro, North Carolina and began trading on the
New York Stock Exchange in 1961. Lowes has grown from a small hardware store to the second
largest home improvement retailer in the world. Lowes currently operates 1,840 home
improvement and hardware stores across North America, including more than 70 Orchard Supply
Hardware stores.
Lowes retail customers are homeowners and renters who can be divided into two
categories: construction and trade, and maintenance, repair, and operations. Lowes provides
customers with the best prices, products, services, and inspiration to help them make their dream
homes.
Lowes online marketing plan was only implemented a few years ago when they
launched MyLowes, which connects potential customers with employees via the Internet. This

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helps customers ask questions and plan their home improvement projects online. MyLowes
helped to integrate Lowes into peoples lives in a more meaningful and useful way, rather than
just relying on the stores. This builds brand loyalty, creates lifetime customers, and attracts new
customers. This project helped increase Lowes online presence, which helped improve in-store
sales.
Lowes earns 2.0% of its total sales from ecommerce. By continuingly improving their
website and adding new features such as MyLowes, they can increase not only online sales but
also in-store sales. Lowes also created their own app, which offers a wide range of services that
point customers in the right direction. Customers can also create shopping lists, read reviews,
and watch how-to videos. Customers can also communicate with Lowes social media sites in
order to see DIY videos and submit questions. Lowes earns 2.0% of its total sales from
ecommerce. By continuingly improving their website and adding new features such as
MyLowes, they can increase not only online sales but also in-store sales. Lowes also created
their own app, which offers a wide range of services that point customers in the right direction.
Customers can also create shopping lists, read reviews, and watch how-to videos. Customers can
also communicate with Lowes social media sites in order to see DIY videos and submit
questions.
Target Audience Analysis
Lowes Companies, Inc., has a customer base that grown from its local community of
small town North Carolina origins to become the 8th largest retail chain in the United States, and
2nd largest home improvement retailer in the world. Lowes now services an international market
with around 15,000,000 customers a week in the US, Canada, and Mexico. The majority of
Lowes customer base consists of 2 major categories: professionals and non-professionals. The
non-professional customers, mostly made up of homeowners and renters, can fluctuate on the

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scale of both do-it-yourself (DIY) and do-it-for-me (DIFM) in their spectrum of needs.
Professional commercial businesses customers consist of both the construction trade and
maintenance & repair organizations.
Over the past few years, Lowes has identified their target market as being in a mindset of
the creator. The current user of their brand is looking for a high quality and personal
experience, while maintaining an elevation of style while paying a low price. The Lowes
customer is always in the market for new ideas and home improvement solutions whether they
are a homeowner, renter, or Pro customer. While they still lag behind competitors, Lowes most
loyal customers are consistently female, though only by a slight margin of 51-49%. Men
however, tend to spend 35% more per month on home improvements, leaving room to capture
this more efficient customer base.
According to recent MRI data, 44% of the people shopping at Lowes have a postgraduate degree. This statistic is important in relation to the breakdown of industry spending
based around levels of education. The below chart graphs provide a breakdown of consumer
spending habits within the home improvement retail specialty industry. As you can see, the
$5000 or more sectors is the only area on a whole where the graduate degree sector pulls ahead,
but still only accounts for a small population of overall spenders.

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450
400
350
300
250
200
150
100
50
0

15

HIGH SCHOOL - 12 YEARS

(GRADUATED) HIGH
SCHOOL - 12 YEARS
(GRADUATED) Sample
COLLEGE - 4 YEARS
(GRADUATED) COLLEGE - 4
YEARS (GRADUATED)
Sample
ATTENDED GRADUATE
SCHOOL - DEGREE
ATTENDED GRADUATE
SCHOOL - DEGREE Sample

Their highest populated age group is the 25-34 year old bracket (16.61%), which mostly
consists of first time home buyers. By far the Lowest age demographic of store visitors with the
past year is the 18-24 year old market (7.51%), even trailing the 65+ demographic (14.2%).
Again, this customer information varies slightly from overall industry data whose 2 largest
population are the 45-54, and 55-64 year old age gap. This means that the Lowes customer is a
bit younger than the industry average.
400
350
300
$5000 OR MORE

250

$2000 - $4999

200

$1000 - $1999

150

$251 - $999
UNDER $250

100
50
0
18 - 24

25 - 34

35 - 44

45 - 54

55 - 64

65+

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Lowes gears their target towards full-time employees. Almost 60% of this group has
been at a Lowes in the past 12 months, compared to the 10% of part-time workers and 30% not
working at all. This is fairly in-line with the industry standard. I think it is important to point out

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the significant portion of Retired individuals who spend on Home improvement.

900
800
700
600
$5000 OR MORE
500

$2000 - $4999
$1000 - $1999

400

$251 - $999

300

UNDER $250

200
100
0
EMPLOYED FULL TIME (30+ HOURS)

RETIRED

Lowes attracts couples. 66.96% of married individuals have been to a Lowes store,
compared to 23% of singles. In terms of family, there is a relationship between age of children
and of visiting a Lowes. Couples with children under two years old are only 7.32% likely,
compared to 2-5 years, 14.48%, 6-11 years, 19.32%, and 12-17 years, 20.62%. Like the rest of

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the industry, Lowes is especially attractive to couples. This usually stems from the fact that
building a home is more commonly done by those with a family.
1,200
1,000
800

PRESENTLY MARRIED
PRESENTLY MARRIED

600

WIDOWED WIDOWED

400

NEVER MARRIED NEVER

MARRIED

200

DIVORCED/SEPARATED
DIVORCED/SEPARATED

NOT MARRIED NOT

MARRIED

In terms of geography, sectors are clear. In the North East, only 17.42% people have
been in a Lowes the past year, while in the south, 44.21% of individuals have. Areas are comparably low in the North East, Midwest, and West regions as well. The below map of Lowes
locations shows how they play to these strengths.

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The highest population 140 of Lowes stores can be found in Texas, making up its highest
population, followed by Florida with 117 stores, and North Carolina with 113 stores. That being
said the highest percentage of stores for its population is its home state of North Carolina. As of
February, 2015, Lowes operates 1,835 locations worldwide.
Lowes looks to differentiate their customer from the competitors customer by providing
them with occasion-based solutions and product that build their design and technical capabilities.
They cater to customers looking expand their current capabilities from DIFM to DIY, while
fulfilling the need of professionals. They are able to do this by providing a wide variety of
product services, including drive-through lumber yards, outdoor gardening centers, and
commercial business center. More recently, the company has started to focus on the online sector.
In May, 2012, they created the job of Chief Customer officer and appointed in order to better
position themselves to attract new customers as housing markets declined and online sales rose.
They are looking to capitalize on both the frequent (daily to weekly) shopper, as well as the
seasonal (monthly or less) shopper to create more value for customers looking to combine their
online and in store experiences.

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PHASE II
Market-Product Focus
This section describes Lowes new marketing and product objectives, target markets, points of
difference, and positioning based on their e-commerce and online presence.
Marketing and Product Objectives
Lowes marketing intent is to fully utilize its online e-commerce site to increase sales and
provide more information to do-it-yourself (DIY) customers. Lowes also intends to redesign and
reinvent their app in order to boost e-commerce sales and appeal to a younger audience. Their
updated app will also feature a service called Pro Connect, which is designed especially for the
professional market. Lowes intends to be more involved in social media campaigns in order to
attract potential customers on a larger scale. Lowes also intends to work more closely with the
professional market in order to build relationships and recommend them to Lowes customers.
The current markets will grow by expanding Lowes online presence on social media
sites and improving their mobile e-commerce options. E-commerce sales accounted for 2.0% of
their total sales, $53.42 billion, in 2013. In order to increase the e-commerce sales Lowes
utilizes a mobile app. Their app currently has a product locater, the MyLowes center, and a
shopping option. Lowes can improve their mobile app by adding creative promotions, free
shipping for larger products, and coupons in order to attract more people to buy online. The app
will also feature a way to connect with the in-store employees for help, advice, or questions. It
will also feature a way to connect customers with Lowes social media sites to see DIY videos,
helpful tips on home improvement, and in-store/online promotions.
Lowes will further expand its relationship with the professional market. This includes
contractors, landscapers, designers, and suppliers and wholesalers. Lowes uses its online

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resources to communicate with and attract this professional market. Lowes uses their online
website to attract small businesses run by women and minorities. They offer promotions and
online deals to boost the sales of both themselves and their suppliers. Lowes also connects with
contractors, landscapers, and designers via their mobile e-commerce app and their website.
Contractors, landscapers, and designers can pay a discounted fee to advertise in their stores, their
app, and their website.
Lowes app will also feature a section dedicated solely to this professional market, called
ProConnect. Professional contractors, landscapers, and designers can use this app to connect
with each other. They can also use it to purchase orders in bulk and receive special promotions
and discounts. They can create profiles and offer their services to Lowes customers, for a fee.
Customers can use this feature to review and choose professionals-for-hire. This both expands
Lowes mobile services as well as bringing in new customers.
Lowes will sponsor social media campaigns to appeal to the younger demographic and
help facilitate its online presence. Lowes use their Pinterest, Tumblr, and Twitter to ask
followers to build something unique on their own, while utilizing Lowes products, in order to
win prizes, promotions, and have it featured in the winners local store. This gives Lowes a
chance to interact with their creative customer base. By doing this Lowes shows appreciation
and loyalty to the DIY customer.
Target Markets
The majority of Lowes customer base consists of 2 major categories: professionals and
non-professionals. The non-professional customers can be broken down further into do-ityourself (DIY) and do-it-for-me (DIFM). The non-professional customer base is made up of
homeowners and renters. These customers are adults between the ages of 30-45. Lowes target

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audience has always been focused on women in particular. However, in order to expand their
target audience Lowes needs to focus on males between the ages of 30-35. In order to attract
customers via social media, Lowes also needs to focus on the younger generation, children ages
12-18, who already have begun using the Internet.
Lowes has been built on DIY customers and fierce loyalty from its female customers;
however, men tend to spend 35% more per month on home improvements than women. It is a
priority for Lowes to branch out in order to appeal to the male demographic. Lowes knows that
their female base is loyal. However, their male customers are more likely to wander. Lowes
metric of customer loyalty and satisfaction for females is triple the overall average:

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Again, men tend to spend more money than women on average when it comes to home
improvement shopping. More men shop at Home Depot because of its many retail chains. While
Lowes has far less chains than Home Depot, women still tend to choose to go out of their way to
shop at Lowes. Expanding their chains would certainly expand their customer base. Not only
this but also expanding their products and brands that appeal to men will help increase their male
customer base.
These older target markets have young children whom use social media and the Internet
regularly. Most teenagers between the ages of 14-17 have a cell phone and are quite familiar with
apps. Attracting this younger generation with a creative and fun app will help build brand loyalty,
making them more likely to shop at Lowes when they are older. Not only this but it will
encourage their parents to become patrons of Lowes as well.
Lowes main source of business comes from the DIY customer base. Lowes gives DIY
customers all the proper tools they need in order to make their home improvements a success.
Lowes offers in-store and online consultations with trained employees. Lowes online help can
be accessed via their helpful online tool, MyLowes, or any of their social media sites. Their

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Tumblr and Pinterest accounts display do-it-yourself video tutorials and helpful tips. Their
Twitter account displays customer questions and replies from trained employees. Lowes also
offers in-store kiosks, which connects do-it-for-me customers with professionals.
Lowes professional customer base, such as contractors and landscapers, are able to
purchase materials in bulk for projects and connect to potential customers. Lowes partnered with
Porch.com in order to help connect professionals with Lowes customers. Not only do these
professionals find clients, they also find all the tools and materials they need for their projects.
Lowes target markets are anyone who owns or rents a home. Their female-friendly
environment allows women to take the initiative to work on their own homes without paying
someone else. Not only this, but it also allows women to seek council from educated employees
on where to begin or how to proceed with their projects. If the project becomes too big, then
Lowes can also assist them with finding a professional for a reasonable price.
Points of Difference
In order to stand apart from its competition, Lowes must build upon and employ its
greatest and most unique assets to create the best customer experience. Lowes points of
difference include its mobile application, guaranteed low prices, social media utilization, and
softer approach to home improvement.
Mobile Application
Lowes mobile application offers many features to its users, including access to coupons
and mobile shopping. Once users download and open the app, it uses geotracking technology to
determine his or her nearest store, or the user can manually choose it. After a store has been set, a
majority of the app is tailored to it. App users are provided with store information, as well as an
in-store map. One of the apps most unique features is the Quick List. Although competitor
apps, such as Home Depots, allows users to create a mobile shopping list to prepare them for
their next in-store visit, Lowes is a bit more sophisticated. For each item that is added to the

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Quick List, users are given the exact location of the item in their chosen store, and it is also
pinpointed on the in-store map, providing customers with the utmost convenience.
Although Lowes mobile application has an advantage over its competitors, there is still
room for improvement. For one, by using the same geotracking technology that determines the
users nearest store location, Lowes can provide them with occasional store-specific, or any
other kinds of deals that can only be accessed through the app, while at a physical Lowes
location. Other deals such as mobile app-only and store-specific could be offered, as well.
The idea of exclusivity and never knowing what kind of deal you may receive, could potentially
lead to more app downloads and physical/mobile sales. Males and females, ages 18-44, tend to
use their mobile devices to look for deals when shopping, with indexes between 128 and 172
(Simmons OneView). Plus, coupons are likely to draw people to stores that they do not usually
shop at (Simmons OneView). Geotracking technology can also be used to perform price checks
on items at nearby retailers. This will prove extremely useful when shopping in-store. Instead of
comparing prices online, the app could do the job for consumers, thus saving them time. If they
are able to find a lower price elsewhere, a Lowes sales associate can immediately price match,
or offer a lower price.
Guaranteed Low Prices
Just by viewing their Web site, it is evident Lowes makes it clear that they offer the best
quality products at the Lowest price. Lowes strives to offer consumers the Lowest price
possible, and they call these Everyday low prices. For one, if a customer finds a lower
everyday price on an identical item from one of Lowes competitors, they will beat the price by
10%. If said competitor is offering a discount, Lowes will match the discounted price
(Everyday Low Prices). Home Depot has a similar policy, but they do not make it as known as
Lowes does. Home Depot will also beat a competitors price by 10%, but they do not match
discounted prices, like Lowes does (The Home Depot Low Price Guarantee). Lowes also

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offers price protection, meaning that consumers who make a purchase online will receive the
lower of the online or in-store price. Plus, Lowes has also made numerous price cuts on their
already everyday low prices, thus making them the best choice when it comes to quality and
price (Everyday Low Prices).
Social Media Utilization
Lowes is currently running a brilliant social media campaign that does not involve
merely posting their products across their social media platforms. This campaign easily
demonstrates that Lowes has mastered Vine, the 6-second video sharing app, better than many
other companies in the market. Instead of trimming current advertisements to fit Vines 6-second
format, they have created brand new content in a series called Lowes Fix in Six. Each vine
has a quirky animation, but provides viewers with a useful tip usually something they never
would have thought of on their own (Rodriguez). The response to the Fix in Six campaign has
been incredible. In fact, on NPR, a reporter did a story on how brands and advertisers should go
about reaching millennials. When listener, Caroline Sharp, was asked about advertising
campaigns she likes, she said:
Lowe's [has] a series of vines called [Lowes Fix in Six], that [are] stop-motion
animations of watching tools perform tasks in ways you wouldn't necessarily think that
they could do. My favorite one that I can think of is: if you have a stripped screw, you
can put a rubber band on top of the screw, stick the screwdriver through the rubber band,
and it gets the screw out! I've used that because of Lowe's vine (Sanders).
More recently, Lowes has also started a series of vines, titled, How-To Tap Thru.
Instead of just offering a quick tip, the How-To Tap Thru vines break down the steps of various
home improvement projects. Viewers are intended to first watch the vine in its entirety, then
watch again. The second time, though, they are to tap the vine, or pause, at each step, in order to
learn how to complete the project. Depending on the success of these two campaigns, Lowes

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plans to work towards inspiring consumers via Instagram, as well. In the next campaign, Lowes
will use Instagrams Hyperlapse feature, which speeds up videos, to display home improvement
projects from start to finish (i.e. a decorated home or a photo board) (Rodriguez).
Positioning
Positioning Statement: For males ages 30-45, Lowes is the top retailer for all home
improvement and appliance needs, in terms of selection, price, service, and quality.
The home improvement industry is dominated by two giants Lowes and Home Depot
with Home Depot taking the lead. When asked about companies in this industry, one of these two
businesses tend to be consumers top-of-mind company. Although Lowes has vast brand
awareness, it is seemingly comfortable with sharing the market with Home Depot customers, and
thus lacks brand loyalty. Lowes must be positioned as the #1 choice when it comes to home
improvement goods, in terms of selection, price, service, and quality. In order to demonstrate this
message to Lowes primary and secondary target markets, a mixture of promotional tools will be
utilized.
Product and Price
The restructuring of the MyLowes app will make improving your home is easier for our
customers, and in hand boost e-commerce sales and appeal to a younger audience. Users can
manage current projects, find in store and online deals by location, and make orders that they can
then pick up in their local store. The import focus is geared towards shopping with a mobile
device, and to deliver that experience to customer in a way that makes things easier.
An easily accessible app let users shop how they want to shop, when they want to shop. It
gives them the ability to browse the entire product catalog, or find out whats in stock at their
local Lowes from any hand held device. Once products are located and added to the cart,

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customers will have the option to pick up purchases in store, or have them delivered to their
door, and receive updates as the status of their order progresses.

Keeping with the current feature, users will be able to quickly find what they need upon
entering the store. We will continue to map the aisle location of any in-stock item with the
product locator, and instantly add items to your list. Building upon that, there will be a feature to
signal for in-store help. This will give customers a way to connect with the in-store employees
for help, advice, or questions.

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Once in store, users will also receive updates on active specials. The current app allows
customers to keep a shopping list of items as a quick reference for what they need. You can add
products from the app while browsing, but a new feature will also allow customers to scan items
directly into their wish list, which will also track previous purchases through a special member
ID scanned at check out. You will also be able to leave yourself notes and product rating to
reference in the future.

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Pro-connect is a feature designed especially to connect the professional market with the
non-professional and DIY markets. Professional contractors, landscapers, and designers can use
this app to connect with each other, and non-professional customers looking to hire. For a small
fee, professional users will be able to create profiles and offer their services to Lowes nonprofessional customers. Non-professional customers can post tasks which will alert
professionals-for-hire in that specialty. It will then allow these customers to leave reviews on
professionals profiles, and photos of completed work, boosting the professional customers
business and promoting Lowes e-commerce connection and brand loyalty. Lowes will work
more closely with the professional market in order to build relationships, review services, and
recommend them to Lowes customers. These professionals will then be able to use the app to
purchase orders in bulk and receive special promotions and discounts, expanding Lowes mobile
services as well as bringing in new customers.

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To incorporate a social media aspect to the app, there will be links to Lowes social media
sites where customers can view and post DIY videos, helpful tips on home improvement, and instore/online promotions. In store, or at home, users can scan an item, and the app will link them
to instructional videos for assembly, as well as helpful hints, creative ideas, and pictures of
projects posted by other customers. Users will be able to get the inside scoop on products and
how others use them to accomplish their DIY goals. They can then share a photo of their product
with other users and upload their own helpful hints.
The improved MyLowes app will also feature a MyLowes Membership. Using the
Lowes home logo to measure previous purchases and rewards points, customers can track their
progress and attain various status levels. Reaching a new level will bring you to a new status.
With each status upgrade, users will unlock new features including free shipping on various
products, and additional coupons or redeemable store credit. Rewards points can be earned
through product purchasing and in app activities such as product review, and pro-connect
recommendations. Once users reach a level, they will need to maintain their status within a given
time period encouraging continued use and brand loyalty.

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Heightened security will be a priority for the MyLowes experience. With concerns
increasing around the potential security dangers for e-commerce users, Lowes will use
innovative technology to help users protect themselves from potential malware and viruses.
In addition to streamlining the customer in store and at home experience, the app will
serve as a form of data collection for the company. Pinterest links Lowes intends to be more
involved in social media campaigns in order to attract potential customers on a larger scale.
Lowes will use its online resources to communicate with and attract this professional market,
including contractors, landscapers, designers, and suppliers and wholesalers to Lowes stores,
and will further expand its relationship with the professional market, and a younger generation of
non-professional customers.
Promotion and Placement
Our promotional and placement goals work collectively together. Our promotional goals
are to not have customers leave their online cart abandoned, have sponsored social media

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campaigns, create a community feeling with our customers, and utilize search engine promotion
through the internet and mobile and tablet applications. With our slogan, Building Towards a
Better Future and a Better You, we want our customers to believe that Lowes will be there for
them in the future with every household decision. We want all the demographics to know that
Lowes will be there building, helping, and creating through every milestone in their lives such
as dorm room shopping, to new apartments, to first house, to their first childs room. Our overall
promotional goal is for customers to trust and feel that we can help them in their future choices.
Lowes is currently positioned with a significant following on their social media sites.
Their social media numbers are overall greater than Home Depots as stated in Phase 1 - Industry
Analysis. However, since approximately 9 million more people visit Home Depots site than
Lowes, this signifies that Lowes is not employing the full advantage of their social media
following. Every company can use repositioning even if the company is striving. In business,
peoples want and needs are always evolving and companies must keep up and keep coming up
with more innovative ways to maintain their current customers and gain additional ones. Lowes
current position lacks attraction for people to visit their page. The company must attract people
by posting links and allowing people to visit their page through their immense social media
following.
Our first promotional goal is to construct a creative, easily navigated site to use. As a
result of having a simple site to navigate, we are trying to accomplish having customers not leave
their cart open on our website. It is easy for a consumer to pick all the things they want and add
to their online cart, but in the end not be able to or want to actually pay for it. Consumers with
online shopping can get the satisfaction on finding want they want online, but will leave their
cart open because they know they will not receive the product instantaneous. Other reasons why

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consumers abandon their cart is because they know the products will be there when they return
or they get easily distracted when they are on the internet and go on to different sites and look for
other deals. Simple graphics and easy to use factors are important for most consumers. A
consumer can feel overwhelmed by loud graphics. The simpler the graphics are in a website, can
make it easier for users to navigate and focus on the products more than the website itself. If the
website is not easy to use, or if a consumer has to click multiple times to get to a product, they
will leave the website because they get too frustrated. The easier a website is to maneuver, the
easier it takes to make a purchase for consumers, which is essentially the main objective for
companies.
Our goal is for our customers to trust in our promotions and believe that we have the best
deals and quality products. For consumers, the largest factors for a website are security, service,
and credibility. When consumers think of big brands and companies with household names, they
automatically think that the website is secure and have excellent service and tend to trust the
security and service done online.
Secondly, another promotional goal we hope to achieve is having sponsored social media
campaigns. We want to work with community based businesses for our customers to get a sense
of a community feel and belongingness. Working and partnering with these community based
businesses will give customers more security to our brand that they can trust. For example,
Applebees has done a great job incorporating the neighborhood concept. New Applebees
restaurants feature community themed concepts with photo wall murals of surrounding high
schools and local schools. Today, there are almost 2,000 Applebees locations in North America
and counting (Applebees.com). Concluding with the neighborhood and community concepts,

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having local businesses partner with Lowes will increase sales and give customers a sense of
trust and part of the community they live in.
Along with social media sponsoring, our purpose is to have sponsored Ads through the
three main social media sites such as Instagram, Twitter, and Facebook. See chart below. Also
discussed in Phase 1, Industry Analysis, Lowes plans to incorporate other social media sites like
Tumblr, Vine, and Snapchat. The internet and social media has become part of everyday society
and a trend. According to the Internet World Stats, there are over 310 million internet users
which are 87% of the population (internetworldstats.com). We must incorporate social media
advertisements into our positioning as a company to hit every demographic and take advantage
of the amount of internet users there are in the United States.
Next, in search engines, we want to promote Lowes as the first hardware store to appear.
If people are searching anything regarding fixing up their house, to paint colors, to outdoor
products, or seasonal products, we want Lowes to appear. With 87% of the U.S population on
the internet, it is a smart promotional placement and marketing strategy.
Lastly, along with promoting advertisements on social media, we want to create our own
application for children. We want to hit the demographic of children because the rise of
adolescents having cell phones is rapidly growing. Twice as many children have cell phones now
as in 2004. 85% of most teens aged 14 to 17 have cell phones and 69% of 11-14 year olds and
31% of kids aged 8-10, according to a 2010 survey by the Kaiser Family Foundation
(webmd.com). Creating our own app not only can target children from 8-17, but can also drive
income for Lowes having other brands advertise on the app.

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Lowe's Targeted Social Media Platforms and Current Following (As of March 2015)

200,000 73,000

Facebook
Twitter
Instagram

3,100,000

One specific demographic we are gearing towards is mid 30 to early 40 females. We

believe that if we gear toward this demographic it can open new doors for women and moms to
do interior design and cater to the needs of their children. It is important to incorporate women
into hardware stores because they make most of the household decisions. A recent report shows
that in the United States, household spending is controlled by women (digitalsherpa.com).
Females in their mid-thirties to early forties typically have a family. This means that their
decisions influence a following of people, like their husbands and depending on the amount of
children they have. Women on average do the shopping when their children want to redo their
rooms, go college dorm shopping, or wanting new appliances for the house. Like hardware
stores, technology is often something that is thought of as a guy thing, but women are actually
buying more electronics than men. Last year, the consumer electronics industry raked in
approximately $96 billion and $55 billion of this was thanks to female consumers. When women
are not the actual buyer, they still play a major role in influencing the buying decision

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(digitalsherpa.com). See charts below for women spending and power, and the purchases women
account for (digitalsherpa.com).

% of Women Making Decisions

90
80
70
60
50
40
30
20
10
0

Sales

What Women Buy

Purchases by Women account for..
New Homes
91

93

PCs
Vacations
Food

92

66

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"LOW Competitors | Lowe's Companies, Inc. Common S Stock - Yahoo! Finance." LOW
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