In this article, let’s todayshomebuyersguide Analyze the marketing strategy of Home Depot. Specifically, Home Depot’s Marketing Mix strategy involves the 4Ps (Product, Price, Place, and Promotion).
1. Overview of The marketing strategy of Home Depot
Home Depot is the largest home improvement retailer in the United States. This brand provides tools, construction products, equipment, and home repair services. The company is headquartered in Cobb County, Georgia, incorporated with an Atlanta mailing address.
Home Depot operates multiple Big-box stores across the United States. Includes the District of Columbia, Guam, Puerto Rico, and the Virgin Islands; Canada; and all 32 states of Mexico and Mexico City. The Home Depot Pro is also owned by The Home Depot, with 70 distribution centers across the United States.
2. Product Strategy of The Home Depot
Home Depot Pro, headquartered in Jacksonville, Florida, is one of the largest wholesale distributors. It markets maintenance, repair, and operations (MRO) products directly to non-industrial businesses in the United States. Home Depot Pro distributes a wide range of products such as cleaning supplies, plumbing supplies, and security supplies.
A subsidiary of this Home Depot was founded in 1978, formerly Wilmar Industries, founded by William S. Green. In 2000, Wilmar acquired Barnett and together founded Interline Brands. Gradually Interline Brands diversified their customer base through the acquisition of Sexauer, Trayco, Barnett, U.S. Lock, Learn Gas Products, Maintenance USA, and Hardware Express, and their distributors offer AmSan, CleanSource, and JanPak toiletries.
In 2015, Interline Brands merged its five healthcare brands into a unified brand called SupplyWorks.
On July 22, 2015, Home Depot acquired Interline Brands for $1.6 billion. Interline Brands was renamed in 2018 as The Home Depot Pro. With the exception of the US Lock brand, previous Interline Brands trademarks are to be renamed:
- Wilmar Industries: renamed The Home Depot Pro Multifamily
- Barnett: renamed The Home Depot Pro Specialty Trades
- SupplyWorks: renamed The Home Depot Pro Institutions
Home Depot has its own brands (Private Label/House Brands) such as:
- Hampton Bay
- Glacier Bay
- Commercial Electric
- Home Decorators Collection
Along with that, Home Depot exclusively owns a number of major brands:
- Chem-Dry (carpet and chair cleaning service)
- Behr (paint)
- Homelite (outdoors and power tools)
- Martha Stewart Living Omnimedia (interior)
- Ryobi and Ridgid (machine tool)
- American Woodmark (wooden cabinet)
- Thomasville Furniture Industries (wooden cabinets)
So you have grasped the main information about The Home Depot’s product strategy in The marketing strategy of Home Depot.
3. The Home Depot’s Pricing Strategy
Home Depot’s main competitor is the Lowe’s chain. Both store chains compete fiercely with each other on price and high-margin goods such as tools, building materials, household appliances, and other products are very similar in price. Both brands offer many coupon codes for Lowes and Home Depot to attract customers.
Because of such stiff competition, when all costs are averaged, the price of shopping at Lowe’s versus Home Depot is essentially the same. Lowe’s and Home Depot stores both implement competitive pricing strategies.
4. The Home Depot’s Place Strategy
Home Depot stores average 105,000 square feet (9,755 square feet). Additionally, they were organized like a Warehouse store, stocking a large number of supplies. Home Depot’s two largest stores are located in Vauxhall, New Jersey, which measures 217,000 square feet. Additionally, Anaheim Hills, California, which measures 204,000 square feet. Finally, The company identity color is bright orange (PMS 165, CMYK 60M100Y, HEX FF6600) on staff signs, equipment, and aprons.
Contractors make up 5% of Home Depot’s customers, but they account for 45% of the company’s $132 billion in annual revenue. To address these contractor customers, the company is building new distribution centers.
By restructuring the supply chain and distribution channel, Home Depot can now serve nearly 95% of the US population. Along with a commitment to deliver within two days. The company’s goal is to reach 90% of the population with delivery times of less than a day. This is also an important factor for expert customers who spend more money than customers who buy and assemble (DIY).
In some cases, The marketing strategy of Home Depot also helps customers save time and effort by ordering online and receiving goods at an outside store. The company also provides car delivery services to more than 40% of the population.
5. Marketing Strategy of The Home Depot
The marketing strategy of The Home Depot with the mascot (Mascot) is Homer D Poe since 1981. The Homer Fund, a charity named after the mascot, has been part of the Home Depot culture ever since. Also, Home Depot’s mascot appears in signs, advertisements, awards, and even life-size costumes.
The Home Depot’s Marketing Strategy announced a new Slogan “How Doers Get More Done” in December 2019. Accordingly, replacing the previous Slogan “More saving, More doing” which was introduced in 2009.
6. Summary about the marketing strategy of Home Depot
The simple goal of The marketing strategy of Home Depot is to ensure stock is always available. The recent expansion of Home Depot’s home improvement product portfolio is one of the company’s efforts towards this goal, giving customers more choices when making purchases.
In addition, customers ordering online often find that they are actually in need of something else when they go to an outside store. Recognizing this, Home Depot displays in storefronts items that are able to elicit and anticipate customer needs. Additionally, they offer many promotions for your customer like Home Depot $50 off $250 coupon to attract customers.
So you have grasped the main information about The marketing strategy of Home Depot. Todayshomebuyersguide hopes you have grasped important information about The marketing strategy of Home Depot, specifically The Home Depot’s Marketing Mix Strategy.
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