Home Depot Marketing Strategy & Marketing Mix (4Ps)
Published by MBA Skool Team, Last Updated: August 27, 2021
Marketing Strategy of Home Depot analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Home Depot marketing mix, help the brand succeed in the market.
Home Depot marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Home Depot Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Home Depot marketing strategy can be explained as follows:
Home Depot, officially known as The Home Depot, is one of the leading retailers in the world. The following are the product categories and products in each category offered by The Home Depot in its marketing mix strategy. Appliances like Refrigerators, Small Appliances, Washers & Dryers, Heating Cooling & Air Quality, Cooking Appliances. It also has Bath & Faucets, Blinds & Décor, Building Materials, Doors & Windows and Electrical appliances. Home Depot also provides Kitchen equipment like Cabinets & Cabinet Hardware, Kitchen Sinks, Kitchen Faucets, Small Appliances. Products related to lawn, garden, lighting, outdoor, paints etc. are also given by Home Depot. Special emphasis is given on the quality of its products. Most of its products are Private labels. It also sells products from other major brands. The company has regularly acquired other companies to further strengthened its position.
Home Depot Price/Pricing Strategy:
Below is the pricing strategy in Home Depot marketing strategy:
The Home Depot follows Everyday Low Pricing (EDLP) strategy.
This strategy promises its consumers low price without the need to wait for a sale price or comparison shopping. The company offers lowest price possible to attract more customers. Its main emphasis is quality service and expert advice regarding home improvements in order to order to attract more customers and retain the existing ones. This gives an overview of the marketing mix pricing strategy of Home depot.
Following is the distribution strategy in the Home Depot marketing mix:
The Home Depot offers its products and services through various channels like warehouse style stores, online store and its mobile app. Majority of its sales come from the Warehouse Style Stores. Home Depot has 2000 stores in North and South America and also United Kingdom. Through the online store, its consumers can view and order its products for delivery or self-pickup. The mobile app allows the consumers to locate stores and order online.
Through its online presence, The Home Depot is maximizing its reach to the target segment.
Home Depot Promotion & Advertising Strategy:
The promotional and advertising strategy in the Home Depot marketing strategy is as follows:
Home Depot’s promotional activities includes advertising via TV Commercials, online ads, personal selling by store personnel, sales promotions, public relations and direct selling. Advertising forms the prominent role in the promotion of its products and services. Home Depot also indulges in online marketing and print media. Personal selling also plays an important role in the stores where the Store Personnel try selling its products to the consumers. Sales promotions are done through discounts and special offers. Home Depot also indulges in Public Relations through CSR activities and sponsorships. Professionals and large contractors are targeted through direct selling.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Home Depot.
Home Depot uses the latest technology to serve its customers through streamlined processes and services. Home Depot emphasizes on helping the customers and has a strong customer service. In the backend, Home Depot has its supply chain processes in place as it has extremely well managed procurement, warehousing, distribution etc. processes.
Home Depot has more than 2000 stores spread across the Americas and each store is uniquely designed to maximize customer friendliness and make it easy to display all products. Each store has focus on product placement, alleys, trolleys for customers etc. Each store is uniquely designed to offer different home improvement products to customers. The store has been designed to categorize products by home tools, office supplies, indoor-outdoor products etc.
For a service brand like Home Depot, people are the most critical aspect of their business. More than 500,000 people are employed with the company worldwide. There are a lot of experts and employs from store managers to staff to supply chain management professionals etc who manage the stores efficiently. Hence, this completes the Home Depot marketing strategy & mix.
About The Home Depot:
The Home Depot is a home improvement supplies superstore that sells tools, construction products and services. It was founded in the year 1978. Home Depot has stores across North America, South America and The United Kingdom.
Its revenue are in the range of $80+ Billion. Home Depot's major competitors are Hutting Building Products, Jewett-Cameron Trading Company, Lowe’s Company.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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