Lowe's Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of Lowe's analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Lowe's marketing mix, help the brand succeed in the market. Let us start the Lowe's Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Quick Glance:
Lowe's Product Strategy:
The product strategy and mix in Lowe's marketing strategy can be explained as follows:
Lowe's is one of the leading American retailers. Lowe's offers thousands of products in its marketing mix in home improvement range on the shelf. If there is any specific need, one can visit the online platform for the same and custom order. Various departments include cleaning supplies, hardware, animal and pet care, plumbing, paints, entertainment, home and commercial appliances.
Lowe's also offers automotive and kitchen improvement products. Bathroom ware and other all sorts of improvement products are present on the shelf as well as online marketplace.
Image: Wikimedia
Lowe's Price/Pricing Strategy:
Below is the pricing strategy in Lowe's marketing strategy:
Lowe's offers the lowest prices in the industry without hampering the quality of products. If a product with lower price is found, one can bring it her and get add 10% discount.
Lowe's offers a special credit card which allows 5% discount on everyday purchases and makes payment easy. Thus they usually price their product in order to eat away competitors market share. The company has an annual revenue of more than $70 billion.
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Lowe's Place & Distribution Strategy:
Following is the distribution strategy in the Lowe's marketing mix:
Lowe's is organized into divisions in US, regions, market and then individual stores. The chain has 1840 stores across Canada Mexico and USA. Lowe's had released plans to expand in Australia through 150 stores over the next five years. Today most of the stores are a part of big box variety some of which are still small. Lowe's has an efficient distribution network across the stores which help speedy service. One can get their product when they schedule or as early as next day. It is trying to shift from DIY customer base to DIFM customer base. This will help not only reach more people effectively but help the visibility increase ad make Lowe's the no.
1 choice for home improvement.
Lowe's Promotion & Advertising Strategy:
The promotional and advertising strategy in the Lowe's marketing strategy is as follows:
Lowe's believe in service they provide to people. They make sure that personalized experiences are created for the customers and strive hard for the same. Lowe's company has changed its tagline from “Lets build something together” to a slogan “Never stop Improving”. Lowe's have introduced and excellent innovation called myLowes which enables consumers access information and get advice 24/7 on home improvement needs. MyLowes will facilitate the evolution of a completely different customer experience. Such new changes will definitely help Lowe's gaining competitive advantage in the market. Lowe's has wide variety of radio and television commercials. Racing inspired commercials are often visible and played outside the competition. It has several radio sponsorships like Ney York Yankee which brans Lowe's as Lowes Booth.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Lowe's.
People:
Lowe's value their employees the most and treat them with utmost safety and care. Lowe's has 300,000 employees all over the stores. Typically, a Lowe's store can have 80 to 400 employees depending on the size and sales volume. Every employee adds to the profitability of the company. The value added directly or indirectly helps the company grow in the long run. Employees follow strong ethical conduct which makes the customer experience on of a kind.
Process:
It buys products from thousands of suppliers across the nation and offers to end users.AT the same time it gives them a code of conduct so that this reduces their checks for environmental friendliness. Consumers can come to stores ,pick the products they need. Lowe's then comes and installs the product or simply hands it over to third parties. Easy billing and payment system allows customers speedy checkout. As a part of their NGIS initiative, all service providers would undergo training in “Lowe's Way to provide same customer value.
Physical Evidence:
Lowe's gives a great customer experience al together form its stores. Initially, stores were small but slowly as the product portfolio increased they changed to big box design to retain the position against big market players like Home Depot. The newest facility of corporate office at Mooresville is a 5 storey 400000 square foot building along with two newer 7 storey buildings. The office at Wikesboro is smoke free campus and still some corporate functions are operated from there. It also has its physical evidence through websites, brochures, billboard, paperwork. Financial reports and signages also provide visibility to Lowe's. Hence, this concludes the marketing strategy and marketing mix of Lowe's retail brand.
About Lowe's:
Lowe's is one of the largest home improvement retailer dealing in all kinds of furniture items. It was founded in 1946 in Mooresville, North Carolina. The company went public in 1961 and from 1982 it started to cater a new market segment ie Do it Yourself customers.
Its vision is to provide customer valued solutions at best possible prices to make Lowe's the first choice for home improvement category. Lowe's constantly understands the importance of innovation to connect with the end users.
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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