Home Depot’s marketing mix (4Ps) is a changing set of strategies for the company’s products, place/distribution, promotion, and prices, in response to changes in the home improvement retail market. The marketing mix or 4Ps reflects business efforts to ensure successful marketing implementation. Home Depot’s marketing mix is the company’s approach to keep the biggest market share while competing against other firms, especially Lowe’s. As the top player in the U.S. home improvement retail industry, Home Depot uses its marketing mix to sustain this leading position, while its biggest rival Lowe’s follows closely.
Home Depot’s marketing mix identifies the company’s strategies for achieving its market positioning goals while ensuring competitiveness against other home improvement retailers.
Home Depot’s Products (Product Mix)
The company’s main product is its retail service. This part of the marketing mix is also called the product mix and pertains to organizational outputs offered to the target customers. Home Depot’s products are as follows:
- Retail service with expert advice
- Professional and contractor services
- Home improvement products from third parties
- Home Depot house brands
As a home improvement retail company, Home Depot’s main product is its retail service, which includes advice from field experts like carpenters and plumbers at the company’s stores. In relation, the company’s products include services for home improvement professionals and contractors. This part of the marketing mix highlights service quality, as emphasized in Home Depot’s organizational culture. On the other hand, the vast majority of goods at the firm’s stores are from third parties, such as equipment manufacturers. The firm is an exclusive seller of some of these brands. Also, Home Depot has its own company-owned or house brands, as follows:
- Husky – tools
- Workforce – tools and related materials
- Glacier Bay – fixtures
- Commercial Electric
- Home Decorators Collection
- Hampton Bay – fixtures and furniture
- Kilz – paints
Place/Distribution in Home Depot’s Marketing Mix
The company’s main places for sales are its stores. This part of the marketing mix shows Home Depot’s strategy for distributing its products. Home Depot’s place or distribution strategy involves the following, arranged according to significance:
- Warehouse-style stores
- Online store
- Mobile apps
Home Depot’s warehouse-style stores are where the vast majority of sales transactions occur. However, the company also generates revenues through its online store, where customers can place their orders for delivery or for store pick-up. Home Depot also offers mobile apps that customers can use to locate stores and to place online orders. This part of Home Depot’s marketing mix shows that the company maximizes its reach to the target market by integrating online technology.
Home Depot’s Promotion (Promotional Mix)
Home Depot uses all types of tactics for its marketing communications strategy to promote its business and products. This part of the marketing mix refers to the communication activities used to engage the target consumers. Home Depot’s promotion activities include the following tactics:
- Advertising (TV commercials)
- Personal selling (store personnel)
- Sales promotions
- Public relations
- Direct selling (contractors)
TV commercials are the most prominent promotion tactic in this case, although the company also uses ads in other media, such as print and online media. In addition, Home Depot’s store personnel are major contributors to the business by promoting products and services to customers. Also, the company uses sales promotions in the form of special deals. Home Depot’s public relations include the activities of The Home Depot Foundation and other corporate social responsibility programs, as well as its sponsorship of athletic teams. The firm also engages in a form of direct selling that targets professionals and contractors. Thus, the promotion activities in Home Depot’s marketing mix are diverse and comprehensive.
Home Depot’s Prices and Pricing Strategy
Home Depot uses the Everyday Low Price (EDLP) pricing strategy. The company’s first stores advertised “Everyday Low Price” to attract customers. This pricing strategy is aligned to Home Depot’s generic strategy. The firm continues to offer the lowest prices possible, although its current emphasis is high quality service, including expert advice, to attract more customers to Home Depot stores.
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