This was a final project for IMC 610 - Introduction to IMC. This Integrated Marketing Communications plan spanned 9 weeks and was the final execution for the client, The Home Depot.
Most Impressive Construction Leaders in Tech, Making Waves in the Industry, 2...
Home Depot IMC Campaign
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The Home Depot is a home improvement store that provides
their customers with a do-it-yourself mentality with low
prices and knowledgeable customer service. They are a
company that likes to give back to the community through
The Home Depot Foundation. Since The Home Depot’s
beginning, just short of 40 years ago, they have grown to be a
$55 billion corporation that prides themselves on being a value driven company.
The Home Depot has a well-founded brand image along with solid core values, which
provide a foundation for a successful company. This integrated marketing communications, or
IMC, campaign will refine The Home Depot’s current strategies while keeping their business
foundation untouched. This campaign will expand on their mobile strategy, while focusing future
marketing efforts towards a new target market.
Market research has shown that The Home Depot has areas in their current marketing
strategy with room for improvement. This IMC plan will align The Home Depot’s current
marketing efforts with new objectives to find potential customers and eventually increase
revenue. The tactics outlined in this plan will
communicate, effectively and efficiently, to
customers how The Home Depot has developed
their mobile strategy for an easier shopping
experience.
This campaign will communicate to The Home
Depot communities that they are a one-stop-shop for all home improvement needs at a price they
want.
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The Home Depot Background Information…4
History…………………………………….........4
Core Values & Mission Statement…………..…5
Financial………………………………………..6
Products & Services……………………………7
Pricing………………………………………….7
Current Marketing Communication Strategy…..8
Competitors…………………………………….9
Data Breach…………………………………...10
Target Audience……………………………...12
Current Target Market………………………...12
Demographics………………………………....13
Psychographics………………………………..14
Potential Target Market……………………….14
SWOT Analysis………………………………15
Strengths………………………………………15
Weaknesses……………………………………15
Opportunities………………………………….16
Threats………………………………………...17
Campaign Objectives and Strategies……….18
First Product Description……………………..18
Second Product Description…………………..19
Creative Strategy…………………………….21
Statement……………………………………...21
Creative Brief…………………………………21
Creative Execution……………………………22
Media Plan…………………………………...23
Media Objectives……………………………..23
Media Strategies……………………………...23
Media Tactics………………………………...23
Media Budget………………………………...26
Flow Chart…………………………………....27
Public Relations Plan……………………….28
PR Objectives………………………………...28
PR Strategies…………………………………28
PR Tactics……………………………………29
Direct Marketing Plan……………………...32
Direct Marketing Objectives…………………32
Direct Marketing Tactics……………………..32
Sales Promotion Plan……………………….35
Sales Promotion Objectives………………….35
Sales Promotion Tactics……………………..35
Measurement and Evaluation……………..38
Conclusion………………………………….40
References………………………………….42
Photos and Graphics……………………....44
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History
Who thought that a vision of a one-stop shop for the do-it-
yourselfer in 1978 would be ranked 33rd on the Fortune 500
list in 2014? Bernie Marcus and Arthur Blank came up with
the idea of a store where do-it-yourselfers could shop and get
amazing customer service. They wanted a store that employees would be knowledgeable about
everything from laying tile or changing a valve to handling a power tool. Marcus and Blank
found Investment Banker, Ken Langone and Merchandising Guru, Pat Farrah, to open two Home
Depot stores on June 22, 1979 in Atlanta, Georgia (Home Depot, 2013, Our History). The store
openings were in Atlanta even though Home Depot was incorporated in Delaware a little over
one year before store opening (Home Depot, 2013, FAQ). According to The Home Depot (2013),
“In 1981, The Home Depot went public on NASDAQ and moved to the New York Stock
Exchange in 1984” (A Story of Growth).
The Home Depot went international in 1994 with the first store opening in Canada. From
there, they opened in Mexico in 2001 and China in 2006 (Home Depot, 2013, A Story of
Growth). According to CNBC in the article Why big American businesses fail in China (2013),
“After six years of struggle, Home Depot shut its seven remaining stores and fired 850 workers
in China” (para. 13). Even though The Home Depot failed in China, it succeeded in Canada and
Mexico. Today there are 180 stores in 10 Canadian provinces and 107 stores in Mexico (Home
Depot, 2013, The Home Depot International Operations). According to a press release from The
Home Depot (2014, August 21), “The Home Depot, the world's largest home improvement
retailer, today announced that Craig Menear, currently president, U.S. retail, has been named
CEO and president, effective November 1, 2014, and has been elected to the company's board of
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directors, effectively immediately. Current chairman and CEO Frank Blake will remain chairman”
(para. 1).
Core Values & Mission Statement
The Home Depot’s mission statement is, “The Home Depot is in the home improvement
business and our goal is to provide the highest level of service, the broadest selection of products
and the most competitive prices” (Home Depot, 2013, FAQ). They are a company that is values-
driven and have eight core values:
1.Taking care of our people
2.Giving back to our communities
3.Doing the right thing
4.Excellent customer service
5.Creating shareholder value
6.Building strong relationships
7.Entrepreneurial spirit
8.Respect for all people
The Home Depot employees demonstrate these eight core values daily. The Home Depot
encourages employees to speak up and take risks in order for them to grow. Team Depot is an
associate-led volunteer program as a part of The Home Depot Foundation, which donates
millions of hours, tools and supplies to give back to communities each year. Employees exercise
good judgment by “doing the right thing.” Each employee has the knowledge to be able to give
customers advice and assistance in merchandise. Through their outstanding customer service and
respect for people, employees are able to build long-lasting relationships with customers (Home
Depot, 2013, Our Company).
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Financial
There is no doubt that the reason The Home Depot does so well financially is due to their
employees and values. The Home Depot’s 2013 Annual Report (2014, Feb. 2) disclosed all
amounts in millions:
• Comprehensive Income – $5,034 (p. 32)
• Stockholders’ Equity – $12,522 (p. 33)
• Common Stock –1,761 shares at $88 per share (p. 33)
• Balance Sheet – $40,518 (p. 30)
• Net Sales – $78,812 (p. 31)
• Net Earnings – $5,385 (p.31)
• As of Friday, August 29, 2014, Home Depot’s Stock is up 1.07% at $93.50, according to
the New York Stock Exchange (Reuters, 2014).
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Products & Services
The Home Depot offers a wide variety of products and services. There are more than 2,200
locations with an inventory that consists up to 40,000 different kinds of building materials, home
improvement supplies, appliances and lawn and garden products; if you can’t find what you are
looking for in the store or online, there are 250,000 products that can be special ordered (Home
Depot, 2013, Our Company). One of the core values is, excellent customer service, this is not
limited to how employees interact with customers, but the services they offer. The company was
built as a store for the do-it-yourselfer, but some customers would rather have a professional do
it for them, which is why one service offered is Home Services. The Home Depot has pre-
screened independent contractors that they work with to offer services from a simple fix to a
brand new roof or floor. This store is not just for the do-it-yourselfer, but professional
contractors also have special services offered to them. For the customers that want to learn how
to do it themselves, Home Depot has how-to clinics every Saturday and Sunday that people can
register for on the website or in-store. Along with the how-to clinics, they offer kids’ workshops,
where children and their parents can come and learn how to build a birdhouse, their first toolbox,
and many more (Home Depot, 2013, Our Company).
Pricing
The Home Depot services are just one reason why customers choose them over other
hardware stores. They have a low price guarantee to beat advertised specials. According to Home
Depot’s website (2013), “If you find a current lower price on an identical, in-stock item from any
local retailer, we will match the price and beat it by 10%. Excludes special orders, bid pricing,
volume discounts, open-box merchandise, labor and installation, sales tax, rebate and free offers,
typographical errors and online purchases.”
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Current Marketing Communication Strategy
Their marketing communication strategies are the best ways for them to keep in touch with
customers. The Home Depot is active on Facebook, Twitter, Pinterest, YouTube, and in the blog
community with The Apron Blog. With their company being as big as it is, there were thoughts
about adding a Social Media position in the Corporate office, but CEO Frank Blake wanted to
use resources that they already had, current employees (Zmuda, 2011). According to an article
on AdAge written by Natalie Zmuda (2011, Sept. 19), “Initially, 25 associates were selected
from the Chicago, Atlanta and Orange County, Calif. markets, where Home Depot has regional
offices. In recent months, four associates from the Boston market were added. Mr. Shaw says
there are no immediate plans to further beef up the program, though it's quickly gained visibility
within the organization” (para. 5). Each store manager has to give up their employees that were
chosen for this position two days a week in order for them to keep in contact with headquarters
for logistics on social media posts. The employees are not allowed to do anything related to the
social media position while they are on the store’s clock (Zmuda, 2011). An article on Forbes
(2013, Aug. 21) wrote that Home Depot’s marketing strategies during the recession put them
above the rest (para. 5). Home Depot changed their commercials from large projects like roofs,
floors, fences, etc., to small projects like repainting a room. They came out with the dual primer-
paint around the same time and showed women on the commercials repainting rooms. This new
paint was frowned upon by contractors, but was attracting women (Forbes, 2013, para. 5).
The Home Depot refocused their social media, commercials, but was also ahead of the game
in another major factor for customers, mobile strategy. A blog post on the FunMobilitiy Blog
written by Ajmal Kohgadi (2014, Jan. 15) stated, “We have condensed Home Depot’s mobile
marketing approach into 6 guiding principles that they abide by” (Kohgadi, 2014, para. 3). These
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six principles are:
1. Home Depot always looks through the customer’s lens. They put the customer at the
center of all marketing (para. 4).
2. Home Depot has a mobile first mentality. Of the how-to research being done, over 30% is
done on a mobile device (para. 5).
3. Home Depot believes in right sized content. They make their content visually appealing
for customers on all platforms (para. 6).
4. Home Depot succeeds by engaging their customers with relevant communication. With
mobile first mentality, they can get instant feedback from customers (para. 7).
5. Home Depot doesn’t believe in dead ends. They put incentives at the end of videos or
articles for customers asked to watch or read something by a marketer (para. 8).
6. Home Depot continually tests and learns. They know they don’t have all the answers, but
they are continually experimenting (para. 9).
Along with mobile marketing strategy, The Home Depot has a program called the Home
Depot Affiliate Program. The Affiliate Program is a way for websites to earn commission on
sales it refers to homedepot.com (Home Depot, 2013). This program is a great way to reach out
to other websites that are trying to help customers the way Home Depot has done for so many
years.
Competitors
The Home Depot is continually improving their marketing communication strategies because
they have to compete with, not only, other large corporations across the nation and globe, but
smaller companies throughout the towns and cities that Home Depot is located. Yahoo! Finance
lists the Top 10 Home Improvement Retailers (2014, Aug. 29) as Home Depot’s major
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competitors. They are a mix of publicly and privately traded companies and are ranked as
follows:
• The Home Depot, Inc. (Public)
• Lowe’s Companies Inc. (Public)
• Wolseley plc (Public)
• CCA Global Partners, Inc. (Private)
• Menard, Inc. (Private)
• The Sherwin-Williams Company (Public)
• Stock Building Supply Holdings, Inc. (Public)
• 84 Lumber Company (Private)
• Ace Hardware Corporation (Private)
• Do it Best Corp. (Private)
Data Breach
In early September 2014, The Home Depot confirmed a data breach. They offered all customers
who shopped at The Home Depot in 2014 from April on; since the data breach affected everyone
who used a payment card from April to September, free identity protection services (The Home
Depot, 2014). There was a similar data breach at Target in December of 2013, which affected 40
million people, but The Home Depot’s affected 56 million. “Card-issuing banks J.P. Morgan
Chase and Capital One have announced that they will send out new credit cards to those
potentially impacted by the breach” (Hill, 2014, para. 2). From the time of the data breach, The
Home Depot did everything they could to assuage the fears of their customers. Along with
offering free identity protection services, they also made sure every customer knew that they
were working with banks to get new cards to the customers and keep an eye on their account for
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any abnormal activity. According to a Washington Post article written on October 6, “The home
improvement retailer’s stock is up more than 14 percent this year and more than 2 percent since
it confirmed a six-month breach of its payment system that affected some 53 million credit and
debit cards” (Halzack, 2014, para. 3).
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Current Target Market
The Home Depot is an international company that deals
with different segmentation variables including demographic
and psychographic characteristics. According to The Home
Depot 2013 Annual Report (2014, Feb. 2), they serve three
primary customer groups and they have different customer
service approaches to meet their needs (p. 8). There is the Do-It-Yourself (“DIY”) customer,
which typically includes homeowners who don’t want to pay for a contractor or do it as a hobby.
These customers are assisted by associates who can explain how to complete the job or give tips
and tricks to the customer. They also tend to be the customers who are offered the clinics and
workshops (Annual Report, p. 8). The second type is the Do-It-For-Me (“DIFM”) customer, who
purchase products and then hire a third party to complete the project. The Home Depot
employees will also offer installation to these customers. This is either done through the already
Home Depot vetted contractors or employees who know how to install a number of different
products (Annual Report, p.8). The last customer is the Professionals. These customers are
generally contractors, repairmen, or small business owners. They are offered different services
including delivery and will-call services. They get special treatment by The Home Depot by
having designated parking spaces close to the entrance, bulk pricing, and expanded credit
programs (Annual Report, p.8).
According to The Home Depot 2013 Annual Report (2014, Feb. 2), “We rolled out a new
initiative in fiscal 2013 called Project Simple to reduce unnecessary store reports, store-based
emails and meetings that kept store management from selling activities” (p. 8). One way that
they are supporting this initiative is by using mobile handheld devices to complete transactions
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from anywhere in the store so customers can pay for merchandise without standing in line at a
cash register (p. 8). Along with this mobile handheld device, they are offering a program called
Install to Go for their third-party installers to accept payment on their mobile devices (p.8).
Demographics
Between these three types of customers there is a varying of ages. The Home Depot wants to
make every age feel welcome, this is demonstrated in the kids workshops and clinics for people
to come and learn. The top end of the age demographic would be closer to retirement age when
people are more likely to not want to do-it-themselves anymore. The gender that The Home
Depot used to market to was primarily men and contractors (Forbes, 2013, para. 5). When the
recession hit and Home Depot changed their commercials to show women painting and fixing up
their homes their demographic changed (Forbes, 2013, para. 5). Their use of Pinterest as a social
media strategy also shows how they market to women.
The income of The Home Depot Customer could vary anywhere from $20,000 to $200,000
annual income. The target market for this demographic would be the blue-collar lifestyle, would
be more likely to be a DIY customer. The higher income and upper-middle class customers
would more likely to be a DIFM customer.
Other demographics for customers vary with location, like most customers of The Home
Depot. Since everyone coming into the store has the same end goal, fixing or building something
to completion, the demographic could be anyone. The race of The Home Depot customer
definitely varies with location, especially with being international in Canada and Mexico. There
could be any number of members in the household of customers. The life-stage of customers are
a little easier to narrow down with collegiate, adult and senior. Marital status of a customer also
varies, there could be families, couples, singles, divorced, widowed, etc. as long as they are
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home owners or live in a home that needs work, Home Depot is for them.
Psychographics
These changes throughout The Home Depot over the past year are not only helping the
demographic of their three types of customers, but the different psychographic characteristics of
customers as well. These initiatives that are supposed to save customers time are great for the
customers that are on a time crunch with a project or impatient people. Home Depot’s clinics are
good ideas for gregarious people. They want to learn how to do something themselves, but they
also like to be social. Any DIY customers are ambitious for wanting to take on a project
themselves. Home Depot customers will have similar values to the companies because they have
similar goals, giving the customer what they want. Again, the lifestyle of
The Home Depot customers will vary with location.
Potential Target Market
The potential target market for The Home Depot would be the first time homebuyer. Suzy
and Smith are newly married and looking for a home, but they can only afford a fixer-upper in
the area they want. They want to live close to downtown with the options of restaurants,
shopping, and entertainment. They like to have date night once a week and want to be able to
walk to their destination. Suzy recently graduated with her Bachelor’s Degree and is going to
enroll in a Masters program soon, so she has to save money for that. Smith just landed a job with
a big law firm after passing his bar exam. He will be making approximately $50,000 after taxes.
Suzy and Smith have saved up $100,000 to put towards the down payment of their house. They
buy a fixer-upper for $350,000. They want to redo the kitchen, living room, master bedroom, and
bathrooms. They know this will be a slow process, but need to have a store that will help them
with their needs. This is where The Home Depot will come in to make their dreams a reality.
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Strengths
Mobile Marketing – Home Depot has a mobile first
mentality, believes in right sized content, and is always
experimenting and learning from their experiments to make
their Mobile Strategy the best in the business (Kohgadi,
2014).
Customer Service – Through Home Depot’s customer service, employees are able to build
long-lasting relationships with customers, which make them want to continue shopping
there (Home Depot, 2013, Our Company).
Low Price Guarantee – “If you find a current lower price on an identical, in-stock item
from any local retailer, we will match the price and beat it by 10%. Excludes special
orders, bid pricing, volume discounts, open-box merchandise, labor and installation, sales
tax, rebate and free offers, typographical errors and online purchases” (Home Depot,
2013, Low Price Guarantee).
Weaknesses
Return Policy – The Home Depot’s return policy is not consistent through all stores because
they can refuse to accept returns for any merchandise for any reason. Customers who
special order items or cancel these items could be charged a 15% restocking fee. Home
Depot also doesn’t accept returns for custom-made products or custom tinted paints
(Home Depot, 2013, Our Return Policy).
Online Presence – Home Depot realizes that they need to develop their online presence and
is investing $1.5 billion in this fiscal year (Seeking Alpha, 2014).
Product Recalls – Home Depot lists products recalled on their website with a link to the
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Consumer Product Safety Commission website so customers can be informed of the full
extent of the recall (Home Depot, 2014, Product Recall). Recalls are a weakness, but are
not 100% controllable.
Opportunities
New Technology – With technology changing so rapidly, there are many opportunities for
Home Depot to expand from just their website, blog, and social media sites.
Housing Recovery – According to the Joint Center for Housing Studies, “Foreclosed
properties are being rehabilitated, sustainable home improvements are gaining popularity,
older homeowners are retrofitting their homes to accommodate their evolving needs, and
the future market potential is immense, as the emerging echo boom generation is
projected to be the largest in our nation’s history” (2013, January 23).
Natural Disaster Relief – In 2013, when Hurricane Sandy devastated the east coast, The
Home Depot was there to help rebuild. Unfortunately, natural disasters happen with no
notice. Luckily, with Home Depot being a Home Improvement store and having the
Home Depot Foundation, they are always looking for ways to help the community around
them (Home Depot, 2014, Disaster Relief).
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Threats
Competitors – Home Depot has to keep a close eye on what their competitors are doing,
especially Lowe’s, Menard’s, and Sherwin Williams (HD Competitors, 2014).
Weather – Home Depot being a home improvement retailer, tends to do better in the spring
months because when the snow melts, people want to get ready for summer by starting
outdoor projects (Gustafson, 2014).
Security Breach – On Monday, September 1 Home Depot’s security was breached. As of
Monday, September 8, Home Depot stock is down 0.86%. They are offering free identity
protection services to any customer who might have been affected (McGrath, 2014).
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Based on Home Depot’s SWOT Analysis, there are two
major opportunities that they could focus on to increase sales
and customer growth and retention.
• Increase sales by 10% over the following fiscal year by offering home improvement
applications through The Home Depot.
• Inform target market about housing recovery projects and natural disaster relief through
The Home Depot Foundation by 25% by the following fiscal year.
First Product Description
The new product for Home Depot to create to increase sales could be a Home Improvement
App for Android and iOS. The app would contain tools to make it easier for customers to come
in to Home Depot to shop and know they are getting the product they want, saving time in the
store. One tool the app would contain is a camera that the customer would use to take a picture of
a room they are working on. After the picture is taken the customer can go through Home
Depot’s paint pallet and change the colors of the walls in the picture so they can see what color
would look best on the wall without having to go in to the store and get samples. After a picture
is taken the app will calculate the dimensions of the wall from the picture so the customer knows
how much room they are working with for either painting or building shelves and much more.
The customer could also take a picture of a floor and be able to scroll through flooring options
offered at Home Depot so they can see what the floor would look like before buying the product.
Once a product, floor, paint, etc. is picked, the app would then tell you what else you might need
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to complete the project, almost like creating a specialized shopping list for the customer.
Pricing
The app would be a free download from the app store, but if you want to use all of the
tools on the app, the customer would either need to sign in with an account they have set up
on the website to ensure the customer is using the app to buy the products from The Home
Depot. It would also contain a mobile version of The Apron Blog and links to all of their
social media, which the customer would not need an account.
Promotion
• Commercials would show the app features
• Featured in home improvement magazines
• Offer a trial for the full version of the app to non-account customers for one month
Placement
It would also be featured on The Apron Blog with ideas on how to use the app. All social
media sites would post a link to the app download page and Home Depot would put out an
instructive YouTube video for people to watch. Home Depot customers who have given their
email would receive links to the app download page and the YouTube video.
Second Product Description
Inform target market about housing recovery projects and natural disaster relief through The
Home Depot Foundation by 25% by the following fiscal year. There is a new target market out
there for first time homebuyers who are now buying old houses and completely renovating them.
The JCHS has reported that foreclosures are being renovated (JCHS, 2013). Since home
improvements aren’t just for foreclosures, but also if a home was struck by a natural disaster
Home Depot Foundation feels like it’s their responsibility to help the community rebuild. These
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are things that Home Depot already stands for, but doesn’t market to gain new customers.
Pricing
Since these two products are so closely related and are in need of marketing to the new
target market, pricing would be for advertising and promotion.
Promotion
• Good willed intentions commercials to show how Home Depot is helping run down
or destroyed homes
• YouTube videos with testimonials to tug on heartstrings and show the good that
Home Depot does
• Offer special discounted products or services to natural disaster customers
Placement
The Apron Blog would do features on how to help after a natural disaster and tips on how
to stay safe during hurricanes, tornadoes, earthquakes, etc. All social media sites would post
before and after photos. YouTube would be where the testimonial videos would be posted.
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Statement
The purpose of The Home Depot advertising will be to
convince our target audience, young professionals, that The
Home Depot is the only home improvement store that they
can purchase all of the supplies needed to renovate their
homes with the help of their new phone application. This
will be accomplished through creating advertising that demonstrates the app features. It will also
contain the new tag line, “Your Vision, Our Products. Your Home, Our Depot.” The mood and
tone of the advertising will be young, trendy, tech-savvy, and compassionate.
Creative Brief
Client: Home Depot
Type: Magazine Ad
Why are we advertising?
To publicize The Home Depot’s new phone application to acquire and educate app users about
functions.
Whom are we talking to?
People who are renovating their homes and want to save money by doing it themselves.
What do they currently think?
The Home Depot is too confusing to figure out exactly what products they need for the
renovation they plan on doing.
What would we like them to think?
The Home Depot app will make it easier to figure out what to buy in the store or order online.
What is the single most persuasive idea we can convey?
The Home Depot will help make your vision for your home a reality.
Why should they believe it?
The Home Depot is making it as easy as possible to help customers do it themselves.
Are there any creative guidelines?
Four-color, full-page magazine ad
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Media Objectives
• Target 60 percent of our media resources toward new
customers and 40 percent toward current customers
• Reach 40 percent of the target audience at least four
times every quarter during the next fiscal year
• Increase positive brand image and perception of
character and innovation by 30% in the next quarter
Media Strategies
• Target ads demographically and socioeconomically using social media platforms
• Purchase print advertising to target and educate potential and current customers based on
interests
• Use television advertising to visually demonstrate new applications available
• Create an emotional response through social media and television advertising to target
potential customers
Media Tactics
Television
For television advertising The Home Depot will create a 30 second commercial that tells
potential and current customers about the new application that they have created. It will show
a woman using the app going into The Home Depot and being able to pick up exactly what
she needs for the project and then show the completed project. For this commercial The
Home Depot will advertise on several networks and during certain local programming. The
Home Depot will use a flight schedule throughout multiple day-parts.
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Networks
• CBS
• NBC
• ABC
• Fox
• Bravo
• ESPN
• HGTV
• DIY Network
• WE TV
The Home Depot will want this type of commercial to be shown during sporting events,
news programs and on networks that attract a demographic and socioeconomic for potential
customers. If the target markets are young couples buying their first home, the networks
should have programs about real estate, renovations, and decorating. Also, advertising during
sporting events will gain the attention of not only females and males that pay attention to
other networks, but one’s that may need the seed planted in their head for a renovation.
The Home Depot will create a second commercial that will create the emotional response.
These commercials will be testimonials of customers who have been in a natural disaster and
talk about how The Home Depot has helped them get what they need to rebuild. The
commercial could also be a call to action of sorts in areas that natural disasters have just
happened for people to donate money, time, or supplies. This will satisfy the marketing
objective to inform target market about housing recovery projects and natural disaster relief
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by 25% by the following fiscal year. The networks chosen for this commercial will be a little
different.
Networks
• CBS
• NBC
• ABC
• Fox
• ESPN
• CNN
• Fox News
Magazines
The Home Depot will create a Full Page Four Color Ad for magazines. The ad will be
educational towards potential and current customers showing the new app and how Home
Depot will help your vision for your home will become a reality.
• Better Homes and Gardens
• Good Housekeeping
• Consumer Reports
• HGTV
• DIY by BHG
These magazines will satisfy the media strategy to use interests to attract potential
customers. Since The Home Depot wants to attract people who want to improve their home,
whether it’s a recent purchase and needs to be renovated, or the house needs a facelift. These
magazines will attract people that are thinking of ways to better there home.
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Digital & Social Media
Create a banner ad that will be at the top of sites for people who have searched for real
estate, DIY ideas, or visited a competitor’s site. The banner ad will be simple with a coupon
and the new slogan “Your Vision. Our Products. Your Home. Our Depot.” The Home Depot
will then upload a video of full explanations for the new app on their YouTube channel along
with testimonials of how Home Depot has helped during natural disasters. The Home Depot
will create a new Pinterest board to show before and after photos and another board to show
how they can help create certain looks for their home. They will buy ads for Facebook and
Twitter so they will show up on everyone’s feed saying “*Sponsored.”
Using digital and social media will help satisfy all four media objectives and the two
marketing objectives that The Home Depot has set out for the next fiscal year. These ads will
bring Home Depot to the forefront of everyone’s minds by seeing them show up on
Facebook and Twitter. Also, when people are searching for home improvement ideas on
Pinterest and come across The Home Depot’s pins they will be able to link to the website to
search for items they would need. The banner ad that would show up on sites after potential
customers visit other similar sites will be another visual reminder to look there.
Media Budget
This pie chart represents a
breakdown of a $30
million media budget
designed for the following
fiscal year using the media
tactics for this IMC plan.
Television
33%
Magazines
27%
Digital &
Social
23%
Contingency
17%
Media Budget
Television
Magazines
Digital & Social
Contingency
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Flow Chart
1Q 2015 2Q 2015 3Q 2015 4Q 2015
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
TV
CBS
NBC
ABC
FOX
BRAVO
ESPN
HGTV
DIY
WE tv
CNN
Fox News
Magazines
Better Home and Gardens FP4C FP4C
Good Housekeeping FP4C FP4C
Consumer Reports FP4C FP4C
HGTV FP4C
DIY by BHG FP4C FP4C
Digital/Social
Banner Ad
YouTube
Pinterest
Facebook
Twitter
28. WVU • IMC • 610 28
PR Objectives
• Grow The Home Depot’s positive brand image by
60 percent through creating new partnerships while
maintaining established partnerships throughout the next
fiscal year
• Strengthen The Home Depot’s social media
interactions with customers by 30 percent in the next quarter
• Increase awareness of The Home Depot Foundation by 40 percent through an event
sponsorship before the end of the next fiscal year
PR Strategies
• Increase Military discount percentage on Veteran’s Day and give a discount to family
members of the Military
• Become a DECA partner to help mold future leaders of America. “DECA prepares
emerging leaders and entrepreneurs for careers in marketing, finance, hospitality and
management in high schools and colleges around the globe” (DECA, 2014).
• Utilize Search Engine Optimization to elicit a new target market to view The Home
Depot’s website, blog, and especially their social media sites to create conversations
between employees and customers.
• Develop a relationship with multiple organizations that want to be a part of an event that
The Home Depot sponsors, to help build homes for people that can’t afford them
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PR Tactics
Press Releases
The Home Depot should create two positive press releases every month. This can include
national or local news. The press releases can be sent to newspapers and news stations,
depending on the target market for the news. These press releases can be used for promotion
of an event or to show a connection between The Home Depot and their community. For the
strategy to increase Military discount on Veteran’s Day, a press release would be written at
the end of October and sent out as national news, the story could then be picked up by any
local news station that has a Home Depot in the area. This press release can also be posted on
Home Depot’s website and sent out via email to The Home Depot shareholders. For the
strategy to become a partner with DECA, press releases could be sent to either help DECA
promote on a larger scale or to gain attendance to certain events held by local DECA chapters.
A press release with this type of information could be sent out through all social media,
posted on The Apron Blog and their website, along with included in their annual report. The
Home Depot should strive to send out 24 positive brand image press releases per year to
ensure getting local or national coverage. This would not include negative or immediate
notification press releases, for example the press release from September 8, 2014 about the
data breach.
Digital/Social Media
Use Search Engine Optimization to help create the perfect target market. When people
search for Home Depot or its competitors, post the Home Depot banner across the top of the
pages for ads. Since the target market for this campaign is a young couple who wants to
renovate their new homes, some keywords they should look for are:
30. WVU • IMC • 610 30
• Renovation
• Foreclosures
• Realtor
• Homes for sale
These key words could help Home Depot narrow down who their ads should go to. They
should use Twitter to help connect with prospective customers by searching trending topics
or keywords that people are tweeting about. Home Depot can also create a hashtag to start a
conversation and see what people think of their brand. They do a great job in utilizing
Twitter already, but they only tweet a few times everyday unless in a conversation.
Use Facebook to bring up topics that have been written about on their blog. They can also
show before and after photos of how people redesigned their homes with Home Depot.
Facebook is a great way to get publicity through other people sharing Home Depot’s posts.
Both Twitter and Facebook are great ways to create a good relationship with current and
perspective customers and maintaining these relationships.
Event Sponsor
The Home Depot has been a sponsor for ESPN College Game Day for 9 years. This is a
great sponsorship that has helped keep Home Depot in the forefront of college football fans’
minds during football season. They are also sponsors for Atlanta Sports teams as well as a
few others (The Home Depot, 2014). These events are great to sponsor, but it only gets
Home Depot’s name out in the sports world. One event that should be implemented within
the next fiscal year is a Music Festival. Since Music Festival attendance is on the rise, an
event of this magnitude could help show a generation that is about to graduate college and
look for jobs and homes, how The Home Depot is the place for all of their home
31. WVU • IMC • 610 31
improvement needs for the future (Gerstley, 2013). This event could, not only be about
advertising to a new target market, but it could also team up with a cause to create awareness
about the homeless epidemic in America. Over 610,000 people are homeless in America
(NAEH, 2014). Along with raising awareness, a certain amount of money from the tickets
could go towards an organization like, Habitat for Humanity, Salvation Army, and others.
The Home Depot could build the stage along with multiple “shelters” for too much rain or
shine. Music festivals tend to have different activities for attendees in between musical guests.
The Home Depot can have multiple tents or stations along with selling promotional spots at
the festival to different
organizations or companies
that are fighting for the same
cause to end homelessness in
America. One station can be
dedicated to demonstrating
The Home Depot’s new app,
while another can show how
they have helped families through their products. The Home Depot Foundation would be
there to help coordinate all of the tents, help build the stage, and to be the “help desk” at the
festival. Creating a partnership with Ellen DeGeneres would be beneficial to The Home
Depot, especially for this event. Since Ellen DeGeneres is big in the music scene, as well as
giving back to people, she could give away tickets at her show for the music festival and
promote that The Home Depot is trying to bring awareness towards homelessness, which
would give publicity towards the event.
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Direct Marketing Objectives
• Reach 60 percent of the target audience through email
marketing at least four times a month during the next fiscal
year
• Target 40 percent of mobile resources toward new
customers and 60 percent toward current customers
• Achieve a minimum reach of 45 through the first two mailers and a reach of 70 through the
last two mailers in the next fiscal year
Direct Marketing Tactics
Direct Mail
The Home Depot should create multiple direct mail pieces to send to different geographic
areas throughout the year. They would get addresses from customers who have a Home
Depot credit card or loyalty card. The direct mail pieces should coincide with beginning of
each season; if the location of The Home Depot is in an area that doesn’t get four seasons,
then it would be a different mailer than a location that has four seasons. For areas with four
seasons there should be four mailers:
• Spring – get lawn and flowers ready for the season
• Summer – outdoors festivities and work on the outside of the house
• Fall – seed the lawn so it will be fertilized for the spring and raking leaves, pulling
weeds, etc.
• Winter – get ready for the snow by buying a snow blower or shovels
For areas, like California or Florida, that don’t get four seasons, there should be mailers
around the same time but geared more toward holidays:
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• Baseball Season – get your house ready for baseball watch parties, barbecues, and end
of school
• Fourth of July – make sure you have everything you need for a Fourth of July party
• Football Season – Home Depot can help with your tailgating needs
• Christmas – get your home ready for the holiday by buying your Christmas Tree, lights,
and other decorations from Home Depot
Email
Technology continues to change every day, but one thing that is still a major form of
communication is email. The Home Depot can use email as a great tool to communicate with
customers and get information out in a matter of a few hours. There should be a set amount
of emails that are sent every month, around four or one per week, not including emails sent
out because of events that happen. If The Home Depot sends one email per week, it could
include specials that are going on in the store or online specials for the week. When
companies put ads in the Sunday paper, a perk for getting email from Home Depot is you
could get the specials before everyone else, they could be sent out on Friday evening. There
could be special emails that
coincide with certain holidays
or sport seasons. Some emails
that may need to be created in
a matter of a few hours could
be if a natural disaster occurs,
if a data breach happens again,
or other emergency situations.
34. WVU • IMC • 610 34
Mobile
Mobile is the newest way to get information directly to customers in a matter of seconds.
It is also the way that most companies are now focusing their marketing strategies. The
Home Depot could have multiple different marketing tactics towards mobile. Social media
marketing would be of use to Home Depot, with over 33.7K followers on Twitter and 1.6
million likes on Facebook, they could reach a good amount of their target market (2014). A
few ways they can use Facebook and Twitter is to keep customers updated daily on what’s
going on in the store or ways to use Home Depot products. Another way to use mobile is
through SMS messaging. With advancement in technology, Home Depot could send a text
based on a person’s location. If they are near a Home Depot, a text could be sent about a deal
or special going on in the store or a specific discount if that redemption code from that text is
used in the store in a certain amount of time after the text is received. Another way that they
could use SMS messaging is to send a text to customers with special discounts or promotions,
no matter what their location is. The text could be sent geographically an hour before the
nearest Home Depot opens near the customer with a deal for that day that can be used for a
24 hour time period online or until store close, if used in-store. Also, with the new Home
Depot app being created, there could be special QR codes given through the app to people
who have purchased the full app, not just the free app option.
35. WVU • IMC • 610 35
Sales Promotion Objectives
• Reach 60 percent of the target market with the special
promotions and gain 25 percent of quarterly earnings during
the next fiscal year
• Achieve a minimum of 15 percent of target market as
contestants in Instagram contest in the next fiscal year
• Target 70 percent of resources toward new customers for loyalty program and 40 percent
toward current customers
Sales Promotion Tactics
Special Promotions
The Home Depot could benefit from special promotions. A special promotion could be
sent through direct mail, email, mobile, in-store and any other way Home Depot wants to get
the word out. A special promotion through social media can be tricky because sites have put
restrictions on certain promotions. On the Facebook Guidelines it states “Promotions may be
administered on Pages or within apps on Facebook. Personal Timelines must not be used to
administer promotions [ex: ‘share on your Timeline to enter’ or ‘share on your friend's
Timeline to get additional entries’ is not permitted]” (2014). The way that you can use social
media for promotions is offer a “code” on Facebook and Twitter that you can enter on The
Home Depot website in the coupon code section when you checkout. With The Home Depot
new app that allows customers to preview what certain products will look like in their home,
there can be a special promotion given to app users. Since the app will allow you to take a
picture of a room and pick a paint, it then gives a customized shopping list of what you
would need to complete the project; The Home Depot could give a “package discount” to
36. WVU • IMC • 610 36
customers who purchase everything on the customized shopping list either online or in-store.
This package discount would ensure that customers are using The Home Depot for all of
their purchasing needs for certain projects.
Hold a Contest
With the advancement of the Internet and social media, there are a lot of ways that The
Home Depot can hold a contest. Customers could enter the contest in the store while
purchasing products. The contest would be held on Instagram. When customers come in to
the store, they would have to register with their Instagram handle. They would have to use all
Home Depot products for the contest with the maximum budget of $200. When they finish
creating the product they have to post pictures on Instagram using the hashtag
“#HomeDepotContest2015.” Along with the hashtag, the contestant would have to write how
much they spent, and the less money you spend to create the product, the better score you
will get. If a contestant spends $25 and creates something miraculous against someone who
spends the maximum of $200 and creates something mediocre, the scores would be different
because of the cost and finished product. A group of Home Depot employees would be
chosen to be the judges of the contest, ranging from sales associates, to management, to
corporate level. They would go on Instagram the day after the contest ends and judge who
built the best item using Home Depot products with the budget they are given. The winner or
winners of the contest could get any type of discount Home Depot wanted to give, one prize
for the contest that I think would be good for the 2015 fiscal year is a $500 gift card to Home
Depot so that they would get a $300 profit after spending the max budget of $200 to create
the item.
37. WVU • IMC • 610 37
Loyalty Programs
Loyalty programs are very popular in all different industries. The Home Depot could
create a loyalty program that gives points for purchasing products like 1 point for every $20
spent. Customers can start to redeem their points when they hit 25 points or have spent $500
at Home Depot. At 25 points the customer can choose to redeem the points or continue to
save them for a larger discount. The loyalty program can also give points for interacting on
Home Depot’s social media sites. The other great thing that some companies have started
doing with their loyalty programs is if the customer needs to return a product, instead of
having to rummage around and find the receipt or remember what credit card you used or if
you used cash. The Home Depot can pull up the purchase through the loyalty program card.
So, no matter what the customer used to pay with or if they bought in-store or online, the
receipts are stored in the database. Loyalty programs aren’t just for customers, it is a great
way for The Home Depot to get information from the customer to use for marketing. When
the customer signs up for the program, they have to give name, address, phone number, and
email. This information can then be entered into a database and used for marketing purposes.
38. WVU • IMC • 610 38
Throughout this IMC Plan for The Home Depot, a plan has
been put in place for a new commercial, print ad, mobile, an
event sponsorship, and new sales promotions. With these in
mind, there are multiple different ways to evaluate these
plans.
Concept Test
The Home Depot can use Twitter and Facebook to create this test. With the advancement of
sponsored ads on social media sites, they can focus the sponsored ad to a group of 50 people
throughout the country all within the new target market. After a consumer has clicked on the
sponsored ad through Facebook or Twitter, they will be asked to take a survey. The ad would be
the new slogan along with a picture about the new app being created. The survey could ask
qualitative data questions like:
• Their view on The Home Depot
• What The Home Depot’s original slogan was to see how many people paid attention
• If they would download the app
The survey could also ask quantitative data questions like:
• Age
• Sex
• Level of education
The answers to these questions could give The Home Depot insight on if they are creating the
right image for their target market.
39. WVU • IMC • 610 39
Diagnostic Posttest
One of the campaign objectives for this IMC Plan is to create awareness around The Home
Depot Foundation and how they help their community. Since one of the commercials is going to
be an emotional response commercial about a story with a family that The Home Depot helped
build or rebuild their home, the best measurement for this commercial after it’s created is a
diagnostic test. This test will help The Home Depot measure the evaluation of the ad. It will help
measure how the commercial was understood and if the commercial did a good job of
communicating the message. This test can also measure the consumer’s emotional response
(Belch & Belch, 2014, p. 631).
Sponsorship Tracking Measures
This IMC Campaign for The Home Depot has designed a Public Relations plan to become an
event sponsor. Since the event is a music festival, it would be easy to send out surveys a week
after the festival to get feedback on the attendee’s attitude towards The Home Depot. Every
attendee would have to purchase a minimum of one ticket, but some purchase their tickets in
groups. The Home Depot wouldn’t be able to get a reaction from every attendee, but at least a
reaction from every person that purchased the group of tickets. Sometimes an email is sent out
after an event to get a reaction about the event itself; The Home Depot could create a survey that
would not only ask about the event, but views on The Home Depot and their other sponsors,
including The Home Depot Foundation. During the event, at one of the stations, The Home
Depot could be asking for emails, especially if they have attendees signing up for loyalty cards at
the festival. This is another way to create a database to measure the effectiveness of The Home
Depot’s IMC Campaign.