Download pdf - Lowes mediaplan

2010mediaLowe’splan

Nick Ciffone, Franklin Kramer, Rose Osial, Christina Seiwert, Ryan Wahlheim

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table of contents

PART 1: Situation Analysis

PART 3: Media Plan

PART 4: Creative Strategy

Company Background

Industry Information

Industry Competition

Recent Trends Facing the Industry

Current Users

Geographical Emphasis

Seasonality & Timing

Consumers & the Decision Process

SWOT Analysis

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PART 2: Primary Research

Media Mix & Media Objectives

Print

Television

Radio

Billboards/Transit

Online/Digital

Non-traditional Media

Media Schedule

Budget Overview

Our Research

Primary Target Audience

Secondary Target Audience

Ethnography Results

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30.

Current Advertising (Lowe’s and Competitor’s)

Creative Brief

Creative Requirements, Brainstorming, & Final Strategy

Print Advertisement #1



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Executive Summary

References

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executivesummaryFounded in 1946 in North Carolina, Lowe’s hardware store started as a local establishment. Nearly 63 years later, it has grown into one of the largest home improvement corporations in the United States. It is currently the second largest hardware store in America, with Home Depot being first. They offer a variety of products within their 13 departments with their biggest sales in appliances, lumber, paint, and flooring. Lowe’s separates themselves from their competitors with their customer service and clean “easy to find what you need” store layout.

Although the current economic recession has created slow sales in every aspect of the consumer market, Lowe’s is still expanding; they will be opening 60-70 stores in the upcoming year. There are many economic, political, social, and cultural trends that affect this industry. Obama currently has a plan to stimulate the economy, and the initiative toward energy-efficient products has a large impact on the home improvement industry.

Lowe’s is trying to reach the consumers that are shopping with more convenient store locations and familiar advertising. While most stores are located in the East and Midwest portions of the United States, there are Lowe’s located amongst metropolitan centers farther west as well. This may suggest that media dollars should target consumers who are unaware of Lowe’s. In current campaigns, Lowe’s has been using celebrities like NASCAR Driver Jimmy Johnson, to show that “do it yourself” is possible. Lowe’s even offers step by step help on their website with instructional videos. They also present “Lowe’s Creative Ideas” to inspire hom-eowners to make their living space their own.

Currently there is a fairly even distribution of male and female Lowe’s shoppers. Many of the consumers are post-graduate degree

as well, and the biggest age demographic is the 25- to 34-year-olds. Based on this research and others, we have made our primary market the “Early Squatters” who are working, educated, new home-owners. Their age range is 25-34 and are best put in the middle to upper-middle class. They are comfortable with technol-ogy and reliant on the internet, so using digital media is a must. Our secondary target market is “The Realized,” who are Hispanic individuals in the upper-middle class with disposable income. Either they or their close relatives immigrated to the United States, and since then they have become successful. While fluent in both Spanish and English, they tend to speak Spanish in the home and are still very much submerged in the Hispanic world and culture.

Our objectives are to increase brand awareness and preference in both our markets, and change attitudes about Lowe’s, so that it becomes perceived as a helpful hardware store, instead of just an ordinary one. Lastly, we want to increase revenue. In order to accomplish these tasks, we will give the consumer promise, “Your dad could fix anything, you can’t. We’ll help you fix up your home, whether it’s tips, direction, or translation.” Our campaign is going to have an honest, helpful, and welcoming tone implying that Lowe’s isn’t just a store, but a community as well.

To accomplish this, we are going to use a wide variety of media, including non-traditional media, such as the internet, advertis-ing on bus shelters, and hosting Lowe’s classes to educate the consumer, as well as a forum on our website where people can discuss projects and ask questions with employees being there to help. And in addition to having traditional ads in Spanish for the Realized target market, we are also going to have Spanish to English and English to Spanish handbooks with hardware terms, showing that we care about the Hispanic community.

4|situation analysis

L owe’s was founded in 1946, in North Carolina. It began as a small local hardware store, and now it is one of the largest home improvement retailers

in the United States. It was incorporated as Lowe’s North Wilkesboro Hardware in 1952. Lowe’s has always been a suc-cessful company, from the time it went public through today. The company went public in 1961 and was renamed Lowe’s Company. Within the first 20 years there was a great increase in sales, due to the active housing market at the time and Lowe’s presence as a main hardware store. During this period, Lowe’s main target was contractors and people involved in the construction industry. Lowe’s first billion-dollar year was in 1982 and profits were at a record high (lowes.com) (http://www.fundinguniverse.com).

Lowe’s didn’t want to restrict business to those in the housing market, so they decided to expand to the everyday consumer that had basic hardware needs, or the “do-it-yourself homeowners”. To do this, Lowe’s needed to both change the style of their stores and build more of them in order to reach the everyday consumer. Their main focus was adding more basic products. This way they would no longer be seen as “just a lumber yard”. This idea led to major success for Lowe’s. The layout of the current Lowe’s started in 1994. The stores became enormous; most new stores are at least

85,000 square feet with some getting close to 120,000 square feet. During this period Lowe’s started using their slogan, “everyday low prices”, which supported their average “do it yourself” customer’s budget (lowes.com) (http://www.fundinguniverse.com).

During the late 1990’s and early 2000’s Lowe’s was doing so well that they were building a new store close to every week. While currently Lowe’s is not expanding at such a rapid rate, it is esti-mated to build around 60-70 new stores in 2009 (Lowe’s Annual Report). Lowe’s has also started to enter different markets outside of the United States, with several stores in Canada and plans for stores in Mexico as well. All of this success has allowed Lowe’s to become the second largest hardware store in the United States, only behind Home Depot.

Like all other industries, our country’s current economic state has taken a toll on home improvement. In recent years Lowe’s, along with its competitors, stock prices have been dropping. In 2005 shares were slightly above $33.00, but at the end of 2008 shares finished at $21.52. The biggest drop was from 2006 to 2009, when shares dropped nearly $9.00 (lowes.com). Despite this, however, according to the 2008 Lowe’s annual report, executives assured stockholders and employees that their needs will be taken care of in this time of difficulty.

companyoverview

Situation AnalysisPART 1


(continued from previous page)

Current Media SourcesLowe’s uses many different media sources in order to advertise. They use all the popular forms of media that you would expect, including TV, radio, internet, and billboards. One of their sponsors is NASCAR driver Jimmy Johnson. In commercials, he can be seen working on cars or helping construction workers using Lowe’s products. The ads make him appear as an everyday guy, making it look easy for those like him to accomplish all these home improvements with the help of Lowe’s.

They also use direct marketing, which depends on the area that you live in and that area’s needs. Lowe’s website, Lowes.com, offers additional tips and other websites related to consumer’s projects. They have a “Lowe’s Creative Ideas” section which provides ideas on how to improve your home. There is also a portion with instructions on carrying out the improvements all with Lowe’s products. Another site is Lowe’s for Pros, which gives resources to professional contractors. Lowe’s includes a lot of instructional videos on most of their sites, which shows they are adapting to new media trends. Lowe’s also has an option to become a fan on Facebook. We also found that Lowe’s is not present in the mobile marketing, suggesting the need for creating mobile apps. They are also very involved in the communities where they are located. They donate millions of dollars each year to different charities, with their main charity being Lowe’s Charitable and Educational Foundation. For PR, Lowe’s will send repre-sentatives to help out in local areas to build or rebuild houses, etc. They also donate free tools to relief projects, schools and other groups that are in need of tools (lowes.com).

Official Website: Lowes.com Lowes.com has 13 different departments including: appliances, building sup-plies, flooring, hardware, heating and cooling, home décor and paint, lawn and garden, lighting and fans, outdoor living, plumbing, storage, tools and then finally windows and doors. Within these departments there are a bountiful amount of different brands, styles, price options, etc. Many of their stores are over 75,000 square feet and include the majority of the products shown on the website. Although they offer a variety of products, their top four selling products are appliances, lumber, paint, and flooring (lowes.com).

One of Lowe’s slogans is “everyday low prices.” This slogan tells us that Lowe’s wants to be perceived as the hardware store with the best for your budget. However, in a competitive market, it is very hard to have prices that are that much different from your competition. Looking at consumer reviews, there is a mix of opinions on which home improvement stores give you the most for your money. All in all, it seems that Lowe’s is on the same level as their competition in pricing (http://www.bloggingstocks.com) (lowes.com).

As of 2008 Lowe’s had 1,649 stores, 11 of which are located in Canada.. With over 1,600 stores in the United States, it is not difficult to find a Lowe’s store; they can be found in all 50 states. However, the stores in large metropolitan areas are bigger and have a wider selection. We can also see a higher concentration of stores in the Midwest and East Coast, compared to the West Coast (.com).


Lowe’s belongs to the hardware industry. As mentioned earlier, it is number two in sales in the United States, right behind Home Depot. Lowe’s sales in 2008 were around 48 million dollars, compared to Home Depot with 84 million. They are currently number 48 on Fortune 500’s list. Like most industries in the current economy, the hardware industry has seen a decrease in sales. People are saving more and watching what they buy, especially when it comes to non-essential needs. Unfortunately, many people see hardware stores’ products as non-essential. Another reason for the decrease in sales is that the housing market is one of the largest markets for hardware stores. Unfortunately, the housing market is also one of the hardest hit industries in today’s economy (realator.org) (www.nytimes.com). Because of this, hardware stores are selling less lumber, which normally make up a significant percentage of their sales (http://money.cnn.com). In connection to the real estate market, if people aren’t building new houses, they don’t need appliances or paint to furnish them. This decrease in sales affects the numbers of two of Lowe’s biggest sell-ers. Hardware companies have an optimistic outlook for the future, declaring

the worst is over, and the hous-ing market should be improv-ing. Although new housing has been hit hard, many people are redoing their existing homes, which still benefits hardware companies (www.realtor.org). All in all though, the sales do not compare to when the hous-ing market is thriving. Compa-nies are making cuts all over, including in their advertising. Lowe’s reports cutting nearly 84 million dollars in advertising since 2006 (lowes.com).

industryinformation


industrycompetition

Overview The home improvement industry is highly competitive and determined primarily by price, store location, cus-tomer service, and merchandise sold. In each individual market, there are many minor competitors who con-centrate on providing consumers with products related to electrical projects, plumbing issues, building materials, flooring, and lumber. Often discount stores, local hardware stores, inde-pendent building supply stores, or other retailers provide local competi-tion within this industry. The home improvement market in Champaign, IL, for example, includes large cor-porations such as Lowe’s and Home Depot, as well as smaller businesses like Menards, Round Barn True Value Hardware, Illini Contractor Supply, Hundman Lumber and RP Lumber Incorporated.

While the home improvement indus-try is considered “competitive,” sales and market share are controlled by two major corporations: The Home Depot and Lowe’s. The Home Depot lists itself as the industry leader, main-taining a 20% market share as of the end of fiscal year 2008 (The Home Depot 2008 Annual Report). From a financial perspective, Lowe’s is the industry’s second most powerful cor-poration, directly behind The Home Depot (Yahoo! Finance).

Direct Competition Lowe’s faces direct competition from one major corporation, The Home Depot. Smaller, direct competitors include Menards and Sears, and Roe-buck & Company (refer to charts on following pages). Compiling informa-tion for Menards is difficult because the data are privately held. Analyz-ing financial information for Sears, Roebuck & Company is also difficult because it is owned by Sears Hold-ing Corporation, the publicly traded parent of both Kmart and Sears, Roe-buck & Company. Their annual report encompasses spending and budget-ing for each of their divisions and the exact amount allocated to their Home Services sector is unclear.

Lowe’s also faces minor competition from smaller, more specialized stores including Ace Hardware, Lumber Liquidators, Builders First Source, Sherwin-Williams, Stock Building Supply Inc., 84 Lumber Company, Do It Best Corporation, and CCA Global Partners. Direct minor competition varies between markets and many of these companies do not operate in all areas of the country.

Indirect Competition The consumers, in conjunction with the economy, can be viewed as indi-rect competition. The decision to renovate one’s home or take on a home improvement project is depen-dent upon the amount of money and time that consumers have available. In recessionary times, home renova-tions are generally not initiated due to unstable finances.

Home furnishing stores can also be considered indirect competitors to Lowe’s. Homeowners who are look-ing to upgrade their living areas but don’t want to undertake large renova-tions might choose to purchase new furniture to redecorate their space.


financialinformation

Market Capital 1: $31.1 billionEmployees 2: 228,000Revenue 3: $47.39 billionNet Income 4: $1.88 billion

Market Capital 1: $45.77 billionEmployees

2: 322,000Revenue 3: $67.64 billionNet Income

4: $2.38 billion

brandpositioning

“Lets build something together.” Lowe’s stresses the importance of the consumer and makes efforts to simplify the shopping experience, works to ensure stores are staffed with knowledge-able employees, and makes efforts to ensure their supply chain is managed efficiently and to benefit the consumers’ needs.

“You can do it, we can help” The Home Depot builds and emotional connection between brand and consumer through the notion of “I did it” and a sense of accomplishment. The Home Depot is concentrating on improving customer service. They offer many installation services and delivery options to help their customers with their projects.

promotions Free Delivery and Haul Away, Free ice maker with purchase of Frigidaire, Lowe’s Cool Idea Products, Lowe’s Project Card, $39 Installation on All Stainmaster Carpet, 72-hour installation on any in-stock carpet, $139 entire house carpet installation, Weekly Ads, Newer Lower Prices; Direct Mailing

Emailed coupons, rebates, free shipping, “purchase select energy-saving products and you may be eligible to receive a federal tax credit,” weekly sales

mediavspending

Since 2006, Lowe’s has worked toward implementing more efficient marketing strategies, allowing them to cut annual advertising expenses by $84 million. Reductions were made in mass media advertising as Lowe’s has gained national awareness and market share. They are placing a greater emphasis on spend-ing money to target consumers directly by using mail campaigns and affinity websites like Lowes.com and LowesCreativeIdeas.com. In 2008, advertising expenses amounted to $789 million.

In fiscal 2008, The Home Depot reported an advertising expense of $1 billion. Television, radio, and print were the primary media outlets used.

pricing Lowe’s remains committed to their Everyday Low Price strategy and also utilized a “Newer Lower Price Initiative” to build traffic and increase sales.

Remains competitive stating: “If any competitor tries, we’ll beat their price by 10% guaranteed.” However, some pricing may be affected by labor costs, competition, speculation, government regulation, or delivery delays. Recently instituted a “Newer Lower Price” campaign where they lowered prices on items temporarily to increase sales.

products Appliances, building supplies, flooring, hardware, heating/cool-ing, home décor, paint, lawn/garden, lighting, fans, outdoor living, plumbing, storage, tools, windows, doors

Appliances, bath, building materials, décor, doors, windows, electrical, flooring, kitchen, lighting, fans, outdoors, paint, storage, tools, and hardware

locations About 1,649 Stores located throughout the U.S. and Canada About 2,233 Stores located throughout U.S. including Common-wealth of Puerto Rico, the territories of the U.S. Virgin Islands and Guam, Canada, China, and Mexico.

current users

They view their consumers as having low confidence levels with regards to finances due to difficult economic times and high un-employment rates. Most of their current users are Do-It-Yourself, Do-It-For-Me, or Commercial Business Customers. Lowe’s places more emphasis than their competition on engaging female consumers who are interested in redecorating and updating their homes.

The Home Depot services three primary customer groups: Do-It-Yourself Customers who are typically home owners that need products for projects and installations, Do-It-For-Me Customers who are typically home owners that purchase materials and hire a third party to complete the project, and Professional Customers who are professional remodelers, general contractors, repairmen, small business owners, and tradesmen.

Lowe’s Home Depot

1 Shares outstanding is taken from the 2008 annual report and Market Capital is calculated using shares outstanding.2 Employee estimates were taken from 2008 annual reports for Lowe’s and The Home Depot.3 Revenue is from 2008 as reported by www.finance.yahoo.com4 Net Income is from 2008 as reported by www.finance.yahoo.com


Sears, Roebuck, & Co.

1 Financial information for Menards was taken from reports on www.yahoo.finance.com. Reports are for the most current fiscal year, 2008.2 Information was taken from 2008 annual reports for Sears Holding Corporation.

Menardsfinancialinformation

Market Capital1: n/aEmployees: 40,000Revenue: $7.8 billionNet Income: n/a

Sears, Roebuck, & Company is a privately held company. It’s parent company is Sears Holding Corporation. Net income for 2008 was $53 million. Appx. 15% ($8.7 million) of this was credited to the home appliance division. 2

brandpositioning

“Save Big Money at Menards”“Dedicated to Service and Quality”“The Menards Guy”

Sears primarily carries Kenmore, Craftsman, DieHard, and Lands’ End and believes its consumers are very brand loyal. They empha-size customer service and have the Sears Blue Service Crew that is available 24/7 to assist customers. Their website is use-friendly and utilizes graphical elements. The icon of the Service Crew is the theme of the Home Services website.

promotions Credit programs, rebates, EnergySTAR (tax credits for purchas-ing energy-saving products, EnergySTAR for Kids, coupons, and weekly ads

Weekly ads, e-mail savings, Shop Your Way, flat rates, delayed pay-ment options

mediaspending

n/a Media spending is difficult to estimate for Sears because their financial statements encompass Sears as a corporation and does not breakdown by divisions. Advertising for Sears Corporation was cut by about $14 million. However, this says little about the total amount spent advertising the Sears Home Services division in particular.

pricing Menards guarantees everyday competitive pricing. They will beat competitor’s prices by 11% on any identical item at any local retail competitor (www.menards.com).

Competitive

products Counter tops, doors, decking, roofing/siding, hardware, electrical, wall coverings, plumbing, housewares, cabinets, appliances

Appliances, automotive, tires, home services, lawn/garden, out-door living, tools, heating/cooling, counter tops, cabinet refacing, exterior doors, garage doors, kitchen remodeling, siding, windows, installation services

locations About 250 storesLocated in 12 states, primarily in the Midwest U.S.

About 2,086 storesOperates about 856 full-line stores, 872 Hometown Stores, 49 Home Appliance Showrooms, 110 Sears Hardware Stores, and 86 Orchard Supply Hardware Stores.

current users

n/a Sears strives to create and maintain long-term relationships with their customers. Their home improvement segment is primarily comprised of Do-It-Yourself customers.


trendsrecent

influencingthe industry

Economic Trends Sales for companies within the home improvement industry have been declining due to the economic recession that began in December 2007. Housing turnover was down 16% in 2008, and unemployment rose to 8.1% in Febru-ary 2009. Private residential construction spending decreased by 27% from Septem-ber 2008 to September 2009. Also attrib-uting to the decline in home improve-ment store revenues is the reduced pri-vate nonresidential construction budget. From September 2008 to September 2009, this budget was reduced by 20%. Non-residential construction refers to funding for the following private categories: lodg-ing, office, commercial, healthcare, edu-cational, religious, amusement and rec-reation, transportation, communication, power, and manufacturing. On the other hand, public nonresidential construction spending increased by 6.1% from during the same time frame (U.S. Census Bureau, 2009).

Political Trends More building material suppliers and home improvement retail-ers are expanding their lines of certified wood products in response to consumer demands. Environmental certification and labeling for wood products is a way to reas-sure consumers that a store’s products are environmentally friendly and not harmful to the forest ecosystem.

President Obama’s stimulus plan has taken action to support the housing and home

improvement industries. The plan places importance on creating energy efficient alternatives to conserve natural resources as well as save money. The plan rewards taxpayers who have taken measures to reduce the amount of energy used in their homes by installing energy-efficient doors and windows, insulation, air conditioners, furnaces, heat pumps and boilers (Recov-ery.gov).

Additionally, designating funding toward the construction sector was an important component of Obama’s plan. The U.S. Gen-eral Services Administration also report-ed that since the implementation of the American Recovery and Reinvestment Act passed in February 2009, a total of more than $1 billion has been invested in con-struction. Much of this money has been spent on commercial building, transporta-tion improvements, and conservation and development initiatives (Recovery.gov).

New homeowners are especially benefiting from the Recovery Act, as the U.S. Depart-ment of the Treasury declared in February 2009 that first-time homebuyers are eli-gible to receive up to an $8,000 tax break. As of August 2009, a mere six months later, the Act has helped an estimated 50,000 rural families across the country become homeowners (Recovery.gov).

Social and Cultural Trends New technolo-gies associated with home improvement products and services are essentially cut-ting costs for consumers. In addition, an

emphasis on developing environmentally friendly products has resulted from con-sumer concern over global warming and other energy saving issues. “Going Green” has been an overwhelmingly influential movement that the home improvement industry has needed to accommodate for (Home Improvement & Hardware Retail Industry Trends, Hoovers).

Another cultural trend deals with shifting gender roles. Women are taking more interest in the home improvement process. For this reason it is important for retail-ers to cater to the preferences of women and create an attractive store layout that appeals to this audience.

“Empty nesters” and adults who are no longer primary financial providers for their children are more likely to invest in home renovations. Because they no longer have the burden of educational expenses, they now have time and money to allocate toward home improvement projects.

An article posted on HGTV’s website sug-gests that while home construction levels may be low, homeowners may be more willing to renovate, resulting in stores offering more materials and labor services than in previous years. A study of 5,000 U.S. homeowners stated that the most common renovation plans were for kitch-ens and bathrooms (“New Survey Reveals Homeowner Attitudes, Preferences Regard-ing Remodeling Projects”).


As indicated by the MRI data, there cur-rently seems to be a fairly equal distribu-tion of male and female users. Of all people who have shopped at Lowe’s in the past 12 months, about 51% have been male, while 49% have been female. Additionally, about 44% of the people shopping at Lowe’s have a post-graduate degree, which is a greater percentage than any other catego-ry in terms of schooling. By far the lowest age demographic is the 18-24 year old market; only 7.51% of people in this cat-egory have visited Lowe’s in the past year, compared to more than double (16.61%) in the 25-34 bracket, who are probably first time home buyers. Even 14.2% of the 65+ demographic have visited it in the same period of time.

Lowe’s also seems to heavily target work-ing, full-time employees. Just about 60% of this group has been at a Lowe’s in the past 12 months, while only 10% and 30% of people have visited working part time and not working at all, respectively. In addition, Lowe’s is attracting couples more than singles, widows, the separated, or the divorced; 66.96% of married individuals have visited, while only 23% have in the ladder category. Also, in terms of family, there seems to be a positive correlation between age of children and likelihood of visiting a Lowe’s. If someone has a child of less than two years, there is only a 7.32% chance they will have visited a Lowe’s. 2-5 years, 14.48%, 6-11 years, 19.32%, and 12-17 years, 20.62%. This data sug-gests that Lowe’s is especially attractive to couples, probably because building a home is something more commonly done with people with families.

In terms of geographical location, our stronger areas are clear cut. In the North East, only 17.42% people have been in a Lowe’s the past year, while in the south, 44.21% of individuals have. Areas are com-parably low in the North East, Midwest, and West regions as well.

currentusers


Where are our current store locations? What is our distribution?

The highest population of Lowe’s stores can be found in Texas,

with 140 stores. Florida follows closely with 117 stores, then North

Carolina with 113 stores. However, the highest percentage of

stores for its population is its home state of North Carolina. The

distribution looks to push out from North Carolina with heavy

density in surrounding states: Virginia, Ohio, Tennessee, Georgia,

and Pennsylvania. Outside of this area stores grow continually

sparse out west, with concentration of stores around major cities

and population areas. In addition to having a presence in all 50

states, they have stores in Canada, and are even opening stores in

Mexico. With a concentration around cities and suburban areas,

Lowe’s store density reflects population density throughout the

country. It is more skewed toward stores in the Mideast, and with

scattered stores in some rural areas.

Regional Distribution Centers Existing Stores New Stores in 2008

Lowe’s has 1,649 stores as of 2008.

geographicalemphasis


According to Google Finance, the three-month period with the highest sales for Lowe’s has been the summer months of May to July, with 14.51 billion dollars in 2008 and 13.84 billon in 2009. August to October collected 11.73 billion in 2008 and the slowest season was November to Janu-ary with 9.98 billion in earnings. These numbers are probably due to the weather conditions asso-ciated with these months. The most lucrative season is in the summer, when weather is warm enough for open air, or outdoor projects. During this time contractors or even do-it-yourself hom-eowners do not have to worry about harsh ele-ments ruining or delaying their projects. The types of projects that we might see during this time would be building outdoor patios, building and entire home, finishing a driveway, putting new shingles on a roof, etc. All of these projects are dependent on the weather. If there is poor weather, these projects would be affected. This factor would be particularly troubling in regions where weather is more variable. In the south, particularly in the west, weather is usually not a factor in home improvement, unless it is too hot to work. However, in the Midwest, East Coast, etc weather can be more questionable areas. Therefore, we will have different marketing strat-

egies for these regions that relate to the types of projects that their weather allows.

The winter months also offer the biggest holi-day season of the year. With important celebra-tions like Christmas, Hanukah, New Years, and Kwanza, many families are spending their free time together during this time. While on the one hand, the holidays allow many homeowners time off from work, their vacation time is for friends and family, not home improvement. Also, many consumers do not want their house under con-struction when they are having their loved ones over. The construction creates unneeded mess and anxiety for the homeowner when instead they would rather focus on bringing the family together.

From anecdotal research, it seems that the busi-est days of the week for Lowe’s would be week-ends and holidays. While contractors may visit Lowe’s any weekday for their profession, most adults have to work on these days and don’t have time to go to the store. They therefore go on weekends when they have more time. On week-ends, lines are generally longer, and more staff is available for the higher traffic of customers.

seasonalitytiming&


Consumers seem to have a fairly good idea of what the home improvement product category is. Certain things are just known to be at hardware stores, such as lawn mowers, tools, insulation, nails, and lumber. Based on anecdotal research, it seems that most people don’t know the difference between Lowe’s and its competitors; it is often the case of whichever hardware store is closer. Many people, however, will want to avoid hardware stores altogether if they don’t consider themselves “hardware people.” They would rather find someone who knows what they are doing or even hire a third party to fix things for them.

Between Lowe’s and Home Depot, which is its main competitor, there is a lot of discussion (most of the information gathered was discussion on online forums; links are at the end of this section. In order to minimize bias, discussion was taken into consideration from different websites. Everything else in this section is based on informal interviews). Based on my observations, it seems that the majority think that Lowe’s is cleaner than Home Depot and better organized. For example, when asked which store he prefers, user “Skivvywaver” writes, “Lowe’s for me. Lowe’s tends to stock more at night so I am not dodging fork lifts as much. Wider aisles than depot also. For most things I go to Lowe’s. For what Lowe’s doesn’t carry I’ll go to depot but I really hate that place” (http://forums.techguy.org/random-discussion/582987-home-depot-lowes.html). One user even writes, “I prefer Lowe’s - I like the layout and the blue color rather than HD’s orange and white wire cage-shelves” ” (www.city-data.com). It also seems that the majority of people think that the customer receives better ser-vice at Lowe’s than Home Depot, which is definitely significant. For example, one user, “TampaKaren”, writes, “I’m lucky to have both nearby. I picked Lowe’s because their staff seems to be more friendly and able to answer my questions better. I’ve had people at my local Home Depot avoid eye contact and turn in another direction” (http://www.city-data.com/forum/shopping-consumer-products/806774-lowes-vs-home-depot-2.html). On another forum, OPie160 writes, “My answer is based on my own experience, and with that said, Home Depot has a lot of stuff, but Lowe’s personnel were friendly, and very, very helpful, more so than Home Depot’s people” (http://www.bookrags.com/qa/viewanswers.php?msg=79).

Both timing and purpose for many products in home improve-ment stores affect sales. Some items, like lawn mowers, are prob-ably a one-time purchase that might include comparison shop-ping and going to different stores. Other items, like hammers, are also not very frequent but do not require as much research for the average consumer. A consumer might ask a sales associate for help, but not necessarily. And then there are extremely inex-

pensive items, like nails or nuts, where the customer is looking for a specific thing they know beforehand, and will not ask for help unless they need help finding where it is.

When discussing the Consumer Decision Process, it again varies significantly from consumer to consumer, as we are not offering a single product but a store that offers a wide selection of products. I suppose the best place to begin is with “preference”, as they first have to choose which store to go to in order to purchase a specific item. As stated above, it is often a case of which one is closer. This might be because the “search” is generally thought to be better at Lowe’s, which is seen as having better organization. Selection is not as one-sided, although there seems to be a slight perception that Home Depot caries more (again, this is based on research from online forums). All of the other steps of the decision making process depend on the item being purchased. The wide variety of potential points in the consumer decision making process means that we must focus on the part of the decision making process that we can make a biggest impact on through advertising. While many people currently just choose a store on factors such as distance, with the help of advertising we can ideally build a real preference, where someone might drive the extra distance to Lowe’s if they truly feel like they have a better connection with them.

need • awareness • preference • search •selection • purchase • use • satisfaction

decision processconsumers the&

SWOTanalysis


• High geographic penetration across the United States, espe-cially in the South • Offers their website in multiple languages to cater to a diverse customer base • Recent growth in market share as stated in their 2008 annual report • Contributions toward philanthropic events and community in-volvement

• Slowed expansion, es-pecially in the western United States • Lack of mobile apps marketing. • Price per share has declined over the past few years • Experience lower sales in the winter be-cause home improve-ment projects are not generally initiated dur-ing the holiday season • Contractors are more likely to purchase sup-plies from The Home Depot

• Lowe’s has recently recognized opportuni-ties to expand interna-tionally and has plans to open five stores in Canada and two stores in Mexico • Because Lowe’s is not heavily concentrated in the western part of the United States, opening stores in this region is an opportunity • In recessionary times, above average custom-er service is a competi-tive advantage to any company. By educating their employees, Lowe’s has the opportunity to improve their service and the customer’s experience. • Promoting energy-efficient products may attract more environ-mentally-conscious customers

• The instability of the current economy - international relations with Mexico consider-ing our expansion into their borders

• Competition of small, locally owned business-es that has emotional ties with their consum-ers or consumers who are loyal to them

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

16|primary research

R esearch was conducted with ethnographies at two loca-tions: Champaign and Bloomington, Illinois. It was per-formed over a two-week period ranging from October

24 until November 4, 2009. Researchers observed on location in pairs and went twice to both Lowe’s and its main competitor, Home Depot. We wore normal college student attire (as both of our locations are located in campus towns) in order to blend in with the environment.

While in the store we used the “fly on the wall” strategy. This method was chosen in order to gain customer insight and par-ticular shopping habits. The researchers documented typical customer behavior, such as how often they asked questions, how many people were in a group, or how often they needed help. If they did need help, we noted how long it took to find an employee. All of our findings were qualitative data and some results were estimated. We also observed the type of customers that we saw in the stores. We documented general demographics such as age, race, and gender. We thought that this method of research was effective for our purposes because our presence had no effect on the consumers’ behaviors. Many times with interviews and surveys, subjects change their responses in order to please the interviewer, or they don’t understand the question, etc. Thus, our

results are natural and unbiased. We also wanted to avoid social desirability bias, because we could observe how people really acted rather than how they may have told us they act.

While observing customers was a very important part of our research, we also wanted to see other differences in the physi-cal stores. We looked at geographical locations, store layouts, advertising within the store, and overall shopping experience. Our ethnography methods gave us the opportunity to see the store as a customer does. We thought that a guided tour would have given us a completely different experience.

It was very important for us to observe in both Lowe’s and Home Depot. Being the two largest home improvement stores in their category, we wanted to be able to understand the similarities and differences between them. By understanding these unique characteristics, we are able to more accurately determine how to reach our target markets for our brand. We also chose to go to two different cities in order to see if there was any difference in the communities shopping at the stores.

Finally, we chose to conduct our observations on both weekdays and weekends. We wanted to see if the consumer demographics and traffic patterns differed depending on the day of week.

ourresearch

Primary Research & Audience AnalysisPART 2

17|primary research

Early Squatters Our primary target market is comprised of young, educated, and employed new homeowners, who we call “Early Squatters.” This group is between 25 and 34 years old and has income levels categorized as middle- to upper-middle class. According to the U.S. Census in 2008, the median income for Americans in this age group was $29,484. The 2008 U.S. census estimated that this age sector comprises 14% of the entire population (total of 39,868,000 citizens). About 47% of this segment owns homes (U.S. Census

Bureau, 2008). These consumers may be generalized as a “Generation Y” adult cohort and were born between 1974 and 1984. They share similar values and life-styles and are sometimes referred to as “Echo Boomers.” They are technologically comfortable and reliant on the internet to discover information, make purchasing decisions, and interact socially. They also live in media-saturated worlds and spend large amounts of time consuming media. These young adults are career driven as a result of the economic inconsistency they

have experienced. Financial security and success are among the priorities of these new homeowners who are more concerned with having fiscal power than their parents or grandparents were (Tharp, 301).

We chose to target adults 25 to 34 because the brand loyalty of new homeowners may not yet be established. Inexperienced, independent homeowners are highly impressionable and may become brand loyal within the first few years of ownership.

PRIMARYtarget audience

Sarah is a 27-year-old financial analyst who graduated from the University of Wiscon-sin-Madison in 2004 with a Bachelor’s degree in Finance. She recently moved out of a small condo in the heart of Chicago’s financial district, married her long-term boyfriend Brian, and together purchased an unfurnished, three bedroom/two and a half bathroom house in Naperville, one of Chicago’s thriving suburbs.

On weekdays, Sarah wakes up in time to shower, get ready, grab breakfast, and be out the door to catch the 6:00 A.M. train to Chicago. During the thirty-five minute ride,

she is likely to either listen to her iPod Touch or flip though the latest edition of Self Magazine. Upon settling at her desk, Sarah skims though the online news

sites, particularly the New York Times and Chicago Tribune. Her day is often packed with meetings, but when she is at her computer working on proj-ects she is likely to be streaming radio from Chicago’s Adult Contemporary station 105.9, The Fresh. When she has time to leave the office for a lunch

break, Sarah enjoys meeting up with friends who work in close proximity. At 6:00 P.M., Sarah tries to leave work and catch the 6:50 P.M. train out of

Union Station. On her commute back to Naperville she listens to music while preparing herself for the next day.

When Sarah finally returns home it is already 7:15 P.M. She and Brian switch off cooking dinner, which is usually quick and requires little preparation. Sometimes they decide to eat at a restaurant in Naperville’s downtown area where there are lot of other young adults also dine out. Together they enjoy watching television shows like CSI, 30 Rock, Dancing with the Stars, and The Office either live or through their DVR. Sarah also enjoys checking her Facebook (which is restricted at work) and sending personal emails to family and friends.

Sarah would best fit into the PRIZM categorization “Up-and-Comers” who are 25 to 44-years-old without kids. “Up-and-Comers” are college graduates with professional careers earning a median income of $49,787, which is significantly higher than the average (PRIZM Market Segmentation).

A Day in the Life ofSarah Johnson, an Early Squatter

18|primary research

The Realized We have named our second-ary target audience the “Realized,” because they had dreams when coming to America and were lucky enough to live them out. Our audience is Hispanic, lives in the upper-middle class, and has disposable income. They have immigrated to the United States and have become successful here, and are likely to have children and have started a family. They belong to the PRIZM group “American Dreams,” in which the residents live in multilingual neighborhoods. Most of the Hispanic adults here are middle aged, and their kids live in the comforts of upper middle class. The Hispanics here are mostly homeowners and often have families. The median household income for the group is $55,497, compared to the median income of all Hispanic households of $38,679. They shop at stores like Old Navy, they read Latina Magazine, watch Telefutura, and they may own a Toyota. Most of these individuals are college edu-cated (claritas.com).

The Realized are fairly acculturated into the US life but still have deep roots in their His-panic culture and heritage. While they are almost always fluent in English, they also look to Spanish resources and still interact with media where the Spanish language is primarily spoken. Hispanics also tend to find Spanish ads more effective and memo-rable than English ads (Nielsen, Consumer Insights), although this might be different within our specific target audience that is more acculturated.

Overall, there is an estimated 46.9 mil-lion number of Hispanics in the United States, making them the largest minority. Between July of 2007-2008 Hispanics were the fastest growing minority group as well. There was 1.6 million Hispanic-owned busi-nesses in 2002, and, based on the rate of growth, the number is likely to be signifi-cantly higher now. In that same year, 43% of those firms operated in construction (US Census).

Most importantly, the Realized are hom-eowners. Lowe’s is currently expand-ing their stores to Mexico (http://www.lowes.com/lowes2/AboutLowes/Mexico/Mexico_en.html), and now would be an excellent time to also expand our audience to Hispanics here as well. While most of the people in our audience have accultur-ated to the US culture, they still heavily empathize with other Hispanic Americans and Hispanics in their home country, and as such will respond positively to well-executed Hispanic-targeted media. And because Hispanics tend to use word-of-mouth frequently, positive associations with Lowe’s have the potential to spread among the group. Hispanics are a quickly-growing market (Faura 5), and as of now are largely ignored in home improvement store marketing. Here we are presented with a great opportunity that we must act upon.

SECONDARYtarget audience

Roberto Cisneros is a 35-year-old male living in Aurora, Illinois. Although Roberto is originally from Mexico City, his family moved to Chicago when he was very young. His grandmother and many of his cousins are still living in Mexico, and he tries to visit them once a year. Roberto speaks English and Spanish fluently. He attended the Illinois State University, where he studied to become a Spanish teacher for high school students. Roberto is married and has two children. His wife Alejandra is from Monterrey, Mexico and also has family still living in Mexico, along with relatives in Chicago. Alejandra did not go to college, and she works at the nearby hospital as a receptionist. The Cisneros children attend the public schools in the area, and they speak mainly Spanish in the home with their family.

On a normal day Roberto goes to school around 7:30 am. He drives the 20 minutes to school while listening to Radio Unica. At school he has a full schedule and teaches all levels of Spanish. At 3:30 he attends the school’s soccer practice, as he is the Varsity Assistant Coach. Roberto is a huge soccer fan, and loves to help the kids learn more about the fundamentals of the game. It reminds him of playing with his cousins in Mexico City as a kid. When he returns home, Alejandra is cooking fajitas con arroz. The family sits down for a nice meal (after saying grace) and talks about their day. After dinner, Roberto and Alejandra watch CSI and then they tuck in the children for bed.

Roberto and his family still are very involved in Mexican culture, and they celebrate many native holidays. They are devout Catholics and attend mass every Sunday at their local church, where the priest speaks Spanish. They socialize with their Span-ish speaking friends, but they are also friendly with the English speaking parents of their two children. Alejandra will usually read Latina magazine in bed, while Roberto checks his email and the latest Mexican Fútbol Standings.

The Cisneros’ live in a home that has some wear and tear. However, Roberto is fairly good with his hands and his brother in law, Jamie, works in construction. There are three bedrooms and one and a half baths. Roberto and Jamie are currently in the process of redoing the kitchen. The appliances are old and faulty, and the cabinets are extremely out of fashion.

A Day in the Life of Roberto Cisneros, a “Realized”

19|primary research

Location The two stores are located less than a mile from each other in Champaign. Both are located off of Prospect Avenue, one of the busier streets in Cham-paign. While there are many other retail stores in the area, Lowe’s location is better because it is located right in the middle of these retail stores and also right in the middle of a lot of restaurants. This has potential to generate higher traffic and more visibility.

Layout and Product Selection When we went into the two different stores, we each noticed that there were a lot of similarities between the two. One of the first things we noticed was that at both, the flooring and lighting were very similar. Both had gray floors and industrial lighting, which would be expected at a home improvement store. Also, they both had a return desk and a customer service desk located near the fronts of the stores. Lowe’s seemed larger, as we counted around 51 aisles compared to 32 at Home Depot. In addition, the aisles also seemed bigger and more organized at Lowe’s. Home Depot had eye-catching, orange-colored items at the beginning of the aisles as well as miscellaneous orange banners throughout the store. The reason we noticed this is because Home Depot’s logo is orange, so all the orange products matched well with it. One other interesting observa-tion we noticed was that Lowe’s had a lot more cash registers, suggesting an easier check-out process and possibly shorter, more efficient lines.

Both stores offered standard home improvement products and carried major name brand products. For example, at Lowe’s we picked out a GE dishwasher and a GE microwave, and copied down the product information and proceeded to check whether or not Home Depot carried the same products at the same prices. Home Depot did carry the same products and the prices were very similar at both places. Lowe’s also

boasts that they will match all competitors’ prices. We concluded that it seemed like Lowe’s had a larger selec-tion of products and also that their shelves were more stocked. The appliance department at Lowe’s was one area in particular that Lowe’s seemed to carry a greater number of different products. Prior to our observa-tions we were under the impression that Lowe’s had a larger product selection. Upon gathering our research, we are confident that Lowe’s does indeed have more heavily stocked shelves with a larger, easier-to-find selection of products.

Customer Service and Workers Immediately after walking into the Lowe’s store an employee greeted us with “hello, how are you?” For the most part no one really came up and asked if we needed help, especially when we were just standing observing

other customers. However, there were a couple times at Home Depot, when walking by a worker, we got stopped and asked if we needed help finding anything. This was different from Lowe’s where we usually only got a smile or a hello from a worker. There seemed to be plenty of workers available at both stores so that if you did need help you could easily find an employee. When we went to Lowe’s on a weekend, it was more difficult to find a worker due to an increased amount of shoppers. The age of the workers varied, but Lowe’s had the widest range that we saw. Some employees appeared to be teenagers while others looked to be in their 60s or 70s. For the most part the workers were white males. We estimated that there were about 65% male workers and 35% female workers. We did not, however, see any Hispanic workers, which, while we found slightly disappointing, makes sense consider-ing the ethnic makeup of the area. On neither trip did we see any workers who looked Hispanic and we are unsure of the number of Spanish-speaking workers.

ethnographyresults

20|primary research

Champaign, IL

Bloomington, IL

Weekend vs. Weekday and Customers There were some major differences between the observations we made on the weekend compared to the weekday. First, the crowd was much larger on the weekend for both places. We went on a Saturday morning and the parking lots of both places were at least half full. On the other hand, when we went on a Tuesday night, the two parking lots were close to empty. Also, on the weekend there was a lot more staff at both places because of the larger crowds. This made it a bit harder to locate a worker. We did note that on both the weekday and weekend, the Lowe’s parking lot had more cars than The Home Depot’s. After observing the parking lot we went into the store to see what kind of customers were at the two different stores. For the most part both stores had very similar customers. On Saturday we saw what looked to be retired couples, older couples, middle-aged couples, young couples, men and women who appeared to be there by themselves, and even a handful of teenagers. Most of the couples didn’t have children with them. The customers on the weekday were not as varied, mainly because there were very few customers at the two stores. Home Depot, during both visits, probably only had ten cus-tomers, while Lowe’s probably had around twenty-five. Most looked to be single males but we did notice one young couple at Lowe’s that looked like they were accompanied by one of their parents. We only saw one family with kids at Lowe’s and none at Home Depot. During the week we only saw a limited number of different races; at Lowe’s we saw one African American woman and one Hispanic man. The weekend was more diverse but for the most part it was mainly white men and women.

Bloomington vs Champaign As expected, the layout of the stores was very similar in Bloomington and Champaign. However, one major issue was the location of the two different stores in Blooming-ton. Lowe’s is located in the middle of Bloomington in a very good location, while Home Depot is located farther out of the city and much further away from where most people live. Also, it is located right across from a new Menards, which gives it a lot more compe-tition then Lowe’s has. The customers we noticed in Bloomington at both stores were very similar, probably because Champaign and Bloomington are similar in size, Champaign around 78,000 and Bloomington 73,000. Also, they are similar in median income, with Champaign having a median income of $39,000 and Bloomington $55,000. Their ethnic makeups are similar as well, with Champaign being around 5% Hispanic and Bloomington being around 4 (USCen-sus.com)

Overall Experience Overall, we saw a lot of similarities between the two stores with regards to size, product selection, and the custom-ers that each stores attracted. We were a little disappointed that we didn’t see more young couples because that is our target market. On the other hand, this gives us reason to implement our campaign and create an effective strategy that attracts them. We saw very few Hispanics at the store, which we expected because of the small percentage of Hispanics that make up this area.

21|media plan

television

online

nontraditional

billboard/transit

print

radio

T media mix we designed incorporates many different mediums to together create a successful campaign. We took into consideration the age group and media prefer-

ences of our primary and secondary target audiences while creat-ing this plan. We provide tentative media schedules, a breakdown of the $35 million budget, and a discussion of measurement and evaluation to determine the effectiveness of our plan.

Media Objectives The following represent the media objec-tives associated with implementing our media mix:

• Increase Lowe’s brand awareness among both our primary and secondary target audiences

• Build brand loyalty, especially among new homeowners

• Increase reach, especially among the Hispanic market

• Utilize an efficient media mix to continuously reach our market throughout the year

• Distinguish a separate brand identity from other stores in the industry

mediamix

Media PlanPART 3

22|media plan

print

Magazine Audience Total Paid and Verified Circulation

Total Aud. Total Readers in Primary Target

Notes

People A25-34 3,615,858 43,528,000 8,966,000 Median HHI: $67,129

Self Women, Media age 35 1,516,075 6,078,000 n/a Median HHI: $85,671

BusinessWeek small business owners 921,423 n/a n/a targets professional adults; average household income: $95,306

Maxim Men, 25-34 2,537,130 12,969,000 4,943,000 median household income: $69,381

Sports Illustrated primarily men 3,252,298 n/a n/a average income: $60,913

Total Readers in Secondary Target

People en Español F: 63%, M: 37%; median age 34 567,583 6,175,000 6,175,000 43% of readers own homes; Average HH size: 4.2; Median HHI: $40,047

Hispanic ave age-38, ave HHI: $98,500 183,931 1,449,000 1,449,000 average HHI: $98,500; 65% own homes

Nearly half of all home improvers (45%) cited magazines as their primary source of motivation for beginning a new home improve-ment project. In addition, magazines perform best overall at influencing consumers to start a search for merchandise online. 39% of adults they surveyed reported that a magazine prompted them to search online for merchandise (Magazines: The Medium of Action, a Comprehensive Guide and Handbook, 2009).

Secondary Target Market Hispanics report magazines to be the medium that provides the most practical advice and is best at informing them about new products or services.

Top 10 Titles read by Hispanics/Latinos People, People en Espa-ñol, National Geographic, Cosmopolitan, Sports Illustrated, Latina, Better Homes & Gardens, Selecciones, Maxim, Readers’ Digest (MRI, Fall 2006).

Top Hispanic/Latino Titles by Circulation Comida Y Familia (936,000), People en Español (469,000), Latina (400,000), Selecciones (355,000), Hispanic (290,000), TV Y Novelas (176,000), Vanidades (155,000) (Audit Bureau of Circulations, 2006).

Primary Target Market According to a research report on www.magazine.org, adults under 35 years old read more issues per month than adults who are over 35. Therefore, younger adults are more likely to be in the top quintile of magazine readership. The median number of magazines read by adults 25-34 in the past month was 7.1. Adults 25-34 are 25% more likely than the general population to read a magazine (www.magazine.org).

Magazines that target our primary market: People, Self, Health, In Style, BusinessWeek, Details, Maxim, Sports Illustrated.

magazine selection

magazine buyMagazine Full Page, 1x Half Page, 1x Full: Disc. Half Disc. Size # Issues $ per Issue Added Value

People $266,780 $256,109 Full 4 $1,024,435 editorial content

$180,110 $172,906 Half 4 $691,622 editorial content

Self $141,480 $95,500 $135,821 $91,680 Full 4 $543,283 editorial content

BusinessWeek $112,200 $70,200 $107,712 $67,392 Half 4 $269,568 editorial content

Maxim $241,756 $145,056 $232,086 $139,254 Full 4 $928,343 editorial content

People en Español $67,000 $43,550 $64,320 $41,808 Full 5 $321,600 editorial content

Sports Illustrated $336,000 $322,560 Full 3 $662,976 Full page in SI Homeowner edition published on Apr 6

$230,200 $220,992 Half 3 $662,976

Hispanic $21,750 $13,594 $20,880 $13,050 Half 5 $65,251 editorial content

TOTAL 16 $5,170,055

% of BUDGET 14.77%

The above pricing was taken from each of the magazine’s current media kits. We assumed about a 4% discount for advertising within multiple issues during the year.In addition, we will try to negotiate any Added Value available.

23|media plan

national tv buy

television

local tv buy

tv summary

Program Netwk Rtg Viewers $/spot spots/wk CPP CPM tot cost/wk # wks tot. spots total run cost

Dancing With the Stars ABC 11.2 17,622,000 $198,647 1 $17,736.34 $11.27 $198,647 7 7 $1,390,529

CSI CBS 10.9 17,380,000 $198,647 1 $18,224.50 $11.43 $198,647 7 7 $1,390,529

The Mentalist CBS 10.4 16,169,000 $198,647 1 $19,100.67 $12.29 $198,647 7 7 $1,390,529

NBC Sun. Night Football NBC 13.7 22,392,000 $339,700 1 $24,795.62 $15.17 $339,700 7 7 $2,377,900

Net TV-L Nite/L News - - - $20,843 3 - - $62,529 25 75 $1,563,225

TOTALS: $956,484 7 - - $998,170 53 103 $8,112,712

Rates based off article: http://adage.com/article?article_id=139923 and handout given in lecture by Professor Nelson

Market Station Owner Channel ID Daypart $/spot sp/wk Total $/wk # wks tot. spts total run cost

Los Angeles KEVA-CH52 NBC Universal Telemundo Primetime $300 6 $1,800 25 150 $45,000

New York WNJU-CH47 NBC Universal Telemundo Primetime $300 6 $1,800 25 150 $45,000

Miami-Ft. Lauderdale WSCV-CH51 NBC Universal Telemundo Primetime $250 6 $1,500 25 150 $37,500

Houston KTMD-CH47 NBC Universal Telemundo Primetime $250 6 $1,500 25 150 $37,500

Chicago WSNS-CH44 NBC Universal Telemundo Primetime $250 6 $1,500 25 150 $37,500

Dallas-Ft. Worth KXTX-CH39 NBC Universal Telemundo Primetime $200 6 $1,200 25 150 $30,000

San Antonio KDVA-CH60 NBC Universal Telemundo Primetime $150 6 $900 25 150 $22,500

Phoenix KTAZ-CH39 NBC Universal Telemundo Primetime $150 6 $900 25 150 $22,500

San Francisco KSTS-CH48 NBC Universal Telemundo Primetime $150 6 $900 25 150 $22,500

TOTALS: $2,000 54 $12,000 225 1350 $300,000

Total Spots Total Cost

Hispanic Spots 1,350 $300,000

National Spots 103 $7,485,128

Annual Cost $8,112,712

% of Budget 23.18%

Rates based off article: http://adage.com/article?article_id=139923

Hispanic Television Television is a very important medium for the Hispanic culture and a has the potential to reach many Hispanic consumers. Nielsen estimates that for the 2009-2010 TV year, the Hispanic market will be the fastest growing TV audience in America. For this reason, television is an important medium to use when trying to reach our secondary market. In order to keep advertising expenses down, we will not use a national campaign that is specifically directed toward Hispanic consumers. Rather, we will focus on areas labeled as High Density Hispanic Areas (HDHA) and place spots in the top nine largest Hispanic markets, as reported by a 2006 Synovate U.S. Diversity Markets Report: Los Angeles, New York, Miami, Chicago, Houston, San Francisco, Dallas/Fort Worth, Phoenix, and San Antonio.

Choosing Format and Day-Part We will primarily place local spot commercials during prime-time programs on Telemundo, a primarily Spanish-speaking network. Because exact costs are unknown for placing local spots in the top nine Hispanic markets,

we will estimate an allocation of $300,000 to place spots on the nine Telemundo stations for 25 weeks. Assuming costs per spot are on average between $200 and $300 per spot, the following chart summarizes our local television buys that will reach our secondary target market.

National Television The U.S. Census projects that in 2010 there will be 83,095,000 Americans between the ages of 25 and 44. Because of the large size of our target market, we will advertise nationally on some of the highest rated shows in America.

Choosing Format and Day-part The shows that we will advertise on a national level are: Dancing with the Stars, CSI, The Mentalist, and NBC Sunday Night Football because each is currently listed in the top 10 of the highest rated shows in broadcast television (Nielsen, 2009). We are also going to advertise on national late night news because 50% of our primary target market still reports getting their news via television (people-press.org).

24|media plan

radio

Hispanic Radio Hispanic consumers have historically been shown to utilize radio as one of their main consumptions of media. According to an Arbitron report, “radio is a valued and entrenched part of Hispanic consumers’ lives. From dawn to dusk, at home or away from home—radio is a primary media platform for this ethnic group” (Hispanic Radio Today: How America Listens to Radio, 2008). For this reason, we have chosen to place a series of local radio spots with an emphasis on targeting our Hispanic consumers in the following markets: Los Angeles, New York, Miami, Chicago, Houston, San Francisco, Dallas/Fort Worth, Phoenix, and San Anto-nio. These nine markets represent the top Hispanic/Latino Markets as ranked by the Synovate U.S. Diversity Markets Report (2006). We chose to place fewer ads on multiple stations because Hispanics tend to have higher ratings for Time Spent Lis-tening (TSL). In 2007, Arbitron reported that Hispanics that listen to Spanish Con-temporary ages 25-54 have the highest TSL among other Hispanic age groups. In other words, because TSL is high, less spots need to be placed to reach a given amount of the audience.

Choosing Format & Day-part (Secondary Target Market) Of Hispanic adults ages 25-34, 96.4% of Hispanic men and 97.1% of Hispanic women report listening to the radio at least once during an average week. The 2007 Arbitron reports showed that Hispanics 25-34 compose the larg-est percentage of Spanish Contemporary listeners. 27.4% of Hispanics that listen to Spanish Contemporary stations fall within this segment. The highest cume ratings are Monday to Friday 6am to 10am. In addition, 49.1% of Spanish Contempo-rary listening is done at home. We plan to place spots on this format during the morning drive, daytime, and nighttime day-parts.

Other formats we chose to buy local spots on are Spanish Adult Hits and Spanish News/Talk. We based this deci-sion on the formats that Arbitron rated most highly for Hispanics 25-34 with regards to National cume, Number of Weekly Listeners, TSL, and other demo-graphic characteristics like income and education. We chose Spanish News/Talk because, although it has a lower cume rating, it represents a higher concentra-

tion of our target audience of educated, middle-class Hispanics who may have the finances available for home improvement projects. The above table summarizes our rationale for choosing these three Span-ish radio formats.

National Radio In 2007, Arbitron esti-mated the number of A25-35 listeners to be a total of 23,359,300.

Choosing Format & Day-part (Primary Target Market) Adults 25-34 are most likely to listen to the following formats: Adult Contemporary, Hot AC or Adult Contemporary Hit Radio (CHR), Adult Alternative, Album-Oriented Rock, Classic Rock, and Country. We will primarily place spots during daytime and early news. We will implement a national radio buy based on the formats Adult Contemporary and Adult CHR.

Format National Cume

%25-34 Total 25-34 weekly listeners

Weekly TSL (hrs:min)

Audience Notes

Spanish Contemporary 7,300,500 27.40% 2,00,337 10:15 36.8% are graduated or have some college

Spanish Adult Hits 3,933,000 26.80% 1,054,044 10:45 21% are graduated or have some college

Spanish News/Talk 1,759,900 10.9% 19,182,910 9:15 56% earn between $25k and $75k; 35.8% are graduate or have some college

25|media plan

Market Station Daypart Format Length #/wk spot $ AQH Rtg1 GRP CPP $2 Tot. Cost

Los Angeles KLVE-FM M-F 6a-10a Spanish Contemporary :30 4 $156 3.9 15.6 $40.00 $624

M-F daytime Spanish Contemporary :30 3 $156 3.9 11.7 $40.00 $468

KTNQ-AM M-F 6a-10a Spanish News/Talk :30 3 $24 0.6 1.8 $40.00 $72

M-F daytime Spanish News/Talk :30 3 $24 0.6 1.8 $40.00 $72

KLYY-FM M-F 6a-10a Spanish Adult Hits :30 6 $64 1.6 9.6 $40.00 $384

New York WPAT-FM M-F 6a-10a Spanish Contemporary :30 3 $84 2.1 6.3 $40.00 $252


Miami WRMA-FM M-F 6a-10a Spanish Contemporary :30 3 $84 2.1 6.3 $40.00 $252


WMGE-FM M-F daytime Spanish Contemporary :30 6 $180 4.5 27 $40.00 $1,080

Chicago WPPN-FM M-F 6a-10a Spanish Contemporary :30 3 $68 1.7 5.1 $40.00 $204


WVIV-FM M-F 6a-10a Spanish Adult Hits :30 5 $96 2.4 12 $40.00 $480

Houston KAMA-FM M-F daytime Spanish Contemporary :30 6 $88 2.2 13.2 $40.00 $528

KLOL-FM M-F 6a-10a Spanish Contemporary :30 6 $136 3.4 20.4 $40.00 $816

San Francisco KVVF-FM M-F 6a-10a Spanish Contemporary :30 3 $52 1.3 3.9 $40.00 $156


KBRG-FM M-F 6a-10a Spanish Adult Hits :30 5 $68 1.7 8.5 $40.00 $340

Dallas/Ft Worth KESS-FM M-F 6a-10a Spanish Contemporary :30 6 $60 1.5 9 $40.00 $360

KMVK-FM M-F daytime Spanish Contemporary :30 5 $88 2.2 11 $40.00 $440

Phoenix KVVA-FM M-F 6a-10a Spanish Adult Hits :30 6 $76 1.9 11.4 $40.00 $456

San Antonio KGSX-FM M-F daytime Spanish Contemporary :30 6 $64 1.6 9.6 $40.00 $384

95 $1,846 46.4 207.1 $880 $8,284

Market Station Daypart Format Length #/wk spot $ 1 Tot. Cost

National National Daytime Adult Contemporary :60 3 $4,105 $12,315

National National Evening Drive Adult Contemporary :60 3 $3,807 $11,421

National National Daytime Adult CHR :60 3 $4,105 $12,315

National National Evening Drive Adult CHR :60 3 $3,807 $11,421

12 $15,824 $47,472

Total Spots Total Weekly Cost Total Cost 48 Weeks Total Cost 25 Weeks

Hispanic Spot 95 $8,284 $331,360

National Spots 12 $47,472 $1,186,800

TOTAL RADIO SPOTS 107

ANNUAL COST $1,518,160

% of BUDGET 4.338%

1 AQH Ratings are based off Arbitron's most recent data collection for each market2 to estimate budget and costs, we determined that each station was only worth a maximum CPP of $40

spot radio buy

national radio buy

radio summary

1 Pricing based on handout given by Professor Nelson

26|media plan

Billboards/TransitWe chose to use billboards (including mobile billboards) and mass transit advertisements for our media plan because they are viewed by a large number of people each day. Both of our target markets use transportation, so in some cases we can be reaching both markets at the same time. The “Realized” and “Early Squatters” drive to work and can be found using public transportation near their homes and work, thus, saving us money and still getting our brand out there. The increased frequency will also build our reach over time and sustain our brand name and image awareness. From our research, we discovered that many large Hispanic populations are centered in big cities where public transportation is everywhere. Having advertisements visible through the windows of subways, buses, and taxis would be an obvious choice in a city for the “Real-ized.” Transit shelter displays have outstanding visibility and quality even at night with the proper lighting (clearchanneloutdoor.com). Bus and transit advertisements will allow Lowe’s to penetrate every part of the community with dynamic displays. We hope to use fullwraps on buses to reach our consumers. Fullwraps allow us to use the entire surface of the bus, including windows, and demand attention. Fullwraps also deliver high profile exposure near our point-of-purchase. Buses with our advertisements on them will be circulating near Lowe’s store locations. Fullwraps have been proven to generate quick recall, which establishes brand awareness for Lowe’s (clearchanneloutdoor.com). Billboards can also reach our “Early Squatters” market on their way to work. The morning commute provides opportunities to present our brand.

We want to create a large reach for our brand. With so much daily traffic on freeways and train stations, we will surely be able to create Lowe’s awareness in locations that our targets frequent. Although exposure time is often very low with Out-of-home media, consumers driving to work will see these ads everyday, which will give us a high frequency, making up for the low exposure time. Over time, they will see our advertisements repeatedly which will strengthen Lowe’s recognition. Another positive effect of mass transit advertisements is that they are always moving. When our ads move from station to station we can reach people walking out on the street near the stations, eating at restaurants, out-doors near a bus line, etc. This way, even people who do not take public transportation will still be exposed to our campaigns. Our Out-of-Home (OOH) plan will require local buys primarily in the same nine cities that we are placing our spot radio and television advertisements (clearchanneloutdoor.com).

Another OOH initiative we will implement is building bus shelters. They will be built in cities and surrounding large suburbs and will be made out of two-by-fours-and roofing materials (shingles). The building will be really shabby, and will sport a message like “You’re going to need some help.” This idea is designed to get into the head of those people transitioning from urban life of renting to one where they own a home. We want to get in their head that Lowe’s is the place to go for all the needs of a new home. The goal is to leave a lasting impression that Lowe’s is a brand that is hip and wanting to help new homeowners.

27|media plan

online/digitalUsing the online medium is very impor-tant to the success of our campaign. Because of how data are collected on the internet, we are able to do an excellent job of targeting where our advertising is spent to maximize exposure to our target markets. Current studies show that online video websites are still very prevalent to our campaign, as 46% of adult users are active on them. In the 18-29 year old seg-ment, 90% of the individuals use video-sharing sites, and 67% of adults aged 30-49 use it. Based on this, if you were to isolate our target audience (25-34), it will probably be somewhere between the two, around 80% (Pew Internet). This makes advertising on YouTube and Hulu very important, ensuring especially that our ads appear when searching for “Do it yourself” videos or TV shows typically associated with our primary age group. To show why advertising on these video websites is becoming increasingly impor-tant, we can take a look at Hulu, where around 24 million people have visited the site, and more than 10 million people

have actually signed up for the service. Currently at least 300,000 people visit the site every day (Google Ad Planner). Lowe’s already has its own YouTube channel with do-it-yourself projects. Therefore, this must be integrated in our campaign so people will find it through means other than just the main website.

In addition to our advertising, we are also going to use the digital medium for other purposes. To continue our strategy of “having Lowe’s help you,” we are going to have an online forum. This is where people can ask how-to questions, and knowledgeable Lowe’s employees will be able to respond. We will also encourage other users of the forum to give advice, creating a sense of community. There will be both Spanish and English forums that Lowe’s employees will be present for. This forum will be advertised in store so people know if its existence. From there, word-of-mouth will help increase its spread, as people will naturally have questions they want answers for. As a supplement to the forum we will also

host Webinars, which will be tied to our in-store classes mentioned in our non-traditional methods. During the Webinars people will be able to ask specific ques-tions live if they don’t understand some-thing or want more information. Once the webinar is finished, there will be specific threads in the forums, where people can ask questions about what was discussed or go into greater detail concerning the methods used.

Lowe’s is already doing a good job with search engine optimization. Currently, Lowe’s is the first result when searching Google for “hardware,” although if one searches for “hardware store” it comes up second or third, with Ace Hardware being the first. It is quite probable that Ace has invested a significant amount into making sure that that specific search term made them come up first, sacrificing their position for other terms. Lowe’s is also paying for ad space on the search engines, as doing the same search will also link to their website in the paid section.

28|media plan

nontraditionalmediaEvents: Host Picnics To address our secondary Hispanic market we have decided to hold Cinco de Mayo picnics in the Southwest where Lowe’s stores are growing and Hispanic populations are high. Event teams will use Lowe’s grills, tables, table clothes, and other outdoor items. This will not only show that Lowe’s is aware and friendly toward the Hispanic community, but it will also allow the store to showcase its “outdoor living” products, which aren’t always top-of-mind with Lowe’s, but are a large component of their store.

Events: Landscaping Displays Using Lowe’s lawn and garden-ing products, multiple event teams will hit several city and large suburban parks in the spring of 2010. The focus will be on the mid-eastern U.S. where stores have the highest population density. Using Lowe’s products, teams will clean up parks, create brand new displays with flowers, build pavilions, and install new benches. Lowe’s teams will work with members of the community instruct-ing them how to build, design, and use a variety of outdoor skills. This event will be advertised simply through people observing Lowe’s helping the community. When Lowe’s picks a town and its parks, Lowe’s branding will take over: vehicles, signs, branded equipment, announcements, t-shirts for volunteers, etc. These events will self-generate a buzz and positive public relations sup-plemented by news articles reporting about Lowe’s rebuilding the community. The stories and events will encourage regular citizens to take part in the work. The idea is to get consumers to interact with the products while doing charitable work and building a better home community. After some buzz is generated, Lowe’s will create an avenue on their website where towns and cities can appeal to Lowe’s to come and fix up their city parks. Cities that boast the most volunteers and need will be chosen for further events. Each month a different city will be chosen for a Lowe’s renovation. This all revolves around the idea of getting people involved and how with a little help and instruction from Lowe’s people can get a lot accomplished.

Events: Lowe’s Classes Lowe’s will host weekly or bimonthly semi-nars both in-store and on the web (Webinars mentioned in online section). These classes will help provide our target consumer with the skills they need to do remodeling, with a little help from Lowe’s. Every class will focus on learning skills: dry-walling, elec-tricity, tiling, painting, installing cabinets, flooring, and all things that homeowners can do on their own without the help of an independent contractor. This will enable consumers to do more and will establish a relationship between Lowe’s and individuals. This ties in with our “big idea” that our target doesn’t know what they are doing, but with a little help from Lowe’s, they will be able to complete any project. Shortly after they will be making regular trips to Lowe’s as they repair and renovate their homes.

Sponsorships: Soccer Lowe’s will sponsor Chivas soccer team, an MLS team in LA County. This sponsorship will function in two ways: One, to announce the expansion of Lowe’s stores in Mexico, and two, to expand the relationship with Hispanics and the growing southwest segment of the Lowe’s chain.

Mobile: Lowe’s App What is wearing away my siding? What do I need to fight this rust? Is the bolt too small? Any household questions are a picture and text away from being answered.

Whenever you get a question you can’t answer, just “lowesit” by taking a picture with the app and text your question and picture to Lowe’s support team. They will get back with advice within one day. Again, this fits right in with the Lowe’s “helping you do it yourself” philosophy.

Direct Mail: Phrase book Lowe’s will also send out (in addition to having free copies in stores) a Spanish-to-English/English-to-Spanish hardware phrase book. It will be a helpful tool that will encourage Hispanics to feel more comfortable and welcome at Lowe’s. A digital copy of this phrasebook could also be made available through an iPhone or Blackberry app, as well as a PDF available on the website.

Direct Mail: Gift Pack On their thirtieth birthdays, men will receive a tool belt filled with various items for projects. Relatively inexpen-sive, Lowe’s branded items like tape measurers, levels, carpenter pencils, and box cutters will be mailed as birthday gifts with a little message from Lowe’s saying something like, “Happy birthday, and welcome to the point in adulthood where things start to need fixing. We’ll help you get started on all the projects you are about to begin.” We want to try and establish a relationship through a direct mail piece that will actually be useful.

Coasters Putting drink coasters in younger city bars with lines like: “Don’t drink and build” will function similarly to the bus shelters. We want to get inside the head of prospective new home owners and leave favorable tone so that when they do move, and need to remodel, or fix something, they think Lowe’s.

29|media plan

Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec

PRINT

People

Self

BusinessWeek

Maxim

People en Espanol

Sports Illustrated

Hispanic

TELEVISION

Dancing with the Stars

The Mentalist

CSI

Net TV-L Night/L News

Spot TV in Hispanic Markets

RADIO

Spot (48 weeks)

National (25 weeks)

OUT-OF-HOME

Billboards

Mass Transit

DIGITAL

Online Advertising

NON-TRADITIONAL

Host Picnics

Landscaping Displays

Lowe’s Classes

HGTV Sponsorships

Soccer Sponsorship

Lowesit App

Direct Mail

Bus Shelters

Coasters

mediascheduleJanuary 1, 2010 to December 31, 2010

30|media plan

budgetoverviewMedium % of Budget $ Amount

online 15% $5,250,000

nontraditional 25% $8,750,000

billboard/transit 15% $5,250,000

print 15% $5,250,000

radio 4.34% $1,518,300

tv 23.18% $8,113,000

MISC 2.48% $868,700

31|creative strategy

Competitors’ Advertising Lowe’s main competitor in the home improvement market is Home Depot, who uses many of the same forms of media to advertise. Their most

recognizable tagline is “You can do it, we can help.” Most of their advertising budget is used for TV and radio ads. They estimate $18 million for product and $31 million for placement of the two, respectively (homedepot.com). However, they do use other forms of advertising including online ads, billboards, and other out of home advertising. Also, Home Depot involves itself with the community as they help with and donate to many different charities. Home Depot uses sponsorship as well; they, like Lowe’s, sponsor a NASCAR racer and car.

The Home Depot has a Facebook group with 16,083 fans. The page is primarily consumer driven with different fans posting comments or questions and others responding to them. There are occasional promotions or sales listed. The page also pro-vides contact information and details about different workshops and community events The Home Depot is hosting (Facebook, November, 2009).

The Home Depot also has 16,132 followers on twitter. This page functions similar to the Facebook page with posts from customers and followers as well as information about Home Depot opportu-nities and events (Twitter, November 2009). In addition, The Home

Depot has a YouTube channel with 3,035 subscribers and 290,752 channel views. The channel hosts a combination of how-to videos as well as friendly greetings and community affairs (YouTube, November 2009).

Brand’s Advertising Lowe’s currently uses traditional advertising, but they also use many non-traditional forms of advertising. The majority of the advertising budget is spent on nationwide TV campaigns. Recent television ads feature NASCAR driver Jimmie Johnson, as well as a commercial with a voice over of Gene Hack-man speaking about home improvement. They also have online advertising, which include their two websites, Lowe’s.com and Lowe’sCreativeIdeas.com. They also advertise on Google and do some small amount of advertising on Hulu. Lowe’s is also involved in charities and donates millions of dollars each year to different organizations, such as Habitat for Humanity, by sending workers and supplies to those who need them. One of their most famous non-traditional advertisements is their sponsorship of NASCAR racecar and driver Jimmie Johnson, one of the best racers today. However, according to their 2008 Annual Report, Lowe’s is look-ing for ways to cut their advertisement costs. From 2006 to 2008 they have been able to cut their advertising expenses by $84 million (lowes.com).

Lowe’s has two “Pages” on Facebook: one is titled “Lowe’s Home

currentadvertising

Creative StrategyPART 4


Improvement” and has 81,498 fans. The other is titled “Lowe’s Creative Ideas” and has 15,180 fans. Both pages primarily serve as a way of connecting with Lowe’s customers on a personal level while advertising their sales and promotions. A recent post on Lowe’s Home Improvement reads, “Happy Thanksgiving from our family to yours. What better way to celebrate than AMAZING SUPER WEEKEND DEALS – www.lowes.com/blackfriday. Deals won’t last forever. Check back often as we add more deals though the weekend” (Facebook, November, 2009). Fans of this page appear to be relatively attentive to the different posts by the page admin-istrators as there are many “Likes This” notes and other comments.

The “Lowe’s Creative Ideas” Page attracts a smaller audience and is similar to the primary Lowe’s page. This page alerts custom-ers of in-store deals as well as offering various homeowner tips. One recent post, for example, says “Need a little extra space for your holiday parties? Free up kitchen space with this attractive and practical folding wine counter” (Facebook, November, 2009).

Lowe’s does not seem to have a presence on Twitter. Lowe’s does, however, have a YouTube channel titled “Lowe’s Solution Center” and has 2,587 subscribers and 459,148 channel views. Similar to The Home Depot channel, the Lowe’s channel is a mix of how-to videos and public relations efforts (YouTube, November 2009).


Who is our target?

Primary: Early Squatters• Males and females• 25-34• Middle to upper middle class

Secondary: The Realized• Hispanics

Where are we now in the mind of this person?

Our audience has heard of Lowe’s, but they aren’t necessarily shopping there. They either don’t know enough about repair to attempt doing it themselves, or they don’t have anything to repair, remodel, or add to their home.

Where is our competition in the mind of this person?

Home Depot is seen as a legitimate competitor. Home Depot is most likely viewed as the same as Lowe’s, or an even trade for Lowe’s. Menards, however, has a smaller store feel, has a smaller national presence and is perceived as “saving big money.”

Where would we like to be in the mind of this person?

We would like people to think Lowe’s is the hardware store where you not only get tools, but advice and help with your projects.

What is the consumer promise?

Your dad could fix anything, you can’t. We’ll help you fix up your home, whether it’s tips, direction, or translation.

What is the supporting evidence?

People in stores found Lowe’s employees to be very helpful.

What is the tone of voice for the advertising?

Helpful and welcoming. Lowe’s isn’t a store, it’s a community that establishes relationships with its consumers.

creativebrief


Creative Requirements Lowe’s has a series of graphic standards providing information for the use and application of their logo or brand name. This information ensures that a comprehensive and unified look is kept when materials are produced or distributed by Lowe’s. The goal of this is to maintain and increase brand awareness.

Lowe’s creative requirements outline the exact color and logo standards when cre-ating promotional materials. They specify seven different colors to use when discussing the following service segments: Plumbing, Business Maintenance, Repair/Model, Multi-Family Residential Maintenance, Landscap-ing, Electrician, and General/No-Specific Market.

Typographic and image standards are also set to ensure documents adhere to the Lowe’s brand image. In addition, their creative requirements specify that models should be portrayed as actual professionals who are realistically performing work that is associated with the target segment. Their clothing should not be brand new, yet not worn out or too dirty. Photography should be in full color and shot from dramatic angels with high-contrast lighting.

Brainstorming Creative Concepts

• You’re right. Don’t let some fancy designer tell you how your home should look. It’s your home. (weak)

• Your dad could fix anything, you can’t. We’ll help you fix up your home, whether it’s tips, direction, or translation. (strong) Webinars/classes

• The home is your space. Don’t let a plumber, carpenter, maid, whatever come into your space. It’s de-masculine, it’s de-feminine. Protect your home, by maintaining it.

• Target the techno/digitally savvy. You can fix a motherboard, but you can’t fix a broken chair. Computer hardware vs. real hardware.

Final Strategy We feel that the second strat-egy is the strongest and will resonate most with our consumers. It speaks to the differen-tiating point that Lowe’s is more helpful than other hardware stores. It also speaks to the insight of the target, who really doesn’t know what they are doing. They are not handy men, they are just men, or women of course. With Lowe’s they can accomplish a whole lot. Our entire campaign is about Lowe’s educating and interacting with consumers, showing them how they can fix, build, and design whatever they want, themselves. The campaign is one that enables and builds relationships. It fits with both our targets, building relationship through seminars and events with both targets and specifically rais-ing awareness and establishing a presence with our secondary audience.

Example: Coaster


If he taught you everything he knew, he wouldn’t have had time to learn it all.

Learn it at


37|creative strategyAprender a

Entre jar, pintar, y la reprimenda, no había mucho tiempo para enseñar.

38|references

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references

Golden Fox Media GroupLaboratory 31 • 810 S. Wright Street • Urbana, IL 61801

This Media Plan was devised solely for Lowe’s Corporation and was created and produced by the Golden Fox Media Group, a full service advertising agency based out of the University of Illinois Urbana–Champaign. Contributing members include Nick Ciffone, Franklin Kramer, Rose Osial, Christina Seiwert, Ryan Wahlheim under the direction of Professor Michelle Nelson.

©