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Home Depot, the market leader in one-stop shopping for home-improvement tools and materials, is discussed in this case. Home Depot targets many different groups of consumers such as the do-it-yourselfers, online and mobile customers, and small contractors. Home Depot conducts marketing research by collecting information about its consumers and using the data to improve brand loyalty. Based on the growing amount of do-it-yourselfers, Home Depot provides free how-to workshops and videos to help their consumers brush up on specific skills before starting a project. Home Depot also provides a loyalty program for contractors, so that they can build and maintain a relationship with this target market. Due to their strong dedication to satisfying consumers, Home Depot has been very effective in increasing market share and brand loyalty.
Questions for Discussion
What hypothesis do you think the product designer formulated before he began researching how consumers use buckets? Do you agree with his decision to use observation rather than another method of collecting primary data? Why?
Is Home Depot using differentiated targeting, undifferentiated targeting, or concentrated targeting? How do you know?
Which segmentation variables does Home Depot appear to be using to reach consumer markets? Why are these appropriate?
Do you think Home Depot is segmenting the contractor market using only business variables or a combination of business and consumer variables? Explain your answer.
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