RECAP
Recap from 2015 How to develop a winning pricing strategy that projects a positive brand image and bolsters your bottom line
How to unlock the secrets of your customers’ purchasing habits and use that information to keep them coming back for more
How to create your custom dashboard to measure and manage your business’s performance. By tapping into your Do it Best Corp. toolbox in each of these areas, you can unleash your profit potential
2
WELCOME
AGENDA Taking the pulse of the industry and observing the prevailing trends and opportunities in your market
Examining the opportunities that offer the greatest sustainable growth potential and return on investment for your business
Identifying the growth strategy that fits your market’s potential and competitive environment
Building your plan for success by utilizing the time-tested and
proven programs available from your partner in business, Do it Best Corp.
3
INDUSTRY TRENDS
Market factors: • Corporate profits • Disposable income • Oil prices • Existing home sales • Consumer activity
What have you noticed in your market?
In 2013, home improvement spending represented a market of approximately $300 billion. Where did that money go?
65% Homeowner improvements 17% Homeowner maintenance 18% Rental improvements
4
DEMOGRAPHICS Of the $300 billion spent on home improvement in 2013:
63.1% Baby boomers 34.3% Gen-xers 2.6% Millennials Rank population from largest to smallest
Baby Boomer Generation X Millennial
Notes:
5
BREAKOUT SESSION What’s happening in your market? Reflect upon and share the prevailing trends in your market.
Performance trends:
up down flat
Sales Gross Margin Average Ticket Transactions
Customer trends:
Loyalty program membership Buying local Younger customers DIY customers Pro/Tradesman customers
Trending departments: 1. 2. 3.
Group discussion What trends emerged in your groups? What are some of the factors driving those trends? What are you doing to drive these trends in your market?
6
up down flat
(circle one for each category)
(circle one for each category)
SWOT
Strengths
Opportunities
Weaknesses
Threats
7
KNOW YOUR COMPETITION Who are your competitors? What alternatives do your customers have to shopping in my store or on my website? Direct competitors
Indirect competitors
Visit and shop stores:
Study the competition:
What is it that they believe in as a business?
Trade articles
What products and services do they offer that you don’t?
Mainstream publications
What message are they communicating to their customers?
Marketing materials
What niches do they serve?
Websites
What’s their approach to customer service?
E-newsletters Advertising
8
KNOW YOUR MARKET Tools to know your market share and potential
9
LONG-TERM POTENTIAL Evaluate your first impression Signature™ Store Design Branding and advertising Circulars Apparel Web page Social media pages
How do you tell your story?
How do your customers perceive it?
Cultivate a strong financial partnership Tell your story Share your plans Build a relationship
10
BREAKOUT SESSION Who is in your market? Your Store
Competitor 1
Competitor 2
Competitor 3
Store Name:
Store Type:
Customer Mix:
______% DIY ______% Contractor ______% In/Com
______% DIY ______% Contractor ______% In/Com
______% DIY ______% Contractor ______% In/Com
______% DIY ______% Contractor ______% In/Com
Affiliation:
Independent Co-op member Regional Chain National Chain
Independent Co-op member Regional Chain National Chain
Independent Co-op member Regional Chain National Chain
Independent Co-op member Regional Chain National Chain
Shopping Center
Shopping Center Free Standing Other
Shopping Center Free Standing Other
Shopping Center Free Standing Other
Hardware Store Home Center Lumber Yard Other
Store Location Type: Free Standing
Store Hours:
Other
Hardware Store Home Center Lumber Yard Other
Hardware Store Home Center Lumber Yard Other
M-F Sat Sun
M-F Sat Sun
M-F Sat Sun
M-F Sat Sun
1.
1.
1.
1.
2.
2.
2.
2.
3.
3.
3.
3.
1.
1.
1.
1.
2.
2.
2.
2.
3.
3.
3.
3.
Hardware Store Home Center Lumber Yard Other
Retail Sales Space (Sq. Ft):
Top Departments
Niche Categories
11
BREAKOUT SESSION
Evaluating the competition Your Store
POOR Competitor 1
FAIR
GOOD EXCELLENT
Competitor 2
Competitor 3
Store Name: INTERIOR Cleanliness Signage Fixtures Lighting Merchandise Product mix Front end i.e. dump bins, impulse buys, checkouts and seasonal items etc.
EXTERIOR
Signage i.e. well-lit, visible and appealing etc.
Location (convenience)
Cleanliness Ingress/Egress Branding
Competitors’ overall strengths:
Competitors’ overall weaknesses:
12
BREAKOUT SESSION How would you describe your #1 competitor's pricing strategy?
How would you describe your #1 competitor's marketing strategy?
How would you describe your #1 competitor's customer service?
Group discussion Where are the gaps in your market? Is there untapped potential? If so, what are those opportunities? If not in your trade area, where do your opportunities exist? What is your ultimate dream? What is the best business opportunity in the community (or communities) you serve?
13
GROWTH STRATEGIES
Make a note of the strategies that appeal to you from other member's experiences. BTU Do it Center速 (Market Repositioning)
Huntington Lumber & Supply Co. (Expansion)
All American Do it Center速 (Additional Locations)
Move your "fence"
Woodland Hardware (Relocation)
T &M Do it Best Hardware and Rental (Acquisition)
14
PLANNING
What is your dream?
Who is going to help you achieve it?
1
3 2
5 4
Who is responsible for what and when?
What is your budget?
What return can you expect?
15
PLANNING Strong marketing Past Successes Ideas for the Future
Lead your best team
Groups:
A collection of individua ls
Team:
ent, d n e p e d r Inte ive and t a r o b a l l co with engaged ls goa common
16
Manager:
Directs a te am
Leader:
nd Inspires a eam steers a t
BREAKOUT SESSION Building your plan for success Top 3 trends in your market: 1. 2. 3. Your strengths: 1. 2. 3. Your weaknesses: 1. 2. 3. Opportunities in your market: 1. 2. 3. What is your best opportunity? What is your dream? Is there a door of opportunity already open? If so, where? If not, how are you going to “build a door?�
17
BREAKOUT SESSION Growth strategy
From the list below, select the theme(s) that most clearly aligns with the growth strategy you’re going to pursue. People
Product
Culture Customer service Leadership training Merchandising training
Adjacencies Building materials Core hardware Home dĂŠcor
Inventory depth Lumber Niches Paint business plan
New staff orientation Product knowledge Training Sales training Succession planning
Impulse Industrial/commercial Inventory mix
Product related services Rental Seasonal
Place
Promotion
Price
Acquire additional location(s) Add additional location(s) Expand
Branding Customer loyalty Community engagement Foot traffic
Margin management Performance management Point of sale system
Relocate Reposition Store design
Web presence
Pricing analysis Procurement cost Value image
My action plan and timeline Step 1: Step 2: Step 3:
Budgeting my growth capital
The most costly component of my growth strategy is:
Other components I would account for in my budget include:
18
BREAKOUT SESSION Building my strong marketing plan Means by which I would tell my story:
Leading my best team People who will play a key role in executing my growth strategy include: Leaders:
Contributors:
Are my people on the bus and in the right seats? If not, what do I need to do?
Our Goal: Helping our members grow and achieve their dreams 19
NOTES
20
NOTES
21
NOTES
22
NOTES
References Home Improvement Research Institute ITR Economics Joint Center for Housing Studies, Harvard University Pew Research Center
23
PO Box 868 • Fort Wayne, IN 46801-0868 • (260)748-5300