Presentation-Lowe's
- 1. Welcome Board Members! Presenters: J/B Consulting, LLC Julius Clark & Bradford Armstrong JuliusClark63@gmail.com Bdarmstr@yahoo.com
- 2. Industry Overview • Growth • Closely linked to Economy • Unemployment • Home Improvement Spending
- 4. Lowe’s Corporate Overview • 2014 Revenue: 56.2 billion • 1,840 Locations • U.S., Canada & Mexico • 265,000 full/part time employees • 16 million retail/professional customers served weekly
- 5. Strengths • Marketing • Merchandising • Distribution • Enhanced In Store Technology • Wi-Fi • Touch Screen Technology • Flexible Fulfillment System
- 6. Weaknesses • Lack of Control over Product Quality • Global Limitations • U.S., Canada and Mexico only • Consumer Retention and Brand Loyalty • Recalls
- 7. Opportunities • E-Commerce Sales • Increase in Home Improvement • Purchasing Power and Population Growth
- 8. Threats • U.S. Economy • Competition • Currently #2 in Industry • Housing Market
- 9. New Mission Statement Current We are committed to delivering better customer experiences across the entire home improvement spectrum, by pulling together the best combination of possibilities, support and value for customers wherever and whenever they choose to engage. New We are dedicated to providing excellent customer service by creating a valuable experience through superior products, knowledge & resources for all customers within the home improvement continuum.
- 10. New Vision Statement Current • We will provide customer-valued solutions with the best prices, products and services to make Lowe’s the first choice for improvement. New • We will strive to provide the best prices and product proficiency for the best value, making Lowe’s the only choice for consumers within the home improvement industry.
- 11. Trend Spotting: E-Commerce • Steadily increasing • Proliferation in mobile devices • 1998-2014: Avg Growth: 27.80% • Estimated 10.6% of total retail sales by 2019
- 12. Trend Spotting: Data Usage • From 1997-2014, Exabyte usage on the Internet has increased an average of 84.9% • Expected growth thru 2020 is projected to average 19.18% • Exabyte: 1 Quintillion bytes • Internet more accessible due to Smartphone popularity
- 13. Competition • Lowe’s currently is #2 behind The Home Depot • Market Share: • Home Depot- 46.7% • Lowe’s- 33.8% • Menard, Inc. 5% • All Others-14.5%
- 14. Brainstorming • Customer Inventory Tracking App • Search items on smart phone for in-store location • Expand growth potentials • Stores in U.S., Canada, Mexico • Marketable to women • Partner/Acquire Kingfisher • Largest European Home Improvement Retailer • Allow for Penetration into European Market
- 16. Introducing “Lowe-Bid” • Interactive Customer/Contractor Marketplace • Website • Mobile App • Comparable to Priceline • Allows buyers & sellers to communicate & negotiate services • Partner with Angie’s List for exposure & information • Contractor Database imported into Lowe-Bid systems • Angie’s List would get a percentage of profit for partnership • No membership fees to Lowe-Bid account users • More Internet & Mobile app traffic & usage
- 17. Lowe-Bid: Customer Value • Allows customers to post budgets and project ideas • Convenience • Multiple estimates/bids instantly • Option to decline bids • Customer can compare bids from various local contractors • Background • Specialization • Professional Certification & License Verification • Customer reviews & Feedback • Service Records • Better Business Bureau accredited Companies only • Allows for customer security & trust
- 18. Lowe-Bid: Contractor Value • Allows contractors to see potential business and offer bids on services • More bids on potential contracts in less time • Immediate notification of bid acceptance • Enables company to delegate resources and schedule more effectively • All supplies would be purchased from a Lowe’s retail location • Supply Delivery to job location if booked through Lowe-Bid system
- 19. Lowe-Bid: Value to Lowe’s • Capitalize on current technology • Mobile Phones • Tablets • Inventory Impact • Reduction of Inventory Holding Days • Current average from 2005-2014: 89.93 days • Better control of in house stock • Reduce inventory cost • Further expand presence in Contractor market segment • Current Contractor market segment: 30%
- 20. Cost • DIY-808 person days * $375 cost/day + $18,000 Infrastructure= $321,000 • Kinvey-326 person days * $371 cost/day + $18,000 Infrastructure=$138,946 • Estimates from question base format • Complex algorithmic system
- 21. Questions?