NEW BUSINESS PITCH Let s Build Something Together
The Data You Need to Win This Pitch NAME BRAND PITCH TYPE MARKET DATE Lowe s has launched its first media agency review in more than a decade. Media North America th September 28, 2016 DESCRIPTION Home improvement retail giant Lowe s has launched its first media agency review in more than a decade. Creative is not part of the review, and sources indicate that incumbent OMD may not defend. A Lowe s spokesperson told Adweek: As part of the normal course of business, we regularly review the agencies and vendors that support our company to evaluate our objectives against performance and ensure we remain strategically aligned. As the consumer and media landscape continues to rapidly evolve, we are exploring the most compelling and efficient ways to reach consumers to help ensure we remain well positioned. Both OMD and BBDO declined to comment, though Lowe s confirmed that the creative portion of its business was not affected. Sources tell us that OMD will not defend the account but that another Omnicom entity will most likely participate in the review, which remains in the RFI stage at this time. International consultancy R3 is managing the process.
Client Profile / Market COMPANY BACKGROUND FINANCIAL OVERVIEW Lowe s Companies, Inc. was founded in 1946, is based in Mooresville, North Carolina, and operates as a home improvement retailer. It offers products for home maintenance, repair, remodeling, and decorating. The company provides home improvement products in various categories, such as lumber and building materials, tools and hardware, appliances, fashion fixtures, rough plumbing and electrical, lawn and garden, seasonal living, paint, flooring, millwork, kitchens, outdoor power equipment, and home fashions. It also offers installation services through independent contractors in various product categories; extended protection plans; and in-warranty and out-of-warranty repair services. The company sells its national brand-name merchandise and private branded products to homeowners, renters, and professional customers; and retail customers comprising individual homeowners and renters. As of January 29, 2016, it operated 1,857 home improvement and hardware stores in the United States, Canada, and Mexico. The company also sells its products through online sites comprising Lowes.com, Lowes.ca, and ATGstores.com, as well as through mobile applications. DECISION MAKERS by 2015 Net Sales (mil) 2016 Employees Employee Growth Percent Assets (mil) Net Income Growth Percent Sales Growth Percent MAIN COMPETITORS 59,074 270,000 - - 4.9% - Ms. Marci P. Grebstein Chief Marketing Officer marci.grebstein@lowes.com Mr. Eric B. Magnuson Consumer Marketing Manager eric.b.magnuson@lowes.com
Home Improvement in the U.S. $318 BILLION home improvement products SALES IN 2015 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 53% of U.S. adults made some type of home improvement in the past 12 months. - HIRI.com - HIRI.com 2016 FORECASTED GROWTH 4.4% $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 56% of adults who did home improvements spent $1,000 or more. HIRI.com - HIRI.com -
Boomers Still Leaders in Home Improvement Home Improvement spending share by generation Baby Boomers Gen Xers 34.3% 47.8% According to Harvard s Joint Center for Housing Studies With the massive generation of Millennials overtaking the Baby Boomers in number, the home improvement industry will grow Pre Boomers 15.3% at a 3.5 percentage rate annually in the years ahead. Millennials 2.6% - JCHS -
Fast Home Food Improvement industry in numbers in 2016 TOP AREAS IMPROVED 37.9% Home owners planned to complete a Home Improvement project in 2016 49.8% Plan to do all the work themselves 26.6% Plan to do split the work with a contractor 29.8% BATHROOM 28.6% OUTDOOR LANDSCAPING 25.9% KITCHEN
Fast Lowe s Food Home industry Improvement in numbers 2015 NET SALES $59.074 BILLION Lowe s was ranked the 18th largest retailer globally in the National Retail Federation s 2014 4.9% 2015 NET SALES GROWTH HOME IMPROVEMENT INDUSTRY 17% LOWE S MARKET SHARE 24% HOME DEPOT S MARKET SHARE
Lowe s Retail CUSTOMER SEGMENTATION LOWE S OWNS 1840 STORES IN US, CANADA & MEXICO RETAIL CUSTOMERS DO-IT-YOURSELF CUSTOMERS DO IT FOR ME CUSTOMERS 70% RETAIL CUSTOMERS ACCOUNT FOR ABOUT 70% OF LOWE S SALES 16 MILLION CUSTOMER SERVED EACH WEEK +4.6% SAME-STORE SALES THE PROFESSIONALS Looking for products to complete projects for other customers like interior designers and building contractors 857 Million TRANSACTIONS IN 2015
Lowe s Fast Revenue Food industry by Product in numbers Category OUTDOOR POWER EQUIPMENT 4% OTHER 1% MILLWORK 6% KITCHEN & APPLIANCES 14% FLOORING 6% HOME FASHION, STORAGE & CLEANING 6% LUMBER & BUILDING MATERIALS 12% PAINT 6% SEASONAL LIVING 7% HARDWARE 11% LAWN & GARDEN 8% FASHION ELECTRICAL 10% ROUGH PLUMBING & ELECTRICAL 9% Source: Lowe s Financials
Fast Focus Food industry on Technology in numbers FIRST RETAILER IN SPACE HOLOROOM AND VIRTUAL REALITY Lowe s partnered with Made in Space to become the first retailer to launch a 3D printer into space. The printer allows astronauts to manufacture tools and parts on demand. Lowe s also implemented its Holoroom technology in select US stores. Holoroom enables Lowe s customers to visualize the impact of potential home improvement projects in the kitchen and bathroom in virtual reality. The technology also allows the customer to make changes to the planned project in the Holoroom Customers are already using Lowe s Innovation Labs 3D scanning and printing services to produce custom or hard-to-find replacement parts. The Holoroom is an improvement over the MyLowes feature on its web portal which allows the customer to store room dimensions online and visualize the impact of design changes.
Fast Improving Food industry Digital in Presence numbers 2015 Media Spending $769 Million - Source: AccessConfidential.com - Marci P. Grebstein Chief Marketing Officer In the past, we did lots of how-to content that was informative and instructional. But this year, we want to have more inspiring content with a focus on digital and social to reach older millennials, said Grebstein. - Source: WSJ.com - SNAPCHAT LATEST CREATIVE FACEBOOK VIDEO Jeff s Story FLIP-SIDE SERIES IN A SNAP SERIES Targets new homeowners Short videos that simultaneously show what happens when a homeowner does and doesn t do common household tasks 360 Videos The company used Snapchat to create a series of videos called In a Snap in May of this year, where viewers can hammer, drill or chisel to complete a DIY project by tapping the right place. Type: Online Advertising Since July, Lowe s posts one Made in a Minute Facebook 360-degree video per month covering different do-it-yourself ideas aimed at attracting Millennial consumers. - Source: AccessConfidential.com -
Fast DIY Food Inspirational industry in Sources numbers TOP SOURCES TOP SOURCES BY GENDER TOP DIY CONTENT 59.4% General Home Improvement / DIY Sites 59.1% Home Improvement 40.7% Social Media Platforms 37.8% Retail / Commercial Sites 51.5% 25.3% SOCIAL MEDIA 21.4% DECOR BLOGS 8.3% 17.2% ONLINE VIDEO 35.5% 55.3% Home Decoration 42.0% Gardening - Source: Rhythmone.com - - Source: Rhythmone.com - - Source: Rhythmone.com -
DIY HOME IMPROVERS QUICK DEFINITION: DIY customers shop for products and supplies to complete home projects by themselves. They often rely on blogs or magazines to find new ideas or how-to guides to complete the projects they have in mind. 77% FEMALE 62% MARRIED 71% WITHOUT CHILDREN HOME DECORATORS & DIYs ART APPRECIATORS 30% 197.7 195.5 20% 10% 0 READERS 180.3 PARTY GOERS 161.2 13-17 18-24 25-34 35-44 45-54 55-69
Compare the DIY Home Improvers Demographic with Lowe s Female Audience Lowe s audience overlaps with our DIY Home Improvers demographic by 54% in interests, including: Home & DIY, Art, Nightlife and Reading 54% DIY HOME IMPROVERS
DIY HOME IMPROVERS: HOME DECOR & DIY LOWE S HOME IMPROVEMENT AUDIENCE CROSSOVERS DIY BLOGS 33% POPULARITY 22% READ HOME & GARDEN RELATED MAGAZINES Lowe s Audience is highly interested in Home Decor and, compared to DIY Home Improvers, are more engaged by Household Supplies & Appliances (31.1%). DIY Blogs are followed by 29.4% of Lowe s audience while Home and Garden Magazines are read by only 9% of them. CLICK HERE TO SEE TOP DIY BLOGS CLICK HERE TO SEE TOP HOME RELATED MAGAZINES
DIY HOME IMPROVERS: ART LOWE S HOME IMPROVEMENT AUDIENCE CROSSOVERS ART APPRECIATORS 195.4 DISCOVER THEIR FAVORITE ARTISTS Art isn t appreciated as much as DIY Home Improvers do. The Art Appreciators trait scores 115.2 popularity points. Therefore, Museums and Art Galleries gather less interest (117.5). FAVORITE MUSEUMS MUSEUMS & ART GALLERIES 191.4 American Visual Art Museum KNOW MORE DISCOVER THEIR FAVORITE ART EVENTS
DIY HOME IMPROVERS: READING LOWE S HOME IMPROVEMENT AUDIENCE CROSSOVERS BOOKWORMS 131.7 POETRY BOOKS 157.4 GOSSIPERS 195.4 GOSSIP WEBSITES 165.5 Reading isn t a hobby for Lowe s audience, as suggested by the under-indexing of the readers trait (75.0) However, gossip seem to attract some interest among Lowe s customers. They over-index as Gossipers (123.4) and, like DIY Home Improvers, visit Gossip related websites (140.3) TOP POETRY BOOK Leaves Of Grass KNOW MORE DISCOVER THEIR FAVORITE WEBSITES
DIY HOME IMPROVERS: PARTY LOWE S HOME IMPROVEMENT AUDIENCE CROSSOVERS NIGHTLIFE 161.2 You ll hardly meet a Lowe s customer in a club. The party goers trait scores 84.4 popularity points, while Nightlife is just below the average (97.0). BARS 160.3 CLUBS & DISCOS 153.8 However, Lowe s audience shows a good interest in Bars (137.0) CLICK HERE TO SEE THEIR FAVORITE BARS DISCOVER THEIR FAVORITE CLUBS
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