Home Depot business operations and market strategy

Home Depot

YOU CAN DO it, WE CAN HELP'

The objective of this work is to research the marketing plan of Home Depot and their slogan of "You can do it, we can help." This paper will examine precisely what Home Depot offers to their customers, the target market of Home Depot and how the company has become a household name in home improvement.

The Home Depot's slogan "you can do it, we can help" is effective because it is a slogan that accurately describes the mission and values of the Home Depot and its associates and foundations.

The Home Depot was founded by Bernie Marcus and Arthur Blank in 1978 in collaboration with Ken Langone, an investment banker and Pat Farrah, a merchandising guru. These founders shared a vision of "one-stop shopping for the do-it-yourselfer" and opened their doors in Atlanta Georgia in June, 1979. The best customer services in the industry was offered by Home Depot Association right in the beginning. These associates underwent product knowledge training that was rigorous in nature and furthermore the Home Depot offered clinics which customers could attend free to learn precisely how to do it themselves."(the Home Depot, 2008)

Bernie and Arthur designed what is known as the customer's bill of rights at the Home Depot which entitles the customer "to the right assortment 'quantities and price' along with the trained associates on the sales floor who want to take care of customers." (the Home Depot, 2008) the Home Depot customer service philosophy is stated to be "whatever it takes" and results in the associates "cultivating a relationship with customers rather than merely completing a transaction." (he Home Depot, 2008)

I. COMMUNITY INVOLVEMENT CRITICAL in MARKETING STRATEGIES

The Home Depot is very involved in the community and "strives to be the employer, retailer, investment and neighbor of choice in the home improvement industry." he Home Depot, 2008) the Home Depot claims that it is:

The world's largest home improvement retailer;

The second largest retailer in the U.S.;

The third largest retailer in the world;

The creator of nearly 20,000 net new jobs in 2006.

Is the world's leading employer of Olympic and Paralympic athletes and hopefuls;

Is the fastest growing retailer to reach $30 billion, $40 billion, $50 billion, $60 billion and $70 billion in sales. At the end of fiscal year 2006, revenue was $90.8 billion.

Additionally the Home Depot has over 22 million visitors each week. The Home Depot claims having donated "...a half million working hours on community service projects."

Finally, the Home Depot Foundation, and associated suppliers: "...committed a total of more than $11 million to support recovery and rebuilding efforts throughout the regions impacted by the Hurricanes Katrina, Rita and Wilma." (he Home Depot, 2008)

II. CORPORATE GOVERNANCE PLAYS a LEADING ROLE

The Home Depot stats that its' corporate governance is strong in nature and is founded upon the implementation of procedures that are "new and significant" and stated to include the following:

1) a Disclosure Committee tasked with ensuring that the Company's disclosures to its stockholders and the investment community are accurate and complete;

2) a Corporate Compliance Council, now known as the Enterprise Risk Council, to regularly review the Company's compliance policies and monitor its compliance performance;

3) a Policy and detailed procedures for the retention of the Company's independent auditors; and 4) New independence standards for Board members, which meet or exceed the standards proposed by the New York Stock Exchange. (the Home Depot, 2008)

The following figure shows the components of corporate governance at the Home Depot.

Components of Corporate Governance at the Home Depot

Source: (Corporate Governance Overview, the Home Depot, 2008)

III. HOUSING IMPACT GRANTS and the HOME DEPOT

The Home Depot has integrated into the community and one of the methods utilized by the Home Depot is in aligning with its "online grants program with the Home Depot Foundation's Affordable Housing Built Responsibly program and is focused exclusively on housing." (Team Depot, 2008) the Home Depot's philosophy is based on a belief that assisting families and individuals "secure quality affordable housing crates stronger communities." (Team Depot, 2008) Toward this end, the "Housing Impact Grants program supports affordable housing projects built or preserved with environmentally friendly efficient and durable materials that increase energy and water efficiency, improve indoor air quality and reduce maintenance costs." (Team Depot, 2008)

IV. PARTNERS and PROGRAMS of the HOME DEPOT TEAM

The following programs and initiatives are those in which the Home Depot Team and Foundation invests its funding and its time toward:

KaBOOM: This is a community effort "to create and refurbish 1,000 play spaces in 1,000 days throughout North America.

Racing to Play: a national partnership between the Home Depot, KaBOOM, and Joe Gibbs Racing which has built in only three years approximately 30 playgrounds with a racing theme in NASCAR communities across the country and better the lives of over 11,000 children.

Neighborhood MVP: is a national program that "recognizes that NFL players do positively impact the lives of those in the local communities through contributing to charities and programs of assistance. This program recognizes a player the 18 weeks of the regular season and does so by refurbishing a playground of football field in the local market and an additional donation to a charity of their choice;

Points of Light & Hands on Network: a growing network of volunteer mobilization which was integral in creation of Hands on Atlanta.

Hands on Schools: engagement of local community and leverage of corporate resources along with mobilization of students, parents and other volunteer teams founded the $3 million change grant which is described as a "unique collective investment" that services to facilitate "positive community growth" and does so through revitalization of schools and empowerment of the local community;

National Arbor Day Foundation: in alliance with the National Arbor Day Foundation works to foster awareness and to "demonstrate the benefits of community trees;

Trees for Success: Also a partnership with the National Arbor Day Foundation this is a program that brings together city official, Team Depot volunteers, urban foresters, community groups and area school children through a planting tree initiative engaging the community in the natural surroundings and teamwork in creating a more positive environment; and Team Depot Dollars Grant Program: volunteer of associates with expertise and service to nonprofit organizations. (Team Depot, 2008)

Another example of the manner in which the Home Depot has integrated the business deeply into the patchwork of life in the community which is related in the report entitled: "We Build CommUnity" which states that "giving back is a fundamental value of the Home Depot and a passion for associates. Through an extensive community relations program, we reach out to the communities where out associates live and work with philanthropic and volunteer support." (the Home Depot, 2008)

The focus of efforts in communities by the Home Depot are stated to be in the four key areas as follows:

Building and refurbishing playgrounds;

Ensuring the safety and accessibility of community gathering spaces;

Building and refurbishing affordable and transitional housing; and Preparing communities for emergencies. (the Home Depot, 2008)

The Home Depot website states that the Home Depot Foundation was founded in 2002 for the purpose of furthering the "community building goals of the Home Depot by providing resources to assist nonprofit organizations throughout the United States and Canada." (the Home Depot, 2008) Grants are awarded to nonprofits that are eligible to receive the grants three times each year.

The Home Depot believes that the home is "the biggest financial and emotional investment" made by people and that through offering various and innovative "merchandise and services" the Home Depot enables consumers to "create the home of their dreams whether they want to do it themselves or have it done for them." (the Home Depot, 2008) the Home Depot further offers "specialized support and services for professional contractors and tradespeople to ensure that they have the right tools and supplies for the job site." (the Home Depot, 2008)

VI. The HOME DEPOT CLINICS and WORKSHOPS

The Home Depot invests in its customers and provides workshops and clinics which serve to provide instruction to consumers on how to successfully complete their own home projects. One example is a workshop on how to install crown molding. The Home Depot also offers kids workshops for children ages five to twelve which teach children not only skills but as well teaches them safety. These activities instill children and adults with confidence and allows them to possess a sense of having accomplished something really important. The Home Depot also offers online workshops which are archived for the convenience of consumers who desire to learn how to do home projects on their own.

SUMMARY

The community initiatives of the Home Depot serve to integrate the business organization into the community at the very grass roots as the Home Depot both caters to the homeowners with the offering of both products and services and really does assist the customer to do that which they might not have believed they could accomplish on their own. Furthermore, the Home Depot employs many community members providing them with a livelihood enabling them to earn a living. Additionally, the special activities of the Home Depot in the community in which they are located results in benefits realized by community members in various areas such as housing, workshops, clinics, and other specialized services of the Home Depot. The slogan used by the Home Depot of "you can do it, we can help" is a slogan that states confidence in the consumer in their ability to successfully complete their own do-it-yourself home projects and provides assurance that the Home Depot will "assist" or "help" the customer in successful home project completion. The Home Depot does not simply state this but evidences these supports through the many workshops and clinics offered in the communities in which they are located. The Home Depot is proactively involved in building a better community, a more sustainable community and a safer community.