inspiring a lifetime of possibilities for your home presented to the energy star participants may...
TRANSCRIPT
Inspiring A Lifetime of Possibilities For Your Home
POINT OF VIEW FROM THERETAILER
POINT OF VIEW FROM THEPOINT OF VIEW FROM THERETAILERRETAILER
Presented to the Energy Star Participants
May 11, 2005
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Agenda
• Background• Program Dynamics• Retail Time Lines• Financial Impact• Communication & Marketing• Conclusions• Contact Information
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Background
• Eco-Options represents the external expression of The Home Depot’s market transformation strategy– FSC Certified Wood - source products from sustainable
resources– Mow Down Pollution - lawnmower recycling program– Beat The Heat - energy conscious cooling– Energy Wise/Energy Smarts - reducing customer’s energy bills– Garden Smarts - environmentally friendly lawn & garden options
• Eco Options– makes buying products & taking on projects convenient and
easy– allows the customer to take the environment into consideration– reduces/eliminates the sacrifices the consumer needs to make – provides a strong value proposition to the average consumer
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Program Dynamics
• Keep it simple for both customers and retailers• Incentive types
– give away
– instant rebate
– gift card rebate
– mail-in rebate
– basket rebate
• Breadth of Retailers involved– exclusivity or channel managed
• Broad range of more environmentally friendly products increases customer touch points
• Event elements for in store promotion
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Retail Time Lines
• Negotiating program elements– 30 to 90 days
• Contract negotiations (lawyer time)– 30 to 60 days
• Product procurement– 90-120 days for domestic or import vendors
– logistic challenges
– forecasting demand for promotion• contingency for exceeding expectations• exit strategy of excess
• Advertising & promotional area planning cycle– how far out does retailer plan & what flexibility do they
have to merchandise the product
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Financial Impact
• Cost to vendor– marketing materials
– funding the offers
– event support through initial set-up & in-store demos
– staging products & inventory risk
• Cost to retailer– marketing the program
– administration of the program
– inventory risk
– front end financing until reimbursed
– in store labour to stage & get product knowledge
– disposal costs for trade-in events
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Communication
• Initial communication to market place– press release -
integrated PR plan
– kick off with key players
– internal to the retailer to staff up
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Communication
• Initial communication to market place– press release - integrated PR
plan
– kick off with key players
– internal to the retailer to staff up
• Marketing communication– in-store POP and flyers
• Permanent in store presence at shelf, at end aisle
• Training & consumer seminars key to successful execution
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Communication
• Initial communication to market place– press release - integrated PR plan
– kick off with key players
– internal to the retailer to staff up
• Marketing communication– in-store POP and flyers
– web• & links to other environmental
organization
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Communication
• Initial communication to market place– press release - integrated PR
plan
– kick off with key players
– internal to the retailer to staff up
• Marketing communication– in-store POP and flyers
– web
– print, TV and radio
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Conclusion
• Keep it simple• Respect timelines of retailer’s planning cycles• Review and plan all costs up front• Communicate internally & externally• Sell a lot of Energy Star qualified products