Sherwin Williams Group 4 Jimmy Liao Kim McCullars Christina Nguyen Michelle Tamez Amanda Trapp
National retailer of leading home and industry paint products, with over 3,000 retail branches Retail Customer Sales = 15% of total business Currently Sherwin-Williams offers: Interactive website Preferred Customer Program Sherwin-Williams
Goal: maximize retail customer sales & maximize foot traffic for a new location’s grand opening N. Central Expressway, Suite 100 Dallas, TX June 25, 2011 Target local DIY (Do It Yourself) market Budget = $14,000 Objectives
Market Segment Homeowners with income $25,000 - $200,000 Interest in home renovation & decorating Singe and family households Focus zip code: Highest residence rate & population (50,618 persons) 85% within this area fall into target income range Average range of home value: $66,854 - $313,479 Segmentation and Targeting
Population Distribution of Surrounding Zip Codes
Housing Units within Surrounding Zip Codes
Guaranteed Quality “the strongest and most valuable of assets – Reputation” Walter Cottingham Good Housekeeping Seal of Approval Commitment to helping our customers and exceeding their expectations Social Responsibility GreenSure & Harmony Product Lines YMCA Positioning
Melissadata.com 8 Zip Codes found All homes, businesses, and apartments selected based on population 6,729 addresses purchased for list price of $63.93 List
Self-Mailer: Postcard 8.5”x5.5”
Postcard 8.5”x5.5” Cont.
15% off all purchases made with postcard 2 workshops held on June 25 Live DJ from Mix FM on site from 12Pm-3PM Snacks and refreshments provided Gift Giveaways Sherwin-Williams gift cards drawing open to everyone Sherwin-Williams gift baskets worth $100+ drawing for every paint purchasing customer on June 25 Grand Opening Event: “ Paint-A-Palooza! ”
5% donation of all purchases made during the weekend of June to Habitat for Humanity All day giant “Paint for a Cause” cloth banner with paint and brushes provided for anyone who wants to ‘leave their mark’ Habitat for Humanity
Print: Postcard self-mailers Grand opening event Incentives Radio: Mix FM To promote Paint-A-Palooza! Target audience: women years old Google Click ad To inform of a new Sherwin-Williams location in Dallas Coupon if clicked Groupon Media Selection
Local Facebook page Used as a page or friend Inform customers about sales, events, news, etc. Helps build customer relationships Sherwin-Williams official page = 8,285 ‘likes’ Clinton, Missouri – 100 friends, pop. < ½ of our targeted location Galesburg, Illinois – 147 ‘likes’, pop. Is 2.7 x’s larger Estimated friends ~ 200 ‘likes’~150 Media Selection Cont.
Facebook Advertising Potential to reach 923,920 Dallas consumers Ages between Interested in Decorating, DIY, Painting, Charity, Home Improvement Media Selection Cont.
Online blog: MyDallasMommy.com Posts coupons, ads, deals, and freebie offers Designed to draw in bargain hunters Followers are targeted customers Most females Incomes between $30,000 - $100,000 Connected with Facebook and Twitter Ideal to promote Sherwin-Williams new store Media Selection Cont.
Budget Total Budget: $14, Amount Used: $12, Balance Remaining: $1,383.00
Return on Promotion Actual orders received tied to mailer100 Actual response rate1.00% Conversion rate10% Cost per inquiry$12.92 Cost per order$ Number of orders needed to breakeven199 Response rate needed breakeven1.99% Revenue$10,350 Net profit minus promotion cost $6,494 Net Profit on promotion-$6,423 Return on Promotion-50% Testing: < Anticipated Response rate: 1% Conversion rate: 10%
Return on Promotion Actual orders received tied to mailer400 Actual response rate4.00% Conversion rate20% Cost per inquiry$6.46 Cost per order$32.29 Number of orders needed to breakeven199 Response rate needed breakeven1.99% Revenue$41,400 Net profit minus promotion cost $25,975 Net Profit on promotion$13,058 Return on Promotion101% Testing: > Anticipated Response rate: 4% Conversion rate: 20%
Return on Promotion Actual orders received tied to mailer225 Actual response rate2.25% Conversion rate15% Cost per inquiry$8.61 Cost per order$57.41 Number of orders needed to breakeven199 Response rate needed breakeven1.99% Revenue$23,288 Net profit minus promotion cost $14,611 Net Profit on promotion$1,694 Return on Promotion13% Testing: Anticipated Response rate: 2.25% Conversion rate: 15%
Creation of solid customer marketing database through barcode tracking, facebook, and in store interactions Maintain current loyal Sherwin-Williams customers by determining LTV and reward accordingly Immediate and quick response to customers’ needs via facebook and staff Fulfillment
Continuation of charity work Remember Henry Sherwin and Edward Williams Encourage customers and community to participate Promote company’s name, image, and value Create and actively maintain a local Facebook page Expand their use of digital marketing Continuation of superior quality in products and employees Recommendations