Sherwin Williams Group 4 Jimmy Liao Kim McCullars Christina Nguyen Michelle Tamez Amanda Trapp.

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Presentation transcript:

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