Hoe Depot Case Study

Topics: Pricing, The Home Depot, Price Pages: 2 (674 words) Published: March 4, 2013
The Home Depot: EcoOptions Case study

1. Who is THDC's target customer for the EcoOptions line of products?

THDC’s target customer for the EcoOptions line of products is a DIY (do it yourself) or DIFM (do it for me) (Chandrasekhar, 2006, p6).

2. How should EcoOptions be priced? What is the value of "environmentally friendly" or "socially conscious" as a product attribute?

Premium pricing is an integral part of eco-products, which environmental conscious customers are willing to pay for them. However, EcoOptions should be priced according to the “low, day-in day-out pricing” policy. This policy is set to bring down prices by using size and scale to our advantage in negotiating with manufacturers and reducing operating costs (Chandrasekhar, 2006, p6). The value of “environmental friendly” or “socially conscious” as a product attribute is to differentiate themselves from competitors in pricing strategy, which will attract more consumers to favor in eco-products especially with affordable prices. In addition, this will not only help the company itself to develop good reputation and increase sales but will eventually motivate the whole market’s buying habit and business’ production trend changing from conventional products toward environmental friendly products.

3. Discuss whether or not you feel that a "mixed-in" merchandising strategy will work for EcoOptions products? Why or why not? If not, discuss alternatives. P5 When there are concerns over setting dedicated shelf space for EcoOptions products, I think “mixed in” merchandising strategy will work better for EcoOptions products. As a customer, I will feel confused and have difficulty finding the specific product that I want when later on there may be lots of different products without categorized at the Eco-products section. Besides, some of the customers may not notice the presence of the new brand section dedicated for Eco-products and they will keep shopping for the conventional...
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