Menards

Only available on StudyMode
  • Download(s) : 341
  • Published : December 2, 2009
Open Document
Text Preview
Consumer Behavior of Menards Customers
Menards Inc. customer base is from low, middle and upper income shoppers. Customers shop at Menards because of low prices and excellent advertising schemes. Menards prices give the Company a competitive advantage over Home Depot and Lowes. They have employees in each market to shop at Home Depot and Lowes to make sure Menards is the lowest price in that market. Menards advertising scheme is to keep the song, “You save big money when you shop Menards,” alive in the customers mind. The Company remodeled their stores with lower shelving, added lighting, more displays and expanded the aisles in order to accommodate the women shopper. Then Menards, Inc. upped its advertising costs to gain more female shoppers and boost customer satisfaction. Menards reasoning comes from a customer focus study done by Vertis Communications found that “73 percent of female home improvement advertising insert readers between ages 35-49 read advertising inserts from various stores and then decide where to shop (Increase).” Market Structure

Menards Inc. is an oligopoly because it has little competition, differentiates its products and the Company has control over prices. Menards has few competitors because of the high barriers to entry, mainly the costs of building and merchandise. The costs for store set up are 17 to 19 million for the property and building depending on the location and price of property. Menards Inc. costs for inventory for a new store are 5.8 million dollars (Long). Another reason Menards is an oligopoly is The Company sells differentiated products to gain an advantage over its competitors. For instance, Menards Inc. carries some personal care items, food items, and a full supply of cleaning products. Lowes and Home Depot do not carry personal care items, food items or cleaning supplies. Furthermore Menards Inc. is the price leader because the Company is extremely innovative. The Company has three Manufacturing plants and...
tracking img