Home Depot Case Study
Bernie Marcus and Arthur Blank opened the first Home Depot in Atlanta, Georgia in 1979. They had big plans for the hardware and home improvement industry. Today, Home Depot is extremely successful with over 22 million customers shopping weekly and 66 billion in revenue, which makes them the largest home improvement retailer in the world. Home Depot employs over 300,000 people and operates over 2200 stores in the US, Mexico, Puerto Rico, China, the Virgin Islands, Guam and Canada. Just like most companies, Home Depot has had its share of challenges. In 2002, the reputation of Home Depot was wavering. A new chief marketing officer, John Costello, arrived and had big plans to help improve the website, as well as integrating mass marketing and direct marketing with the in-store experience. During his time as “chief customer officer”, Costello consolidated marketing and merchandising functions in order to help consumers achieve their goals in home improvement projects more effectively and efficiently. In 2006, however, Home Depot slipped into last place in the University of Michigan’s annual American Customer Satisfaction Index. Home Depot CEO, Robert Nardelli, claimed the survey was a “sham”, but several former Home Depot managers cited the strict company culture as a reason for the drop in customer satisfaction. In 2008, Frank Bifulco became the new Chief Marketing Officer. In an attempt to remain competitive during the recession, Home Depot developed a new marketing strategy that would emphasize low prices, high product value and quality energy saving products, a strategy still used today. Social responsibility is very important to Home Depot. This is evident in all the programs that they offer that directly benefit society. On the first Saturday of the month, free workshops are offered for children where kids learn how to make fun projects that can be used around their homes or neighborhoods. On average, 75 kids attend workshops...
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