Lowes Companies Inc.: Optimizing the Marketing Communications Mix Harvard Case Solution & Analysis

Problem statement

The problem that the company faces is about how to create an integrated marketing communication plan in order to launch its new project of Next Generation Installed Sales (NGIS) that includes the best combination of traditional and digital marketing communication channels as well as meeting the objectives of NGIS.

Situation analysis (current status)

1)     Company objectives, background, and forecast

Company objectives and goals

The objectives of the Lowe consists of:

  • The main objective of the company is to  become and  stay at the top of the mind for the prospective customers in order to provide end to end solution for the kitchen remodeling projects.
  • Another objective is to engage and involve the custaters in each stage of buying cycle.
  • To gain and hold an awareness of consumers during the early stages of the buying cycle.
  • To be the first choice of customers for home improvement by providing customer valued solutions with the best price, products and services.
  •  Lastly, maintain and grow the customer base.

Background and Forecast

The company was founded in 1946 with the strategy that centered on offering customers low price products and services every day. The company has focused on traditional marketing media in the past, but it has moved towards providing customers with an end to end solution, the company changed its focus from traditional marketing to digital marketing media.

The company provides its customers free in-home consultations as well as will work with the customers during the design, purchase and installation processes that was missing in its traditional approach. This strategy of the cISAany isa great change from its  current approach in order to attract more customers.

2)     Company fit in the environment: internal and external factors (SWOT with implications)


ü  The Lowe’s was second largest home improvement retailer in the world as well as the fastest growing retailer in the United States.

ü  The trusted position of the company in the home improvement sector that give it an immediate advantage over its small competitor that lack resources in order to satisfy consumers.

ü  The company has the reputation of offering products and services at low prices to its consumers (Exhibit 2).


ü  The company's dependence for installation on the third party contractors.

ü   The NGIS represents 6% to 8 % from the Lowe’s total revenue in 2008.

ü  The involvement of the customers’ initial and final stages of the buying cycle is absent.

ü  At present, the company is not providing before and after sales services to their home improvement products(Exhibit 2)..


ü  Lowe’s existing loyal customer base with an excellent opportunity to enter as well as grow the installed sales business in kitchen remodeling.

ü  The company has an opportunity to reduce the period of incubation through an effective communication mix of traditional and digital marketing media

ü  The company has the opportunity to engage customers to provide them current information with designing and installation process(Exhibit 2)..


ü  The recession of 2008 that slow down the sector.

ü   Create an integrated marketing communication plan in order to provide end to end services.

ü  Competitors’ offerings such as Home Depot that still offered lowest price.

ü  Highly fragmented home renovation industry.

ü   The company has low brand awareness as compared to competitors (Exhibit 2)..


The company by focusing on its strengths as well as concentrating on opportunities, it can eliminate its weakness and overcome its threat. This will increase the profitability of the company and also change the perception of the customers about the Lowe’s. But the competition in the industry may affect the financial position of the company as its incapability to respond to competition.

3)     Market analysis

The growth in the U.S Kitchen renovation market was high in the mid-2000s, the market reached $17 billion. Furthermore, approximately 75 percent of the kitchen remodeling projects were done through the professionals whereas 25 percent projects were done by the homeowners themselves. The home renovation sector was highly fragmented and consisted of professional companies, division within home stores, small local companies and independent contractors. The introduction of NGIS provides many marketing challenges for the company in order gain an awareness of the customers during the initial phases of buying cycles. The company also wants to engage the potential customers to generate sales for the NGIS.

Marketing Mix


The company provides its customers wide range of products for home improvement in its store that range from the home decor items, paint, flooring to the electric supplies ,fixtures and appliances.Furthermore,company also offers installation services to the customers in various product categories that includes flooring, plumbing ,appliances...................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

Lowe's, the second-largest home improvement retailer in the world, was the beginning of a new ambitious program in early 2009, and entered the arena of kitchen remodeling service providers. With this decision, Lowe was making a concerted effort to move beyond its traditional customer base and attract DIY do it for my client. Lowe's main rivals have been the market leader Home Depot, Sears, Menards, and IKEA, along with an assortment of small, independent contractors, service. The case describes the challenges faced Lowe, she started this transition to the services sector. This shows how the Consumer Insights lead to customer experience mapping, which then forms the basis for an integrated marketing communications program. It also shows how to build a quantitative basis for the distribution of marketing investment through a mixture marcomm. Lowe's marketing team had the task of creating the optimal combination of marketing communications and successful prosecution of those consumers who are interested in kitchen remodeling. "Hide
Mohanbir by Sonia, Aarti Kumar, Hilary Meyer, Coby Neuenschwander, Sang" Ona Oriedo, Mallika Pradhan Garima Network, Pallavi Goodman Source: Kellogg School of management, Northwestern Univ. 26 pages. Publication Date: October 21 2011. Prod. #: KEL563-PDF-ENG

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