In early 2009 Lowe’s Companies, Inc., a leading home products retailer, launched an ambitious new project to gain customer mind share in the kitchen remodeling arena. The project, called the next-generation installed sales (NGIS) initiative, was a concerted effort by Lowe’s to expand its service offerings to become an end-to-end solution provider for customers’ kitchen remodeling projects.
Brad Simpson, a marketing manager at Lowe’s, explained that the NGIS would be a very different approach from Lowe’s traditional marketing and sales initiatives:
Through this new approach, we will deliver more than just supplies to the customer. We will deliver kitchen remodeling …show more content…
Kitchen remodeling and installation services were provided by a number of players, including home products retailers, home furniture retailers, hard goods retailers, and specialty kitchen design and installation boutiques. By 2009, most of the big box retailers offered some mix of both product and installation services to both professionals and the DIY segment (see Exhibit 3 for a comparison of kitchen remodeling service offerings). Retailers typically subcontracted these services through local companies that had been certified to perform services on the retailers’ behalf. Retailers guaranteed the quality of the work to the customers.
1 Lowe’s Investor Relations, “Corporate Governance,” http://investor.shareholder.com/lowes/governance.cfm. 2 Mintel Kitchen Remodeling, 2005.
2 KELLOGG SCHOOL OF MANAGEMENT
KEL563 LOWE’S: OPTIMIZING MARKETING COMMUNICATIONS
Home Depot, the largest home improvement retailer, was the first to move aggressively beyond providing supplies for kitchen renovation projects by offering installation services as well. By 2005, Home Depot offered twenty-three national installation programs that performed an average of 11,000 installations a day, including kitchen remodeling projects such as flooring, painting, countertops, cabinets, plumbing,