Detailed Marketing Strategy of Lowe’s – Complete Overview

Quick Read

 

The marketing strategy of Lowe’s encompasses a blend of traditional and digital tactics, targeting DIY enthusiasts and professional contractors alike. This article delves into Lowe’s advertising, target market, pricing strategy, and overall marketing strategy, highlighting the brand’s innovative approaches and successful campaigns.

Whenever someone suggests going home improvement shopping, Lowe’s is the first place that comes to your mind, isn’t it? For this reason, in this case study, we will focus on Lowe’s strategy, the leading home improvement retailer, to better understand the marketing strategy of Lowe’s that is used to maintain such great brand recognition among consumers.

This case study will cover Lowe’s marketing strategy, along with its target market, campaigns, top competitors, and so on. Now let us learn more about Lowe’s without further wasting any more time.

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What’s New With Lowes?

Revenue (2023): Lowes’s business strategy helped the company generate a revenue $96.25 billion in the year 2023 (Source: Lowe’s Annual Report)
Number of Employees: Over 300,000 people are working to achieve Lowes’ marketing strategy. (Source: Lowe’s Corporate)
Market Share: 7.5% of the US home improvement market (Source: Statista)
Customer Satisfaction: 79% (Source: American Customer Satisfaction Index)

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Business News

As a result of Lowe’s strategy, the company recently announced a partnership with Petco to offer pet products in select stores, expanding their product range and tapping into the growing pet care market.

Product Launch

A new line of eco-friendly home improvement products, aiming to cater to environmentally conscious consumers was launched after studying Lowe’s target market.

Marketing News

Lowe’s marketing strategy unveiled its new marketing campaign, ‘Home Starts Here,’ which focused on inspiring customers to take on DIY projects by highlighting its comprehensive product range. Want to understand the factors that a company considers while designing the marketing strategy of Lowes? Check out our courses on digital marketing online to understand this from a marketer’s point of view.

Celebrity News

Lowe’s marketing strategy also incorporated collaborating with renowned home improvement TV personalities to promote their new product lines and engage with a broader audience.

 

Buyer Persona of Lowes Target Market

A buyer persona provides a detailed profile of Lowes’s ideal customer. Lowe’s marketing strategy is based on its audience’s motivations, preferences, challenges, and online activities.

Based on the detailed breakdown, it’s no surprise that the marketing strategy of Lowes uses social media platforms like Instagram and Facebook to execute their marketing campaigns. Here, Lowes’s marketing strategy can integrate gardening and interior design to match the requirements of its target audience.

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Marketing Strategy of Lowe’s 

Segmentation, Targeting and Positioning

The company supplies wide-ranging products like Home appliances, tools, hardware, builders’ hardware, lumber, building materials, paint, plumbing, and flooring. It has also started offering custom-made products to suit the specific needs of its customers. In addition to this, the company has introduced bathroom ware, garden supplies, plants, and housewares.

Lowe’s target audience is typically individuals aged 24-36 with higher incomes who can afford Lowe’s house consulting and installation services.

Lowe’s marketing strategy has positioned the company quite effectively in the hearts of its target audience by introducing do-it-yourself (DIY) products. It has established an efficient distribution network across the United States and Canada resulting in quick service delivery. One such marketing strategy of Lowe’s is the introduction of a special credit card that offers a 5% discount on every purchase its customers make.

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Digital Marketing Strategies

Social media marketing

Lowe’s, a leading home improvement retailer founded in 1946, has a strong focus on providing customers with quality products and services. To better connect with its audience, the company has invested heavily in social media.

Lowe’s marketing strategy has helped the company gain a significant following across various platforms, with Facebook being its most popular channel, followed by YouTube. The retailer primarily shares DIY tutorials, engaging short videos, and updates about new products. This content-driven approach positions Lowe’s as a valuable resource for homeowners seeking inspiration and practical advice.

Lowe’s Social Media Following:

• Facebook: 4.73 million followers
• YouTube: 1.13 million subscribers
• Instagram: 863 thousand followers
• LinkedIn: 586 thousand followers
• Twitter: 293.6 thousand followers

SEO Strategies

When it comes to SEO strategies it is believed that if the number of keywords is below 500 then the strategy is bad and when above 1000 it is good and when it’s 10000+ then the SEO strategy used by the company is amazing. Lowes’s website www.Lowe’s.com has about 15 million organic keywords (Keywords that get free traffic to a company) which is exceptionally good, indicating that Lowe’s has been using digital marketing in the most effective way possible.

The website has about monthly traffic (number of visits a website receives every month) of 91 million which shows that Lowe’s marketing strategy is taking SEO seriously.
People across the country, especially the ones residing in Delhi and South Delhi want to explore SEO (an important component of digital marketing). This has led them to search for information using the keywords, ‘digital marketing courses in delhi’ and ‘digital marketing courses in south delhi’.

Influencer marketing

As a part of its influencer marketing, Lowe’s marketing strategy has started a ‘House of Style’ curations programme. This programme features popular influencers like Jen Im who has about 1.7M followers on Instagram.
As decided by Lowe’s marketing strategy, the company has recently also partnered with DJ, author, and wellness influencer Hannah Bronfman as part of its ‘House of Curators’ series, in which she selected Lowe’s home décor pieces and promoted them on her Instagram handle having about 899K followers.

As a part of Lowe’s strategy, these influencers select Lowe’s products to form a curation and later promote them on their platform. This helps in boosting sales of the company.

E-commerce Strategies

Before 2018 Lowe’s didn’t exactly have a strong e-commerce strategy. But it has recently made lots of improvements to its decade-old website. Now the website provides a ‘shop’ option along with a wide range of products. Each product has details like its picture, price, reviews, description, and also instruction manuals. When bought online Lowe’s marketing strategy ensures that customers receive free shipping on orders of USD 45 or more.

Mobile Apps

The company launched its own mobile app called ‘Lowe’s’. This app works similarly to its e-commerce website but offers a PRO version. This pro version gives the exact item location at a nearby store plus also gives information about in-stock quantities. It helps the user keep track of pending and completed transactions. With this app, you can search by taking a picture, using your voice, or scanning barcodes making the search for customers much quicker and easier. The app is for both iOS and Android users and has about 4.7 ratings.

Content Marketing Strategies

Lowes’s marketing strategy mainly focuses on video content. It has also started short video series like ‘Made in Minute’, ‘Flipside’, and ‘Fix in Six’ that deliver entertaining and instructional content. Their posts include instructions on how to set up their products, do-it-yourself (DIY) ideas, social awareness, etc.

Lowe’s is always quick to publish original content on social media. It also responds to comments of people on Facebook showing the company’s dedication. Aside from videos, they also engage in blogging tips for home decor and repairs. They make their customers aware of their new product releases through their official site, mobile app, and their social handles.

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Marketing and Advertising Campaigns Designed by Lowes’s Marketing Strategy

1. Lowe’s x NYFW: Home Meets Fashion

As part of Lowe’s strategy, the company recently made efforts to diversify the company’s marketing practices by partnering with designers like Jason Wu, Christian Siriano, and Rebecca Minkoff. New York Fashion Week 2020 included the clothes and the runway featured Lowe’s home décor items as runway backgrounds.

This Lowes advertising campaign was such a huge success that the company became the most talked about brand of the week. About 8600 mentions were seen on social media. This also resulted in Ad Age ranking Lowe’s as the no.3 marketers of the year making the brand a fashionable home décor destination.

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2. ‘Lowe’s 100’

The company emerged as an early marketer during the pandemic as most people were secluded in their homes. It asked its customers to create thank you signs to display in their homes and yards as it serves as a means to thank the healthcare industry during COVID-19. It also hosted a curbside trick-or-treat during Halloween. Lowe’s has recently also started an initiative called ‘Lowe’s 100’ through which it launched its exclusive paint line.

Celebrating its 100 years of improvement. This involved painting murals by different artists outside Lowe’s stores. This Lowe’s marketing campaign helped the company to gain more followers on social platforms and market their products even when people were at home. The brand has gained customers from all sorts of niche audiences like artists and children.

3. ‘Home Team’

This market campaign of Lowe’s is quite groundbreaking. It has partnered with a group of NFL athletes for the second time. The marketing strategy of Lowes hosted a ‘Home team’ programme featuring Super Bowl MVP and retired New Orleans Saints quarterback Drew Brees. In this program, all NFL players shared their journeys of developing their communities and houses by using Lowe’s products and services. Lowe’s marketing strategy promoted DIY projects among the fans.

This marketing strategy of Lowes turned out to be quite successful as it led to fan engagement and empowerment of the community homes. In addition to this, it also tapped into new audiences i.e. sportsmen and sports fans. As a result, more fans became aware of Lowe’s services boosting its sales.
Amazed by how Lowes marketing campaign delivers results? You might also find it interesting to study the Ikea marketing strategy.

 

Marketing Strategy of Lowes That Failed

Lowes’s marketing strategy, the ‘DIY Done Right’ campaign aimed to promote Lowe’s as the go-to store for do-it-yourself projects, highlighting its wide range of tools and materials for home improvement enthusiasts. Lowes marketing campaign featured various ads showcasing DIY projects and emphasising the ease and convenience of shopping at Lowe’s.

Issue: Lowe’s faced backlash for a campaign that seemed to stereotype DIY enthusiasts, condescendingly portraying them.

Backlash: The campaign was criticised for being tone-deaf and out of touch with the target audience’s values and interests.

Response: Lowes marketing quickly pulled the campaign and issued a public apology, committing to more inclusive and respectful marketing strategies in the future.

 

Top Competitors That Influence the Marketing Strategy of Lowes

Lowes is not the only home improvement retailer in this industry. Many other players can have a huge impact on Lowe’s marketing strategy:

• Home Depot: The largest home improvement retailer in the US, known for its extensive product range and competitive pricing.
• Menards: A regional competitor offering a wide variety of home improvement products at low prices.
• Ace Hardware: A retailer with a strong focus on customer service and a neighbourhood store feel.
• True Value: Another hardware retailer emphasising local store ownership and personalised service.
• Walmart: Though primarily a general retailer, Walmart competes with Lowe’s in the home improvement category through its extensive product offerings and low prices.

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Conclusion

Lowe’s strategy has helped the company build a strong brand reputation through its commitment to community and innovative marketing strategies. By supporting healthcare workers during the pandemic and creating engaging DIY content, the company has fostered a loyal customer base. Expanding its reach to a diverse audience has contributed to a significant increase in customer traffic, outpacing competitor Home Depot by 20%.

Lowe’s business strategy has helped it further solidify its position as a leader in the home improvement industry with the launch of its mobile app and exclusive credit card offering 5% discounts. These additions enhance customer convenience and loyalty, solidifying Lowe’s place as the world’s second-largest hardware chain.

We encourage you to share your thoughts on Lowe’s marketing success in the comments below.

 

Learning From Other Brands

In comparison to other brands, the FMCG digital marketing strategy emphasises leveraging digital channels to increase brand visibility and consumer engagement, showcasing how a focus on online presence can drive customer loyalty and market leadership.

Similarly, the Nestle marketing strategy focuses on extensive advertising, product innovation, and strategic partnerships to maintain its strong market presence and cater to the evolving needs of consumers.

Additionally, the marketing mix of Samsung highlights the company’s approach to product diversification, competitive pricing, extensive distribution networks, and effective promotional campaigns, illustrating how a comprehensive marketing strategy can help brands excel in their respective industries. These examples illustrate how well-crafted marketing strategies can help brands achieve significant success and leadership in the market.