Inspiring A Lifetime of Possibilities For Your Home

POINT OF VIEW FROM THERETAILER

POINT OF VIEW FROM THEPOINT OF VIEW FROM THERETAILERRETAILER

Presented to the Energy Star Participants

May 11, 2005

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Agenda

• Background• Program Dynamics• Retail Time Lines• Financial Impact• Communication & Marketing• Conclusions• Contact Information

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Eco-Options

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Background

• Eco-Options represents the external expression of The Home Depot’s market transformation strategy– FSC Certified Wood - source products from sustainable

resources– Mow Down Pollution - lawnmower recycling program– Beat The Heat - energy conscious cooling– Energy Wise/Energy Smarts - reducing customer’s energy bills– Garden Smarts - environmentally friendly lawn & garden options

• Eco Options– makes buying products & taking on projects convenient and

easy– allows the customer to take the environment into consideration– reduces/eliminates the sacrifices the consumer needs to make – provides a strong value proposition to the average consumer

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Program Dynamics

• Keep it simple for both customers and retailers• Incentive types

– give away

– instant rebate

– gift card rebate

– mail-in rebate

– basket rebate

• Breadth of Retailers involved– exclusivity or channel managed

• Broad range of more environmentally friendly products increases customer touch points

• Event elements for in store promotion

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Retail Time Lines

• Negotiating program elements– 30 to 90 days

• Contract negotiations (lawyer time)– 30 to 60 days

• Product procurement– 90-120 days for domestic or import vendors

– logistic challenges

– forecasting demand for promotion• contingency for exceeding expectations• exit strategy of excess

• Advertising & promotional area planning cycle– how far out does retailer plan & what flexibility do they

have to merchandise the product

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Financial Impact

• Cost to vendor– marketing materials

– funding the offers

– event support through initial set-up & in-store demos

– staging products & inventory risk

• Cost to retailer– marketing the program

– administration of the program

– inventory risk

– front end financing until reimbursed

– in store labour to stage & get product knowledge

– disposal costs for trade-in events

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Communication

• Initial communication to market place– press release -

integrated PR plan

– kick off with key players

– internal to the retailer to staff up

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Communication

• Initial communication to market place– press release - integrated PR

plan

– kick off with key players

– internal to the retailer to staff up

• Marketing communication– in-store POP and flyers

• Permanent in store presence at shelf, at end aisle

• Training & consumer seminars key to successful execution

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Communication

• Initial communication to market place– press release - integrated PR plan

– kick off with key players

– internal to the retailer to staff up

• Marketing communication– in-store POP and flyers

– web• & links to other environmental

organization

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Communication

• Initial communication to market place– press release - integrated PR

plan

– kick off with key players

– internal to the retailer to staff up

• Marketing communication– in-store POP and flyers

– web

– print, TV and radio

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Conclusion

• Keep it simple• Respect timelines of retailer’s planning cycles• Review and plan all costs up front• Communicate internally & externally• Sell a lot of Energy Star qualified products

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Contacts

Ian CleghornDivisional Product Merchant - Electrical

The Home Depot Canada

(416) 412-4218

Nick CowlingPublic Relations Manager

The Home Depot Canada

(416) 412-4142