using integrated media to reach a younger consumer

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© MARC USA, 2011 — All Rights Reserved Using Integrated Marketing to Reach Younger Consumers Carol Wentworth, VP Marketing Jean McLaren, EVP, Chief Marketing Officer, MARC USA

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Presentation shows how True Value Hardware used integrated media to reach a younger consumer

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Page 1: Using Integrated Media to Reach a Younger Consumer

© MARC USA, 2011 — All Rights Reserved

Using Integrated Marketing to

Reach Younger Consumers

Carol Wentworth, VP Marketing

Jean McLaren, EVP, Chief Marketing Officer, MARC USA

Page 2: Using Integrated Media to Reach a Younger Consumer

© MARC USA, 2011 — All Rights Reserved

Current True

Value Customer

• 53% of True Value customers are over 50

• 77% of loyalty program members are over 45

Page 3: Using Integrated Media to Reach a Younger Consumer

© MARC USA, 2011 — All Rights Reserved

Impact of

Boomers is

Declining

$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

$1,700

2008 2009 2010

25-34

45-54

Source: True Value Consumer Tracking Study

Page 4: Using Integrated Media to Reach a Younger Consumer

© MARC USA, 2011 — All Rights Reserved

X and Y and

Home

Improvement

• Many Gen X and Gen Yers are

becoming first-time homeowners

Source: True Value Consumer Tracking Study

Page 5: Using Integrated Media to Reach a Younger Consumer

© MARC USA, 2011 — All Rights Reserved

Gen X/Y and the

BIG BOXES • In 2010, Lowe’s and Depot had

almost 75% of share of Home

Improvement spend among 25-44

year-olds

• Awareness of True Value is

significantly lower with Gen X and Y

vs. Boomers

Source: True Value Consumer Tracking Study

Page 6: Using Integrated Media to Reach a Younger Consumer

Go-To for Gen X?

Page 7: Using Integrated Media to Reach a Younger Consumer

© MARC USA, 2011 — All Rights Reserved

Not your Fathers

True Value • True Value introduced an innovative

store format: Destination True Value

• Completely redesigned with the DIY

Enthusiast in mind

• More than 3 Million retail square feet

remodeled since 2009

Page 8: Using Integrated Media to Reach a Younger Consumer

Reactions to DTV

Page 9: Using Integrated Media to Reach a Younger Consumer

© MARC USA, 2011 — All Rights Reserved

DIY Enthusiast • Very interested and involved in

improving their home

• Do the work themselves; not because

they have to – because they want to

• Spend an average of $2K/year on

Home Improvement projects

Page 10: Using Integrated Media to Reach a Younger Consumer

© MARC USA, 2011 — All Rights Reserved

Information

Please! • Don’t know how to perform home

repairs/ improvements

• Don’t have the right tools

• Feel largely ignored by retailers, often

turn to parents for help or advice

• Want easy, simple instructions that

aren’t condescending

• Appreciate step-by-step and/or visual

guidance (pictures, videos)

Page 11: Using Integrated Media to Reach a Younger Consumer

© MARC USA, 2011 — All Rights Reserved

Questions?

Answered. • Opportunity to position the brand as a

resource for the DIY enthusiasts

• Leverage vast, local retailer

knowledge and be the ‘go to’ place

for the right advice

Page 12: Using Integrated Media to Reach a Younger Consumer

Gen Y Consumes Media Differently

Gen Y Boomers

80

64

116

48

hours

hours

# 9 15

# 10 8

Monthly Media Consumption

Source: MRI data

Page 13: Using Integrated Media to Reach a Younger Consumer

© MARC USA, 2011 — All Rights Reserved

Awareness and

Engagement • Differences in media consumption

necessitated a more robust media mix,

including: • Traditional media (TV, radio, print) to deliver

awareness

• Experiental media (rich microsites, project

advice, how to videos) to deliver an engaging

brand experience

Page 14: Using Integrated Media to Reach a Younger Consumer

© MARC USA, 2011 — All Rights Reserved

Not just

integrated

media,

“blended” media

Page 15: Using Integrated Media to Reach a Younger Consumer

‘Duel’ Focuses on Experienced DIYer

Page 16: Using Integrated Media to Reach a Younger Consumer

‘Sheepish’ Features Emerging DIYer

Page 17: Using Integrated Media to Reach a Younger Consumer

© MARC USA, 2011 — All Rights Reserved

StartRightStartHere

features advice, tips

and tools to

complete all kinds

of projects

Page 18: Using Integrated Media to Reach a Younger Consumer

Hardwarian Videos

Page 19: Using Integrated Media to Reach a Younger Consumer

© MARC USA, 2011 — All Rights Reserved

QR code on

National Print

links to True

Value Mobile

Portal

Page 20: Using Integrated Media to Reach a Younger Consumer

© MARC USA, 2011 — All Rights Reserved

Mobile-optimized

websites provide

tips, advice and

inspiration

TrueValuePaint.com StartRightStartHere.com

Page 21: Using Integrated Media to Reach a Younger Consumer

© MARC USA, 2011 — All Rights Reserved

QR code on National

$5 off $25 coupon

links to store finder

on mobile site

Page 22: Using Integrated Media to Reach a Younger Consumer

© MARC USA, 2011 — All Rights Reserved

Email directs

DIYer to Videos

Page 23: Using Integrated Media to Reach a Younger Consumer

© MARC USA, 2011 — All Rights Reserved

Circulars direct

consumers to

site for project

advice and tips

Page 24: Using Integrated Media to Reach a Younger Consumer

© MARC USA, 2011 — All Rights Reserved

Circulars drive

consumers to

site for

information and

e-commerce

Page 25: Using Integrated Media to Reach a Younger Consumer

© MARC USA, 2011 — All Rights Reserved

QR Codes on

in-store signage

lead to site for

tips and advice

Page 26: Using Integrated Media to Reach a Younger Consumer

© MARC USA, 2011 — All Rights Reserved

Extending

the Brand to

Emerging

DIYers

DIY True Stories contest features consumer videos

Winners receive cash and expert Hardwarian advice to

finish their DIY project

Entirely Facebook based

2x increase contest entries (vs. 2010)

Page 27: Using Integrated Media to Reach a Younger Consumer

Web of Consumer Engagement

Page 28: Using Integrated Media to Reach a Younger Consumer

© MARC USA, 2011 — All Rights Reserved

Closing

Thoughts

• Fundamental emotional connections can

transcend demographics and even lifestage

• While mass media are still effective, to reach

Millennials one-to-one media such as mobile

and social are essential

• Think “blended” rather than integrated. One

touchpoint should lead to the next seamlessly

and leverage the consumer’s behavior.

• Customize your campaign to best suit the

purpose of each touchpoint.

Page 29: Using Integrated Media to Reach a Younger Consumer

© MARC USA, 2011 — All Rights Reserved

Jean McLaren

MARC USA

EVP, Chief Marketing Officer

325 N. Lasalle, Suite 750

Chicago, IL 60654

T 312-494-7862

M 312-933-4538

Page 30: Using Integrated Media to Reach a Younger Consumer

©2011 MARC USA All rights reserved

All ideas, concepts, strategies, trademarks and materials that we provide to you are being presented for the sole purpose of allowing you to determine whether you wish to use the presentation concepts and materials and to engage MARC USA’s ongoing services. You acknowledge and agree that the presentation concepts and materials are and will remain our property (regardless of whether the physical embodiment of the creative work is in Ruby Tuesday’s possession in the form of copy, artwork, etc.), and MARC USA shall retain all right, title, and interest therein. If you decide that you would like to use the presentation concepts and materials in any manner, or if you would like to engage our ongoing services as your agency, we will negotiate in good faith and enter into a separate agreement setting forth the terms of our services, including the amount of our compensation.