Lowe s Perspective on Live Goods. Brad Julian

Transcription

1 Lowe s Perspective on Live Goods Brad Julian 1

2 Today s Agenda Today s customer / Tomorrow s customer Lowe s go to market plan Omni Channel Retailing The importance of technology, data and people The next big thing 2

3 Today s Customer / Tomorrow s Customer Generations: Population Median Income Baby Boomers 80 Million $63,000 Per year Gen X 40 Million $57,000 Per year Millennial 86 Million $25,000 Per year 3

4 Today s Customer / Tomorrow s Customer Hispanic Population in the US 4

5 Today s Customer / Tomorrow s Customer 5

6 Today s Customer / Tomorrow s Customer 6

7 Today s Customer / Tomorrow s Customer The Consumer s Mindset Today: The Lowe s trend of The Great Consumer Reset will likely have long-lasting implications as Americans focus on savings while carefully examining needs. Many Americans were scarred during the recession and have been careful not to wind up in a similar situation in the future. Housing rentals, car leases, and ride-sharing allow consumers to receive the benefits of shelter and transportation two top household expenses while never being far away from an opportunity to adjust the budget, as necessary. With Americans unsure of what may lie ahead, the notion of a 15- or 30-year mortgage with a regimented monthly payment likely doesn t offer the necessary comforts of flexibility and short-term options. Experiences such as travel and dining have been winners as consumers create lifelong memories while material goods such as electronics and clothing diminish in value post-purchase. 7

8 Today s Customer / Tomorrow s Customer 8

9 Today s Customer / Tomorrow s Customer 9

10 Today s Customer / Tomorrow s Customer What about the Lawn and Garden Consumer? Landscape / Gardening / Horticulture..viewed as work. Design / Outdoor Space / Zen.application based logic. Buying hurdles? Price? Size? Variety? Color? No... Afraid to begin.fear of failure. Information is key.inspire me, show me how, tell me when, help me along the way and give me a platform to brag. 10

11 11

12 Lowe s Go to Market Plan Project based Focused on innovation and differentiation Centered on Omni Channel Retailing All this with a healthy dose of QUALITY plants at a value. Definition of value Is quality, innovation, diverse assortment and consumer awareness. 12

13 Lowe s Go to Market Plan Project Life Cycle 13

14 Lowe s Go to Market Plan Innovation and Differentiation 14

15 Innovation and Differentiation Why is innovation important? What is Lowe s looking for? Project Life Cycle Need footer language from legal. 15

16 Innovation and Differentiation Why is Innovation Important? Supports Lowe s Purpose Key part of the project cycle Need footer language from legal. 16

17 Innovation and Differentiation What is Lowe s looking for? Cool.New.Never seen before or a simple improvement (IDEAS!) Measured shared risk Innovation that supports our purpose. Simple Ideas Need footer language from legal. 17

18 How do Growers Innovate???? R&D!!!! Why should growers worry about R&D? Because the purchasing decision dynamic has changed. It s not just about plants anymore. Customer s want simple solutions and innovative experiences How product finishes in the customer s garden must become the growers concern. 18

19 Innovation and Differentiation Creating a difference for the customer experience Need footer language from legal. 19

20 Innovation and Differentiation Creating a different customer experience Need footer language from legal. 20

21 OMNI Channel Retailing Position Lowe s as the leading lawn and garden project authority that inspires customers and guides them through their projects by offering a wide selection of regionally chosen, quality live goods and all the products to complete their project. This project will concentrate on the beauty and versatility of roses. They don t have to be high maintenance. 21

22 The Importance of technology and data 22

23 The Importance of technology, data and people Technology: Do you know where all your carts are? Do you know what a geo fence is? How accurate is your inventory? Ever heard of RFID? What is the cost of a robot? What is the return? Can a drone spray your crops? Take your inventory? Does your company have an active strategy to replace labor with technology? 23

24 The Importance of technology, data and people Data How much data is enough? Does color matter? Is turn data commonly used by your teams? Does historical weather affect your forecast? How much impact do promotions have? Is social media having an impact on promotions? Do you understand the term market basket? Do you understand what to grow? When to grow and how much? 24

25 The Importance of technology, data and people People Regarding your account teams agilities Do you have a problem solver? An analyzer? A Big idea? How productive is your labor? Can you measure it? How productive is your labor? Do you use lean flow systems? Is there a clear session plan? What does diversity mean to you and your key management team? 25

26 The Importance of technology, data and people What is Lowe s doing? Investing! Product Projects Hand Held Robots 26

27 The Importance of technology, data and people Lowe s Data focus? Forecasting Weather Impact Dashboards Labor 27

28 The Importance of technology, data and people How is Lowe s impacting people and performance? With purpose..the Lowe s purpose is simple.to help people love where they live. Combine. Strategy, Operating Model, Leadership and with a simple Purpose focused on helping people love where they live. Work in a matrix organization and remove silos. 28

29 Key Takeaways Know the customer, know the trends provide solutions not just plants. Developing product information must become a natural part of doing business. The project cycle begins with innovation. Encourage innovation at all levels of your organization. R&D is a must. Understand how Omni Channel Retailing works and how you are involved. View technology as an investment. Understand the impact of data management on your company. Are people your most valuable asset? Lowe s Vendor Focus. Quality Consumer focused Good Stewards of the Environment Partnership Logistics capable Cap X plus Omni Channel Marketing Trends Solutions Oriented 29

30 Leave here know this.you can t spell flowers without Lowe s.. Questions? Need footer language from legal. 30