Category Potential Among Female Shoppers - Essay Example

Category Potential among Female Shoppers Table of Contents Discuss the preferences of both men and women regarding shopping at Lowe's as comparedto Home Depot 3 2. Explain the differences in men's and women's attitudes about product selection and pricing at Lowe's and Home Depot. 4 3. Discuss whether Lowe's should have distinct merchandising strategies for men and women shoppers. 5 4. Explain the criteria that Lowe's should use in selecting new suppliers. 5 References 7 1. Discuss the preferences of both men and women regarding shopping at Lowe's as compared to Home Depot Preferences of male and female customers have always been different regarding shopping.

According to the previous studies, men and women behave uniquely in relation to consumption that can be observed apparently in the case of Lowe’s and Home Depot (Wharton School, 2008). Notably, Lowe’s as well as Home Depot as marketers relate to the category of home appliances, accessories and furniture in the global home improvement industry. However, there are few significant differences among these marketers in relation to customer service that influence the preferences of male and female customers (Tolunay & Et. Al., 2003).

For instance, Home Depot focuses on the pricing aspects with significant consideration along with highly effective management strategies in relation to its distribution channel, product range, and customer service. On the other hand, Lowe’s emphasizes on the presentation and decorum of its store and is identified to have a strong impact on the women (Tolunay & Et. Al., 2003). It is in this context that women are identified to prefer Lowe’s over Home Depot which was contradictory to the preferences of men (Matthews, 2003). 2. Explain the differences in men's and women's attitudes about product selection and pricing at Lowe's and Home Depot.

There are considerable differences in the buying behavior of men and women regarding the product selection and the pricing strategies adopted by the two retail giants in Home improvement industry, Lowe’s and Home Depot. The products marketed through Lowe’s stores are presented in an attractive and organized form that has been observed to create a strong and effective impression on women. It is due to this reason that most of the female customers prefer shopping at Lowe’s rather than Home Depot.

To be specific, the warehouse arrangement of Lowe’s supports the female customers’ search for their desired products faster with easier product selection process. Moreover, customers are served with world renowned brands in the home improvement sector which also plays a significant role in attracting women (Matthews, 2003). Contradictorily, when Lowe’s focuses on female customers to a large extent, the Home Depot considers men to be the most valuable customers. With this concern, the organization emphasizes on its pricing, quality and other aspects rather than its warehouse arrangements.

It is due to the fact that most of the male customers are identified to emphasize on buying the pre-determined products unlike females and thus do not consider the orderly form of the stores to be mandatory (Wharton School, 2008). 3. Discuss whether Lowe's should have distinct merchandising strategies for men and women shoppers. In the current phenomenon, Lowe’s provides prime consideration to the market segment comprising of female customers to a large extent. Its emphasis on the particular segment previously had proved to be highly effective and rewarding.

For instance, the strategy of Lowe’s to emphasize on the women segment paid off as target customers rewarded the company’s greater efficiency to earn $427 million in the fiscal year 2003. The revenue was evidently a significant rise from $339 million earned by the company in 2002 (Matthews, 2003). However, the share prices of the company were recorded to be lower in the fiscal year of 2010 in comparison to the previous years. To be mentioned, the growth rate in the net earnings earned by the company has significantly declined over the precedent five years from $3,105 millions in the year 2006 to $2,010 in the year 2010 (Lowe’s, 2011).

On the similar context, the current trend in the global home improvement industry depicts that men are also taking initiatives in relation to the home improvement projects along with the women (Wharton School, 2008). Therefore, it shall be highly profitable and advantageous for Lowe’s to focus both on women and men shoppers as its target market segment. This shall not only enhance its competency but also augment its future growth prospects as a market leader. 4. Explain the criteria that Lowe's should use in selecting new suppliers.

In its previous performances, Lowe’s was highly concerned with the aspect of customer satisfaction rather than prices. With this concern, the company provided significant consideration to its warehouse settings with an intention to develop the product searching process for customers to be more efficient and easier than other competitors. It also offered world renowned brands in the home improvement industry to satisfy its chief customer segment comprising of women belonging to the selected class of the society (Tolunay & Et. Al., 2003).

However, in order to expand its market segment including women and men both the company should follow some strategies to select its suppliers. For instance, as the men are identified to consider the aspects of price and quality with greater significance than women in the industry, Lowe’s should ensure quality products and the pricing strategies of its suppliers. This will not only assist the company to offer special pricing benefits to the customers but also maintain its key success factor of serving with quality products.

References Lowe’s, (2011). Lowe’s 2010 Annual Report. Selected Financial Data (Unaudited). Retrieved Online on August 10, 2011 from http://www.lowes.com/AboutLowes/AnnualReports/annual_report_10/financials/selected_financial_data.pdf Matthews, S., (2003). Women Customers Help Lowe's Gain on Home Depot. The New York Times Company. Retrieved Online on August 10, 2011 from http://www.boston.com/business/globe/articles/2003/11/23/women_customers_help_lowes_gain_on_home_depot/ Tolunay, C. & Et. Al., (2003).

Home Depot vs. Lowe’s: Financial Analysis and Comparison. Files. Retrieved Online on August 10, 2011 from http://www.cenktolunay.com/files/HomeDepotandLowes-paper.pdf Wharton School, (2008). 'Men Buy, Women Shop': The Sexes Have Different Priorities When Walking Down the Aisles. Knowledge@Wharton. Retrieved Online on August 10, 2011 from http://knowledge.wharton.upenn.edu/article.cfm?articleid=1848