CW HOME DEPOT On Site Observation

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RIZAL TECHNOLOGICAL UNIVERSITY

“PARKER PEN COMPANY”


CASE STUDY ANALYSIS

Submitted by:
Sherren Marie F. Nala

December 10 , 2019
Prof.
RIZAL TECHNOLOGICAL UNIVERSITY

TABLE OF CONTENTS

I.Time Frame

II.Perspective

 Top Management

 Consultant

III.Statement Of the Problem

IV.Objectives

V.Areas of Consideration

 Swot Analysis

 Computations

VI.Alternative Courses of Action (ACA)

VII.Recommendation

VIII.Action Plan
RIZAL TECHNOLOGICAL UNIVERSITY

Background on the problem

This research aims to investigate the different consumer behavior of costumers inside CW
home depot. What is the market segmentation of consumers buying in CW home depot, What are
the different activities and action of the consumers while entering and roaming the CW home depot,
how long they spend their time in purchasing product in CW Home Depot and what are the
commonly products that are being purchase by the consumers until they check out. It is quite
difficult to observe consumers, the researcher follow the consumer in order to identify consumer’s
behavior concept without asking nor taking videos, pictures and also there is an instances that you
might be caught so the researchers should not be look suspicious and be careful while observing
since consumers has different behaviors. On-site observations are one of the most effective tools
used wherein the researchers personally goes to the site and discovers the functioning of the system.
With the help of on-site observations the researchers can gain firsthand knowledge of the activities,
operations and processes.

Business and Market being studied

Founded in 2003, CW Marketing & Development Corporation has introduced the first
store-within-store retail concept wherein everything you need to build or renovate your home is all
under one roof. The store’s unique platform offers a variety of building, finishing and furnishing
products in a one stop shop set-up. Similar to a shopping mall, CW Home Depot has its own
department store and also has a wide range of specialty stores that cater to a more specific
requirement.
All CW Home Depot outlets are strategically laid out into 4 divisions namely the Home
Builders’ Superstore or its D-I-Y Section, the Home Interior Superstore, the Home Appliance
Superstore and a roster of specialty stores.
In October 20, 2004, CW Home Depot launched its flagship branch “Ortigas Home Depot”
to the public. Its unparalleled shopping convenience and vast product selection rapidly gained
prominence to both homeowners and builders which resulted to opening several more outlets.
CW Home Depot has opened 7 more branches to cater to the growing demand of quality
building and construction products in the country. It opened its 2nd branch on January 25, 2006 in
Westgate, Alabang then a year after its Manila Bay branch on June 19, 2007. In 2009, two more
branches were opened, its Balintawak Branch on January 27, 2009 and its San Fernando, Pampanga
Branch on May 25, 2009.
The CW Group continued in moving to different strategic locations in bringing its unique
retail platform around Metro Manila. In May 9, 2011, its 6th branch was opened in Makati and after
a year, CW Group has partnered with the prominent retail giant, SM Group, and opened its Las
Piñas branch alongside with SM Hypermarket on May 30, 2012.The latest addition to its roster of
stores was recently opened to public last September 12, 2013 in Commonwealth.
CW Home Depot is a joint venture of Cebu Oversea Hardware Company Inc. and West
Point Industrial Sales Co. Inc. Cebu Oversea Hardware Co. (COH) is considered a visionary
company with over 50 years of dedicated service to the construction industry. Today, it is
considered one of the biggest hardware, construction and finishing material suppliers and had been
ranked as one of the top 1,000 corporations in the Philippines.
West Point Industrial Sales Co., Inc. on the other hand, is a private corporation based in
Metro its beginning in 1994, the company has been supplying the Philippine consumers with high 3
quality and affordable products for various construction needs. (cwhomedepot.com)
Describe the purpose of the study
RIZAL TECHNOLOGICAL UNIVERSITY

 To determine the consumer behavior inside the CW Home Depot


 To determine the consumers commonly purchase
 To identify how long they spend their time in purchasing product in CW Home Depot
 To create marketing implication

I. Procedure
The researchers assign to have an on-site observation on consumer behavior in Home depot.
First, researchers conduct a group meeting for on-site observation and to discuss and prepare about
what shop of Home depot will conduct observations and the researchers decide to pick one of the
known home depot her in Philippines the CW Home Depot which is located at Ortigas Center,
Pasig City. Second, researchers planned on how they observe the consumer inside the home depot.
The researchers divided into two groups with different tasks for observation. Third, before
conducting observation researchers make checklist containing the steps on how they observe
consumer behavior inside CW home depot. The day of observation inside CW home depot
observers pick consumer they want to observe. Fourth, the first day is Wednesday October 17, 2018
there have four observers are assign to go in home depot they observe 12 subjects 6 males and 6
females on that day and the second day Saturday October 21, 2018 there have three observers are
assign to go in CW home depot during that day they observe 8 subjects 4 males and 4 females
consumer. Researchers write down or take note the demographics of customer, professions, the
commonly product that consumer purchased, the actions or behaviors of consumer before, during
and after consumption and also researchers write down the time that consumer come in to CW
home depot and the time that consumer left to home depot to know how long the consumers decide,
pick or purchased a particular product. And lastly, after the observation in home depot the
researcher finally record, summarize, and encode the observations to the CW home depot.

II. Findings

Market Segmentation

Demographics
Age Profession
Gender 13- 18-24 25-34 35-44 45-54 55-64 65 and
17 above
Male 1 / Office worker
Male 2 / Call center
Male 3 / Office worker
Male 4 / Businessman
Male 5 / Manager
Male 6 / Businessman
Male 7 / Businessman
Male 8 / Entrepreneur
Male 9 / Businessman
Male 10 / Office worker
Female 1 / Manager
Female 2 / Office worker
RIZAL TECHNOLOGICAL UNIVERSITY 4

Female 3 / Housewife
Female 4 / Office worker
Female 5 / Office worker
Female 6 / Office worker
Female 7 / Office worker
Female 8 / Employee
Female 9 / Employee
Female 10 / businesswoman
0 1 3 5 11 0 0

Table 1

Table 1 show that Males who purchased at CW Home Depot are in the range 35-44 and
Business Manager is the dominant profession. On the other hand, shows that Females who
purchased at CW Home Depot are in the range 45-54 and Office worker is the dominant profession.
Also both male and female common age is in the range of 45-54 and office worker is their
profession.

Social Class
0%

15%

Upper Class

Middle Class

Lower Class

85%

Figure 1

Figure 1 show that out of 20 consumers both male and female are 15% upper class, 85%
middle class, and 0% lower class.
RIZAL TECHNOLOGICAL UNIVERSITY 5

Products commonly purchased by


Male

Tiles
30%

Light Bulb
70%

Figure 2

Figure 2 shows that out of 10 male consumers, 70% bought light bulb and the 30% bought
tiles.

Products commonly purchased by


Female

Tape
10%
Switch
10%
Bulb
10%
Paint
Screw 60%
10%

Figure 3

Figure 3 shows that out of 10 female consumers 60% bought paint, 10% of them
bought screw, bulb, switch and tape.
RIZAL TECHNOLOGICAL UNIVERSITY 6

Products commonly purchase both


Male and Female

Tape
10%

Switch
Light bulb
10%
30%

Screw
10%

Paint Tiles
20% 20%

Figure 4

Figure 4 shows that out of 20 consumers both male and female 30% of them bought light
bulbs, 20% bought tiles and paint while 10% bought screw switch and tape.

III. Conclusions and Marketing Implications

Conclusions

Founded in 2003, CW Marketing & Development Corporation has introduced the first
store-within-store retail concept wherein everything you need to build or renovate your home is all
under one roof. CW home depot store became helpful especially for those families starting to build
their own home and want to buy materials that they can use. With CW everything you need is
instantly their different kinds or types of furniture, furnishing, tools use for repair, home interior,
home appliance, etc. you just need to pick the right product that will satisfy your needs or wants.
Assure that the product is in good quality, test its durability and it has affordable price. The
researchers conducted an on-site observation to be able to know consumer’s behavior that can also
help marketers to make right marketing strategies that is much preferred by the consumers. The
researchers conclude that most of the male who purchased at CW Home Depot is in the range 35-44
years of age. Out of 10 male, 5 of them are in between of the said range and business manager is
their professions also their commonly purchasing products are tiles and light bulb. On the other
hand, female who purchased at CW Home Depot is in the range 45-54 years of age. Out of 10
female in the population, 7 of them are in between of the said range and office worker is their
profession. The researchers conclude that when a male is buying a product in home depot, they go
directly to the product they need. While, female on the other hand, took their time to roam around
the store and look for some stuffs even though they are not going to buy it. The researchers
RIZAL TECHNOLOGICAL UNIVERSITY 7

conclude that the most common customers that pass by in CW home depot are male, the reason
being is that they are familiar with a particular product that is needed to buy especially when
something need to repair in their home and they can easily identify what product they need. The
researchers also conclude that 6 out of 20 people who purchased at CW Home Depot consume 30
minutes and above in choosing a product and most of them are female consumers that roam around
the store first and they do not know enough information so they ask staffs to have knowledge about
the products that they are going to buy, they also examine and test the products first before deciding
if they are going to buy it. While on the other hand, male consumers do not stay that long in the
store, they already have enough knowledge and they can easily decide on what products they
needed and going to purchase. When choosing a product, consumers use their phones for searching
information and they also took time asking the staffs to help them choose the best products. The
researchers conclude that most of them consume more time to know and choose products that are
high in quality and they want assurance that those products are worth to pay. Lastly, the researchers
concluded that most of the consumers use their mobile phones while roaming around and
purchasing product, the reason being is that they searching for good products, the list of products
they need is in their phone and they want to entertain themselves while purchasing a product. As
researchers or marketers we need to consider all this aspect for us to have a better strategic plan and
to satisfy wants and needs of consumers to build a strong relationship.

Marketing Implications

As the researchers observed to the CW home depot, most of the consumer used their
cellphone while buying or choosing the product that they are going to purchase. Marketing
implications for this is that market should put internet or Wi-Fi that can help customers if they want
to search for the best products. Next, the researchers also suggest that the market should create
Apps for the consumer so when they come back they can easily choose what they want. Lastly,
assigned staff to their perspective place so that the customers could easily approach them. And for
the manager of the store, they can put feedback box for their customers so that they can hear the
voice and suggestions of their customers that can help for their improvement and also to monitor
what their staff doing inside.

IV. Recommendation
The researchers observe that the CW Home Depot have many staffs, to the point that some
staffs/employees are just sitting, and they’re just in one place that make them become unproductive
employee especially the female staffs. We also think that the management or the managers should
focus on reminding the employees to be aware on their action when they’re inside the workplace,
avoid shouting this act is certifiably inappropriate or misbehavior for customers. Other things we
observed inside the CW Home Depot was the time being spend by the customers when paying for
the things they are planning to buy. We also observed that the consumers tend to use their phones
when inside the CW Home Depot, we would like to recommend having a Wi-Fi connection for the
customers, and also for advertisement, it can be an advantage to promote their services and
products. Another recommendation we would like to propose is the improvement of their cashier
and putting male staffs/employees to help the cashier, and also the acts of the employees/staffs
should be appropriate inside the workplace for them to look more approachable for the customers,
the management/managers must be strict when it comes to these things.
RIZAL TECHNOLOGICAL UNIVERSITY 8

V. Limitations and Possible follow-ups

The limitation of the studies focuses on:


 Home Depot owners, employees and costumer. Their market segmentation, commonly
purchased products, activities, action during consumption, and consumer behavior.

Follow-ups:
 Why consumers used smartphones/ mobile phones during consumption?
Based on the researchers observation consumers tend to use phones for them to search what
the better products are too purchased.
 Why majority of the consumers does purchase lights?
According to the researchers observation CW Home Depot have variety of lights that can
attract consumers to choose and buy for what kind of lights they want.

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