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Martha Industry Trends

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Presentation on theme: "Martha Industry Trends"— Presentation transcript:

1 Martha Industry Trends

2 DIY Slowing of sales growth in this industry due to slowing home sales
Home improvement channel showed slowdown during 2001 and 02, but followed by improvement in sales, peaked in ; DIY retail market slowed down markedly in 2006 Slow housing market due to rising interest rates Home centers suffered worst slowdown. Through 2006, main drivers were growing home ownership rates, explosion of the “do it yourself” market in TV and home retail centers DIY market saturated in 2006 within TV and home centers; new strategies adopted, internet advertising, installation services, Consolidation in industry As baby boomers age, they spend less money on home-related goods; this makes sense for martha trying to pick up younger crowd

3 Costco Highest end of general merchandise category
Food has consistently made up over 30% of their revenue in past 3 years Costco’s merchandising strategy is to provide a broad range of high quality products at prices consistently lower than what could be obtained through supermarkets, superstores, and other competitors. An important aspect to this strategy is that Costco only carries products in which Costco can provide a significant cost saving to members. In 2004, 327 locations, 33 more locations than in 2002

4 costco

5 High-Income Women Women who earn over 75K
Only 4% of women over 15 yrs old The top three media/communications activities—watching television, listening to radio, talking on a cell phone—were the same for all women. The difference is that high-income women, especially under-45s, are spending significantly more time with new technology and non-traditional media outlets. They are more likely than all women to watch/record programs on a TiVo/DVR, browse social networks, read blogs, and use smartphones and instant messaging. Future Trends Women will be more educated; income will increase. Women’s income and related power will grow. More high-income women expect to make major purchases and decisions in the next 12 months compared to other adults. Some 18% of high-income women expect to buy a new home in the next 12 months, compared to 7% of all adult respondents and 9% of all women respondents 7% of high-income women also plan to sell or change their home Similarly, nearly three in ten high-income women are expecting to make a major home improvement, compared to less than two in ten adults or all women. Target, Macy’s, Kohl’s and Costco all outperform in attracting high-income women compared to all shoppers.

6 Sources Mintel, Marketing to High-income Women - US - May Tables Warehouse Club Buying - US - February 2005 – Tables DIY Retailing - US - March Tables


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