Brand Report Card: Home Depot vs. Lowes

3847 Words16 Pages
Jose Montero - MGT 612, Strategic Brand Management
Professor Jenny Darroch, Spring 2008, Claremont Graduate University, CA
Brand Report Card
May 5, 2008
Copyright 2008. Jose H. Montero. All rights reserved.

Brand Report Card: Home Depot vs. Lowe’s

The Brand Report Card, devise d by Kevin L. Keller, is a tool for assessing a brand’s performance by rating brands along ten key traits that Keller believes are shared by the world’s strongest brands. Strong brands possess very high brand equity and the Brand Report Card is one tool to help identify things the brand is doing well and areas for improvement. When done on competitive brands, the Brand Report Card can tell us how our brand measures up to the competition. In this
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Either company has never employed me and so I have no personal exposure to in-house training, documents, policies or employee culture. My assessment of the brands is purely from a shopper’s perspective. For each of Keller’s key ten brand report card characteristics I will rate each brand on a scale of 1 to 10 (1 = extremely poor; 10 = extremely good).

1. Managers understand what the brand means to consumers. A. Home Depot score: 6 B. Lowe’s score: 9

While I neither personally know nor got a chance to interview any Home Depot managers at local stores or corporate headquarters, Home Depot’s eroding market share is a clear indication that management is no longer well aligned with consumer’s perceptions, expectations and beliefs about The Home Depot brand. A May 4, 2008 article in the investor website SeekingAlpha.com entitled “Home Depot Slows Down: Still Losing Customers to Lowe’s” argues that for several years The Home Depot management invested heavily in new store openings (capital spending) at the expense of employee training, store upkeep and inventory. As a shopper I have experienced this classic compromise of quality for the benefit of top-line revenue growth. I witnessed the degradation of store caliber as my local Home Depot store became progressively dirtier and more
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