Professional Documents
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6 Final
6 Final
Grainger strategy for growth is more focused to North America, Europe and Asia
because these continents have a large MRO market and fragmented competition.
Its strategy of growth involves a partnership with Bosch Tools in order to increase
the sales of power tools. Moreover, it involves to ensure their customers that they
get the right product for the job by creating value which in turn can be achieved
by building strong relationships, helping them manage inventory, and providing
safety and onsite training as well as a simple and consistent experience with
competitive priced products. This happens by using digital solutions and investing
on e-commerce and digital marketing.
Grainger.com has about 10 to 11 million visits per month where most of them are
from USA (94%), with Canada (1,3%) and India (0,65%) following. At the traffic
sources the first place goes to search engines (68,9%), then to directly go to the
website (27,9%), with referrals (1,1%), social (0.95%), displays (0,5%) and mail
(0,4%) have the next places. From social platform the most popular are
Facebook (35,6%), Youtube (31,5%), Reddit (17,8%), Linkedin (11,4%) and
Twitter (0,99%)
Commercial 14% 8%
Contractor 8% 8%
Retail/Wholesale 5% 7%
Healthcare - 6%
Transportation 6% 5%
Natural Resources 5% 4%
Resseler 4% -
As I mentioned earlier the 3 countries with the most customers were USA (94%),
Canada (1,3%) and India (0,65%). Grainger has more than 3,5 million active
customers and more than 5 thousand key products suppliers.
Some trends that can affect customer's purchasing patterns are according to
www.futuremarketinsights.com are:
Focus on product development
Power tools outpacing hand tools
Shift from corded to cordless
China dominates power tools market
High demand from professionals
Resurgence of construction industry in emergency nations
Lithium-ion batteries replacing Ni-Cd
In 2018 maintenance, repair and overhaul (MRO) market in North America was estimated
at 156,80 billion Us dollars and in the near future the Compound Annual Growth Rate
(CAGR) is expected to be 3,1%. It is expected that the revenues will reach the 194,4
billion Us dollars in 2025. This growth of the market is likely boosted by the product
penetration in the manufacturing industry which lead to the standardization of equipment
and services in critical operations and has been increased. Through this growth it is
estimated than North America will be the one who will drive the market for the next years
as the leading manufacturing region. The development of advanced manufacturing
techniques in the region along with the advent of e-commerce is considering to fuel
market growth.
Most of the manufacturing companies of North America have eliminate workplace
hazards and the risk of equipment failure by adopting advanced systems. They also
provide safety to their employees which makes them more productive which leads to
market growth. The segment that is the fastest-growing which demands the highest MRO
products from U.S and Canada is the chemical manufacturing industry.
The top MOR suppliers are:
Sonepar
Wolseley
Rexel
Wurth Group
W.W. Grainger
Grainger which is the company that we are examining reviewed 1,2 billion Us dollars in
2019 of its product assortment revenue, resulting in an incremental increase to revenue
and a better experience for customers, and it expects to complete another 1,6 billion Us
dollars in 2020. Over the next few years, Grainger expects to add to its assortment in a
selective manner based on current and future customer needs. In 2022, Grainger’s profit
margin is estimated to have expanded from 6.9% to 8.6%.
Grainger’s biggest competitors are:
o Fastenal
o Home Depot Supply
o McMaster-Carr
o MSC Industrial Direct
o Regional and local suppliers
2) Like it was mentioned in one of the videos we can infer that Bosch’s primary
customers are the ones we will have to do the purchase. That includes both
people who buy the tool and use it and people who buy it and have someone else
use it for them. The secondary customers are the ones who ask for the tool the
one who has to buy it or they are responsible to search for the right tool that they
have to recommend to the primary customers. In other words, primary customers
buy the product and secondary customers spread brand awareness by asking or
suggesting for that specific tool.
3) The trends that I noticed are that secondary customers might be professionals
who know how to use these power tools but often work for companies or people
who are the primary customers and they will do the purchase for them.
Furthermore, primary customers are often unable or they do not have the
knowledge of which tool they should buy, from where and which has a high
quality so they have the secondary customers make the decision.
4) Bosch is a company that a lot of people prefer and choose to buy from it. It is
known for its high-quality products and its one of the most popular companies in
its field. However, I came across to some negative comments about the
company. I will stay to the ones which are about the power tools. Some people
believe that the company does not have any more the quality that it used to have
and they claim that the new generation tools should not be compared with the old
ones. They say that they are underperforming and that Bosch uses cheaper
materials to make them.
5) SWOT:
Strengths Weaknesses
Opportunities Threats
6) Bosch has a very strong brand name and is a worldwide well-known company. For
Bosch power tools choice to have in their name the main name of the company is a
good marketing strategy because it attracts the loyal customers to the brand and it
guarantee us high-quality products. Finally, it strengthens the brand name by
showing that the company is active to other field too and it tries to provide the best
for its customers.
7) We can find Bosch power tools to the most popular social media such as Facebook,
Instagram, Twitter, Linkedin and Youtube. Their social media are active with a lot of
members and subscribers, and are very helpful for the customers. For example,
Youtube has instructional videos where customers have the chance to see how to
use or install a tool. They also have their own website which is different from the
Bosch’s website. Their website is very good, easy to browse their products and find
what are you looking for as well as learn about the company.
Scenario 1: Audiences that visit Boschtools.com, look at a power tool (for example a
drill), but do not visit Grainger.com
Scenario 2: Audiences that visit Boschtools.com, look at a power tool, and then visit
Grainger.com, log in to Grainger.com, and visit the power tools category
Scenario 3: Audiences that visit Boschtools.com, look at a power tool, and then visit
Grainger.com, log in to Grainger.com, and visit the plumbing category but not power
tools
Answers 1 & 2:
Scenario 1: In the first scenario we are at the active evaluation of the customer
decision journey (CDJ). This happens because Boschtools.com is not a website
where you can purchase directly what you want, hence we can infer that people
who are visiting the site and do not visit Grainger just have the thought to buy a
Bosch power tool and they are browsing the site to collect information. There is a
big possibility that these people are secondary customers who are looking for the
right tool to recommend it or ask for it from a primary customer. The concern that
they have is to just be able to collect and find enough information in order to
confirm for themselves that they really need the product or if it is the right one.
Scenario 2: In the second scenario we can say that they are in the phase
between active evaluation and moment of purchase with moment of purchase
being closer. The customers in this phase are more sure that they will purchase a
power tool and they visit Grainger.com where they will look for the price and
probably they will buy the product. The customer’s concern here is to find the tool
that they want to a good price and collect even more information to finally
purchase the product.
Scenario 3: In this scenario the customers at first they are in the active evaluation
phase until they visit Grainger where a trigger for plumbing tools is created and
they pass to initial consideration but for the plumbing category. This trigger may
be caused by the fact that they also need plumbing materials for the work that
they would need power tools. The concern that customers have is to think if they
really want a product of this category.
Answer 3:
Scenario 1: An analysis that they can perform is to search for the key words
which are used in order to reach the page, to see how many visit their website
and to see in which place did the appear in a search engine. Grainger can
also ask from Boschtools.com to give them the number of how many they visit
them so they can see from them how many went to Grainger.
Scenario 2: In this scenario they can analyze how many people came from
Boschtools.com and how many of them purchase a power tool. They can also
see the reviews to see if customers had a good and easy purchase
experience.
Scenario 3: They can analyze the search history of the people who came
from Boschtools.com to see how many looked from something else and what
was it as well as if they purchased it. Also they can try and find what was the
reason why the visit another category (for example a 20% sale to plumbing
products).
Business Objectives
Answers:
Scenario 2: The business objective for this scenario is to improve the sales
process. Here we have to ask 2 questions. The first is “Do my efforts result in
wins for my brands?” and the second one is “Do the experiences I deliver
fulfill customer’s expectations?”. Both of these questions are very important if
we want our sales process to be improved because we want our customers to
be able to buy a product quickly, easily and do not have second thoughts.
The data that we can collect is the number of the people who purchase a
product (conversion rate) or put a product in the cart and the way we can do
this is by using Google Analytics.
All of these date can be found by different sources, but unfortunately you must have
the access to obtain them and process them. Good sources are the Grainger
website’s data, Google Analytics, Alexa and Google search console. So to analyze
you need access, hence I will provide an example about some available data and
what you can infer from it. Here we can see that the rank of the website Grainger in
Us is 4,689 and 3 months before was 4,317. This means that it lost some popularity
and its 363 more spots that it used to be from the first spot. The Marketing team
should process this and try find why this happened as well as try to find a solution in
order to increase its popularity and its rank.
Bias and how to avoid them.
When collecting and analyzing data we should always be careful of bias. Bias
according to Wikipedia is the difference between this estimator's expected value and
the true value of the parameter being estimated. We are going to elaborate the given
bias we have from the exercise which are sampling bias, questionnaire bias, and
interpretation bias. First of all, Sampling bias is when some people of the intended
population have a lower or higher sampling probability than others. Moreover, in our
days the existence of bots makes this problem more severe because we are talking
for social media profiles which are fake and automated. Bots can be found in all
social media platforms so we should be careful and try to exclude the fake data that
they provide in order to not have an impact to our analysis. Another bias is the
questionnaire bias which is a result of unanticipated communication barriers between
the investigator and respondents that yield inaccurate results. A way to avoid it is to
get feedback from the people who took the questionnaire about if they had any
problem and if they did not understand a question. To exclude the questionnaire that
people do them without reading them we can add questions such as “In this question
pick option 3”. This way we will understand if they are reading the questions. Finally,
we have interpretation bias which is the tendency to inappropriately analyze
ambiguous stimuli, scenarios and events. A good solution to solve this is to consult or
ask for advice from friends, co-workers or even customers so they can create an
objective opinion. To sum up, we should really have our eyes open when we are
collecting data so that we can avoid bias and have valid results which are going to
help us identify the real problems.
Collect and Analyze Data 2
We are going to discuss some analysis plan for data that exist but we do not have
access to them. The data that we mentioned at the previous task along with the
analysis plan are:
Reviews of the consumers: What we can do hear is to allow consumers to
give a number to their review out of 10. If we have review with no numbers we
can turn them so they will be measurable data that we will be able to use. Our
next step is to find the average number of the reviews which will show the
level of satisfaction of our customers from which we can see how it changed
over the time.
Search volume: We can see how many people have search for us over the
time and see how this has changes through the months so we can identify a
problem when we observe a decline to the number of our search results.
Company’s rank: From this data we can see how high is our company in
comparison with our competitors and what image have our customers about
our brand.
Number of Clicks we have on Google: Here we will use click through rate
(CTR) from which we will see if our influence has grown or not in a period of
time.
Conversion rate of add to cart: From this data we can see how many
customers add something to the cart and what product was it. Furthermore,
we are able to see if they purchase the object or if they abandoned it.
Phrases and words that customers have search: Here we can find out which
are the most famous keywords and phrases that people use to find us and
add some of the if we have not in order to appear in the first places in a
google search.
From where did our customers come to our site: By analyzing this data we will
learn from where our customers found us. For example, did the found us from
an ad, a website that we are partners?
Benchmarks:
From the categories of data we have, most of them are to be compared with our
previously data. However, we will have benchmark data where we will compare our
data with aggregated industry data from other companies who share their data. To do
that we can use Google Trend and Keyword tools and Alexa. Rilaviq.com is another
useful tool to compare our social media data.
Summarize:
Duo to the fact that we did not have access to data and data sources so we can do
the analysis. When we have data and we were careful with the bias then the analysis
is an easy process.
Scenario 3: To this scenario we have our customers to our site but they look
in other categories rather than power tools. To make them notice the category
we want we will place banners that will say that there are sales (for instance
20% off) to Bosch products. This also can be achieved by sending them
e-mails with the same content and offer the discount coupons for power tools
at holidays. Another good trick is to tell them that they have a discount to a
product of whatever category they want when they buy a Bosch product.
Recommendations
Content: The content of our e-mails and especially for our banners should be focus
on the Bosch power tools duo to the fact that this is the product that we want to sell.
It should have information, characteristics and include the high quality as well as the
ease of use. It can also contain a slogan which will make you bond with the brand
and be able to recognize and recall it. To the e-mails links should be provided that
will get you to the right page by clicking on them. The most important thing is that the
name of the brand must always be included.
Tone: The tone should be direct, clear and to the point. The customer must be able
to understand the message that he or she receives. The tone can also create the
feeling that with Bosch power tools you can achieve things that you wouldn’t have
imagined that you can and are huge accomplishment by you. The e-mails have to be
always polite and sometimes they can have a friendly tone.
Visuals: Personally I believe that visuals are the most important part of an
advertisement because there is the first thing that your eye will see and judge if it is
worth it to spend your time read it. The visuals that are being used should focus on
the power tools, the people and to a combination of these to. In the first situation we
have a clear image of the product, in the second we focus more to what you can
achieve by a Bosch power tool and in the third we have the tool in use. Visuals can
also be included in e-mails with images and GIF. For instance, an e-mail with a
happy birthday to the customer and a discount coupon for present can have an
image of a cake or a funny birthday GIF. It can also include an image of a digital
Coupon.
Some examples are:
Now we have to make sure that the content is aligned with Bosch’s brand essence
and its product positioning in the market place. To do that we should first have a
collaboration between Boschtools and Grainger creative departments in order to
increase the positive effects and to avoid any inconsistencies between the channels
and the value of Bosch. Of course the main content on the display ads should be
Bosch power tools and they should highlight the characteristics that makes you
recognize and recall the brand such as the high quality and the ease of use. From
this collaboration which is a hard task to be done is important to exist a guideline and
a roadmap so we can have everything under control. They should work together so
they will be able to create more appealing and creative display ads and e-mails that
will make them reach their goal. Grainger knows better how they can attract their
customers and Bosch knows better what is aligned with its essence. The display ads
that audience from category 1 and audience from category 2 see will not be the
same. Audience category 1 will see the ad which is based on Bosch power tools but
there would not be any quotation to Grainger since the customers are already on
their website. Audience category 2 who haven’t yet been transferred to the Grainger
will see display ads on Boschtools.com that will also be based on the tools but they
will infer the name of Grainger to show the partnership and spread brand awareness
for Grainger.
Do the products that are being offered and displayed satisfy the need of our
customers? In other words, we have to influence consideration and Grainger
has to rely on the data that Google Analytics provides in order to examine the
behavior of the customers. To do so they should conduct a research. They
can also look for how many people visit Grainger.com from Boschtools.com.
Do our sales efforts has wins as a result for our brand? In order to find it out
we should find out how our sales process can be improved. We can look that
by measuring the sales volume of Bosch power tools from Grainger.com
Do consumers recognize and recall the brand? To be more specific, here we
have to look if the customers are aware that there is a Bosch power tool
section at Grainger.com. This is what we have to search and raise brand
awareness. This can happen by seeing how many people visit the Bosch
power tool category of Grainger.com.
To have more accurate insights as well as predictions of the campaign and the
results, what we have to do is to use an array of primary and secondary research
methods that include the collection of qualitative and quantitative data. So in the
first one we have to deal with new data but in the second one we use data that
have already be collected from previous researches.
Primary and secondary research:
Once again we will start with a definition for this 2 terms.
Google Analytics. From here they will collect structured data from which they
will see how consumers behaved before, during and after the campaign.
Google alerts. By using this they will collect even more data from which they
will be able to see the brand sentiment
Secondary data related to email marketing effectiveness such as open rate,
click through rate (CTR), conversional rate that can be considered
quantitative and secondary in type.
Customers’ surveys and questionnaires. With that they will gather more
primary quantitative data about them.
A/B multivariate tests and experimentations. Here they will have the chance
to collect more primary data in terms of their behavior.
Test and control plan:
There is already a model that we can use which is called Successive Approach
Model (SAM). In its test phase it is used in instructional design and it goes through 4
phases which are the decision proof, the alpha phase, the beta phase and the gold
phase.
5630 words
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