Professional Documents
Culture Documents
Karan Rustagi
Digital Marketing Specialisation
CAPSTONE PROJECT-
GRAINGER AND BOSCH
Digital Marketing Campaign
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CAPSTONE PROJECT-Grainger and Bosch
TABLE OF CONTENTS
1 Executive Summary 2
3 Problem Statement 8
6 Channel Strategy 16
8 Endnotes 23
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CAPSTONE PROJECT-Grainger and Bosch
EXECUTIVE SUMMARY
The work in this document is a result of 6 weeks of effort expended in order to complete the
Capstone Project for the Digital Marketing Course offered by University of Illinois at
Urbana/Champaign via Courera.
This project is meant for the application of all the theoretical concepts that I have gone
through in the past 5 courses offered by the institute. The project uses the concepts of digital
marketing in order to help Grainger have an increase in the sales of Bosch power tools by
10%.
I have learnt the following from this project:
• Mapping Consumer Decision Journey
• Application of Digital Marketing Concepts
• Creating content for Digital Marketing
• Creating a test and control plan
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CAPSTONE PROJECT-Grainger and Bosch
CLIENT ANALYSIS
GRAINGER
1.The most locations: Grainger has more than 600 stocking branches in north America,
because of which there is quicker distribution possible.
2.The most inventory: Grainger carries a large amount of inventory and they go in for the
service level as they are in ‘speed and convenience’ category.
3.The best catalog: Grainger also has the paper catalog as the consumers find it easier to use a
paper catalog. This is one of the most important things in the ‘speed and convenience’
category.
4.The easiest to use website: Grainger.com is well designed and easy to use. This ensures that
the customers manage to quickly go through the entire process of purchase on grainger.com.
Customers of Grainger.com:
Competitors:
1.Sonepar
2.Wolseley
3.Rexel
4.Wurth Group
5.W.W.Grainger
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CAPSTONE PROJECT-Grainger and Bosch
BOSCH
Bosch power tools:
Bosch power tools is a part of the Bosch group which is known as Robert Bosch Tool
Corporation.
The brand is the world leader in power tools and power tools accessories. The core success
factor for Bosch power tools is innovation. Each year Bosch launches more than 100 new power
tools in the market.
The brands which are owned by Bosch power tools is as follows:
3. There is direct relation between the primary and secondary audience. The primary
audience can pressurise the secondary audience to ensure that the product will be
bought
SWOT Analysis:
Strength:
1. Extensive focus on R&D-4593 Patents filed
2. Balanced portfolio
3. Continuous innovation
4. Quality of product
Weakness:
1. High costs
2. Employee productivity
3. Lesser access to customer
Opportunity:
1. Increased mode of selling
2. Increase in the demands for the products
3. Innovation in the industry
Threats:
1. New players in the market
PROBLEM STATEMENT
The major issue that we will work on this project is increasing the sales of Bosch power tools
on www.grainger.com by 10% under three different scenarios which are expressed in detail
in the following pages. The mode of increasing the sales is only via digital marketing.
Scenario 1:
The customer knows that the product required to solve the solution is available from
www.boschtools.com , but what he/she does not know is the fact that there is a website from
which the tool can be purchased.
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CAPSTONE PROJECT-Grainger and Bosch
Thus, this means that Grainger does not even make it through the initial consideration set of
the consumers.
The objective of Grainger linked to this scenario is called “building brand awareness”.
Scenario 2:
The customer knows the product required, he/she also knows that the product required is
available on www.grainger.com and then comes the moment of purchase.
The customer will then start looking at the details of that product and then either make the
purchase or not.
The objective of Grainger linked to this particular stage is called “improving sales process”.
Scenario 3:
The customer initially looks into the power tools category from Bosch, but due to the
availability of a lot of different categories available from Grainger, the customer goes through
the active evaluation stage and starts to wonder if any other product can be used to satisfy the
needs.
The objective of Grainger linked to this particular stage is called “Influence Consideration”.
Scenario 1:
The objective of the company related this scenario as stated earlier is “Build awareness”. This
objective best suit the scenario only as the consumer just knows the product that is going to
be required to satisfy the needs. What the consumer does not know is that there is a company
called Grainger, which can be used to purchase the product.
Scenario 2:
The objective of the company related to this scenario as stated earlier is “ Improve sales
process”
This objective suits the scenario only as the consumer has logged into the website off
Grainger after visiting the website of bosch tools. The consumer has also gone straight to the
power tools ection. This means that the consumer is aware of the company and has no other
evaluation to make I terms of the category. The only thing left is to analyse if the consumer
has purchased the product or not.
The consumer might not purchase the product if the sales process is not very swift and easy.
Scenario 3:
The objective of the company related to this scenario as stated earlier is “Influence
consideration”
The objective suits this scenario as the consumer has visited www.grainger.com after visiting
www.boschtools.com and has gone straight to the plumbing category instead of the power
tools category. This means that the consumer is still actively evaluating its options to satisfy
needs.
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CAPSTONE PROJECT-Grainger and Bosch
Behavious KPI:
Bounce rate
Abandonment Rate
Events per visit
Outcomes KPI:
Return on advertising spends
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CAPSTONE PROJECT-Grainger and Bosch
Days to conversion
Improve Sales Acquisition KPI:
Force CTO on email (Details on epre-order)
Site traffic
CPA on email
Behaviour KPI:
Bounce rate on email
Session length
Abandonment rate
Outcomes KPI:
ROAS- sales conversion on email
% assisted conversion rate
Influence Acquisition KPI:
Consideration CTO on email (Asking customers to join email registry)
Unique open rate
CPA on email
Behavious KPI:
Bounce rate on email registry
Session length on email registry
Outcomes KPI:
Database conversion rate
ROAS based on email
As shown in the above pic, fundamental research is suitable in this case as this research will
aim at solving a problem by adding to the field of application of digital marketing and it
researches individual case of Grainger increasing the sales of Bosch powertools by 10%.
Bias according to NCBI is: “systematic error [is] introduced into sampling or testing by
selecting or encouraging one outcome or answer over others” 7. Bias can occur at any phase
of research, including study design or data collection, as well as in the process of data
analysis and publication
As this particular case is revolving around fundamental research and secondary data, there are
only a few biases that can hamper the entire process. The types of biases are as follows:
Sampling / Selection Bias:
This type of bias majorly takes place only when secondary data is included. Tis bias is
introduced in the selection of the data as the researcher would not have ensured that proper
randomization had been achieved. This would mean that the data selected would not
represent the entire population.
Interpretation Bias:
This type pf bias takes place when the results of an analysis have to be interpreted in a certain
manner. It refers to inapproporiately analysing or interpreting the results of an analysis. The
proper definition for the same is: Interpretive bias or interpretation bias is an information-
processing bias, the tendency to inappropriately analyze ambiguous stimuli, scenarios and
events. One type of interpretive bias is hostile attribution bias, wherein individuals perceive
benign or ambiguous behaviors as hostile.
Based on the research, the analysis chosen is descriptive . Grainger currently uses a few KPIs
which give them a rough idea of about how good their digital marketing campaigns are.
By data mining, conversion of data into information, and utilizing KPIs properly, powerful
insights can be developed about any digital marketing campaign.
Grainger uses certain data to measure the following KPIs:
• Click through rate (CTR)
• Cost per acquisition (CPA)
• Return on advertising spends (ROAS)
• Repeat visits
These are some of the most important KPIs that can be used to measure the results of a digital
marketing campaign, but other than that, a few more KPIs can be used to ascertain the
detailed results of a campaign. These KPIs as mentioned earlier are as follows:
• Click to open rate (CTO)
• Unique opens
• Site traffic
• Bounce rate
• Shopping cart abandonment rate
• Conversion rates
Email (Registrations):
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CAPSTONE PROJECT-Grainger and Bosch
The benchmark based on the industry average for the e-commerce industry for CTO should
be 16.75% and for bounce rate, it should be lesser than 0.24%
Email (E-purchase):
The conversion rate for the industry in USA is 3.00% and the same or above should be the
benchmark for Grainger.
The average shopping cart abandonment rate is 69.70% and the rate should be lesser than the
average for Grainger.
Social media activity:
The benchmark for social media interactions with the posts according to social media
ambassador would be 11.4
Paid search:
The average click-through rate on AdWords paid search ads is about 2%. Accordingly,
anything over 2% can be considered an above average CTR. Thus, this should be the
company’s average.
Summary Of Plan:
OBJECTIVE: Increase sales of bosch power tools on www.grainger.com by 10%
Goal: Building Brand Goal: Improving Sales Goal: Influence
awareness Process Consideration
KPI: Share of visits, CTR KPI: CTO, Abandonment KPI: CTO, Bounce rate,
rate Unique open rate
Segment: On site search Segment: Purpose of visit Segment: Product
recommendation
Target: CTR- 0.10 (Display Target: CTO- 16.75%( Target: CTO (As mentioned
ad) registrations) Before)
CTR- 2% (Paid CTO- 3% (E- Bounce rate- Less
search) purchase) than 0.24%
Abandonment rate-
Less than 67%
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CAPSTONE PROJECT-Grainger and Bosch
CHANNEL STRATEGY
Scenario 2:
Display Campaign: As the customer has logged into his account on www.grainger.com , and
has left the cart without purchasing it, the cookies can be used in order to use display
advertisements on various websites such as google, facebook and youtube
The advertisement can be on the right side of the websites. The size can be 300*600
E-mail Campaign: The customers can also be sent reminders about the offers available and
the quantity available on E-mail. This mail can also be sent to audience 2 for approval.
Scenario 3:
Display Campaign: As the customer has logged into the account and has started visiting
other categories, banner advertisements can be shown to the customer on the other websites
to show them what their needs are and the only solution would be bosch tools.
The advertisement can be on the right side of the websites. The size can be 300*600
E-Mail Campaign: The customer should be sent reminders about the products under the
powertools category , the usage of the product, and the pricing , so that the audience can sent
it to audience 2 for approval.
Scenario 2:
Display Campaign: a comparative display advertisement can be shown to prove to the
customers how competitively priced the products are. The display ad can also show the quick
delivery process. The banner ads will be put up specially on www.google.com to ensure that
the audience sees it when they are doing research on other sellers.
The advertisement can be on the right side of the websites. The size can be 300*600
E-Mail Campaign: In order to improve the sales experience, an e-mail can be sent to the
customers for registrations and to remind them about the powertools, and majorly their
prices.
Scenario 3:
Display Campaign: Redirecting display advertisement can be put up on google in order to
ensure that the customer goes directly to the power tools website. The display ad would show
the usage of the product.
The advertisement can be on the right side of the websites. The size can be 300*600
E-Mail Campaign: An email can be sent to the audience which would describe the details of
the products along with their uses and pricing to ensure that the audience’s doubts are
cleared. The email would lead the audience straight to the powertools category.
Scenario 1:
Under this scenario, what the company (Grainger) has to do, is to create brand awareness on
the website of bosch power tools ie www.boschtools.com .The following is a mock-up ad
which shows the type of ad that can be displayed:
Scenario 2:
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CAPSTONE PROJECT-Grainger and Bosch
For the customers who have logged in, and finalised the products, but have abandoned the
cart, display advertisements can be showed on websites such as facebook.com and
answer.com to ensure that they are reminded about the products viewed and the discounts
available. The following mock-up ad can be considered as an example:
Scenario 3:
For the customers who have logged in but have not visited the power tools category, it is
important that a display advertisement be made to ensure that the customers are reminded
about the usage of the product and what the product can do. This display advertisement can
be used on google and facebook to ensure that the customers are redirected to the website and
specifically, the power tools category. The following mock-up advertisement can be used as
an example:
Scenario 2:
The biggest issue faced by the company is in terms of the abandonment rate or the shopping
cart abandonment. The company can either send display advertisements or also send
personalised emails using cookies to remind the consumer that they have an item
unpurchased in their cart. The following is an email ad mock-up:
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CAPSTONE PROJECT-Grainger and Bosch
Scenario 3:
The major problem is that the consumer visits another category instead of the power tools
category. There can be a link which will redirect the consumer directly to the power tools
category or the webpage of the power tool on grainger.
The following is a mock-up for the email:
Thus, Grainger is aligned with the brand image of Bosch tools and thus it compliments them.
Surveys:
Surveys should be created by www.grainger.com in order to gather primary data which
would ensure that the company would find out about the consumer behaviour. As there is an
increase in the number of customers who are available on social networking websites, online
social network surveys will be beneficial for the company. Surveys would help Grainger
better understand the consumers, and thus perform better in the market.
Surveys will give Grainger the content about brand awareness. Questions such as Do you
know Grainger? Do you purchase online? Why do you purchase from Grainger? Which
company do you prefer? What are the attributed influencing purchase? Can give some
qualitative data. This Qualitative data will not only inform Grainger the way it is perceived,
but what it needs to improve as well.
This type of survey will help the company better understand the consumers, their decision
making process and what the relationship with the competitor is.
Focus Group:
Focus Groups are recommended for Grainger to use when trying to Influence Consideration
of its products. This Primary data can provide marketing managers, product managers, and
market researchers with a great deal of helpful information, to entice people to choose
Grainger as their supplier of BOSCH Power Tools. focus groups have a distinct advantage
over some other types of market research: they are flexible by design, capitalize on decision-
makers ability to talk to their customers and their knowledge of their brand, product, or
services. This Test and Control Technique will be useful to gather information on customers
that access Grainger.com directly as well as customers that access BOSCH.com first. By
going ahead with focus groups, the company will be able to directly take inputs from the
customers and have the desired output in having positive influence on consideration of the
company for buying Bosch power tools.
Online Monitoring:
For improving the sales process, online monitoring is one of the best testing and controlling
tools available. Online Monitoring is investigating one’s digital/internet presence. The
Quantitative Data of Bounce Rates of the two websites will assist management at Grainger
assume a correlation between a failed link between customers searching for BOSCH Power
Tools on BOSCH’s website and those customers being redirected to Grainger’s plumbing
home page when accessed. Online monitoring can also be used to find out the stage at which
the customer has left shopping or abandoned his/her shopping cart. This would help the
company also find out why the shopping cart has been abandoned. This kind of primary
research will provide enough data to ensure that the sales process can be improved in the
future.
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ENDNOTES
Number of words: 3956
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