By 2012, Mitre 10 had become the owner of about 14 private labels that spread across the business without any structure or uniformity. The brands had little discernible meaning, no customer loyalty and were poorly attributed back to Mitre 10 as a retailer brand. And given that Mitre 10 had budgeted a massive sales target for these brands in the 2015 financial year, it was a problem that could no longer be ignored.
The Mitre 10 marketing team determined that it was best to build a collection of new brands and thereby develop equity from the ground up. In-store research into shopper behaviour allowed the team to identify a collection of customer behaviours, which could be segmented into three core mindsets: the builder, who is focused on completing a project; the decorator, who is driven by a desire to express personal style; and the thrifty DIY enthusiast, who wants acceptable quality at a reasonable price.
Then, on the framework of these groups, Mitre 10 constructed three homebrands that would meet the specific expectations of the kinds of shoppers that visited the stores.
The retailer introduced the new brands Jobmate (for the builder) and Number 8 (for the thrifty DIYer) and reworked the branding of Nouveau (for the decorator), which had been on the shelves for some time. But, as is often the case with DIY projects, the job was still not done; Mitre 10 still had to take its new brands to market.
Armed with a modest marketing budget of $200,000, the retailer rolled out individual marketing campaigns for the trio of brands. Number 8 was launched via the ‘Serial tool borrower’ campaign, which communicated the statement ‘Why borrow it? Now you can afford your own’ via radio, Spotify and online ad networks.
Whereas the Number 8 campaign had a strong price message, the Jobmate marketing focused on quality with the ‘Built for the job’ campaign, which was delivered to audiences through TV, radio, billboards and Mitre 10’s channels.
When it came to Nouveau the strategy was again different, this time focusing on the more aspirational quality of the target market. In this instance the messaging was more subtle, with product placements being worked into Mitre 10’s Dream Zone photography and YouTube home styling clips. This stylish message was further consolidated through full-page magazine adverts in key decorating publications, as well as Viva and Canvas, and complemented with Facebook and in-store campaigns.
Customer research after the launch indicated that all three brands resonated with their specific target markets, and this is also being reflected in the sales figures. Thus far, sales results indicate all three brands are on track to meet the ambitious sales targets set by Mitre 10 at the outset of the project. And what makes it so impressive is that the multi-faceted project was turned around in its entirety between October 2014 and May 2015, an achievement that most certainly could not be described as “easy as”.
“This was a very tough category to judge but it got over the line with a gutsy decision and sheer degree of difficulty consolidating 14 brands to three. The results were delivered successfully through an excellent customer led strategy and insight led process, with a deep understanding of customer drivers, followed by flawless execution through the whole supply chain.”
FCB Auckland, Jupiter Prestige Group, The Thinking Studio
Countdown x 2 (Super Animals and myCountdown); Foodstuffs New Zealand (New World Clubcard); Mitre 10 (Mitre 10 Garden Club); Thrifty Car Rental (AA Thrifty ‘The Price You See Is The Price You Pay’ Car Rental Campaign); Z Energy (Kapow!).
This story originally appeared in the September/October edition of NZ Marketing.
To read about all the other winners, visit the TVNZ-NZ Marketing Awards topic page here.