Homebase ideas
A case study
Great ideas
When Homebase decided they wanted to be viewed as a home enhancement destination rather than a DIY shed, they invested in a massive store redevelopment aimed to appeal primarily to women. To support their new brand as a ‘home of ideas’, in 2003 they launched a quarterly retail magazine called Homebase ideas to a target audience of ABC1 women, 30-45 years old, with families. Research had shown that, while Homebase customers were confident in their tastes, they were overwhelmed by ideas they could not achieve. The magazine’s main purpose, therefore, was to balance inspirational ideas with practical approaches.
Product placement
While every feature in Homebase ideas naturally promotes a Homebase product, the magazine has positioned itself as much more than a bald marketing tool. Editorial and design quality are high and, by including key suppliers to the store in editorial and advertising, the title has also managed to fund itself.
How was the magazine’s success measured?
Homebase ideas had to be produced on a break-even model. Results have been calculated on increased sales and margin, increased footfall and improved brand loyalty. The magazine’s launch and subsequent publications were timed to fall outside Homebase’s key promotional ‘10% off’ days to create peaks in demand without the need to offer discounts.
- A solid effectiveness programme was put in place at the magazine’s launch. This has allowed publisher and client to track sales uplift on featured product
- Homebase Spend & Save loyalty scheme cardholders, who were sent ideas for free (usual instore cover price £1), are tracked. This provides transaction data and also shows return on investment
- For a six week period after each magazine is published, the visits and purchases of magazine readers are measured against a control group
- In addition to the magazines sold instore, 250,000 magazines are mailed to customers, 80% of which carry a discount voucher redeemable for one weekend only. Again, the behaviour of the voucher holders is measured against other magazine and non-magazine readers
How effective is the magazine as a marketing tool?
Extremely effective! After just 3 issues of ideas…
- £30 million of sales were tracked
- 250 million new store visits were made
- Homebase product sales increased by an average of 20%
- Partner supplier sales increased by up to 62.6%
- Mail outs of the magazine generated more than £1 million in incremental sales in just 4 days
- Customers who used the voucher spent between 150% and 225% more than the average card holder
No wonder ideas won ‘Launch of the Year’ at APA Customer Magazine Awards 2003.
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