Home Improvement - A Social Affair?

New home construction and even home improvement were hard hit with the economic downturn of 2008 and 2009. Even though the economy looks to be improving, the Home Improvement Research Institute predicts that spending on home improvement products will decrease by 8.3% from last year (Home Improvement Research Institute, 2009). The Institute also predicts that the home improvement product market will not experience growth until 2010, and that growth will only be 1.2% (Home Improvement Research Institute, 2009). While these numbers may seem bleak, they do signify a strong opportunity for creative marketing tactics in order to reach a target audience.

One company that has a strong-hold in the home improvement/do-it-yourself space is Vernon Hills, Illinois-based Rust-Oleum. In fact, Rust-Oleum is first in brand recognition and market share position in the United States and Canada in the rust-preventative, decorative, specialty and professional segments of the small-project paint category (RPM International Inc. Website, 2009). Founded in 1921, it is evident that Rust-Oleum has a vested interest in the growth and sustainability of this market segment. Its mission is to provide its consumers with the highest quality paint so you get the best results.

Rust-Oleum is committed to providing innovative products to make home improvement projects easier and come out looking great. Some of these products include Zinsser primers, Testors hobby paints, EPOXY Shield garage coatings, Rust-Oleum Universal spray paint, automotive coatings and specialty products such as chalkboard, stainless steel, plastic and appliance paints.

With such a diverse product line, Rust-Oleum has a strong advertising plan in place to showcase all of its brands and their respective attributes. One cannot turn on TLC, HGTV or other home improvement cable stations without seeing a commercial for Rust-Oleum’s decorative paints. These advertisements are creative and show the products’ individual capabilities. Yet, these advertising outlets are interesting because according to Quantcast, Rust-Oleum’s primary target audience is males, ages 35 and older with a household income of between $30,000 and $60,000 (Quantcast, 2009).

In addition to advertising, Rust-Oleum uses sponsorships as another marketing tactic. For example, the company served as a sponsor of the 2009 Home Idea show.

Advertising and sponsorships are not the only marketing tactics Rust-Oleum has undertaken. In addition, the company has begun to enter the social media realm. The company has a presence on Facebook via a “fan page.” Upon logging onto Facebook on November 1, 2009, the page, which has 255 fans, displays product information, how-to videos, discussion boards and news items. Yet, the one thing that could be confusing is the fact that there are three “fan pages” dedicated to Rust-Oleum. How can a consumer differentiate between the three, and how does one know they are on the official Facebook page? This is something that will be explored throughout the course of this class and this project. Rust-Oleum will, in the end, need to take hold of its brand on the site especially since its target demographic aligns perfectly with Facebook’s largest growing segment, those 35 and older (Facebook, 2009).

As for Twitter, Rust-Oleum does not have an active page. There is a listing for the company with only 12 followers, but nothing has been posted to this site. Twitter affords a great opportunity for Rust-Oleum to reach a very targeted demographic with how-to tips and company news. This is one social media outlet that should definitely be explored.

Rust-Oleum’s competitors include Sherwin-Williams, PPG and DuPont Paints and Coatings. Upon reviewing competitor information on Twitter, PPG Industries has a Twitter account with 248 followers. Some of Sherwin-Williams’ local paint stores also have Twitter accounts that highlight specials and tips from that specific location, but the corporate office does not have a page. DuPont is not listed on Twitter.

When looking at Facebook, Sherwin-Williams has a page that is dedicated to its employees as a way to connect and communicate. It does not use this as a means to communicate with consumers or the news media. PPG Industries is the only competitor that has a fan page for its paints on Facebook, and the page currently has 22 fans. DuPont does not have a presence on Facebook.

Sherwin-Williams’ page is a closed page since they are only for employees so links could not be provided. The following is the link to the PPG Industries Facebook fan page: http://www.facebook.com/search/?q=PPG+Industries&init=quick#/pages/Pittsburgh-PA/PPG-Industries/110808087655?ref=search&sid=1206900200.4159729070..1

Based on Rust-Oleum’s current marketing initiatives, competitive analysis and target audience, a compelling need has been demonstrated for a comprehensive and enhanced social media marketing strategy. There are numerous social media opportunities, including using Twitter, expanding its YouTube presence and utilizing SlideShare, that the organization has yet to unearth, but these will soon come to the surface.


References

The Home Improvement Research Institute (2009). “Home Improvement Products Market Forecast Update, August 2009.” Retrieved November 1, 2009, from http://www.hiri.org/inside.asp?id=21#2

RPM International Inc. (2009). RPM Consumer Companies. Retrieved November 1, 2009, from http://www.rpminc.com/consumer.asp

Quantcast (2009). Rust-Oleum Audience Profile. Retrieved November 1, 2009, from http://www.quantcast.com/rustoleum.com

Facebook Statistics. Retrieved November 1, 2009, from www.facebook.com