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The 2007 Cassies Logo  

Redefining Reno-Depot's
value proposition

SILVER :: Success Despite the Recession
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OVERVIEW: Réno-Dépôt manages to grow in the teeth of the recession

SITUATION ANALYSIS: In 2003, RONA Inc. bought Réno-Dépôt, but sales declined slowly in the subsequent years. Business was under pressure because Home Depot has arrived in Quebec, and because RONA had introduced a warehouse concept. Related to this, the recession was starting to bite, and customers and contractors were buying less. This erosion had to be turned around.

STRATEGY & INSIGHT: Historically, Réno-Dépôt had cultivated an "Every Day Low Price" position along with a memorable ad campaign: If it existed, we'd have it. By 2008 it was obvious that this approach was no longer sufficient. The target audience was re-examined, and tracking showed that Réno-Dépôt was most popular with people who defined themselves as experts. So renovation contractors, along with serious handymen, became Réno-Dépôt's new principal target. But what proposition would talk to them? They were all heavy users, so perhaps they would respond to an incentive to purchase in bulk.

EXECUTION: Out of this came the idea of 13 to the Dozen. It would be in force every day on all items in store. It allowed all Réno-Dépôt clients, contractors and handymen to buy 12 identical products and get the 13th free, at all times, with no restrictions. A new 360-degree communications plan introduced the new strategy in September '08 using TV, radio, online and in-store support.

RESULTS: This had an immediate effect, with sales in the launch quarter up 2.4%. For 2009, sales were up 0.6% and although this may seem small, it has to be seen against five years of decline, and a housing and construction industry mired in the recession and down 9.4%.

CAUSE & EFFECT: This was the only significant change in Réno-Dépôt's marketing. Research showed that the message was getting through, and the pattern of sales from contractors and other heavy users showed that they were taking advantage of the new plan. Overall, this allowed Réno-Dépôt to exceed its profitability target despite the recession.

Réno-Dépôt
Mario Saint-Louis - VP Operations
Philippe Lagacé - Senior Manager
Marlene Hins - Marketing Director
Jean-Pierre Hamelin - Advertising and Sponsorship Manager

Saint-Jacques Vallée Young & Rubicam
Louis-Éric Vallée - CEO
Nathalie Lévesque - VP, General Manager
Daniel Poirier - Creative Director
Julie Desrochers - Copywriter
Martin Bélanger - Copywriter
Martin Snape - Copywriter
Francis Lévesque - Art Director
Bob Lachapelle - Art Director, Web
Louise Genest - Electronic Production Manager
Marc Cholette - Web Producer