Helping Homebase reconnect, renew and revive
In 2018, after two years in the hands of Australian DIY giant Bunnings (“undoubtedly the most disastrous retail acquisition in the UK ever”, according to one analyst), Homebase posted losses of £115 million and was sold to Hilco for £1.
By 2020, Homebase had returned to profitability, and in 2021 the chain was reportedly the subject of a £300 million buyout bid .
One of the major drivers of Homebase’s revived fortunes was a concerted effort to reconnect with and cater to the customers it had lost when its brand strategy had been confused and shifting, and to win over lucrative new audiences.
What were the challenges?
Previously Homebase had successfully established itself as a main player in the home improvement market by positioning itself as the place to go for ‘all things home and garden’- both hard DIY and the softer side of home improvement.
After 2016, Homebase alienated many of its customers by ditching the softer side of home improvement and adopting the Bunnings ‘hard DIY’ Australian store format.
The Homebase brand that people knew and loved was no longer reflected in the stores customers found themselves visiting - and they were returning in smaller and smaller numbers.
To turn the situation around, Homebase under new management had to get to know its customers again and build the sort of experiences those people wanted - fast.
What did Mimo Brands do?
In March 2019, Mimo Brands was appointed to help revitalise the Homebase’s brand and drive a stronger customer connection.
We were tasked with helping the business to re-think its approach to marketing in order to better serve customer needs, unlock latent brand potential and drive profits.
Our work fell into 3 categories:
1. Insight strategy
We built a new strategy to improve customer and market understanding – including segmentation, brand metrics, competitor benchmarking and market trends.
Customer attitudinal and behavioural insight
We executed a countrywide qualitative and quantitative study to understand the consumer mindsets, behaviours and attitudes towards Homebase and the competitor set. This enabled us to unlock a more distinctive brand truth behind the Homebase brand and start to repair the previous damage.
Segmentation
We studied the home improvement market through the eyes of consumers, and in so doing identified two key segments that were driving more than half of the market revenue. This way, we were able to pinpoint clear needs that the brand could address to power future growth.
Category driver insight
Using qualitative and quantitative research we studied and mapped a new understanding of how customers behaved in and between product categories. This analysis was able to inform buying, ranging, merchandising and navigation decisions.
2. Brand strategy
Targeting
The segmentation showed us 3 distinct customer types to target. We helped the organisation to focus on these groups - from product to communications - and to allocate appropriate resources to attracting them.
“Always start by identifying your high value customers.”
- Giles Thomas, Mimo Brands
Brand positioning
We found a clear and distinctive territory that married Homebase’s organisational and brand strengths with the needs of consumers. Alongside this, we developed a strong narrative around Homebase’s unique abilities and brand attributes to direct the customer proposition across channels.
Brand architecture
We created a clear system to make it easy for customers to navigate Homebase’s many brands, formats, channels, and categories. With this, we designed a new, simplified model to co-ordinate fascia, windows, in-store signage and online presence for all categories, and for existing and newly-acquired brands.
Brand values
We developed simple, memorable values to direct the behaviours necessary to deliver the new brand experiences. Working with HR, we helped Homebase to implement a single brand framework that could direct internal cultural levers – encompassing recruitment, training and development, rewards and recognition, internal communications and more.
Category branding
We led a customer-research driven programme to upgrade key categories instore and online, particularly storage and high-ticket items like kitchens and bathrooms.
3. Marketing strategy
We helped craft a new marketing strategy designed to build a sustainable position in the market whilst driving short term consumer demand. We then converted that strategy into a marketing plan.
Communications strategy
Our new primary insight led us to enhance the incumbent communications model. Alongside the ATL agency , we developed an alternative communications & engagement framework.
Category experiences
Using fresh data and insights we were able to inform buying, ranging, merchandising and navigation decisions.
New store format Identity
We developed identities for new store formats, including Decorate and Showroom, and worked with in-house and external teams to deliver successful retail launches.
Agency briefing & collaboration
We wrote the briefs for agency selection and campaign development. We worked closely with selected agencies to ensure consistent delivery of the strategy.
What were the results?
Today, Homebase is thriving once again and is perfectly positioned to capitalise on burgeoning demand for home improvements.
The strategy that we developed with our clients helped Homebase reconnect with its audience, encourage a reassessment of the brand and provide strong foundations for business growth. The upshot of that reconnection, revival and renewal has been a dramatic turnaround: from massive losses back to profitability, with the business poised to continue to thrive in the future.