Tractor Supply Company

Kelsey Buehler, Pierce Ford, Amanda Allen & Chandler RobertsonRetail Marketing - Spring 2017 - T/Th 12:30

TRACTOR SUPPLY CO. -

COLUMBIA

BACKGROU

ND

BACKGROUNDMission Statement: To work hard, have fun and make money by providing legendary service and great products at everyday low price

Headquarters: Brentwood, TN

Opened In: 1938

Growth Strategy: Market Penetration▸ Opened approximately 115 stores in 2016▸ 2500 Plan

Retail Mix

Retail Mix:▸ Currently offer 13 exclusive brands▸ Exclusive brands represented approximately 31% of

TSC total sales in fiscal 2015, 2014, and 2013.

Target Market▸ Recreational farmers▸ Home, land, pet and livestock owners ▸ DIYers

Characteristics:▸ Loyal and growing▸ Conservative and self-reliant lifestyle ▸ Consistent▸ Above average income and below average cost of

living

Target Market

Climate Change:▸ Seasonal Offerings

Competitors:▸ Lowe’s▸ Home Depot▸ Orschelns▸ Sherwin Williams▸ Lumber Liquidators

Low Brand Recognition

KEY ISSUES

KEY ISSUES-

CONT.Underdeveloped Omni-Channel Presence:

▸ E-commerce, M-commerce, Social Media

Market Expansion Opportunities:

▸ Women

▸ Urbanites and Suburbanites

▸ Strengthen in-store experience

ALTERNATIVES

1. Stay The Course2. Focus On Online Platforms3. Enhance In-Store Experience4. Target Urban Environmentalists

ALTERNATIVE 1:

STAY THE COURSE▸ Market penetration▸ Targeting customers who work in

occupations other than farming▸ Promotion:

▹ Newspaper circulars▹ Customer targeted direct mail▹ Digital offerings▹ Email offerings

ADVERTISING

EXAMPLES

ALTERNATIVE 1:

STAY THE COURSE

CONT.▸ Striving to be an environmentally

sustainable business

▹ LEED Certified

▸ Multichannel retailer

▸ Efficient supply chain

▸ Investing in inventory planning and allocation systems

▸ Emphasis on employees

ALTERNATIVE 2 -FOCUS ON ONLINE

PLATFORMSCurrent:▸ Digital offerings▸ Overwhelming website▸ Small social media following▸ Little brand recognition▸ YouTube▸ Order online, pickup in store

Suggested:▸ Simplify website▸ Closely monitor social media interactions and customer

reviews▸ Encourage customer reviews▸ Prospect marketing

ALTERNATIVE 3: ENHANCE IN-STORE

EXPERIENCE

Current:▸ Customers only stay 15 minutes

Suggested:Create interactive and more pleasant

shopping▸ DIY classes▸ Channel “Bass Pro” style seminars▸ Organize exterior more interactively▸ Add carpet, and more color interiorly

CREATE

INTERACTION

STORE AMBIENCE

ALTERNATIVE 4:TARGET URBAN

ENVIRONMENTALISTSCurrent:▸ Stewardship Program ▸ LEED certified distribution center

Suggested:▸ Smaller stores with urban garden products in urban

areas▸ Encourage more DIY customers

SUSTAINABLE

LIFESTYLE ▸ Offer DIY demonstrations of upcycling and urban

gardens

▸ Chicken Coop How-To

RECOMMENDATIONStay the course▸ Have competitive advantage ▸ Making critical investments▸ Growing tremendously▸ Guard against inertia

STOCK INFORMATION