In the past few years, True Value has changed its strategy to differentiate itself from discount hardware stores and continue their annual 4% countrywide sales increase. The company wants to focus on building a brand that represents quality products at good prices instead of sacrificing quality for cost.
In 2014, the company changed its pricing strategy to focus less on opening-price-point products to focus on product prices that have larger margins; which translates to higher profits for retailers.
Kenneth Goodgame, a Senior Vice President and the Chief Marketing Officer of the company, said that the program “drives greater value for our customers and increases our retailers’ gross margin dollars,” keeping in-line with the company’s new strategy.
The following year, True Value decided not only to introduce a new pricing strategy but also a new product strategy as well. The company is well known for offering well-tested products that have been in the market for a while, so they have historically taken some time to adopt new innovative products.
With their new product strategy, the company wants to introduce four new products, which as Goodgame describes it are “new to the marketplace, not just new to the store”.
The True Value Company
The company was founded in 2006, but has roots dating back to the late 1940’s, and is the owner of several other well-known brands across the country like Party Center and Home & Garden Showplace.
Ken Goodman has been involved in sales and marketing for over a decade. He graduated with a Bachelor of Science in Marketing from the University of Tennessee and has led turn-around efforts that have reversed sales losses for multi-million dollar companies.
His experience in the hardware industry date back to 2010, when he began working for Ace Hardware as the General Merchandising Manager. During his tenure, the company gained $150 million in new revenue and increased store openings by 300%.
Goodman’s latest position is being a Senior Vice President and Chief Merchandising Officer of True Value Hardware. He is in charge of managing over $2.2 billion in annual purchases and over $300 million in inventory.