Introduction to Hobby Lobby
Hobby Lobby, founded in 1970 by David and Barbara Green, started as a small store selling miniature picture frames. Over the years, it has grown to become the largest privately owned arts-and-crafts retailer globally, with over 840 stores across the United States (Hobby Lobby Newsroom).
The company’s mission is to enable customers to “Live a Creative Life®” by offering a wide selection of arts and crafts supplies, home decor, and specialty items. This customer-centric approach reflects Hobby Lobby’s commitment to creativity and innovation (Hobby Lobby Newsroom).
Hobby Lobby upholds core values that drive its business operations. One notable value is the closure of all stores on Sundays, allowing associates to have dedicated time for family and worship. This practice sets Hobby Lobby apart from many other retailers and highlights the company’s commitment to work-life balance and supporting the well-being of its employees.
Moreover, Hobby Lobby demonstrates its dedication to its workforce by offering pay raises significantly above the national minimum wage, emphasizing employee satisfaction and overall well-being.
Understanding the background, mission, and values of Hobby Lobby provides key insights into the company’s foundation and guiding principles. These elements shape the company’s strategic decisions and contribute to its overall success in the arts and crafts retail industry.
Hobby Lobby’s Business Strategy
Hobby Lobby, as a prominent retail company, has implemented a comprehensive and purposeful business strategy to drive its growth and success in the industry. This section will explore the key aspects of Hobby Lobby’s business strategy, including its growth and expansion strategy, product offering and target market, and retail store design and layout.
Growth and Expansion Strategy
Hobby Lobby follows a deliberate and purposeful growth strategy that focuses on expanding its store presence in markets where the company is not yet established and has a strong potential for growth. By entering new markets, Hobby Lobby can meet the demand for its products in diverse regions (Shopping Center Business).
An essential element of Hobby Lobby’s growth strategy is its approach to real estate. Unlike many other retailers that rely on leasing store locations, Hobby Lobby focuses on acquiring and owning the real estate where its stores are located. This ownership structure provides the company with flexibility and control over its expansion and operations (Shopping Center Business). By owning its store locations, Hobby Lobby can maintain a conservative approach to growth, expanding steadily and consistently over the years.
To serve its existing customer base effectively, Hobby Lobby strategically locates new stores in proximity to its existing ones. This approach ensures convenience for loyal customers while also attracting new shoppers. By focusing on areas where it can serve customers better, Hobby Lobby demonstrates a purpose-driven growth strategy that aligns with its mission and values.
Product Offering and Target Market
Hobby Lobby’s business strategy includes a well-curated product offering that caters to a specific target market. The company focuses on providing a wide range of arts and crafts supplies, home accents, and seasonal decorations. This niche product selection appeals to individuals interested in DIY projects, home decor, and creative pursuits.
Hobby Lobby’s target market primarily includes hobbyists, DIY enthusiasts, artists, and individuals seeking unique home decor items. By understanding the needs and preferences of this target market, Hobby Lobby can tailor its product assortment to meet their demands. This targeted approach allows the company to establish a strong connection with its customer base, fostering loyalty and repeat business.
Retail Store Design and Layout
One of the distinguishing aspects of Hobby Lobby’s business strategy is its retail store design and layout. The company aims to create a welcoming and inspiring environment for customers to explore and discover products. Hobby Lobby stores are often spacious, well-organized, and visually appealing.
The store layout emphasizes ease of navigation and encourages customers to explore various sections, such as home decor, fabric, art supplies, and seasonal items. Hobby Lobby stores often feature visually appealing displays and creative vignettes that inspire customers and showcase the possibilities of the products available.
By focusing on creating an enjoyable and visually stimulating shopping experience, Hobby Lobby enhances customer engagement and encourages longer store visits. This strategic approach contributes to a positive brand perception and customer satisfaction, ultimately supporting the company’s growth and success.
Hobby Lobby’s deliberate and purposeful business strategy has been instrumental in its growth and success in the retail industry. By focusing on strategic expansion, catering to a specific target market, and creating an inviting store environment, Hobby Lobby has established itself as a leading retailer in the arts and crafts space.
Hobby Lobby’s Marketing and Sales Strategy
Hobby Lobby employs a comprehensive marketing and sales strategy to attract and retain customers. Their approach includes a coupon strategy, sales rotation strategy, and a customer loyalty approach.
Coupon Strategy
Hobby Lobby heavily relies on coupons as a key aspect of their business model. They offer a standard 40% off coupon that customers can use for any regular-priced item. This coupon serves as a powerful incentive, driving significant foot traffic and sales to their stores. By offering this discount, Hobby Lobby creates a sense of urgency and encourages customers to make purchases (DontPayFull). The coupon strategy helps them attract new customers and retain existing ones.
Sales Rotation Strategy
In addition to their coupon strategy, Hobby Lobby implements a sales rotation strategy. They regularly rotate the items on sale, ensuring that customers have fresh opportunities to find discounted products. By constantly refreshing the sales items, Hobby Lobby maintains customer interest and encourages repeat visits. This strategy also allows them to showcase a wide range of products from various departments, catering to diverse customer needs.
Customer Loyalty Approach
Hobby Lobby does not have a formal loyalty program, but their coupon-driven strategy serves as a loyalty builder by keeping customers engaged and returning for deals. The standard 40% off coupon, along with the sales rotation strategy, helps cultivate a sense of loyalty among customers. By consistently providing discounts, Hobby Lobby fosters customer satisfaction and encourages repeat business. Their efforts to create a positive shopping experience and offer attractive deals contribute to customer loyalty (DontPayFull).
By combining their coupon strategy, sales rotation strategy, and customer loyalty approach, Hobby Lobby has successfully created a marketing and sales strategy that attracts customers seeking craft supplies, home decor, and other specialty items. These strategies, along with their carefully planned store layout and design, contribute to the overall success of Hobby Lobby in the retail industry. For a detailed analysis of Hobby Lobby’s business strategy, including strengths and weaknesses, refer to our Hobby Lobby SWOT analysis.
Hobby Lobby’s Online Presence
In today’s digital age, having a strong online presence is crucial for businesses to thrive. Hobby Lobby recognizes the importance of this and has made significant efforts to establish and grow its online presence. Let’s explore Hobby Lobby’s online presence in terms of website traffic and engagement, digital marketing channels, and the geographic distribution of online traffic.
Website Traffic and Engagement
Hobby Lobby’s website, hobbylobby.com, has experienced impressive traffic over the past six months. According to data from SimilarWeb, the website has received approximately 57.8 million visits during this period. This substantial number of visits indicates the popularity and reach of Hobby Lobby’s online platform.
Visitors to hobbylobby.com demonstrate a high level of engagement, spending an average of about 10 minutes and 31 seconds on the website per visit. Additionally, visitors browse an average of 21.53 pages during their time on the site. These figures reflect the captivating nature of Hobby Lobby’s website content, which encourages visitors to explore various sections and products.
Digital Marketing Channels
Hobby Lobby employs a diverse range of digital marketing channels to promote its online presence and engage with customers. The company’s marketing strategy includes a mix of organic and paid efforts.
Organic search plays a significant role in driving traffic to hobbylobby.com, accounting for approximately 15.80% of the website’s visits. This suggests that Hobby Lobby’s website is well-optimized for search engines, allowing it to attract visitors through relevant and organic search queries.
Hobby Lobby also benefits from strong brand recognition and customer loyalty, as evidenced by the substantial portion of direct search traffic, which accounts for 68.58% of visits to hobbylobby.com. This indicates that many visitors are familiar with the brand and actively seek out the website for their shopping needs.
In addition to organic search and direct traffic, hobbylobby.com receives visitors through other channels. Referrals contribute to 5.24% of the website’s traffic, highlighting the impact of external websites and platforms that refer visitors to Hobby Lobby. Social media contributes to 2.02% of the website’s traffic, indicating that Hobby Lobby utilizes platforms like Facebook, Instagram, and Twitter to engage with its audience and drive traffic to its website. Paid search, with a contribution of 1.25%, demonstrates Hobby Lobby’s investment in paid advertising to further enhance its online presence.
Geographic Distribution of Online Traffic
Hobby Lobby primarily focuses on its domestic market, with the majority of its online traffic originating from the United States, accounting for 91.01% of visits to hobbylobby.com. This emphasizes the company’s commitment to serving its American customer base.
While Hobby Lobby’s primary focus is on the United States, its online presence extends internationally. Canada accounts for 1.67% of hobbylobby.com’s traffic, showcasing a smaller but still significant international audience. Additionally, India contributes 1.08% of the website’s traffic, indicating a global interest in Hobby Lobby’s offerings.
By maintaining a strong online presence, Hobby Lobby effectively reaches and engages with its target audience. The company’s website traffic and engagement metrics, diverse digital marketing channels, and geographic distribution of online traffic reflect its successful efforts to establish a prominent online presence in the retail industry.
For a comprehensive analysis of Hobby Lobby’s strengths, weaknesses, opportunities, and threats, check out our article on Hobby Lobby SWOT analysis.
Hobby Lobby’s Stand on Controversial Issues
Hobby Lobby has gained attention and sparked controversy due to its stance on certain issues. However, these controversial positions have been strategically utilized to differentiate the brand and establish authenticity, ultimately contributing to their overall business strategy.
Brand Differentiation Strategy
Hobby Lobby’s approach to controversial issues, such as their stance on employee birth control, has played a significant role in their brand differentiation (BrandTrue). By taking a polarizing stance on these topics, Hobby Lobby sets itself apart from its competitors and stands out in the market.
While this controversial position has resulted in some consumers disagreeing with their values, it paradoxically enhances the authenticity of the brand. By standing up for their beliefs, even in the face of potential backlash, Hobby Lobby demonstrates a commitment to their values and creates a more meaningful connection with their audience. This strategy of standing up to stand out has been beneficial for their business, as it helps them establish a distinct identity in the retail industry.
Authenticity and Connection with Customers
By taking a firm stance on controversial issues, Hobby Lobby enhances the authenticity of its brand. This authenticity resonates with a specific segment of consumers who align with the company’s values and beliefs. Hobby Lobby’s unwavering commitment to its convictions creates a sense of trust and loyalty among customers who share similar viewpoints.
The strategy of staying true to their beliefs and values enables Hobby Lobby to make a deeper connection with their audience. This connection goes beyond the transactional relationship and fosters a sense of shared values and identity between the brand and its customers. By standing up for what they believe in, Hobby Lobby establishes an emotional connection with their target market, which can lead to long-term customer loyalty and advocacy.
Hobby Lobby’s strategy of taking a controversial stance on certain issues has not only differentiated the brand from its competitors but has also enhanced its authenticity and created a stronger connection with its customers. By embracing their polarizing positions, Hobby Lobby establishes a distinct identity and fosters loyalty among a specific segment of consumers who share their values.
Hobby Lobby’s Success Story
Hobby Lobby’s journey from humble beginnings to becoming the largest privately owned arts-and-crafts retailer globally is a testament to its success story. The company’s commitment to core values, combined with a purposeful growth strategy, has played a significant role in its achievements.
Humble Beginnings and Growth
Hobby Lobby’s story began in 1970 when David and Barbara Green started making miniature picture frames out of their home. From these modest beginnings, the company expanded to a 300-square-foot store in Oklahoma City. Today, Hobby Lobby boasts over 1,000 stores and employs more than 46,000 individuals across 48 states.
Commitment to Core Values
One key factor in Hobby Lobby’s success is its unwavering commitment to its core values. The company’s dedication to its customers is evident in its mission to enable individuals nationwide to “Live a Creative Life®”. This customer-centric approach and focus on creativity and innovation have resonated with its target market, contributing to its strong brand loyalty.
Hobby Lobby also upholds its core values through its commitment to its employees. For instance, the company closes all its stores on Sundays, allowing associates to spend time with their families and engage in worship. Additionally, Hobby Lobby offers pay raises significantly above the national minimum wage, showcasing its dedication to employee well-being and satisfaction.
Purposeful Growth Strategy
Behind Hobby Lobby’s success lies a purposeful growth strategy. The company strategically opens stores in markets where it is not yet established and has a strong presence. This deliberate approach enables Hobby Lobby to meet the demand for its products in diverse regions and enter new markets (Shopping Center Business).
Furthermore, Hobby Lobby’s growth strategy extends beyond solely focusing on new markets. The company also strategically locates new stores in proximity to existing ones. By doing so, Hobby Lobby ensures convenience for its loyal customer base while also attracting new shoppers (Shopping Center Business).
Through its commitment to core values and purposeful growth strategy, Hobby Lobby has achieved remarkable success in the arts-and-crafts retail industry. The company’s dedication to customer satisfaction, employee well-being, and strategic expansion has propelled it to become a prominent player in its market, solidifying its position as a leader in the industry.
Hobby Lobby’s Business Strategy
Hobby Lobby, a well-known retail company, has implemented a strategic approach to drive its growth and success in the industry. By analyzing their business strategy, we can gain insights into the factors behind their achievements.
Growth and Expansion Strategy
Hobby Lobby employs an aggressive expansion model, aiming to continue its growth by opening new stores in markets where the company is not yet established and has a strong presence. This strategic approach allows Hobby Lobby to enter new markets and meet the demand for its products in diverse regions (Shopping Center Business). Their commitment to purposeful growth is evident as they continue to expand their store footprint and reach new customers across the United States.
The company strategically selects high-value locations in major cities, particularly in high-income areas, to open new stores. This approach enables Hobby Lobby to enhance its market presence and buying power, even during economic downturns. Additionally, the company’s healthy financial position, with no outstanding debt, further strengthens its chances of weathering challenges in the retail industry.
Product Offering and Target Market
Hobby Lobby’s business strategy is centered around offering a wide range of products to meet the diverse needs of their target market. They cater to hobbyists, crafters, and DIY enthusiasts by providing a vast selection of arts and crafts supplies, home decor, seasonal items, and more. By continuously expanding their product offerings and staying attuned to the interests and preferences of their customers, Hobby Lobby maintains its appeal and relevance in the retail industry.
Retail Store Design and Layout
Another element of Hobby Lobby’s business strategy is their focus on retail store design and layout. Their stores are meticulously designed to provide an enjoyable and immersive shopping experience for customers. Hobby Lobby stores are known for their spacious layouts, organized product displays, and well-lit aisles. This attention to detail creates an inviting atmosphere and allows customers to navigate the stores with ease, enhancing their overall shopping experience.
By implementing these strategies, Hobby Lobby has established a strong presence in the retail industry. Their purposeful growth strategy, coupled with their commitment to providing a wide range of products and creating an appealing store environment, has contributed to their continued success in the market.
To gain a comprehensive understanding of Hobby Lobby’s business strategy, it is essential to conduct a thorough SWOT analysis to evaluate the company’s strengths, weaknesses, opportunities, and threats. This analysis will provide further insights into the factors that have propelled Hobby Lobby’s growth and sustainability in the retail industry.
