2. Praktiker RO – company history
Having German roots, Praktiker story in Romania starts in 2002, when the first store in Ilfov county was
opened.
Since then, until 2011 Praktiker has had the most dynamic expansion rhythm getting to 27 stores in 23
cities.
In February 2014, Praktiker Romania was taken over by Search Chemicals, owned by the Turkish
business man Omer Susli who came with a new vision, consumer centric based.
The expansion policy of Praktiker chain continued and in September 2014, the 28th store was opened in
the 24th city, Targu Jiu.
With high awareness in the DIY market (98% at national level), Praktiker brand gets in 2014 through a
repositioning process, with focus on soft DIY; home, deco and garden, rather than construction materials,
having in center the customer and its needs.
For selling construction materials we focus on B2B segment, which became a key source of business for
Praktiker starting February 2014.
Who we are?
3. Praktiker RO – company description
Renovation and redecoration ideas at friendly prices
Consultancy and advice on DIY projects
Services that facilitate the shopping process
The best price/quality ratio
Inspired by Romanians needs and their love for their homes, Praktiker prepared o wide range of products that
make it easy to turn a house into a home, the space that represents one and where it is a pleasure to return
every day.
And because people are so inventive, Praktiker helps develop the DIY spirit and redecorate your house based
on your own ideas! Thanks to the extended range of decoration products that we introduced in our offer, now
it is easier to personalize your house into a vivid and warm space!
Special orders
Paints mixing
Financial services
Products delivery
Return guarantee
Cutting wood
Sewing services
What is
Praktiker?
Why
Praktiker?
Praktiker
services
4. 2014 DIY CEE market accounts for 27,9 bn. EUR and it is expected to continue in 2015 the decreasing trend started in 2012.
International chains are the main players in the CEE region: Leroy Merlin, Castorama, Obi. Anyway, local companies Epicentr
(Poland) and Dedeman (Romania) ranks in top 5 companies by value at CEE level.
DIY market in CEE - 2014
5. DIY Market in Romania
Romanian DIY market in 2014 totalized 9,7 bn. RON and it is estimated to increase by 6,2% in 2015.
The market development is mainly driven by the stores expansion, +14 new stores it is estimated to open in 2015, according to
PMR data.
Home and garden in Romania witnessed positive retail value sales growth, aided by the country’s economic recovery and the
rejuvenation of the real estate market.
However, the psychological effect of the crisis remains in place and price continues to be a very important factor in the consumer
purchasing decision.
Nevertheless, consumers of home and gardening are becoming more interested in product quality and are willing to spend more.
6. DIY consumer
DIY consumer Europeans Romanians
House changes with family needs
77% of Europeans want to adapt their homes
for changing family needs
46% of Romanians want to adapt their homes for
changing family needs, especially to create more
space (30%)
Homes are needed for work and play
nearly half of people want or work from home
and 27% would like a play room
Romanians are the 2nd nation, after Turkey most
likely to adapt home for working from home
The most desired features for home
swimming pools 28%, fireplaces 26%,
conservatories 23%, hot tubs 22%
garage 28%, greenhouse 23%, paved garden 22%,
vegetable garden 22%
Home improvement priorities for next
5 years
energy efficiency, more space, space for
entertaining, working-from-home
energy efficiency, more space, space for
entertaining, working-from-home
Home improvement as value creator
68% of Europeans are making home
improvement changes to increase the value of
their home.
x
Top priorities in the next 12 months
painting and decorating, gardening, lighting,
new kitchen or renovation
replacing / renovating their kitchen (26%) or
bathroom (22%)
Most fears
Main fears across of householders: 65% fear
rising energy prices, 40% worry about paying
bills, 36% are concerned about maintenance
and upkeep and 23% are concerned about
keeping up with their mortgage.
Most worried nation about safety and security in
the home (52%) and keeping the home warm,
protection against fire and protection against
flooding
7. Praktiker RO Loyalty Program – unique in
DIY market
Praktiker’s loyalty program is unique in DIY market. It is a cumulative program, based on spend more – save more money
principle. Customers receive 5% and 10% discounts based on the value spent in Praktiker stores:
- at 3.000 RON acquisitions with the Blue card, customers receive 5% discount for each purchase, as a
voucher
- when acquiring the value of 15.000 Ron, Blue customers become Gold and they receive 10% discount for
each shopping basket
Having a Praktiker card offers more benefits: special price only for loyal customers, discounts for Praktiker services,
dedicated campaign and a web page with information only for loyal customers.
Currently, Praktiker has a base of 300.000 card holders and we target 1 mil until 2016.
Loyal customers represent in average 11,3% of the customers, and they generate app. 17,8% of NS and 14,6% of Profit.
8. Praktiker RO quality recognition
Praktiker is recognized as offering the best quality-price ratio for gardening products,
according with Best Buy Awards research, run by the Swiss organization ICERTIAS in 2015.
The research analyzed the way that Romanian customers are evaluating the local retail market offer, based on their
personal experience. The research results show that Praktiker is considered as the retailer offering the most advantageous
products within the gardening design and care segment.
The research had a sample of 1.200 respondents, regular customers and professionals from construction field, users of
internet. The web questionnaire contained opened answers questions and it was followed by Computer Assisted Web
Interviewing - Deep Mind Awareness (CAWI - DEEPMA).
9. Praktiker RO communication efficiency
recognition
Praktiker campaign ”De la casa la acasa” won the bronze trophy for retail category, within the 12 edition Romanian EFFIE
Awards. It is the second EFFIE award for Praktiker within the last 2 years.
„De la casa la acasa” campaign was in line with Praktiker repositioning in the current DIY market context. The new
communication platform was built on a relevant and differentiating territory within the Romanian home, deco and garden
market.
EFFIE Awards is a competition that offers recognition for communication campaigns with important impact in sales increase.