The company I picked is Best Buy. Right now Best Buy has a fairly strong online presence, but I think it can be even stronger. Best Buy is doing a lot of work to build a relationship (mostly on their side) with the consumer. I think they could use new media to launch new products and push current promotions.
We all know what BB sells and provides for it’s customers. But, did you know that they employee 155,000 employees and had revenues of over $45 billion in 2009?! These revenues were a 12.5% increase from 2008 that can largely be attributed to the acquisition of Best Buy Europe. Something I found especially interesting was all the other brands that BB owns.
Best Buy faces a few challenges currently. Competition with Best Buy has grown, mainly due to online e-tailing. Some consumers prefer to use internet-based companies such as Amazon because of their wide-range of product reviews. They are able to decipher which product best fits their needs/wants and then purchase products accordingly.I have encountered that often times the complaints about BB deal with the Geek Squad. It seems that Customers tend to get frustrated when their products don’t work properly and then the Geek Squad can’t handle the situation correctly, therefore projecting a negative image on the entire BB company.With many products being manufactured in China there often times are quality issues. Sometimes this is in direct correlation to product recalls. If customers can’t trust to buy a well-made product from BB they will go to a competitor.The U.S. economic downturn has limited consumers discretionary income which ultimately leads to a decrease spending on products and services found at BB. It has also hindered currency exchange rates. They have noticed a decline in sales because of unfavorable fluctuations in currency exchange rates.Lastly, the limited supplier base restricts BB’s ability to survive without certain suppliers. They do not have a long standing contract between BB and the supplier. So, if at any time certain suppliers decide to pull out of BB they could be in a world of hurt.
BB has several goals. Some overall goals that are not achievable by new media per say, but are fueled by new media are building their overall market presence and build their supplier base. Building their overall market presence begins with the relationships formed by new media, but it is important to note that these relationships need to be fostered through in-store experiences. They are also able to build market presence by acquiring more companies, expanding in to new markets, as well as expansion of current markets. It is also critical for BB to build their supplier base. Then they will not become so dependent on certain suppliers. Goals achievable by new media include proving they provide the best products and customer service, developing relationships with customers, building a stronger online presence and growing online sales. Making BB the first place a customer goes (whether online or in the store) to find out about a new product will help achieve all of these goals.
Through this new media campaign I want to make BB the place consumers go first (well second after they get on the internet or in the car). BB needs to be THE leading industry expert on all the products and services they offer. They will be able to build brand loyal customers through these relationships they create and maintain.
Best Buy currently uses most social media networks, but I think they can improve the way that they use them. Twitter can be used for connecting with consumers. They can offer certain promotions only to their Twitter followers. They should tweet more often than they currently do. They could feature a certain product every day or week and tweet all about it. This would make their followers interested in that product and create a buzz, which should stimulate a purchase.They can use Facebook for a similar aspect. The page could be used for consumers to discuss what they have bought, what they used it for, or even just to answer questions for one another. It should also be monitored by a BB employee and respond to all messages. It can be used for connecting with not only BB but other loyal BB customers. I think BB could use LinkedIn in a slightly different way. They should create a group page that is for business people and companies. On this page they could promote select equipment that is used in the office. They then could offer certain discounts for business owners. This would increase bulk purchases made by companies.As with any new media campaign, policies need to be implemented and the internet world needs to be monitored. Using policies sets a standard for the business that helps drive their social marketing campaigns. It ensures everything stays within the realm it was intended. Monitoring the social networking sites allows for evaluation of comments. BB can then respond accordingly.These networks can be used to bee seen as the industry expert. They are able to share and gain useful industry knowledge.Google AdWords is another good route for BB to take because it allows them to get exposure and build brand awareness. Adwords, compared to other forms of advertising, is a relatively cheap form of advertising. The ad only has to be paid for once it is clicked on. Also, they are very targeted ads that can be quickly edited for any promotion BB may be having.
All components will help boost Best Buy’s SEO but they also need to focus on boosting their organic search results. When searching Google BB shows up in the number one stop for the keyword electronics, but for other words such as cameras, DVDs or TVs they don’t even show up on the first page. By being on the first page for keywords that are major products of BB they will be able to drive way more traffic to their site. Blogging would fit well with BB’s campaign because they will be able to appear as the industry expert for all the products they sell. With consumers first going to BB to get their answers they will build a certain trust and faith in them. This will cause the consumers to only want to shop from BB. Not only can BB share pertinent industry information, but they also can gain some information from other industry leaders. The mobile ads can be useful to gain impressions on consumers searching for a local competitor. Often times when I am driving and looking for a certain store I use my phone’s map to locate it. If BB creates an ad to show up for when competitors are searched and give directions to the nearest BB they will be able to convert that customer into a BB customer.BB currently uses YouTube to display what kind of company BB is. I think that they should continue using YouTube for that kind of promotion, but also for sales promotions and new products. Having an interactive video of someone using a brand new product on the market would be a great way to get consumers interested. The features and benefits shown in the video will entice the consumer to come in to the store and try it for themselves.All of the components of the campaign have one main streamlining theme – promote new products and promotions. Right now most of the ways customers find out about current BB promotions are through weekly ads in the newspaper or by searching for it yourself on the website. I think that if they use all of these mediums to push the current yellow tag promotions they will be able to drive more traffic to their stores.
Monitoring all of the mentions of BB in social media networks will be the first step in adjusting the campaign. To be successful the campaign should constantly be evaluated and adjustedWith an increase of followers on social media networks and more clicks on Google AdWords we will know the campaign is beginning to be successful. An increase in these numbers is just a start to track the successfulness of a campaign. It is ultimately the sales and revenues produced from the campaign that gives us a true depiction of what worked and what didn’t. We can track the correlation between local stores and pushes of the campaign in those areas.
Most of the budget should be allocated towards social media. This is where the beginning of online relationships with consumers begins. Then connecting through the other avenues will come smoothly.
The peak season for sales at BB is during the winter holidays when everyone is buying gifts for loved ones. This new media campaign should be run throughout the course of the year, but needs to have a narrowed focus before and during the holiday season. The best route would be to start the campaign in February and run it steadily until October, at which point they should begin to really push the campaign during November and December. Even pushing the campaign in to January when a lot of individuals are doing returns and exchanges from the holidays.
Best Buy Social Marketing Campaign
By: Marci Decker<br />NMDL Final Presentation<br />4.24.10<br />
Client’s Business<br />Products <br />Electronics<br />Home & office products <br />Entertainment software <br />Appliances<br />Services <br />Geek Squad<br />Offers repairs, support & installation<br />Sales via retail stores and online<br />155,000 employees<br />2009 revenues of over $45 billion<br />12.5% increase from 2008<br />Other brands:<br />Future Shop<br />Geek Squad<br />Magnolia<br />Napster<br /><ul><li>Five Star Appliances
Best Buy Mobile</li></li></ul><li>Challenges<br />Competition<br />Encounters of poor customer service <br />Especially within the Geek Squad segment<br />Quality of products <br />Some issues with products produced in China<br />Product recalls<br />U.S. economic downturn<br />Currency exchange rates<br />Limited supplier base<br />
Goals<br />Overall<br />Achievable via new media<br />Build overall market presence<br />Acquisition of other companies<br />Expanding in to new markets<br />Expansion within current markets<br />Build supplier base<br />Prove they provide the best products and customer service<br />Develop relationships with customers<br />Build a strong online presence<br />Grow online sales<br />
Theme<br />Building brand loyal customers through relationships created via new media<br />Maintained through new media and in-store experiences<br />
Key Components<br />Social Media<br />Twitter <br />Facebook<br />LinkedIn<br />Policies<br />Monitoring<br />All social media networks <br />Creates “buzz” about the company<br />Build relationships<br />Share & gain industry information<br />Relatively cheap advertising<br />Only have to pay for ad once it is clicked<br />Fast and easy to edit<br />Very targeted<br />
cont.<br />SEO<br />Boost rankings for results on major products<br />Blogging<br />Appear as industry experts<br />Share & gain industry information<br />Update customers about new products & promotions<br />Mobile Ads<br />Show ads on phones when user searches for competitor or product sold in Best Buy stores<br />Add videos of new products<br />Announce promotions<br />
Success Metrics<br />Monitor all Best Buy mentions in the social media world to see what customers are saying<br />Compare # of positive and negative comments<br />Decide what customers are saying is most important<br />Adjust strategy to adhere to the feedback<br />Track number of followers on social media networks<br />Track correlation between sales of local stores and new media strategy pushes in those areas<br />Monitor number of clicks and CTR on Google AdWords<br />Track organic search result rankings<br />