Perfect 10 AgencyMargaret LawsonHannah Hickman Jasmine MilliganJennifer Hamilton Davondra Jones
Where do you prefer to shop for electronics? – Amazon: Text 14935 – Best Buy: Text 14936 – Apple: Text 14961 – Other: Text 9957• Text to 22333• http://www.polleverywhere.com/multiple_choice_polls/MTk 5NDY4NzY0NQ
Why do you prefer this retailer? – Customer Service: Text 16146 – Product Assortment: Text 16183 – Price: Text 16199 – Other: Text 16230• Text to 22333• http://www.polleverywhere.com/multiple_choice_polls/LTE4 MzA1MzAyMjM
Brief Overview of the Company• The company founded by Richard M. Schulze in St. Paul, MN in the 1960’s• Originally named “Sound of Music”, and started out selling car/home stereos.• In 1983, “Sound of Music”, was coined the name “Best Buy” and further product/store expansion ensued.• The company gains it main revenue from home/office electronics, software, appliances and other services (Geek Squad).• Today the company operates over 1,100 stores worldwide and employs around 180,000 associates• The company relies on customer centricity to keep business.
Strengths Weaknesses• “Big Box” store environment • Competitive Pricing• Geek Squad (store-within- • Online Retailers store) • Customer Service• Price Matching • Non-commissioned based• Uniformity (electronics) pay for employees• 18 month financial plan SWOT Analysis Opportunities Threats • Redesign store exterior/interior • Mass merchants • Better employee training/ uniforms • Online Retailers • Commission based pay • Competitions Pricing • More interactive media • Online site redesign • Radio/Magazine ads
Positioning Map High QualityHigh Quality Low Quality Low Quality
Target Market• Generation Y – 1980-2000• Baby Boomers – 1946-1964- Specifically:• tech savvy individuals• Small business owners• Surrounding families
Message Strategy• Customer Centricity: •How the customer is treated before, during and after the sale.“Make all consumers feel welcomeregardless of their knowledge oftechnology, while building thatconnection/trust with consumersand having an energetic/informativestaff.”
Best Buy’s Current Promotional StrategyBest Buy’s Social Technology Strategy• http://www.youtube.com/watch?v=whzN-7uCiZw• “Buy back program”• Price matching in store• Buy online-pick up in store• Best Buy card – No interest for 18 months• “Weekly offers”/ “Deals of the day” online
New Promotional Strategy• Promote through different media channels including radio and magazine advertisements.• Give coupons and discounts for students and to Baby Boomers – 10% off entire purchase with student ID or AARP card.• Limited time promotions for back to school and major holidays – Back to School, Black Friday, Christmas• Focus will be placed on different cities with the population of our target markets – Major college towns – Major retirement communities
Media Strategy Create brand recognition and broaden the consumer knowledge that our brand is for the everyday consumer.• Magazine Advertisement• Interactive Advertisement• 2 Special Events• Radio Advertisement
Magazine Advertisement• Generation Y – Highlight the newest technologies and student discounts • Fitness • Glamour • Men’s Health• Baby Boomer – Highlight the fun and ease of retirement • AARP • Better Homes and Garden • Ladies Home Journal
Interactive Advertisement• “The Wish List” – Show us what you want! – Christmas/ Graduation – Take a pic • Instagram • Facebook • Twitter – Reward $$$
Special Event Movie Night• Promote through: – Flyers – E-mails to Best Buy card members• Showcase new products – Movies – 3D Televisions – Etc.
Special Event Tutorial Class• Educate the consumer about the newest products• Offer discounts to participants• Similar to: – Home Depot • Weekly Workshops – Apple Genius Bar • http://www.youtube.com/watch?v=xqQaQ98eRAo• Connect to the consumer
Which special event would you be more likely to attend? – Tutorial Event: Text 20621 – Movie Night: Text 21182 – I would not be interested in either: Text 21381• Text to 22333• http://www.polleverywhere.com/multiple_ch oice_polls/MjkzMDQ0NDE0
Radio Advertisement• Radio advertisements will be on a pulsing schedule. Continuous scheduling and a flighting schedule during the holiday season.• Generation Y – Highlight student discounts and special events • Kiss FM • The Edge• Baby Boomer – Highlight special events and customer service • NPR • The Ticket • http://www.youtube.com/watch?v=AvC6pZ12TO4
Evaluation• Analytics – surveys• In house Feedback – Manager conference calls – Live chats – E-mails• Observations – Overall performance • regional and individually
References• Best Buy Inc (n.d.) http://www.BestBuy.com• Goodson, M. (2011) Is Brand Loyalty the Core to Apple’s Success? Forbes Retrieved from: www.forbes.com/sites/marketshare/2011/11/27/is-brand-loyalty-the-core-to-apples-success-2/HBS Review (2010) Inside Best Buy’s Customer Centric Strategy BloomBergBusinessWeek• Retrieved from: http://www.businessweek.com/managing/content/apr2010/ca20100413_286655.htm• Boyle, M. (2006) Best Buy’s giant Gamble CNNMoney Retrived from: www.money.cnn.com/magazines/fortune/fortune_archive/2006/04/03/8373034/index.htm• Pederson, J. (2004) International Directory of Company Histories: Best Buy• Perry, M. (2011) Walmart: The Most Successful Retailer in History Retrieved from: http://www.dailymarkets.com/economy/2011/07/18/walmart-the-most-successful-retailer-in-history/• Poeter, D. (2011) Infographic: The Secret to Amazon’s Success Retrieved from: http://www.pcmag.com/article2/0,2817,2396634,00.asp• Coran, Terry. (2011). Common Spending Habits of College Students. Retrieved from http://www.brighthub.com/education/college/articles/80305.aspx• Desjardins, Eric and Deris, Johanna. (n.d). SOCIAL NETWORKING USAGE AND GRADES AMONG COLLEGE STUDENTS. Retrieved from http://www.unh.edu/news/docs/UNHsocialmedia.pdf• Marketing Charts Staff. (2007). Survey: To Reach College Students, Brands Need to Use Internet. Retrieved from http://www.marketingcharts.com/wp/television/survey-to-reach-college-students-brands-need-to-use-internet-1389/• State University. (n.d.) College Extracurricular Activities - Impact on Students, Types of Extracurricular Activities. Retrieved from http://education.stateuniversity.com/pages/1855/College-Extracurricular-Activities.html• U.S. Department of Education, National Center for Education Statistics. (2012). Digest of Education Statistics, 2011 (NCES 2012- 001), Chapter 3 . Retrieved from http://nces.ed.gov/fastfacts/display.asp?id=98• Wilson, M.O. (1927). The American Journal of Psychology. Vol. 38, No. 3, pp. 409-417 Published by: University of Illinois Press Article Stable URL: http://www.jstor.org/stable/1415009• (n.d.). Retrieved November 14, 2012, from 2012 Factbrowser.com: www.factbrowser.com• Yip, P. (2012, August 10). Baby Boomers make a plum marketing target. Retrieved from www.dallasnews.com
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