Retailer Profile <br />Retailer Type: Specialty retailer (Electronics Retailer)<br />Target Market: TBD<br />Products<br />Sells consumer electronics<br />Home appliances (washing machines, dryers, and refrigerators)<br />A/V for Automobiles Department<br />Services<br />Computer repair and warranty service and accidental service plans (Geek Squad )<br />Onsite installation of auto A/V parts<br />Highlights<br />Sales people are not on commission.<br />Policy of Results Only Work Environment<br />Policy of No expensive gifts from vendors / customers to employees<br />
Location & Site<br />Best Buy building exteriors <br />Usually light brown in color <br />The entrance look like a blue box emerging from the rest of the structure<br />Older stores have a more utilitarian brick building without the blue structure.<br /> Best Buy is sometimes called the "big blue box" because of the prominent design on Best Buy stores. This store is located in East Palo Alto, California.<br />
Future Shop store in Halifax, Nova Scotia<br />
Best Buy Store located in Shanghai, China<br />
<ul><li>Geek Squad® Agents and Installers are ready to take the hassle out of your technology woes. They have the know-how and skill to set up, install or repair your computer, network, home theater solution and car audio, video and navigation systems, no matter where you bought your gear.</li></li></ul><li>Best Buy: The Every-Day-Is-Saturday Model<br />Philosophy: We’re all adults here. Work is not a place you go, it’s something you do, so there’s no reason for the company to dictate when and where employees work. Managers look solely at results produced, not hours spent at a desk or in meetings.<br />Org Hierarchy: Traditional. Some things don’t need to change.<br />
Store Design<br />House Colors:<br />Blue, Yellow<br />Logo:<br />Yellow Tag<br />Signature Façade<br />Ample parking<br />Easy access from Highways<br />Convenient Store Hours (Extended store hours on Weekends and Holiday period)<br />
Store Layout<br />Store Layout:<br />Mix and Match of Loop, Free Form and Grid<br />No Clutter<br />Wide aisles<br />Danglers<br />End Caps<br />Proper Lighting<br />Experience Zones (HD TV, High-end speakers & Games)<br />
Store Layout for Geek Squad<br />Use of brand specific colors<br />
Merchandising Management<br />Best Buy's switch to vendor-managed inventory is not moving as quickly or aggressively as planned<br />It aimed to close its warehouse and have shelf-ready product shipped directly to stores, with vendors assisting in inventory management <br />Independent labels are still not able to provide that though big brands are ready for it<br />
Merchandising Management<br />Best Buy International Deploys Predictix Merchandise Financial Planning and Item Planning software<br />Key benefits of the Predictix planning applications include:<br />Merchandise Financial Planning: <br />Item Planning: Complete visibility to top-down plans allows a more precise Open to Buy; <br />It also provides the ability to plan purchase order quantity and auto-execute to Best Buy’s SAP enterprise application with no re-keying.<br />Consistent Planning Processes: Predictix is a disciplined, end-to-end planning process.<br />
Pricing Strategy<br />Pricing for Purpose<br />Every product on shelf in Best Buy falls under certain segment for pricing. <br />Each segment is priced for a purpose. <br />For example core category such as flat-screen televisions is priced to maximize total revenue;<br />Where as items that are designed to drive traffic into the store, such as DVD players, are priced more aggressively in order to drive unit sales<br />
Pricing Strategy<br />Match the Price<br />This is to drive out competition in times of online purchase where consumer forums and sites gives a user instant lowest prices for a product<br />Best Buy tries to match the lowest price offered by any retailer on an exactly same product<br />The online price of Best Buy.com at times is lower than store prices. On store they would match the price provided the item is in stock at that particular store.<br />
Pricing Strategy<br />Fees on return goods<br />Best Buy has began enforcing a restocking fee of 15% of the purchase price on returned merchandise. <br />And to discourage customers who return items with the intention of repurchasing them at an "open-box" discount, it is experimenting with reselling returned items online.<br />
Communication Mix<br />Best Buy ensures that all of the components of its communication mix are aligned and conveying the same message in the same way to its customers and target audience.<br />Best Buy Express a new way to communicate<br />
Talent Management<br /><ul><li>Notable Perks: Trust. No one judges where you are or how you’re getting your work done.
Evaluations: Customer driven. Along with your manager, the customer is in the best position to know how well you’re delivering results.
Career Development: Merit-based promotions. In a results-only environment, schmoozing the boss won’t get you anywhere.
Work-Life Balance: Unlimited paid vacation. If you get your work done, what you do with the rest of your time is up to you.Where It Works: Best for offices rather than retail or manufacturing floors.</li></li></ul><li>Reward Program<br /><ul><li>Receive the same perks as the Reward Zone program membership, plus...
Earn 2 points per $1 spent on qualifying purchases at all U.S. Best Buy stores and at BestBuy.com.
Earn 1 point per $2 spent on purchases outside of Best Buy, plus bonus category purchases in dining and groceries at 1 point per $1 spent*.
Supply Chain<br />Audit & Rating of factories and 3rd party manufacturers<br />Electronics Industry Citizenship Coalition (EICC)<br />Global social compliance program (GSCP)<br />Supplier diversity (Women & Minority supplier)<br />Goods Not For Resale program<br />Ethisphere names Best Buy to 2010 list of “World’s Most Ethical Companies”<br />
Multi-Channel Retailing<br />E-Tailing<br />Bestbuy.com,Magnoliaav.com,GeekSquad.com etc,<br />Mobile<br />View Promotion, Play Games & Purchase<br />International expansion<br />Europe, China, Japan, Mexico & UK (recently)<br />Outlet cenetr<br />Other brand stores (Magnolia, AudioVision,…)<br />Special B2B sites<br />Best buy for business<br />Best buy for education & <br />Best buy for business<br />
Other areas<br />Best Buy Remix<br />Forum that provides tools and interfaces for developers who use the products that are sold at BBY<br />Co-creation<br />IDEAX-a forum, where customers can share their ideas for Best Buy<br />Facebook<br />Twelpforce<br />Strategic partnership with leading manufacturers<br />Panasonic (exclusive launch of 3D HD TV in BBY’s New York Store)<br />Sony<br />Canon<br />