Presentation on Best Buy, a leading electronics retailer

1. MARKETING CASE STUDY

2. Expert Service.
Unbeatable Price.
Subsidiaries :Geek Squad, Pacific Sales, Magnolia, Future Shop
Headquarters: Minnesota, United States
World’s Largest Consumer Electronics Retailer
Revenue : $42 billion

3. 1477 Retail stores worldwide!!!
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5. Powerful
market
position
through
expansion
Salaries to
commissioned
sales people
Biggest seller
of home PCs
Relaxed
shopping
environment
Introduced
new store
concept
in 1983-1990’s

6. New
Challenges…

7. Increase in
competition
Showrooming
Shift in
consumers
interest
Dipping sales due to
single channel
strategy
Emergence of
online retailers
in 2000’s

8. No store
High
Varietyofelectronic
itemsoffered
Low
Size of store Large store
Amazon
eBay
Netflix
GameStop
Magnolia
RadioShack
CompUSA
Fry’s
TARGET
Wal-Mart
Costco
TheCompetitionZone

9. Points-of-Difference
Strategies adopted by Best Buy to gain competitive advantage
over other brands

10. Hired knowledgeable sales
people to attend tech –savvy
customers
Provided shopping assistants to
help mom shoppers
Trained employees to give
information about discounts and new
offers to influence price conscious
people
CUSTOMERSEGMENTATION

11. STILL! The company struggled…

12. Hubert Joly –
The CEO-man arrives…
in 2013

13. New Strategies

14. The revamped format is called the “Connected Store.”
Introduced a central runway to showcase the latest technologies.
Additional space to profitable products like smart phones, iPads.
Moved the declining categories to back end- TVs , CDs, DVDs,
entertainment devices.
L Large touch screens to search for in-store product availability and
conduct side-by-side product comparisons.
1.Optimizedlayoutofstore

16. Decrease in
Large stores
Increase in
Small mobile
stores
2. TRANSFORMATION

17. Drive cost reduction and Efficiency
Lower transportation costs
Better use of labor
Lower markdowns
Build strong industry position and Multi-channel sources
Blue Assist- allows customers to shake their device to get live help through chat, email
Increased product line in home emerging categories
Reduced wait time for customers
Advanced key initiatives to drive future growth
Educational sales approach to make people aware about latest technologies
Investment in Internet of Things
Better post purchase support
3.RENEWBLUE2016

18. Geek Squad hires certified
technicians called ‘agents’
to provide solutions to
customer problems.
Geek Squad is a subsidiary
of Best Buy and its
precincts exist in all stores.
.
Geek Squad provides
technological services -
 In-store
On-site emergency support
Over Internet
24-hour telephone service

19. Improved
customer help
Shipping
option
Geek Squad
Support
Rating
Easy tools for
comparing prices
Nearest
store
locator
Open-box
Item at lower
prices
features
Membership
cards
5. www.bestbuy.com

20. 6. Best Buy App

21. More
recyclable
packaging
Purchase
of green-
power
Collection of
consumer
electronics
and e-waste
Proper
disposal of
electronic
components
7.EnvironmentalConcerns

22. SWOT Analysis
STRENGTHSSTRENGTHS
• Largest brick and mortar electronics
retailer.
• Focus on customer service and
support.
• Offers latest electronic items through
multiple channels.
WEAKNESS
• Huge maintenance and costs.
involved in maintaining large stores
• Dependence on third-party vendors.
• Declining profit margin in unpopular
product categories
OPPORTUNITIES
• Expanding global presence.
• Investment in latest technology.
• New marketing and communication
channels to reach customers.
THREATS
• Intense Competition.
• Showrooming.
• Manufacturer’s direct engagement
with customers.

23. RECAP

24. Created by Avani Jain, NIT Raipur,
during a marketing internship under
Prof. Sameer Mathur, IIM Lucknow
Sameer Mathur
Indian Institute of Management,Lucknow
DISCLAIMER