This document summarizes market research on positioning Best Buy to target the 18-24 year old demographic. It analyzes the target market segmentation including demographics, interests, and potential. The positioning strategy is to become the retail brand of choice by guaranteeing a comeback experience through an energetic and trustworthy brand that understands customer needs.

1. Best Buy – Market Research
Jason
Leah
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2010 © Jason T., Leah W., Lindsey S. & Tiffany L.

2. Content
2010 © Jason T., Leah W., Lindsey S. & Tiffany L.
Target Market Positioning
Segmentation Brand Positioning
Positioning Statement
Positioning Strategy
Value Proposition

3. Target Market Segmentation
Demographic
2006-08 American Community Survey Estimation
2010 © Jason T., Leah W., Lindsey S. & Tiffany L.
49.3% 50.7%
9.8% of 301, 237, 703
96% University/College Housing

4. Target Market Segmentation
SIZE 40% of 18-24 enrolled into colleges in 2008 (The Pew Research Center).
INTERESTS
The 18-24 group is three times more likely to communicate
through test messaging than all adults.
One quarter of Americans feel it’s a great way to flirt,
particularly among the 18-24 year old set (Business Wire, 2009).
An average consumer in this segment watch over 273 minutes
of online video per month (BizReport, 2009).
College educated 18-24 year old segment has an discretionary
per capita spend of nearly $13,000 (Business Wire).
Three in 10 people in 18-24 who don’t have a smart phone and
want one (Mobile Marketer, 2009).
POTENTIAL

5. Target Market Segmentation
Focus group:
2010 © Jason T., Leah W., Lindsey S. & Tiffany L.
“it’s too expensive for my budget!” “because they are a credible company.”
“…the employees at Best Buy would probably be more helpful
than someone working at more of a general store, like Kmart.”
“that the staff at Best Buy knows more about the different products
that are available.”

6. Target Market Segmentation
Early Adopters
Early Majority
Late Majority
Laggards
2010 © Jason T., Leah W., Lindsey S. & Tiffany L.

7. Target Market Segmentation
Early Adopters
College Students Non-Students
60%40%
2010 © Jason T., Leah W., Lindsey S. & Tiffany L.
“the most valuable
segment in the 18-24
demographic!”
(CGPA Media)

8. Target Market Segmentation
College Students
Spend 6 hours a day on campus.
Spend time with friends at local coffee shops/sports bar on weekend evenings.
Listen to music primarily on their MP3 players than the radio.
Rarely take more than 6 hours of TV in a week.
Early adopters of new media and technology
70% are aware of digital signage
27% took action based on the last time they saw advertising on digital signage

9. Target Market Segmentation
Other facts:
• College population is the most valuable
segment within the 18-24 demographic.
• They spend > $200 billion annually.
• They are open to trying new brands, often
becoming lifelong brand-loyal customers.
• They consume less traditional media.
• They respond differently to advertisements, and they
make benefit-driven buying decisions.
[CGPA Media Corp, 2007]
2010 © Jason T., Leah W., Lindsey S. & Tiffany L.

10. Key PlayersWhatBrandsAreWeTakingOn?
2010 © Jason T., Leah W., Lindsey S. & Tiffany L.

11. Brand Positioning Map
Expensive
Affordable
PoorCustomerService
GoodCustomerService
2010 © Jason T., Leah W., Lindsey S. & Tiffany L.

12. Positioning Statement
To Be The Retail Brand of Choice!
Guaranteed on Brand Experience
2010 © Jason T., Leah W., Lindsey S. & Tiffany L.

13. Positioning Strategy
BrandPositioning
BrandPromise
BrandEXPERIENCE
2010 © Jason T., Leah W., Lindsey S. & Tiffany L.

14. Positioning Strategy
It’s NOT about:
• how many outlets;
• how much marketing
budget;
• Mass/international market
advantage;
“Comeback Experience”
It’s about…
2010 © Jason T., Leah W., Lindsey S. & Tiffany L.

15. Choice of Strategy
G2CW4CWait for Customer Go to Customer
2010 © Jason T., Leah W., Lindsey S. & Tiffany L.

16. Values Proposition
Best among choices
Energetic professionals
Satisfaction guaranteed
Trustworthy brand
Build lasting relationship
Understand customers’ needs
Youthful
2010 © Jason T., Leah W., Lindsey S. & Tiffany L.

17. 2010 © Jason T., Leah W., Lindsey S. & Tiffany L.
Target Market Positioning
Segmentation
Brand Positioning
Positioning
Statement
Positioning Strategy Value Proposition
SUMMARY
• Demographic
• Interest
• Potential
“Comeback Experience”