Best Buy Crisis
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Contents
I. Background 2
II. SWOT Analysis 3
III. Synopsis of the strategy 3
IV. Situation Analysis 3
V. Target market discussion and recommendation 3
VI. Differentiation and positioning strategy 4
VII. Marketing mix 4
VIII. Projected outcomes and key risks 4
IX. Final recommendations 4
X. Appendix A 4
XI. Appendix B 5
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Background and Synopsis
Dick Schulze and a business partner opened the first Sound of Music store in St. Paul, Minnesota. By 1969, Sound of Music had expanded into five more locations around Minneapolis and revenue had reached $ 1 million by 1970 and Schulze bought out his original business partner. By end of 1978, Sound of Music operated nine stores.
Best Buy opened its first superstore in 1983 in Minnesota, signifying the commitment that Dick Schulze, the owner, had to discounted, value products.
Sales grew steadily from 240 million in 1987 to 50.7 billion. However, Net income in 2012 was a loss of 1.2 billion.
An assessment of the current market presence, financial trends and the overall demographic trends in the region is done to analyze the situation and to provide feasible alternatives.
Best Buy should use the formula “segmentation, targeting, positioning (STP)” which are the essence of strategic marketing. It should provide value through specific product features, prices and distribution. In
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Contents
I. Background 2
II. SWOT Analysis 3
III. Synopsis of the strategy 3
IV. Situation Analysis 3
V. Target market discussion and recommendation 3
VI. Differentiation and positioning strategy 4
VII. Marketing mix 4
VIII. Projected outcomes and key risks 4
IX. Final recommendations 4
X. Appendix A 4
XI. Appendix B 5
| |
Background and Synopsis
Dick Schulze and a business partner opened the first Sound of Music store in St. Paul, Minnesota. By 1969, Sound of Music had expanded into five more locations around Minneapolis and revenue had reached $ 1 million by 1970 and Schulze bought out his original business partner. By end of 1978, Sound of Music operated nine stores.
Best Buy opened its first superstore in 1983 in Minnesota, signifying the commitment that Dick Schulze, the owner, had to discounted, value products.
Sales grew steadily from 240 million in 1987 to 50.7 billion. However, Net income in 2012 was a loss of 1.2 billion.
An assessment of the current market presence, financial trends and the overall demographic trends in the region is done to analyze the situation and to provide feasible alternatives.
Best Buy should use the formula “segmentation, targeting, positioning (STP)” which are the essence of strategic marketing. It should provide value through specific product features, prices and distribution. In