Best Buy Executive Summary
Place
The Best Buy website do not currently need any major changes. The website as it is, is already easy to use and has an appealing interface. I suggest that the website add a new tab for all new available products to attract technology savvy customers to their website. To stay competitive online, Best Buy should offer at least free shipping whenever is possible. Such a perk should be offered for all new customers, for those who buy new products and all products priced over a a certain price ($200).
Best Buy Big Box retail stores were build for a different era and different lines of products. It’s imperative that the company start to seriously think about downsizing the 1000+ Big Box stores and open more of their smaller version mobile stores. Research showed that by downsizing their stores by just 10% will save the company $70 to $80M a year. The new smaller stores would look a lot like the current Apple stores where sales associates interact with customers and help them make the right decision that will fit their needs and entertainment goals. While opening up more mobile stores in the city is a much more cost affective strategy, Best Buy could and should expand more towards the suburb where most of their Angel customer base is located. The Barry and Jill segment are likely to live in the suburb and make their purchases on the weekend so it makes sense to formulate a place strategy that will take into consideration their living location. Also renting space in the suburb is always cheaper and will add more savings to the company income statement. …show more content…
Promotion
* Best Buy has to communicate to the public in general and their angel segments in particular their new business model and new lines of products.
* Broadcast commercials that emphasize the customer-blue shirt interaction that take place in Best Buy
stores.
* Advertise the exclusive and new products that can only be found in Best Buy. For example show the several computer tablets best buy carry and how the sales associates show the customers the different features they have, the differences between each one and help the customer choose the best product that meets his or her needs. * Create commercials that compare Best Buy and Amazon. Something that will mimic the successful marketing campaign Apple engaged in when comparing apple products to PC. Emphasize Best Buy strengths while using Amazon and other online retailer’s weaknesses. In those commercials, Best Buy could use the fact that often times what you see online is not exactly what you get when you receive your shipment from an online retail store. Let the public know of bad experiences customers had with Amazon and Newegg. They also should emphasize the expertise and knowledge of their Geek Squad and Blue Shirt sales force and how helpful they can to customers in making their purchases. * Change the company rigid, outdated and alienating return policy procedure. * Use of promotion and coupons to not alienate and exclude those customers who are looking for the lowest prices available. In the same time the rebate policy will not affect the price Jill and Barry are willing to pay. Barry for example who would pay the asked price and consider time as money would not bother to waist time on applying for rebates and printing coupons. *
The Best Buy website do not currently need any major changes. The website as it is, is already easy to use and has an appealing interface. I suggest that the website add a new tab for all new available products to attract technology savvy customers to their website. To stay competitive online, Best Buy should offer at least free shipping whenever is possible. Such a perk should be offered for all new customers, for those who buy new products and all products priced over a a certain price ($200).
Best Buy Big Box retail stores were build for a different era and different lines of products. It’s imperative that the company start to seriously think about downsizing the 1000+ Big Box stores and open more of their smaller version mobile stores. Research showed that by downsizing their stores by just 10% will save the company $70 to $80M a year. The new smaller stores would look a lot like the current Apple stores where sales associates interact with customers and help them make the right decision that will fit their needs and entertainment goals. While opening up more mobile stores in the city is a much more cost affective strategy, Best Buy could and should expand more towards the suburb where most of their Angel customer base is located. The Barry and Jill segment are likely to live in the suburb and make their purchases on the weekend so it makes sense to formulate a place strategy that will take into consideration their living location. Also renting space in the suburb is always cheaper and will add more savings to the company income statement. …show more content…
Promotion
* Best Buy has to communicate to the public in general and their angel segments in particular their new business model and new lines of products.
* Broadcast commercials that emphasize the customer-blue shirt interaction that take place in Best Buy
stores.
* Advertise the exclusive and new products that can only be found in Best Buy. For example show the several computer tablets best buy carry and how the sales associates show the customers the different features they have, the differences between each one and help the customer choose the best product that meets his or her needs. * Create commercials that compare Best Buy and Amazon. Something that will mimic the successful marketing campaign Apple engaged in when comparing apple products to PC. Emphasize Best Buy strengths while using Amazon and other online retailer’s weaknesses. In those commercials, Best Buy could use the fact that often times what you see online is not exactly what you get when you receive your shipment from an online retail store. Let the public know of bad experiences customers had with Amazon and Newegg. They also should emphasize the expertise and knowledge of their Geek Squad and Blue Shirt sales force and how helpful they can to customers in making their purchases. * Change the company rigid, outdated and alienating return policy procedure. * Use of promotion and coupons to not alienate and exclude those customers who are looking for the lowest prices available. In the same time the rebate policy will not affect the price Jill and Barry are willing to pay. Barry for example who would pay the asked price and consider time as money would not bother to waist time on applying for rebates and printing coupons. *