Best Buy Case

Executive Summary

Best Buy is a successful leading multi-channel global retailer and developer of technology product and services. Best Buy has been around since 1966, and over the years has seen growth and numerous enhancements through their innovations. However, during the most recent years Best Buy has seen significant challenges in the market. With the increase of online consumer purchasing, the once appreciated tool of having an actual person to educate consumers on new and innovative products, is almost becoming obsolete. Today, consumers are able to browse the internet in order to gain extensive and accurate knowledge on certain products without having to leave their homes. On the other side, the consumers who do utilize the services of the in-store salespeople have been reported by researchers of going to Best Buy, only to view and touch the product. However, after all the knowledge has been obtained, they will go somewhere else to purchase the product. The reason behind this is due to Best Buy prices, which are not as reasonable, compared to its competitors.

In order to eliminate the challenges that Best Buy has come up against, 360 Degrees Marketing team feels by Best Buy lowering their prices, segmenting the market into two distinct groups, and targeting those groups based on their needs, it will help boost their sales. When Best Buy separates their operations into two distinct markets, the brand name will continue to be the same. However, for the mid to lower end products, 360 Degrees Marketing team strongly suggests Best Buy decrease the size of all the stores, and open premium stores selling high end products and services to their customers who are not price sensitive. By implementing premium stores, consumers who are willing and able to afford the premium will have a market targeted directly towards them.