Brand Repositioning

By: Lauren Armbrust, Mat Goldberg, Jesse Silverman, & Michael Tahan

Mission

• The Best Buy mission states, “We improve people’s lives by making technology and entertainment products affordable and easy to use”

Armbrust, Goldberg, Silverman, & Tahan (2012) “Midterm Report”.

Brand Overview

• Brand Status– High quality products– Weak customer loyalty and visitor frequency – Overwhelming storefront– High Price

• Market Share loss– Circuit City – New generation of customers

• Competitors – Wal-Mart – Amazon

Armbrust, Goldberg, Silverman, & Tahan (2012) “Midterm Report”.

Current Perception Graph

Great Post-sale Service

Poor Post-saleService

High Customer Experience

Low Customer Experience

Repositioned Perception Graph

Great Post-Sale Service

Poor Post=SaleService

High Customer Experience

Low Customer Experience

Who we’re targeting

College students (ages 18-24)

• Individualistic • Bloggers and social media

participants• upper-middle class demographic• Fun-loving• Modern• Unique• Familiar with electronics• Alternative• Creative and Innovative• Expressive• Learner

Modern moms (30 – 40s) and their children• Individualistic • Fun-loving• On-the-go & employed • Modern• Motivated• Excited and Curious• Creative and Innovative• Learner• Desire to connect with

their children, friends and family

Lauren

College Students

In fall 2011, a record 19.7 million students attended American colleges and universities, constituting an increase of about 4.4 million since fall 2000…

“What type of computer do they favor? Laptops, of course. In only two years, laptop ownership on campus has surged from 52.8 percent of the student population to 75.8 percent.”

Lauren

I need something that’s affordable and capable of

running different programs. And if it breaks I need to

know I have somewhere to get help fast.

http://arstechnica.com/gadgets/2007/09/american-students-awash-in-gadgets/

About targeted Moms and their kids

More than 89% of moms use the Internet at least twice a day, studies have shown… “There were an estimated 85.4 million Moms in the United States in 2009.”

Lauren

http://www.infoplease.com/spot/momcensus1.html

Moms at work, their kids & education’s role…

Approximately 70% of moms in the United States are in the workforce…Meaning more moms have a disposable income and less time at home with their kids based on this

Lauren

http://www.google.com/imgres?um=1&hl=en&newwindow=1&client=firefox-a&rls=org.mozilla:en-US:official&biw=1199&bih=587&tbm=isch&tbnid=GDYxBXN9gzHYfM:&imgrefurl=http://www.csmonitor.com/USA/Society/2012/0511/Share-of-

working-moms-nearing-all-time-high-but-ha

Schools with internet access

Between 1994 and 2003 nearly 100% of all schools in the United States had set up some kind of internet access. Since then, more schools require students become familiar with computers and using them in their everyday lives and education.

Lauren

://www.edweek.org/media/2005/05/05/35tracking-c3.gif&w=440&h=375&ei=WN-vT-62GKKs2gWczMDpCA&zoom=1&iact=hc&vpx=272&vpy=137&dur=1875&hovh=207&hovw=243&tx=119&ty=135&sig=10035953277705312952

2&page=1&tbnh=122&tbnw=143&start=0&ndsp=18&ved=1t:429,r:1,s:0,i:74

Student spending on technology

In affording for the latest trends in technology, 50% of students have been spending between $100-300 on technology needed for education. Our research tells us why targeting college students (and their moms) is beneficial in our re-positioning strategies based on the exponential growth in their influence on our market share.

Lauren

http://www.google.com/imgres?um=1&hl=en&newwindow=1&client=firefox-a&rls=org.mozilla:en-US:official&biw=1199&bih=587&tbm=isch&tbnid=gMMTL2KG2nQqHM:&imgrefurl=http://campustechnology.com/articles/2007/10/snapshot-

student-technology-spending-in-higher-educa

Market SegmentLauren

http://wwwdelivery.superstock.com/WI/223/1566/PreviewComp/SuperStock_1566-569893.jpg

Why the kids are important..

Research shows just how much time children ages 0-8 years spend with technology. In a typical day: 70% of the polled group of children spent an average of 2 hours a day watching TV.57% spent 1.5 hours with music 17% with video games for over an hour17% played about 1 hour of computer games.

Lauren

http://www.google.com/imgres?um=1&hl=en&newwindow=1&client=firefox-a&rls=org.mozilla:en-

US:official&biw=1199&bih=587&tbm=isch&tbnid=rdrt11cyv6qplM:&imgrefurl=http://adage.com/article/adagestat/statistics-children-s-media-habits-show-tv-king/230623/&docid=

What’s driving these behaviors? BLOGS & OTHER MEDIA Lauren

Other resources such as GOOGLE

In the age of blogs, Youtube, Google and smart phones to access them, more and more people have the power to find fast solutions in a matter of moments. Moms, students and young children can now navigate the ether world rather easily. We want our stores to reflect this trend…

Lauren

Apple as most popular brand in elementary schools

For teachers and their students, we offer fun and active tutorials. Being a carrier of Apple products like this notebook will help us pull customers in these segments in to our stores so they can learn about the technology that is becoming more and more a part of everyday life.

Product• Customer needs & wants

– High quality products– Guidance and direction – Individualized and creative outlets

• Product changes – Enhanced customer experience

• Geek Zone • Personalized engravings and design covers • High-quality employees trained on concentrated products

Armbrust, Goldberg, Silverman, & Tahan (2012) “Midterm Report”.

Product

– Improved post-sale services • Bundled products with services: free 1 year consultant • Follow up communication • Warranty

• Point of differences and values– Learning experience – Individualized products– Unique services – Personalized attention– Interactive opportunities

Best Buy: The New Interactive Mall-Distribution

-E-Commerce and Retail Stores

-Multi Channel Marketing (In store pickup, Research)

-Dual Distribution-Selling directly to universities and students at same time students (Group and individual)

-Selective distribution-limit comp, lower dist. costs

-Partner with colleges

-Test the Experience at 5 “test stores”

Easy to use tabs

Deals

Large Visuals

Geek Squad Services

New store layout to reflect latest trends…

Departments within the store

Price• Bundle pricing

– Laptop plus a 1 year consultation and 6 month spyware

• Maintain consistent prices

• Geek Zone– 6 months free with Reward card membership– 1.5 year membership - $50 – Penetration strategy

• Product personalization – free

Promotion Strategies• Inbound Marketing (Heavy use of Social Media, Geek Squad

Youtube Videos)• Outbound (TV Advertisements, Online Advertisements

(Banner Ads))• Best Buy Rewards program to encourage repeat purchases• Point of purchase displays• Community Relations• Customer Centricity• Point of Sale• Product placement

Best Buy Rewards Program

• Receive free Geek Squad classes for first 6 months• Earn points to receive discounts on merchandise• Free to join• Special offers for members

Inbound/Outbound Marketing

Inbound- Continue strong presence on Social Media (twitter, facebook, and Geek Squad

Supportopedia)- Weekly Geek Squad video tutorials on Youtube- Customer Centric, Bundling Products together- Mobile Marketing- Continue strong presence of website

Outbound- Television Ads (Competitive and Reminder)- Online Banner Ads

College Students and Community

• Develop strong relationship with community especially colleges and their students

• Offer deals and contests to increase consumer purchases and stimulate demand

• Offer discounts on technology for education• Customizable technology to appeal to college students• Gain brand awareness with charity events, cause

marketing

Market Goals

• Open 5 Test Stores in different parts of the country

• Record at least 50% more profit in these stores compared to regular Best Buy stores.

• Begin renovating approximately 100 of the 850 North American Stores.

• If this change proves successful with overall total revenue rising 30%, then more stores will be renovated both domestically and internationally.

Evaluation

• Increase brand awareness within first year• First year-Hope to have a 20% increase in

customers Measure this by the amount of classes taken and overall sales, Rewards Zone memberships, and Geek Zone memberships

• Positive increase construction of new stores• Negative push for more outbound marketing