Business Analyze of Best Buy

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and durability is not a big concern for them because they would change their gadgets often. The elderly prefers durability as they are hard to learn to use a new electronic appliance. The middle-aged concern both product quality dimension, but not a large extend as teenagers and the elderly.

The market segments are measurable as the latest segment sizes can be found out in Canada census data on May 3, 2017. (Census Program, 2017) As Best Buy physical stores are not too much and Canada is so big, online shopping website helps all segments easier to access Best Buy. Both teenagers and the elderly are substantial market segments. Teenagers change their gadgets frequently and the elderly requires maintenance and repairing services. Since the middle-aged have attributes of other generation, they are not differentiable as teenagers and the elderly. Best Buy is actionable to target the segments by e-commerce like BlueAssist for online shopping and Geek Squad for additional services. Therefore, teenagers and the elderly are both adequate for Best Buy targeting segments.

Targeting

Although some of the electronic products are commodities, they are developed into high variability in terms of features. Technology is developing fast now and some old stuff are replaced or going to be replaced in the future, such as MP3, DVD players, computers. The new devices will occupy the major markets, such as IPad and VR. Most of the products are mature. Although other retailers do not react too much on marketing, Best Buy should still use differentiated marketing to target teenagers and the elderly by designs separate offers for both segments.

Positioning

Consultation, delivery, design, installation, protection plans, set-up, repair, educational classes and technical support are the wide range of services Best Buy provided to customers. (Best Buy, 2016, p.5) Pre-sales and after-sales service are important to the customers because the electronic products usually require some knowledge to use and maintenance. Best Buy is distinctive on service as competitors do not offer these benefits. It is preemptive as other companies do not have strong technical supports for services. Geek Squad is a well know service to the buyers, so Best Buy is communicable on its strength. The services are also affordable by Canadians and profitable to Best Buy.

However, the staff is treating the customers badly. As has been mentioned, the interview and the survey indicates Best Buy’s poor customer services. In addition, there are some bad comments on Best Buy’s Facebook websites. Unfortunately, we also found many videos claiming Best Buy’s poor customer services in Youtube Channels and the customers also reflects the same customer service problems. To clarify, the designed services are good but the staff presents them poorly. Even Best Buy provide good services to customers, its staff members destroy its service reputation, so no one appreciates the Best Buy services.

With the quick development of technology, people especially the teenagers are addicted to buying new electronic products, such as mobile devices, video games, 3D TV, streaming videos, VR devices, etc. Therefore, the growing market for new electronic devices makes Best Buy have an opportunity to increase total sales.

To discerning teenagers wanting latest electronics and the elderly wanting extra services, Best Buy should provide teenagers new electronic product categories and strength the Geek Squad services to put extra care of the elderly. In general, the staff should receive more training on serving attitude.

Marketing Mix (4Ps)

As one of the most successful retailers, Best Buy pays much attention to its marketing mix as of price, product, place and promotion

Price

Most people choose Best Buy for its low prices. Their prices match all the local retail competitors including online retailers. This policy makes sure that the price of production in Best Buy is the lowest in the local area. Competitive prices help Best Buy to attract customers. More and more people shop at Best Buy, bringing the virtuous circle to it.

Best Buy also offers a large range of prices on its goods and services, from everyday dollar items to expensive and high quality goods. This variety of prices encourage customers of different income levels to shop at Best Buy.

Product

Electronics are becoming increasingly popular in today’s world, especially when the electronic games are developing quickly. For instance, in order to play the video games, people are willing to buy computing device, such as a personal computer, gaming console or mobile phone. Best Buy is exactly one of the largest retail electronic specialty stores in the world. It primarily focuses on the sale of electronics, including Televisions, movies, tablets, cell phones, computers and so on. The popularity of electronic games benefits Best Buy.

Place

Besides, Best Buy has over 1150 stores, locating across the world, but are mainly based in North America. Its stores are usually found as a part of some sort of shopping or strip mall. This is done to attract the highest number of potential customers. As electric cars are becoming more and more popular, Best Buy has begun to implement Electric Charging Stations at some stores in urban neighborhoods. As you can see, Best Buy always focus on customer’s need and satisfaction.

Promotion

What’s more, marketing strategies also benefit Best Buy. Best Buy is an international company with long history, so it has already built abundant marketing experiences along with its development. It clearly knows how to use marketing strategies to increase sales,such as weekly fliers, sales, creating brand awareness by placing their logo on all products, midnight releases. For example, in order to improve their attractiveness to teenagers, it tapes a younger star like Mr. Devine.

SWOT Analysis

Strength

Loyalty and Good Reputation

Best Buy’s blue and yellow branding scheme is the familiar symbol for the Americans, especially for American women (Harrington, 2016). Therefore, Best Buy is one of the best choices to purchase big or small furniture electronic equipment. What is more, Best Buy announces to guarantee the best quality and the lower prices to the public, which helps Best Buy to gain reputation. The good reputation allows Best Buy have the ability to compete with other competitors in the current markets (Pestleanalysis, 2015). Best Buy