Best Buy Marketing Plan Essay

Since its start in 1966 outperform spoil Co. , Inc. has give emerge a leading multi-channel global retailer and developer of technology services and products. The union is headquartered in Richfield, MN and modernly has 180,000 employees. top hat bargain for operates in the U. S. , Canada, Mexico, Europe, as well as China. Their product conjureings include mobile products, televisions, e-readers, digital cameras, computers, appliances and some(prenominal) others. Best Buy attributes their steady growth over the geezerhood to their cloudy commitment to innovation and their guests.They continually adapt their product offerings to meet and distance the ever changing technology needs of their guests. Best Buy recognizes that in the world of retail come withs need to constantly be finding new ways to attract, and retain customers. This has led the gild to substitute their operating models, as well as their blood lines to have a more(prenominal) customer-centric revol ve about instead of the product-centric focus they once had (BBY, 2012). deep Best Buy has been hale to make some difficult decisions regarding their smart set in an parkway to stay competitive.With the departure of Best Buys CEO, Brian Dunn the partnership had to freshet with some negative press regarding his inappropriate behavior with a companion employee. In addition the companys founder and chairman of the mesa of directors, Richard Schulze, was also caught up in this negative press and also resigned from the company. new-madely Best Buy announced the closure of 50 of their big recession stores, and lay off of hundreds of employees in an swither to cut follows ( fortune amid, 2012).As online shopping increases in popularity, Best Buys current website may not be equipped to capitalize on this trend. This was exhibit last holiday season when a malfunction of the company website cost Best Buy sales as well as believability with consumers (Companys strength, 2012). The se recent events atomic number 18 forcing Best Buy to value their once very self-made business model as they grimace to the future. Situation Analysis The electronics retail industry that Best Buy operates in is bingle that is constantly evolving as technology and customer preferences change.Business models that were successful in this industry in the knightly are not as effective in todays world, thus companies are forced to adapt their techniques to retain their market position in the industry. Over the years Best Buy has built a strong brand intuition in the U. S. as well as around the world. This reputation protagonists the company maintain a solid market share in the industry. some other advantage for Best Buy is that they are becoming one of the a few(prenominal) companies where customers can actually go to a store and try out electronics.Their stores give customers the prospect to ask questions almost electronics, something that online-only companies are lacking ( Katsenelson, 2012). In addition Best Buy also offers customers a more change experience with their in-house group of electronics experts known as the Geek team. Since Best Buy corruptd the unknown computer repair group in 2002 the Geek squad has grown into the worlds largest tech-support operation with annual revenues exceeding $1 billion (Companys strength, 2012).This industry contains two contrasting types of retailers twain offeringsimilar products. One type of retailer are those that offer electronics in stores, much(prenominal) as Best Buy, Wal-Mart, and Target. The other type of retailers are those that sole offer their products online, like Amazon, EBay, and Newegg Inc. There is a huge opportunity for Best Buy to really focus on redesigning their website, in an effort to compete with the online-only retailers. The company should work toward building a tighter collaboration amid their website and their physical stores (Katsenelson, 2012).In order to truly capitalize on their stores, Best Buy should consider investing more in customer service inventning for their employees. When customers shop at a Best Buy store the company has an opportunity to personalize the technology experience for them. In the past Best Buy employees have been too focused on sell customers what they want to sell them instead of what customers actually need (AT BEST, 2012). amend customer service allow also help in the scrap to turn Best Buy stores into more of an asset instead of a liability.Customers are testing products in Best Buy stores, and asking employees questions about them but then ultimately going to an online competitor to make their purchase for a cheaper hurt. Providing employees with more customer service training may help reduce the threat of losing sales to online-only competitors (Katsenelson, 2012). In addition to improving customer service at Best Buy the company should also focus on reinventing their customer rewards program.By creating a solid re wards program and promoting it the company could encourage more repeat business, and build a more doglike customer base. This industry is also characterized by intense ambition, where many different retailers are offering the same products, thus making price one of the main motivators for customers. Best Buys main competitors are tax write-off chains such as Target, Wal-Mart, and Costco. As well as online-only companies such as Amazon, EBay, and Newegg Inc. When it comes to appliances Best Buy also competes with home-improvement superstores such as internal Depot and Lowes.In an industry that is driven mostly by price companies will need to discover ways to set themselves apart from the competition in an effort to gain market share. Based on the company information for Best Buy, as well as the industry synopsis a rise (Strengths, Weaknesses, Opportunities, and Threats) Analysis was created to summarize key items that the company should address. This SWOT analysis will help gui de Best Buy as they look to implement a new marketing plan that will hopefully lead to a successful future. SWOT AnalysisStrengths (Internal Factors)Weaknesses (Internal Factors) blot recognition Cost of operating large stores Extended portfolio of products and services Recent negative press regarding departure of upper management Geek Squad Disconnect in regards to pricing between stores and website Opportunities (External Factors)Threats (External Factors) Focus on redesigning company website Intense industry competition Improve employee customer service training Customer information stored on website being hacked Work with vendors to offer bundled products on hand(predicate) exclusively at Best BuyCustomers shop products in Best Buy stores but ultimately buy product cheaper from online-only competitors Enhance customer rewards program New product launches by major vendors Implementation potency Best Buy executive leadership should review this marketing plan quarterly to track the marketing strategy. Executive leadership should assign individuals to concentrate on responsibility for pushing projects along to meet the marketing strategy. concern must create a schedule and budget to monitor set ahead but also adapt to any unexpected events that may blow over and plan accordingly.