Best Buy Case
Gloria B. Poblete
Marketing 503
Case Analysis
February 11, 2009
Best Buy Case Analysis
Executive Summary
Best Buy Co., Inc. has been in operations since 1966, they are based out of Minneapolis MN. They have continues to grow steadily over time through innovations. They have become customer-driven by enhancing customer enjoyment of technology. They operate over 940 retail stores across the United States and Canada. The first store in Mexico just opened up in 2009 and they are presently looking into Turkey in the near future.
Best Buys current marketing goals and objectives is to serve the needs of unique customers. Best Buys four strategic initiative are customer centricity, efficient enterprise, win with service, and win in entertainment. Best Buy is achieving their goals and objectives by changing the focus of company operations, and putting the focus on customers.
The new customer-centric business model was created with Best Buys strategy which is to offer an old-fashioned corner store feel for their customers under a giant technical store. In order to accomplish their strategy a major research was conducted on all of their customer’s transaction since 1996. The research showed that Best Buy had two core types of customers within the 75 million customers. Among the two types of core customers, it showed that the angel type had five types of customers. They were the small business owners, the young entertainment enthusiasts, the affluent professional, the busy suburban moms, and the tech-savvy family men. These were the new segment that Best Buy wanted to target, the angle customers. These core customers were the money spenders. In order to reach the angel demographics Best Buy converted some of stores to test the new customer-centric business model.
These stores rearranged merchandise and stocked more of the types of products that would appeal to the angel customer segment. The employees were trained in both product knowledge and how to recognize an angel
Marketing 503
Case Analysis
February 11, 2009
Best Buy Case Analysis
Executive Summary
Best Buy Co., Inc. has been in operations since 1966, they are based out of Minneapolis MN. They have continues to grow steadily over time through innovations. They have become customer-driven by enhancing customer enjoyment of technology. They operate over 940 retail stores across the United States and Canada. The first store in Mexico just opened up in 2009 and they are presently looking into Turkey in the near future.
Best Buys current marketing goals and objectives is to serve the needs of unique customers. Best Buys four strategic initiative are customer centricity, efficient enterprise, win with service, and win in entertainment. Best Buy is achieving their goals and objectives by changing the focus of company operations, and putting the focus on customers.
The new customer-centric business model was created with Best Buys strategy which is to offer an old-fashioned corner store feel for their customers under a giant technical store. In order to accomplish their strategy a major research was conducted on all of their customer’s transaction since 1996. The research showed that Best Buy had two core types of customers within the 75 million customers. Among the two types of core customers, it showed that the angel type had five types of customers. They were the small business owners, the young entertainment enthusiasts, the affluent professional, the busy suburban moms, and the tech-savvy family men. These were the new segment that Best Buy wanted to target, the angle customers. These core customers were the money spenders. In order to reach the angel demographics Best Buy converted some of stores to test the new customer-centric business model.
These stores rearranged merchandise and stocked more of the types of products that would appeal to the angel customer segment. The employees were trained in both product knowledge and how to recognize an angel