Best Buy Marketing Plan

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2012

4/26/2012

Marketing Plan

The Micro Environment
The Company:
Best Buy’s mission statement is “Our formula is simple: we’re a growth company focused on better solving the unmet needs of our customers—and we rely on our employees to solve those puzzles. Thanks for stopping.” Their company perspective is the following “Our vision is to make life fun and easy. Our business strategy is to bring technology and consumers together in a retail environment that focuses on educating consumers on the features and benefits of technology and entertainment products, while maximizing overall profitability. We believe our stores offer consumers meaningful advantages in store environment, product value, selection and service, all of which advance our objectives of enhancing our business model, gaining market share and improving profitability.” Best Buy strives to continue its growth and innovation in order to come up with new ideas and new ways to intrigue their customers and also new ways for their employees to work as a team and work together. One of their goals is to offer solutions for entertainment and technology that will meet their customers’ needs, “end-to-end.” Best Buy’s core competencies is simply to make technology and entertainment products affordable and easy to use for their customers. “We're world-class in store experience, customer orientation, inventory management, executing new store concepts, and rallying our people around common goals, as well as, marketing, merchandising and related disciplines.” Some areas of improvement that Best Buy is currently undergoing are to be greener. In order to do so, they have to add more green vehicles when it comes to transportation and also stocking more green products in their stores so they can educate their customers about the impacts they may have by purchasing green products. Competitive review:

Best Buy’s top three main competitors include Wal-Mart, Target, and RadioShack. Wal-Mart not only engages in the retail sale of electronic goods, but also offers food, health and beauty aids, apparel for women, girls, men, boys, and infants, jewelry, and a wide variety of many other products. Their market cap is $211.51 B, which as you can see is much larger than Best Buy’s market cap, but the reason is simply because Wal-Mart specializes in selling a wide range of products and not solely electronics. Wall-Mart is the world’s largest retailer and grocery store by sales, which amounts to almost 50% more than its closest competitors combined, such as Target and Sears. One of Wal-Mart's biggest strengths is that many suppliers give in to Wal-Mart’s pressure because they depend heavily on the discount retailer that they offer for a majority of their sales. One of Wal-Mart’s weaknesses has to do with their reliance on Chinese-made imports because the company may become vulnerable to a weakening dollar or strengthening of the Yuan. Since Wal-Mart purchases the majority of their products from China every year, if the Yuan dollar strengthens, Wal-Mart will soon have to pay more for their merchandise that comes from China, which will further affect Wal-Mart’s bottom line. Target is very similar to Best Buy and like Wal-Mart they offer far more then just consumer electronics. Most of their stores include clothing, furniture, and a grocery department. In the last year, their stock has hit a 52-week low of $45.28 and 52-week high of $58.95, compared to that of Best Buy, which has a low of $19.79 and a high of $32.85. The reason the stock for Target is worth more is because they offer a larger variety of products so they have a larger market share then Best Buy. When you compare the quality of electronic products between Best Buy and Target you will see that Best Buy has the advantage. For example with TV’s, Target will offer more of the smaller named more affordable televisions. These TV’s can not compare to the quality of the big name products that Best Buy offers, such as...
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