Short Case #1: Bed Bath & Beyond’s (BB&B) Plan for Growth
1. Explain how Bed Bath & Beyond practices the retailing concept. The retailing concept is comprised of customer orientation, coordinated effort, value-driven, and goal orientation. With a multitude of open stores the consumer becomes aware of the convenience in location, excellent store atmosphere, and an assortment of merchandise. BB&B’s customer orientation, customers can walk around the store without feeling pressured because they aren’t just looking around to purchase a specific product, they are there to seek a pleasant shopping experience.
2. Evaluate Bed Bath & Beyond’s growth plans.
BB&B has three sources of growth: organic growth (getting more sales from the same space), opening new stores, and acquisitions. Same store sales growth is essential for any retailer’s growth plans. This involves increasing sales at locations, remodeling existing stores, and being open more than one year. BB&B’s new stores range in size from 30,000 to 80,000 square feet. This enables BB&B to pursue a number of real estate opportunities. Acquisitions enable BB&B to quickly grow, to diversify, and to reduce dependency on a given format. BB&B long-term goal is to operate 1,300 stores because now they are being able to operate in large business centers. 3. How can Bed Bath & Beyond increase the overall quality of its customer service?
Bed Bath & Beyond can increase its overall quality of customer service by: • Developing and implementing customer service training programs • Increasing its employee empowerment
• Training employees to do multiple tasks to reduce checkout lines • Employing mystery shoppers to monitor customer service levels • Rewarding excellence in customer service
• Offering service recovery programs
• Hiring employees who enjoy customer contact
4. Explain the concept of value from the perspective of a Bed Bath & Beyond customer. A Bed Bath & Beyond customer receives value from the perspective of deep and wide assortments, one-stop shopping, excellent customer service, the ability to shop in a store and the Web, fair return policies, speedy checkout, and fair prices. According to the customer from the article, the employee was patiently helping the customer all throughout their shopping experience. Even though, the employee was doing their own thing but as soon as the customer asked for help the employee dropped what they were doing and went to help. Short Case #2: Netflix: Competing Via Technology
1. Develop specific objectives for Netflix’s strategic plan over the next five years. Netflix should develop objectives related to sales, profit, satisfaction of publics and image (positioning). Sales objective are related to the volume of goods and services a retailer sells. Profit objective, Netflix should seek at least the minimum profit level during a designated period. The higher the operating expense is, the more efficient the retailer will be. Satisfaction of public, like shareholders, customers, suppliers, employees, and government needs to meet. Imaging (positioning), Netflix’s positioning is among its competitors is at the top compared to Blockbuster or others. 2. What target market strategy is most appropriate for Netflix? Explain your answer. Netflix is most appropriately a mass marketing target market strategy. This maximizes sales opportunities with one marketing program, appeals to wide mix of consumers, uses popular pricing, and enables Netflix to offer a wide selection of DVDs with popular appeal. 3. Describe Netflix’s competitive advantages and disadvantages relative to Blockbuster.
In comparison to Blockbuster Netflix’s competitive advantages are: no due dates or late fees, no waiting in line at store, its titles are rarely out of stock, and its customers do not have to return videos in store. Netflix also has an excellent Internet site and an existing Web-based logistics infrastructure. In comparison to...