Best Buy Crisis Essay

1995 Words Aug 1st, 2013 8 Pages
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Contents

I. Background 2

II. SWOT Analysis 3

III. Synopsis of the strategy 3

IV. Situation Analysis 3

V. Target market discussion and recommendation 3

VI. Differentiation and positioning strategy 4

VII. Marketing mix 4

VIII. Projected outcomes and key risks 4

IX. Final
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The reasoning behind the targeting of this age group is because of the recent research which shows that more than two thirds of 12 to 21 year olds make or influence family purchase decisions on audio/video equipment and software. In total, these teens and young adults spend over $ 120 billion a year. [2]
This market can be targeted by commercials on Internet. Commercials on TV can be used for other age groups but not for the recommended age group, since the recommended age group is more prone to surfing the internet. Best Buy can be described as a “cool” place for teens to buy their equipment and software from and the salespeople should be hired who are relatively young to fit well with this age group. They should be well versed in the kids’ slang that is used by this target market.
The differentiation of target markets of men and women would have definitely worked 20 years ago. However in this day and age, men and women are both tech savvy and should be targeted equally. Business or individual segmentation is not recommended as the age group would encompass these consumers and is a much broader differentiation. In addition, TV marketing would target these consumers indirectly.

Differentiation and positioning strategy

Best Buy should differentiate itself from its primary competitors such as Amazon and Wal-Mart by offering more specialized services via the Geek Squad. This can be achieved by

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