Published by MBA Skool Team, Last Updated: February 26, 2019
Marketing Strategy of Best Buy analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Best Buy marketing mix, help the brand succeed.
Best Buy marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Best Buy Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Best Buy Product Strategy:
The product strategy and mix in Best Buy marketing strategy can be explained as follows:
Best Buy is one of the leading consumer electronics retailers based out of USA. Best Buy offers its products in 6 categories and they are:
1) Consumer electronics- Home theatre, digital imaging, etc.
2) Computing and mobile phones- Networking, tablets, etc.
3) Entertainment- Moves, music, etc.
4) Appliances- Refrigeration, ovens, laundry, etc.
5) Services- Consultation, design, delivery, etc.
6) Other- Snacks, beverages, etc.
Best Buy has House Brand of 8 products under its marketing mix product portfolio which are Dynex, RocketFish, Insignia, Modal, Platinum, Init, Pacific Sales and Magnolia Home Theatre.
Best Buy Price/Pricing Strategy:
Below is the pricing strategy in Best Buy marketing strategy:
Best Buy offers affordable common electronics to its target group of customers, i.e., those aged between 16 and 50 years.
Its prices are 10% to 15% less than its competitors. The intermediaries receive a 20% online discount and free shipping. Best Buy has a global presence and hence pricing strategy varies based on market conditions and competition.
Following is the distribution strategy in the Best Buy marketing mix:
Best Buy branded stores’ building exteriors have typical light brown colour with the entrance designed in such a way that it looks like a blue box emerging from the structure. It around 1400 such Best Buy stores in USA and around 200 stores in Canada and Mexico.
It operated in Europe until 2012.
Best Buy Promotion & Advertising Strategy:
The promotional and advertising strategy in the Best Buy marketing strategy is as follows:
Best Buy utilises social media very well and advertises through Facebook and Twitter. Apart from this, its offline promotion strategy includes use of signs and flyers. Needless to mention, word of mouth plays a crucial role in expanding its business. Also the awards Best Buy has won from nationally and internationally recognised institutes adds to its value building and does indirect promotion as well.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Best Buy.
Employees at Best Buy find the place to be a fun place to work with and don’t mind over time in such an environment. The company has for them celebration parties which creates avenues to gel up on an informal level. According to reviews of the employees, it is a best place to work if you are tech savvy and working is very diversified.
Best Buy was earlier known as the “Sound of Music” and originally started off as an Audio Specialty Store. Best Buy stores have become “One-Stop-Shop” solution for electronics across the world and has begun in some urban neighbourhoods Electric Charging Stations. The logo of Best Buy is yellow in colour which is to be found at every store and the building exteriors are typically light brown in colour with entrance in blue colour. It also has cell phone specialty sections in its stores. What sets it apart from its competitors is the customisation of is stores according to the demographics of the area and lighting, store signage, fixtures, etc. are changed to do the same. Apart from this, it has online stores or websites to shop.
Best Buy was earlier provides at some of its stores even personal shopping assistant which can be booked in advance. It also has Geek Squad brand which offers computer repair, warranty service and accidental service plans. This completes the Best Buy marketing mix.
About Best Buy:
Best Buy Co., Inc., an American multinational, headquartered in Richfield, Minnesota is a consumer electronics retailer. It was founded in 1966 as an audio specialty store by Richard M. Schulze. Best Buy operates in two segments, i.e., Domestic and International.
The Domestic segment comprises of operations in US and that of International includes Canada, Europe, China, Mexico and Turkey. It has a wide range of product portfolio under it.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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