Evaluate Best Buy and determine why they charge different pr

Evaluate Best Buy and determine why they charge different price points for the same product. Evaluate how well they represent the product within their retail strategy.

Research each retailer: Best Buy

1. History

2. Current situation

3. Retail strategy

4. Target market(s)

5. Pricing Strategies

6. Pricing tactics

7. Store set up

Research each trade-area:

Location of store

Specifics of area

Stores atmosphere; Note atmospherics, service, situational factors, product location and presentation, pricing

Solution

Best Buy:

1. History:

Best Buy Co., Inc. Was founded in 1966 by Richard M. Schulze and Gary Smoliak. Earlier it was audio specialty store. Later the emphasis was shifted to consumer electronics. Its headquarter is based in Richfield, Minnesota.

2. Current situation:

Now Best Buy is one of the largest provider of multinational consumer electronics products and services. The company now operates in Canada and Mexico apart from U.S. Hubert Joly is the current chairman and CEO of Best Buy.

3. Retail strategy:

Renew Blue strategy was used by Best Buy for gaining competitive advantage. As per the statement of Hubert Joly, Best Buy’s prime strategy for gaining gain customers, increasing revenues and leveraging shopper experience the retail strategy focuses on majorly three areas:

4. Target Markets:

Target market of Best Buy comprises of Millennial generation. They target this cohort and a particular emphasis is laid on attracting this generation to stores. Millennial are believed to serve as an important segment for retailers. Marketing Strategies are designed keeping in mind this segment of target market.

5. Pricing Strategies:

In order to attract customers the pricing strategies used by Best Buy is to offer the product at lower price than their competitors. Also they offer striking deals that attract customers and helps in generating brand loyalty.

6. Pricing tactics:

In order to offer the product at the lower price than its competitors the tactic that is used by Best Buy is to compare the price of same product with different competitor and offer the lowest price for same commodity. It also allows its customers to match the price of desired products at different sellers on their application.

7. Store set up:

Stores of Best Buy are located in the areas where it is easy to attract consumers. Specific areas include: Aiea, Honolulu etc. The ambience and atmosphere maintained in stores are customer friendly.

Different domestic stores include: