geospatial applications and research lab (grac) invited speaker address david a. bradbard &...

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Geospatial Applications and Research Lab (GRAC) Invited Speaker Address

David A. Bradbard & Barbara K. FullerWinthrop University

Auburn AlabamaApril 1, 2011

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Comparative Analysis of Merchandising Strategies for Best Buy Stores in Charlotte, NC

Using Geodemographic Analysis

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Best Buy Market Segments

The Focused, Active Younger Male Customer – Buzz

The Family Man – Ray

The Affluent Professional – Barry

The Suburban Soccer Mom – Jill

The Small Business Customer – BB4B

Alabama Median HH Income

Auburn Best BuyThree Mile Radius

Birmingham Best BuyThree Mile Radius

Prattville Best Buy Three Mile Radius

Hoover Best BuyThree Mile Radius

Alabaster Best BuyThree Mile Radius

Tuscaloosa Best BuyThree Mile Radius

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Best Buy Project

• Customer Segmentation– Demographic Characteristics– Psychographic/Community Tapestry Information – • Segments outlined in your Community Tapestry

Segmentation Report

– Customer Behavior Information • Retail Expenditure and Media Usage

– Team decision on market segment• Barry, Jill, Buzz, Ray or a combination and justification

for decision.

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Using Mediamark Research Inc (MRI) Data

Using data from Community Tapestry and MRI you can produce specialized reports for each trade area.

MRI conducts surveys to how individuals purchase/use various products and services. MRI provides index scores to show whether people are more or less likely to purchase/service than the average US household. A score of 110 indicates a household is 10 percent more likely to purchase/use a particular product or service.

In this project, students will look at spending characteristics in six areas: Appliances, Camera & Film, Electronics, Internet, Telephones/Services, and Video/DVD.

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Best Buy Store StrategyBased on Segmentation Data

Re-engineer the customer experience addressing the specific needs within the segment. • Preferred product assortment – based on the retail expenditure report you

should create charts (excel charts, graphs, etc.)using your index number to justify your merchandise choices

• Preferred store layout – this could provide layouts of the store, depth and breadth of merchandise assortment, and justification on placement of merchandise

• Tailored Services – Using the information from the appendix of your case on customer-centric service, outline the type, extent, and quality of customer service required for you segment. Be sure to refer to your market segment needs and differentiate their needs from the other Best Buy segments.

• How does your strategy fit within Best Buy’s overall brand strategy?

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Merchandising Options at Best Buy Stores

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Using the Marketing Strategy Report which identifies what media your market segment listens to, watches and reads,

develop a local promotion plan to reach your target audience (market segment). Discuss why you chose the specific media, why you think the ones you have chosen will be more effective than other types of media. Use the information that you obtain in your market strategies report and if feasible create charts/graphics that back up your recommendations.

Marketing Strategy for Promotion of the Store Locally

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Blakeney Mid TownCT Data for Two Best Buy Stores

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Blakeney Mid Town

Understanding Your Target Customer

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Best Buy Stores in Charlotte Area

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Competition in Mecklenburg County

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Competition in Mecklenburg County

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Competition in the Uptown Location

ESRI Community Tapestry

http://www.esri.com/library/brochures/pdfs/tapestry-segmentation.pdf

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Community Tapestry: Trendsetters

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Focus on Uptown Area: Trendsetters

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Uptown Tapestry Report

Segment 27: Metro Renters

Segment 22: MetropolitansSegment 23: Trendsetters

Segment 65: Security Set

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Community Tapestry: Green Acres

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Green Acres in Concord Mills and Kannapolis

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Concord Mills Tapestry Report

Segment 17: Green Acres

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Blakeney Store Overlay on Income

Barry - Affluent Professional Market Segment

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Blakeney Store Tapestry Segment

Segment 4: Boomburbs

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The Artist’s Collection

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The Artist’s Collection

San Francisco, CA

Charlotte, NC

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The Artist’s Collection

Madison Smith is a potential new business

owner that has proposed opening, The Artist’s

Collection, a retail store featuring a variety of

handmade goods, ranging from women’s jewelry to

one-or-a-kind pieces of art and is looking for a

location in Charlotte.

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The Artist’s CollectionSite Selection

Leasable Retail Space

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Leasable Property Reports

1) Business Proximity (Competition)2) Recent Construction Proximity3) Demographic Report4) Public Transportation

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Business Proximity(Competition)

18 Jewelry Stores

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Demographic Report

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Public TransportationReport

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Rubrics for the Artist’s Collection

Oral Presentation

• Organization• Presentation• Audience• Visuals

Written Paper

• Letter to Owner• Comparison Chart• Location Checklist• Trade Area Analysis• References• Appendix