Advised Best Buy on a global pricing strategy. While identifying prior to that the key pricing decisions the company has made in recent years. Showrooming is the consumer practice of visiting a brick-and-mortar store to view a product—then purchasing the product online. While many individuals still prefer buying merchandise they can see and touch, just as many will make their purchase decisions based on lower prices through online retailers. Local stores essentially become showrooms for online shoppers. Recommendations on how Best Buy could go forward and grow its business profitably were suggested as part of the project's final presentation.

1. Daniel Rodriguez
George Giannoulis
Irina Rybina
Natalia Garcia
Lucrezia Squillante
Cynthia Wainaina

2. CONTENT
BACKGROUND
KEY ISSUES
SHOWROOMING
CHANNEL JOURNEY
THE CUSTOMER
PRICING STRATEGY
1
4
3
2
5
6

3. BACKGROUND
2010 2011 20142012 2013
1
• Amazon App
• Online Black
Friday: $826 Mill
• Online browsing:
30% Amazon 13%
Google
• Retailer fight back
• 17% Growth
Online sales
• 37% people do
show rooming
• Online Black
Friday: $1 Bill
• Amazon Prime
membership
• Tax legislation
changes
• Uk Entry
• Sales down 5%
• China Entry
• Exclusive products
• Own barcodes
• Price matching
• New CEO Hubert
Yoly
• Celebrity Ads
• Low price
guarantee

4. 2 key issues
•Low probability to buy in store
•Drop in sales
•Stores struggle to cover fixed costs
•Training
•Price Matching

5. 3 showrooming

6. 4 CHANNEL JOURNEY
Understand customer behaviour in the modern age

7. 4
Multi-channel journey
CHANNEL JOURNEY

8. VALUE
DRIVEN
PRICE
DRIVEN
VS.
5 the customer
“I will take the one with
the best
characteristics”
“The cheapest the
better”

9. Disruptive customer journey
5 the customer

10. Disruptive customer journey
PROBLEM
5 the customer

11. Disruptive customer journey
PROBLEM
5 the customer

12. 5 best buy app
iBeacon
Geofencing
Gamification
Make the
decision within
the store

13. 7m
15m
5m
BEST BUY
5 best buy app
Customer tracking
• Lost
• Browsers
• In the zone

14. BEST BUY
15min
Sumit Kumar
Customer since: 10 years
$110
best
buy
Wifi Radio
Last purchase: 1 year ago
Purchase: 10x batteries
Value: $1.99
Last visit: 2 days ago
Time browsing: 45 minutes
$1,140
total
Snapchat offer
bba
Best Buy Assistance
5.1 price driven tactics

15. BEST BUY
15min
Sumit Kumar
Customer since: 10 years
$110
best
buy
Wifi Radio
Last purchase: 1 year ago
Purchase: 10x batteries
Value: $1.99
Last visit: 2 days ago
Time browsing: 45 minutes
$1,140
total
Snapchat offer
bba
Best Buy Assistance
5.1 price driven tactics
Stars rating
Best product
ever bought
History

16. BEST BUY
15min
Sumit Kumar
Customer since: 10 years
$110
best
buy
Wifi Radio
Last purchase: 1 year ago
Purchase: 10x batteries
Value: $1.99
Last visit: 2 days ago
Time browsing: 45 minutes
$1,140
total
Snapchat offer
bba
Best Buy Assistance
5.1 price driven tactics
Stars rating
Best product
ever bought
History
classic showroomer

17. BEST BUY
15min
Sumit Kumar
Customer since: 10 years
$110
best
buy
Wifi Radio
Last purchase: 1 year ago
Purchase: 10x batteries
Value: $1.99
Last visit: 2 days ago
Time browsing: 45 minutes
$1,140
total
Snapchat offer
bba
Best Buy Assistance
5.1 price driven tactics
Stars rating
Best product
ever bought
History
classic showroomer

18. 5.1 price driven tactics
BEST BUY
coupon
50%
off
In mobiles
Thanks for shopping at Best Buy
8
Snapchat 2min ago
Best Buy Coupon!
Snapchat
• Temporal coupon
• Redeemable just at
the cashier
• Uncertain discount

19. 7m
15m
5m
BEST BUY
5 best buy app

20. BEST BUY
7m
Mike Berry
Customer since: 2 years
$1100
best
buy
Tv 41’’
Last purchase: 2 weeks ago
Purchase: apple charger
Value: $60
Last visit: 1 week ago
Time browsing: 25 minutes
$12,140
$1100
total
Snapchat offer
bba
Best Buy Assistance
5.2 value driven tactics

21. BEST BUY
7m
Mike Berry
Customer since: 2 years
$1100
best
buy
Tv 41’’
Last purchase: 2 weeks ago
Purchase: apple charger
Value: $60
Last visit: 1 week ago
Time browsing: 25 minutes
$12,140
$1100
total
Snapchat offer
bba
Best Buy Assistance
5.2 value driven tactics
the good guy

22. BEST BUY
7m
Mike Berry
Customer since: 2 years
$1100
best
buy
Tv 41’’
Last purchase: 2 weeks ago
Purchase: apple charger
Value: $60
Last visit: 1 week ago
Time browsing: 25 minutes
$12,140
$1100
total
Snapchat offer
bba
Best Buy Assistance
5.2 value driven tactics
the good guy

23. 5.2 value driven tactics
Expert assistance
• Personal attention
• Guide
• Permanent coupon
• Discount: 100% - 0% Best Buy 2min ago
Best Buy Bundle Coupon!

24. 5.2 value driven tactics
BEST BUY
In bundle
90%
off
Your offer is now running
The discount applies only for complementary products
Accept!
BEST BUY
In bundle
90%
off
Your offer is now running
The discount applies only for complementary products
Accept!
Expert assistance
• Personal attention
• Guide
• Permanent coupon
• Discount: 100% - 0% Best Buy 2min ago
Best Buy Bundle Coupon!

25. 5.2 value driven tactics
BEST BUY
In bundle
90%
off
Your offer is now running
The discount applies only for complementary products
Accept!
BEST BUY
In bundle
90%
off
Your offer is now running
The discount applies only for complementary products
Accept!
BEST BUY
In bundle
Your offer is now running
The discount applies only for complementary products
Accept!
50%
off
Expert assistance
• Personal attention
• Guide
• Permanent coupon
• Discount: 100% - 0% Best Buy 2min ago
Best Buy Bundle Coupon!

26. 5.2 value driven tactics
BEST BUY
In bundle
90%
off
Your offer is now running
The discount applies only for complementary products
Accept!
BEST BUY
In bundle
90%
off
Your offer is now running
The discount applies only for complementary products
Accept!
BEST BUY
In bundle
Your offer is now running
The discount applies only for complementary products
Accept!
50%
off
BEST BUY
In bundle
Your offer is now running
The discount applies only for complementary products
Accept!
23%
off
Expert assistance
• Personal attention
• Guide
• Permanent coupon
• Discount: 100% - 0% Best Buy 2min ago
Best Buy Bundle Coupon!

27. 5.2 value driven tactics
bba
Product
installation
Convenient
Return & Refund
Extended
warranty
CustomisationFree delivery
Complementary
product