Geospatial Applications and Research Lab
(GRAC) Invited Speaker Address
David A. Bradbard & Barbara K. Fuller
Winthrop University
Auburn Alabama
April 1, 2011
1
Comparative Analysis of Merchandising
Strategies for Best Buy Stores in Charlotte, NC
Using Geodemographic Analysis
2
Best Buy Market Segments
The Affluent
Professional – Barry
The Focused, Active Younger
Male Customer – Buzz
The Family Man – Ray
The Suburban
Soccer Mom – Jill
The Small
Business
Customer –
BB4B
3
Alabama Median
HH Income
Auburn Best Buy
Three Mile Radiu
Birmingham Best B
Three Mile Radiu
Prattville Best Bu
Three Mile Radiu
Hoover Best Buy
Three Mile Radi
Alabaster Best Bu
Three Mile Radiu
Tuscaloosa Best B
Three Mile Radiu
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 Strategy
Based 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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Marketing Strategy for Promotion of the Store Locally
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.
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CT Data for Two Best Buy Stores
Blakeney
Mid Town
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Understanding Your Target Customer
Blakeney
Mid Town
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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
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ESRI Community Tapestry
http://www.esri.com/library/brochures/pdfs/ta
pestry-segmentation.pdf
Community Tapestry: Trendsetters
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Focus on Uptown Area: Trendsetters
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Uptown Tapestry Report
Segment 22: Metropolitans
Segment 23: Trendsetters
Segment 27: Metro Renters
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.
36
The Artist’s Collection
Site Selection
Leasable Retail Space
37
Leasable Property Reports
1) Business Proximity
(Competition)
2) Recent Construction
Proximity
3) Demographic Report
4) Public Transportation
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Business Proximity
(Competition)
18 Jewelry Stores
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Demographic
Report
40
Public Transportation
Report
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Rubrics for the Artist’s Collection
Oral Presentation
Written Paper
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Organization
Presentation
Audience
Visuals
Letter to Owner
Comparison Chart
Location Checklist
Trade Area Analysis
References
Appendix
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