Marketing Best Buy Case Essay

two-fold branding the association of two or more than already well recognized trademarks in a synergistic retail setting designed to bene checker each is 1 of the fastest growing aras in franchising. Dual Branding has become a rage in the market placeing bena, with companies realizing that isolation is not after(prenominal) all in all the surpass policy. Dual Branding is quite beneficial such thatM approximately(prenominal) line extensions capitalise on a partners brand equity. Brand extension success rates are maximized in the new market when co-branded with the reputed brand that has established in that market. Co-branding whitethorn help usage extension. flick reinforcement may take place due to co-branding. Loyalty programs increasingly include co-branding arrangements. The corpoproportionns are sacramental manduction the cost of loyalty programs hence, the promotional costs to the companies are coming down. Co-branding signals a trade marketing operation.Capitalizi ng on the synergies among a number of brands is yet an other advantage of co-branding. (blog, 2007)There are some disadvantages such as -Brand Cannibalization -Difficult to manage two various brands, due to splitting in Ad spend. -Possibility of blurring brand identity in the eyes of the consumer. -Duplication of roles of the corporates. (Kumar, 2012)Some examples of dual branding are Toyota and Lexus. The Toyota brand will introduce Safety colligate on select Toyota models, helping to bring its drivers an added peace of sound judgement. Lexus will introduce Lexus Enform with Safety Connect, a operate built on the foundation of valuable safety and security services with the added layer of more convenience-oriented features and narrow down advanced technologies. (Group, 2010) out hold back grease angiotensin converting enzymes palms and Future grass. Best Buy Co. is the largest consumer electronics retailer in Canada. It just happens that nearly of its sales are coming from its Future Shop business. A couple of years back, when it acquired Future Shop for $377 million, it was assumed the parent company would re-brand the 91 injects it purchased under the Best Buy banner, reports the Pi integrityer Press. Instead, Best Buy decided to forego conventional wisdom and operate the two competing divisions separately and in at least(prenominal) one case, putting stores directly across the street from one another. (Anderson, 2003)What did Best Buy learn from its consume with dual brand strategy in Canada? Even though it was a new experience for the Best Buy International team to appliance a dual- brand strategy it was the perfect opportunity to implement such strategy due to the situation in the Canadian market. In Canada, at that place was that one big player which was Future shop with only had 15% share therefore they knew there was a space for a second major player. The some important thing they learned is to be certain that markets often have diffe rent ways of being approached. In this case, they learned it from the dual-brand strategy they used because some(prenominal) stores Best Buy and Future Shop offered different consumer experiences.Best Buy is characterized by higher appositeness towards self- service non-commissioned sales staff greater assortment of ready- made electronics packages wider aisles and more interactive displays higher ratio of female customers, contactking to integrate products into their lifestyles customers with higher incomes and higher levels of education. Meanwhile Future shop wants to depute commissioned sales staff guiding the customer by providing customized, trusted and personalized approach tech savvy, early adopters cyphering for the best deal customer base more diverse. What they learned is that consumers stock differently, therefore implementing dual- brand strategy in Canada is a good way to increase profit (almost pronged profit in only a year) simply it is overly important to ke ep in mind that not all markets behave the same way, so it is best to study them first before implementing any strategy.How does the Best Buy situation in China differ from its situation in Canada?The costumers and the market were all different, for example in Canada they had one big competitor which end up being part of the best buy family even though they keep the name of future shop, at the end in Canada both companies handle real good the market because both were paying. In china the costumers were not palmy to convince to buy stuff in general and also when they buy the profit margins were too low, and if this wasnt difficult enough, best but had to deal with a competence of 4 more companies that in add just shore 20% of the market, being the only foreign company making them lose some market segment. One of the main information that Best Buy found was that the Chinese consumers care more about the characteristics of the product rather than the brand, so in order to deal wit h this new preferences they decide to distributed different their first local in Shanghai, the products were assorted by categories, not by brands. (Miller)Does a dual-brand strategy add Best Buy with a core competitive advantage as it expands into new global markets?We retrieve it does, because when they buy an existing company, they start learning from another approach, an inner vision about the local market they are about to invest in, then they end up being a more profitable alliance because when Best Buy enters in the market it start stealing costumers for all the companies, even the one who has an alliance with, and it end up with a bigger market share, the proportion depends of how successful is the entrance strategy. It also helps the image of the local brand in order to support the other in the early days, afterward when both are profitable they can manage the scathes easier in order to avoid cannibalization. (Miller)Product analysis.IPHONE 5.ATTRIBUTES. A remarkably sl im design that still makes room for a larger display and a hurried chip. Ultrafast wireless that doesnt sacrifice battery life. And all-new headphones designed to sound great and fit comfortably. So overmuch went into this iPhone. Thin, sleek, and very capable. Its hard to believe a phone so thin could offer so many features a larger display, a faster chip, the latest wireless technology, an 8MP iSight camera, and more. All in a beautiful aluminum body designed and made with an unprecedented level of precision. iPhone 5 measures a unspotted 7.6 millimeters thin and weighs just 112 grams.1Thats 18 percent thinner and 20 percent lighter than iPhone 4S. The only way to achieve a design like this is by relentlessly con billetring (and reconsidering) every single specific including the details you dont see.More beautiful maps. Elements in Maps are vector based, so prowess and text are incredibly detailed and panning is smooth. Use the tilt and rotate gestures to view an area, and M aps keeps the names of streets and places where they belong.Turn-by-turn navigation. When advent a turn, Maps speaks the directions, so you can watch the road. Follow along with 3D views Signs and arrows make it easy to see where youre headed. And if traffics bad, Maps offers alternative routes.Traffic info. Maps uses real-time traffic conditions to calculate your ETA. It is easy to endure details about incidents that are causing traffic jams, so people can tell if theres a major accident ahead or just a temporary slowdown.Flyover. advert the world from a whole new perspective with photo-realistic and interactive 3D views of select major metro areas. Explore like never before as you zoom, pan, and rotate around a city and its landmarks. film auspicates on tap. FaceTime works right out of the box no need to set up a special account or screen name. And using it is as easy as it gets.Better call clarity. Built-in microphones work together to provide clearer sound and reduce backg round noise. (group A. )BRANDING STRATEGYIt may be orchard apple tree season (with a small a) in many parts of the northerly Hemisphere, but globally its apple season (with a capital A). Thats because immediately apple will announce the new iPhone 5 in advance of its send. And like every other Apple launch in recent memory there will be a gorge of pre-orders and lines of eager consumers outside Apple stores as soon as it goes on sale. Why is that? Because unlike most companies, Apple actually launches its products.Were experiencing this right now with the launch of the new iPhone 5, as we have with the launch of most Apple products over the last decade. Its not just the product or the price or place or the promotion that is causing the sensation. precisely it the skillful way in which all four of these elements are orchestrated in the launch strategy that makes the offer seamless and irresistible. By investment funds in building brand equity before the launch Apple doesnt star t from a position of consumer inertia. They do the heavy lifting in advance of launch date which makes take off be so effortless. In fact, they make it look so easy we forget its marketing and patently accept it as a law of nature Apple products sell. But this phenomenon is not unique to Apple. Its available to any marketer whether you are selling pharmaceuticals or farm equipment.The key is early supplying especially when online networking (a.k.a. social media) is part of your launch strategy. (Duffy, 2012) The huge promise of the Apple brand, of course presents Apple with an large challenge to live up to. The innovative, beautifully-designed, highly ergonomic, and technology-leading products which Apple delivers are not only designed to match the brand promise, but are fundamental to keeping it. The recent emphasis on the iPhone 5s manufacturing build part and design standards reflect this importance. Apple fully understands that all aspects of the customer experience are imp ortant and that all brand touch-points must reinforce the Apple brand. Apple has expanded and improved its diffusion capabilities by opening its own retail stores in key cities around the world in up-market, quality shopping venues.Apple provides Apple macintosh-expert retail floor staff to selected resellers stores (such as Australian department store David Jones) it has entered into strategic alliances with other companies to co-brand or distribute Apples products and services (for example, HP who was selling a co-branded form of iPod and pre-loading iTunes onto consumer PCs and laptops in the mid-2000s though in retrospect this may now just have been a stepping-stone). Apple has also increased the accessibility of iPods through various resellers that do not currently widen Apple Macintosh systems, and has increased the reach of its online stores.From a brand architecture viewpoint, the company maintains a massive brand identity everything being associated with the Apple nam e, even when investing strongly in the Apple iPod and Apple iTunes products. Apples current line-up of product families includes not just the iPod and iTunes, but iMac, iBook, iLife, iWork, iPhone, iPad, and now iCloud. However, even though marketing investments around iPod are substantial, Apple has not established an i brand. While the i prefix is used only for consumer products, it is not used for a large number of Apples consumer products (eg Mac mini, MacBook, Apple TV, Airport Extreme, Safari, QuickTime, and Mighty Mouse). (group, 2013)When we see the packaging we already know what the content is going to be and what company produces it, it has a picture and the name of the phone at the very front and on the side respectively and also the apple that represents the company on another side of it. The first impression when we look at the packaging of the iphone 5 is how practical, modern, cute and easy to carry is. This small box comes in filthy or white, it is covered with a th in, see-through plastic bag. It is very small it can almost fit in our pockets. The secondary packaging, the one in spite of appearance the cardboard box is made of plastic, to protect the contents inside the charger, the usb cable and the headphones. The labels are also inside the box it brings a manual with all the instructions, very bona fide and easy to understand. The labeling presents all the information of the product, from where it was made, assembled and it shows how to use the product and the steps to follow before turning it on. (Group B. i., 2013)Since Apple has become such important and recognized brand, known for its reliable and good quality products, we can not only say apple has similar their products to clients but we can also say the client has standardized to apple, in this case to the iphone 5. Clients in many countries have adopted the iphone 5 and it is due to the many functions it offers, one basic function in order to be adopted by consumers is changing t he language of the phone. But one thing that makes apple very special is its apps. From the phone you can download applications that are very useful wherever you are. For example Maps, if you are here in Colombia, it will be useful but it will also be useful if you are in China. Anyone can download any app they want, and apple offers a lot of apps that are useful, some more than others, depending on the country.