Case 3: Best Buy: Promoting Its Insignia consumer electronics brand 1. Developin

Question

Case 3: Best Buy: Promoting Its Insignia consumer electronics brand

1. Developing 5 measures of brand awareness that can serve as obj for BestBuy advertising efforts for insignis products.

Case 3: Best Buy: Promoting Its Insignia Consumer Electronics Brand As the manager of Best Buy's (www.bestbuy.com) in-store network, Paul Flanigan has the responsibility of developing and implementing a strategy that increases both brand awareness and sales for Insignia, Best Buy's flagship private label. (Best Buy also has Dynex, a second-tier private brand). A specific objective for Best Buy's promotional efforts is to make its Insignia brand a direct competitor to such popular brands as Sony, LG, and Samsung Best Buy wants the advertising approach to the Insignia brand to focus on how consumers use this brand, not on the brand itself. Thus, Best Buy wants promotions to highlight families watching favorite TV shows in their dens, rather than showing a TV hanging on a wall to make a den look high-tech Best Buy's Flanigan reviewed ads from Insignia's major competitors in an effort to better understand how their promotional messages connected to their target customers. One competing brand's advertising showed its television hanging on the wall, while an ad for another brand showed how a large screen can get you close to the sports-related action. Neither of these ads was created especially for in-store networks; and they were 30-second broadcast ads. Based on the review of these and other ads, Flanigan and his team developed a two-tier advertising strategy for the Insignia brand, with the first step focusing on generating brand awareness and the second step portraying the desired lifestyle message. The first ad created for this campaign had a running time of 31 seconds and was totally visual (with no audio commentary). This approach enables a consumer to get the full message in a noisy store or in stores that do not play the audio portions of ads to reduce noise levels. The ad portrayed several home environments for Insignia products. While each video stressed Insignia HDTVs, Blu-ray DVD players were also included to show an enhanced product line for the brand. Insignia ads were timed to run every 10 to 12 minutes, other brands ran less often because they had to pay for these in-store promotions This campaign was highly successful. For a two-month period after the initial in-store promotion sales for every Insignia-branded model increased (including an older-model 720p plasma model that had seen two months of declining sales). One Insignia model's sales increased by 149 percent, a second by 116 percent, and a third by 69 percent

Explanation / Answer

We can use the following metrics to track the Best Buy advertising efforts for Insignia products,

Behavior: How the consumer interacts or engages with the products after being exposed to the in-store advertising campaigns? It could be either customer engaging directly with the products or interacting with the in-store sales executives.

Perception: This is pretty much related to the Behavior Metrics. The main objective here is to know what's the customer's perception of the product after successfully watching the advertisement campaign. This could well be understood by the way customer interacts with the product or the kind of queries he/she puts up to the in-store sales executives. There could be differences in the customer's perceived benefits of the product and the actual benefits, and it's really important to set up the right expectations or match the perceived and the actual benefits.

Performance: This is probably the most important metrics as it talks about how it has helped the company to achieve its objectives via the advertisement campaings. Have the campaigns helped the company to increase the brand awareness and to increase the sales. Unlike the above two metrics which are qualitative, this metrics is quantifiable and essentially speaks about the success or failure.

Engagement Duration: How long the customer is engaged with the featured advertising campaign can help company know how effective the campaign is and whether he/she is able to relate with the running promotion? If the engagement period is shorter than the previously runned campaigns, then it's a clear sign for the company to reasses or relook at the camapign.

Number of queries asked: It's an effective measure to understand and helps company know the intent or interest or attention to the advertisement of those exposed to the advertisement.

Feedback: It's a very powerful tool and Best Buy can use the Feedback form to understand customer's understanding of the exposed products with the help of some open ended or closed ended questions. This can also help them measure the number of interested customers or those who would like to buy Insignia products out of the total footfall in the store.

Repeat customer or visitors: Total number of repeat customers and visitors imply that the camapign have somewhat achieved the success in increasing the consumers interest. These are generally the ones who do a lot of market research and then come back, and if they feel contended with the product, they can become your loyal customers.

Number of conversions: Total number of intended product conversions against the total footfall or total number of intended product conversions against the total sales. It would be great if we could measure the total number of sales whch happened due to the running campaign. Feedback form can be used for this purpose.

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