The Problem: How do we boost revenue by 20% with a solution that the company can afford?
Our idea: A fresh line of kitchen appliances by Best Buy
We decided to focus on Pacific kitchen as a line of products that do not sell as well as mobiles, Tvs and audio products. We are starting with a section of Best Buy because it is always better to test the change on a smaller scale rather than make a dramatic change to the whole store. These products will be sold in the Pacific kitchen section and in their smaller stores right next to other products of the same kind. Best Buy already has contacts with manufacturing plants and they currently serve as the middle man where they mark up prices to earn profit off the base price that the original company has set. Instead they can go directly to the manufacture to make their own quality price but mark down the price. The line will include large kitchen appliances like fridges, washers, dryers and microwaves. If the line is successful, our products could very easily sell on Amazon and Target as their own brand.
Think Amazon basics and the CVS products line...
Best Buy currently offers a free delivery of 3-5 business days for items $399 and up. However, since we are coming up with our own cheaper line of products, it makes more sense to lower the minimum price for delivery fee. Therefore, we propose a new free delivery method for purchases of $299 and up.
We also propose an alternate delivery method through a partnership with Uber that enables same day delivery. Through research, we found that 57% of people would pay for same day delivery when buying furniture, and 49% of customers would pay for free delivery of large appliances. Today millennials are so used to ordering things online and getting them extremely quickly through things like Amazon Prime. They don't want to wait days for a delivery to come, so we thought this partnership would be a way for Best Buy to stay current and keep up with other companies that have fast delivery. It would also enable tracking on packages.
RESEARCH & INSIGHTS