Best Buy: Sales PlanAMY CABAÑAS, NICK MAURER, GABRIEL OLIVEIRA AND MIQUEL SUBIRÀ

MARKETING STRATEGIES• By introducing Amazon’s products to our stores, we expect to create a

unique opportunity for customers to be able to try those products before buying, which they will only find in Best Buy.

• With that, we expect to increase both sales revenue and customer relation with this unique experience.

• Also, we aim this to give us a big competitive advantage to compete with major brands like Samsung, Apple, and Microsoft.

• We strongly believe that bringing these products that are only available to be purchased online and sell them in a store is something that adds much value to the consumer.

• Without extending this part of the project more than we should we are going to introduce the products that we are going to sell in our company.

• Our main goal is to bring Amazon’s products to Best Buy to reach a very concrete target market.

• We plan to implement this stratedy just in the Saint Louis Region.

• Increase Sales Revenue from 8% to 10%.

• Increase Sales by $25,000,000 by 2015.

• Guarantee the Return on Investment.

• We estimate these yearly increases will double each year of the 5 year forecasting we projected.

OUR GOALS

SALES REVENUE FORECASTING

$ 220,000,000 25000 Square Ft/Per store in St Louis terr. $880 per square feet 2013

$ 230,000,000 25000 Square Ft/Per store in St Louis terr. $920 per square feet 2014

$ 250,000,000 25000 Square Ft/Per store in St Louis terr. $1000 per square feet 2015

$ 290,000,000 25000 Square Ft/Per store in St Louis terr. $1160 per square feet 2016

$ 330,000,000 25000 Square Ft/Per store in St Louis terr. $1320 per square feet 2017

$ 410,000,000 25000 Square Ft/Per store in St Louis terr. $1640 per square feet 2018

2013 2014 2015 2016 2017 20180

50000000

100000000

150000000

200000000

250000000

300000000

350000000

400000000

450000000

SALES REVENUE PER ST LOUIS STORE

Series1

Year

Sale

s

SALES FORECASTINGBEST BUY STORES            ST LOUIS

TERRITORY            (10) STORES            

                            2-Aug-13 2-Aug-14 2-Aug-15 2-Aug-16 2-Aug-17 2-Aug-18

Revenue $

220,000,000 $

230,000,000 $

250,000,000 $

290,000,000

$

330,000,000 $

410,000,000

Cost of goods sold

$ 16,831,000

$ 16,845,220

$ 16,823,650

$ 16,835,699

$

17,567,890 $

18,900,789

Gross profit $

203,169,000 $

213,154,780 $

233,176,350 $

273,164,301

$

312,432,110 $

391,099,211

Gross profit % 23.7% 26.4% 31.6% 36.2% 41.4% 46.3%Selling, general and administrative expenses

$ 24,200,000

$ 25,245,000

$ 27,500,000

$ 23,456,000

$

21,879,000 $

18,987,000 SG&A % 11% 11.2% 11% 10.7% 11.8% 10.2%

Restructuring charges

$ 10,290,000

$ 9,500,000

$ 5,303,700

$ 4,597,700

$

3,567,009 $

2,456,999

Operating income

$ 17,200,000

$ 26,802,800

$ 49,009,800

$ 54,677,000

$

75,879,000 $

98,567,008 Operating income % 7.6% 11.6% 19.6% 27.6% 31.6% 35.7%

STRUCTURE OF SALESFORCE•Vertical structure.

•Characteristics: Flexible and Transparent.

•Organization:•Regional Marketing Manager.•Store Sales Manager. (10)•Best Buy Salespeople. (20)

ORGANIZATIONAL STRUCTURE

RECRUITING PROCESS• The recruiting will be done within the company using current Best Buy employees.

• Amazon will not be involved in recruitment but will be in training.

• That is why we plan to use our company Intranet to advertise nationwide for these positions

• We want candidates who share the values of the company and have the specific required skills.

SKILLS FOR NEW HIRES

• They need to be prepared to work past their scheduled time, working weekends, coming in early, multi-tasking.

• Demonstrate immense knowledge of electronics, preferable some knowledge of Amazon products, not a necessity, since we plan to train.

• How good they are at working with others to get a job done. We think of our company as one big team, so they will need to share that philosophy.

• Show that they can handle an issue if there is no sales manager available.

• Must not become overwhelmed if the store gets inundated with customers and another department needs assistance, even if they’re not familiar with that particular product.

TRAINING PROCESS• Teaching the employees that selling the complete solution and asking for the sale is key.

• Knowledge of the new content that is being brought to our products and how to manage it.

• Understanding how to implement any changes.

• Asking questions to understand a need for the desired product to be top on their list of things to know in detail.

• To have a efficient and controllable process, the Regional Marketing Manager will train once a month doing role playing with the employees.

SALESPERSON JOB DESCRIPTION

• Knowledge of Amazon’s products, as well as, competitors’ products.

• Be kind to the customer even if they don’t buy the product. If they have a good experience in our store then they become a return customer.

• Attend to the customer complaints and act with care and good Customer Service.

• Attend all periodic training sessions.

•Meet the sales quota of Amazon products monthly.

BEST BUY’S SALESPERSON QUOTA

Product

Monthly Quota per Sales

Person

5 Smartphone

10 Kindle Fire HD 7’ Tablets

10 Kindle Fire HDX 7’ Tablets

10 Kindle Fire HD 8.9’ Tablets

10 Kindle Fire HDX 8.9’ Tablets

1 Fire TV

46 TOTAL

COMPSENATION PLAN

When developing the compensation plan, we focused on two main goals: • To maintain high service quality with sales people carrying excellent product knowledge and customer service skills. • To keep the sales people motivated by giving an above average salary plus exceptional benefits.

SALARY AND BONUSES

•Salary = $9.30 per hour of service.

•Additional 5% above retail on any product Best Buy offers.

•One-time only 75% coupon on any Amazon products per sale.

SALES CONTEST INCENTIVE

• 1st Place • 4 nights at the

Bahamas• $4,000 in store

credit

• 2nd Place• 2 nights trip to Las

Vegas• $2,000 in store

credit

• 3rd Place• 2 nights at a spa

resort in St. Louis Area

• $850 in store credit

Thank you for your

attention.