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Part III: Marketing Mix
In this part, the paper will discuss all the our elements o market mix, which include price,
promotion, product, and place! "he marketing mix to #e discussed is going to #e looked at as
the$ relate to the alread$ identiied new position!
Product and Ser%ices
&hen S"P anal$sis o 'est 'u$ is used, it shows that the #est wa$ to ensure that the compan$
maximi(es proit is through adding depth) this can #e easil$ achie%ed when the current generic
#rands is aided with the addition o new #rand names *+ston, ,-11.! "he intention o increasing
the #rand names is to help address the ideal position o the perceptual map as a compan$ o high
%arieties! /thers suggestion that can #e seen in the marketing mix is the need to heighten the
ser%ices oered to the customers with return polic$!
Complexit$
&hen 'est 'u$ creates a return polic$, there are high chances that it will impro%e customer
ser%ices! Ma0or competitors o 'est 'u$ use return polic$ that is dierent across all o them
*Siklos, ,-1-.! "he onl$ con%enient wa$ or 'est 'u$ to reach its ideal perceptual point, which
according to the positioning strateg$ was Star, the compan$ has to ensure that the customer
satisaction is increased! 1suall$ customer #elie%es that their satisaction is the compan$2s
priorit$ when the compan$ modiies return polic$ towards that direction *"omm$, ,-13.! "he
ad%antageous part o this is the act that displeased customers situations will #e corrected #$ the
modiied return polic$! In the case where 'est 'u$ decides to ignore this, customers are likel$ to
#e urious with the compan$ as it will #e seen that the compan$ %alues itsel more at the expense
o customers! Increase in customers trust on 'est 'u$ is easil$ achie%ed when it implements
return polic$ where customers ha%e the opportunit$ to return those products that are non
perisha#le and those items that are not opened or a period that is not longer than 3- da$s along
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with the original receipt to help acilitate reund as that is the created culture! 'est 'u$ main
interest is to increase its depth and #readth and, thereore, changing o its products will not #e a
good idea and remo%ing more products rom the pool is not a %er$ wise step! "he num#er o
choices #$ the customer will #e increased when the compan$ keeps the current product selection
on the alread$ existing ones! "he choice o whether to shop in 'est 'u$ or an$ other store is
eliminated as customers will choose rom the products that are ound in the store!
'readth
Ma0or competitors o 'est 'u$ ha%e #een changing rom large analog tele%isions that the$ ha%e
#een producing in the recent past and customers ha%e shown their appreciation o the
competitors2 mo%e *"omm$, ,-13.! 'est 'u$ needs to introduce a new product line which is an
impro%ement o the analog tele%ision to the wireless one that can #e easil$ operated #$ the
customers rom where%er position the$ are! "he compan$ has to increase more modern products
that conorm to the current technolog$ around the world) this is to #e a#le to remain competiti%e
in the industr$! "he products #readth will #e highl$ increased when %ariet$ o products are
introduced such as a modern tele%ision!
Depth
'est 'u$ can also implement its marketing mix strategies #$ wa$ o increasing its #rand names,
which ma$ also include the #rand o the manuacturer *"omm$, ,-13.! Ma0or 'est 'u$
competitors2 such as +ma(on, &al4Mart, and e'a$ has #een selling using #rand products, and
when S"P is used, graph2s %ariet$ axis ound to #e %er$ close to the ideal position that 'est 'u$
is aiming to achie%e! "o counter this, 'est 'u$ need to implement its competitor2s %ariet$
strategies! +ddition o #rand name to 'est 'u$ is %er$ important as it will attract customers who
normall$ a%or #rand names o%er the usual generic #rands! "he compan$ will also ha%e a #etter
standing in terms o its competiti%eness among the competitors that lit #rand names! &ith the
increase in the #rand, 'est 'u$ products will ha%e a greater depth within the existing product
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lines, which will also see the customer %alue increased *+ston, ,-11.! Customer %alue perception
will #e impro%ed when the compan$ takes the option o creating new #rand products!
Price +d0ustment
'est 'u$2s customers are %er$ price sensiti%e such that when there is an$ percentage increase in
price the will #e a signiicant decrease in the 5uantit$ #eing sold #$ the compan$! Inade5uac$ in
the #rand names o 'est 'u$ is a ma0or reason to the elasticit$ in the price! &hen a compan$
decides to increase the price #$ letting sa$ se%en percent, the 5uantit$ o goods that will #e sold
will decrease with a percentage that will #e more than the se%en percent! "his calls or greater
caution #eore an$ step is taken to increase as it ma$ signiicantl$ aect the compan$ sales to its
disad%antage *6oldstein, ,-1-.! 7%en though the decrease in the price le%el is likel$ to increase
the 5uantit$ #eing sold #$ the compan$, there is need to #e cautious on the prices also oered #$
other irms! &hen the price has to #e increased then %ariet$ o #rands should #e there so that
e%en when customers reduce the purchase o one #rand, there is another option o the %er$
compan$!
Pricing o New Product
&hen 'est 'u$ introduce new #rand name o products, the pro#lem o pricing new products will
#e sol%ed as opportunit$ to increase the price is possi#le with the new #rand *"omm$, ,-13.!
7%en though the current products o 'est 'u$ are elastic, there are high chances that the new
#rand will not #e as elastic as the current products, this is #ecause o the %alue addition that has
#een done to the new product! 'est 'u$ can, thereore, decide on charging high prices as most
consumers preer high 5ualit$ products *"omm$, ,-13.! &ith such notion in the customers mind,
there ma$ #e %er$ negligi#le decrease in the 5uantit$ #eing sold when the price is raised! &hen a
new product is priced slightl$ higher than the current product, will not result to an$ negligi#le
sales 5uantit$! &ith the new #rand, 'est 'u$ stands a #etter chance to recei%e a large amount o
in%entories at a more relati%el$ low price rom #rands!
"$pes o Pricing Strategies
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"he #est pricing strateg$ that 'est 'u$ should implement is the skimming pricing, which is the
strateg$ o setting price o a new product so high and later decrease it #it4#$4#it *"omm$, ,-13.!
'ecause this to help #est #u$ not lose producer surplus, the dierence #etween what consumers
can pa$ at the set product price! "hrough skimming pricing strateg$, 'est 'u$ will #e a#le to
reduce, new product9s price, which is also ound to #e elastic *6oldstein, ,-1-.! "he pricing
strateg$ the compan$ is currentl$ using is e%er$da$ low pricing and when the compan$ decides
to set high price strateg$ to the #rand name it will not #e taken positi%el$ in the industr$! &hen a
new product #rand is introduced, 'est 'u$ gets a #etter opportunit$ to maximi(e proit with the
high prices set on the new products #eore the$ show an$ sign o elasticit$ *:romer, ,-18.!
Products ma$ not #e easil$ elastic when it is diicult due to lack o immediate su#stitute and
imitation is diicult!
Pricing "actics
;arge 5uantit$ discount in the ph$sical stores #ecomes the #est tactic that 'est 'u$ can adopt! It
is possi#le as the online sells as used #$ 'est 'u$ are onl$ used in large4scale purchases!
Customers need to #e gi%en opportunit$ to stock up their a%orite products as the compan$
implements the 5uantit$ discount in its ph$sical stores *6oldstein, ,-1-.! "he onl$ 5uantit$
discount that should #e allowed #$ 'est 'u$ should #e that o noncumulati%e 5uantit$ discount
to ensure that 'est 'u$ onl$ does a transaction in a single order *"omm$, ,-13.! Se%eral
transactions re5uire the cumulati%e 5uantit$ discount, which onl$ ends up #eneiting onl$ the
customers *:enneth < Donald, ,-1-.! It is expensi%e or implementing cumulati%e discounting
as it re5uires constant updates on the technolog$ that can #e used to track customers!
Noncumulati%e 5uantit$ discount is more preera#le as customers will #e a#le to do purchases in
#ulk, and it would #e o great #eneit as it will decrease the search costs *+ston, ,-11.! 'est 'u$
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will #e %er$ attracti%e to customers as their products will ha%e %er$ little cost resulting to %er$
cheaper price!
Place
"he current distri#ution channel that 'est 'u$ is highl$ exploiting is that o online distri#ution
channel! "he ominichannel is meant to reach as man$ customers as possi#le in all places: stores,
#$ use o internet ena#led mo#ile phones, and ensure that the compan$ reduces the costl$
ph$sical stores #$ taking ad%antage o ad%ancement o technolog$ *:romer, ,-18.!
Channels
'est 'u$ uses #oth ph$sical store and online stores and customers are allowed to #u$ their
desired products in the desired 5uantit$! +ccording to the conditions pro%ided #$ online stores,
consumers ha%e a limited time to do their purchase as it can onl$ #e done within two da$s! It is
%er$ cost eecti%e or small #usiness to use online #ulk *6oldstein, ,-1-.! "he le%el o online
purchases need to #e o%erl$ exploited #$ 'est 'u$ since the target market #$ the compan$ is on
the middle le%el class +merican who operates mostl$ small scale #usiness! "o impro%e large4
scale purchases #$ this target market, the online purchases should #e made much easier and ease
to use! It is a good opportunit$ or the compan$ to take o%er customers who keep on looking or
the #est deals online due to their price elasticit$ *"omm$, ,-13.! 'est 'u$ must see to it that an
easier to use online interace used #$ the customer is pro%ided to encourage customers to make
purchases *:romer, ,-18.! /nline and print out catalog is another good wa$ to #e implemented
#$ 'est 'u$! "he #est wa$ to make catalog proita#le despite the additional cost it will create is
#$ looking at the right wa$ o distri#uting the catalog depending on the targeted market!
"horough research need to #e done to ind out which target area re5uires which particular catalog
*6oldstein, ,-1-.! "he compan$ can maximi(e the le%el o sales #$ use o these online and
ph$sical stores, and the two channels need not #e dropped #$ 'est 'u$! /ther channels #oth
direct and indirect that can #e used or distri#ution does not seem to #e easi#le with the
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compan$, thereore, no intention to use them! "he compan$ is currentl$ ha%ing %er$ selecti%e
distri#ution intensit$ #$ choosing the #est outlet due to the lo%e that customers ha%e shown to
'est 'u$ #rands *:enneth < Donald, ,-1-.! &ith the new #rands that the compan$ needs to
introduce, the #est distri#ution intensit$ should #e intensi%e distri#ution! It will aim at ensuring
saturation co%erage o the a%aila#le market outlets!
Suppliers and ?endors
"he current suppliers o 'est 'u$ Compan$ need not #e dropped, #ut there ma$ #e a need to
include %endors that ha%e the compan$2s #rand name o the products to #e sold! Positioning o
'est 'u$ demands that the #rand name o the product #e pro%ided along with depth in product
%ariet$ *+ston, ,-11.! &hen this is done, the compan$ will #e a#le to increase satisaction o its
customers! "he suppliers the compan$ is currentl$ working with use intensi%e distri#ution, which
will make the products a%aila#le to whoe%er would want to purchase them! Most o the products
that the compan$ is selling are not exclusi%e as competitors are suppl$ing similar products! In the
occasion where 'est 'u$ is supplied with products that are not popular with the customers,
manuacturers are usuall$ orced to discount them in order or the suppliers to #e a#le to reduce
in%entor$ *6oldstein, ,-1-.! "here will #e consistent in the price o #rand name products in the
case where there will #e additional #rand name product! "here will #e numerous choices
a%aila#le or customers to choose #ecause o the greater depth that will #e created #$ the added
#rand names! 'est 'u$ will #e a#le to shop around the compan$ stores with ull conidence that
the preerred #rand is a%aila#le! "he 5ualit$ o the new #rands will #e a strateg$ to get customers
#u$s other a%aila#le products other than their usual #rands when the$ ind them to #e con%enient
to purchase!
+d%ertising and Promotion
Since the compan$ is resorting to a new positioning in the market and introducing new #rand
products, a #etter wa$ need to #e ound to communicate their new products to the consumers!
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"he compan$ is to use the #est ad%ertisement and promotion media to #e a#le to maintain its
communication with the alread$ existing customers while at the same time reaching new
customers *:enneth < Donald, ,-1-.!
Current Strategies
"he le%el o ad%ertisement that is currentl$ practiced #$ the compan$ is that which ha%e a #udget
that is #elow that the industr$ has set! It, thereore, means that the messages that are #eing
con%e$ed #$ the compan$ are not so man$ *Aopson, ,-1,.! "he new positioning demands more
than this le%el o promotion, which makes it necessar$ or 'est 'u$ to step up their
ad%ertisement methods to help introduce new products that are a%aila#le to the customers!
Be%erting the pu#lic opinion a#out 'est 'u$ will re5uire the compan$ to send out the #road
#readth and depth that 'est 'u$ oers!
+d%ertising /#0ecti%es
"he main ad%ertisement o#0ecti%e will #e to con%e$ the message o the new options that are
a%aila#le to the customers in all 'est 'u$ stores! "he compan$ also needs to communicate that
the customers are a#le to purchase their preerred products at a %er$ aorda#le price!
+ppeal
Price sensiti%e customers o 'est 'u$ are more responsi%e to inormational appeal than the
emotional appeal unlike other customers that ind emotional appeal so capti%ating and more
eecti%e *Aopson, ,-1,.! "o capture the new price sensiti%e consumers, the compan$ needs to
de%ise a method in which these customers would #e con%inced that the entire product the$ need
is stocked #$ 'est 'u$ alone and that such products cannot #e ound an$where! "he ph$sical
appeal will #e less used when logic and reasoning is used as customers will make purchase
decision depending on their wealth *6oldstein, ,-1-.! In the case the compan$ intends to sell
luxurious products that are also not necessities, the #est appeal that can #e used is emotional
appeals! 'est 'u$ need to #e honest and tell customers a#out the products the$ sell with ull o
acts so that customers can #e a#le to make a sound 0udgment when making decision!
Media
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"he compan$ has #een using the internet when doing their ad%ertisement through their we#sites!
'est 'u$, howe%er, has not done so well in terms o online ad%ertisement! &ith the arri%al and
massi%e usage o social media such as twitter, ;inkedIn, Face#ook, and man$ other similar
we#sites, 'est 'u$ need to ma0or their ad%ertisement on these sites *:enneth < Donald, ,-1-.!
"he main target o 'est 'u$ includes $outhul ages #etween 1C and 3=, most o them are college
students who are lo%ers o internet and use such sites more re5uentl$! "he$ are likel$ to respond
to the compan$2s ad%ertisement and recommend their riends *6oldstein, ,-1-.! "hese customers
are price sensiti%e and can mo%e to multiple sites to ind the #est price in the market! "he
compan$ needs real strategies to reach man$ customers at one particular time than that which
aects customers repeatedl$! 'ecause this is that price elastic customers do not need to tr$ new
stores in ad%enture #ut usuall$ go or the one with the #est price! +ter their irst purchase, the$
will make a decision on whether to like the stores or look or another one! &hen the$ ind it to #e
interesting, the$ will come repeatedl$, and when the$ do not like it the$ do not go #ack to the
store again! &hen the compan$ resorts to reaching more customers all at ago, it will #e more
eecti%e in the long4term!
Creati%e 7xecution
Since the price sensiti%e customers are considered more reacti%e to acts more than emotional
appeals, thereore, creati%e execution in this case #ecomes the use o acts when approaching
customers! Customers need to #e inormed that the compan$ has expanded its product #rands to
cope up with the new position o the compan$ *6oldstein, ,-1-.! &hen the acts are recei%ed #$
the customers, the$ will think o coming #ack to the retail shop to get products that are similar!
"o achie%e this customer, #ase depends so much on whether what the customer gets satisaction
or not *:romer, ,-18.! &ith the acts oered to customers as a creati%e execution o the
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ad%ertisement strateg$, the$ will #e a#le to appreciate, and customer lo$alt$ to the compan$ will
#e achie%ed!
&orks Cited
+ston, +dam! EFow 'est 'u$ Makes Mone$ Bec$cling +merica9s 7lectronics!E8-!,!
GreenBiz. ,-11, &e#! +pril ,C, ,-18!
Clow, :enneth < 'aack, Donald! Integrated Advertising, Promotion, and Marketing
Communications 3rd edition! Pearson 7ducation, *,-1-.! pp! 1>=G@1! *,--@.! IS'N -4134
1C>>,,4,!
6oldstein, D! Marketing plan: the #est tool or a successul #usiness! The Journal o !ata"ase
Marketing # Customer $trateg% Management, ,-1-, 1, *3., pp ,>84>=8!
Aopson, 'iahn! H'est 'u$ to close stores and axe 0o#sI! &inancial Times, ,-1,, C!1: 14,!
:romer, "! $egmentation and the methods o im'lementations! New Jork: PB, ,-18!
Siklos, Bichard! E+ma(on Considering Downloads!E The (e) *ork Times!1>!=! *,-1-.!
+cademic Search Premier! &e#! +pril ,C, ,-18!
"omm$, C! H/nl$ Stores Consumer Complaints and Be%iews!I Consumeraairs.com.
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