Aug 27, 2007

Best Buy JV Mines Apple Retail for Wireless Reinvention

Best Buy's innovation incubator in the UK, JV partner Carphone Warehouse, has given a nod of respect to Apple Computer's tremendous prowess in retailing. The company's UK organization recently hired away Apple's head of marketing and communications to be responsible for brand positioning, strategy development and cross-group marketing across retail, PR and direct channels.
Combine this solid marketing leadership move with Carphone's impressive use of innovative distribution technology and you have the making of some great retail improvement ideas Best Buy will migrate to the uninspired U.S. consumer electronics retail marketplace. For example, in a drive to capture more of the lucrative and growing fashion-conscious demographic, Carphone Warehouse is taking some radical direct marketing approaches to improve its marketplace segmentation and targeting.
In effect, Carphone Warehouse uses a segmentation solution called Personicx, which attaches a code to every customer at the point of purchase. This enables the company to segment its database according to different criteria such as age, the type of handset purchased, when it was purchased and value. This segmentation is then overlaid with additional data sets - such as the customers' product portfolio and additional geodemographic information. The marketing campaign, aimed at tapping a more emotional purchase experience, allowed customers to mix and match their desired look with each handset.

Watch for big moves in early-2008 as Best Buy's U.S. operations ramp up their retail reinvention aspirations!

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