Jb Hi-Fi Case Study

Organisational implications

Considering all the information above, JB Hi-Fi’s fridge and freezer online SBU are well-placed to achieve their identified branding objective by 2018. The implication of the online model that is supported by HOME stores is that JB Hi-Fi can effectively establish multi-channel customer platforms that give consumers the option to use different marketing channels for search and purchase functions (see Figure 8 below). Figure 8: Multi-channel customer platforms for search and purchase functions (Verhoef et al 2007, p. 130).

Leveraging multi-channel customer management may also strengthen the link between product type and retail type (Verhoef et al 2007), which is one of the JB Hi-Fi’s identified weaknesses. JB Hi-Fi’s

For example, actively supporting online community sites and forums, entering discussion and chat forums relating to their products and establishing a presence of a whitegoods retails brand that consumers can trust will all contribute to this objective. JB Hi-Fi can also use existing advertising material to prioritise whitegoods to the consumers and strengthen the link between the JB Hi-Fi brand and whitegoods products. In addition, JB Hi-Fi need to clearly communicate the after sales support provided by physical stores when consumers purchase fridges and freezers online. These strategies would build on existing operations and hence will not place undue pressure on existing budgets or significantly increase the cost of

JB Hi-Fi fridges and freezers online will position themselves as the preferred online retailer for this product category, and will achieve this goal by:

1) Leveraging the benefits of a strong online presence, in combination with physical stores which are able to provide after-sales service to customers who have purchased products online. The growing popularity of the website supports this idea, with traffic to the JB Hi-Fi website increasing by 10% over the previous financial year.

2) Positioning the SBU as a discount retailer with consistently low prices to penetrate the market.

3) Providing customers with an element of choice around how to purchase products (online or in-store) and offering a seamless customer experience (JB Hi-Fi 2014; Rose, Hair & Clark 2011).

JB Hi-Fi’s current positioning in the whitegoods market is represented in Figure 6 below. By utilising effective marketing mix tactics, JB Hi-Fi can increase their market share and increase their likelihood of achieving the identified branding objective.

Marketing Mix