Using innovation to fuel growth
Best Buy faced new and increased sources of competition and rapid commoditization of products. They recognized the need to develop a strategy to drive sustainable growth and create linkages to the Best Buy brand and innovation. Best Buy had nearly 1,000 new category ideas, but needed help prioritizing the winning ideas and developing a roadmap for implementation.
Prophet worked with Best Buy to identify business and brand-building growth opportunities that would simultaneously drive business impact and build desirable equities for the brand. Prophet conducted quantitative research that tested Best Buy’s brand equity model, and used new categories to map brand extendibility and identify core brand equity elements.
The research validated the brand equity model, and helped identify key brand value proposition and purchase drivers. Further consumer exploration yielded a number of high potential growth platforms and categories which had the ability to support Best Buy’s core equities and brand promise, and to further differentiate Best Buy from its competition. To capitalize on these opportunities, Prophet developed a five-year innovation roadmap to help Best Buy realize its growth potential.
Best Buy launched a new category (Gadgets, E-Readers, and Games) in October 2009. The category includes Smart Pens, brain games, robots, learning systems, handheld games, and other electronic gadgets. It has been extremely successful, and represents a $17B opportunity (industry-wide).
This new category, which was launched in all stores and on-line, was the first new category launch of this scope in several years.