JB Hi Fi Marketing strategy: critical Analysis

JB Hi-Fi is Australia’s Largest Home Entertainment Retailer. Here, we do a critical analysis of its Marketing Strategy (offline as well as online).

Introduction

JB Hi Fi is a renowned brand that sells a variety of electronic goods. The core business of the company is to sell electronic goods in-store and online. JB has a range of products and offer gaming consoles, CD, mobiles, laptops, security equipment, and other equipment for the tech-savvy (JB Hi-Fi Limited, 2018).

In this report, a detailed analysis of the Marketing strategy of the company is critically analyzed in the first part. JB uses a mix of communication strategies to attract customers. The integrated online and offline communication channels make it easy for the company to communicate with the different age group of people, making it easy to hit the target audiences.

The other part of the report discusses the campaign proposed for the company to focus on the latest technological advancement and cater to the bigger part of the market. The Smart Home Products are equipped with Artificial Intelligence and the Internet of Things, which is the future, and JB must concentrate on the same.

Unique Selling Point

JB has aligned its retailing philosophies and consumer value proposition to deliver exceptional customer service and great value every day. The staff of JB hi-fi is empowered to negotiate with the customer, give a discount, and match the price with a competitor to mature the deal. JB unique, low-cost model helps them to give the lowest price deal to the customer, which help them to compete with customers. Thus consumer gets the best brands at the lowest price (JB Hi-Fi Limited, 2018).

Current Target Audience

JB primary target market is young tech-savvy whose age is in between 16 years to 29 years and Middle age couples of age between 24 years to 45 years. It has a strong position with young tech-savvy demographic, homemaking families, and Gen X demographics. Both genders are the target market (JB Hi-Fi Limited, 2019b).

Current Communication Strategies

JB has a presence over both online and traditional media through which they are connected with customers. JB believes in customer engagement and customer satisfaction. JB has consistently invested in various communication platform to promote its brand. In 2017 sales and marketing expenses were $ 580.1 million, which as has increased in 2018 to $ 695.1 million(JB Hi-Fi Limited, 2018). JB is consistently investing and improving its communication channel.

Online

Website: JB website can be accessed on any device, which makes it easier to navigate. Vibrant color is used on the website to attract customers, and properly labeled taskbar makes it easy for the customer to find what they are looking for. Website is a platform where customer can view the different products and get detailed information about every product like features, specification, discount, etc. and also provide the facility to buy online. The website helps in gaining the trust of the customer and hence increases the sales (Demangeot & Broderick., 2016). However, JB websites need some improvement; the website is not able to compare the products which are relevant for a customer in decision making. JB is currently testing Shopify Plus, which is a new e-commerce platform. This new platform will make online shopping more comfortable and will analyze the past purchase made by the consumer so that it can offer a customized deal to the customer (Mitchell, 2019). This innovation will increase customer experience and sale.

Emails: JB sents its weekly flyers to its customers through email. JB uses predictive analytics for email, which focuses on a single consumer view model. Predictive analytics helps JB to sent personalized email to each customer, and it also provides tailored-made product recommendation using customer data, which includes browsing history and shopping behavior (Brown, 2019). JB email subscription is increasing as they are promoting it by providing free membership vouchers.

Social Media: JB is very active on Facebook, it has 66686 followers, and 67181 likes its FB page (JB.Hi.Fi.NZ.Official, 2019). JB has shorts videos of less than a minute, which are creative and informative. Creative pictures and videos are USP, which makes the user view the content. Beside that JB is also has paid FB advertisement to reach the customers who are not following their page. Its attractive paid advertisement help to increase the followers. FB page also has an option of ‘Shop Now’ which direct the customer to its website. However, the live streaming feature should also be added so that it becomes more interactive. Currently, the Message tab is also missing on FB page. Message tab allows the customer to interact one on one with the company and helps to solve the issues (Zumstein & Hundertmark, 2017).

JB has its channel on youtube with 6053 subscribers (JB HI-FI, 2019). On youtube, JB shares the videos of its latest discounts, new product and commercials. Videos are short and are very interactive, which are liked by the followers. JB is also doing paid advertisement on Youtube to reach a large segment of customers. 8866291 views (JB HI-FI, 2019) show that their content is attracting customers.

Offline

JB also invest in the offline communication channel to reach the audience. Traditional media is used to target an audience who are not following JB on its social media platforms. Offline communication is a medium to reach a large segment of the audience.

Television and Radio: Television advertisement of JB are mean to reach a broad audience. JB uses TV to promotes its discounts offer. The ads are concise, creative, and informative, which attract customers (Chithra & Kothai, 2014). Radio broadcasting is also used to promote its offers as working professionals use the radio while traveling to their workplace.

Newspaper: JB uses newspaper to promote its discount offer. Newspaper is the first thing that most Kiwi read to start the day. Newspaper is available in both printed as well as e-paper, which helps to reach a broad audience.

Flyers: Printed colorful flyers are available at the entrance of the shop as all of its outlets are situated in high streets with high footfall. JB also distributes flyers to the nearby residence. JB flyers are colorful and contain all the offers and discounts that the store is offering for the week.

Billboards: JB shops location and its attractive billboard help window shopper to enter the showroom. The colorful, innovative, and handmade effect gives a personal touch to customers. Eye-catching discounted poster increases inquisitiveness among customers who attract customer to go inside the store (Northwood, 2018).

Integrating offline and online marketing communication

Integration of online and offline marketing communication aim is that same message reach to the customer. JB is using an appropriate mix of offline and online marketing communication channel to make its campaign successful. Billboards, flyers are used by JB to draw audience attention to a website where they can find complete information. Commercials on Tv and radio are being used to promote the campaign and actively promoting website link so that customer can get detailed information (Zook & Smith, 2016). ‘Click and Collect’ feature allows the customer to buy online and collect at nearby stores (Jara, Vyt, Mevel, Morvan, & Morvon, 2018).

All the print media are available on the websites, and the commercials can be seen on TV and Youtube, this way the company is utilizing the power of integrated media communication channels to create an impact on the customers (Chiang & Lin, 2018). Collaboration with other companies like the ANZ points gift card (ANZ, 2019), is also a good way of increasing the footfall instore or online as it is important to engage customers and create a want by need stimulation. JB uses the Integrated media mix to create a touchpoint for communication with the customers at all levels. Thus, it is using the channels well to cater to the target audience, but still, there is a gap in the strategy.

GAP in the Current Market Campaign

JB undoubtedly has a good marketing communication strategy when it comes to their security appliances range, or Music and games equipment. However, when it comes to the rest of the product, they lack majorly in promoting them and bringing the feature in front of the customers. Recently study shows how their competitors like Harvey, Noel have been marketing the products and seeing the study success (Canstar Blue, 2019). JB, on the contrary, has lacked behind the strategy. Their new strategy should focus on the overall productivity of the Smart home Product range rather than just the security product range.

Yes, security is essential, but in a country like New Zealand where 90 % of the people are working professionals, their focus should be on smart lighting for houses and other smart home appliances for everyday use. The consumer does have the spending power and an eye to learn more about the latest technology (New Zealand Iot Alliance, 2018). The major drawback is their current target audience, which does not target senior citizens and physically disabled. New Zealand is a country where everyone prefers independent and targeting physically disabled, and senior citizens would give the brand a bigger target audience to sell the products(Ford & Peniamina, 2016).

Campaign for Smart home products – AIDA Model

Target Audience:

The target audience will be middle-class Young and Elderly Couples. Disabled users will also be our target market. As this segment of people is concerned with the saving of money, improving comfort and security and saving energy. JB already an established brand in electronic items. Currently, JB is focusing on the younger generation and middle-age generation; now, it should also include the elderly couple as the target audience.

• Variables, Group
• Housing Type: Private apartments, Landed housing
• Demographics Age: 24 to 65 +
• Family Size: 1-2 , 3-4 , 5+
• Household income: $ 50000 and above
• Occupation: Professionals , Officials , Retired , Managers
• Generation: Baby boomers, GenX, Gen Y

About the Campaign:

JB was earlier was dealing with a security system in the home product range. In 2018 it started increasing its product range, and now it has a complete range of connected home products. Over the past few years, people in NZ do not only want to secure home; now they want their home Smart. Smart home products include connected devices like smart lights, smart speakers, smart appliances, smart plugs, smart sensors, and other smart appliances. These smart products can communicate within the home, which enables remote, improved, and autonomous control over the appliance, which provides various benefits like comfort, security, and convenience (PwC, 2017). As per the research conducted by Accenture, 80 % of people want a single provider for all digital needs. Now JB has all Smart home solution product under one roof. As per the research was done by International Data Corporation, smart home devices are expected to 26.9% year over year in 2019 (Ubrani, Llamas, & Shirer, 2019). The smart home product range will not only reduce the electricity bill of kiwis but also make the home secure.

Currently, people have a lack of information about what establishes smart appliances and where to purchase them. There is a substantial untapped market in NZ. JB need to educate the people of Smart home products (Ford & Peniamina, 2016). In 2018 there was 81700 theft incidence, and 48796 Burglary reported to NZ police (New Zealand Police, 2019). The rise in crime has created the potential market for Smart homes products. In a conference held in Australia, the connected home product category is evolving in NZ, and their aim to establish a leading position in the market (JB Hi-Fi Limited, 2019a). JB has always targeted young tech-savvy for its campaign now it has also to target elder couple too. Besides online communication, it has to focus on traditional media also. It has to design the content so that it is appealing to the target segment. JB competitor Noel, PB tech, and Harvey have also come with the product range to make home smarter. The earlier smart home market was targeting the high class, but with intense competition and technological advancement, the product cost is reduced and are now within the purchasing power of the middle class (Yang, Lee, & Lee, 2018).