Case Study: The CMO of electronics retailer JB Hi-Fi has commissioned a marketing study to analyse its performance and identify opportunities for growth. Your marketing consultancy firm has been given this project and you have been assigned the task of analysing the data and developing recommendations to be presented to the CMO of JB Hi-Fi. JB Hi-Fi is one of the leading electronics retailers in Australia operating over 210 stores. In recent years, increased competition has reduced its profitability and the retailer is working on a major restructuring plan aimed at increasing its market share. As a first step towards restructuring, this study has been commissioned to provide insights about JB Hi-Fi's customers, their attitudes and their spending habits. Two other retailers - Harvey Norman and The Good Guys have been identified as the major competitors of JB Hi-Fi. For this study, a survey was sent to 500 randomly selected consumers in Melbourne metro area asking questions on their electronics purchases. The survey started by measuring 'Top of mind brand recall' by asking respondents to name the first brand that comes to their mind when they think of an electronics retailer. It then asked about respondents' spending in JB Hi-Fi and its two major competitors, in the past one year.
Furthermore, the survey also measured their perception of JB Hi-Fi and its competitors regarding three main store attributes - price level, service quality and range of products carried. These three factors were identified as the most important determinants of consumers' electronic goods purchases. The responses were collected on a 5-point scale for the following survey questions.
1. On a scale of 1 (very unattractive) to 5 (very attractive), how attractive is the price charged by each of the three electronics retailers.
2. On a scale of 1 (very bad) to 5 (very good), how would you rate the in-store and post-purchase service provided at each of the three electronics retailers
3. On a scale of 1 (very bad) to 5 (very good), how would rate the product variety (products and the brands) carried by each of the three electronics retailers.
Out of 500 survey questionnaires, 322 responses were obtained at a response rate of 64%.
Tasks needed to be done:
1. Analyse the market position of JB Hi-Fi relative to its competitors. (Market share analysis)
2. Identify the drivers of JB Hi-Fis' performance relative to its competitors. (Market share decomposition)
3. Considering your findings, identify opportunities for increasing JB Hi-Fi's market share.
4. Develop recommendations for JB Hi-Fi using your findings from the market share analysis as well as the other aspects of the survey. We can use the survey data to uncover any difference between the three retailers regarding awareness, and/or perceptions of price, quality or assortment. We can compare the average perception of each attribute ?price, quality and assortment across the three retailers.)
Specific Requirements: The assignment consists of two parts: Analysis and Report. We need to submit both the analysis (in Excel) and written report.