The Marketing Strategies of Bed Bath & Beyond

 Bed Bath Beyond is in a tremendous retail position as of now, mainly due to its principal purchaser promoting center considering the necessities of its client. They keep opening new stores and have unequivocally promoted stupendous openings to get the word out. The competition is still excellent. However, the organization has settled on some extremely savvy choices, especially with promotion. Bed Bath Beyond is traded off to accomplish this goal by giving their clients low costs, bringing new items into the market, and furnishing their clients with a strong foundation.

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MARKETING OBJECTIVE

 As a component of more considerable vital planning activity, an Ansoff Matrix is a specialized apparatus that sees the conceivable development systems for an association. As per Muddler (2010), Ansoff’s Matrix is an apparatus that enables a business to choose its item and market development technique. Advertisers have utilized it for quite a while to decide critical needs. It gives a coherent system in which showcasing destinations can be created under each of the four principal classes of the Matrix: Product Development, Diversification, Market Development, and Market Penetration.

Methodology professor Igor Ansoff created the Ansoff Matrix in the 1960s. The thought behind the Ansoff Matrix is primary; an organization or association picks up an unmistakable knowledge of the conceivable development techniques given the blend of existing and new items and existing and new markets (Ansoff, 1965)

Market Penetration

 Market infiltration happens when an organization enters a market with its present items. This system is utilized by organizations to build deals without floating from the first item advertising procedure (Ansoff, 1957). Given the weight of store movement and firm rivalry from Amazon, BBBY has been striving to produce more online deals. Endeavors appear to pay off, as well, with web-based business development topping 20% in August 2016 (Hellman, 2016)

Product Development

Another vital choice for an association is to grow new items. Product development happens when an organization grows new items obliging a similar market (Lynch, 2003). With an end goal to drive “wallet share,” BBBY, helped by various sellers directly to customer (VDC) schedules, has been stretching out into new item classes, from vanities and lighting to outdoors and wellness gear (Hellman, 2016).

Market Development

At the point when an organization takes after the market development methodology, it moves past its prompt client base towards drawing in new clients for its current products. This methodology frequently includes offering existing items in new worldwide markets (Christensen et al., 2005). One approach to battle the current activity disquietude, BBBY accepts, is with an additional focus on promoting endeavors. In this manner, BBBY has hoped to modify its attempt to sell something, prescribing not simply singular things but a whole outline that consolidates numerous items into one’s kitchen or restroom. BBBY had bought secretly held One Kings Lane, which is a developing internet outfitting retailer that offers hip, creator stock (for the most part furniture and home stylistic layout) at a profound markdown, regularly utilizing a “blaze deal” design that goes on temporarily (Hellman, 2016)

Diversification

The diversification approach is unmistakable, as when an organization expands, it moves out of its present items and markets into new regions. Expanding might include related and random zones (Macmillan et al., 2000). As BBBY accepts, albeit a general unit improvement will probably be direct, the little buy the BABY idea that BBBY made should be the point of convergence of the organization’s extension designs throughout the following years (Hellman, 2016).

PRODUCT ANALYSIS

 Based on a variety of products offered by Bed Bath and Beyond, by using the product development strategy proposed in Ansoff Matrix, the new product will be produced in the line extension of the Bed Bath and Beyond brand, more specifically in the health and beauty division. As BBBY had produced a variety of bedding for its consumer, targeting the adult group as its user, now BBBY had come out with the idea to produce a new product in the line of BBBY Health and Beauty extension called Portable Bedding for Patients. This is because of the high demand from family members who want to buy for their bedridden relatives and have to use portable bedding for easy movement. Also, demand from many customers keeps complaining that these bedding for patients are hard to buy from furniture companies except medical supplies companies which are very limited.

MARKET SEGMENTATION

 The market division is one of the critical components of present-day advertising. It separates the market into a few gatherings and additional fragments (Kotler and Armstrong, 2005). These market segmentations can be categorized into demographics, geographic, psychographic, and behavioral.

MARKETING MIX STRATEGIES

 PRODUCT

 From a marketing science point of view, the term product includes not only the goods but also the services, ideas, and several other features of products, such as quality, design and style, brand, packaging and labeling, and features and benefits (Armstrong and Kotler, 2005).

From a marketing science perspective, the term item includes the merchandise, administrations, thoughts, and a few different highlights of items, for example, quality, outline and style, brand, packaging and design, and features and benefits (Armstrong and Kotler, 2005).

Product Style, Design, and Features

The product design is the initial phase of the making procedure. As per Kotler and Keller (2009), product design implies the shape and appearance of the item, while practical outline implies the item’s working. An eye-getting bundles plan will pull clients to attempt the item in this way, increasing sales. The new plan for Portable Bedding for Patients is as follows: –

SHAPE – Similar in shape to a hospital bed, the shape of the bed was a rectangle and had a roller for both sides of the bedding. The slight difference at the edge of the bed will be replaced with a luxury edge instead of a hospital-type edge. This will enhance the

feel towards its user, especially patient who likes regular luxury bedding.

SIZE – Different sizes from single bed size to queen bed size for the normal

single patient to two patients in one bed for easy movement purposes.

WEIGHT – Two different sizes will have different weights; a single bed size consists of

15kg and the queen size consist of 30kg of weight.

• FEATURES AND BENEFITS – the bed is specially made from cotton that incredibly comforts its user and contains a natural antibacterial effect. It is also dust mite and allergen free, which prevent germs and bacteria from taking over the bed while sleeping on

 

 

Figure 1.2 Example of a similar product design of BBBY Portable Bedding for Patient

Branding

As per (Kotler and Armstrong, 2015), a brand is a name, term, sign, image, outline, or a blend of these that distinguishes the creator or dealer of an item or service. Customers see a brand as a critical piece of an item, and marking can increase the value of a buyer’s buy. Components that had been connected in the new BBBY Portable Bedding for Patients were: –

• LOGO – The logo of BBBY Portable Bedding for Patients is by adding some wording, “Care Rest,” in a bigger font size to the logo.
• WORDING – Adding some words, e.g., “Care & Comfort,” with a variety of colors to

Look attractive.

• COLOUR – Using the primary color of BBBY, which is blue and white, with the addition of soft color to give more attraction to buyers.

       

Figure 1.3 Example of a similar Brand Logo of BBBY Portable Bedding for Patient

 PRICING

Price has been the primary consideration, influencing the purchaser’s decision. Pricing, as indicated by (Schindler, 2011), is the sum charged for the item or administration, including any guarantees or ensures, conveyance, rebates, administrations, or different things that are a piece of the state of the offer and are not paid for independently. For this express, the cost of BBBY Portable Bedding for Patients is resolved by rivalry-based valuing methodology.

Competition-Based Pricing

Including setting costs considering contenders’ methodologies, cost, costs, and market offerings. The purchaser will be founded on their judgment of an item’s value on that contender’s cost for comparable items (Kotler and Keller, 2009).

As BBBY chose to set the price of the new product based on competition-based pricing, Portable Bedding for Patients is set to sell at $2,699 each, which is slightly cheaper by $290 than competitor 1 (Invacare). BBBY is affordable for the target market compared to competitor 1 (Invacare). Although BBBY set the price for the new product to be slightly higher than competitor 2 (Medline) by $300, BBBY believes due to their strong brand in the furniture industry will attract more customers to buy the BBBY brand.

PROMOTION

For a promoting methodology to be fruitful, successful correspondence should be utilized to achieve the objective market (Hollensen, 2005). As per Armstrong and Kotler (2015), showcasing blend correspondences comprised three noteworthy advancements, which were characterized as follows: –

Advertising: Any paid non-individual introduction and advancement of thoughts, products, or services by recognized support. It is the best medium to make attention to their items to the purchasers.

Sales promotion: Short-term incentives to empower the buy or offer of an item or service. It is a typical advertising methodology that all have utilized to advance their item.

Guerrilla marketing: Way to gain awareness of brand, products, or services to the public in an unpredicted way. Guerrilla marketing is a low-budget or close-to-no-cost marketing that can raise profits appropriately infected.

PLACE (DISTRIBUTION CHANNEL

An advertising channel or distribution channel is an arrangement of reliant associations that assist in making products or services accessible for utilizing or utilization by the purchaser or business client. (Kotler and Armstrong, 2015). BBBY Portable Bedding for Patients was intended to disseminate through intensive distribution. This system stores the items in whatever number of BBBY stores could be expected under the circumstances (Armstrong and Kotler, 2014).

By using intensive distribution, BBBY Portable Bedding for Patients was targeted to be placed at:

• BBBY Stores – suitable for demonstration
• Hospital and Medical Centre – create awareness of the product to the
• Furniture Shops – more reachable, convenient, and attract more buyers.

BUDGET RECOMMENDATION

 For the budget, money will be spread out into three main categories:

1. Advertising(81%)
2. Direct marketing(2%)
3. Sales promotion.(17%)

Advertising

There use three main advertising tools that BBBY will use as their promotion strategy to promote BBBY Portable Bedding for Patients: billboards, tv and radio, and social media. Below is a budget recommendation for each tool: –

Direct Marketing

 BBBY chose to do guerrilla marketing which contributes the least of money spent in their promotion strategies and budget planning. Below is the cost of the guerrilla tools strategy: –

Sales Promotion

BBBY had identified a few places to boost sales promotion: at the hospital, shopping malls, health carnivals, and furniture expos. These are the cost of the sales promotion strategy: –

Budget Estimation Planning

The cost estimation of $187,800 for the promotion of BBBY Portable Bedding for Patients will be segregated into three different categories, mainly 81% on advertising cost, 2% on direct marketing, and 17% on sales promotion.

 CONTINGENCY PLAN

Based on the table above, BBBY had developed a contingency plan if the marketing strategies were unlikely to result in low sales of this new product development. A different approach had to be taken by BBBY to sustain the market feasibility and retain its customers and competitive advantage (Axson, 2013). As for the threat to competitors, new product development should be considered with a new target market segment (Markgraf, 2017).

CONCLUSION

In a rundown, this paper demonstrated the marketing planning Bed Bath and Beyond (BBBY) currently uses to advertise the product offering Portable Augmentation Bedding for Patients of BBBY Health and Beauty Division. It likewise depicts the position of new product development in the furniture business. It proposes a marketing plan for the product offering expansion to create income by expanding deals and to furnish the organization with a critical upper hand. Utilizing Ansoff Matrix, proposed by Igor Ansoff, has opened the doors for the organization to build up strategic business options.

Furthermore, this grid will give organizations a situation or plan for future items and market exercises. However, the company cannot rely on the marketing planning proposed earlier, and a contingency plan should be prepared in any situation. Overall, every business should have a marketing plan to generate revenue and sustain in the industry.

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The Marketing Strategies of Bed Bath & Beyond

Introduction Brief description of Bed Bath & Beyond 100 words

Analysis Summary and analysis of its marketing strategies 300 words

Solution Whether its marketing strategies are successful or not?

Solutions for better marketing.

Three hundred words Justification Describe reasons why you selected the solution.

Two hundred words Summary What do you learn from its marketing strategies?

100 words References Kreitner, R. & Kinicki, A. (2013).

Organizational behavior (10th ed.). New York, NY: McGraw-Hill Publishing Company. (Example). Follow APA format—at least three to five references.