Retailing

Short Cases: BED BATH & BEYONDs PLAN FOR GROWTH

10/12/2011 Telenor Pakistan

Submitted To: Mr. Zafarullah Zakariya

Submitted By: M. Shuaib (ME-10-04) Arslan Mehmood (ME-10-13) Imran Qaiser (ME-10-18) Shabi Ul Husnain (ME-10-30)

ASSIGNMENT:

Q1: Explain how Bed Bath & Beyond practices the retailing concept. Answer: In our view Bed Bath and Beyond practices the retailing concept by being value-driven and goal oriented. As they have been maintaining annual sales of 6 billion (not to mention the 15 years of consecutive profit), BB&B has clearly met the customer's standards by offering convenient and multiple store locations, excellent store atmosphere, and an assortment of indispensable merchandise. BB&B also practices the retailing concept by giving their customer a total retail experience. When a customer ventures into a BB&B store, they aren't just looking to purchase a product, they are seeking a pleasant shopping experience. Bed Bath & Beyond stores are generally located off all major highways or large plazas with wellproportioned parking lots and easy access to the main doors. Inside Bed Bath & Beyond franchises, the store is regularly staffed with a large quantity of friendly and well-kept' sales associates who are willing to approach and help the customer in finding their particular needs. Also, BB&B offers good value to their customers by keeping them informed in regards to special store promotions whether by mailing list or basic in store flyers.

Q. 2: Evaluate Bed Bath & Beyond's growth plans. Answer: Bed Bath & Beyond's growth plan is highly effective. Over the past decade, BB&B has opened hundreds of stores in a variety of locations. By annually securing greater sales, BB&B are able to open more stores nationwide allowing their customers greater access and more convenience in the travels. Also, another great advantage BB&B has over their competition is the fact that they are now being allowed in large shopping centers across the US. This opens up extra business for BB&B given that customers at those shopping centers are more likely to "pop in" and browse within their store if need be. In addition to BB&B's significant chain expansion, their decision to purchase the Christmas Tree Shops proved favorable feedback from loyal Christmas Tree shoppers.

Q. 3: How can Bed Bath & Beyond increase the overall quality of its customer service? Answer: We believe that BB&B has done a superior job in maintaining their image and reputation in quality customer service. In this particular case, about BB&B's customer service it therefore becomes hard to pass judgment or grant constructive criticism towards BB&B's customer service department. Clearly, BB&B are doing something right if they are out performing their competitors while maintaining a high customer satisfaction rate.

Q. 4: Explain the concept of value from the perspective of a Bed Bath & Beyond customer. Answer: The stores are well maintained and the isles are of ample size to fit to shopping carts going opposite directions. The sales teams during that particular day were all well presented and approachable. As of value, I find it hard to believe that customers aren't thoroughly satisfied with their purchases in relation to the cost. In most cases, unsatisfied customers would not return meaning decreasing sales and less net profit (clearly, this is not the case). As a retailer, BB&B offers good quality value to their customers by sending out flyers, coupons, and special promo's via mail. Customers of theirs also have always received some sort of flyer in the mail offering "unbeatable selections" and "great savings".