Re-energizing Circuit City's $4 billion TV category

The Situation:

Circuit City was the leader in consumer electronics for decades. However, Best Buy, the new kid on the block, had built bright and fresh new stores in better locations. Consumers were building a preference for Best Buy and Circuit City was feeling the sale pinch in a few categories. One of those categories was TV’s. Circuit City had fallen behind Best Buy and Wal-Mart in sales and share. The category represented $4 billion in annual sales.

Strategy / Tactics

Tarren looked for a point of differentiation between Circuit and its competitors. They all sold the same manufacturers – Sony, Samsung, LG, etc. The way the TV’s were displayed in the stores looked similar across retailers. Tarren dove into the consumer journey and experience with the help of Circuit City’s research group, the manufacturer’s research assets, and 3rd party industry insights as tracked by Forrester, eBrain, and NPD. In assimilating these insights Tarren uncovered a new and relevant truth…. TV’s were not considered luxury items. Men (slightly more than women) felt they ‘deserved’ the latest large and flat screen TV’s. Sports programs such as college football, the Super Bowl, the NBA, March Madness, the World Cup, etc., served as watchable social events. People did not want to invite friends over to watch the game on a small screen.

Tarren led a pivot because of this emerging consumer insight. Advertising and instore displays focused on the emotional aspect of the experience of watching the game on the big screen. Working in an integrated fashion with the merchandising team, finance team and store display, Tarren was able to land the message of ‘Go Big or Go Home.’ While financing and sale prices were productive activators once the prospective buyer was instore, the overall message strategy drove brand (Circuit City) preference. Circuit City pivoted to recognizing the consumer’s drivers before other retailers.

Outcomes:

Within one year of integrating online, offline (the weekly national newspaper circular), and advertising assets along with store training and display, Circuit City rose from 4th place in sales and share to first place, passing Best Buy and Wal-Mart.