The following website communications analysis will focus on the large electronics retailer and e-tailer FutureShop. FutureShop.ca provides customers an alternative from shopping in store, offering their full product lineup on their website for the ultimate convenient shopping experience. Throughout the following discussion, I will be analyzing the competitive advantages and disadvantages of the FutureShop website in relation to another large electronics e-tailer, BestBuy.ca. Issues such as purpose, marketing messages and changes in the website over a 3 week period will be considered to ultimately identify the appropriate “windows of opportunity” that FutureShop.ca can take in order to improve and add more value to their site.
The purpose of FutureShop.ca is to give people an alternative to shopping in store. The largest electronics retailer in Canada offers a wide array of electronic solutions at low prices. The prices for in store product versus online tend to be the same, however users will have to pay shipping on most items. Convenience is the key factor here.
The main marketing message on both the FutureShop and BestBuy websites change frequently. Both are generally the same theme, as BestBuy is the parent company to FutureShop. The essential message usually equates to promoting one product or group of products heavily at a very low price. The message will also always have ties to value added items as well, to ensure the sale is maximized and the customer can enjoy the product to its fullest.
On Jan 12 th , FutureShop launched the marketing message of “Watch the Big Game on HDTV”. This campaign ties in with the upcoming weekend NFL playoffs, and offers a sale on a Big Screen TV and Home Theatre package for a very low price. BestBuy launched their campaign the same day, under a different slogan, “Score Big Savings on Home Theatre”, with similar deals being offered. Both sites also have a splash page promoting the release of the new Harry Potter movie on DVD. An excellent marketing message for both in store and online initiatives, as DVD sales have the potential for huge value added services on products such as DVD players and home theaters.
These ever changing messages are necessary to keep the user coming back to the site to see what is new and exciting, and what the best deal is, as the main FutureShop.ca user is looking for the best price on the market.
Previous to “Watch the Big Game in HDTV”, FutureShop.ca was running “The Best in Cool Technology”, promoting a great deal on a laptop for $699. BestBuy had not changed their message for some time, instead incorporating a Flash slideshow which cycles through various products and promotions, a possible competitive advantage over FutureShop which I will revisit.
These changes are very important, especially in the competitive electronics industry, it works to keep people informed and ensures return visits to the site to check the latest promotion.
Competitive Advantages and Disadvantages
The main competitive advantage for FutureShop.ca is the name. People will most likely choose their site first for price and product selection. These two factors are why people choose to shop on their site. FutureShop has spent years building this competitive advantage in the Canadian marketplace and it has lead to great profitability and customer loyalty. BestBuy will have to work on branding more to gain an advantage here.
Another competitive advantage is the ease of surfing their site. FutureShop offers a very user friendly interface that is not too busy or pushy and still finds ways to incorporate their many value added services such as the FutureShop Card and PSP (product service plan).
FutureShop changed their website more often as well, with 3 times in 3 weeks compared to just 1 on BestBuy.
A competitive advantage of FutureShop is the inclusion of customer reviews on nearly every product information page. The customer reviews and overall product rating from actual users of the product enhance buyer trust and adds value, making the user more likely to purchase if good reviews are displayed. Best Buy does not offer this feature.
The BestBuy site seems to cluttered and busy. Navigation bars across the top and side could be confusing to new users. They need to narrow down their options on where to click next, be more product specific, like FutureShop.
A competitive disadvantage would be that competitors such as BestBuy will match or beat the price offered by FutureShop. It often comes down to which company offers the best value added services such as warranty benefits or payment options that get the final sale.
Another competitive disadvantage for FutureShop is the customer service appearance of the BestBuy site. Best Buy prides themselves on superior customer service and believe the in store model of non-commissioned sales staff achieves this objective. This carries over to their website with a virtual “sales assistant” available to help narrow your choices to make an informed decision on an important electronics purchase. Pictures of BestBuy sales staff smiling on the home page offer a friendly attitude towards customer service and is more inviting. Although both sites offer extensive customer service information pages and product info, FutureShop is at a slight disadvantage.
As mentioned earlier, the BestBuy.ca site incorporates an effective Flash slideshow that cycles various product promotions and, in turn, the marketing messages they want to convey. FutureShop is at a technological competitive disadvantage here.
I view the FutureShop.ca website to be a superior site to that of BestBuy.ca. There are some opportunities, however, that FutureShop could adopt to make their site better rounded.
The customer service aspect of FutureShop.ca could be improved slightly. If they included a virtual “sales assistant” it may help some e-commerce “newbies” adjust to shopping online, thus making them more comfortable and leading to better conversion rates.
Another window of opportunity would be the inclusion of a Flash slideshow. Instead of showing one marketing message, the site can show multiple. The slideshow grabs attention and many customers will watch to see the show cycle through the deals.
FutureShop.ca has been an extremely successful e-commerce venture and BestBuy's introduction into the Canadian market will take some time to build brand awareness and customer trust. Although there a few windows of opportunity that FutureShop.ca could take to improve, I view them as important factors that will only help the company move forward.