2008 ROY Honorable Mention: Best Buy colors merchandising Blu

Best Buy has quickly emerged as a dominant Blu-ray Disc retailer, significantly expanding title selection in the format as well as bowing an in-house high-def set-top in less than one year's time.

The chain began increasing dedicated rack space to Blu-ray titles weeks after the format formally won its battle with rival HD DVD in February. By March, several outlets were carving out space for 200 Blu-ray facings, trumping the format merchandising at most other retailers, including Target stores’ general room for less than 100 titles.

Consumers noticed this immediate Blu-ray presence and made it a habit to shop at Best Buy for their high-def format needs. This year, NPD crowned Best Buy the most popular consumer choice for Blu-ray titles, according to its regular surveying.

“Our customers have definitely responded positively to Blu-ray,” says Jill Hamburger, VP of games and movies at Best Buy. “The format war initially made it difficult for people to get excited about high-def movie content, but now that Blu-ray is the single high-def format, customers are excited about it as the way to get the most from their home theaters. We are focused on educating people about the picture, sound and extra features that Blu-ray can bring to their home.”

Additionally, the chain moved fast to launch in June its own Blu-ray set-top player under its in-house Insignia brand. Best Buy aggressively positioned it to spur mainstream Blu-ray adoption, slashing its original $349 price to $169 by December.

The chain also routinely unspools Blu-ray title discounts and promotional bundles to further push the format. In the weeks after Black Friday, when stores typically shore up profit margins by hiking price tags, Best Buy cut $10 off a wide range of Walt Disney Studios Home Entertainment titles, including the Pirates of the Caribbean and National Treasure franchises, bringing them down to $19.99. Within that same frame, Best Buy also was offering a $20 gift card with the purchase of The Dark Knight Blu-ray and the $399 Netflix-streaming Samsung Blu-ray player.

Best Buy is constantly working to improve its Blu-ray displays. The chain has started installing new Blu-ray sampling stations that help better explain BD Live interactivity. “This is the first time we have had a hardware demo in the software area, but we think it’s a great way to expose shoppers to the high-def picture that Blu-ray offers,” says Hamburger.

Blu-ray should figure into Best Buy’s long-term product strategy, as it complements other items sold at the chain. “We are very conscious about making sure customers understand that the true high-def experience involves more than the TV,” Hamburger says. “We have a commitment to make sure that customers leave the store with everything they need for the experience they want. That includes HDMI cables, Blu-ray players or PlayStation 3.” Blu-ray will keep growing as studios strengthen the caliber of films they street in the format along with additional content, she adds.