Argos Identifying Customers and Meeting Their Needs Essay
In order to survive and grow in a tough and competitive marketplace, a retailer must differentiate itself from its competitors - Argos Identifying Customers and Meeting Their Needs Essay introduction. How does Argos differentiate itself from its competitors? What is (are) its competitive advantage(s) that attract(s) its customers? Argos has succeeded in differentiating itself from its competitors in a number of ways. Firstly, convenience of shopping because of the available catalogues to browse before visiting the store which are available as hard copies, in store or online. The convenience of shopping extends to provide home delivery for phone orders and online purchases.
Secondly, value for money; Argos managed to reduce its costs mainly in two aspects the first one is “no cost of display” because of the provided catalogues and e-catalogues which means no goods on display in any shop, therefore, avoid the very expensive retails spaces. The second aspect is “economies of scale” which enabled Argos to buy in bulk and by having organized distribution system managed to reduce costs. These two factors were reflected on the price of Argos products. In addition the customers’ needs are met by the availability of a very high variety of products.
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How does Argos’ mission statement reflect it competitive advantage? Argos mission clearly states that it provides best value for money and most convenient shopping experience. Argos is able to offer the customer value for money prices, because it has a low cost business model with limited product displays. In addition it benefits from economies of scale because as a popular national chain, it is able to buy in bulk and by organizing national distribution systems, is able to reduce logistics cost to a minimum. They also provide a very convenient way for customers to shop.
They are able to look through a catalogue at their leisure and choose from an extremely broad product range. The range of what is offered is not limited by the display space in-store and can be accessed in a variety of ways What is Argos’ main strategy? How does Argos implement it and achieve its objectives? Argos is striving to achieve growth, and its strategy to achieve this objective is by driving the frequency and maintaining the loyalty of existing customers. Argos has chosen the frequency of visitors (i. e. he number of time the customer visits the website or the store) to be the base of its segmentation. The following points show the different segments and how did Argos implement the strategy on them: •Segment #1,“Don’t quite get it”: customers who buy infrequently from Argos. Argos has used advertisements to let them appreciate the offered product rage and the value for money. •Segment #2, “Get its”: customers who buy regularly from Argos. Argos has increased the product range and focused on convenience to win customer loyalty. What are the social changes that affect Argos’ market segments?
How did Argos adjust its marketing strategies in response to these social changes? Argos is very keen in targeting consumers who are socially busy. To be more precise, “consumers are cash rich but time poor” and as most of the people have high level of competence in using technology, Argos therefore uses a variety of channels to communicate with consumers by phone, website and in-store. Many customers may not have the time to shop or visit the store and not being able to find their products and these multi channels relieved them from the burden of consuming long time shopping.