Service Marketing: A Case Study of Argos

This report discusses the service marketing strategies of Argos, a leading online retail chain in the UK. It includes an analysis of the SERVQUAL model and recommendations to improve the marketing mix to enhance customer value. The report also covers the company's product range, market size, and customer segments.

SERVICES MARKETING

Table of Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
1.0 Summary of service context..............................................................................................................3
3. Analysis of service quality..................................................................................................................4
RECOMMENDATIONS.............................................................................................................................6
CONCLUSION...........................................................................................................................................7

INTRODUCTION
Service marketing is one of the crucial concepts which focuses on the business of
intangible goods. In the current era, competition in service providing industry has reached at
peak level which requires firm to be prompt in developing effectual related marketing tactics.
The current report is based on Argos which is one of the major online retail that provides
consumer goods. Argos is subsidiary of successful supermarket chain Sainsbury. The current
report will include information regarding nature, type, market size , customers, etc. It will
involve SERVQUAL model for assessing the detailed information of specified organization.
Recommendations to improve marketing mix to enhance customer will be included in report.
MAIN BODY
1.0 Summary of service context
Argos Limited is basically into catalogue retailing and is one of the leading retailers in
UK. It offers 33000 products available for purchase via websites, mobile, telephone, and 740
physical stores. Argos is a large size organization having number of employees over 29768. The
company trades both physical and online with approximately 26mn customers yearly and also a
billion visitors online per annum. Argos have positioned itself in the market amid various
categories like online market presence in the UK which is highly competitive in nature and is
also ranked 2nd after Amazon on the digital or online presence (Camilleri, 2018). In terms of
traffic received, Argos comes in the top 10 sites which receives 7.5% of the traffic. In terms of
the customer group, Argos has adopted demographic approach which actually represents the
every member of the society, that is, there different income group of people which involves the
high and low within the society and each having different needs about the product. In addition to
this, people of different ages and choices for both men and women are also incorporated into
customer segment which is very important for the organization before bifurcating it into various
segments.
The main objective behind the strategy of market segmentation is to fulfil the
requirements of each and every customer. It does not matter to the company whether the person s
rich or poor, education, or gender. It has created a well-balanced market segment for its service

and target. In terms of targeting, Argos have recognised that its different customer segments are
having varying needs and preferences. The target approach used by Argos is differentiated
targeting which helps the customers to make difference between the services provided by Argos
from its competitors (UddinAhmed, Mazid and Ahmed, 2020). Argos targeting makes it value
reliable for its customers through the way of providing valuable services to its customers who
makes purchases from it. It works on ensuring each and every requirement of the customer is
fulfilled. It is also using the latest technology which supports it in providing high quality services
to its customers as it results into carrying out effective communication with its customers and
helps in resolving the issues faced by them (Argos UK Retail Spotlight. 2021). On account of the
positioning, Argos makes use of the multi-channel along with the value-oriented merchandise. It
offers highly competitive customers with its positioning features such as promotion, distribution
etc. The infrastructure benefits helped it in gaining higher revenue for which the company had
spends capital in further improving its stores and creating a position in the market. Thus, Argos,
has effectively handled the company from the perspective of the services it provides to its
customers which has all together has assisted it in acquiring a good market position.
3. Analysis of service quality
SERVQUAL model is one of the most systematic procedure for evaluating quality of
company’s services. Argos as being subsidiary type of organization provides on & offline
services to its targeted segment in retail industry. There are five dimensions on which this
specific model focuses in order to provide appropriate analysis which comprises reliability,
assurance, tangibles, empathy and responsiveness (Azhagan, Gangadharan and Madhanrajan,
2021).
Tangibles
This is concerned with physical facilities, personnel, communication, equipment with
which an individual get connected. Argos as being operator of retail sector comprises personnel
who are distinct according to their job roles like handling customer, billing, solving queries, etc.
These play important role in deciding the quality in terms of appearance, cleanliness, etc.
Tangibles as well comprises the information regarding equipment that organization uses digital
payment systems, inventory management tools, etc. to offer smooth processing of company’s
online as well traditional stores more effective. In respect of communication pattern taken into

consideration includes newspaper articles, social media tactics for giving details of discounts.
From the evaluation it can be articulated that Argos tangible facilities are rated good as per the
online reviewing sites.
Reliability
Its is related with assessing the details regarding the reliability of Argos in terms of
ability to provide committed service accurately, on time and credibly. This helps in assessing
that Argos is effectively accomplishing the promises made to customers (Cui, Tang and Gu,
2021). Providing appropriate service quality can be assured by checking company’s reliability
factor. Argos employees make sure that customers are properly getting products by suggesting
them according to prevailing budget, taking feedbacks, etc. All such practices are exerted via
participating in social events, etc from the evaluation it can be interpreted that Argos does not
take any relevant action to overcome problems of its clients that questions its quality of services.
Assurance
It is the courtesy, knowledge and ability inspire confidence & trustworthiness among
customers. This play significant role in influencing this particular dimension of SERVQUAL
model . in addition to this, the reason behind having appropriate assurance is to make sure that
Argos employees have required capability to proper provide information related with offerings.
The specified organizations assurance is found to be effectual as its subordinates have required
level of knowledge, skills, etc to politely help its targeted audience. Argos’s employee shave
the social cohesion information that aids in building positive scenario to have articulate that there
is presence of prosperity of building trust & confidence.
Empathy
In the current era, empathy is highly appreciated as it is associated with paying individual
attention on customers for providing assistance in meeting their requirements (Ahmed and et.al.,
2017). This is major contributor of having success in form of quality services as this crucial
creates and affects customers’ review regarding the company. Argos as being subsidiary type
of firm which provides personal attention to its clients in terms of recording feedback,
recommending suitable type of products, etc.

Responsiveness
This is willingness & prompt behavior of organization for providing assistance to its
customers so that they can accomplish their specific need. Argos responsiveness is not that
much prompt & effective to help its customers. It largely influence its quality service in adverse
manner.
RECOMMENDATIONS
Argos can make its strategy based on 7Ps and improve its marketing mix and enhance value for
the customer. The 7 P strategy which Argos can follow is:
Product strategy of Argos
Argos is a leading retail chain brand based in UK. As Argos has introduced new product range in
21st century, it should monitor on the new product popularity among customers and performance
of the same. The new products to be monitored are refrigerators and furniture (Chaffey and
Smith, 2017).
Price strategy
Argos has been the one which has kept pricing strategy on low prices. It can be recommended
that Argos keeps regularly in touch with suppliers for availing lowest costs so that selling prices
can be kept lowered. Work given to regular suppliers will keep them attached with the company.
Place and distribution strategy
The catalogues of Argos give product description and are in physical presence to a major part of
the households. It can be also done in online form now to catch attention of people surfing online
and make a customer segment out of them (Jobber, 2020). Secondly, new stores being opened in
different countries have to be studied for culture and shopping habits present in people there so
that company does not suffer loss.
Promotion strategy

Argos has promotional strategy for making aware of customer about the offerings. The source of
promotion can now be turned to more of online as it takes lesser money to do it and secondly,
through increase in smartphone usage can increase awareness of products to a large segment.
Also, social media engaging of customers can be done with company taking up relevant issues
influencing public life and recommending solutions and support for the same.
People
Argos has employment to around 30000 employees. It can be recommended that employees
work on market research for staying updated with product range and new varieties upcoming.
The company can make a policy of hiring locals where it opens new branches in different
countries so the locals are versed with the products in demand of that country (Jobber, 2020).
Process
Argos has catalogues over which the orders are made online and the shipment is made ready for
the goods. The service can be made online 24*7 by use of chatbots and orders can be taken up.
This will help in avoiding of the orders going missed and will also enhance customer support.
Physical Evidence
Argos catalogues have been used for decades in households and thus, they act as a direct
interface for the company and the catalogue can be made attractive for the company. It can come
of use for the customers who are new and this will be having a positive effect for the company.
CONCLUSION
It can be summarized that in the report organization products and services were talked about. The
organization various product categories and its presence in different locations was discussed. The
analysis of services by the organization was done with speaking of various factors associated.
The recommendations were given in which 7Ps of the company were spoken about and their
details were given of present marketing mix and how they can be improved. The effect of these
recommendations can help in improving customer experience and also help in expansion of
business.

REFERENCES
Books and Journals
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SAGE Publications: SAGE Business Cases Originals.
Azhagan, C. T., Gangadharan, S. and Madhanrajan, U., 2021. Computational analysis for service
quality determinants in retail sectors using SERVQUAL model. Materials Today:
Proceedings.
Cui, Y., Tang, H. and Gu, Z., 2021, July. The Evaluation Framework for Wearable Devices
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Computer Interaction (pp. 11-18). Springer, Cham.
Ahmed, R. R. and et.al., 2017. Modified SERVQUAL model and effects of customer attitude
and technology on customer satisfaction in banking industry: mediation, moderation and
conditional process analysis. Journal of Business Economics and Management. 18(5).
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Chaffey, D. and Smith, P.R., 2017. Digital marketing excellence: planning, optimizing and
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Jobber, D., 2020. Selling and sales management.
Online
Argos UK Retail Spotlight. 2021. [Online]. Available Through:<
https://www.similarweb.com/corp/blog/conversion/ecommerce-intelligence/online-
retailers-uk-spotlight-argos/>.