Analyzing the Marketing Environment of Argos

This report analyzes the marketing environment of Argos, including the needs, wants, and demands of customers, social and environmental factors impacting the business, competitors, internal strengths and weaknesses, and the current marketing mix.

Running Head: Marketing
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Marketing and communication
6/27/2019

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Contents
Introduction.................................................................................................................................................2
Task 1..........................................................................................................................................................3
Explain how wants differ from demands.....................................................................................................3
Using examples, discuss the needs, wants and demands of Argos’ customers............................................3
Task 2..........................................................................................................................................................4
Identify and discuss one social and one environmental factor that could impact Argos’ business
operations....................................................................................................................................................4
Identify two key competitors and discuss their potential threat to the business...........................................4
Identify and explain two (2) internal environmental factors that could be considered as strengths or
weaknesses of Argos business operations....................................................................................................5
Task 3..........................................................................................................................................................6
Using the 7Ps of marketing, Identify and describe Argos’ current marketing mix......................................6
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9

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Introduction
The report is prepared so that the marketing environment of Argos retailing company can be
analyzed. The main purpose of this report is to analyze the market factors which affect the
business operations. The report will also put the major focus on the 7Ps of Argo’s marketing.
The needs demands and the wants of the customers are analyzed so that more profit can be
achieved. There are many social and environmental factors that affect the Argo's business
operations which will be explain in this report.
Overview of the company
Argos is the subsidiary of the Sainsbury which is operating the catalog retailer in Ireland and the
United Kingdom (FIDM, 2014). The company has a huge number of customers as they are
operating in the physical shops and online marketing with over the 845 retail shops. The
company also has the franchise in overseas of the country such as in China. The company was
established by the Richard Tompkins on 13 November 1972. He was the founder of the Green
Shield Stamps scheme, who has rebranded this catalog shop as the Argos. In 1979 the company
was purchased by the BAT and it was also listed on the London stock exchange. The company
was taken by the supermarket chain Sainsbury in April 2016 and later on, it has named as
Sainsbury Argos and the functions are operated by the chief executive of the company (Lopera
and Esteban, 2013).

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Task 1
Explain how wants differ from demands
Need is something which is needed to survive properly and want is something you needed or
required for better survival. Demand is something which the customers are able to buy because
they want or need it and the wants the desirable product which is transforming into demands
(Dragnić, 2014). The desire of the good and services of the catalog is the want but if want of the
customers is converted into the ability to buy then it is demand. Wants are the desires of the
customers which they can buy or not but the demands are the commodity which is requested for
the purchase. Wants are based on the preferences, living standards, satisfaction and the quality of
life but the demand depends upon the two factors which are ability and willingness.
Using examples, discuss the needs, wants and demands of Argos’ customers
Argos provides the consumer goods as it is the British catalog retailer company which is
operating their function in Ireland and the United Kingdom. As there are many needs the
customers have nowadays so they do the shopping through the town centers and through the
online networks which deliver their products at home. The need of the customers of the Argo’s is
that the business sells through all the channels so that it becomes easy for them to purchase the
material (Kornuni and Bjerre, 2015). The basic needs of the Argos customers are that they need
delivery on time when they order the goods and services from the internet. They also want the
shopping centers should be available at the out of town also so that it is easy for them to
purchase the products. Customers’ need is that if any issues arise in the company then it should
be sorted and they want the unique budget so that they can purchase the products.
The customers of Argos want that the company should collaborate with them and listen properly
to them and make a good conversation while selling the product. In the online procedures, the
wants of the customers are that the delivery should be made early and the product should be
accurate. The customers want the goods and services offered to them is of high quality. The
demand for the customers of Argos is that they demand good services and meeting the inventory

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(PHILLIPS and CLEWS, 2013). The customer’s demands that the salesman in the shops should
attend then properly so that they can willing to but the product.
Task 2
Identify and discuss one social and one environmental factor that could impact Argos’
business operations
There are many social and environmental factors that affect the Argo's business operations such
as buying habits, lifestyles, religion, and beliefs, etc. The change in emerging technology,
government policies, inflation rate, and market fluctuations affects the business. The major social
impact has been seen in the change of the lifestyles of the people. Argos company is the catalog
retailer so the guess what the people demand is quite difficult. As different people have different
preferences so the lifestyles of the people affect the business operations. The lifestyles of the
people are rapidly changing so when the company provides the employees the things they
wanted, the company achieves higher profit (Dahnil, et al., 2014).
The environment factor that affects the Argos business operation is the market fluctuations. As
the market is changing rapidly so their many fluctuations have been seen which affects the
business. There are many things in the market which affects the economy such as interest rate,
inflation rate, etc. If the interest rate is falling then the growth can be seen in the business but if
the interest rate is higher than the borrowing cost will be higher and it affects the business
(Sparks, 2010).
Identify two key competitors and discuss their potential threat to the business
The major competitors of Argos are the Tesco and supermarket24. These two competitors have a
large market share and they have a great impact on the profitability of the company. As they are
serving the same products and they are dealing with the same customers of the market so it
becomes a threat for the company to attract the customers. As the competition is higher so the
customers demand more innovative and creative products and they want the improvement in the
services (Ibrahim and Wang, 2017). So it becomes challenging for the company to fight against
its competitors as they are bringing new products with the innovation. Another threat is of the

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substitute as they attract the customers from the main market and convince them to buy the
products from their shops also which affects the business at the large level as the profitability of
the company is declining.
The pricing is another threat as the competitors of Argos sell the products at the lower rates so
that customers can attract. The price war is there among the competitors as some are charging
higher prices and some are charging lower prices so it affects the business at a large scale.
Another threat is of the profitability as when the competition is higher in the market the profit of
the company declines and Argos is facing this problem. The sales of the company decline when
the competition is higher and it results in declining the profit so, it is the potential threat for the
company (Reynolds, 2017).
Identify and explain two (2) internal environmental factors that could be considered as
strengths or weaknesses of Argos business operations
Strength: Two internal factors that are considered as the strength of the company are the famous
brands and the huge working force. The biggest strength of the company is that they own the
biggest brands such as the Alba, Elizabeth Duke, Bush, etc. These brands are generally buying
by a higher class of the people so this is the reason the company earns the huge profit. These
brands are generally demanded by the people so online services are offered so that the largest
retailer of the goods can be done from the company. Strength of the company is that they have a
large number of the working force with the employees of more than the 51000 so it is helpful for
the company to manage their operations properly (Barlow, et al., 2014).
Weakness: Two internal factors that are considered as the weakness of the company are the
controversies among the employees and the lesser presence of the other retail chains. Some
employees enter in the controversies which creates the problem for the company such as working
for the Sundays in the stores are essential as most of the people buy at the weekends only so it
affects the business. Not only this but there are over 845 retail shops which are offering the
services but it is difficult to manage all the stores less presence has been given to some of the
retail chains (Gumusluoğlu and Ilsev, 2019). Some retain shops are at the center of the market so
it was easily approachable by the people but some of the stores are not approachable by the
people so it also affects the business in a negative way.

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Task 3
Using the 7Ps of marketing, Identify and describe Argos’ current marketing mix
Product: As it was one of the leading chain markets of the UK and they produced twice a year.
The products sold by the company have pictures of the items and carry a certain description such
as the price, detail of the product and the catalog number. In the year 2018, the logo of the
company has changed and more colors are added on that and the variety of the products is being
served (Rajasekar, 2014).
Price: The low prices are provided by the company. The management team of the company
provides the low price of the DVDs and CDs which strengthen the company. The product of the
company has a lower cost because they maintain the relationship with the close suppliers. The
products offered in the UK differently price than the products of Ireland (Lin, 2013).
Place: The catalogs of the company are available at both online stores and at the physical stores.
So it is a convenient way for the buyers to purchase the materials. There are over 850 stores in
Ireland and the UK and they are selling the product at the different levels of the market. The
catalogs of the company are been used in over 75% of the households (Chaffey and Ellis-
Chadwick, 2019).
Promotion: The Company basically relies on the good promotional strategy in which they
ensure the offers and the details of the products. Direct advertising has been the most usable
source of promotion for the company. The company also does advertising campaigns and
sometimes does the promotion through the word of mouth. As they are providing services to the
customers so they also do the promotion through the online stores, print media, social media, etc.
People: There are many employees who are working in the Argos Company across their entire
channel. The company has many stores so they have around the 3000 employees and there a lot
of the employees is working on market research (Zentes, et al., 2017). The environment of Argos
is very friendly so they have the old employees who are aware of their products.
Process: The processing of company is very easy when once the order is made then it cannot be
denied and it is considered as confirming whether the order has been placed from the online store

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or from the retailer shop. When the order is confirmed then it goes with the seller who confirms
it. The delivery of the goods can be done from any source which is fast and safe.
Physical evidence: The catalogs of the company are used in every household and they have been
used for the decades so the company is providing the option of the window shopping. The
company is providing home services to their old customers (Guayllas, et al., 2018).

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Conclusion
From the above report, it is concluded that marketing communication is very essential in the
company as it delivers the products effectively to the customers. If the marketing skills will be
proper than the company Argos can increase their sales, profit and also achieve higher growth.
The elements of the marketing have been explained which clearly states that there are various
factors which affect the business operations. The internal and the external factors of the company
have explained which were impacting the business. the report has clearly stated the difference
between the demand and the wants, demand is something which the customers are able to buy
cause they want or need it and the wants I the desirable product which is transforming into
demands. The 7Ps of the marketing mix are stated through which is clearly stated that the
products sold by the company is at the lower price and they are offering the services at many
stores. The company has huge competitors in the market but they are offering the lower prices
and highest brands so many customers get attracted towards them. The company is offering the
services at both online store and the physical stores so it also helps in achieving the higher
profits.

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References
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communication technologies for retail marketing channels. International Journal of Retail &
Distribution Management, 32(3), pp.157-163.
Chaffey, D., and Ellis-Chadwick, F., (2019) Digital marketing. London: Pearson UK.
Dahnil, M.I., Marzuki, K.M., Langgat, J. and Fabeil, N.F., (2014) Factors influencing SMEs
adoption of social media marketing. Procedia-social and behavioral sciences, 148, pp.119-126.
Dragnić, D., (2014) Impact of internal and external factors on the performance of fast-growing
small and medium businesses. Management-Journal of Contemporary Management
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FIDM, D.R., (2014) Figaro digital marketing conference. Journal of Direct, Data and Digital
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