Marketing Strategy And Plan Assesment

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Running head: MARKETING STRATEGY AND PLAN
MARKETING STRATEGY AND PLAN
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1MARKETING STRATEGY AND PLAN
Part 2: Dixon Case
Answer 1
Dixons acquisition of Silo and Tipton known as the two US electrical retailers is
identified as one of the key changes in its business operations. With such an acquisition in the
year 1987, the company earned profit of around £103m. This acquisition has made great impact
on Dixon whereby it gathered valuable insights from Silo as well as Tipton’s experiences along
with the genesis of its business strategy. These lessons had successfully ingrained in the
corporate psyche of Dixons (Dixonscarphone.com 2019).
Furthermore, Dixon’s decision of rebranding has been identified as another major
transformation which the company undertook to develop its business operations. As per reports,
in 2006 after almost 70 years, Dixon quit the high street and shifted from retail to e-commerce.
Through this transformation, Dixon stores have been re-branded in the name of Currys wherein
digital as well as their product variety has extended in order to take account of larger electrical
merchandises like refrigerators and ovens. Such a major change of rebranding had successfully
magnetized traditional Currys purchasers interest in larger electrical merchandise, yet had
appealed to Dixons clients who possessed greater ideas of new technology like MP3 players,
thereby augmenting the prospects to cross-sell to both types of shoppers (Pratley 2017).
Lastly, merger of Carphone Warehouse as well as Dixons in £3.8bn has been recognized
as recent key transformation for Dixon’s business operations. Such a merger with an aim of
forming electrical retailers selling handsets to refrigerators besides delivering services as well as
support with assembly of digital merchandise has enabled Dixon to emerge as electrical retail
giant with 3000 stores and deals achieving almost £12bn (Dixonscarphone.com 2019). From

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such findings, it has been noted that such a merger has led Dixon to profit from greater
purchasing power along with additional growth opportunities as well as yearly savings of no less
than £80m within three years. Furthermore, through Carphone's Geek Squad tech maintenance
groups, Dixons Carphone intends to support road saving collections such as the AA as well as
RAC in the form of an emergency provision for the associated world (Dixonscarphone.com
2019). Lastly, as per the terms of the merger, Dixon’s stakeholders have received around 0.155
of a Dixons Carphone portion in interchange for every Dixons stake.
Answer 2
With the merger of Carphone Warehouse and Dixons in 2014, the primary aim relied on
becoming electronic super giant selling extensive range of products ranging from refrigerator and
mobile phones. Such a collective force of the two high street sellers aimed to create major
synergies related to around £80m of revenues along with an augmented purchasing influence
with major electronic suppliers with its advancement towards an end-to-end service model.
However, reports have mentioned that Dixons Carphone in future will rely greatly on post-paid
mobile sales. According to Pratley (2017), with a sale of a phone and agreement, Dixon
Carphone takes a particular portion of earnings from the provider like Vodafone or O2 that it
packages in the agreement. Although such an acquisition is seen as straight revenue, estimated as
a fraction of the contract’s value, the model recently in future will be showing certain challenges.
According to reports, Dixons Carphone in future will be facing struggle with 2016 EU legislation
that came into influence in 2017, thereby eliminating roaming charges through the bloc (Butler
2017). On the other hand, Dixons Carphone has relied significantly on the percentage of
innovation as well as phone advancements maintaining stability. However, it has been claimed if

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the company fails to maintain such stability, it might require seeking similar rate of growth in
another segment.
Answer 3
By drawing relevance to the prospective changes in the sector on Dixons, the company
will certainly aim to negotiate improved terms from network providers in order to take advantage
of more costly and luxurious handsets (Hobbs 2016). However, such a strategy has been gaining
more challenges in recent times due to the association of network providers with other Telco
syndicates into quad play behemoths. Furthermore, with the initiation of transformation, Dixons
Carphone should expect capex of c. £190 million (Retail-week.com 2019). Additionally, taking
into consideration regulatory as well as data incident costs, the company within 2020 must
foresee exceptional cash of around £100 million regulation of c. £30 million. In addition to this,
Dixons Carphone must aim to continue expanding its market share in the sectors of technology
retailing wherein they operate in the UK & Ireland, Nordics as well as Greece. Such an
expansion certainly will lead to like-for-like sales progression.

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Appendix
Dixon Carphone Shar Price 2019
Source: (Dixonscarphone.com 2019)

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References
Butler, S., 2017 Dixons Carphone warns of store closures as profits plummet by 60%. Available
from: https://www.managementtoday.co.uk/future-dixons-carphone/future-business/article/
1452540 [Accessed 11 December 2019 ].
Dixonscarphone.com., 2019 Carphone Warehouse Expands Partnership With Virgin Media To
Offer Pay Monthly Handset Tariffs. Available from: https://www.dixonscarphone.com/en/news-
and-media/press-releases/year/2019/carphone-warehouse-expands [Accessed 11 December
2019 ].
Hobbs, T., 2016 Dixons Carphone’s CMO on what it takes to succeed following a
merger. Available from: https://www.marketingweek.com/dixons-carphones-cmo-on-what-it-
takes-to-succeed-following-a-merger/ [Accessed 11 December 2019 ].
Pratley, N., 2017 Dixons Carphone: no longer a merger of equals. Available from:
https://www.theguardian.com/business/nils-pratley-on-finance/2017/dec/13/dixons-carphone-no-
longer-merger-of-equals [Accessed 11 December 2019 ].
Retail-week.com., 2019 How Dixons Carphone is melding online and offline. Available from:
https://www.retail-week.com/indicator/how-dixons-carphone-is-melding-online-and-offline/
7032165.article?authent=1 [Accessed 11 December 2019 ].