Marketing Report: An Analysis of the Argos Business Operations

This report provides a comprehensive analysis of Argos' marketing activities, business operations, and customer behavior. It begins with an introduction to the company and its role as a British catalogue retailer. The main body of the report explores the differences between customer needs, wants, and demands, using examples specific to Argos. It then delves into the marketing environment, examining both macro and micro factors affecting the business. The report also assesses the strengths and weaknesses of Argos' business operations. Finally, the marketing mix (7 Ps) of Argos is analyzed, including product, price, promotion, place, people, process, and physical evidence, to understand how Argos markets its products and services. The report concludes with a summary of the key findings and insights into Argos' marketing strategies.

Based on Argos

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Purpose of the report....................................................................................................................1
Overview of the Argos.................................................................................................................1
TASK 1............................................................................................................................................2
Explain how wants differ from demands.....................................................................................2
Using examples, discuss the needs, wants and demands of Argos customers.............................2
Task 2: Marketing Environment......................................................................................................3
Micro environment of Argos.......................................................................................................3
Strengths or weaknesses of Argos business operations...............................................................4
Task 3:..............................................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
A Business is defined as the activity of making money by produce the new and innovative
product and service to the customer by exchange of money (Biech, 2019). Thus, many
entrepreneurs enter the new market for the purpose of generate huge revenue and profitability.
Therefore, business includes the work related activity such as production, buying, and selling of
goods or services.
The present report is based on business of Argos Ltd. is a British catalogue retailer
operating in the United Kingdom and Ireland, and a subsidiary of Sainsbury's. Thus, report will
cover the different business activity such as overview of Argos, describe needs, wants and
demands, marketing environment including macro and micro factor. Lastly, report will explain
the marketing mix of Argos.
MAIN BODY
Purpose of the report
The main purpose of this report is identified the marketing activities of the Argos. Thus,
this report describe the overview of Argos to identify the business activities that which types of
product they sale in the market. The purpose of this report is identified the macro or micro
environment of the firm to analyse the external or internal opportunity and threat for the firm
(Carvalho and Grassi, 2019). Further, the objective of the report is identified the needs, wants
and demand of Argos customer so, firm make the product according to the requirements of
customer. Moreover, report will describe the 7 ps of Argos to identify the key issues that effect
the marketing of its products and services. The purpose of using this tool is to satisfy customers
in your target market.
Overview of the Argos
Argos Ltd, it is the British catalogue retailer. Thus, firm sale the variety of household and
personal product including jewellery. Argos provides their product on printed catalogues, they
not display their items, customer choose the product through printed catalogues and make order
in stores (Gölgeci, Karakas and Tatoglu, 2019). Customer makes The order on sales counter,
where a clerk retrieves the items from the warehouse area to a payment and checkout station.
History of Argos
The company was established in 13 November 1972, the founder of the firm was Richard
Tompkins who had previously established Green Shield Stamps in the United Kingdom. Thus,
1

he came up with new and innovative ideas that customer purchase the product with cash not use
the saving stamps from his green shift green house. In 1990, the company was de-merged with
bat industries and listed on the London stock exchange (Jaimovich, Rebelo and Wong, 2019).
Than Gus PLC was acquired firm in April 1998. In October 2009, Argos changed their logo and
visual branding. Thus, in 23 January 2010, firm relaunch the shopping website, and a new logo.
In In April 2016, Argos' parent Home Retail Group agreed to a £1.4 billion takeover by
Sainsbury's. The acquisition was completed on 2 September 2016. A large number of high street
and retail park shops have since closed and moved into a nearby Sainsbury's shop. Some shops
used to be located within a home base store.
TASK 1
Explain how wants differ from demands
Customer is the most important for very firm because they are the key of successes of the
business, thus, customer purchase the product so it helps to firm for generate the revenue.
Therefore, the needs wants and demand is impact on the productivity of the firm. Thus, high
demand means is satisfied the needs and wants of customer and low demands means this product
is not satisfied the customer.
The basic different in wants and demands which is customer desire to purchase the
product, but they not purchase due to high prices so the demand of product is affects
(Laothamatas, 2019).
Want — A want is required to sustain life consumer desired to buy a good or service.
Demand — Demand is the quantity of a good or service that a consumer(s) is willing and able to
buy on a different price.
Using examples, discuss the needs, wants and demands of Argos customers.
Argos find that the demand of new product is increased day by day, so they offer the new
product with innovative strategies which attracts customers easily. In starting Argos has makes
the different catalogues it helps to establish a very strong trust among customer related to brand
Argos firstly offer the toys and small electrical appliances in the UK's it is a number one retailer
firm. Then after some times Asrgos major works on making jewellery they enhance their
presence in different market segments including DIY and gardening, furniture, electronics and
the major market share in jewellery and sports equipment. Thus, to satisfy the needs of customer
Argos launch a multi-channel approach to shopping for the customer as to satisfy the customer
2

Argos publishes two catalogues in a year, in January, the spring/summer edition and in July, the
autumn/winter catalogue (Maunder, 2019). Thus, this strategy helps to attract the customer as
well as Argos use the low prices' on their product so the demand of product is also increased.
Thus, Customer easily purchase the product and satisfy their needs and wants.
Task 2: Marketing Environment.
Macro environment of Argos
Social factor — this factor describes the beliefs and attitudes of customer, it includes the
education level, living of standards, culture, attitudes, nature of the society etc.
To analyse the Social factor the nature of society consider as analyses. The Buying behaviour of
society is changed also when they purchase the product they more aware about the quality of
product. Thus, Due to a variety of social changes, firm need to changes in their strategies that
helps to meet the needs of customer, the current trends indicate that customers in the UK have
moved towards bulk shopping and one-stop shopping so Argos improve their operation and
process to provide the goods on timely (Stock, 2019). It helps to organization for increase the
demands of product by adopting the changes of society.
Environmental factor — Different countries have variety of norms or environmental standards
that can impact on the profitability of organization. This factor induces the Weather,Climate
change, Laws regulating environment pollution, Air and water pollution regulations in Oil & Gas
industry, Recycling.
To analyse the environment factor the laws regulation environment pollution consider for
analyses. Thus, Argos follow the environmental laws to manage their operational activities, they
do their business to as an ethical and sustainable manner that positively impact on their
profitably because government and society trusted, and they support the business it increases the
profitability of firm.
Micro environment of Argos
The Two competitors of Argos is Threat of New Entrants, Threat from Substitute Products
Threat of new entrants — New entrants is consumer goods is affects the performance of Argos.
Thus, the new firm makes the innovative product also they use the different pricing and
promotional strategy to attract the customer is affects the demand of Argos. Thus, to compete
with new entrants Argos makes the innovating new products and services. New products not
3

only attract new customers also attracts the existing customer for a reason to buy Argos product
also firm follow the low pricing strategy to increase the number of customers.
Threat from Substitute Products — When a new product or service meets a similar customer
needs in different ways, it suffers the profitability of Argos (Van Diermen, 2019). Thus, to
compete with substitutes product Argos use the unique strategy they make the high quality
product to improve their service as compare to their rivalries.
Strengths or weaknesses of Argos business operations
Organization resources — This is the internal environment factor, the resources of Argos is not
high because firm not invested their money in resources as they follow the low pricing strategy,
so they maintain their operational cost but it creates the negative impact because the competitors
use the high resources so the quality of product is much high of competitors (Walsh, 2019).
Thus, it is the biggest threat for the firm.
Capabilities — The capabilities is another internal factors, through high capabilities of work,
firm expand their business in all over the world, This, it is the strength of the firm because
through high capabilities among the services and employees work it helps to lead the profitability
of the firm.
Thus, Organization resources is the threat for the firm because firm are not invest their
money to purchase the new technology or new resource. Thus, to expand business firm need to
invest their money in purchasing the new resources. On the other hand, internal capabilities is the
strength of the firm like, motivate employees, planning process, marketing activities, this all is
the best so it is the capabilities of the firm, Thus, These all applicabilities is the biggest strength
of the Argos.
Task 3
Marketing Mix
Marketing mix is the tool of analyse and identify the market activities. It is refers to the set of
actions, or strategies, that a organization used in the business promote its goods and services or
product in the existing and new market. There are 7 PS of marketing mix — price, product,
promotion and place, People, process. Physical evidence.
Product — Argos is one of the branded retail firm based on UK. Thus, the product of firm is
provide the consumer goods to the customer, firm produce the different catalogues according to
4

current trend and produce catalogues in twice a year around the 1600 pages the price of product
is included in the picture with brief description about the product.
Price — The pricing strategy of Argos is penetration pricing strategy generally firm sales their
product on low prices. Thus, to maintain this pricing strategy Argos build the relationship with
suppliers that they provide the raw material on low cost so, firm sale their product on low cost.
Promotion — The promotional strategy of Argos is that they use the best strategy to attract the
customer towards the product and services (Jaimovich, Rebelo and Wong, 2019). Thus, firm
used the direct advertising that means the firm advertise their product on newspaper and TV also
firm publish ads on social media, print media, banners etc. For example, firm advertise their
product on TV through effective tag line of ads is “the get it's and don't get its”. Further, firm
also promote their product through word of mount it is less expansive because it helps to firm to
maintain their low cost pricing strategy.
Place — Argos has around 850 stores scattered all over UK and Ireland. Firm sale their product
through online and physical shops (Laothamatas, 2019).
People — The strength of employees is around 30000 including all channels. Thus, the
employees is the bets who have high knowledge and experience about the work, the employees
are works on market research to make the innovative product in order to satisfy the customer.
Process — Argos provide the variety of catalogues feature to the customer with short
descriptions along with prices of the products. Thus, firm use the online process to sale their
product so, customer place their order either over phone or online websites, the order goes to the
seller who then confirms it (Walsh, 2019). Then the delivery process is safe customer receive
their product through Currier service. On the other side, firm also provide their product through
physical shops customer purchase the product on the shops.
Physical evidence — The catalogues of Argos is effective that represent the brand of Argos, this
catalogues is attracted the customer.
5

CONCLUSION
From the above project report it can be summarized that business is process of success
the carrier of entrepreneur. Thus, this is the set to tool every person makes the product and
services to earn profit in the form of business.
This report based on business of Argos. Thus, report has described the brief history of
organization. Furthermore, assignment has described the needs, wants and demand of Argos
customer in order to enhance the demand of product. Moreover, report has explained the micro
or macro factors that helps to firm for identify the opportunity and threat in order to enhance the
probability. Lastly, report has examined the 70 ps that helps to firm for identify the target market
and performance of firm in target market.
6

REFERENCES
Books and Journals
Biech, E. 2019.The New Business of Consulting: The Basics and Beyond. John Wiley & Sons.
Carvalho, V.M. and Grassi, B. 2019. Large firm dynamics and the business cycle. American
Economic Review. 109(4). pp.1375-1425.
Gölgeci, I., Karakas, F. and Tatoglu, E. 2019. Understanding demand and supply paradoxes and
their role in business-to-business firms. Industrial Marketing Management. 76, pp.169-
180.
Jaimovich, N., Rebelo, S. and Wong, A., 2019. Trading down and the business cycle. Journal of
Monetary Economics. 102. pp.96-121.
Laothamatas, A. 2019.Business associations and the new political economy of Thailand: From
bureaucratic polity to liberal corporatism. Routledge.
Maunder, W.J. 2019.The uncertainty business: risks and opportunities in weather and climate.
Routledge.
Stock, J.H., 2019. The business cycle is alive and well.Business Economics. 54(1) pp.79-84.
Van Diermen, P. 2019.Small business in Indonesia. Routledge.
Walsh, D. 2019. Heavy business: Commercial burglary and robbery. Routledge.
Werhane, P.H. 2019. The normative/descriptive distinction in methodologies of business ethics.
In Systems Thinking and Moral Imagination (pp. 21-25). Springer, Cham.
7