Analyzing Argos's Marketing Strategy: A Comprehensive Report

This report provides a comprehensive analysis of Argos's marketing strategies, examining its core activities and approaches to attract and retain customers. The introduction highlights Argos as a catalog retailer acquired by Sainsbury's, emphasizing the importance of effective communication strateg...Read More

Report

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analysing the effective marketing strategy in chosen organisation............................................3
Examining STP strategy..............................................................................................................5
Evaluating the marketing mix on 4Ps for product and 7Ps for services .....................................6
Assessing relationship marketing strategy on current tactics......................................................8
Recommendation.........................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing strategy refers to business plan that aim to attract the consumer and turning
them into customer of their products or services. This revolve around company's value
proposition and it is ultimate goal to communicate sustainable competitive advantages over rival
companies (Braciníková and Matušínská, 2017). Argos organisation has been chosen in this
report, is a catalogue retailer operating in United Kingdom and Ireland, which is acquired by the
Sainsbury's supermarket chain in 2016. Effective communication strategy is very important part
of organisation to increase their business profit and assess the benefits to the company.
Analysing the Segmentation, targeting and Positioning has been studied and this report and
currently applying in firm. Discussing different marketing mix focusing on 4Ps for product and
7Ps for services that is chosen in company and evaluating relationship marketing strategy with
the importance on current tactics.
MAIN BODY
Analysing the effective marketing strategy in chosen organisation
Marketing strategy is core activity which is actively execute by the company and leads to
promote their products and services and leads to increasing in the profit. This is used differently
companies to collaborate with their customers which make them engage in focusing on target
population. In the Argos, theses strategy were used to attract the buyers for longer period of time
and that leads to improve their business scale (Blythe and Martin, 2019). They are generally
focus on satisfying the customers with best quality of experiences and that makes them engage in
store. Following are the strategy are as follows and their effectiveness are as follows-
 Paid advertising- This refers to many ways in marketing and involves different
approaches like TVs, Print media advertising. The best example is internet marketing
which is well known and involve various methods like PPC (Pay per click) and paid
advertising. In the chosen company, this method might proof as effective marketing
approach that will help in targeting group of customer at bigger level and make them
engage in the store. This method become very effectively after increasing of digital
awareness as everyone is access mobile internet. This is cost effective method also as it
does not require much money to spend on.

 Relationship marketing- This type of marketing is basically focused on customer
building and improving relations with them for long time (Bridges, 2020). This is very
effective method that become very important to deal with many circumstances were they
could face inefficiency in the management and this method will help to retain the loyal
customers. This strategy is used by many companies on their different levels as their
main aim is to improving customer loyalty and foster overall growth in organisation. In
the Argos, this strategy is useful to enhance the relationships with existing customer and
also to build new one with other buyers as well. This will proof as beneficial strategy in
recent times as this become important to improve the reputation of company among
buyers and more attracted towards them.
 Word of mouth- This types of strategy involves and relies on what impressions that they
leave on people through their products and services. Customhouse usually get attracted
towards their quality and this could be increases by the hearing the name from other good
about their services. This traditionally and most important types of marketing strategy
and still has its own importance and benefits. When an organisation give quality products
to customers then they will likely to promote their goods and services. In selected
company, this strategy is very effective as this does not need any money and time to
promote their products apart from delivering quality services to them (Chernev, 2019).
This foster the publicity of goods and services of firm and gives positive results to them
for longer period.
 Internet marketing- This is also known as cloud marketing which usually done over
internet and all marketing items are shares on internet and promoted in various platforms.
This consist of multiple approaches like Digital marketing, Email marketing and Social
media marketing. These are all types of this method and growing rapidly nowadays as
many big companies are becoming online and start their full-time business activities over
there. These methods are very effective and widely accepted by consumers as they
everyone has smartphone and knows hoe to use it. This reform is observed by all
companies and start promoting their business on this different platforms. In the context of
Argos, they were also actively using this method to promote their products and make this
profitable to the firm. Company is using this method in very effective manner and
formulate certain strategies and tactics to sell their products widely in market (Veličković

and Đuričanin, 2020). This is also cost-effective that does not require much money and
efforts all this need is appropriate knowledge of doing marketing over this platforms.
 Transactional marketing- Sales is most challenging task that is done by companies to
persuade the customers to buy the products and services. Even for big firm this has
always been tough to target the high volume target (Cooper, 2020). In this type of
strategy they use certain tactics to encourage the customers to buy shopping coupons,
discounts and huge events which increases the chances of sales and motivate target
audiences to purchase the products. In Argos, this strategy helps to develop the interest in
customer after offering the attractive coupons and different tactics and will grab their
attention. This strategies is useful in competitive environment where everyone is indulge
in attracting the target customers.
Examining STP strategy
STP is effective marketing tool that has three factors Segmentation, Targeting and
Positioning and this strategic approach in modern marketing will help in promoting the brands.
This is most widely and commonly applied marketing models in practice as this is useful in
creating marketing communication and develop relevant message for audience. In the Argos, this
tool is efficiently used by the firm to make effective marketing strategies and tactics. As, this
leading British company which deals in retailing and for that they need proper marketing
strategies and to achieve the goal it is necessary to create the STP process effectively. Following
are the ways through which they conduct this tool in this way-
 Segmentation- This process of choosing the right segment of market is difficult one as
they were specialist that is working at company to decide and identify which sub-group
of market they want to deliver their services. In the Argos, the conclusion that is made
that they will not serve only particular category of people like rich, poor, male and
female. They will provide products to all kinds of groups of population together and want
to make them satisfy them no matter who is using that (Eng, 2017). This will improve
the chances of greater purchasing power as they were not depended on single market
segment.
 Targeting- This concern with strategy that will help in target the group in which they are
focusing on and accordingly make the strategies and tactics after analysing needs and
requirements of concern group. In the Argos, they target household category and that

include the age 25-64 without kids/ dependent kids. This is chosen because of higher
buying power and they have taste for products and other might perceive as luxury
products. They were focusing on three major psycho-graphic needs such as Pleasure
seekers those want entertainment movies and concerned image and sound. Functionality
seekers who were looking for what is happening in economy and globally. Argos, is
basically concern with household group and promoting their goods and services
according to that category.
 Positioning- They positioning themselves as niche marketing and it is difficult to
understand individual customers and their preferences (Haywood, 2019). Offering the
customized products will lead to certain benefits as they will come back to same store
and because of each customer is essential for the company. Argos, is delivering its goods
in advance and developed stores and that make more attractive for new customers. They
also find their customers by making special and attractive offers that is build on their
previous purchase. This is happened because of high planning and organising of certain
activities and for retail companies, positioning themselves is quite tough task as they
were dealing in many groups and category. Chosen company has put the example in
market that retail organisation also can think about starting their business in niche market.
Evaluating the marketing mix on 4Ps for product and 7Ps for services
Marketing mix in 4Ps for product is widely by many company to formulate the effective
marketing strategies and will be very useful in conducting certain functions and activities. In the
Chosen company, this tool is properly used by their management to make their business in
profitable and increases their growth. Following are the ways through which they use this tool
for products-
 Product- Company has widened its product range which increases to 2400 product line
to nearly 12000 which shows massive growth in their business activity and that leads to
improve their growth in overall status. They have moved further to furniture and white
goods such as fridge as well as services like pet insurance (Malhotra, 2018). They were
well known in the market due to their services and quality they offer to its customers and
it is notices that almost 70% of the population shop at Argos.
 Promotion- Company used advertising to attract different market segment and not just
traditional but also in terms of brand awareness. Their recent one has two characters such

as- an ageing rock-star ( a don't get it) and his personal assistance ( a 'get it'). In this
campaign they introduce 'don't get it' to wide range of Argos products and resolve all
purchasing problems. The marketing tactics designed to promote more modern pictures
for business, to attract the 'don't get it' spend and reinforce the loyalty of 'get its'. In the
year 2003, television adverts won Retail Week marketing campaign of the year an 'Retail'
category in marketing week effectiveness awards 2003. This shows that company is
effectively using this tool to spread the awareness among customers.
 Place- This refers where company is using its operations and delivering its goods and
services to customers (Nirschl and Steinberg, 2018). According to the Argos, they
continue to revamp existing and opening new stores and making easy to access to the
consumers throughout the UK. In 2002 and 2003, organisation is further opened further
36 outlets and its long run target is to go around 600 stores. This is huge in number and it
is key part of company of Argos distribution system and that found in 70% British
household.
 Price- This refers to the strategy that concern with setting the prices of product and make
it is effective to attract the customers. Argos' s pricing strategy focuses on providing low
prices and best example is that management has the approach such as low price DVDs
and CDs. They always try to keep the price low as much as possible through works
closely with supplier and having profitable negotiation with them so that they could
provide best price to its customers.
Company were using 7Ps for promoting their business in service category in the following
ways-
 People- This refers to the group of employees who work for the company and in return
got the salary. In the Argos, they have employed around 30000 employees across all its
channels and work very diligently to provide best services to its customers. Many
employees work as market research and it believe in friendly environment.
 Process- This concern with the process of delivering products to customers. In selected
company, they were feature range of products in catalogues and once order is confirmed
then delivery is taken after making confirmation of order through phone or online
(Okumus and Cetin, 2018). Then, shipment is made and procurement leading to faster
and safer mode of arrival to its destination.

 Physical evidence- This refers to the element of marketing mix that makes customers
actually see or experience when they use service and contribute to perceived quality.
Argos catalogues were distributed in almost in UK and in every household. These were
use for decades and now they run as an option of window shopping (Uncles, 2018).
 Promotion- This marketing strategy is very important to make customer aware about the
offering and ensure them they will provide good quality of product. Argos, has been
undergone in many advertising campaign and its main source is direct advertising. They
make sure that they were having low pricing strategy for the buyers so that they could
attract the buyers at larger level and induce them to avail the services.
 Place- This concern with the distribution strategy and that increases the overall
availability of goods and services around UK. In the Argos, their catalogues were present
in appropriately believed over 75% household. They were present in both online as well
physical shops and even from 2011, they were started telecast over television on sky
channel. Due to increasing its popularity in UK and Ireland makes the company in
profitable stage were it earned good profit.
 Price- This termed as marketing mix which deals with the at which rate they are selling
their product. In the Argos, they were always focusing on developing low pricing strategy
that will help them in attracting the buyers and this is strengthen by their management
team.
 Product-This concern with range of goods and services an company is selling to its
customer (Perreault, 2018). In Argos, they were also dealing with many services such as
in Payments, Argos card, Argos gift card and Argos credit & Insurance. It providing
some services which is easy to deliver and maintenance to product support & helplines.
Assessing relationship marketing strategy on current tactics
Marketing strategies were playing essential role in developing the better image of an
organisation in the competitive market and that helps them to increase over period of time. They
were having many types through which it continue to provide best results to the firm. In the
Argos, the relationship marketing as it own manner of developing the best outcome to the
company and make it easy to survive in the market. Following are the importance of relationship
strategy on current tactics-

 Promote engagement- Company's main motive is to develop the sales and make profit to
survive in future and that leads to certain benefits to it. Through relationship strategy they
were able to foster the engagement of customer in the firm by using Content marketing.
This tactics helps in improving the relations with for longer period of time and persuade
them to buy the product (Roy and Gretzel, 2020). In Argos, they were using this tactics
to improve customer engagement in the organisation.
 Customer retention- This concern with the holding the customer for longer period of
time and ensure greater retention and will help in achieving the profit in organisation. To
develop this selected company is using Email marketing to keep the name of firm in their
mind by using this tactics. Many were using this strategy, to make them remind about the
product and services that they offer.
 Target the audience- This is important to find the category and make appropriate
approach by understanding their need and requirements. They were targeting large
number of audience through Social media marketing as there are many types of group of
people is available on social media. In Argos, they were using this tactics very effectively
by promoting its brand in social media and also helps in improving the relationship with
customers by interacting with them over internet. This strategy also helps in analysing
their needs and requirement and helps them in delivering with the same to satisfy them
(Sari and Gultom, 2020).
Recommendation
From the above discussion it is been recommended that company can use effective
marketing strategy to enhance its existing business by using Internet marketing. As, many
organisation is using smartphone and they were accessing internet and this will help in targeting
more customer through this strategy. In STP strategy, it is recommend that they can strengthen
their Targeting strategy by offering products of baby products and will help them to improve
their business. The effective 4Ps of marketing mix of product in organisation is to strengthen
more Product strategy by providing more range and variety of products which is easily accessible
by everyone. In 7Ps of service marketing mix, the element that need to improve is Process
element as they need to provide more advance method of payment and delivery across the UK
that will foster their availability in the country. Apart from relationship strategy that is need to be

implement is by improving the strategy of Social media marketing as it will foster the
relationships with customer more effectively.
CONCLUSION
From the above report it is concluded that Marketing strategies plays key role in success
of the organisation and everyone has its own way of implementing this in their management. In
the company it is studied about the effective marketing strategy that will be useful in promoting
the business and help in achieving the goals of company. 4Ps of Marketing Mix is very essential
part of company that is useful in implementing best way of strategy by analysing all prospects. In
7Ps marketing mix in services concern with the identifying important element that could be
improve to enhance the business. Apart from that relationship strategies are also necessary
nowadays to implement thoroughly to increase the customer retention and satisfaction and will
be useful to develop the business at larger level.

REFERENCES
Books and Journals:
Blythe, J. and Martin, J., 2019. Essentials of marketing. Pearson UK.
Braciníková, V. and Matušínská, K., 2017, December. Marketing mix of financial services from
the customers perspective. In Forum Scientiae Oeconomia (Vol. 5, No. 4, pp. 36-48).
Bridges, E., 2020. The Undergraduate Marketing Research Course: Two Decades of
Change. Journal of Marketing Education, p.0273475320960501.
Chernev, A., 2019. Strategic marketing management: Theory and practice. Cerebellum Press.
Cooper, C., 2020. Essentials of tourism. SAGE.
Eng, P., 2017. Erste Schritte im Online-Marketing. Springer Fachmedien Wiesbaden.
Haywood, M., 2019. Brand essentials. Professional Beauty, (Mar/Apr 2019), p.78.
Malhotra, N. K., 2018. Marketing research: current state and next steps. Brazilian Journal of
Marketing-BJMkt Revista Brasileira de Marketing–ReMark Special Issue. 17. pp.18-41.
Nirschl, M. and Steinberg, L., 2018. Einstieg in das Influencer Marketing. Springer Fachmedien
Wiesbaden.
Okumus, B. and Cetin, G., 2018. Marketing Istanbul as a culinary destination. Journal of
Destination Marketing & Management. 9. pp.340-346.
Perreault, W. D., 2018. Essentials of marketing. New York: Mc Graw Hill.
Roy, N. and Gretzel, U., 2020. Themed route marketing in India. Anatolia. 31(2). pp.304-315.
Sari, Y. and Gultom, A. W., 2020. MARKETING STRATEGY IN EFFORT TO INCREASE
COMPETITIVE ADVANTAGE IN SMALL AND MEDIUM ENTERPRISES. JIMFE
(Jurnal Ilmiah Manajemen Fakultas Ekonomi), 6(2). pp.157-170.
Uncles, M. D., 2018. Directions in higher education: A marketing perspective. Australasian
Marketing Journal (AMJ). 26(2). pp.187-193.
Veličković, J. and Đuričanin, J., 2020. The role and importance of product in the marketing
concept of bank. Bizinfo (Blace). 11(2). pp.93-103.
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