Argos Marketing and Communications Report: A Comprehensive Analysis

This report provides a comprehensive marketing analysis of Argos, a major retail company in the UK and Ireland. It begins with a company overview and differentiates between customer needs, wants, and demands. The report then delves into macro and internal environmental factors affecting Ar...Read More

Marketing and Communications

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
Company Overview.....................................................................................................................1
TASK 1............................................................................................................................................1
A. Difference between wants and demands.................................................................................1
B. Needs, wants and demands of the customers of Argos Company..........................................3
TASK 2............................................................................................................................................4
A) Macro Factors for Argos........................................................................................................4
B) Two competitors of Argos and their potential threat to business...........................................4
C) Internal environmental factors that considers weaknesses or strengths of Argos business
operations.....................................................................................................................................5
TASK 3............................................................................................................................................5
A) 7Ps of marketing mix..............................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing refers to the activity of the organization in which company is selling and
promoting the products and services. It is an important department of any organization
(Armstrong and et.al., 2018). Communication refers to the interaction and interchange between
two or more parties regarding any kind of information and data.
Present report will differentiate between demands a& wants and explain the needs, wants
and demands of the customers. It will analysis external and internal factors which can impact the
operations. This report will demonstrate two competitors and explain the threats of the
organization. It will tell about the marketing mix (7P's) of the organization.
Company Overview
Argos Limited company is a catalogue retailer company in United Kingdom and Ireland.
Argos Was founded in 1972 by Richard Tompkins. The company headquarter is in Milton
Keynes, Buckinghamshire, England. Company is working on more than 845 shops all over
world. The key people of organization are John Rogers who is CEO of company and Lain
MacMillan is CFO of Argos organization. Company is selling consumer goods to customers
(Fill, and Turnbull, 2016). The main products sell by Argos are house hold goods, personal
grooming and beauty products. Argos limited company providing fashion products to customers.
There are more than 29565 employees are working for Argos limited company. The parenting
company of Argos is Sainsbury. Argos is selling catalogue products to the customer. The
products of the organization are mentioned in the catalogues and this catalogues are provided to
the customers to select the product to buy (Priluck and Topol, 2018). The brands hold by Argos
company are Challenge, Visiq, Pro Action, Cookworks, Beanstalks, Pro Fitness, Optiicom,
Grosvenor, Steamwoerrks, Aquarius and Coolworks. Company is also in mass media and
consumer electronics business. This channel of Argos Limited Company is known as Argos tv
that is broadcasted on Sky channel and at online platform.
TASK 1
A. Difference between wants and demands
WANTS DEMANDS
Wants refers to the situation where customers
have the desired to buy something.
Demands refers to the situation where
customers are willing to and able to buy his
wants.

Wants are unlimited in nature. Demand is limited in nature.
Fulfillment of wants will lead to physical
benefits of the customers.
Fulfillment of demands will lead to emotional
satisfaction of the customers.
Fulfillment of all the basic needs = Wants Wants + Ability of buy = Demands
Wants can arise anytime. Demands can arise only when customers have
money and willingness.
It is driven by cultural background of the
customers.
It is driven by the purchasing power of the
customers (Fitzgerald, 2016).
Wants comes after the needs. Demands comes after the wants.
Example – Customer A want I-pod for the
purpose of listening songs.
Example – If customer A have £199.00 to
£399.00 money, they can buy any I-pod whose
price comes under the stated range.
B. Needs, wants and demands of the customers of Argos Company
Needs of the customers of Argos Company
Needs refers to the concept which is defined as the basic human necessitates. Without
these necessitates, human cannot survive. These necessitates are such as foods, shelters,
educations, clothes and water etc. The needs of customers of the Argos company are as follows –
Clothes, Foods, Drinks, Fans, Lights, Utensils, Books, Pen sets & Stationery, car accessories and
car equipments etc.
Wants of the customers of Argos Company
Concept of wants are different from needs. Wants can be defined as the requirements
which is linked with needs but without those, human can survive (Kotler and et.al., 2015). They
are keep changing with time passing. The wants of the customers of Argos Company are as
follows – electronic devices, musical instruments, computers' instruments, gaming equipments,
furniture and its related equipments, beauty products and health care products etc.
Demands of the customers of Argos Company
Demands refers to the concept which can be defines as if customers have willingness and
have the ability to buy their needs and wants, it can be said that customers are demanding
something. There is a fine line different between wants and demands due to “Desire”. The most
demand-able products and services of the Argos Company are Foods, clothing’s, furniture’s and
financial services. These are the products and services which customers demand most.
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TASK 2
A) Macro Factors for Argos
The different factors that can affect and influence the business of Argos Limited
Company are political factor, economical factor, social factor, technological factor,
environmental factor and legal factor that are not in control of company (Batra and Keller, 2016).
The political factor for the organization is the decision that are taken by government for business
other policies. The economical factor are taxation policy of different nations, recession and
economic crisis. Technological factors are related to the technology that is used by organization
to perform different function of company. Also, the current technology used by competition is
also concern of this technology factor. Legal factors for the organization are the laws made by
the legal body of country ans effects of these laws on business of organization.
The environmental factor for the organization are related to the different environmental
issues. These environmental factor are location of business, weather of the business location.
Geographical characteristics of locality (Pasquier and Villeneuve, 2017). The social and cultural
factor are related to the education level of people, population of area, and social and cultural
values of the people who are somehow related to organization with mutual goal.
B) Two competitors of Argos and their potential threat to business
Argos is the British retailer they operating its business successfully in UK and Ireland,
within company they employed 29,565 peoples. Sainsbury is the one of the biggest competitors
for Argos which impact on their business as poses as potential threat. Sainsbury provide many
services to their customers as they offer online shopping facilities to them that helps to garb
consumer attraction more than the other retailers. People can be able to easily shop online at
Sainsbury for each and every think from clothing and groceries to electricals, home wares etc.
they also offer the great deals to peoples that is potential threat to Argos business and put
negative impact on their financial performances. On the other hand, Morrisons also consider as
the one of Argos business competitors, they want to beat Argos and other retailers in UK and
efforts to make the best marketing plans which is beneficial for them and potentially threaten
others business and overall activities as well as functions. To attract customers more towards
them Morrisons offer home delivery service which attract peoples more and more and retain with
them for longer term period. Company consistently focus on the quality of products and other
things such as price, promotion and value.
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C) Internal environmental factors that considers weaknesses or strengths of Argos business
operations
Financial resources like funding, source of income, equipment and investment opportunities
is considered as internal environmental factors that impact on Argos business and overall
performance. Organization resources is one of the internal factors that impact on business of
Argos company (Hamid, Ab Talib and Mohamad, 2014). Firm is capable to use various
resources to accomplish their goals and business objectives and also able to hire new employees
within business to fulfil the need of their customers which is beneficial for them. Argos has more
than 51,000 workers who contribute in success and growth of business and also helps to run
whole company effectively. Argos used many resources to gather more information about their
customers, they are able to conduct market research in order to understand market needs and
people perspectives. Company is able to serve their services across the world with the help of
effective and skilled team members. Capabilities define as the power of business or firm to do
something; Argos is capable to explore their business and successfully managed international
operations effectively. Organization is capable to make changes in their business as based on
analysis situation which is essential for business progress. Argos perform superbly in existing
and new marketplace and adopt the culture of nations as it shows the capabilities of firm.
TASK 3
A) 7Ps of marketing mix
Marketing mix is the combination of elements that is controlled by the organization to
influence customers to purchase Argos products (JAIN, 2017). It is the foundation model for
business which has been defined as set of marketing tools that firm uses to pursue their
marketing goals and objectives in target market. Marketing mix is the best model for business
including 7Ps elements which is essential for Argos.
Product-
Product refers to the item provide by company to satisfy their customer wants or needs.
Argos is one of leading retail chain based out of UK, they offer groceries products to their
consumers and provide discounts to them which is essential for business as well as customers.
Company added the range of new goods as the part of their marketing mix goods portfolio, they
provide new style of furniture and personalized care such as insurance and pet services to clients.
Organization focus on product design, quality and features and its team members contribute to
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meet with consumer needs. A product may be intangible or be tangible, company focuses on
packaging and successfully manged product life cycle. Production management of Argos assure
to have appropriate type of goods that is in demand for their target market. They ensure and meet
with clients demand from organization products or services.
Price-
Price of business product is usually amount that the consumer pays for to enjoy it, cost of
goods is very essential component of marketing mix of Argos. Company adjust their products
prices based on consumer needs that impact on whole marketing strategy of firm as well as
greatly influenced demand and sales of products. They set price of products based on low
pricing strategy which has been used by firm as beneficial for whole business. They set low
prices on each of goods which helps to retain customers with them for longer term period.
People-
Argos employs 30000 workers across all their channels, lot of their staff members work
on market research. Company believes in friend work environment because it is beneficial for
them and helps to motivate all employees effectively. The staff of Argos create friendly
environment and support new applicants and helps to make them comfortable.
Place-
Distribution or Placement is the very essential part of product mix, Argos distribute and
position products in the place that is easily accessible to their target market or other customers
(Khan, 2014). Their catalogues are almost believed to be in over 76% households, company is
available both physical shops as well as in online. They launched their store is Mumbai where
people accessible to purchase goods.
Promotion-
Argos relies on better promotional strategies to assure consumers and aware them about
their offering. Company used advertising campaigns, promote their products via TV, Social
media platform etc. with the help of Facebook, they can be able to introduce their low pricing
strategy and inform people about range of products.
Process-
Processes and systems of company affect execution of facilities, systematic processes and
distribution procedure are essential process of Argos business. With the help of skilled
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production team members company successfully sell their goods, they deliver goods to clients
with the help of number of suppliers.
Physical evidence-
Physical evidence refers to how business and their products is perceived within
marketplace. In every house holds of company, management brought just for sake of being
brought. The catalogues of Argos have been used for decades so they run also as the option of
window shopping.
CONCLUSION
From above its has been concluded that Argos business is affected by external and internal
factors which impact on their business as well as financial performance. Demands and wants is
different from each other, in this report it has been concluded that needs, demands and wants of
Argos customers is higher than other peoples. Sainsbury and Morrison are the two types of
business competitors that efforts to give tough competition to Argos. Company is able to serve
their facilities to number of peoples and also be able to beat its competitors with the help of
talented team members. Furthermore, organization used social media tools for promoting their
products and used 7 ps of marketing mix which helps to grow their business as well as increase
profitability.
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REFERENCES
Books and Journals
Armstrong, G.M., and et.al., 2018. Marketing: an introduction. Pearson UK.
Batra, R. and Keller, K.L., 2016. Integrating marketing communications: New findings, new
lessons, and new ideas. Journal of Marketing. 80(6). pp.122-145.
Fill, C. and Turnbull, S.L., 2016. Marketing communications: brands, experiences and
participation. Pearson.
Fitzgerald, R. ed., 2016. Human needs and politics. Elsevier.
Hamid, A.B.A., Ab Talib, M.S. and Mohamad, N., 2014. Halal logistics: A marketing mix
perspective. Intellectual Discourse. 22(2).
JAIN, M.K., 2017. An analysis of marketing mix: 7Ps or more. International Journal of Advance
Higher Education Research & Development. 1(7).
Khan, M.T., 2014. The concept of'marketing mix'and its elements (a conceptual review
paper). International journal of information, business and
management. 6(2). p.95.
Kotler, P., and et.al., 2015. Marketing. Pearson Higher Education AU.
Mahmood, R. and Khan, S.M., 2014. Impact of service marketing mixes on customer perception:
a study on Eastern Bank Limited, Bangladesh. European Journal of
Business and Management. 6(34). pp.164-167.
Pasquier, M. and Villeneuve, J.P., 2017. Marketing management and communications in the
public sector. Routledge.
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