Identifying customers and meeting their needs
An Argos case study

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Page 2: Mission statement

All organisations need to have a sense of direction or purpose. This is usually set out in one or a few short sentences known as the mission statement. Argos' mission statement is:

' Argos publishes two catalogues a year, the spring/summer edition in January and the autumn/winter catalogue in July.'

This statement clearly sets out the main areas which differentiate Argos from its rivals, namely by offering its customers:

  • value for money, and
  • convenience (mainly through use of the catalogue at home).

Meeting customer needs

Argos recognises that its many customers have different needs and prefer to shop in different ways. About 80% of Argos customers have already decided what they want to buy before visiting the store.

One of the prime reasons these customers choose to shop with Argos is because they know that they will get value for money. In general, retail space is very expensive. The more goods there are on display in a shop, the more space is taken up and the higher the prices as you will only be too aware when you examine prices in High Street shops.

Argos is able to offer the customer value for money prices, because it has a low cost business model with limited product displays. In addition it benefits from economies of scale because as a popular national chain, it is able to buy in bulk and, by organising national distribution systems, is able to reduce logistics costs to a minimum.

Convenience

Argos provides a very convenient way for customers to shop. They are able to look through a catalogue at their leisure and choose from an extremely broad product range. The range of what is offered is not limited by the display space in-store and can be accessed in a variety of ways.

Argos | Identifying customers and meeting their needs
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