Identifying customers and meeting their needs
An Argos case study

Page 4: Strategy

A strategy is a general plan which an organisation puts into practice to achieve particular end purposes (also known as objectives). There are all sorts of general strategies that a company might employ such as expanding into new countries or new markets.

Argos' strategy today is one of growth. Growth can be achieved in a number of ways such as opening new stores, increasing the product range, expanding the website or increasing the value and volume of sales. Argos' strategy involves driving frequency and maintaining the loyalty of existing customers.

There is a significant amount of customers who buy infrequently from Argos. Argos classifies this group as the 'Don't quite get its'. Advertising on television and through other media is an important way of attracting this audience. Through advertising the 'Don't quite get its' are able to appreciate the range that Argos offers, and the value for money of the offer. For example, at Christmas time Argos adverts illustrate the way that a shopper can buy all of their presents through the Argos catalogue.

In comparison large numbers of people regularly shop at Argos - these are the 'Get its'. Argos' approach with this segment of the market is to increase the amount they spend in every purchase.

  • Argos has introduced an ever-expanding product range especially since its Home Delivery Service was introduced.
  • Argos has focused on convenience for customers. Research showed that customers regard speed to be the top criterion when choosing to shop from Argos.

Growth therefore comes from driving frequency of purchase, and increasing the expenditure per customer on Argos products.

Argos | Identifying customers and meeting their needs

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