Revolution in retailing
A Dixons Group case study

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Page 4: Retailing propositions

Dixons Group 5 Diagram 1Dixons focused on individual brand building. This positioned the retail chain in relation to each other, emphasising the ability of each to meet the needs of particular consumer segments by product and competitive attributes. This created a broad range of retail opportunities, each meeting different customer requirements, with in-store and after sales service underpinning each of the retail brands.

Different store brands and different methods of retailing have alternative meanings for customers. For example, they might prefer to shop in one supermarket rather than another. They are thus influenced, for a number of complex reasons, by different retail propositions. 

Dixons Group 5 Image 5Strategies used by Dixons to develop different customer propositions have been designed to help the Group’s products and approaches to retailing appeal to different groups of customers. These positioning propositions are broadly related to customer, product and competitive attributes. Currys, for example, has moved away from the high street to larger edge of town superstore units in order to satisfy customer needs such as a wider product range, emphasis on bulkier and larger goods and improved space for browsing and parking. In contrast, Dixons, @jakarta and The Link remain in the high street and provide a more portable range of goods.

The Dixons customer - Impulsive retailing
• Individuals, younger, male, wanting excitement, the latest/newest/smartest.
• Looking for a deal.
• Wanting uniqueness/exclusiveness.
• Instant gratification.
• Individuals and small businesses wanting computers and related products.

The product offer - for the individual
• New technology, latest, newest model/brands, understandable deals, variety from which to choose.
• Strong emphasis on portable (take-away) products.
• Convergence of technologies and products.
• Mobile phones/organisers. Products accessible for mass markets

The Currys customer - Destination retailing
• Families, all ages wanting choice & value.
• Need security that products are good and prices keen.
• Know product they want but not the model.
• To meet a ‘need’ rather than a ‘want’ and the purchase will be planned and will not be instant.
• Require convenience, high quality service and simple methods of payment/delivery.
• Few business customers, some individuals.

The product offer - For the home
• Comprehensive range with keen prices and deals on prices/exclusiveness.
• Dependable names/major brands.
• ‘One stop’ electrical shop.
• Products for the home, often delivered.
• Some products linked to major purchases (i.e. link to kitchens).

The PC World customer - Knowledgeable customers
• Category killer, appealing to all sectors of the market.
• Households, individuals and business customers.
• Some customers seeking choice and value, others seeking technical advice and know-how.
• Desire to see latest/newest but need security by purchasing dependable products with reasonable life cycle upgradeability.

The product offer - Specialist retailer
• Huge choice.
• Expanding categories as technology grows.
• Products with short life cycles and subject to continuous change.
• Brands important.

The Link customer - Communication retailing
• Individuals wanting advice.
• Looking for best price and the right service.
• Small business.

The product offer - Communications for the individual
• New communication products and services.
• Latest and comprehensive range of mobile phones.
• Office communication equipment and organisers.


@jakarta customer - Software retailing
• Individuals looking for information, advice and an enjoyable shopping experience.
• Looking for best price and the latest and popular products which are easy to find in store.

The product offer - Specialist retailer with general appeal
• Wide range of games consoles and computer software products.
• Stores laid out to make products easy to find.
• A separate information desk.
• Brightly lit colourful store to make the shopping experience exciting and enjoyable.
• Retail environment supports

Dixons Group | Revolution in retailing
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