Role Of Technology In The Operations Of Argos Marketing Essay

Role Of Technology In The Operations Of Argos dispense EssayThe disposal, Argos was founded in 1973 and is part of Home Retail Group (P arent Company). It is a generalized store, which sells a vast number of househ aged products such as household appliances, toys and games, DIY, sports and leisure, etc. According to the propagationArgos has a formidable fag in close of the aforementi unmatchedd merchandises. This establishments business model is establish on a simple initiative combine the comfort and the convenience of root selection ( rolls, internet, and ph adept) with the nearness of its high street stores.Since it prototypic started out, Argos has ever so been notice for its innovative use of technology similar to the way other organisations identical Walmart, Amazon or Tesco utilize this type of technology. Computer systems pay off always had a huge opposition on the way Argos functions as a retailer. Argos uses ICT to monitor var. levels, to recognise commerci alize developments earlier, to avoid standard famine situations and to eliminate product theft.Tesco has a very similar business organise/model. Argos is convenient because of its integration with its practical(prenominal) online business and its retail stores, just worry the way Tesco operates using its stores as its main core of operations. Argos also publishes ii catalogues a year, the spring/summer edition at the start of January and the d protestfall/winter catalogue around mid-July.Finance and AccountingArgos is one of the UKs major(ip) non-fare retail groups. In 1998, after poor financial endpoints, it was taken everywhere by GUS (Great Universal Stores) plc. The because new appointed managing director terry Duddy then set out to improve its fulfillance. Part of Terrys job was to spay the values and beliefs (the tillage) shared at Argos. As say in the Times 100 case studyThe culture he (Terry) developed is one that values customer service, team upwork, encoura ging managers to take their own decisions, respect for from severally one other and wanting to be competitive and improve.The Times then goes on to say that these values were clearly communicated to the employees so that they felt more a part of the business.This clearly shows how Argos consulted with its staff to build a sound team, with team values such asWelcoming changeBeing vehement to winHaving lots of opportunitiesWorking in teamsArgos has built these values into its culture. To oblige this change, they also provided good introductory training, promotional opportunities and performance goals. As hygienic as changing the culture at Argos, managers changed the marketing fusion. This consisted of the traditional quaternity Ps along with other issues which Argos thought important.Product. Market studies showed that the Argos grade was seen as dull and old-fashioned. Argos then modernised the trademark with a new logo and new slogan Brighter Shopping. It also extended its product range.Promotion. Argos advertises to separate market sectors. It divides its market by traditional ways but also uses brand awareness. As quoted from the TimesThe bugger off it group who know and understand the brand are used to help bring on board the dont get it group.Price. Argos continually keeps its prices as low as possible.Place (distribution). Argos continues to expand its retail market by opening new shops. Its catalogue is a cardinal part of its distribution system and is found in 70% of British homes.2People Argos provides good training for its staff as part of its culture change.Process Alongside traditional shopping methods, Argos introduced Quick Pay and text and Take Home. (Customers text to see if an item is in stock, and then conquer it to collect later) Quick Pay cuts down on queues by allowing customers to break forth availability, assure and pay using credit or debit cards. somatogenic environment. Argos invested in improvements to make shops mo re appealing to consumers.As a result of these implemented changes to Argoss culture and the employment of technology. Argos now out-performs the market as a wholeBetween the periods (2002-2003) gross revenue grew by 13% and profits by 17%.3 gross sales MarketingFor advertising, it (Argos) uses a variety of different media to make headway its retail market, such as television, radio, newspapers, catalogues, magazines, posters and the internet. Depending on which is the virtually beneficial and good at the time. This method of utilizing technology is very effective relating to attracting new and old customers namely by proposingValue for coinConvenience.Marketing managers at Argos are continually concerned with addressing questions such asWho are our consumers? (Argos wants to discover as much information as possible on its customers in order to meet their requirements.)Are we proposing enough variety of products, appeal and convenience?How green goddess we gain goods over com petition? (How is Argos different from the opposition?)How can we arrest what trade we already have and how can we expand?How do we success righty interact with our customers?According to the website, computerworlduk, this year Argoss internet website accounted for 32% of the organisations total sales, 22% of which used the online click and reserve service. This shows how much of a positive impact the technology of the internet has had on this retail giant. However, compared to last years alike interim sales review this year was 11% down, but condescension the 11% fall in profits, online sales had significant growth.Argos sales (M) 2006 = 3,859, 2007 = 4,164, 2008 = 4,321, 2009 = 4,282, 2010 = 4,347Description % Sales across more than one channel Totals 2006 32 2007 35 2008 37 2009 40 2010 43 2010 Home delivery Store 7.7 Phone 1.6 net 9.5 Check Reserve Phone 9.5 Internet 22.5Sales (M) (Picture on left)definition Sales in the 52 weeks to 27 February 2010 increase by 1.5% in total. There was further strong growth in televisions and personal computers, offsetting helplessness in the video play market. Toy sales grew strongly. Challenging market conditions continued in home-related areas such as furniture, but the rate of lineage moderated over the year. Source audited financial statements.Sales across more than one channel (%) (Picture on right)Multi-channel sales grew to 1.9bn or 43% of Argos sales. The internet represented 32% of Argoss sales over twain-thirds of this or 22% of Argos total sales were customers using online Check Reserve for store collection, with this channel growing by 36% for a second year in a row. explanation Percentage of sales across more than one channel. There are three ordering channels the internet, phone or store and two fulfillment channels, store or home delivery. Source Measured internally.Argos has a multitude of unique marketing and sales strategies in retail. Argoss state bursting charge statement isWe provid e our customers with the best value for money through the virtually convenient shopping experience.This statement clearly sets out the main areas which cross out Argos from its rivals, namely by offering its customers. As stated in 2002 by managing director of Argos, Kate Swann. Customers canPick up a catalogue consume at home (internet)Use a store to collect or orderUse a store for collection point parliamentary law at home (telephone)Use home deliveryShe also undertake that Argoss drivers for growth wereSmall kitchen appliances (which it was in top position in 2001 for twain value and volume)Beds and mattressesWatchesJewelleryPortable audioToysRetail StructureTesco was the first to use such a structure by combining its online website(s) with its supermarkets. Argos most likely latch oned this similar strategy based on Tescos provoke success.However, Argos retail stores have minimal staff (unlike Tesco), and exploit technology to its full potential (like Tesco and Amazon). O n an independent case study by Databank Consulting, they stated thatArgoss business model is a multi-channel approach customers are offered different types of outlets for shopping. earlier to the introduction of the new e-channels, the customers could only browse the offer in the catalogue or directly at the store4They also suggested that Argoss success as a retailer has been based on its influential decision to adopt a technological based approach, by statingThe Argos website was launched in 1995Nearly 10 years later, Argos can be called a pioneer and leader in e-commerce. With www.Argos.co.uk, the company became UKs number two Clicks and Bricks retailer, combining both store based and online sales.5Before its decision to introduce a system called Nominated carrier Scheme, the problem of receiving and delivering products was problematic and complicated, because every supplier has its own form of transportation, its particular method of documenting and specific time schedules. Th e decision was therefore to adopt a single system to bring together all the produce from suppliers and have them offered as only one delivery. This stock chain solution by UPS receives, validates and handles shipments from several hundred Argos suppliers. UPS then checks that the order is accurate, merges it with other orders and then sends it to Argoss own warehouses for the final delivery.Possible ImprovementsArgos could implement an improved stock ordering and restocking system. Argos stated that it would continue to roll out a voice put away process across all stores over the next two years. They then went on to sayThis technology (voice put away) helps to automatically guide stock room assistants to the correct location6The key benefits of this technology would be quick processing and enhanced stock accuracy, thereby improving availability of stock and the level of customer satisfaction.Another possible improvement could be enjoin towards their gaming sector as this is one of the areas they do not perform well in. They could do this by adopting a similar strategy to gaming stores like Gamestation or Granger games. Which will include a trade in system for games and the value of the trade in(s) would be deducted from their chosen leveraging from the Argos stores. Argos could then go on to sell the traded in games.The key benefits of this pick out strategy would be increased sales at Argos as umteen people who buy games would be more inclined to shop there, increased revenue and a larger share of the gaming market.ConclusionOverall, this organisation effectively utilizes technology for growth, stability and convenience for both Argos and its customers. Argos has gained competitive advantage over competitors by distinguishing itself on the basis of providing the best value for money for customers through the most convenient shopping experience7. Tesco was one of the first organisation giants to integrate its already existing chain of supermarkets with a virtual online one, Argos uses the similar strategy but with a difference convenience of reserving products online and lay in at the customers nearest retail store (there Click and Reserve service). The sanction and success of Argos (and other organisations like Tesco and Amazon) are a result of each of them applying their own unique shopping experience8. Argos is popular and successful because it is pore around meeting the customers needs. By incorporating new technologies, Argos continues to provide the methods that are most appropriate to the modern-day retailing experience.