Carphone and Phones4u Marketing Strategies - Report Example

Carphone and Phones4u Marketing Strategies of Affiliation Table of Contents List of figures 2 Introduction 2 Digital Experiences by the Carphone Warehouse 5 1)Carphone Warehouse Mobile applications 5 2)Use of Social network and online communication by the Carphone Company 6 3)Use of TV shows by the Carphone Company 7 Customer relationship management by the Carphone Company 7 a)Customer experience strategies and honesty developed by Carphone Warehouse 8 b)Carphone Warehouse Company recruiting qualified staff 8 Digital marketing strategies by the Carphone Warehouse Company 9 a)Mailing strategies by the Carphone Warehouse Company 9 b)Referral techniques by the Carphone Warehouse Company 10 Environmental factors affecting operation of Carphone and Phones4u companies 11 Conclusion 13 References 13 List of figures Figure 1: Porter’s five forces 12 Introduction Carphone Warehouse is a UK mobile phone retailer, having over 2,400 stores throughout Europe. It trades as Carphone Warehouse in Ireland, UK and as Phone House in other parts of the UK. Their target customers are middle class earners. In addition, there market position is phones market with best quality and services. According to the recent articles, Carphone warehouse has 34% of the UK phone market, just ahead of the longer established Phones4u at 28% but with much greater dominance of the growing delivery market. Therefore, Carphone warehouse is the market leader of the phone delivery provider now in the UK. Phones4u was a partner of 4u Group and was independent large mobile phone retailer located in the UK. In this report, investigate at Carphone warehouse and Phones4u existing digital experience, which they provide to their customers. The report begins with situation analysis of phones 4u and Carphone warehouse and the environment they operate in by using SWOT analysis. The report would provide the example of the digital experience the organizations provide to their customers. In addition, the report evaluates each digital experience, which they applied and discuss how well it meets the likely marketing goal of the Phones4u and the Carphone warehouse and the behavior of its customers. The report draws attention to any digital experience of Phones 4u and the Carphone warehouse that they did recently. These include Carphone warehouse mobile app, social network campaign, and customer’s online advertisements. Results of the data analyzed show that Carphone warehouse have many download rate using the mobile applications and provide a more convenient way to enable customers place their order. Further investigations indicate that Carphone warehouse does well based on customer response as compared to Phones4u. Moreover, point out a poor performance activities on social network, which is on Instagram. The report found out that the prospects of the Carphone warehouse company in its current position are positive while that of Phones4u trends on the negative. To maintain their leader position in the market, the Carphone warehouse has once again differentiated itself in the market through the digital experiences. The mainly competitor of Carphone warehouse in UK is Phones4u. Remaining sensitive to competitors and allowing competition to affect product pricing is a classic trait of a market follower. Carphone warehouse was eventually to add more stock and different types of phones. The SWOT analysis is essential in determining the organization’s competitive positions as far as its marketing strategies are concerned. The below illustrates the SWOT analysis for the Carphone warehouse company Strengths Carphone Warehouse Company has developed a better brand name for their products, which has resulted into higher brand loyalty among its customers, has stocked a large number of phone products, which are of high quality, and has taken a lead on online marketing, and hi-tech advertising and marketing campaigns (Hollensen, 2013).  Weaknesses The Carphone Company realized that there was need to improve on the efficiency of delivery of products and to better train their staffs on how to handle their customers and to carry out marketing campaigns (Hooley, Piercy & Nicoulaud, 2012). Opportunities More opportunities increased the level of sales through various applications like the mobile apps, online marketing, and delivery of high quality products. Threats The Carphone Company realized that a worst customer experience is no longer shared between a close-knit group of family and friends and that blogs or social website influences buying decisions and become a threat (Johnson, Whittington and Scholes, 2011). Through performing the analysis, better understanding of Carphone Warehouse for different views of the future, the new strategies are evaluated and strategic risk assessed. An alternative way of thinking through the strategy goals is to review the assessment online strategies for manufacturers and retailers, which is a fundamental to marketing planning, and it helps companies to think about how online platforms support marketing goals. Market Penetration strategies involve using digital channels to sell more existing products into existing market. The report illustrates the strategy goals in which internet are used for market penetration. First, Carphone Warehouse can improve on customer value by decreasing the price like online discount or coupon during order. This increases purchase level among customers. These combine effects increase the sales and increases the customer profitability. Second, customer loyalty improvement is one of the critical strategy goals of Carphone Warehouse. Carphone Warehouse has increased their value to the customers and increases the loyalty by adding value to existing phone products, services and the actual brand by developing the online value proposition. Furthermore, engage Carphone Warehouse existing customer via social media like Face book, Twitter to raise awareness in the phone market that try to grow more customers across all social channels. For the most important part is to increase the market share. Although Carphone Warehouse already has 34% of the phones enough but that is not mean, they are in the best position. Therefore, Carphone Warehouse can compete more effectively online if they have that for achieving sales growth for maintaining sales by great online marketing communication techniques, such as digital experience (Morrish, 2011). Digital Experiences by the Carphone Warehouse This section of the report shows the Carphone Warehouse digital experience that it provides to its customers. It evaluates each digital experience, which they use, and discusses how well how the experience meets the likely marketing goal of the Carphone Warehouse and the behavior of its customers. Digital experience is important for organization to think about the kind of experiences they want to deliver to their customers through digital technology like the website, social media, and mobile app or email that effect to engaging the customers. It is important that digital experience reflect to online brand experience. In addition, online brand experience use digital channels provide the opportunity to enhance the frequency and depth of customer interaction with a brand (Pehrsson, 2004). Various ways help to know if the campaign strategies are effective in the digital marketing. Firstly, the usefulness of the experience, to find out whether the customers get the new sound of it and is it effectively meeting the customer’s needs. Secondly, how easy to use is the digital marketing strategy for the organization. For example, is the digital context on the website easy to place an order for the phone purchase? Lastly, is how enjoyable the experience is to the customers. For example, do the customers enjoy doing the business with the organization. 1) Carphone Warehouse Mobile applications With the help of mobile applications, customers place their phone orders, find the nearest store for delivery, and can track their orders through the app as well. In terms of the mobile app design, the Carphone Warehouse mobile app has a well defined layout, and easy of use. Carphone Warehouse digital platforms comprise 36% of sales in the UK. Mobile apps both for the iPhone and Android are in top 10 in lifestyle rankings with the iTunes store and on Google Play. The Android app generated more downloads in its initial stages after release. Therefore, the pace of growth with the moblie app is powerful and determins the success of Carphone warehouse phone company (Pehrsson, 2004). 2) Use of Social network and online communication by the Carphone Company Most of the Carphone Warehouse marketers spend a lot of money on the social media to do marketing as compared to the other digital methods of marketing. Carphone Warehouse company realized that social media is the largest and the most popular site. It took advantage of this to effectively compete with the Phones4u Company that trades on the same commodities. Social media provides a better platform for Carphone Warehouse to retain its customers and a better platform for its branding objective with respect to the Phones4u Company. Carphone Warehouse realized one major disadvantage of social media marketing which is the lower rewarding impact to its customers. In addition, Carphone Warehouse realized that it was not easy to keep a tracking record of its investments though it keeps regular contact between the customers and the Carphone Warehouse marketers. Again, it is difficult to analyze and track the ROI when using social media digital marketing method for it does not offer exact numbers. Social media and the websites are a major form on digital marketing while others like the mobile marketing are considered less effective digital methods of communication. Carphone Warehouse and the Phones4u had different motives for using the digital internet marketing since each wanted to increase its customer engagement, brand awareness and the sales revenue. In this type of digital marketing, Carphone Warehouse noted that the cost of customer and reducing marketing are less important (Morrish, 2011). Carphone Warehouse has replied different responses, which the people write the post on their Twitter account. With the growth of the of the organization networks on the Web, customer communication is no longer just one customer talking to one enterprise to provide the kind of service that improves the chance of customer loyalty. Carphone Warehouse replying the customer’s response is helping the company to gain more loyalty customer and build a good online customer relationship at the same time. Therefore, social network is one of the most important elements for each organization to develop their brand and customer relationship. Apparently, Carphone Warehouse did lot campaign on the social network like Twitter and Instagram (Baines, Fill & Page, 2009).  Individuals are offered a chance to win a free phone via Instagram. Literally, this campaign is a good strategy to reach the new customers, which they never had before. In addition, it is such a good digital experience to let people to be involved via social network. 3) Use of TV shows by the Carphone Company TV shows have many views, and they have the mobile app to let audience to vote for their best performing companies. In addition, Carphone Warehouse has made an in-app advertising to promote their brand through various famous brands. The promotion campaign is about want people download the X Factor app and play a mini game to have chance to win a free smart phone from Carphone Warehouse. Carphone Warehouse has communicated the information through their social network sites. The promotion campaigns have increased the brand awareness among its customers. It is easy the gain more new customers or attract the Carphone Warehouse diehards through placing more order by free gift (Pehrsson, 2004). Customer relationship management by the Carphone Company With the development of the mobile app, Carphone Warehouse has succeeded in phone business in retaining of its customers, attracting more clients from the Phones4u Company and in developing good relationships. Relationship management of customers is tackled on the tenents based on customer experience management. This is focused on the improvement of the customer interactions done through mobile apps and social media like the Instagram. With the flourishing use of the website, Carphone Warehouse customers have tailored access to various information and the opportunities to influence services through the media. It is advisable to create a two-way form of communication between Carphone Warehouse and its customers to help track the activities (Kotler and Keller, 2012).  a) Customer experience strategies and honesty developed by Carphone Warehouse Carphone Warehouse Company needs to understand its missions, visions and the goals, design the customer’s slogans and service directions, develop a comprehensive program of communication through the use of Instagram and mobile apps for the customer’s experience strategy, and ensure that the strategies developed do not conflict with the strategies of other competitors like the Phones4u Company. Honesty is the best policy to retain the customers and to compete with the other phone dealing companies like the Phones4u effectively. Honesty has always been achieved by the Carphone Warehouse than the Phones4u. This is because the response time has been less and there is a lot of truth as the customer deals with the well-established firm (Kotler, Armstrong, Wong and Saunders, 2005). b) Carphone Warehouse Company recruiting qualified staff Carphone Warehouse should recruit qualified staff meant to provide services to its phone customers. Consider functional expertise, knowledge, and technical competence of the individuals. The client satisfaction level is greatly impacted by the right attitude and the research has shown that the most requirement in an individual is the attitude since other factors like the skills and the expertise are easy to learn and can be taught. The following factors will help in determining the right people to recruit as employees of Carphone Warehouse. Define the requirements of the job, develop the assessment centers to evaluate the candidates during the interview, involve a number of team individuals during the hiring process and the evaluation process should be based on objectives rather than subjective (Dibb,Simkin, Pride and Ferrell, 2006).  Digital marketing strategies by the Carphone Warehouse Company With digital marketing, Carphone Warehouse has realized increased sales and customer retention in its phone dealing business as compared to the Phones4u. It has laid effective strategies like the mobile apps in competing with its competitor Phones4u. The Carphone Warehouse Company has enough expertise and better-trained employees as compared to the Phones4u Business Company, which has been long established in the UK. The major important aspect of the digital marketing is based on its traffic acquisition while the other most important objective is creation of the awareness. Before Carphone Warehouse engaged in marketing campaign, it was important for its marketers to define the goals they need to achieve and précised objectives with regard to customer awareness and acquisitions. These help the Carphone Warehouse marketers to evaluate the campaign efficiency and the results. The goals and the objectives were exact and measurable for everyone wanted to know the feedbacks invested in the efforts. Gathering of valuable information with regard to the customers helps, Carphone Warehouse company to have better testing experiments over Phones4u Company (Pehrsson, 2004). a) Mailing strategies by the Carphone Warehouse Company Carphone Warehouse used Email marketing which became the most commonly used digital tactic to market its pizza products. Email marketing was found to be easier and most effective as compared to the other methods of communication by the Carphone Warehouse Company. Email marketing is linked to its popularity and the most effective form of the internet marketing. The success of email marketing by Carphone Warehouse was contributed by the ease with which it was conducted. In conclusion, Carphone Warehouse ranked email digital marketing the most effectively used method for creating awareness, customer retention, and acquisition. Email personalization helped Carphone Warehouse marketers to have a communication that is more engaging and that is closer to customers tonnage for example a personal message sent to Carphone Warehouse customer shows how the person is cared for especially about their preferences and in maintaining good rapport with them. Carphone Warehouse realized that it is easier to maintain a loyal customer and it costs less as compared to the cost of building and attracting a new customer. In as much as email marketing was viewed, as cost effective method of digital marketing by the Carphone Warehouse, much still needs to be done as very few people were willing to leave behind their details to Carphone Warehouse company (Pehrsson, 2004). b) Referral techniques by the Carphone Warehouse Company Referral digital marketing method is a champion tactic that has been used by Carphone Warehouse to acquire customers and in driving up of the conversions. Carphone Warehouse realized that it was also a better method to create awareness among its customers and has been used for the possibilities of Carphone Warehouse lead generation. Carphone Warehouse succeeded to this method against its competitor Phones4u Company that involves acquisition of new customers and building good rapport with them as well as retaining its existing customers. Referral marketing is a method that has been acknowledged by most of the Carphone Warehouse marketers for its greatest advantages for it has been used to optimize cycles of the sales, maximizes on the sales funnels, and offers qualified prospects. These make the method to provide the qualified business leads that eventually influences the Carphone Warehouse customer’s satisfaction over the Phones4u. As discussed earlier, Carphone Warehouse saw this method of digital marketing as a better way to retain its customers for it is a systematic way that involves cycles of the various customers which is based on influence power. Carphone Warehouse also considered the method as superior as it involved communication by word of mouth, which is a powerful tool to pass information from one individual to another in its business set up. The powers bestowed in a word of mouth are much unlimited and can change the passives into promoters. In summary, the following are some of the recommendations that were made by the Carphone Warehouse management. For the Carphone Warehouse marketers to achieve their goals, acquire, and retain more customers, it was recommended to bring together all the digital methods of marketing and the Carphone Warehouse Company should never concentrate in only one method to effectively compete with the Phones4u Company. Environmental factors affecting operation of Carphone and Phones4u companies This section of the report aims at identifying the elements of environment that influence the marketing decisions for a given organization. The environments can either be micro or macro where an organization operates. The macro environment influences the business operations directly and includes factors like the politics, global economy, legal aspects, technological growth, and the social behaviors. The macro environment can never be regulated by the organization and the business should find ways to adapt to such environments. The organizations competitive state is enhanced by the microenvironment and has direct impact on the operation of the organization. Microenvironment factors are contributed by factors like brand image of the product, culture of the firm, and position of the market. The business microenvironment is dictated by the competitors, consumer power, and the suppliers in a market set up. The microenvironment is illustrated by the porter’s five forces as shown below (Dekel, Prince and Beaver, 2007). Figure 1: Porter’s five forces Customers bargaining power Customers bargaining power is the ability of the customers to find a product that is cheaper elsewhere. The UK mobile is competitive and offers a variety of product choice to consumers. New entrance threats It is an attractiveness of an industry and how ease the new comers can fit into the industry. The online trailers in the United Kingdom trading on mobile phones have increased over the past years. Threat of substitutes It is the ability of the consumers to get substitute products offered by the organizations. Substitute threats in the market in the UK has become low as a result of minimum alternates based on mobile phones in the market. Industry rivalry Industry rivalry is the competition level in the market set up (Kotler and Keller, 2012: 56). Mobile space is very competitive in the business perspective based on the current offerings by independent online retailers and the mobile networks Conclusion Carphone Warehouse recently introduced their phones reinvented. Carphone Warehouse used customer communication to gain customer loyalty, develop a new social TV channel to increase the brand awareness. To maintain their leader position in the market, Carphone Warehouse has differentiated itself in the market through the digital experiences. With digital marketing, Carphone Warehouse has realized increased sales and customer retention in its phone business as compared to the Phones4u. For Carphone warehouse to continue succeeding in its business, they need to capitalize on the technology and to adopt new technologies in the market. The company needs to employ effective techniques and marketing tools to ensure success in the business. The company should create stronger services and products that attract more customers and to help increase the sales of products. Marketing therefore looks at the behavior of customers and not just on selling and advertisements. References Dekel, O. Prince, C. and Beaver, G. (2007), The changing orientation of marketing: an emerging post-modern perspective, Strategic Change, Vol. 16, pp. 105–355 Dibb, S. Simkin, A. Pride, D. and Ferrell, G. (2006) Marketing Concepts and Strategie, 5th European Edition. Boston: Houghton Mifflin. Hollensen, S. (2013) Global Marketing, 5th Edn, New York: Pearson Hooley, G. Piercy, N.F. & Nicoulaud, B. (2012) Marketing Strategy and Competitive Positioning, Harlow: FT Prentice-Hall Johnson, G. Whittington, R. and Scholes, K. (2011) Exploring Strategy, London, FT: Prentice Hall Kotler, P. and Keller K. L. (2012), Marketing Management,14th Edn London: Prentice Hall Kotler, P. Armstrong, G. Wong, V. and Saunders, J. (2005) Principles of Marketing, 4th European Edition. Harlow: Pearson Eduction Limited. Morrish, S. (2011) "Entrepreneurial marketing: a strategy for the twenty‐first century?", Journal of Research in Marketing and Entrepreneurship, Vol. 13 Iss: 2, pp.90 – 219. Baines, P. Fill, C & Page, K. (2009) Marketing, Oxford: Oxford University Press. Pehrsson, A. (2004) "Strategy competence: a successful approach to international market entry", Management Decision, Vol. 42 Iss: 6, pp.638 – 788. Read More