c







Currys was founded in 1884 by Curry was founded in 1884 as cycle manufactu rer by
Henry Curry in Leicester, UK. It was listed in London Stock Exchange in 1927.
Dixons was founded by Charles Kalm and Michael Mindel in 1937 in the High Street,
UK. It was listed in London Stock Exchange in 1962.

In 1984, Currys was taken over by DSG International Ltd, and maintained their
separate identity and operated as Currys Digital. Currys operates under 2 branches
currys ishop and currys part master. It has a total of 551 stores and employee of
around 5000 -10000.

a
 



 






The few of the challenges affecting currys is discussed here. In Pestel analysis, the
major affecting factors were Social, Technological and economics. The lighter
impact of political and environmental factors is observed in a minute scale. This
report would deals with external factors using pestel and internal factors using
porter¶s 5 forces to analyse the company¶s strength and weakness and the
opportunities and threat to the company and its impact to laptop sales.

a c




 

The increase in VAT from its current 17.5% to approximate 20%. The average VAT
of UK is almost the same as the EU.This increase would impact the whole supply
chain starting from the raw materials to sales. The cost of VAT would pass on to the
customer. In this view the customer may postpone their spending in case of
electronic gadgets. The increased VAT is applicable to Fuel which would increase
cost of transportation for currys. 57% percent in the survey done by mintel
suggested that they weren¶t intending to buy new pc or laptops 15% would stick to
their existing one¶s.

The competition law prevents currys from dropping its price of laptops at base level
as the compared to other competitors.

The new immigration law passed by the government to reduce the number of non
Europeans in the country.

a a
 


The decrease in pound val ue would impact the curry as it acquires a lot of electronic
items from asian countries. Currys would have to pay more to acquire same number
of equipments.

As per Mintel forecasts that the PC market will decline in 2010 in value terms as
deflation offsets relatively strong volume growth. Spending on PCs was down 8.8%

c
in the first quarter but expect ation is there that things would improve during the year
to ended 5.7% down for 2009 as a whole. It will take until 2014 for the market to
recover to near to 2008 levels ± there is a forecast growth of 4.9% between 2010
and 2014.

The interest rate is Low for customer to buy things but the credit approval is very low.

As per Mintel report it indicates that the price of pc¶s and laptops is lower as
compared to 15 years, this indicates that there is a growth of bu ying of laptops and
pc in nearby future.

Falling prices have reduced the product development cycle.

a 



The demography change of customer behaviour towards multiple ownership of

laptops may hinder the sales of laptop.

There is an increase in techno literate group which in under the age of 16 -34 yrs by
12% in the next 5 years. 


c

There is an increase in unemployment which might increase to 10% in 2010 as per

Mintel report which would create a negative impa ct on laptop and pc sales. Refer


a

Since UK is a major destination for students there is an increase in immigration

population of international students and highly qualified workers.

a !
" 


The technological advancement of laptops have reduced its product cycle life (as per
mintel report 3 months on shelf) and increase the upgradation from PC to laptops.
The technology development also has increased it s reliability and quality further
decreasing the replacement cycle of laptop. Many features are provided in a laptop
giving the consumer a multiple purpose use.

Product convergence has decreased the sales of laptops as smartphones and

palmtops(PDA) has increased. The internet facility provided by the mobile company
has increase the use of the mobile phone and smart phones.

a #

 

As there is a concern about the waste from computing industry, such as plastic and
battery the government is emphasising on recyclable material materials to be used
by the company. Another issue is energy consumption. Company are focussing on
less power consumption laptops and recyclable materials for their manufacturing.

The approach to use recyclable packaging material is gaining momentum in the

retailing industry; curry has already started with its r ecyclable approach with the
collection of battery.

a
Another approach towards finding the internal factors affecting the company is the
Porter¶s 5 forces.


$
#
 

 c
" 

%
&

The threat of entry for new comers is low, but the barrier for entering market is very
high. The new entrant should have economies of scale. It should have high R&D
resources. The threat is high due to its already captured market. Every new
company entering would face a high retaliation from the existing major com petitor.
As the market is still recovering from recession the threat would be high.

 a
' 


%

(&

The bargaining power of the buyers are considered to be low as an individual but as
a group it is high. The switching cost for the buyer are low. As many retailers offers
same product with same or lower price or with extended services the buyers has an
option to purchase with the other retailer. The buyers focus on price range when
buying a laptop.

 
' 


%




The bargaining power of the suppliers is considered to be low. The suppliers having
core competencies has higher bargaining power such as Intel or AMD towards its
supplier. The brand reliability and brand perception by the customer gives the
supplier more power. Major companies has dominance in particular segment of
laptop, such as HP in tablet Notebooks. Since there are many store retailers and
online retailers the suppliers may switch to another retailer.

 !
" 

(


the threat of substitute is consider to be moderate. The convergence of palmtops

and smartphones has replaced the existing laptop sales. The services provided by
mobile service provider further decrease the dependency of laptop. As there is a
potential market for books in UK, recent report from mintel suggests that there would
be an increase in the number of readers. The facility provided by the colleges and
universities and many library to use the computer and internet could deter the laptop
and pc market.

 #




 &

This is the major force that decides the stability of the company in the market and
decreases its opportunity to grow. The level of rivalry is very high. The competition
among major retailers leads to price wars. Online retailers offering of lower price as
compared to store retailers which creates a cut throat situation. The competition is
not only based between companies but also in product segments each trying to
differentiate itself with brand imag e and trying to capture the market share. 





½
!
"
%
 


As there is an increase in the techno literate group, within the next 5 years, there is
an expectation for the sales to increase. The decrease in price of laptops and newer
model availability is the major factors to exploit the situat ion. See Appendix %

 


! c



 





 

As the current market for laptops is booming, companies there is an increase of

competition among retailers. Companies are trying to capture their existing market
share and retain it.

! c c


  



The store layout plays an important role in deciding the sale of a particular product.
The easier the product segregation based on type reduce the search time. Ambience
of the store further increases the customer com ing back to the store quite often. The
current approach to redesign its existing 63 stores by curry across UK, is to facilitate
the convenience of buying for customer.

!ca
 


The discount offers during holiday season or stock clearance sale s attract the
consumer in UK. The customers are very reactive to discounts and other offers. As
per the mintel report, the UK customer¶s of the age 16-34 yrs are very reactive and
would like to purchase in case of discount offers. The trend to retain its customer by
offering discount on the next product they buy is complicated as the rate of
purchasing a new product frequently is very low. Again the product life cycle for
laptops are becoming short the retailers would like to get th e laptops off the shelf as
soon as possible and replacing with newer product by offering discount on older
models of Laptops.

! c 



Customers are more focussed on the services that are provided along with a new
product. Any extra services would be welcomed by customer. The customer expects
tangible and intangible services when they would like to buy certain products. The
higher the service level the higher the satisfaction rate. Curry has issues with its
servicing of laptops that was with the delay s in repairing and returning. The customer
would like to have a knowledge able staff and their services while entering the store.

Over investment in increasing the service value may decrease profitability if the
outcome is not there.

!a 


 


)%
 

The next phase of growth for the company would be to extend its reach with its
existing product in a new domain or place. The company will enter this growth this if
the existing market with existing product becomes saturated.

ñ
! a c



&

The customer in UK value their time. Customer would l ike to have physically see and
have a demonstration before buying laptops (


!). During holiday
season there is a rush in stores as discounts are offered, which increase purchase
time. In order to avoid this prior appointment from customer taken would be wise for
demonstration of laptops.

! a a

 
(



Currys has already numerous store in UK, investing in new store would limit its profit
liquidity. As there are many IT fares companies are exhibit new products there.

So a presence in exhibitions may increase the brand image. Exhibitions in colleges

and universities during the start of term may, as new student enrol and has a needs
for laptops. Exhibitions would give curry s an idea about its competitors and position
themselves.

! a 
"


%

* 
+ 


As the current trend of education in colleges and universities has changed with the
advancement of digital knowlege. The emphasis of owning a laptop for course work
has increased. Plus the number of overseas students has been increasing over the
years. The rising trend of working from home has increased.Many companies
purchases laptops and peripherals for its employees such a as travel industry,
software industry etc, cutting deals with these companies could be profitable.

! )%
 





 

!  c 
 



After the sales of laptop the customer expects more than just the laptop itself. The
increase in trend of customer option for post sales services with the same price of
laptops. Curry has very few options with post sales services. Inorder to maximize its
reach in its existing market, curry are extending its offers on laptops for return
discounts, free repair for a period of time. This could also include peripheral sales
along with the laptops.

!  a  


)%
  ‘

Curry could increase the introduction of new laptops to its existing market with
launches of newer models and bett er specification of laptops frequently. The
development of laptops with more added features by manufacturers are increasing
competition among retailers. The specific techno educated groups are always on
look out for advanced model of laptops. The decrease in laptop price is due to
technical advancement which is related to sales of new laptops by switching of
standard pc to laptops.

0
!!





! ! c





A collaboration by DSGI and Currys partmaster has led to creation of Advent.

Company is using its brand image to exploit its potential. The innovative Advent
Laptop is very power efficient and light weight. But Currys is having difficulty in
managing this product. Promotion would be required to promote that brand, which
the customer is not aware of as compared to laptop manufacturing companies.

! ! a 
 

Particular segment of customers does not care much on contracts offered with the
laptops. Curry does not offer much of the contract offers on its laptops, as the
company is planning to stop offering credit options. As there is an increase in the
internet usage among people due to many networking sites, laptop sales with
respect to netbooks have increase. If the curry starts offering internet packages
along with its laptops would enable the sales of its laptops.

! !  (

 

Marketing companies are using mobile services to target larger group of people. The
Tie Up with mobile companies such as O2, Vodafone to market Advent and other
laptops. The use of mobile texting is used by many retailers to inform the customer
about their products. Till now curry has not tied up with any of the mobile service
provider.

  
 : My option would be the existing market with its existing
products. It would market penetration. Curry has its brand image and the investment
for the company toward its existing market would be less as compared in venturing
into new marker with new products. Currys has already captured its market share
with the sales of its laptops as compared to other competitors. The increase of
techno literate group increase and incoming overseas student would justify the
strategy of growth implemented by Currys.

#
 

(, 


 




 & : Existing market with Existing Products


 : 16-34 yrs



 


: C1

*(,


Increase its over all market share from 5 % to 8%.

Transforms 23 of the existing plan of 63 store in UK

Cheaper price of laptops by 2%

Ô
 Increase customer satisfaction

Increase internet sales of 1.3 billion from its existing year to 2% .

Going in line with Currys strategy and objectives

1) Focus on the customer through an unbeatable combination of value, choice

and services
2) Focus the portfolio on winning positions
3) Transform the business to broaden the choices for our customers and
improve the instore buying experience
4) Win the internet market
5) Reduce out cost base by simplifying the process

 

The advancement of technology is reducing the product shelf life, every quarterly
there are launches of advance laptops. Introduction of such laptops on quarterly
basis on the shelf of the stores. Currys can have a direct talk with laptop
manufacturers to launch new laptop ranges in the store. The trend of this age group
to look for better specs laptops is high.

The extended services on the laptop would such as accidental warranty, overseas
part replacement and free service warranty could be used to attract this socio
economic group.




This age group buys mid range laptops ie £250-400. The customer would opt for
cheaper price with the same model if its available in the store. This could be
achieved with discounts during festivity or student discount. These age group has
students aswell a 10% discount for student and 15% festiv ity discount is a major
boost for the sales of laptops. The lookout for discount by customers may align to the
price offered by currys, if the price is reduced overall by 2%.(


#-




Curry has not been a great spender in promotion of its products. Though it has quite
enough earning from its internet sales, currys is limiting its spend on
advertisement. .


/-

>> Advertisement in newspaper such as The sun, Metro

The sun is the largest sold newspaper in UK, as it has most number of pages for
advertisement. Same is for the Metro newspaper it is available for free in tube station
and other places, plus the investment for advertisement is cheap compared to other
newspapers.

x
Another mode of advertisement would be mobile texting to customers. A prepaid sim
card does not require authorization from customer as compared to contract sim
cards.

Since this age group is active in networking sites such as facebook, twitter,
advertisement in these networking sites would increase the awareness of the new
products available.

 

Currently the currys store does not have separate laptop department. The laptops
are not segregated based on their specification and types. The customer has to a sk
for assistance to find what they are looking for. The restr ucturing and redesigning of
the existing stores so that they have a separate area allocated for laptops and
segregated based on their types and specifications. .


!-

Exhibitions in colleges and universities plus in trade fairs would encourage the
customers to reconsider their buying.



As Mintel report suggest that this age group has a tendency to have a physical check
and tryout before buying a new laptop. Since the age group f alls under the techno
literate group, they expect the sales person to have sound technical knowledge.

Currys has some issue with people who are entering middle age and their non
technicality for all products. Recruitment of smart and knowledgeable staff.
Recruiting brand specialist for particular brand of laptops. .


0-

&


 

Currys store does not keep laptops on window display. Laptops would be displayed
on windows and new laptops would be displayed every month.

Laptops would be displayed at Point of sales, ie the average time spend of cash
paying counter is 50 sec. New laptop ranges could influence the sales.

Brochures would be kept at local shops. Brochures would be distributed in

universities and colleges during the exhibitions.

The approach towards dealing with customers would be focussed and training would
be provided.

 

Appointment system would be used for demonstration of laptops to collect laptops.

Focus would be on the time taken to repair a laptop and reduce the retu rn delivery
time. Internet booking for demonstration would be started and 24 hours online tech
support for laptop the customer, would be started to have a competitive need.

Ú
Will be using mobile text messaging services to inform the customer about their
product delivery schedule and time.

0
 

&
 




1

/








2

1
 




 


The analysis of Curry is the follow up of group presentation ³Marketing Plan for
Currys´ in this report. The external environment and internal environment affecting
factors are discussed here. There were few weak points in the presentation
regarding PESTEL and Ansoff¶s Matrix. In group presentation we dint focus on
diversification but in this report diversification was high lighted. Segmentation was
taken into consideration during marketing mix. Company has strategies for
implementing its objectives and I have worked within the framework in this report.
More data and fact sheets are included in this report as compared to the group
presentation.

The approach is a genuine effort to exploit the existing market with its existing
products.

J
2
'
(
 &



P Johnson, Scholes, Kevan, Whittington, Richard, 2008. Exploring Corporate
Strategy. 8 th ed, Prentice Hall

P Kotler, Philip, 2008 Principles of Marketing. 5 th European ed. Prentice Hall

P Kotler, Philip, Armstrong , Gary 2004 Principles of Marketing. 10th th

International ed. Prentice Hall.

P Kotler, Philip, Keller, Kevin 2006 Marketing Management. 12e th Indian ed.
Prentice Hall

P Dibb, Sally Ã
 (2006) Ã 

 Ã 
 
  Ã
Ã. 5th European ed.
Boston: Houghton Mifflin Company.

P Mintel International Group Ltd. (2009) Œ
 
 





.
August 2009.

P Mintel International Group Ltd. http://academic.mintel.com

P The Guardian http://www.guardian.co.uk

P Times Online http://www.timesonline.co.uk

P Currys http://www.currys.co.uk

P DSG International http://www.dsgiplc.com

P PC World http://www.pcworld.co.uk

P http://www.thisismoney.co.uk

P http://www.kpmg.co.uk

P http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/d
isplay/id=474522/displaytables/id=474522

P http://www.thisismoney.co.uk/news/article.html?in_article_id=503475&in_pag
e_id=2

c