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Carphone Warehouse | Marketing Analysis

Carphone Warehouse

Marketing is a term that is often misunderstood to indicate only reselling and advertising, however, it encompasses a lot more than that. Armstrong et al 2000 defines marketing as a public and managerial process where individual categories obtain what they want and want through creating and exchanging products and value with others. In other words marketing involves gratifying customers needs and wants, it looks at the merchandise and services provided, the demand to them as well as the partnership which exist in the various markets.

This project will focus in depth at one of UK's most successful telecommunication business in the late 20th century. It examines how the business Carphone Warehouse came to be so successful regardless of the many competitors experienced, how the business environment is changing and how many other markets of telecommunication it can venture into. In addition, it look at a very important marketing term, Value Preposition and other marketing tools that Carphone Warehouse may use to ensure that they remain unique from its challengers.


  • Will use tutors help and lecture notes to gain an improved understanding of subject matter area
  • Will use the internet to do a more extensive research on various subject matter areas
  • Will also use various literature to aid in describing marketing conditions and techniques relevant to the tasks
  • Will inquire to get more personal and detail information from Carphone Warehouse by means of questionnaire and interview.


Carphone Warehouse was initially started from the balcony of its founders smooth Charles Dunstone and co- founder David Ross in 1989. They began with only six thousand pounds by offering car phones. As time goes on they form a little cellular phone shop on London's Marylebone Street, since that time business grew and it is becoming one of the UK's most successful telecommunications businesses creating a turnover of about four million pounds in 2007. It now combines a retail procedure across 11 countries with an extensive and growing telecommunications services business. Currently it is Europe's leading independent mobile communications retailer, with a turnover of 2, 220 million in 2005. The Carphone Warehouse has grown rapidly in its procedures lately through its acquisitions of services companies such as Talk-Talk and Opal Telecom. In October 2007, significantly less than 20 years because the company started it joined the FTSE 100 Index of leading stocks. http://en. wikipedia. org/wiki/Carphone_Warehouse. html looked at on 20-04-08


Charles Dunstone was created in Saffron Walden, Essex and was educated at Uppingham College. Even though he didn't go to school Charles knew precisely what he sought. He emerged to came to the realization that their was a need for people to make calls away from their homes or general population telephone bins hence he came up with the idea of creating telephones whereby people have the opportunity to utilize them from the vicinity of their autos, hence the name Carphone Warehouse.


Carphone Warehouse and its own owner used a strategic approach that led to the success of the business. Because of his innovativeness being the one retailer at that time to provide customers phones of their cars this made it different from all the business on the market so for a time he was the market leader, he previously little if any competition. He also experienced a clear target at heart, he recognized that customers are of paramount interest in any business and thus focuses attention on gratifying customers need. He had a good relationship along with his customers, staff and suppliers similarly. As was shown in the company's purpose and objectives and the 5 key guidelines that govern the business enterprise, a few of these are as explained regarding to Charles Dun natural stone, "If we don't look after the customers. . Another person will nothing is gained by being successful an argument, but losing a customer. Always treat customers even as ourselves wish to be cured.

Base on these claims Charles Dunstone demonstrates that customers' satisfaction was his main goal and he'd do anything to ensure this. He allows personnel to express their knowledge and understanding in the marketing propositions, which added to the success of the business enterprise. In the average person shops his staffs received the opportunity to give advice to customers on the best products and payment methods that would fulfil their needs.

He also would utilize more teenagers would you not only focus on the younger era in the market to buy but is also seen by many as building the overall economy and buying the near future. He offers training and promote staff base on performance or merit so therefore his employees can answer the questions that customers may ask and offer solutions because of their needs.

Carphone Warehouse has turned into a well-established identified brand and has used it to impact as a deterrent against its rivals. It recognises that in order for them to remain competitive and successful the have to make a product/service which will be far superior to that of its competitors and that is why it is getting excited about extend further in the telecommunications market by not simply offering mobile phones services but also to be one of the main providers of internet services.


Carphone Warehouse is UKs leading indie retailer of devices. He realize the needs of the folks and has generated a product that hasn't being present before in the market, he offered customers the opportunity of conveniently making phone calls from their cars rather than their homes. As was shown in his objective statement, he attempted to become the market leader in this area of business, "our mission is to become the store people definitely visit when they may have dependence on mobile communication equipment (Charles Dunstone).

In recent years Carphone Warehouse has try to stay competitive different and live up to the expectations it has created by branching out into other domains of telecommunication as one with their objective claims, "the reputation of the company is in the hands of each individual. Apart from providing car telephones they also have widened into providing landline services and with the new notion of internet providers they have also began to provide super fast landline and mobile broadband services. This ensures that customers can get almost all their telecommunication needs in a single deal with one company. This also shows the ability of the business to conform easily to changes in the market and combine both industries efficiently.

Another reason Carphone Warehouse was so different from its competitors is the fact that it provides training to his staff and has make use of specialist in this field which is very important for both business success and the employees. He offers customers bonuses to buy by means of warranties and a complete freedom warranties and options on payment tariffs. The business acted as a good intermeditory between other sellers and customers therefore it is easy to form partnership and good customer service.



Every business must face at one point or another change in their business environment in which they haven't any control and must conform (Hart 1994). The environment produces both threats and opportunities and is therefore very important for businesses to analyse these factors meticulously. These may influence the ability of a company to meet its customers and continue to be competitive as in the case of Carphone Warehouse.

Other factors include economic, politics and legal, technological and ecological as well as cultural and social factors (Armstrong et al 2000).

Carphone Warehouse needs to act on the advantages that the market environment provides and its own goal even in its new market ought to be to continue to build good customer romantic relationship by creating customer value satisfaction. This might include reassuring suppliers, retailers and the public that it's able to provide both mobile and internet services as well as protecting the companies shares since investors have become more worried about company's future. They could form successful collaboration with suppliers and other stores. This was visible in 2006-7 when Charles Dunstone bought AOL one of UKs biggest Online sites providers.

Apart from specialising in mobile networking it has got into the landline market with Talk -Have a discussion services. This was a very proper move because Carphone Warehouse can now offer customers very fast internet and mobile broadband and other telecommunication services into one ideal package deal (http://www. timesonline. co. uk).

So even though Carphone Warehouse may have lost one of its most significant stores Vodaphone, it has now entered into partnership with Virgin Mobile who is not only a very competitive company of mobile services but also an event supplier of internet services. These changes within the business enterprise show that Carphone Warehouse can adapt and battle the technical changes available. Technological change ends up with improving existing products and services, better customer services, lower prices via cheap operations and distribution method (Ali 2001).

Most telecommunication companies are not adversely afflicted by inflation because technical change makes goods of the same price more valuable. However it is mostly afflicted by deflation (Global Makeover on Thu, seen on 05-05-08). Tax is another concern that Carphone Warehouse would have to be familiar with, Government businesses and legal bodies have instituted taxation designed for these businesses for example, tool users duty and business and B&O taxes which are usually imposed on the telecommunications providers and a universal service fund surge charge which they are anticipated to adhere to in providing available basic telecommunication services for almost all their customers at an affordable price. (http://globalmakeover. com/?q=blog/3, 6/05/08)

Since the population is rapidly growing, scientific has advance which is swiftly changing, Carphone Warehouse need to maintain with these changes and create useful and affordable packages for customers in order to remain competitively successful. The younger generation especially wants a lot more from technology and be easily bored with it, it's important for Carphone Warehouse to focus on this section of the marketplace and develop product/services that can help such demand and regular change.

The physical environment must be considered since the government is requiring that companies should make an effort to become green and keep pollution to a minimal. It is necessary that Carphone Warehouse adhere to government regulation in their bet for energy efficiency operations, biodegradable deals and ecologically safer products. Politics and legal factors impact a company's marketing decisions for example, design, labels, packaging, syndication and ad of products/services (Hart 1994). Just like the swift changes in technology, administration polices and regulations are constantly changing therefore they need to ensure that they keep up to date in order not to violate any regulations or polices set out by these governing bodies or agencies. Since Carphone Warehouse will be entering a new portion of business, the internet, there are legislations that govern this area. These include privateness and confidentiality, integrity and authentication and even encryption.

The economic environment deals with the purchasing vitality of consumers as well as their spending style which is largely affected by income distribution, hence factors such as inflation rate, taxation, interest and wages have an impact on the demand and sales of products and services (Meldrum et al 1995). Taking each one of these factors directly into consideration Carphone Warehouse must create something and service that will capitalise on all the opportunities that change may bring.



A Value Preposition includes the total of benefits which a seller promises a customer will obtain in substitution for the customer's associated payment or other value-transfer (http://en. wikipedia. org/wiki/Customer_value_proposition). In addition, it describes the customer's problem, the perfect solution is to these problems and how the customers experience your solution to that problem. It really is based on the partnership an enterprise have with the customers.

It can be said that value preposition is dependant on values which includes emotions, behaviours, attitudes, values and integrity. Marketers can use these to stir emotions and desires of the customers to purchase goods/services by attacking their subconscious which intern will induce behaviour or action.

Customer beliefs are based on assumptions and anticipations and will respond if these prospects are meet. They are also affected by how they are treated and exactly how well a business offers what they guarantee. Therefore it is important for Carphone Warehouse to comprehend the needs of its customers and produce a product/service that will take the hearts of potential customers. One way of doing so is through customer feedback by creating systems such as the Customer Marriage Systems Software which collects, examine and process feedback from customers which can only help a business to know what customers want or needs from a corporation and those customers that are most profitable to the business enterprise (tutors note Achieving functional Excellence and Customer Intimacy pg 376).

They also have highlighted very briefly their customers' value preposition by saying, "they always deliver what they guarantee. If in uncertainty, under promises and over-deliver, as mentioned by Charles Dunstone. This strategy should persuade customers of the need to use their services instead of their opponents.

Product quality is important since customers are aware of what they want and how this can be satisfied at the right price. CPW would need to ensure that in their invention of offering internet services to customers that they continually improve their product/services so that customers will not be bored or turn to other manufacturers offering newer and better products/services. This new product/services should offer significant benefits to customers, irresistible and so engaging and attractive that customers cannot refuse hence, regardless of what the price maybe they will buy or use the merchandise since it offers value for money. Among the propose profit Carphone Warehouse has wanted to customers is broadband service with free laptop, this might be adding value to their product and customers will be inclined to utilize it because they are benefiting.

Single value self-control is when a company focuses on the best total cost, best product, or best total solution to give with their targeted customers. Service and customer intimacy moves beyond the best price and product, it has the right collection of product/services that increase customer satisfaction, less expensive for acquiring and retaining customers. (http://www. 1000ventures. com/business_guide/crosscuttings/customer_vp. html viewed on 22-04-08)

These are of help tools CPW can use in the new market. Actually they have have ideas and have employ a few of these tools in the mobile phone industry. For instance Dunstone seeks and objectives are customer orientated that is, the customer always comes first.

An for integrity, they can keep their offer in fulfilling customers objectives, thus customers will develop a feeling of loyalty in the new market. They are able to also transfer creating customer intimacy of their cellular phone market by keeping good relationship with their customers; offer deals that could give value for money and have well trained specialist that'll be able to give customers total solutions to their telecommunication problems. By responding to customers needs, offering them exceptional services this can not only reduce customer churn but also increase sales and expansion in the new market of internet providers.


To maintain competitiveness and market recognition even in this new industry of Internet providers CPW can apply a few of the various tools and techniques used in their mobile networking business. However since there exists other competitive Internet providers CPW will have to consider how to make a service and presentation which will be superior, exclusively different and draw in customers thus maintaining the same quest affirmation as their original business but with the number one professional of Internet services instead.

They have previously started using some of the marketing tools and techniques such as increasing promotion through sponsorship of television programmes such as X Factor and Big Brother and getting into collaboration with other Internet providers such as Virgin Mobile.

Since this area is not used to CPW it might be best to get some ideas or understanding of this new market by studying the markets of its rivals since they have significantly more experience in this area. It is important to allow them to know who their customers are and their buying behaviors, the type of service they are expecting to receive, so that they will know how to create the right package, the optimum time to market their services and easy and simple & most effective selling strategy to use (Ali 2001).

Carphone Warehouse could track down their rival's promotion material through advertising or journals and modify or transfer ideas that will help to boost services and gain competitive edge by growing superior product/ services. In addition they need to keep monitoring the strategies their rivals are using, what they deliver to their customers and those prove to be more lucrative (Hart 1994).

The marketing blend is the most effective tool to use in this respect. It can help to encourage customers why they should buy or use your services. It really is based on the place or circulation of your product/services (Meldrum et al 1995). Bottom on research Carphone Warehouse has numerous retailers at different locations; however syndication also includes utilizing specialist for service maintenance and trains their employees in order to offer good customer service in this new market of internet providers.

They also need to ensure that product/services are fully functional that is, no specialized malfunctions will happen when using their services. They should be able to deliver to customers what they assure, for example, by providing workable, scalable systems so that customers are not kept without internet services this might also assist in their success. (http://en. wikipedia. org/wiki/Carphone_Warehouse - 20-04-08)

Promotion and costs plays an integral part running a business success. It can help to inform, persuade and impact customers to buy or start using a service. They are able to do this by telling potential customers about the benefits they be prepared to acquire and promotional offers through television advert, news release, radio broadcast, posters, flyers and mags. When they are advertising their cellular phone discounts CPW can also add they have become a company of internet services combined with the other promotional activities that is included with it. Among such offer is free broadband within a program; whereby an individual subscribes for a have a discussion package Talk Discussion3 and a series rental package immediately from CPW rather than through an intermeditory.

They can also get customers by creating loyalty strategies, free studies for a specific period; personalize service from trained staff and on site maintenance. These techniques will mirror your commitment to the customers' which will make them more ready to use your product/services.

Price can pose a challenge since customers seeks affordability and cheaper alternatives. Carphone Warehouse will have to create a costs strategy that will offer you customers affordability but at exactly the same time be able to cover company's cost and make a profit. It is important for Carphone Warehouse to review other company's charges strategy since customers will compare prices and then decide were to buy and whose service to make use of. They should be flexible and also have the ability to negotiate charges especially to other vendors.

Another important technique CPW could use is comments from customers. Since the company has recently form established clienteles they might use questionnaires, comment cards, focus organizations or customer sections for their judgment on the new services offered through internet networking emphasising the benefits expected to receive( Ali 2001). Customers should feel proficient in using their services thus creating a trustworthy marriage with the business so by writing, telephoning or even emailing them about the new services would be just like telling them about a new promotional offer or an advancement to something.

Endorsements and testimonies can be very helpful. People tend to believe in what others say or think about your product/services particularly if it is recommended by stars (Baker 1989).


Based on the considerable research done on Carphone Warehouse it could be said that in order for it to remain a success and at a competitive advantage compared to that of its competitors, a business that individuals definitely visit for mobile communication equipments and in extension internet services, it is important that they capitalize on advantages changes may bring to the technological market and generate a value prepositions that customers will fine very challenging to refuse.

Effective marketing tools and techniques are the key in making certain Carphone Warehouse is a success even in its new endeavor of internet providers. It is their responsibility to create stronger product/services that can make customers more pleased and ensure greater profits.

From this research I have come to the knowing that marketing as was launched right from the start involves much more than simply advertising and retailing but rather it check out people's behaviour, prices and behaviour and manipulate these occasionally to satisfy their desire.


Ali Moi, Marketing Effectively 2001, Dorking Kindersley Small, London

Armstrong, G. and Kotley, P. Marketing An Intro 5th edition 2000, Prentice Hall Inc. New Jersey.

Baker J. Michael and Hart S. Marketing and Competitive Success, 1989, Billing & Boy LTD, Worchester Great Britain

Dun rock Charles, NCC Marketing Course Work, June 2008

Hart Norman, Effective Industrial Marketing, 1994, Kogan Web page Limited, London

Meldrum Mike and McDonald M, Key Marketing Principles, 1995, Macmillan Press LTD, Hampshire, London

Tutors notes- Attaining Operational Superiority and Customer Intimacy pg 376).

http://en. wikipedia. org/wiki/Carphone_Warehouse viewed on 20-0408

http://en. wikipedia. org/wiki/Customer_value_proposition looked at on 18-04-08

http://www. 1000ventures. com/business_guide/crosscuttings/customer_vp. html viewed on 22-04-08

http://GlobalMakeover on Thu. Viewed 05-05-08

http://www. timesonline. co. uk 24/04/08.

http://globalmakeover. com/?q=blog/3, 6/05/08

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