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Marketing Mix of Carphone Warehouse

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Introduction

Marketing Mix The Carphone Warehouse Group is a customer orientated business that began trading in 1989 and is now Europe's largest independent retailer of mobile communications, with more than 1,100 stores in 11 countries. Product Since trading began in 1989 The Carphone Warehouse has developed a large product mix. A product mix is all products and items that a particular seller offers for sale. Brand is a name or symbol that is commonly known to identify a company or its products and separate them from their competition. The Carphone Warehouse is a band in their own right, but they sell many other brands: Nokia Orange Comms T-mobile (UK) Nec UK Ltd, Sony Ericsson, Virgin Mobile Telecom, Motorola, L G Electronics Samsung, 02, broadband and mobile phone accessories. They offer such an extensive selection of different manufacturer brands so that they can encourage the highest amount of customers possible. For example, if a customer wanted a Sony Ericsson mobile phone, and The Carphone Warehouse did not sell this brand of phone, then the customer would go to the competition. Branding is also a way of staying ahead of the competition. The Carphone Warehouse have diversified their products which brings in Internal Economies of scale i.e. risk bearing. The Carphone Warehouse have introduced new products other than phones, they now offer TalkTalk (broadband), Business solutions and Messaging solutions as well as mobile phone accessories.

Middle

The Carphone Warehouse wants a mix of Stars, Cash Cows and Problem Children with very little Dogs. It is a popular view that business want all Cash Cows and no Stars or Problem Children, but a business with only Cash Cows would be a business with no potential to grow. Stars and Problem children both have the potential to turn into Cash Cows in the future which insures that the business continues to grow. It is important to look at the business product lifecycle. I will investigate the product lifecycle for 3 of The Carphone Warehouse's products: Nokia 3310, TalkTalk and Bluetooth headsets. This line graph shows the life cycle of Nokia 3310 mobile phones which were introduced to the market in 2001. At the beginning of its lifecycle Nokia 3310's were Dogs, and had very low sales at birth then progressed to stars as they were growing and then finally Cash cows before decline and then death. In 2001 they have very low sales but between that time and 2002 they saturated their market which is extremely fast growth. After they've saturated their market the only way is down. Mobile phones are dynamic products which come in and out of fashion. It is hard for one mobile phone product to stay successful for more than a year because the competition designs newer better phones. The Carphone Warehouse offer a range of products which consisted of Stars, Cash Cows, Problem Children and Dogs, They understand that mobile phones do not have a long lifecycle and therefore carryout continuous market research.

Conclusion

Their site is also very successful. As the graph shows The Carphone Warehouse website holds a bigger percentage of the online market than the TV show they sponsor. The Carphone warehouse sponsor big brother - a reality TV show taking place during the summer. The show is very successful and due to be it being broadcasted on channel four, it means there must be commercial breaks in order for the channel four company to gain revenue. The Carphone warehouse is named as sponsor at the beginning and end of each break, which dramatically increases the awareness of the business. Being the sponsor of a TV show means they have to invest a lot of money into it, but they hope through the awareness of the company, it will equal out their profits and help them to achieve their aims and objectives. Two major objectives it will help them to achieve is that to increase market share and encourage more people into the business. In Conclusion: Of all of them I believe that promotion has the greatest impact on the businesses ability to achieve its aims and objectives. Whether it be promoting a product, a product range or the whole business, I feel that promotion is the most necessary marketing tool that a business can use to achieve their aims and objectives. This is because without promotion they cannot encourage new customers into the business as affectively, and cannot therefore increase their profit. Without promotion it will be increasingly hard to grow as a business because they will not be receive more revenue from new customers.

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