Retail Marketing Report

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Retail Marketing Report


Table of Contents


Executive Summary 4

History of the company 4

Target Market and Positioning 5

Competitors and competitive advantage 6

Retail sector description and environmental factors 7


Retail Format 8

Location strategy 9

Retail mix 9

Pricing strategy 10

CRM or customer loyalty program 11

Communication mix 12


Physical ‘bricks and mortar’ store 13

Website 13

Benchmark against the two main competitors’ websites 14

Mobile 15


Future retail market strategy 15




Executive Summary

The report examines current Dick Smith Holdings Limited marketing strategies and makes the most appropriate recommendations for the company’s future strategies. To achieve the best results the company’s physical stores in Western Australia was visited and observed. As well, the company has a website that was mystery shopped with the primary objective of understanding various strategies that are used by the business. Some of the most significant information concerning the organization’s marketing was found by exploring the how customer services are delivered.

For instance, the way the employees of the company serve various customers who mainly come to purchase electronic products such as personal computers, desktops, mobile phones and other products. Other things that were observed include customer relationship management (CRM) programs, product offerings, pricing strategies, the design and usability of the website, the physical stores, and even the location of the business. In addition to the above, in-depth research on the relationship between the online website and the bricks and the motor store was also conducted to come up with information on the current marketing strategies. Some of the key problems identified include poor leadership and lack of enough electronic products. This has led to the company making massive losses that had earlier on led to the speculations that the firm may close most of the physical stores in Western Australia and New Zealand.

History of the company

Dick Smith Holdings Limited was established in 1968 by Dick Smith and was owned as a family business until 1982. The company developed as one of the best retailers of consumer electronics in Western Australia. It was formerly regarded as the Dick Smith Electronics. The initial location where the business began was a small premise in a car park in Sydney suburb. Research indicates that the total initial capital was AU$610. One of the leading businesses that the company involved in the beginning was servicing and installation of the car radios. However, as the business grew there was a substantial need to move to a better premise. As a result of the increased profitability and the increase of customers the company moved to Atkinson Street in 1969. The owner, Dick Smith, opened a wholesale to run the radio installation and servicing business. The wholesale only dealt with the selling of electronic products. It is worth noting that the company substantially benefited in 1970 with the Radio CB boom. As a result, Dick Smith Electronics began the sale of personal computers (PC) and related electronic components (Dennis at el 7).

Target Market and Positioning

Dick Smith Holdings Limited targets all the members of the society who are interested in the use of electronic products such as personal computers, laptops, and related products. However, the majority of the customers are the people who are employed since they have the money to purchase these products. On demographics, men of the young and working age are the primary customers. This is mainly because these are the primary people interested in technology and related advancements (Levy 8). As well, these are the group of people in the society that have a lot of money to spend on products such as computers, mobile phones, etc. on psychographics, most men in the young generation are interested in the latest technology, therefore, are the majority clients of the Dick Smith Holdings Limited. Finally, on the Market Positioning the company positioned itself in dealing with the retail of only electronic products. The products sold are categorized into the following primary groups: TV and Video, Computer and Tablets, Phones, Cameras, Audio, Appliances, Office Supplies, and Gadgets, Toys, and Video Games.

Retail Marketing Report 1

Competitors and competitive advantage

It is imperative to note that Dick Smith Holdings Limited competes with both brick and motor as well as well as online stores. JB Hi-Fi is one of the biggest and direct competitors of the company. During the time earlier last year when most of the Dick Smith Holdings Limited stores in Australia and New Zealand was to be closed, reports indicated that JB Hi-Fi’s sales were expected to rise as much as one hundred million dollars. The main reason for the intense competition between the two companies is that they operate in a business where the products they retail are closely aligned together (Levy 6).

In addition to the above, reports indicated that the closure of some of the Dick Smith Holdings Limited stores will result in JB Hi-Fi’s increase in earnings of up to nineteen million dollars in the fiscal year 2015-2016. It is worth noting that JB Hi-Fi has some competitive advantages as compared to Dick Smith Holdings Limited. One of the most significant advantages is that the company has a broad range of products that makes it attract more customers and make increased profits. As well, JB Hi-Fi offers lower prices, has large brick and mortar stores, and provides a broad variety of technology products such as computers, mobile phones, DVD players and other consumer electronics. The other competitors include K-Mart and Big W. The online store competitors are primarily the Target, and K-Mart, who as well have an online store where they sell their electronic products to various customers across Australia and the globe (Dana 2).

Retail sector description and environmental factors

Dick Smith Holdings Limited’s current situation reveals a lot since the market of technology products is substantially competitive. However, it is worth noting that most of the purchases are made on the online store because people dislike visiting the physical stores for various reasons. One of the most significant reason people prefer buying products online is that it is convenient, time saving, and cheaper than visiting the physical store. However, research reveals that the company’s retail sector has not been going down vert well. This is the main reason most of the physical company stores had to be closed. The advancement in technology as well has played a vital role in the increased sale of electronic products such as computers, mobile phones, and cameras. Retail sector description as indicated by the research shows that the general retail sector in Australia is substantially struggling. The consumer confidence has been seen as very low, and this has led to poor sales and decreased profits (Levy 11).

On the other hand, it is imperative to note that the online business has been boosted substantially by the increasing advancement in technology. For instance, customers can easily access the internet with the use of devices such as phones and make the required purchases. On the other environmental factors, the Dick Smith Holdings Limited business is substantially affected by the changing customer tastes and preferences. The majority of the consumers’ purchasing power is based on the latest technologies which create significant risks to the business. As such, the products that are considered as outdated will not be purchased.


Retail Format

Dick Smith Holdings Limited is a specialty store that specializes in consumer electronics such as TV and Video, Computer and Tablets, Phones, Cameras, Audio, Appliances, Office Supplies, and Gadgets, Toys, and Video Games. They have a high assortment and a huge variety of products. For instance, as indicated in the organization website; Computers and Tablets range from computers, Network, and Storage, Computers and Tablets by brand, monitors and displays, hardware and accessories. Dick Smith Holdings Limited offers a variety of brands including Apple, HTC, ASUS, Kogan, Lenovo, MSI, Samsung, Sony, and Xiaomi. The availability of various brands enables the customers to choose the best products that meet their needs. The photo below shows how the business layout (Dana 3).

Retail Marketing Report 2

Location strategy

Most of the company stores are located in place whereby it can be easily recognized and accessed by the customers. For instance, an area, whereby there is high foot traffic, is the main places where the stores are located. It is imperative to note that the position or location of the business should be made decisively so that the premise is located in a place whereby customers can easily access the building and make purchases. Most of the stores are located in the shopping malls since these are the primary sites that are dominated by several customers. There are several places where the Dick Smith Holdings Limited business is located. Some of the common areas include Chadstone Stopping Centre, Perth Central business district, Western Australia, Innaloo, and Rockingham in Western Australia. Other locations include Bendigo in Victoria, Marion in South Australia, and Stockland Rock Hampton in Queensland (Baker, Julie, et al121)..

Retail mix

The retail mix of Dick Smith Holdings Limited is based on eight departments of consumer electronics. The categories of products are the following: TV and Video, Computer and Tablets, Phones, Cameras, Audio, Appliances, Office Supplies, and Gadgets, Toys, and Video Games. As a result, the stores layout supports all these categories to avoid confusion when clients want to purchase specific products. Each class of the goods being offered has various brands with different qualities, quantities, specifications, and capabilities. The primary objective of having products from various is to ensure that the client have a wide range of products to make the best solution. For instance, the on the appliance section, there are various categories such as the kitchen appliances, cleaning and laundry appliances, heating, cooling, and air quality and accessories. However, it is profound to note that the business mainly focusses on the mobile phones. For instance, there are various categories of phones section grouped as attractive, wearable tech, phone accessories, and phones by brand (Dana 4).

In the popular phones sections, I noted phones such as iPhone 5c, iPhone 6, and iPhone 6 Plus, iPhone SE, Kogan Agora, Nexus 5X, Galaxy Note 5 & 6 and other models. On the wearable tech section, I note the availability of smart glasses and smart watches. On the phone accessories note various products such as batteries, adapters, cables, Cases, Gaming accessories, external storage devices, Power banks, screen protectors, Hands-free headsets, and other accessories. On the brands, the organization realized that the organization has products from Apple, Asus, Blackberry, Google, HTC, LG, Kogan, Motorola, Samsung, Huawei, and other brands. Different brands design different products with different qualities, capabilities, and functionalities.

Retail Marketing Report 3

Pricing strategy

Four main pricing strategies are used by Dick Smith Holdings Limited with an objective of enhancing profitability and increasing the number of customers leading to competitive advantage. One of the most common strategies is high to low pricing. The company uses discounts in various products all through the year. For instance, during the festive seasons most of the prices are cut off with and objective of promoting other products offered by the company. However, such a strategy has both positive and negative impacts on the profitability of the company.

One of such disadvantages is that most of the clients may wait for the seasons when the products are discounted to make purchases. Price elasticity is the other strategy that is used by the company. This is whereby prices changes from time to time. Dick Smith Holdings Limited as well is known for price adjustments whereby markdowns are provided to give room for new stocks. The final strategy is price discrimination whereby prices are set depending on the brands and functionalities of various products such as appliances, mobile phones, and personal computers.

Retail Marketing Report 4

CRM or customer loyalty program

Dick Smith Holdings Limited has a customer relationship program in the form of a loyalty program. The company clients can register to be members of the company on the online website. Creating the Dick Smith account is free, and only the customer email address and password are required. As such, creating the account, you agree to the business terms and conditions that govern all the operations and transactions of being a member. The program is beneficial since it is one of the ways in which the company can communicate effectively with the customers. For instance, emails with information on latest products, discounts, price adjustments and any other relevant information are regularly sent to the customers. As a result, this CRM program enables the company to be in touch with the loyal customers. On the other hand, it provides a better way in which feedback from the customers can be acted upon by the management.

Communication mix

The communication mix consists of two primary entities namely marketplace and marketspace. One of the major strategies that are utilized by Dick Smith Holdings Limited to market its products in the marketplace is the use of brick and mortar layout and front signage. All the stores have the same logo and yellow color as indicated in the images in the document. The walls are also transparent so that customers can notice different products that are sold in the company. The companies employees are also encourage acting as communication tools whereby they are the ambassadors of the company. The employees are encouraged to promote the various brands that the company offers so as to enhance customer confidence in such products (Baker, Julie, et al121).

On the market space, the primary tool that is used by the company is the online website. The customers are expected to sign up to the system by providing their email addresses. As such, the company uses this address to communicate with the clients in various places. Some of the information send include newsletters, products updates, price adjustment, and any other relevant information. The homepage of the website has a list of various popular products, their specifications, and prices. In addition to above, the company also has a Facebook page whereby various goods and updates are posted for the customers. In such a case, communication is effective since products can be a market and as well customers can communicate various issues to the company (Levy 14).


Physical ‘bricks and mortar’ store

The Dick Smith Holdings Limited store gate is strategically placed in a position where it can be easily accessed by the potential customers. Typically, this is a location with high foot traffic so as to attract more customers. The items as well are organized based on eight main categories namely; TV and Video, Computer and Tablets, Phones, Cameras, Audio, Appliances, Office Supplies, and Gadgets, Toys, and Video Games. Thus, this makes it very easy for the customers to locate the specific products that they wish to purchase. For instance, in the phones sections, customers will see various modern phones such as iPhone 5c, iPhone 6, and iPhone 6 Plus, iPhone SE, Kogan Agora, Nexus 5X, Galaxy Note 5 & 6 and other models.


The company website can be accessed via the following link The site has been designed in such as a way that it is attractive and appealing to the customers. Another advantage of the website is that it has been organized in a manner that products can be accessed in a secure and faster manner. To achieve such an organization, products are organized based on eight imperative groups namely; TV and Video, Computer and Tablets, Phones, Cameras, Audio, Appliances, Office Supplies, and Gadgets, Toys, and Video Games. Under each category, there are several products. For instance, in the appliance section, you will find products such as kitchen appliance, accessories, and others. In addition to the above, there is a section provided whereby customers can search the specific items required for faster access.

Retail Marketing Report 5

Benchmark against the two main competitors’ websites

There is no big difference when the Dick Smith Holdings Limited website is compared to the competitor’s websites. For instance, JB Hi-Fi and K-Mart have closely the same functionalities and website design. The only main difference is how each website aims to attract customers in the form of choice of colors and other usability strategies. One advantage of the Dick Smith website is that browsing for products is easier as compared to both JB Hi-Fi and K-Mart websites (Baker, Julie, et al122).

Retail Marketing Report 6


It is imperative to note that the mystery shopping report for the mobile site focused on whether the business was mobile enabled and the ordering capabilities of that platform. Similarly, it was compared to their computerized website. Some of the observations made are inclusive of the fact that the company website has several menu options. As well, mobile sites have fewer promotions as compared to the online sites.


Future retail market strategy

The following are the most appropriate recommendations for the company retail marketing strategy:

  • They should incorporate downloadable content on the website. This will play a vital role in keeping the customers loyal to the business.

  • The company should invest in research and development so as to come up with ideas that play a crucial role in advancing the operations of the business with an objective of increasing efficiency, profitability, and customer satisfaction.

  • There is a substantial need to advance the CRM and loyalty programs. For instance, the company can organize contests where clients compete to develop the best software for the mobile phones and computers.

  • The business needs to invest on 24hour- 7day service delivery to gain the competitive advantage in the global markets.

  • There is a substantial need for Dick Smith Holdings Limited to involve the use of innovative and creative marketing strategies. For instance, they should focus on investing in their social media presence since these are the platforms with lots of potential customers.

  • Employees need to be trained on new and innovative techniques of serving the customers.


In conclusion, Dick Smith Holdings Limited is one of the companies that have the potential of growth and development in future. As a result, there is a substantial need that the management of the company implements the various recommendations highlighted by my marketing strategy report. In so doing, they will enhance their overall performance, outshine competitors, increase customers, improve service delivery, and enhance their profitability.


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Baker, Julie, et al. «The influence of multiple store environment cues on perceived merchandise value and patronage intentions.» Journal of marketing 66.2 (2002): 120-141.

Smith, Dick. Dick Smith’s Population Crisis: The Dangers of Unsustainable Growth for Australia. ReadHowYouWant. com, 2011.

Dennis, Charles, Tino Fenech, and Bill Merrilees. e-Retailing. Routledge, 2004.

Australia Spending Habits June 2015. Australian Bureau of Statistics, 2015. Retrieved at[email protected]/Latestproducts/6401.0Main%20Features2Jun%202015?opendocument&tabname=Summary&prodno=6401.0&issue=Jun%202015&num=&view

Zeithaml, Valarie A., Mary Jo Bitner, and Dwayne D. Gremler. Services marketing strategy. John Wiley & Sons, Ltd, 2010.

Grönroos, Christian. Service management and marketing: customer management in service competition. John Wiley & Sons, 2007.

Dana McCauley. «Finally, Some Certainty for Dick Smith Workers as the Failed Electronics Chain’s Receivers Reveal When Each of Its Stores Will Close.» NewsComAu., 30 Mar. 2016. Web. 19 May 2016.

«Dick Smith Holdings Ltd.» — N.p., n.d. Web. 19 May 2016. <>.