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From DMB (Brand Republic) which I read on and off…
DSGi prepares £10m warranties offensive
DSGi, the retail giant that includes Dixons, Currys, The Link and PC World, is planning a £10m promotion for its Coverplan warranty scheme after shifting the business out of its inhouse department and into retail specialist Baber Smith.
The agency won the account, which covers retention and upgrading of existing warranty customers as well as acquisition, following a three-way pitch and the creation of a test direct mail campaign that resulted in a 20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} rise in take-up.
The appointment is the retail group’s first major below the line hiring.
Extended warranties are one of the main profit drivers for electrical retailers but have been put under the spotlight by the Department of Trade and Industry, which brought into force a series of rules regulating their selling last April.
Coverplan is sold by all four DSGi electrical retailers. Its direct marketing manager, Paul Williams, said that the creative of the work will be the main change from its previous direct mail programme.
In January DSGi announced a healthy performance across its group over the Christmas period, with a 2{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} rise in like for like sales. Much of this uplift was generated by strong sales of smaller electrical products such as iPods.
The main challenge facing DSGi in the UK is reviving its Dixons high street stores, which have been in long-term decline as inefficiencies have kept running costs high.
The future of the retail brand is being reviewed by Per Bjorgas, group managing director of DSGi’s UK and International Electricals division consisting of Dixons and Currys.
K.
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