Marketing Fundamentals: Analysis of ASDA's Marketing Strategies
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This project analyzes the marketing strategies of ASDA, a UK supermarket chain, using VIRO, SWOT, Porter's value chain, PESTLE, and Porter's five force analysis. It also discusses the impact of Covid-19 on the organization.
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Marketing Fundamentals
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TABLE OF CONTENT INTRODUCTION..........................................................................................................................3 MAIN BODY...................................................................................................................................3 VIRO analysis..............................................................................................................................3 SWOT analysis............................................................................................................................4 Porter's value chain analysis........................................................................................................5 PESTLE analysis.........................................................................................................................7 Porter's five force.......................................................................................................................10 CONCLUSION..............................................................................................................................12 REFERENCES..............................................................................................................................13
INTRODUCTION Marketing fundamentals are all the core activities involved in the marketing which are related to product, price, promotion and place. It is considered to be the change which is the concept of everything that revolves around the different principles which changes the models for expanding with the basic principles.For this project the chosen organization is ASDA which is UK supermarket chain which deals mostly with different types of home related products and groceries.This project will help in understanding the processes and the different stages of marketing. In this project the understanding of the different roles of the marketing environment andothersituationalanalysismodelisidentified.Thisprojectisalsodeterminesthe segmentation targeting positioning of the marketing mix strategies of the company. In this project the impact of Covid-19 pandemic on the internal and external environment of the organization is analysed. This project will also discuss the different impacts which this pandemic has had on the organization. MAIN BODY VIRO analysis VIRO analysis in the marketing is considered to explain the four main internal attributes which provides the organization with competitive advantages. In this model the talk about the organizations resources and capabilities are discussed as follows, Valuable : The resources which some companies have are considered to be strategical exploited with the different opportunities and help the company to defend it with different threats. It helps the company in holding some value in the services and products it provides to its customers. Resources which this company have are considered to be very helpful for the company in providing customer satisfaction which increases value of the customers (Ramdhani, Baga and Nurhayati, 2021). Due to the Pandemic these resources of the business has been effected as the company had to fire many of its employees so that it can decrease the amount of loss it was suffering. However, this company continued to review the values of its resources which involved, supermarkets, stock, employees, machines and other assets. Imitate :
The cost that other companies would have to incur for imitating the marketing methods and other operation of the organization is very high. This shows the rarity of the marketing practices of this company. This is the way in which the company is able to achieve competitive advantage as company. It is the limitation of the imitation which is considered to be very helpful in the management of the condition, casual ambiguity and social complexity. Rare : The different resources of marketing which the company uses is considered to be actually veryrarecomparatively.Theserarevaluablesprovidethecompanywithacompetitive advantage. There are few companies which have the similar resources which provide competitive parity to the rare resources (Kotler and et.al., 2012). The organization needs to focus on not losing the valuable resources as they are the ones which provide them competitive advantage. Organized ; ASDA and its management is known for being very strong as they have utilized their resources with maximum value and organize the management systems, process, policies and strategies which is fully utilizable for the resources that provides value rare, cost for imitation (Sakinah and Wibowo, 2021). In the Covid-19 pandemic this organization has been able to successfully develop a strong unity which allows the business to grow strategically the better performance in the management of the organization. SWOT analysis This frame work is the one which provides the analysation of the internal factors which impacts the performance of the organization. It also talks about how these internal factors impact the marketing of the organization. Strength : ASDA is that premium retail chain which employees more than 50000 people all over the world. These people are important for the talent management of the organization. It has different range of apparels which also include menswear, children wear, footwear, accessories and home products (Singh, 2017). This diversity of the products help the company in its marketing. The quality of the products of this company is said to no advertising cost which is helpful for the business to have positive word of mouth marketing. Weakness :
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It is said that through intense competition the premium fashion segment is considered to beveryhelpfulforbeinglimitedinthemarketsharegrowth.Theoutsourcingofthe manufacturing of the apparels is helpful for leading the inconsistencies which is considered to be the essential for the quality of the inconsistencies. It is said that through the application of inconsistencies is helpful for the business to be useful for the marketing in better decision- making. Due to the increase in the Covid-19 this organization suffered a lot like all the other companies (Jain, 2020). The impacts of the Covid-19 pandemic is seen as it had to fire off the many of its employees. The biggest weakness of this organization is that it had to suffer from huge competition from the different other competitors. Opportunities ; This organization is yet to expand its business in the different countries which could be the reason due to which the organization is able to gain interesting trends for the company. Different opportunities of the marketing in ASDA are also to have strategic partnership which helps the company for expanding the business. It can be said that with the help of diversification in the products range tapping through different online channels can also be helpful for the company to develop more revenue (Housden, 2007). The market is recovering from the downfall of the economy as it has the potential of developing its business and give it a new fresh start with the application of online business practices. Threats : As this organization has a limited global presence this shows the different types of weakness of this organization. The threat of another pandemic or increase in Covid-19 cases is always a threat to this organization as it decreases the productivity levels (Phan, 2021). The competitors are able to increase its marketing practices through the increase the technology. In comparison to the other competitors this business does not have the diversity which could provide it marketing benefit. Porter's value chain analysis The model of Porter's value chain analysis is business management concept which is used for competitive advantage with the internal analysis of the organization. This explains the collection of activities which are performed by the company for creation of value towards its customers. It has two generic categories of activities, PRIMARY ACTIVITIES
Inbound Logistics : Activities of ASDA which are associated with the receiving, storing and disseminating the inputs of the products. These practices of the organization include the warehousing of physical products and storage of the customer's information through digital methods. It can be said that this is helpful for inbound activities of the business (Understanding How Value Is Created Within Organizations, 2021). Operations : OperationsofASDAisthatofaretailerinwhichitpurchasesproductsfrom manufacturers and then sells it in its stores. This organization has many manufacturers which are known to be the most effective in providing the company with good quality of products. The manufacturers are from the developing countries thus, this organization faced major production problems during the pandemic. Outbound Logistics : This company has recently started its business on online platforms due to which it's had to significantly improve its logistics (Marques, 2019). This was helpful for the company to continue its operations even during the pandemic. With the help of a operation such as collections, storage, and distribution system the business has been able to gain efficiency in its outbound logistics. Marketing and Sales : This is the process which is used by the organization for influencing the customers to buy the products from ASDA and not other competitors. For this strategy the company uses more of no voice marketing strategy as it believes that the product quality and prices is efficient enough to provide the business with competitive advantage. Services : These are the activities which are related with the maintenance of the value of product and services which helps the company to develop its services. This can be said as the services which the company provide to its customers after the sales has been made. It is also the way in which the organization focuses on the development of the marketing. SUPPORT ACTIVITIES Procurement :
The resources of this organization are the stock, employees and the premises. All these are assets which the business get through some sort of investments. The manufacturers of this company are mostly fixed as it is retailer and does not make its own products. This organization has a Human Resource management which manages the requirement of talent and this company has stores in different parts of the world which are considered to be most useful resources. Human Resource Management : The role of this department is very important as it manages all the human relations in the company. It can be said that the application of the ways in which the company recruits, hires, trains, motivates and rewards its individual is the responsibility of human resource management to handle (Jäckering, Fischer and Kehlenbeck, 2019). The creation of good value is done by the members which are hired by this department. Technological Development : ASDA since the rise of the global pandemic has given great efforts towards the ways in which it can ensure the online services in which it believes. The minimization of the different information are considered to be a way in which the company has been able to develop the technology and its cost through staying current with the creation of value and product quality. Infrastructure : ASDA has many stores in UK and also other countries, it has focused on increasing its infrastructure more though building larger stores which would attract the attention of the customers. This company launched its super store which was larger than all of its other stores that was the plan of this organization to be effective in the marketing. PESTLE analysis The analysation of the marketing efficiency of ASDA can be done only by understanding the effectiveness of the external factors that effect the practices of the company. Strategy of this company has been very effective is used for being successful in different countries. This organization faced very tough competition despite which it has managed to cope up with the core competencies of the external environment. Political Factors : The political risk which the company has needs to be the result of the constant rules and regulations which the government provinces. It can be said as that friction is caused in the legal frameworks which is applied to operation of the company (Saudi, 2021). It can be said that the
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agreement of the enforcement of the law is helpful for the creation of confidential understanding of the ways in which the business would be able to achieve inclusion of the failure which allows the currency to be converted in the risks of commercial agreements. The laws regarding the pandemic can be said as the way in which the government policies are impacting the business practices of ASDA (Callingham, 2004).This has decreased the number of customers visiting the stores due to which the sales has dropped for the company. Economical Factors : Since the rise of the Covid-19 pandemic and also Brexit rules being implemented the UK economy has been ongoing devastating recession. This has been the reason due to which all the different marketing in this country has been effected negatively. For this organization it is very important to ensure that the recognized increase or decrease in the interest rates which directly influences the prices of the products. In order to survive in such a market downfall the company had to decrease its additional expenses which are mostly related to marketing (Saudi, 2021). The GDP of the organization is considered to be had strong influence in the monetary fund which holds the effects of the recession which has low exchange rate which is made up of the import and export operations. Social Factors : The growth in the global population has been increase of the market which has impact the business of the organization positively. The mentality of the customers after the pandemic have changed as they are not more concerned about purchasing products for their necessities. Growth of company is also influenced by the company's decision which is related to the management of the organizational practices. Due to the increase in the area of analysis the taste, preferences and area analysation of the business has been effected which is considered to be the way through which they have been able to implement strong organizational operations. Development of the online business by this company related to the social changes which are a remarkable way of developing the business against the competitors during the pandemic. Technological analysis : Analysation of the organization technological advantages of the organization is that it is able to develop innovation. This is considered to be the helpful idea of the business which essential for the business performance (Taleizadeh, Soleymanfar and Choi, 2017). There are differenttechnologicalinnovationwhichmightprovidethebusinessdevelopmentwith
enhancementintheoperations.Currentissueswhicharepresentwiththetechnological uncertainties helps the business with economical and social changes. There are other reasons for which the technological improvements are issues for the company. These reasons are heavily involved with the technological ways in which the company want to bring success in the organization and focus on Covid-19 regulation for being met. It is important for the business as the company is able to use them for daily work such as the fraud, shoplifting, misconducts and others. Legal Factors : The efforts of the organization would go in vain if the company does not follow the rules and regulations which impact the business terms, trading policies and taxation. The insurance policies, wages and salaries need to managed properly as it will become issues for the company in the long run. Thus, it can be said that the strength of the organization needs to be essential for the business which allows the company in the maximization of the strengths for the production of the definitely against the law. The issue of the customers are considered to be the commitment of the production which helps the business proper regulations to be followed as an employee and employer. Regulation of the laws is considered to be very essential for the employer-employee relationship which helps the business to keep its operations going without being interrupted. Specially after the Covid-19 pandemic the organization needs to ensure that it is following the rules and guidelines which are planned for the business. Environmental Factors : The CSR activities of the organization is effected due to the practices of the organization with the environment (Wood and et.al., 2021). These practices are said to impact the brand name of the organization. It can be said that with the better analysation of the environmental issue caused by company is able to develop ways in which it can limit the exploitation of the natural resources. This organization has focused a lot on management of the organizational operations which has created a great dilemma in the business for different competitors. Good practices related to CSR can allow the business in the creation of the essential growth of business organization. With plantation of trees and plants the business is able to grow its care towards the environmental benefits this will result in the growth of the organization marketing operations.
Porter's five force This is model which helps an organization in the analysation of the competition faced by the organization. This is considered to be the very influential in the analysation of the company's performance which is helpful for the determination of the business practices. Threat of New Substitutes : For this organization the substitutes are generally the products from the same industry. As there are many retailer so that company has to face a huge threat of substitutes. Clothes are the primary product of this organization as they are known to be one of the most commonly known product which are substituted in different forms (Malhotra and Aggarwal, 2019). The elasticity of the demand of these products is always high as the customers have a lot of options to choose from. This organization has tried to keep the level of substitution at the minimum as it with the help of the quality of the product and valuable brand the company it is very hard for any organization to replace it. They try to provide different types of discounts to their customers which help the customers in facing very high switching cost. Prices of the clothes of ASDA is comparatively low which is the reason it is helped with the emphasis of the value. In order to maketheproductmoreandmoreimpossibleforthecompetitorstoimitatethem.This organization has used technology for its advantage for facilitating online shopping or better performance of the company. Competition intensity : The UK retail industry is very competitive in comparison to any other industry in this economy. Highly competitive environment of this organization is considered to be the biggest issue faced by the company. It can be said that the intensity of the competition is considered to be facing establishment for their business in the country (Byun and et.al., 2020). The intensity of the competition is considered to be the major challenge for the company over company. Some companies which give this organization immense competition are the Gap, Top Man, Zara and Oasis. These are competitors which are known for the quality of their product. It can be said that the increase in the competition of ASDA has let to a significant loss of the client. Apart from this the company also faces challenges which are related to the challenges which are faced by the company are the barriers which impacts the company's performance. Challenges faced by the company are considered to be the very intense. Threat of new entrants :
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Similar to the threat of new substitute the threat of new entrant is very high as the business model of this organization is somewhat very popular. This shows the efficiency of the organization in the management of the operations. However, the requirement of establish of retail business requires large amount of capital which can be said as a very difficult issue for the application business practices (Mohapatra and et.al., 2018). ASDA has been able to develop its brand name and image with the help of the practices that involve quality of products, CSR practices and the quality of services which the business has provided to its customers. It can be said that the business can increase the production of its organization with the application of the growth opportunities in the business. This organization needs to make sure that it is able to keep its product price lower such that the other companies are not able to improve the productivity of the business. Bargaining power of buyer : The customers of this industry are known to have very high power of bargaining due to the number of total competitors which provide the customers with different options which they can choose from. It can be said that the customers are very sensitive for the prices of the products. The customers can change their choice of brand if there is little difference in the switching cost. Thus, it is important for the company to make sure that the business needs to review its prices upwards and it needs to contribute to the productivity of the organization which can be considered as the reason for the high cost of production. The increase of the prices are very effective for the company and as a result of this the business needs to provide great sense of fashion for the company to be global accepted. There are ways in which the company can help the business with low cost of production so that the business can bring effectiveness in their operations. Bargaining power of suppliers : The suppliersof this organizationwhich are manufacturersthat are found in the developing countries do not have much bargaining power as there are many other manufacturers for the company to take their products from. Due to the increase in the Covid-19 pandemic the businesses of the suppliers have decreased a lot as they are not able to survive the economic recession which was caused by this pandemic. The low suppliers power which are currently putting more pressure on the suppliers as their prices of raw materials have increase a lot due to the economic recession which has come in the UK economy.
CONCLUSION With the help of this project it can be said that Covid-19 can be said as the main reason behind the downfall of the ASDA marketing in the competitive environment through both the internal and external analysis. This project has utilized different types of models for the analysation of the internal and external factors that impact their marketing performances. In this project it is very essential for the business to ensure that the business is able to improve the organizational performance. This project has been able to analyse the organizational performance in Covid-19 pandemic through internal and external analysis factors.
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