Marketing Analysis of ASOS Company

The assignment content discusses the marketing problem of ASOS Company, a largest online fashion independent brand of UK, which is facing failure to do effective branding and mismanagement of resources. The company should adopt various marketing strategies, such as online branding and advertisement on local and national television, to build its brand image in the eyes of consumers. A PESTLE analysis reveals that the company should consider political, economic, social, technological, legal, and environmental factors when building strategies. Porter's five forces analysis shows a high threat from new entrants, substitutes, and existing competitors. The SWOT analysis highlights the company's strengths, weaknesses, opportunities, and threats, with recommendations for improving its brand image and increasing sales volume.

ASOS COMPANY
Marketing Assignment

Table of Contents
Introduction....................................................................................................................................................2
Marketing problem & implications................................................................................................................2
Proposed solution & objective.......................................................................................................................2
PESTLE analysis...........................................................................................................................................2
Porter’s five forces Analysis..........................................................................................................................4
SWOT analysis..............................................................................................................................................6
Situation Analysis..........................................................................................................................................7
Conclusion.....................................................................................................................................................7
References......................................................................................................................................................9

Introduction
In this present paper, we will discuss the marketing problem of ASOS Company which is a
largest online fashion independent brand of UK (ASOS et al., 20161). The company offers sixty
thousand branded and label products of its company in two segments. Namely, menswear and
women wear. The company deals in various products such as shirts, shoes, beauty, lingerie,
dresses, jeans and others. The paper also describes the solution and objective of the problem,
PESTLE analysis, porters five forces analysis, SWOT analysis, and situation analysis.
Marketing problem & implications
The marketing problem of the company is the failure to do effective branding which impacts on
the sales volume of a company and mismanagement of resources. The company has major
competitors in the market who are providing the similar products which impaction the brand
image that directly influences on the revenue of the company (Kotler et al., 2015).
Proposed solution & objective
The company should adopt various marketing strategies which help to build the brand image in
the eyes of the consumers. The various promotional activities should be conducted by the
company such as online branding, advertisement on local and national television which helps to
build the brand image in the eyes of the consumer.
PESTLE analysis
Below is the pestle analysis of ASOS:

1. Political segment
The various political segments which impact the performance of the company are taxation
policy, privatization, health and safety regulations, public expenditure controls, government
stability and the European Union directives. The company is facing the risk due to
government stability in the new emergence economy.
2. Economic segment
The economic factors which impact the performance of the company are inflation rate,
business cycle, a rate of unemployment, disposable income, the cost of labor, and prospects
of economic growth. The policy and strategy of a company should be made by considering
various economic factors.
3. Social segment
It comprises of values in society, lifestyle, consumer taste and preference, education level,
and demographics (Fernie et al., 2015). The company should use consumer-centric strategy
because the change in the consumer taste and preference highly impacts on the sales volume
of the company.
4. Technological segment
The rapid development of technology creates new competition in the market which impacts
on the brand image and revenue of the company. The technical department of a must
innovates in order to differentiate its products from the market.
5. Legal segment
The company should implement employment law, business regulations and company law
which impact on the performance of the company (Team et al., 2013).
6. Environmental segment

The company should increase its corporate social responsibilities such as recycled packaging
which helps ton protect the environment.
The following figure shows the PESTLE analysis:
Source: (Team,2013)
Porter’s five forces Analysis
Below is the porters five forces analysis of ASOS:
1. Bargaining power of buyer
The bargaining power of consumers is high because the consumers have various choices
which are provided by the competitors.
2. Bargaining power of suppliers

The bargaining power of suppliers is also high because the supply chain mainly depends on
the supply of raw material on time which directly impacts on the brand image in the eyes of a
consumer.
3. Threat of new entrants
The threat of new entrant is also high because it is related to the clothing industry in which
easy entry and exit are allowed.
4. Threat of substitutes
The threat of substitute is also high because there are new competitors can enter the market
easily with various marketing strategies (E. Dobbs et al., 2014).
5. Threat of existing competitors
The existing competitor’s threat is also high because the similar products are providing by
the major competitors in the same industry.
The following figure shows the Porter's five forces analysis:
Source: (Magretta, 2013)

SWOT analysis
1. Strength
The company has the merchandising strength which includes the exclusive and diverse array
of brands, the unique variety of products, and free shipping across the globe. The
management of the company is very efficient and effective. The employees are continuously
working with the passion for innovating the products.
2. Weakness
The company only services in an online mode, and they do not have any stores. Another
weakness is that the company does not advertise on any marketing platform. The company is
also providing free shipping which directly cuts the hundred million pounds from the annual
sales.
3. Opportunity
The company can sell diverse its products with innovative skills which are an opportunity for
the company. The mobile app is also an opportunity to explore in the market.
4. Threats
The threat for the company includes the change in consumer taste and preference, change in
industry trend, new marketing strategies, and innovative products provided by the consumer
(Birinci et al., 2013).
The following figure shows the SWOT analysis:

Source: (Birinci,2013)
Situation Analysis
If the company fails to improve the brand image in the eyes of the consumers, then the company
should survey and used personal marketing which helps to collect the data, and it enables to
develop the consumer-centric strategy which directly impacts on the sales volume of the
company (Berman et al., 2013). The company should also maintain healthy relations with the
suppliers which help to supply the products to the consumers on time by smooth running of a
supply chain.
Conclusion
The ASOS is an online independent fashion brand which is having marketing problem of failure
to do effective marketing which impacts on the sales volume of the company. The proposed
solution is adopting various marketing strategies which help to promote the brand through
advertisement on national and international television and online branding. The pestle analysis
shows that the company should adhere to regulations which help to stabilize the political
segment of the company. The economic, social, technical, legal and environment segments

should be considered at the time of building strategies. The company should make innovative
products which help to stand out among the competitors in the same industry.

References
ASOS | Shop the Latest Clothes and Fashion Online. (2016). Asos.com. Retrieved 24 October 2016, from
http://www.asos.com/?hrd=1
Kotler, P., Burton, S., Deans, K., Brown, L., & Armstrong, G. (2015). Marketing. Pearson Higher
Education AU.
Fernie, J., Fernie, S., & Moore, C. (2015). Principles of retailing. Routledge.
Team, F. M. E. (2013). ‘PESTLE Analysis. Strategy Skills.
E. Dobbs, M. (2014). Guidelines for applying Porter's five forces framework: a set of industry analysis
templates. Competitiveness Review, 24(1), 32-45.
Magretta, J. (2013). Understanding Michael Porter: The essential guide to competition and strategy.
Harvard business press.
Birinci, M., & Eren, E. (2013). The Effect of Strategic Management Practices on the Performance of
Universities in Turkey. Journal of Global Strategic Management, 13, 17-33.
Berman, B. R., & Evans, J. R. (2013). Retail management: a strategic approach. Pearson Higher Ed.