Service Marketing Issues of ASOS in the Fashion Retail Sector

This report analyzes the strengths, weaknesses, opportunities, and threats of ASOS, a British fashion retailer, and identifies the key service marketing challenges for the next 3 years. It also provides recommendations to overcome these challenges and improve the overall marketing strategy of the company.

Analyse the service marketing
issues affecting one
organisation in one particular
sector

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analysing strengths, weakness, opportunities and threats of ASOS...........................................3
Identifying the key service marketing challenges for the next 3 years for ASOS.......................4
Analysing the threats via theoretical principles of services marketing along with
recommendations to overcome with strengths and opportunities...............................................5
Recommendations........................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing in the business mainly aid in defining about the undertaking activities as for
promoting the products and services of the company by advertising , selling and attracting the
consumers for purchasing the products. Facing different marketing issues as while operating the
business in dynamic market mainly including lack of market knowledge, not able to understand
the consumer behaviours and its strategies by lacking to create budget. This report provide
details about ASOS the British fashion retailer mainly serving wide range of fashion apparels to
consumers while operating in dynamic marker. This report mainly includes analysing the
business strengths, weakness, opportunities and threats. Further identifying the key marketing
challenge faced. Lastly analysing thereat and providing recommendation for overcoming the
challenges faced.
MAIN BODY
Analysing strengths, weakness, opportunities and threats of ASOS
 strengths
 The company is mainly recognized
globally and maintaining the wide
range of fashion apparels including the
best brand products for consumers by
emphasizing on unique variety (ASOS
SWOT Analysis, 2022).
 Marketing with using blog, social
media and producing magazines mainly
helps in retaining loyal consumers with
serving through online channel.
 Adopting different innovative ways as
for retaining and targeting the loyal
consumers by using interactive
shopping methods.
Weakness
 serving and operating only using online
platform this hinders in the option of
consumer to try out clothes prior
shopping.
 The free shipping provided to the large
number consumers retains its costs of
the company which reduces profits.
 The lack of using marketing platforms
in company must use more digital ways
as for featuring the products and
marketing as for attracting wide range
of consumers.
 With wide returning ply impacts the
business and results in providing

 With offering free shipping and free
return with establishing policy helps in
establishing the company image by
serving its wide global consumer.

financial crises for the company.
Opportunities
 there are different types of the
opportunities which can be basically
obtained by the research in turn
effective ability to coordinate with the
requirements of fulfilling the
organizational objectives.
 The one of the significant opportunity
which can be obtained by offering the
unique products to cover the good
market share.
 In respect to have higher sales revenue
the emphasis will be done for grabbing
the opportunities which includes having
higher utilization of mobile platform so
that greater purchase can be done.
 Globalization is expanding which can
offer the good amount of ability to
cover customers that can as well gives
ability to possess the acquisition and
partnership opportunities.
Threats
 there are few areas which can offer the
threat to the company so become
essential for the organization to pay
attention on identifying this in turn
significant emphasis on achieving the
competitive edge can become possible.
 The one of the threat that is associated
with having the difficulty in complying
with the legal aspects in turn various
form of the regulations are there.
 In addition to this, there are certain
economic conditions such as
fluctuation currency values, etc. so that
can lead to have the loss to overall
organizations.
 There are threat of the privacy issue
which is required to be focused in
respect to get ability to possess the
confidential customer data in turn
various legal actions in against to
company threats can be served to firm.


Identifying the key service marketing challenges for the next 3 years for ASOS
The main purpose of the marketing strategy is to gain the competitiveness in turn
accomplishing the objectives such as spreading brand awareness, higher market share, etc
(Ferrell, Hartline and Hochstein,, 2021). This leads the firm towards success by ensuring that
good form of profitability and substantiality in market can be derived. There are few challenges
which are basically faced by firm in respect to apply marketing strategies that adversely impact
overall performance can be provided. ASOS as being one of the international organization pay
attention on having the effective application of marketing strategies which comprises both
traditional and online marketing approaches. The set of strategies which re taken into the
consideration by firm involves marketing mix, STP, advertising campaigning conducting, etc.
which is contributing in attaining success.
The challenges which are basically faced by firm in respect to meet the objectives
comprises h recruitment taken, maintaining as sufficient budget, generating leads, finding h the
right tools, being risk averse, moving into new markets, retaining customers, etc. in order o
conduct the effective form of the marketing practices the organization tend to face the certain
challenges that hamper the overall functioning of firm. In respect to gain the reliable approach in
turn relevant impact on the overall functioning can be achieved.
For the next three years, the one of the key challenge that include is higher level of
competition which can adversely influence the firm and affect its profitability and sustainability
(Katsikeas, Leonidou and Zeriti, 2019). The marketings strategies of competitors is as good
which can incline their brand awareness in order to have higher profitability. It is identified as
major challenge which can impact the functioning of organization in negative manner.
Evaluating the corrective type of marketing strategy is important for the firm in order to have the
effective outcomes such as higher profitability, sustainability, etc. which can influence its overall
efforts. It is important for the firm to give focus on possessing proper insights about the data of
which platform of marketing is giving higher clarity of products features and influencing their
purchasing decision. On the basis of the analysis it can be mentioned that there are different
form of the challenges which is basically faced by firm that is hampering its overall performance
in adverse pattern as can offer threat. The threats involve losing market share, declined
profitability margin, higher competition, inability to work on feedback mechanism, less brand
awareness, etc. which are required be overcome by taking relevant course of actions.

Analysing the threats via theoretical principles of services marketing along with
recommendations to overcome with strengths and opportunities
In order to become successful it is important for the organization to pay attention on principles
of marketing which involves product, price, place, promotion, physical evidence, people and
process. The threats of the company is to not properly conducting its overall marketing processes
which hampers the overall functioning of the organization (Ali and Anwar, 2021). The threats
involve having improper identification of targeted audience, higher budget, ensuring compliance
with the ethical requirements of marketing practices, etc. On the basis of this, it can be specified
that there can be overcome with help of the strengths & opportunities in turn significant impact
positively on organization. There are different form of the products are offered by firm to the
targeted clients with maintaining quality. Reasonable pricing approach is used into the
consideration for offering products on both domestic and international market. There are various
marketing strategies for promotion service is done that involves using social media marketing,
etc. in turn helps in gaining corrective results. The processes which are followed is having
effective supply chain, reliable human resources, etc. to meet the organizational objectives. In
people which is served as strength to the company the emphasis is provided on gaining the
competitive edge. Physical evidence for the organization is websites, stores, etc. which aids it to
gain reliable strength to function in industry.
Recommendations
There are few lacking areas which is required to be overcome by firm through taking significant
approach so that higher utilization of strengths to achieve opportunities can become possible.
 It is suggested to the company to pay attention on having the application of market
research in turn effective information to execute reliable marketing strategy in turn
effective results can be derived (Mothersbaugh, and et.al., 2020). The main reason
behind this is to eliminate the threat of higher competition which has adverse impact on
the functioning. The main reason behind application of market research is to get the
effective information in turn accomplishing ability to gain competitiveness in fashion
sector.
 It is suggested to the company to focus on having effective digital marketing approach
such as social media marketing as it can help in competitive benefit to get the
profitability can be done. With help of the innovative strategies which is strength of

firm it can use various content strategy so that higher interactive approach to attract &
retain can help in uplifting its overall performance. Effective content marketing strategy
can allow getting higher profitability to make the prevailing social media approach with
limited budget. This can allow to eliminate the challenge of overcoming the issue of
feedback mechanism can help in achieving the higher reliable insights.
 This is advisable to the mentioned organization to concentrate on social media
influencers as they positively impact the overall organizational growth can be obtained.
The main reason behind this is that having social media influencers create good impact
on customer that tend to result in favourable purchasing decision.
CONCLUSION
From the above report it can be concluded that marketing is one of the significant the
strategy that is related with spreading awareness among the targeted audience. With help of the
SWOT it has been identified that company is having various strengths, weaknesses, opportunities
and threats. The marketing challenges of the company face is ineffective feedback mechanism,
identification of correct audience, etc. the recommendations for the improvement is involved in
the current report which are effective market research, content strategy, etc.

REFERENCES
Books and Journals
Ali, B.J. and Anwar, G., 2021. Marketing Strategy: Pricing strategies and its influence on
consumer purchasing decision. Ali, BJ, & Anwar, G.(2021). Marketing Strategy: Pricing
strategies and its influence on consumer purchasing decision. International journal of
Rural Development, Environment and Health Research. 5(2). pp.26-39.
Ferrell, O.C., Hartline, M. and Hochstein, B.W., 2021. Marketing strategy. Cengage Learning.
Katsikeas, C., Leonidou, L. and Zeriti, A., 2019. Revisiting international marketing strategy in a
digital era: Opportunities, challenges, and research directions. International Marketing
Review.
Mothersbaugh, D.L and et.al., 2020. Consumer behavior: Building marketing strategy. New
York, NY, USA: McGraw-Hill Education.
Varadarajan, R., 2020. Customer information resources advantage, marketing strategy and
business performance: A market resources based view. Industrial Marketing
Management. 89. pp.89-97.
Online
ASOS SWOT Analysis. 2022. [Online]. Available through:
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