SOSTAC Model for Marketing Strategy of George by Asda in Nigeria

This report focuses on the SOSTAC model for the marketing strategy of George by Asda in Nigeria. It includes a situation analysis, objectives, strategy, tactics, and action plan. The report also discusses the overview of the company, the use of Porter's generic strategy and Ansoff matrix, and the Hofstede model for situation analysis. The objective of the company is to attain at least 25% of the company sales in the next 3 years from the market of Nigeria. The report also includes the tactics used by the company for product, price, place, and promotion.

Principles and practice of marketing
7/24/2019

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Contents
Introduction......................................................................................................................................3
Overview of company..................................................................................................................3
Task 1 SOSTAC..............................................................................................................................4
SOSTAC in Nigeria.....................................................................................................................4
Situation analysis.....................................................................................................................4
Objectives................................................................................................................................6
Strategy....................................................................................................................................6
Tactics......................................................................................................................................7
Action......................................................................................................................................9
Task 2.............................................................................................................................................10
Situation Analysis......................................................................................................................10
Objective....................................................................................................................................11
Strategy......................................................................................................................................12
Tactics........................................................................................................................................12
Action........................................................................................................................................13
Control.......................................................................................................................................14
Task 3.............................................................................................................................................15
Justification for selecting Nigeria..............................................................................................15
Advantage and disadvantage of Standardise and adapting........................................................15

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Glocal- Hollensen......................................................................................................................16
Selection of strategy for company.........................................................................................17
3Ps..............................................................................................................................................17
Conclusion.....................................................................................................................................19
References......................................................................................................................................20

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Introduction
The purpose of the report is to build on the research that has been conducted in the interim
coursework that is required to form the report that majorly applies the SOSTAC model to the
marketing strategy that is current being used by the high street clothing research. The company
has been selected for this assignment George by Asda. SOSTAC is to major focus on moving the
chosen the clothing retailer to a different country that is considered as Nigeria, outside of UK
where they do not presently operate. SOSTAC model is majorly used in the report with the
motive to evaluate the elements with the proper implementation. It also shows how the company
is using the model of SOSTAC in UK market. In addition, it shows how the strategies used by
the George by Asda can be used in UK that is evaluated. The evaluation of strategies will help in
understanding how the company can implement these strategies in the international market.
Overview of company
Asda Stores Ltd trading as Asda, is a British supermarket retailer with the headquarters in Leeds,
West Yorkshire. The company came into the existence in the year 1949 when supermarket
owning Asquith family that merged with the associated diaries of the Yorkshire. Asda Company
formed a partnership with George Davies who is considered as one of the best fashion designer
with the brains behinds high street retailer next (Newton, 2017). Further, the supermarket
confirm to name their new clothing range just after the designer with the brand that being rolled
out to Asdas across the UK in the year 1990.

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Task 1 SOSTAC
The marketing model of SOSTAC is formed by PR Smith in the year 1990s and later formalized
in his 2004 book that shows the strategic marketing communications (FIDM, 2014). The model
name is decided based on an acronym for Smith’s six fundamental facets of marketing which
include objectives, situation, strategy, tactics, action, and control.
SOSTAC in Nigeria
The focus of SOSTAC is majorly emphasis on moving the George by Asda retailer to Nigeria, a
country that belongs to the West Africa. The below given is the implication of the SOSTAC
model within country.
Situation analysis
The situation analysis can be done with the help of the PEST analysis that analysis the external
factors that can affect the working of company.

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Political factors: - The government of Nigeria has the ability with the motive of it they can
encourage the companies to make the purchase of the fabrics from the local market only majorly
if the taxation on the imports from the different overseas countries increases (Legal Small
Business, 2019). It has been found that political there is rise in the terrorists activities in the
country that leads to the impact on working of any new business. However, this is true that the
clothing industry will get affected at least in the situation.
Economic factors: - The economic factors that influence are GDP, purchasing power of
customers and many others. It has been witnessed that from the year 2014, there is decline in
GDP as at this time GDP of country was 568.50 USD that is highest among other years.
However, after the decline the GDP of Nigeria improved in 2018 that leads to the opportunity for
the company to earn high profit (Trading economics, 2019). Moreover, it has been found that
unemployment in Nigeria is at high level due to which the George by Asda, can get the cheap
labour at the place.
Social factors: - Social factors that influence include change in the trends and patterns of the
company. It has been found that Nigeria is country with different ethnicity and religion due to
which the patterns and trends of every person varies. The culture of Nigeria is traditional, due to
which they people follow the traditional styles in fashion industry. However, it has been found
that there are many changes in fashion industry of Nigeria (Abdulfatai, 2019). In addition, one
fashion designer based in Nigeria with name Deola Sagoe take the artistic approach to
merchandise that is available for selling at House of Deola.Thus, this will lead to improvement in
business opportunities for George by Asda to set-up their business.

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Technological factors: - Technology up-gradation is one of the key factors that contribute in the
success. Nigerians know the effective use of technology and estimate numbers of 86.22 million
internet users are giving the percentage of 46.10% of population. Thus, for George by Asda
business can easily reach to target market for their products with the help of online advertisement
(Frue, 2019).
Objectives
The objective of company in the Nigeria market include SMART objectives that can be specific,
measurable, achievable, realistic and within the certain time duration (LaMarco, 2019).
 The objective of company is to attain at least 25% of the company sales in the next 3
years from the market of Nigeria.
 The objective is to attain the high volume of customers that is possible through effective
advertisement that will be done in next 1 year.
 The objective of company is to at least 10% of customer to retain with them at the store
in one year.
 To create a brand image in the market in the next 3 years for growth and success (Clarke,
2019)
Strategy
Strategy of the company requires being effective as this helps them to achieve the success in the
market.
Porter’s generic strategy
The porter’s generic strategies are adopted by the company in the Nigeria market will be
differentiation in which they offer different sort of goods in the market. George by Asda

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Company will implement this strategy because they have diverse sort of people available in the
market of Nigeria due to which they have diverse needs and wants (Baker, 2014). This strategy
will help the company to meet the growing and changing needs of customers in the market of
Nigeria. The differentiation in the clothing will be done by offering the outfits that is accepted in
the culture along with the western outfit that is preferable by youth. In addition, they can offer
the customization facility to the customer who are looking to wear the traditional wear but in the
western touch. Along with this, the footwear and accessories are also offered by the company but
with the preference of the traditional culture people.
Ansoff matrix
Ansoff strategies that will be adopted by the company in the market include the new market
development that is the second market growth strategy. The strategy is majorly used when the
firm targets the new market with existing product (Kotler, 2015). George by Asda implements a
strategy in which they use the products and services that is offered by them in the market of UK.
The existing clothing range of the company will now be available in the market of Nigeria to
form the customer base.
Tactics
Marketing mix tool is pursued by company in the market of Nigeria through which they can form
effective tactics for company success and growth.
Product
Product that is offer by George by Asda includes women’s clothing, footwear, and accessories,
which is majorly in the portfolio of the company. It has been found that in the market of Nigeria

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it is one the introduction stage because the company is expanding the business in the new market
(George, 2019).
(Source: Baker, 2014)
Thus, the product life cycle of George by Asda has just begins with the expansion of business in
the market. They will soon or later it will reach at the growth stage if the company will be able to
implement the strategies effectively.
Price
Price strategy which will be follow by the company in the market of Nigeria include the low
pricing strategy in which they offer products and services at the lower prices so that they can
grab the attention from maximum number of customers (Baker, 2014).
Place
The place is the location where the company will offer the products and services. The company
has their own manufacturing and production stores in the market that helps them to make their
products available in entire market. Gazelle Company Limited has the entire responsibility of its
warehouse in the international marketing due to which the Nigeria stores of company can get the

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distribution of the products easily. The company offer their products through online mode that
helps them to cover the wide reach in the Nigeria market.
Promotion
Generating awareness in the market of Nigeria is essential for the company that is possible with
the new as well as innovative promotional techniques. The company will make use of the social
media techniques in the market with the motive to promote their products in market that will help
them to meet their goals as well as objectives. Along with this, George by Asda will promote the
products with the help of endorsement strategy with the support of local model that motivates the
customers to make the purchase.
Action
It is essential for the company to take the right actions so that they will be able to implement
their strategy in the market. Initially, the company will done the external market research so that
they can find all the opportunities and threat that the company will be facing in the Nigeria
market (Davis, 2012). This opportunities and threats will help the company in forming the
objectives after the proper evaluation of the same. Then, the company analyse the needs of the
customers present in the market that helps them to implement or form the business with the
differentiation in their product line. The new market will be form by the company that helps
them in achieving the success. Then the company will form the marketing tactics that supports
them to adopt the right strategy for the company to achieve the success.

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Task 2
Situation Analysis
Hofstede Model
Conducting the external
market research
Evaluating the
opportunities and threats
Forming the objectives
for the company
Analysing the needs of
customers
Establishing the new
market
Forming the marketing
tactics to achieve growth

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This Hofstede Model dimension talks about the thinking that all the individuals of the society are
unequal. UK stands at 35 that is considered to be the lower ranking, which explores that the
people in the country believes that inequalities in the society must be reduced. Besides this, on
the Individualism scale UK stands at 89 which is considered to be the highest score and reflects
that people in the country supports interdependency. In consideration to Masculinity, where UK
has gained 66 scores that reflect that the society is highly driven and success oriented. Further,
under the uncertainty avoidance dimension UK stands at 35 ranks that is a low score and reflects
that people in the country are happy to wake up with unknown situations and feel happy that they
daily change their plans. On the other hand, under long-term orientation dimension UK has
scored 51, which reflects that the major preference in the British culture could not be determined.
In the end, the country has scored 69 score under the indulgence dimension, which represent that
its culture is categorized as Indulgent (Hofstede Insights, 2019).
Objective
Revenue and volume
It has been reported in the year 2018 that there is 21.9% growth in the year’s first quarter sales of
George.com (Singh, 2018). This has also been proved by the annual returns of the Walmart
which is one of the dealers of George brand clothes. According to the Asda president Roger
Burnley, the increase in the revenue is the outcome of the Asda and Sainsbury’s merger. It has
also been believed that this merger is good for the company, customers, and shareholders. In the
United Kingdom market, the company has reflected improvement in its sales for the fourth
consecutive quarter. However, company is planning to expand the business in the Nigeria market
for the further growth.

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Strategy
Ansoff Matrix
Ansoff Matrix is a strategic tool that is used by the executives in the company for framing future
growth strategies. This tool is comprised of four strategies that are followed by the businesses
market penetration, marketing development, product development, and diversification
(Mckeown, 2013). In order to grow in the UK market, George by Asda will adopt the market
penetration strategy.
Market Penetration – Market penetration is the strategy that is adopted by the business to
growth by offering existing offerings in the existing market (Davis, 2012). Under this, George by
Asda will exert efforts to increase its share in the market by selling more products to the existing
target market and targeting new consumers. Here, the company will make use of aggressive
promotions for marketing it is offering and increasing the intensity of the distribution channel.
Tactics
Product
Apparel – George by Asda is known in the market for offering range of trousers, sportswear,
maternity wear, fancy dresses, socks, tops, nightwear, etc.
Accessories – Company is also involved in offering range of footwear to the customers like
boots, formal shoes, pumps, willies, trainers, etc. (Bhasin, 2018)
Price
George by Asda follows low price strategy to sell its accessories and clothes. This helps
company in targeting maximum number of customers from the low to middle class segment. In

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addition to this, the company is known in the market for bringing new and attracting discount
offerings during festive season.
Place
George by Asda offers its services in the United Kingdom by establishing stores at different
location. The company has simple and fresh store format that attracts customers. Further, the
company make use of same distribution channel that is used for the distribution of other
products.
Promotion
The Company always planned to offer low prices products in order to encourage price war in the
market. It focuses on offering different types of discounts and schemes for the promotion of the
services. For the promotion of the business, George uses advertisement, personal selling, and
digital marketing as some of the variables of promotional mix (Bhasin, 2018). With the help of
these variables, company reaches larger base of customers that leads to increasing sales.
Action
Strategies Objectives Responsible Department
Market Analysis In order to identify the issues
that business face in the
market
Research and Development
Department
Planning Market
penetration strategy
To overcome the identified
issue
Marketing Department
Executing Aggressive Increasing intensity of the Marketing Department

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Promotions promotions for the business
growth
Monitoring and Controlling For identifying the loopholes
in the process and taking
corrective actions to resolve
those loopholes
Administration Department
Control
The control include the budget that shows the amount which is invested by the company in
attaining the market success and establishing an effective place. The below given is the
marketing budget which include the major elements of the marketing tactics.
Marketing budget
Product
Launching product in market $6,000.00
License and permission $1,200.00
Infrastructure $2,600.00
Distribution
Cost of transportation $4,500.00
Promotion
Social media marketing
Online media
Instagram $1,400.00
Twitter $1,200.00
Digital campaign $400.00
Public relation
Celebrity endorsement $2,400.00
Total Amount $19,700.00

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Task 3
Justification for selecting Nigeria
The reason due to which Nigeria country has been selected for the expansion of business because
there is presence of labour at affordable or low prices due to high unemployment present within
the country. Thus, this helps the company to focus on the low cost strategy that is required to
maintain by them. Moreover, the government of Nigeria welcome the companies who want to
expand the business in their companies. Thus, this helps them to easily deal with any kind of the
legal responsibility. In addition, the population of the country is 201,214,136 that are attracting
company to establish the business (Worldometers, 2019). The total population of the country is
equal to 2.6% of the total population of world. The high population shows that the company is
able to provide the services to numerous customers that lead to rise in sales as well as revenue.
Advantage and disadvantage of Standardise and adapting
Standardization Adaptation
Definition
(Quotes)
According to Medina and Duffy
standardisation is, “the
process of extending and effectively
applying domestic target-market-
dictated product standards tangible
and/or intangible attributes
to markets in foreign environments”
(Hussain and Khan, 2013)
According to Medina and Duffy is
adaptation, “the mandatory modification
of domestic target market- dictated
product standards tangible and/or
intangible attributes as to make the
product suitable to foreign environmental
conditions” (Hussain and Khan, 2013)

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Pros  Economies of scale
 Excellent monitoring of the
communication
 Faster set up time
 Single coherent global image
(Solberg, 2017)
 Excellent image in the global market
 Respect to the customer local
specifications as well as expectations
 Customers feel noticed a keep their
landmark.
Cons  Little reactivity as well as little
flexibility
 Expected loss of advertising
effectiveness
 Can form the negative reaction
from neglecting local needs
(Membe and Doriza Loukakou,
2012)
 Difficult to determine the needs of the
customers in market
 Higher cost
 Time consuming with poor speed of
execution
Example  George by Asda will keep the
standard quality of clothes,
footwear, and accessories in the
market of Nigeria just like UK
 George by Asda will make the changes
in the design and patterns according to
the local needs of Nigeria.
Glocal- Hollensen
Glocal marketing the brand requires global standards with the key message but you have to be
flexible to adapt as well as to adjust to local cultural needs (Hollensen, 2016). The glocal brands

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requires global standards and key messaging but have to be flexible in order to adapt and adjust
according to the local culture needs.
(Source: Hollensen, 2016)
Selection of strategy for company
The strategy of George by Asda adopts the glocal strategy in which they consider the global as
well as the local strategy. In the global strategy, global low-cost production as well as selling of
the product in the market and they adopt the strategy of being the culturally close to consumer. In
the Nigeria market, the company can offer the products at low-cost that is standard in all the
market (Hollensen, 2015). In addition, they ensure that they obey the culture due to which they
incorporate culture in products.
3Ps
Elements Standard Adapt Glocal
Product Quality Design and trends Fusion of clothing

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Price Low cost pricing
strategy
Low and middle
income slab
Low-middle class
people with low
pricing
Place Online Local stores Stores and online
distribution

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Conclusion
In the end, this can be concluded that George by Asda should expand their business in the market
of Nigeria as they have the opportunity in the market. The market evaluation has been done with
the help of the SOSTAC diagram. The effectiveness of the company strategy in the UK market is
also considered for the Nigeria market by the company. Different strategies as well as models are
used by the company for evaluating for Nigeria market that include Hofstede model, ansoff
matrix, porter’s generic strategies and concepts of Hollensen glocal model. The glocal market
strategy is also adopted by the company that helps them in dealing with local people.

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