Market Analysis and Business Strategy

This assignment requires students to conduct a comprehensive market analysis of a chosen retail business. The analysis should consider various aspects such as consumer behavior, market trends, and business strategies. Students are expected to use relevant academic sources and research methods to inform their analysis. The goal is to understand the effectiveness of the business in driving customer equity and creativity in its environment. Market challenges that may be faced by the chosen business will also be considered.

Marketing Management

Table of Contents
INTRODUCTION...........................................................................................................................1
QUESTION 1...................................................................................................................................1
Introduction of chosen company.................................................................................................1
Success story and current marketing environment of Asda........................................................1
QUESTION 2...................................................................................................................................1
Key factors that led to marketing success ..................................................................................1
Environmental analysis...............................................................................................................2
Buying behaviour........................................................................................................................2
Competitor analysis.....................................................................................................................3
Market segmentation...................................................................................................................4
Positioning...................................................................................................................................4
Marketing mix.............................................................................................................................4
QUESTION 3...................................................................................................................................5
Future challenges........................................................................................................................5
Recommendations.......................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing management is an important concept that makes successful results in the
business. This is because, it helps to market of the business products and services to develop
profitability. In this regard, different activities and tasks are implemented in the business that
helps to promote and increase profitability of company (Frösén, Jaakkola and Tikkanen, 2016).
Present report is based on Asda which is a British supermarket retailer. The company provides
several kinds of products and services through online and offline methods. For gaining insight
information, the report covers PEST and SWOT analysis. Furthermore, it includes 7P's to
determine creative activities in the business. At last, it provides discussion on recommendations
to provide systematic work performance in the business environment.
QUESTION 1
Introduction of chosen company
Asda Stores Ltd. is a subsidiary company that deals with retail products and services in
the market. Besides the supermarket, company is also providing some financial services through
which they can make successful results in the UK. In 1963, first store of the chosen business is
considered in the market. From 1970, company has rapid expansion to open a large supermarket
in different locations.
Success story and current marketing environment of Asda
Asda continuously makes their profits and revenue with developing systematic work
performance. In the last year, company enhanced their profits by 6% and sales increased by 13%.
This supermarket carries chain which bought £6.4bn as the world's largest retailer. Company was
high turnover around 13% that make quick of accounting rules involve to the share options. Sales
performance of the business boosted on non-food products that includes different range of
clothing for products that are available in Asda stores (Asda's secret success story leaks out,
2018).
QUESTION 2
Key factors that led to marketing success
In Asda, there are several factors exist that make successful operations and functions to
lead with marketing. It makes successful results and outcomes to understand and change the
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market. There are several key factors included such as PESTLE, SWOT, etc. which are
explained further.
Environmental analysis
PESTLE analysis Political factors: In the UK market, there are several elements included in political
consideration that create impact on operations and functions of Asda. In this way,
increasing taxes are announced by government due to which prices of products are high
(Verhoef, Kannan and Inman, 2015). Therefore, it negatively impacts on Asda. Economic factors: Economic factors considered budget looming and coalition economic
policy. There are several competitors of Asda such as Sainsbury, Tesco, etc. Increasing
pressure of conservative government brings a strict approach to face the competition. Social factors: Changes in social trends create major impact on the demand of Asda’s
food and non-food products. In the UK, chosen company needs to assess demand and
requirement of customers so that they can serve accordingly. Technological factors: New technology also helps the cited firm to create new products
and services. For example, technology helps to increase online shopping and computer
aided design to improve Asda’s performance. Core competencies are also involved to
make proper support to the business operations (Perry, Wood and Fernie, 2015). Legal factors: Further, the chosen business need to create awareness towards the
planning permission of regulations and policies that continually expand complies. It is
heavily regulated in the UK. Hence, it is important to follow all legal elements in the
business.
 Environmental factors: Along with this, Asda also supports to carbon reduction in the
environment from implement effective results in their most stores. Ozone-friendly stores
are made by the organisation to attain protection in environment. Hence, 40% more
energy efficient and emits of 50% less carbon products considered at workplace.
Buying behaviour
In respect to considered the buying behaviour in Asda, following analysis implemented at
workplace:
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 Low or high involvement: In the chosen enterprise, there is high involvement of
customers. Therefore, it can be stated that company able to increase their systematic work
performance in the enterprise. In addition to this, it is also helpful to make profitability
results at workplace of Asda.
 New task or repeat purchase: Furthermore, customers of Asda considered new task and
repeat purchase. This is because, they are highly satisfied with the products and services
quality. It also helps to make innovative results at workplace to target new people in the
business environment.
Competitor analysis
Asda deals in different kinds of activities in the UK. It is well established business which
known by each person and leads in British supermarket chain. It includes following elements for
competitors analysis:
Competitive rivalry (High) : In the UK, Asda deals with many competitors. Hence, there
are several players involved in the market which give the toughest competition at workplace.
Main competitive rivalry exist because of Tesco, Morrison, Sainsbury, etc. All these enterprises
exist with their new strategies that differ from others.
Threat of new entrants (Low) : In the UK, apart from Asda, Tesco, Sainsbury, Morrison,
etc. are major players. In respect to enter in new market, business need to implement high
investment cost and required more knowledge as well. Therefore, it is quiet difficult to perform
functions and operations in the market (Perry, Wood and Fernie, 2015).
Bargaining power of buyers (High) : Customers are more integral part of the business.
Therefore, Asda need to complete their requirements. It provides buying power decisions from
the supermarket which helps to buy goods at best price and provide maximum satisfaction. Low
priced products provided by Asda so that customers attracted.
Bargaining power of suppliers (Moderate) : Every business requires fruitful relationship
with their customers. Therefore, it is important to look towards the bargaining power of suppliers
(Martino, Fera and Miranda, 2017). In UK there are maximum suppliers exist so that bargaining
power of suppliers is moderate.
Threat of substitute products (High): In terms of the grocery market, in UK there are
different substitute products available in the market. Therefore, it reduces brand performance of
Asda which create impact on its functions and operations.
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Market segmentation
In respect to deal with effective results, in the UK Asda determines their segmentation on
the basis of moderate means and hard pressed. It is the systematic work performance for the
enterprise to deal with creativity and uniqueness as well (Huang and Rundle-Thiele, 2015).
There are several kinds of food and non-food items provided that assists to attract customers
easily. As results, it will help to make systematic results through concentrate on the segmentation
face.
Positioning
In order to make positioning of the company, it has been seen that Asda considered
cheapest market destination in UK ahead from Tesco. Therefore, it assists to develop target
market and considered systematic work performance at workplace (Schramm-Klein, Morschett
and Swoboda, 2015). With the help of this strategy, more customers could be attracted at
workplace of chosen enterprise.
Marketing mix
Marketing mix of Asda considered product, price, place and promotion with some unique
characteristics. It includes following strategies: Product: Asda is leading business to provide different kinds of products and services.
They are dealing in different brand such as electronic, clothing, etc. It is retail store of
online and offline consideration (Frösén, Jaakkola and Tikkanen, 2016). They are
providing different kinds of doorstep services to deliver merchandises and boasted 30000
products in the largest store of UK. Price: Further, Asda perform their functions and operations with low pricing strategy.
With the help of the low pricing strategy, the company attract their customers to sell large
units of products. The company also records good growth through playing effective
pricing strategy. The company popular and consequently success to develop marketing
mix (Verhoef, Kannan and Inman, 2015). Place: Asda develop their operations and functions in different areas of the world.
Therefore, they have focuses on the simple and fresh approach to store format.
Furthermore, the company also develop acquisition with 3 zones in the simplest method.
Every year, the chosen organisation develop their operations and function with 100 more
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stores. As results, having more sales create positive impact to lead with different
activities in slightly smaller market.
 Promotion: There are different kinds of ways exist through Asda can promote their
products and services in several areas. Mainly the company focuses on the discount and
other scheme of promotion (Çifci, Ekinci and Siala, 2016). It will assist to make sure that
the company able to make changes in the in their strategy easily. In addition to this, social
media tools are also used by the chosen business that make successful business results in
the different areas of the world.
In addition to above description, there are more three elements added in marketing mix
that assists to perform several functions and operations in systematic manner. In this regard,
following explanation consider: Physical evidence: Store size, location, numbers, etc. are main strength of the business
that create positive results at workplace. In this regard, the company also create link with
their other elements such as coffee shops (Zakaria, Rahman and Osman, 2014). Main
products that are sold by the business is retail of home-wares, beauty products, electronic,
etc. People: In addition to this, the chosen company has more than 180000 employees who
work in all stores of the world. In this strategy, the company develop their operations and
functions with round training staff. As results, high customer services impact on the skills
of employees.
 Process: In this way, Asda proposed their operations as food seller. Later, they are moved
towards the household goods and services. In addition to this, the company also
considered their functions and operations to develop 4 sub brands and selling poultry
products in several areas of the world (Yu, Ramanathan and Nath, 2014). Nowadays, the
company adding business of insurance, travel money bordeux, etc.
QUESTION 3
Future challenges
Asda operating their functions and operations in supermarket stores so that there are
several challenges exist that they face. They are as follows:
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 Discounters rise, prices sink: The chosen business provide several kinds of products and
services in several areas of the world. They provide high discount to attract more
customers. It impacts negatively on the operations and functions. From last five years, it
has been seen that Asda considered more discount due to which price of products sink. Rise of the dark stores: Recently, online stores of the different business continuously
increasing. Therefore, it has been predicted that it directly impact on the physical stores
of the companies (Fernie and Sparks, 2014). Retailers set double amount of dark-stores in
the particular year. Tesco also scouting to build Didcot. As results, all these elements
create major impact on the business performances of Asda.
 High streets become convenient: Today's time shopping lists considered dinners ebbing
away in the local shops that are majorly benefiting. Close to home and work makes more
sense in the nation which is hooked to take lunch and eats for dinner. It is also important
that impact on Asda.
Recommendations
In the chosen business, following recommendations need to be provide to increase its
efficiency and profitability: Implement high price for products and services: In order to make creative results, Asda
need to increase their products and services prices. This is because, low and cheap
products some times low quality considered by customers (Hutchinson, K., Gilmore and
Reid, 2015). As results, it reduces value of the products and services in the UK market.
With the help of charging high price, Asda can make their products and services
qualitative to ascertain creative results.
 Proper market research for customer demand and requirement: Further, the chosen
company need to considered proper research for customer demand and requirement. This
is because, as per the customer demand products should be produce so that wastage of
material will be diminished to make systematic work performances (Kotabe and Helsen,
2014).
CONCLUSION
From the above report, it can be concluded that marketing management of Asda
considered creative results at workplace. In this regard, different aspects explained in the report
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that helps to make systematic work performance at workplace. Furthermore, report summarised
about PESTLE analysis that shows effectiveness of the business to attain more creativity in the
business environment. In addition to this, market analysis considered that show future challenges
that generally faced by the chosen business.
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REFERENCES
Books and Journals
Çifci, S., Ekinci, Y. and Siala, H., 2016. A cross validation of Consumer-Based Brand Equity
models: Driving customer equity in retail brands. Journal of Business Research, 69(9),
pp.3740-3747.
Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Frösén, J., Jaakkola, M. and Tikkanen, H., 2016. Effective forms of market orientation across the
business cycle: A longitudinal analysis of business-to-business firms. Industrial
Marketing Management, 52, pp.91-99.
Huang, Y.T. and Rundle-Thiele, S., 2015. A holistic management tool for measuring internal
marketing activities. Journal of Services Marketing, 29(6/7), pp.571-584.
Hutchinson, K., Gilmore, A. and Reid, A., 2015. Loyalty card adoption in SME retailers: the
impact upon marketing management. European Journal of Marketing, 49(3/4), pp.467-
490.
Kotabe, M. and Helsen, K., 2014. Global marketing management.
Martino, G., Fera, M. and Miranda, S., 2017. Supply chain risk assessment in the fashion retail
industry: An analytic network process approach. Int. J. Appl. Eng. Res, 12, pp.140-154.
Perry, P., Wood, S. and Fernie, J., 2015. Corporate social responsibility in garment sourcing
networks: Factory management perspectives on ethical trade in Sri Lanka. Journal of
Business Ethics, 130(3), pp.737-752.
Schramm-Klein, H., Morschett, D. and Swoboda, B., 2015. Retailer corporate social
responsibility: Shedding light on CSR’s impact on profit of intermediaries in marketing
channels. International Journal of Retail & Distribution Management, 43(4/5), pp.403-
431.
Verhoef, P.C., Kannan, P.K. and Inman, J.J., 2015. From multi-channel retailing to omni-channel
retailing: introduction to the special issue on multi-channel retailing. Journal of
retailing, 91(2), pp.174-181.
Yu, W., Ramanathan, R. and Nath, P., 2014. The impacts of marketing and operations
capabilities on financial performance in the UK retail sector: A resource-based
perspective. Industrial Marketing Management, 43(1), pp.25-31.
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Zakaria, I., Rahman, B.A. and Osman, M.A.F., 2014. The relationship between loyalty program,
customer satisfaction and customer loyalty in retail industry: A case study. Procedia-
Social and Behavioral Sciences, 129, pp.23-30.
Online
Asda's secret success story leaks out, 2018. [Online] Available through:
<https://www.theguardian.com/business/2003/dec/01/supermarkets>.
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