Marketing Strategies for Asda Stores Ltd.

This report analyzes the market potential of Asda Stores Ltd. through STP analysis and marketing mix. It also discusses the relationship marketing strategies and recommendations for the company.

Marketing
Management
(In reference to Asda stores Ltd.)

Executive Summary
From beginning of era, Marketing is used as a vital factor which helps in growth and
profitability of an organisation. It is necessary in a business organisation to adopt various
elements which are helpful in expansion of a business unit. Marketing segment has been given
preference by all kind of organisations. Asda stores Ltd is well-known supermarket chain which
focuses on providing most suitable products and services to its target audience. In order to
analyse market potential of Asda stores Ltd, various market drives such as STP analysis,
marketing mix are being discussed in the report. Also relationship marketing strategy and
necessary recommendations for Asda stores Ltd. is discussed later in the report.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
Main Body.......................................................................................................................................4
1. STP analysis of Asda Stores Ltd..................................................................................................4
1.1 Segmentation....................................................................................................................4
1.2 Targeting...........................................................................................................................5
1.3 Positioning........................................................................................................................5
2. Marketing mix of Asda Stores Ltd...............................................................................................7
2.1Product...............................................................................................................................7
2.2 Price..................................................................................................................................8
2.3 Place.................................................................................................................................8
2.4 Promotion.........................................................................................................................9
3. Assess relationship marketing strategies with emphasising over current tactics.........................9
3.1 Relationship marketing and its application by Asda stores Ltd.......................................9
3.2 Recommendation for improvising marketing strategy of Asda stores Ltd.....................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing management is a key element which has gained attention of various
organisations operating over different segments in order to cope with increasing demand of
competition. Various methods of marketing-management help in cost reduction and earn
adequate amount of profits for long term survival. Asda Stores Ltd is UK based organisation
which by initially founded in 1949 by Peter, Fred Asquith and Noel Stockdale. It is a retail based
industry which is operating in approx. 632 locations across the world. In respect of Asda stores
Ltd, this report focuses over analysis of various techniques used in order to improvise market
share by adoption of effective marketing strategies for overall development of an organisation.
Therefore, STP strategy that is segmenting, targeting, positioning and various factors of
marketing mix are being focused broadly in this respective report. Also relationship between
marketing strategies will be evaluated in reference to Asda stores Ltd in this particular report.
Main Body
1. STP analysis of Asda Stores Ltd.
It is a popular marketing model in modern time which is used to analyse marketplace
through adoption of audience focused strategy rather than product based approach (Gummesson,
2017). This approach is applied in order to attract right customer for their products with a view
of advancement in profits and sustainability of organisation in long term. Asda stores Ltd is
using such process in order to segment their respect audience, target each group as per the
preference of company and finally positioning adjustments if required in the process in order to
achieve respective needs and expectations. In reference to Asda stores Ltd, Segmentation,
targeting and positioning are being discussed in following manner:
1.1 Segmentation
It is a process in which market is divided into different market segments on specified basis. This
is early approach towards identification of respective market segment in which organisation is
looking forward to operate (Srinivasan and Ramani, 2019). In respective of Asda stores Ltd,
market distributed in following segments:
 Demographic: This market segment deals with population related factors such as
education, literacy, occupation, marital status, age, gender, etc. Asda Stores Ltd has
established its operations as per basic requirement of grocery related items of each age

group and gender to meet their requirement in order to increase attain organisational
success (Batat, 2019).
 Geographic: It is type of segmentation which sorts market of operations as per the
country, region and area. Asda stores Ltd is currently operating in approx. 47 countries
all over world and has 632 stores in total. This is suggests that the company has large
basis of operations in order to gain profit-margins and sustainability (Tarkowski and et.
al., 2017).
 Psychographic: It sorts audience through their respective habits, lifestyles, personality
traits and so on. Asda stores Ltd has considered wide range of product varieties in order
to meet demand of each individual so that adequate customer base can be maintained
(Subram, K.S and et. al., 2018).
1.2 Targeting
In this type of method, an organisation is devoted towards evaluation of various market segments
in order to reach at most suitable and attracting segments to be considered by such organisation.
In order to conclude a result it is important to consider size, profitability and ease of reaching
customers in such market segment in order to advance value of organisation in terms of money
and sustainability (Baliga and et. al., 2019). Asda stores Ltd has given preference to majority of
internet savvy and married living people in order to increase market share and profit-margins for
organisation growth prospects. Targeting rightful audience in the correct segment is most
important factor which must be considered by an organisation in order to keep up with
competition levels in respective market. It is important to be more particular in respect of target
market segment as it is ultimate factor over which organisational activities are being carried out.
1.3 Positioning
Positioning is a final step in STP strategy where a product positioning is done in order to attain
unmet desire or need of an organisation in market which can be fulfilled by such product
(Hakimi, 2018). It is most effective approach which requires correct combination of skill and
technique so that maximum profits can be raised from a particular market condition. There are
different ways of positioning a product or service in a market namely, functional positioning,
symbolic positioning and experimental positioning. Therefore an organisation wants to combine
all given factors to achieve competitive advantage in that market segment so that adequate results
can be drawn. Asda stores Ltd being one of largest grocery based organisation has various

competitors such as Tesco and Sainsbury's which are also considered as leading organisation in
retail industry. So in order to deal with such intense competition, Asda stores Ltd has positioned
its market in production of best quality products having cheap market destinations to reach
uncovered areas of a region in order to draw maximum profits and increased chances of survival
in long lasting term.
In this regard, Perceptual mapping is being presented in reference to Asda stores Ltd. It is
referred to visual presentation of company’s product or services which stands among
competitors. This method is also called as positioning mapping.
In the above visuals it is analysed that there are various supermarket brand being
positioned in the map on the basis of quality and price. It is determined Asda stores Ltd. is
providing moderate price and quality of products as per customer’s perception. Therefore, Asda
stores Ltd. needs to improvise quality of its respective goods and services so that maximum
customers could be attracted. Also it needs to analyse competitive advantage and disadvantage as
well as competitors policies so that it will be easier to implement better strategies in order to
attain better positioning amongst other competitors

2. Marketing mix of Asda Stores Ltd
Marketing mix consists of multiple areas being part of comprehensive marketing plan in
order to make profitable market decisions. It is a foundational model which is used by different
organisations so that marketing objectives can be achieved in a set market (El-Omari, 2019).
Basically marketing mix elements were said to be product, price, place and promotion but
gradually over the years it covered three additional elements namely, process, people and
physical evidence. In reference to marketing mix structure adopted by Asda stores Ltd, following
points are being covered:
2.1Product
Being part of marketing mix, it represents product or service which is developed by organisation
in order rot satisfy customer's needs and requirements (Gomez–Tames and et. al., 2020). In order
to showcase a product or service, it is important to inherent it with various qualities which makes
it different from competing products and services in such industry. Asda stores Ltd has been
providing wide range of grocery items which are being in demand due to their uncompromising
quality. It is innovation oriented organisation which works on new arrivals or existing products
and services having innovative thinking and ideologies. Product life cycle is therefore a length of
time which is taken by a product from its introduction to the customers till its decline from the
market (Hayat and et. al., 2019). Various product life cycle stages in reference to Asda stores Ltd
can be discussed in detail:
Introduction: It is initial stage of a product or service when it is launched in a respective
market segment. It is early stage of identification of customer base in respect of which new
product is being launched. In Asda stores Ltd, new products has been introduced from January
2021 with 22 product ranges having chilled and frozen feature in order to broaden its current
product range.
Growth: In this stage, new products are being saleable in the market with formation of
new customer base for new arrivals (Kang, 2018). It reflects that in respect of new product,
profits and demands are rapidly growing with steady pace. Asda stores Ltd's new product range
of chilled and frozen items have gained tremendous attention of customers which is a positive
sign for the company that their products are likeable and have likely chances of sustainability in
the long term.

Maturity: It is a stage of product life cycle where sales of a product advances rapidly
which results in ultimately growth for the company (Scheuffelen and et. al., 2019). At this stage
company begins to attain more efficiency and profit-margins in respect of their products. Asda
stores Ltd had launched rice products few years back which have attained its likely boom period.
Now preference of people is changing so they are using products which are free from any
unhealthy substances. Therefore, in order to hold its respect market segment, Asda is required to
identify new innovative techniques such as organic farmed products.
Decline: After a maturity period, if a company doesn't adopt any effective or favourable
rectification in reference to the products it might decline at a later date which is not good for
growth of an organisation (Wang, 2018). In reference to Asda stores Ltd, it’s all purpose flour
based products were having unlikely demand in the market due to rise in healthy product
demand. Now people prefer whole grain products due to increased infections, viruses and other
deadly diseases. Therefore, it’s all purpose flour has declined in respect of demand from
customers. Therefore such products are rarely saleable in the market (Laura Aberle, 2019).
2.2 Price
It is described as the cost of purchasing a product which is mostly dependent on its market value.
The price of a product is dependent upon various market factors (Mahere, 2017). It is important
for an organisation to adopt certain pricing strategies which will be helpful in creation of
maximum customer base. There are various pricing strategies such as cost plus pricing, value
based pricing, competitive pricing, penetration strategy and so on. In this respect, Asda stores
Ltd has adopted lower pricing strategy that is penetration strategy in order to attract maximum of
customers with products having optimum value for money. It is important to adopt highly
effective pricing strategy so that maximum sale can be achieved in respect of a product. Through
adoption of each pricing strategy, their differentiated advantages can be drawn (Hitesh Bhasin,
2018).
2.3 Place
It is a location where organisation provides access to its products and services in order to sale
them to target audience. It includes various parts such as transport, warehousing, inventory
decisions and so on (Yu and Fei, 2017). Also currently use of e-platforms is advancing as it is
first preference of the customer to purchase a product with a sense of ease. In this regard, Asda
stores Ltd is using various e-platforms in order to provide its services and products to its

customers in a large range. Therefore, it is important for an organisation to adopt most adequate
place strategy in order to achieve ultimate sale target. Also it is important to consider
competition while setting a place for sale so that competitive environment would not affect
overall efficiency of the organisation (Lorna Keane, 2019).
2.4 Promotion
In this stage of marketing mix, company is required to implement different marketing
communication strategies in order to increase overall sales volume for its available product range
(Elabbasy, 2021). Various types of promotion mix used by organisations are internet ads,
billboards, advertising, direct marketing, etc. Asda stores Ltd has been using traditional form of
promotional approaches which are gradually shifting from traditional to modern. Nowadays, use
of internet channels is taking a mile ahead from such traditional approaches. This is very cost
effective and times saving techniques which should be used by organisation like Asda in order to
record a market position in retail industry.
3. Assess relationship marketing strategies with emphasising over current
tactics
3.1 Relationship marketing and its application by Asda stores Ltd
Relationship marketing is a technique used to implement effective relationship with customers
who have focus over customer loyalty and customer engagement for long term. With the use of
feedbacks and other customer based data, organisation usually identifies marketing strategy to be
developed for long term by increasing brand awareness among them in effective manner. This
will in return increase reliable customer base for the company which will reflect less fluctuations
in sales volume having more efficiency in operations. Organisations giving more preference to
customers strive to create powerful customer connections in respect to organisational products
and services which will ultimately provide customer loyalty and long term customer value
(Rahman and Ayaz, 2018). It includes effective manner of communication techniques which
attract maximum of customers resulting in overall growth of the company (Chi, Wen and
Ouyang, 2020). Acquisition of new customer base could be challenging and costly which needs
to be managed by organisation in effective manner. Customer relationship marketing is therefore,
helps in long term retention of customers with feasible market share and satisfactory sales
volume from company's hand. It is significant for an organisation to closely analyse consumer's

behaviours in order to rectify their products and service as per their demand and needs in order to
strengthen customer base for future prospects (Abdullah, 2018). Also advanced use of electronic
platform has increased demand of customers in respect of easy access to goods and services, easy
payment systems and other grievance redressal systems so that appropriate brand loyalty can be
maintained through keeping up with market competitiveness and other relevant factors.
In this reference Asda stores Ltd has been one of the leading organisation across UK and other
parts of the world. It has huge customer base and has adequate revenue earning as per the
requirement of the company. Due to the increased competition in UK in respect of retail
industry, Asda had came up with loyalty scheme with George rewards in order to check its
respective customer base loyalty towards the company. This programme requires account on
george.com before customers start to collect points and also 100 points were provided just for
signing up to the site. It is effective technique in order to determine customer loyalty towards
organisation.
3.2 Recommendation for improvising marketing strategy of Asda stores Ltd
 In order to customer satisfaction, more advanced strategies needs to be implemented by
the Asda stores Ltd such as use of e-platform, e-commerce, etc. in order to execute
effective sale of its products and services.
 It must identify team of experts in order to conduct market evaluation including
identification of customer taste, behaviours and preference to retain customers for longer
period. This way Asda stores Ltd will be able to render better outcomes to its customers
for long term period.
 It needs to increase brand awareness and image in countries where people are not familiar
with its products and services so that expansion of operations can be done.
 Also usage of advanced technology system should be adopted by organisation to attract
more audience in such an intense competitive environment in retail sector. This is major
requirement of current scenario so that organisation can cope with existing competing
forces in order to survive in market environment.
 It must adopt eco-friendly techniques which will attract huge customer audience as
people are becoming more aware about ecosystem sustainability. Therefore natural
resources should be promoted by the company in order to maximise profit-margins and
customer loyalty.

 After analysing position mapping of Asda stores Ltd, it is recommended that respective
organisation needs to improvise its product quality so that prices could be charged
accordingly in order to retain maximum customer base.
 It is expected that Asda stores Ltd being one of the leading supermarket in UK, it needs
to adopt certain effective techniques so that it will be easier to compete with much bigger
leaders and new entrants who are getting attention of customers in such industry.
 Asda needs to target extended market areas in order to attract maximum customers in
order to achieved ultimate level of profitability and success for long lasting period.
CONCLUSION
Marketing management is a huge concept which includes different strategies in order to
achieve a market position. It includes Segmentation, positioning and targeting strategies which
are used by the organisation in order to achieve profitability and sales volume. It divides market
into various segments and most adequate segment is being chosen by the company in order
operate its activities. Also marketing mix ingredients are being analysed in reference to Asda
stores Ltd in order to identify its customer base, market sustainability, profit-margins and other
market forces which are required to become successful in long term. Relationship marketing
strategies are also discussed in regard to Asda and recommendations for their improvisation in
such marketing strategies are also provided. It is important to identify such market forces which
are causing low profitability to an organisation in order to rectify these barriers and advance
growth to optimum level.

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Defining Target Market Segmentation, 2019 [online] available through
<https://blog.globalwebindex.com/marketing/target-market-segmentation/>
Marketing mix of ASDA, 2018[online] available through
<https://www.marketing91.com/marketing-mix-of-asda/>
Relationship marketing, 2019 [online] available through
<https://searchcustomerexperience.techtarget.com/definition/relationship-marketing>