Pestle Analysis of Asda's External Environment

Marketing Segment And
Decision Making

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
Describe the industry market of ASDA......................................................................................3
Task 2...............................................................................................................................................5
Nature of competition in the industry.........................................................................................5
Compare and contrast the strength and weakness of the competitors.........................................5
Task 3...............................................................................................................................................6
The major market segments of the organisation.........................................................................6
Task 4...............................................................................................................................................8
Primary and secondary target markets of ASDA........................................................................8
Task 5 ..............................................................................................................................................9
The level of involvement of the primary segment and their decision making process...............9
Task 6 ........................................................................................................................................10
Positioning map for the market place........................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
APPENDIX....................................................................................................................................14

INTRODUCTION
Marketing creates value for customers and it also establishes a good relationship
between the organization and customers. In the process of marketing firm divides the market
into different segments on the basis of geographical location, demographical variables, psycho
graphical and consumer behaviour. These variables can also affect decision making of any
company. The present report is based on ASDA which perform its operations in United
Kingdom. The selected retailer focuses on its marketing strategy and promotional activities in
order to create a strong customer base. The below mentioned report focuses on the growth and
profitability of the organization and how they can achieve these objectives over their competitors
(Solomon, 2014). Along with this, it also defines its marketing segments in the market.
Task 1
Describe the industry market of ASDA
ASDA is a retail industry in united kingdom that provides products and services to the
people at the lowest price as compare to other competitors. This retail industry is lie in the
perfect market. In perfect competition there is no monopoly in the market, prices cannot be
manipulated and sell products to earn profits. In this kind of competition there is no transaction
cost and no barriers to entry and exit. The market share of ASDA is 16.2%. The company is
enjoying there higher profits as compare to there rivals due to its low price campaign. The
growth of the company in 2016 is get improved as compared to the last year.
ASDA used pestle analysis in order to remove the external barrier that affect the
performance of the company (Hollensen, 2015). These factors are political, economical, social,
technological, legal and environmental. If government changes there policies then firm have to
suffer in there selling prices. Economic factor is based on the income of the people and social is
changes according to the taste and preferences of the customers. Technology can lead the

industry towards the innovation and legal is related to the laws that are made by the government.
ASDA provide eco friendly products to there end users (Versloot, 2016).
(Source: Market Share, 2017)
Illustration 1: market share, 2017