Marketing Audit

This report provides a comprehensive marketing audit of Asda, including macro analysis, micro analysis, competitive analysis, and SWOT analysis. It covers the background of the company, external and internal analysis, competitive analysis, and strategic recommendations. The report also includes a PESTLE analysis, mission statement, strategy, and analysis of suppliers, marketing intermediaries, customers, and international markets.

Marketing Audit

Contents
INTRODUCTION...........................................................................................................................3
Background of the company...................................................................................................3
Macro analysis........................................................................................................................4
Micro analysis........................................................................................................................5
Competitive analysis..............................................................................................................5
SWOT analysis.......................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing audit is defined as systematic, comprehensive, interpretation and evaluation of
marketing environment that is both external as well as internal. In addition to this, it involved
organization objective, goals, principles and strategies for identifying any issues and
opportunities that is effective and suitable for the company (Arratia, 2017). Marketing Audit is
an important tool which marketers use for gaining insight about current marketing situation and
requirements which further leads to raise in performance and productivity of an organization. For
the present report, Asda is taken into consideration. It is a British supermarket chain that was
established in year 1949 and headquartered in England, United Kingdom. The report will cover
external and internal analysis of respective organization. In addition to this, competitive analysis
is conducted with the help of different factors.
Background of the company
Asda is a British supermarket chain and is one of the largest supermarket retailers in UK.
The company was established in 1949 and at present it has presence in more than 650 locations
which shows that Asda has high market share and presence as well. In addition to this, it is
owned by US retail giant Wal-Mart. Asda offer general merchandise, grocery, financial services
and many more. The company has 339 stores in UK and Walmart is one of the cornerstones of
UK market landscape, which has been close in competition with Sainsbury’s and Tesco. The
market of Asda in United Kingdom state £12.7 billion with a continuous increase in profit among
the year 2014 and 2019. The profit margin of Asda is decline in the year 2020 due to COVID-19
pandemic and is not stable at present. Moreover, Asda is not able to enter into new markets as
country’s local vendors have the fear to lower down the prices. Asda is not properly offer
products such as Vegan food, organic food due to which its sales is declined as at present people
to consume such kind of products (Bhaskar and Flower, 2019). The company is facing tough
competition from its rivals that is Tesco and Sainsbury’s that offer product in low prices and
provide online services to customers, which is not at present properly offered by Asda. It has
more than 1,45,000 staff members which provide effective service to around 18 million
customers and is the reason of its higher growth at marketplace.

Macro analysis
PESTLE analysis:
It is referred as a strategic planning framework that is used to analyse macro environmental
factors which impact business. The pestle analysis of ASDA is given below:
Political factor: International and national regulations concerning employment,
consumer rights, legislations, taxes and so on influence on Asda. Similarly, instability and war
also affect on decision-making of company. It is analyzed that in the present time, Asda benefits
from a relatively stable political environment within the UK. On the other hand, Brexit has
developed a lot of uncertainty and losses which impact negatively on its performance level. This
change within the political leadership may divert attention of this decision making to rivals.
Economical factor: It involves factors such as income level, inflation rate, supply and
demand and many more (Cluley, 2020). In relation to Asda, it requires to undertake economic
factors that is cost of credit, pay level, energy prices, competitive pressures and many more. All
these factors affect directly on the pricing strategy of organization. Similarly, because of
economic lockdown in the year 2020 many of the employees lost their jobs and also declined
their shopping activities which affect adversely on the overall performance and profitability of
profitability. On the other side, it is analyzed that respective organization has been getting
advantages of growing GDP of the country.
Social factor: It involves the development of society within terms of changing preference
or trends, changing demographic of young population and so on. Social changes such as healthy
lifestyle, celebrity following, aging population are vital for Asda. Gaining knowledge about all
social factors assist company to introduce new goods as well as services at marketplace. It is
analyzed that the demands of vegetarian, vegan food, organic food is growing rapidly and also
the demand for ethnic food is also rise where Asda operates. It is stated that Asda offer such kind
of products which is beneficial for the company in order to satisfy customer requirements and
maintain its performance level.
Technological factor: In the present time, people in UK prefer to buy or consume those
kind of goods as well as services which is innovative and new at marketplace. The use of
technology is growing rapidly and it is important for Asda that they are using innovative
technology in order to provide services to its customer (Farquhar, 2017). The company has
mobile application along with click and collect delivery services which attract number of

customers to buy its product and services. On the other side, technology is changing rapidly that
arise high cost to Asda and decline the level of revenue it earns. It is vital for Asda to cope up
with the technological changes in order to retain at marketplace.
Legal factor: It is vital for companies to follow all the laws and legislations so that all
activities is implemented in a systematic and ethical manner. In relation to Asda, it is abide by
the rules as well as regulation of country in which it operates, breach of any of the rules result in
high penalties by relevant authorities. It is analyzed that company follow laws such as labor law,
consumer law, employment law established by the government. Moreover, documentation of
organization such as offering of employment, bookkeeping, audit are all under in legal structure.
This help company to maintain its brand image level and consider as an ethical company and
marketplace.
Environmental factor: Carbon footprint, green economy, organic foods, hazardous waste
are vital for Asda. In the present time, people have knowledge and aware of impact company
have on the environment, thus, it is important for Asda to operate in an environmental friendly
manner (Skeggs and Yuill, 2019). The government has established legislations in order to protect
the environment. Moreover, the environmental aspects help Asda to become one of the most
sustainable organization in UK. Asda invest more into CSR, sustainability which affect on its
financials in an adverse manner.
Micro analysis
Mission statement: “The mission statement of Asda is to be the world’s largest
supermarket chain and gain leading position”.
Strategy:
Low price strategy: Asda adopted low price strategy for its products as well as services it
offer as it assist to attract more number of consumers.
New product development: The Company will be introducing organic and vegan food in
order to meet with the present requirements of customers at marketplace (Szmigin and Piacentini
2018).
Move to south of England: Asda has made decision to strengthen focus in South of
England to strengthen its market presence and capture large market share.
Board of Directors:

Sir Noel Stockdale: He was an English Businessman that Co-founded supermarket chain
Asda. On demobilisation, Sir Noel returned to perform at Associated Diaries and in year 1964,
he founded Asda stores in UK.
Peter and Fred Asquith: Fred has launched and then sold their first store and it is assume
that retail is in their blood. They travelled USA to visit Piggly Wiggly which is probably the first
super market in World. Noel Stockdale struck and met up rapport with this two brothers Peter
and Fred Asquith which would change the manner people shop and make Asda to be the largest
supermarket chain.
Suppliers:
The suppliers of Asda is ranging from small companies to the larger businesses. This
suppliers work at regional level which means consumers get taste of local delicacies (Tench and
Topić, 2017). In addition to this, Asda ensure effective relationship with its suppliers as it ensure
delivery of raw materials and resources timely.
Marketing intermediaries:
Asda is focusing on expanding its distribution network by contracting with local vendors
and small retailers. In addition to this, it is now focusing in providing all product and service
online.
Customers:
It is analysed that Asda has customer base of 18 million which shows company has high
market share and profitability. In addition to this, it follow low price strategy that attract large
number of people to buy its product. The company conduct CSR activities and ensure to protect
environment that develop positive mind-set of customer towards brand. Moreover, it focus on
resolving issues of customers rapidly and give customers priority which allow Asda to retain
customer for longer time period and gain success at marketplace.
International markets:
It is determine that 40% of Asda sales is from outside the UK, mainly in USA.
Competitive analysis
Company Strategy Strength Weaknesses Competitor
reaction
TESCO Tesco is a British
multinational general
 Tesco leads
grocery retail
 The major
weakness of
This rival is
supported by low

merchandise and
groceries retailer
which was established
in year 1919. It is the
third largest retailer in
world and is
headquartered in
England, United
Kingdom. The
company has more
than 7000 shops
worldwide which
shows it has high
market presence and
share. Tesco focus on
providing products at
lower price which
attract large number of
customers and help in
retaining at leading
position within retail
industry. Moreover, it
offer wide range of
products and ensure
customer satisfaction
which is one of the
main reasons of its
success.
market within the
entire Great
Britain and
having around
27% market
share.
 The company has
booming its
market presence
in about 14
countries and
6800 stores.
 The company
also launched
diversified stores
such as Tesco
Extra, Tesco
Metro, Tesco
Express and so on
(Hourani, 2018).
company is
it failed
operations
from Japan
and U.S.
market.
 Tesco face
high debts
as well as
liabilities
over the
years which
impact on
its financial
profits
adversely
(Wilshaw
and
Wallace,
2019).
 It is
analyzed
that Tesco
outlets are
not
executing
well in
some of the
areas as
company
had not
cost strategy that
attract large
number of
customer and
impact negatively
on sales and
profitability.
Tesco is difficult
to attack as it has
high market
presence but also
can oppurtunity
for Asda to
launch its stores
in Japan and U.S.
market where
Tesco is not able
to operate.

done proper
market
research.
Sainsbury’s Sainsbury is the second
largest supermarket
chain in UK and had
16% share of
supermarket sector.
The company was
established in the year
1869 and has around
1500 shops worldwide.
The company follow
differentiation strategy
which allow it to
attract large number of
customers and provide
them unique offerings.
In addition to this, it
has superstore,
convenience shop,
hypermarket, forecourt
shop and so on.
 One of the major
strength of
Sainsbury’s is
right expansion
move that is from
small grocery
stores which offer
limited range of
products to
convenience
stores that
became later
supermarkets
which cater daily
requirements to
customers
(Yamoah, 2019).
 Another Strength
of Sainsbury is
innovative
promotion
strategy which
represents the
brand effectively
and properly at
marketplace.
 With the
growing
competition
in retail
sector,
Sainsbury’s
focusing to
cut down
cost and
price magic
lines it’s
profitability
margin.
 It is
analyzed
that in spite
of strong
promotions
and loyalty
programs,
companies
facing
major
challenge to
retain
customers.
This competitor
is increasing
number of
offerings and
adopting
differentiation
strategy to attract
and retain
customers. In
addition to this, it
has own mobile
applications that
allow customers
to click and
collect their
delivery at
doorstep. Asda
can launch a new
application where
customers order
their products
online and
receive it on time
period.

SWOT analysis
It is referred as strategic planning technique used by business entity in order to identify its
internal strength, weaknesses, external opportunities and threats. In addition to this, it is an
effective tool for analysis and audit of overall strategic position of the business along with its
environment (Loon, 2017). This tool is used by Asda in order to know about its strategic position
and the opportunities and threats associated with it. The SWOT analysis of Asda is given below:
Strengths Weaknesses
• One of the major Strength of Asda is it offers
large variety of products and services involving
financial services which help company to
capture large market share and attain growth as
well.
• The company is renowned for its attracting
and effective marketing campaign that shows
customers are important and delighted by the
organization.
• Another major strength of Asda is it’s
effective and talented 1,50,000 staff members
who perform all the activities properly and is
the reason of its growth and success at
marketplace (Mullin, 2018).
• The company ensure customer satisfaction
and is also socially responsible through CSR
initiatives.
 It is determined that the ability to sell
prices have restricted its entrance in
few countries as the country have fear a
competition with local vendors.
 It is analyzed that as Asda has limited
global presence if compared to its
rivals.
 The company is facing issue such as
false advertising, horse meat scandal
and so on which impact on its brand
image in a negative manner.
Opportunities Threats
 The company has opportunity to
expand its business operations in other
countries such as India and so on.
 Asda can enter into new domain such
 One of the major threat associated with
Asda is price war with its existing
retailers.
 Another threat is changing policies of

as jwellery, pharmacy, photo
Department and so on. This will help
company to acquire or capture large
market in an effective manner.
 Asda can start it's online market as
nowadays more and more customers
are expanding it’s operation online and
prefer to buy products and services
online. In addition to this, it also help
organization to reach large number of
customers and increase its sales and
profitability level.
government as it affect directly on its
activities and operations in a negative
manner (Pasquinelli and Ravasio,
2017).
 Consistently price cutting by its rivals
such as Tesco, Sainsbury’s impact
negatively on the profitability and
revenue level of company.
CONCLUSION
From the above discussion, it has been concluded that Asda is one of the biggest
supermarket in UK that has more than 18 million customer base and is attaining growth at
marketplace. On the other hand, it is facing tough competition from its rivals and enable to attain
competitive advantage at marketplace. It is determined that people of UK prefer to buy those
products that is new and good for their health associated with easy availability. The future
marketing strategy of Asda is to offer organic and healthy products and to enter into new
marketplace. Along with this, the company emphasis on provide each of its product online and
deliver it rapidly to customers. This help Asda to attract and reach large number of customers
and enhance its level of sales as well as profitability. Asda can develop more focus on CSR as
now people have awareness about company which contributes for development of society and is
also aid in increasing brand image at marketplace. For declining the level of completion and to
deal with issues, Asda is adopting new product development strategy which allow to enhance
customer base level, profitability and also assist in gaining competitive advantage at
marketplace.

REFERENCES
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