Marketing Audit

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