Strategic Marketing in ASOS plc: Role, Processes, and Links

This report provides an overview of strategic marketing in ASOS plc, a British online fashion and cosmetic retailer. It discusses the role of strategic marketing in the organization, the processes involved, and the links between strategic marketing and corporate strategy. It also assesses the value of models used in strategic marketing planning and the impact of changes in the external environment on a marketing strategy.

Strategic Marketing
Management

EXECUTIVE SUMMARY
The report summarised that the management of an organization should have skills and
abilities that can be used to make strategic plans so the sale and profitability can be increased.
The managers should be analysis the activities and market trends so kind of products and
services will provide to customers and make them happy. The whole report is based on ASOS
plc that is a fashion brand in the UK, selling better quality products and services. To run a
business firstly should have clear objectives and goals so strategies and planning can be
formulated accordingly. This report is going to summarise competitor analysis, PESTLE,
SWOT, growth opportunity, and the relationship between strategies in order to attain the
objectives effectively.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
1.1 Discuss the role of strategic marketing in an organization....................................................1
1.2 Explain the processes involved in strategic marketing..........................................................2
1.3 Evaluate the links between strategic marketing and corporate strategy................................4
LO2..................................................................................................................................................4
2.1 Assess the value of models used in strategic marketing planning.........................................4
2.2 Discuss the links between strategic positioning and marketing tactics ................................4
2.3 Analyse the merits of relationship marketing in a given strategic marketing strategy..........5
LO3..................................................................................................................................................5
3.1 Use appropriate marketing techniques to ascertain growth opportunities in a market..........5
3.2 Plan how to use marketing strategy options in a market ......................................................5
3.3 Create appropriate strategic marketing objectives for a market............................................5
LO4..................................................................................................................................................6
4.1 Report on the impact of changes in the external environment on a marketing strategy........6
4.2 Conduct an internal analysis to identify current strengths and weaknesses in a marketing
strategy ........................................................................................................................................6
4.3 Propose strategic marketing responses to key emerging themes in a marketing strategy.....7
CONCLUSION................................................................................................................................8

INTRODUCTION
Strategic marketing management is defined as an activity that can be used by
management in order to increase business performance and profitability. This is important for
management to analyze the performance and make the plans accordingly so it can bring changes
in their performance and activities. This report is based on ASOS plc that is a British online
fashion and cosmetic retailer, operating business in London, UK. This was founded in 2000 in
London, primarily aimed at young adults (Ahmad and Al-Yamani, 2018). The management is
planning to operate and manage the business in a changing environment and deliver a better
quality of products and services. This report covers different topics such as the role of strategic
marketing, the process involves, the link between strategic marketing and corporate strategy.
Another part covers the value of models used in strategic planning, the link between positioning
and marketing tactics, and the merits of relationship marketing. Moreover, this covers growth
opportunities, uses of marketing strategy options, impacts of changes in external environment,
current strengths, and weakness in marketing strategy.
LO1
About Organization
ASOS plc is a larger size online fashion and cosmetic retailer company that was founded
in 2000 and having headquarter in London, UK. This organization is offering a variety of fashion
brand clothes and cosmetic items. The website is maintaining more than 850 brands and shipping
to all 196 countries by filling the needs and wants of their customers. The management analysis
the marketing and bring something new and latest which can help to run and attain competitive
business advantages. The management of such an organization is having good knowledge and
skills which used to introduce something new and innovative that can influence customers and
manages the business performance (Aremu, Gbadeyan and Aremu, 2016).
1.1 Discuss the role of strategic marketing in an organization
Strategic marketing is defined as long term and forward-looking approach that mainly
uses in organization to operate and continue the business activities. In context to ASOS plc,
marketing strategy reforms by management to sell their products and services in high range and
complete the task smoothly. The management of such organization is playing an important role
1

who formulates planning and strategies to bring improvements and complete the task effectively.
The role of strategic marketing in the chosen organization are as defined:
Analysis & information – This means marketing is the long process that can be used by
management to identify the needs of customers and clients then provide the products
accordingly. The strategic marketing in ASOS plc is playing an important role who analysis the
market and get information on what is the market trend and how a customer will be satisfied
(Mammadova, 2020).
Marketing philosophy execution – The another role of strategic marketing is
philosophy execution that can be used to increase insights about people and new process which
can be used to increase the sales. The role of marketing strategy in ASOS plc is to make plans
and execute them so all activities will be completed and manage the good performance. The
management of the chosen organization is responsible for the execution of strategic and planning
which can help to operate and continue the business activities.
Increasing productivity – For organization it will be difficult to increase productivity
and profitability so marketing strategies are playing a vital role who analyzing the performance
and formulate plans to operate the business. This provides direction, purpose, and structure to all
activities so all functions should be performed rightly. The management of ASOS plc is focusing
on marketing strategy and share with employees so their every task and activity should be
complete on time and manage the performance (Aydın, 2019).
Corporate business and marketing decision making: Decision making is the need for
every organization and management that can help to continue the activities and functions
accurately. In ASOS plc, marketing decision making role plays by strategic marketing that can
help to deliver the products and services effectively and increase the performance.
1.2 Explain the processes involved in strategic marketing
Strategic marketing is the method of marketing that uses by organization it differentiates
itself from the competition by providing better value and services to customers. The aim of using
strategic marketing is to make planning and create a positive differentiation by managing the task
and activities. If organization is having a feasible marketing strategy then it is defined as being
able to meet with customer's needs and attain the business goals. In the context of ASOS plc,
management is using different marketing processes to inform customers and increase sales.
Therefore, a process which involved in strategic marketing areas explained:
2

Planning phase: This is the first stage in which management analysis the business
condition and makes plans to operate the business. In context to ASOS plc, plans and strategies
are formulated by management to increase sales and use new channels to promote the products
(Çengel and Ledo Hernandez, 2019).
SWOT analysis: This phase is related to strengths, weaknesses, opportunities, and
threats that are required to know by an organization to manage the business and increase sales.
Marketing mix strategy: The marketing mix strategy should be conducted by management once
completing the swot analysis that can help to analyse the variety of components and strengthen
organizational profitability. The marketing mix for ASOS plc is defined below:
Product
Clothes, shoes, accessories,
and cosmetic items are
provided by ASOS plc.
Price
Competitive and retailing
pricing strategy is adopted by o
rganization that increases
performance.
People
In selected organisation,
marketing management,
employees, sales management,
operation, finance and HRM
are working.
Promotion
For promoting the products it
uses social media, twitter,
online marketing, and
magazines are uses that
influence customers.
Place
The chosen organization is
operating and managing the
business activities in London,
UK that attracts customers and
increase performance.
Process
For selling and earning profits
it uses online process that uses
by customers as per their
relevancy.
Physical evidence
The ASOS plc is not having any physical store where customer can visit, but by using websites
it can operate a business effectively.
Setting product and marketing goals: This is another phase which uses by the
management of ASOS plc to set the product and marketing goals as they want to increase their
sales and brand image by operating business activities.
Implementation phase: The plans set by the management of ASOS plc are implemented
which can help to state the results (Makarova, 2018).
3

Collecting resources: In this, resources are being collected so each activity and function
can be operated by management and increases the business performance. This can help to deliver
the best quality of services and maximize profitability.
Evaluation phase: In this, plans and strategies have cross-checked those goals which are
aligned with a marketing strategy is completed or not and helps to execute plans appropriately
(Đokić, 2016).
1.3 Evaluate the links between strategic marketing and corporate strategy
Corporate strategy and strategic marketing are two different terms that are being used by
companies to attain their specific goals and objectives. Corporate strategy is defined as a planned
package of measures the performance of a company that can help to attain the long term goals.
This mainly focuses on managing resources, risk, and return so long term goals can be achieved.
On the other side, strategy marketing is the continuous method which involves the different
process of marketing and makes plans accordingly to increase sales. In context to ASOS Plc,
strategic marketing is used to make the plans and strategies for informing customers regarding
new products, services, vision, missions, and objectives that are completed by corporate strategy
to analyze risk, managing resources, and generating higher return by reducing risk. Therefore,
both strategies are linked to each other and manage the performance by completing a task and
attaining the business goals (Felix, Rauschnabel and Hinsch, 2017).
LO2
2.1 Assess the value of models used in strategic marketing planning
Porter's Five forces:
To earn maximum profit company adopts to follow porter's five forces to understand the
market situation. Porter's five forces are a framework based on this company's competitive
environment is to be analyzed. Porter's model can be used frequently and applied to any segment
to understand the industry competition. Effective strategies are used by ASOS Plc. with regards
to identification, innovation, analyzation, evaluation, and management to do control over the
various external factors.
All these forces are described in detail in the below mention paragraphs.
Rivalry among competitive market: As there are a large number of fashion brands are
available in the market that leads to an increased level of competition in the environment. ASOS
4

plc refined the method of doing business to increase profitability. It creates a monopoly by
offering the best quality and services as compared to their competitors but if the rivalry among
existing players is intense the prices are decreased by the company that makes a negative impact
on their profitability. The competitors of ASOS Plc are Island River, Zalando, Boohoo,
Newlook, Matches fashion, etc. Therefore, there is a high threat involved in such a brand
because products of competitive brands are available at an affordable price (Taillon and
Huhmann, 2019).
Potential entry of new competitors: There are no entry barriers in the market as anyone
can come to introduce their brand according to their wish that tends to increase alternatives
among people. As a distribution network is easy for new players and registration to operate a
business also not attracts so many formalities so it becomes easy for any company to enter the
market easily. Retailers enter the market with great innovation that makes pressure on ASOS plc
to reduce the prices of their items to survive in the market so a high level of threat is faced by
that organization.
Potential development of substitute product: Profitability suffers a most if other
product satisfies the desire or need with the same intensity at a low price. There is a high threat
to ASOS Plc because other rivals also give benefits of substitutes so that that customers shift
toward their alternatives. If the ASOS Plc charge the unreasonable cost for their items, customer
switch to local brands as a substitute that provides similar features at an affordable cost (Usman
and Okafor, 2019).
Bargaining power of suppliers: All the company buys raw material for making their
products from numerous suppliers. Negotiating powers are used by suppliers to extract higher
prices. There is a low threat faced by the company as there is the huge number of supplier,
availability of raw material with low prices become easy that helps ASOS Plc to purchase stuff at
an affordable cost (Aremu, Gbadeyan and Aremu, 2016).
Bargaining power of buyers: The survival of the business depends on consumers only
as they are end-users of the product. Bargaining is the major element that customer requires as
everyone wants to purchase a thing at a lower price. Some buyers buy fewer quality products
only due to their low prices. Rival competitors by offering long term warranty, discounts, festive
offers, services attract consumers toward their brand. By comparing the prices between offline
and online market public select the item and choose the company that gives more benefit to
5

them. It will also help in any other way as it has large base customers so it will streamline its
production and sale. ASOS Plc provides a discount from time to time by providing coming up
innovative products so it reflects low threat.
PESTLE Analysis- It is a tool used by marketers to examine the macro-environment that
is the external marketing factors that can impact the business of the company. In this way, a
company can ensure that all potential risks or issues have been captured or not. The following
factors that influences ASOS plc operation are as explained:
 Political- The customs duty on oversea parcels creates a negative impact on companies'
products because the customer has to pay an additional amount of money in addition to
the original prices of products. Besides this free trade policy in the UK as a positive
impact as the imports and exports costs zero trade charges in UK.
 Economical- Increase in the cost of material and labor harms the production of products
because these high-cost material cloths cost high prices which is not affordable by the
consumers. The growing E-market has also created a problematic situation for company
ASOS Plc because it has to deal with both local and online competitors (HERNANDEZ
and ÇENGEL, 2019).
 Social- Cultural difference between people affects the option of fashion styles which
gives a positive impact in some countries and negative impact in some countries for
ASOS Plc. This happens because in some countries traditions are still followed which
restricts people from buying clothes or beauty products which are provided by the brand.
 Technological- These factors are both, benefits and threats to ASOS Plc because due to
an increase in online shopping the consumer base and sales of the brand have increased
which is beneficial for the company. The treats are the hacking of personal information of
costumers which as affected the image of the company in the market (Maduro, Fernandes
and Alves, 2017).
 Legal- ASOS Plc follows intellectual property laws, employee protection laws, and all
such laws that are necessary which results in no legal suits of company. It provides work
to eligible employees and takes care of their safety and health at the same time.
 Environmental- As some countries offer subsidies for investing in renewable
technologies, ASOS Plc gets benefits as it invests in renewable technologies which help
6

in long term sustainability in those countries. This helps the company as it increases the
satisfaction level of stakeholders (Kotabe and Helsen, 2020).
2.2 Discuss the links between strategic positioning and marketing tactics
Strategic positioning refers to the place which is occupied by a brand in the customer's
mind and states how it is distinguished from the products of the competitors. For Organization it
is important to analyze the strength and weaknesses by identifying the needs of customers that
can help to maintain a position of competitors and increase Organizational profitability. ASOS
plc aims to achieve the vision and be a leader in the fashion industry by maintaining customer
loyalty. The link between strategic position and marketing tactics is as when goals are set by the
management of ASOS company then it formulates plans and strategies which can be used to
complete the task and attain them effectively (Maduro, Fernandes, and Alves, 2017). The tactics
are uses by the management of the chosen organization for developing products and services in
their fashion industry that increases the performance and profitability. Another link between
tactics and strategic marketing is to developing effective marketing plan and tactics are used to
conduct the quantitative and quantitative research that can help to understand occupies a position
of an organization in the eyesight of customers and targets them to buy the products. Both
strategies help ASOS plc to increase sales and attaining vision in a competitive business
environment and increase performance.
STP
STP is a technique that makes the process of marketing plan easy, where the main goal of
uses this technique is to attract customers or say the right consumers who are interested in the
products of the company. This marketing of products is divided into some segments and then the
targetting of that segment is done for the product of the company and then the product is
prepared according to the desires of the targeted segment. STP marketing for ASOS Plc has been
discussed as follows:
Segmentation- A company can't market every individual consumer in the world, it is
better to market the individual segments of the market and develop products accordingly. This
segmentation of products is the key to target people who have the same kind of tastes and
preferences. ASOS plc can segment its products looking at the following ways as follows:
 Demographics- The company can segment its consumers according to personal
characteristics like gender, age, income, educational qualifications, occupation, etc. If
7

ASOS Plc segments its products focusing on females, the sales of products will be high
because beauty products, accessories, and clothes are more purchases by females
(Makarova, 2018).
 Geographic- Segmentation in this factor is done based on country, city, region, etc.
Area wise segmentation is done according to this factor. Apart from London ASOS Plc can
segment its products in Manchester as it is also one of the famous cities in UK.
 Behavioral- It is a division of people in different groups according to a specific
behavioral pattern. ASOS Plc can segment its products for customers interest in fashion
and customers who have high-income status.
Currently, ASOS Plc focuses on individuals who are fashion conscious according to their
ages. As the company believes that buyers in the age group are the segment that as to be updated
as time passes.
Targeting- After segmentation of the company's product is decided, a marker of a
company has to target consumers who know the need for products that are provided by the
company. ASOS Plc can target female customers because the range of the female market in
companies' context is high as compared to the males' segment (Mammadova, 2020).
Currently, ASOS Plc targets individuals who fall in the 16-24 age group because the items of
clothing and beauty products are consumed more by this group.
Positioning- It is the final stage of the STP marketing process, were company identifies
how it is going to place the products to the targeted segment. For bettering positioning of
products ASOS Plc can work upon the promotion techniques so that the products can stand out in
market and targeted customers can be attracted on a large scale.
In the current scenario, ASOS Plc has created its brand magazine which is used to promote its
clothing which helps them in encouraging sales of their products.
2.3 Analyse the merits of relationship marketing in a given strategic marketing strategy
Relationship marketing is the strategy which uses by management to form long term
relationships with customers. It is true that for increasing sales and profitability, important to
have a good relationship with customers so their need can identify their needs and attain the
business sales by offering a better quality of products and services. The merits of relationship
marketing in context to ASOS plc's strategic marketing are as defined:
8

 Relationship marketing helps return customers from purchasing more than first-time
customers.
 In ASOS plc relationship marketing is helpful to get the positive experience that helps to
create viral positive one to one marketing.
 This can help to maintain the customer relationship by identifying their needs and provide
the products (Mathur and Agarwal, 2017).
 This benefits to ASOS plc to generate higher profitability by increasing sales and
expanding business activities.
 This gives a higher return on investment by increasing customer retention 10% which
increases brand image.
LO3
3.1 Use appropriate marketing techniques to ascertain growth opportunities in a market
Marketing techniques are used to analyze the growth and opportunities of a business
market which can help to grow the business and increase profitability. The growth opportunities
in context to ASOS plc company are as defined:
Ansoff's Growth Matrix:
Market penetration: This strategy is related to define how the organization can sell its
existing products and services in the existing market so a business can be operated accurately. In
the case of adopting this strategy, ASOS plc needs to sell its existing design and quality of the
product in the UK only by reducing the cost that can help to increase sales and maintain the
higher profitability (Kotabe and Helsen, 2020).
Market development: This strategy is related to business who enters into a new market
for expanding business and increase Organizational sales in a challenging environment. ASOS
plc has to enter into a new market that is a little bit risky than others because there is required to
have good knowledge and skills about customer's demand which business is going to enter in a
new market.
Product and development: The relation of product and development strategy with
developing existing products and services which are providing by the organization. In this, the
Organization has to change its product from the old one so it can operate the business by
influencing customers and attain higher profits.
9

Diversification: The relation of such strategy states organizations center into new
markets with new products and services that can help to increase business performance. In
adopting this, ASOS plc has to enter a new market with new products according to customer's
expectations which can help to increase sales and performance. This is highly risky for
organizations and may give higher returns (Nguyen, Melewar, and Hemsley-Brown, 2019).
From the above Diversification strategy is adopted by ASOS plc that is higher risk but
will give higher returns. In this organization, skilled and experienced employees are working
who conducted market research in Japan and gather information about customer's needs that can
help to enter into a new market with new fashion products. This will help to generate more
profits by formulating marketing strategies and addressing the competition effectively.
3.2 Plan how to use marketing strategy options in a market
BCG Matrix: This matrix helps long-term strategic plans of the business and lets them
know growth opportunities which company can review from the portfolio of products provided
by the company. Though this matrix company decides in which product investment is required,
which product should be discontinued and which products need development. The four
compounds on which ASOS Plc can analysis and decide the strategies of plans are discussed
below-
 Stars- The products or units which have a high market share and creates high growth in
the market are star products of the company. If ASOS Plc has star products then there is a
probability that the company can capture a larger market share and can grow more in the
market. This may consume a larger amount of cash of the company as the investment
with proper resources will make the company cover more market share.
 Question Marks or problem child- Products that have high growth potential but have a
low market share are the problem child or question marks of the company. These
products have capabilities to become stars as businesses are growing rapidly which
increases their potential to enter a high growth market. If ASOS Plc provides these kinds
of products then a high growth rate of products can be expected (Pu, Gong and Han,
2019).
 Cash cows- The market growth rate products are low and its relative market share is high
which means the cash usage is low while cash generation is high are the cash cow
products of a company. If ASOS Plc starts providing these products then the current
10

productivity level of products can be maintained and can help the company gain market
share. As these products will generate high returns than high market growth rate company
can take advantage of these products for as long as they can.
 Dogs- Every company has some products which have low market share and low growth
rate, the reason may be low cash usage by companies to promote these products which
result in a low amount of cash generation. These products are known as dogs to the
company. If ASOS Plc has these kinds of products then the company may face the
situation of low market share and low market growth as these products may be cash traps
for the company.
In the current scenario, ASOS Plc has captured the market with star products which have
helped the company with a high market growth rate with relatively high market share. And for
future strategic plans, it can be suggested to invest in star products only as these products have
good reach in the market and the cash generation will increase more by the time.
3.3 Create appropriate strategic marketing objectives for a market
Objectives and goals are expected outcomes for an organization that is required to be
attained by formulating plans and completing the task effectively. If the objectives of the
Organization are not cleared then it will be difficult to continue the business because without
goals there is no strategy and plans. The SMART objectives of ASOS plc are as explained:
 To increase the market share of ASOS plc by 10% and gain shares in business sectors.
 Improve brand position by offering new trending products and services that become
easier for customers for getting products.
 To achieve sales growth by 20% as people are now changing and desire to buy trending
clothes and accessories.
 To improve the innovation and distribution of brands by adopting new technology that
can attract several customers.
 Maintain higher competitive advantages by selling the products by creating a customer
base.
LO4
4.1 Report on the impact of changes in the external environment on a marketing strategy
Changes are important for organizations that help to introduce something new and
innovative for increasing performance. If there are changes in the external environment then
11

marketing strategy will be affected. For example, changes in the UK's government and tax rates
can be a challenging point to use their strategy and operate the business. If inflation rates are
high then the marketing strategy of ASOS plc will be reduced because it has to pay high charges
and amount in marketings. In the case of changing lifestyle and technology will be difficult to
adopt them due to the requirement of talented marketing manager and high investment that
increases the cost of the organization. Moreover, changes in regulation and strict environment
regulation would be an impact on strategic marketing and reduced Organizational sales (Ratten
and Madichie, 2016).
4.2 Conduct an internal analysis to identify current strengths and weaknesses in a marketing
strategy
Internal analysis: This can be defined as a common method to analyze the internal
condition of a business and make a growth plan by creating opportunities that help to increase
performance. The SWOT analysis of ASOS plc are as defined:
SWOT ANALYSIS OF ALSAC PLC
Strength Weakness
 As the company spent a huge amount to
give training by experts so it has highly
skilled workers and employees and it
also motivates their working by
providing various perquisites so that
they work with great zeal with less
wastage.
 The brand has a strong portfolio, it
became beneficial if the company wants
to expand its business by introducing a
new product category.
 As it faces difficulty to compete with
the leading brands as they spend huge
time and money in research and
development.
 There is a lack in financial planning so
it creates difficulty to prepare cash flow
so problem faces by ASOS Plc.
Opportunities Threats
 Free trade agreement facility is
provided by the government so ASOS
Plc has an opportunity to expand its
 An increase in the taxation rate is a
major threat.
 Shortage of skilled workers (Çengel
12

market segment by emerging entry.
 The lower taxation policy tends to
increase their profit margin so the brand
has a great chance to earn more (Aydın,
2019).
and Ledo Hernandez, 2019).
4.3 Propose strategic marketing responses to key emerging themes in a marketing strategy
The emerging marketing strategy is defined as a growth opportunity for ASOS plc all
over the world as the market is not saturated, bring changes, adopting innovative ideas, and using
an effective promoting channel that impacted positively on revenues and profitability. The
emerging themes for strategic marketing response in the chosen Organization are as defined:
1. Consumer relevancy and affordability
In the changing market, many countries are having a price-sensitive market where customers are
affected by the prices of products. Therefore, ASOS plc is setting retailing theme price in which
it set less cost of products with good quality for responding properly.
2.Availability and diffusion with undeveloped distribution infrastructure
In the UK, a high population is residing where it is important to provide products and services in
all areas. Therefore, ASOS plc responds to buyers, suppliers, and distributors by creating a big
area of a network that is the internet that can help customers to buy products.
Socially affected (Local)
The culture, tradition of the population in an emerging market is different that influenced
by products and services. ASOS plc is focusing on the social theme and introduces different
designs and cultures of products as well as accessories that make happy customers by getting fair
responses (Reynolds, 2019).
National theme
In a growing population the customers who come from other countries and foreign
affected by political, religious, and believes that can help ASOS plc to offer products according
to their culture. For example, in an event in another country, it brings trending clothes and
accessories that complete the desires and increases sales.
International theme
13

This theme states a global marketing strategy that is adopted by ASOS plc to increases
sales and brand image in a changing environment. For example, the chosen organization
formulate plans of expanding business in other global countries and uses different sources of
advertisement which can help to operate the business effectively and get competitive advantages.
Recommendation
Therefore, from the above, it has been recommended that ASOS plc should focus on
marketing strategy and corporate planning which can help to set goals and attain them properly.
In a business environment, there are several competitors, to face them there should know about
marketing and activities which can help to implement new planning and increase sales. Selection
of them and responds properly is an important task that can help to manage the business
performance and deliver the best quality of services. By using PESTLE and SWOT it can
analyze internal and external positions.
CONCLUSION
From the above report, it can be concluded that the marketing strategy of organization is
playing an important role who conduct the analysis and formulate the plans to operate the
business. If someone wants to operate their business and make strategies then it is important to
adopt them and increases productivity.
14

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