ASDA: Business Marketing Report - Analysis, Strategy, and Impact

This report provides a comprehensive analysis of ASDA's marketing strategies, examining the evolution from production to relationship marketing, and the adoption of customer-oriented policies. It delves into the impact of the UK's external political and economic environment on ASDA's operations, highlighting how these factors influence business decisions. The report also explores the promotional mix strategies employed by ASDA to enhance sales and customer engagement. Furthermore, it discusses the importance of quality assurance, customer satisfaction, and product safety in maintaining a competitive edge. The analysis covers political factors like tax rates and regulations, and economic factors such as economic stability. The report concludes by emphasizing the need for ASDA to adapt to market changes and mitigate risks to ensure sustained growth and profitability. The provided analysis is contributed by a student and available on Desklib.

BUSINESS MARKETING
RESIT INTERIM

Table of Contents
BACKGROUND.............................................................................................................................1
INTRODUCTION...........................................................................................................................2
TASK...............................................................................................................................................2
1. Production to relationship marketing era and customer oriented policy............................2
2. Impact of current development in UK's external political and economical environment.. 5
3. Promotional mix strategy...................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

BACKGROUND
ASDA is a supermarket retail chain, which is established in UK. Company was started
their business in approx 1965. They provide best quality products and services to their customers
and accomplish their demands timely. Their main is to set long term objectives and provide
better items and services to their buyers. Brand image of firm is very impressive, thus, they have
many investors who aid them to expand their business (Arnold, 2016). Merchandises as well as
services of ASDA is not much expansive. Employer of association conduct research timely,
which will assist them to know demands of their purchasers. As result to, they accomplish their
wants timely and take advantages from their competitors.
Market share of ASDA is approximately 17%, and they provide variety of products to
their shoppers, such as electronics, home wares, clothes and so on. Along with this, they have
their stores in all over the world.
Marketing strategy of company is much effective, it assist them to increase their growth
as well as revenues. Before developing plan, they identify their environment appropriately i.e.
external and internal. Thus, manager can take decision more effectively which is beneficial for
them. There main focus is to accomplish needs and wants of their buyers within time span. They
provide quality goods and services to them which will help them to compete their competitors in
commercial center. Items of ASDA is much innovative, which assist them to attract more
customers towards them (Ahmed, 2012). Additionally, they segment their market, thus, they can
accomplish needs and wants of each and every type of people appropriately.
It is essential for manager of ASDA to maintain an effective communication with their
clients. As result to, it will increase brand loyalty as well as reputation in marketplace. Along
with this, it is necessary for firm to analyse their external factor very well, like political,
competitors, government and so forth. Company has to use new tools and techniques in their
business, which will assist them to improve their work performance and additionally revenues
and goodwill in marketplace.
Organisation can use pricing strategy in their concern, which will aid them to take
advantages from their rivals. If value of ASDA's product and services is less and they maintain
quality of it, then it will help them to enhance their customers. Along with this, to keep better
quality of items, manager can provide training to their staff members. As result to, it will assist
them increase their skills and knowledge.
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It is essential for employer of ASDA to take opportunities from market, to improve their
profits (Chu, 2016). Their main rivals in market is Tesco, Sainsbury etc., thus, to beat them at
commercial center, they have to develop an unique strategy. Along with this, they can utilize
promotional plan to increase their sales. Because if they promote their goods, then it may also
attract more buyers towards them.
ASDA using best distribution strategy in their business, which aid them to give their
items in all over the nation. Additionally, they sell their products online to people at a reasonable
prices.
INTRODUCTION
Marketing is essential for each and every sort of business, as it assist them to improve
their sales as well as to attract more consumers towards them. Along with this, organisation can
easily improve their profits (Liebisch, 2016). If they use an effective business marketing strategy
in their business, then it will aid them to take competitive advantages from their competitors.
ASDA is a retail store, which is established in UK and providing their services to all over the
world. Their main aim is to provide goods and services to their customers as per their
requirements within time span. Main purpose of this report is to explain marketing evaluation
era. There are various factors which can affect company externally. Major elements are political
as well as economical, they both affect organisation greaterly. Manager of association can use
promotional mix strategy in their firm, it will assist them to enhance their sales. It may comprises
advertising, social sites, internet marketing and so forth.
TASK
1. Production to relationship marketing era and customer oriented policy.
Way of marketing is continuously changing with period of time. Thus, if organisation
wants to take advantages from market then it is must for them to use latest type of marketing for
their products and services (Sargeant and Paine, 2015). There is a description of some stages
which is related to evolution of marketing, are mentioned as below:
Production orientation era: While workers of organisation is developing their goods and
services, it is essential for them to reduce or eliminate unwanted cost so that people can easily
purchase it. If ASDA wants marketing growth then it is must for them to improve their
production as well as distribution system. Along with this, accomplish needs and wants of
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customers timely. Value of any item is generally based on its production cost. Basically, people
focus on quantity of item.
Product orientation era: As per this, behave or attitude of people is shifted from production to
product. Now individual wants quality goods form firm and they do not want to focus on
quantity. Innovative merchandises will attract more customers towards it. Hence, if enterprise
wants to improve their sales then they have to offer quality items to society and develop them in
innovative way so that there is no need of promotion (Stack, 2011).
Sales orientation era: Now, in market competition is continuously increasing and there are
numerous options available for buyers. Thus, if company wants to increase their sales then it is
essential for them to promote their products and services. Hence, as indicated by this era, firm
has to do creative advertisement of their items so that they can easily convince their buyers to
purchase their merchandises.
Marketing orientation era: According to this, now manager of ASDA focus on needs and
wants of their customers so that they can accomplish it within time period. At present, clients are
king of marketplace, thus, it is must for organisation to fulfil their demands. As result to, they
can improve their profits and reputation in market.
Relationship marketing orientation era: This approach is too modern and as per this,
enterprise has to target their market, thus, they can deliver best products to them. Along with
this, if firm wants to attain more success as well as growth, then they have to maintain an
effective relationship with their clients. It will assist them to increase their revenues and they can
take advantages from their rivals also (Evolution of marketing, 2017).
There are various customer oriented policies which are used by manager of ASDA, are
described as below:
Quality assurance: It is essential for organisation to improve quality of their products
and services so that they can maintain setted standards. If people do their work in team rather
then individual then they can achieve their targets and objectives within time span. Along with
this, if manager of enterprise wants to improve performance of their staff members then he or she
can provide training to them. Additionally, it is must for them to maintain quality of their
products (García and Priestley, 2015).
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(Source: Customer oriented approach, 2017)
Customer satisfaction: If company wants to survive in marketplace then it is essential
for them to satisfy demands of their clients. For this, they can conduct research to know needs of
their buyers. As result to, it will aid them to take advantages from their customers. It is essential
for enterprise to use new tools and techniques in their business, so that they can produce quality
goods for their shoppers. Employer can give training to their workers, thus, they can use new
equipments more appropriately. Along with this, it will help to reduce accidents during time of
manufacturing (Gleeson and Thomson, 2012). If they appropriately satisfy their buyers then it
will assist them to take advantages from their competitors as well as they can improve their
incomes.
Ensuring product safety: It is necessary for employer of ASDA to develop their items
safely. They have to use new or unique methods into their goods so that it will aid them to attract
more customers towards them. Design as well as quality of product must be up to the standard.
Demands of clients may differ according to their countries. Thus, it is must for them to be ensure
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Illustration 1: Quality assurance promotion

about it and distribute items as per tastes and preferences of their buyers (Customer oriented
approach, 2017).
2. Impact of current development in UK's external political and economical environment.
There are various external factors which can affect business externally, thus it is essential
for organisation to determine it appropriately as well as adequately. But there are main two
elements such as political and economical which can largely influence business of ASDA. They
both are described as below:
Political factors: This factors can affect an association largely, thus employer has to consider it.
When company expand their business in other countries then they have to follow their rules and
regulations (Peart and Atkins, 2011). Along with this, it is must for them to determine upcoming
laws which can influence their firm positively as well as adversly. Political elements can affect
an enterprise in many manners thus it is must for manager to determine risk and eliminate it from
business, so that they can safe from high losses. Along with this, employer has to understand this
factor adequately because it can affect outcome of company. Additionally, enterprise has to be
ready to face each and every sort of politics, it may be local as well as international also. Main
important example of this element is increment and decrement in tax rates. If there is increase in
tax rates then it may directly affect business of ASDA. Thus, it is essential for organisation to
stay updated related to political nature because it may influence needs and wants of customers.
Along with this, new technologies can also affect with political factors.
There is very less chances to predict about this element. It can be alter as there is any
change in political party of country. If there is more corruption in state then it may affect
development of nation. There are various other political elements which can affect organisation,
such as law related to education, discrimination and so on as well as inflation rates.
 Impact on economy: Economic surroundings can affect performance of firm either
positively or negatively. For instance, there is too much variations in policies which is
related to democratic (Gündüz and Crystallin, 2014). There are some elements which can
directly impact economy, like tax, spending of regulatory bodies.
 Alteration in regulations: If government of country wants to modify their rules and
regulations then they can do it as per need. It can provide impact, business of ASDA as
well as nation also.
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 Political stability: If there is too much instability in politics of country, then it may affect
operational activities of company in a greater context. Thus, businesses which are
expanded in many nations then they largely affected by it. Additionally, if any company
which is having similar nature as ASDA, adopt any other firm then they can improve
their market share. As result to, it may influence profits as well as market share of
ASDA.
 Mitigation of risk: If company wants to ensure their political hazards then they can
purchase risk insurance for this. Thus, those association who work worldwide use this, as
result to, they can reduce their risk (Political factors affecting business, 2017).
Economical factors: These elements play an essential role in business decision making, thus it
is must for manager to take it under consideration. As result to, they can take an effective as well
as efficient judgement for their business. These components are generally linked with items,
money as well as services. Along with this. they all can provide impact directly to business
whether it is domestic or internationally. Some factors are comprises into, such as recession,
exchange rates, demand or supply and so forth. Rate of interest may differ according to country
and if ASDA taken loan form any bank, it can largely affect their business strategy. Along with
this, if organisation export their goods and services then exchange rates can affect their business.
If there is recession in nation, then purchasing power of people may go down, as result to, it may
influence their revenues (Economic factors affecting business, 2017).
 Consumer confidence: With help of this, organisation can easily measure their clients of
nation. Some purchasers want to spend their money more on goods and vice versa. If
buyers are much confident then manager of ASDA can take it as an opportunity and
increase their profits but if they want to spend less on items, then it is must for company
to cut down their cost, so that they can maintain their incomes.
 Inflation: If there is an increment in prices of products and services then inflation rate
will be high. If there is increase in business expenditures like value of crude materials
which is utilized in manufacturing. But it may reduce or decrease if buying power of
clients get minimized (Economic factors affecting business, 2017).
3. Promotional mix strategy.
While generating marketing plan company has to target market and for this they can use
some key factors, which are called as promotional mix. It includes public relations, sales
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promotion, advertising as well as personal selling. With assist of this, company can easily attain
their desired aims and objectives in an effective and efficient manner (King, 2014). Components
of promotional mix are mentioned as below:
Advertising: This is an essential element which help organisation to improve their sales as well
as profits. It is like a one way as well as paid communication which will aid enterprise to
improve their productivity. Additionally, an effective advertisement helps firm to attract more
customers towards them. For this, ASDA can use various tools and methods such as TV, print
media, internet and so on. With help of this, they can reach to each and every type of people
easily. They also launch new products for their buyers and they provide discounts to them, of
there is any special occasion. There are some disadvantages of using this method is, it may incur
high cost as well as manager cannot get immediate feedback from their customers.
Public relations: It is an essential technique which is used by firm and helps to increase their
revenues as well as reputation in marketplace. Major aim of using this method is that, enterprise
can easily measure attitude of their buyers, so that they can improve their products easily. If there
is a positive relationship among purchasers and firm then organisation can easily develop an
effective publicity in media. Along with this, it assist them to minimize their negative impact on
some circumstances (Draper and et. al., 2011).
Sales promotion: This method helps company to promote their products and services. It is
generally related to short term objectives. For this, employer of ASDA can use some methods,
such as they can distribute their items as a free samples, they can start some contest for their
buyers and so on. Along with this, they can offer some discounts to their clients, which will aid
them to improve their sales as well as profits.
Personal selling: This method is too much effective as with its assistance firm can easily
enhance their sales as well as revenues. By using this tool, an organisation can easily grasp too
much attention of their clients. Along with this, it is very interactive approach. Major
disadvantage of this method is, it is very expensive in nature. Additionally, enterprise can reach
only limited number of people.
Internet marketing: Now days, company is basically using this tool to promote their goods and
services. It is much effective and efficient method and helps to attract more clients towards them.
It is also known as online marketing and firm can do it with aid of various tools and techniques.
Main advantage of this method is that people can easily get essential information about products
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and services online. Along with this, data and information can accessed by individuals any time
as per their needs. As result to, it is much convenient for persons. With help of this technique
persons also can easily get updated information. But main disadvantage of this method is that
company is not able to maintain an effective relationship with their clients.
Social media: It is an essential tool of promotional mix, which is used by manager of ASDA to
promote their goods and services. They can utilize some social sites for this, which may include
Facebook, Twitter, Instagram and so on. In country, there are numerous people who are using
these sites on regular basis. Association can post their ads on these networking sites to reach
many individuals in nation (King, 2014).
Sponsorship: If brand of image of firm is too impressive then they will get sponsors for them
easily. As result to, it will also assist them to increase their sales as well as productivity. But it is
generally utilized in occasion which is related to sports.
Thus, as mentioned above, if ALDI use all of these promotional mix strategy in their
business then they can easily improve their sales as well as profits. Along with this, it will assist
them to take advantages from their competitors in marketplace. It will aid them to know interest
of their clients, so that they can accomplish it within time span.
CONCLUSION
As per above mentioned report, it has been concluded that company use business
marketing, so that they can easily improve their productivity. It will assist them to take
competitive advantages from their rivals. If they use an effective advertising strategy in their
business then they can easily attract various clients towards their products as well as services.
Additionally, it is must for them to develop items more innovatively, it will also aid them to
enhance their sales. In this assignment, there are various factors which can affect their business
either directly or indirectly. Along with this, it is must for manager of organisation to maintain an
effective and efficient relationship with their customers, as result to, they can maintain their
brand image in marketplace.
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