Asda Stores Limited: Sales Development Report Analysis

This report provides a comprehensive analysis of sales development strategies, using Asda Stores Limited as a case study. It begins by examining the key components of a product, including core benefits, actual product, and augmented product, and their contribution to sales and profit. The report then assesses market segmentation strategies, focusing on demographic segmentation. It delves into the factors influencing buyer behavior, including cultural and social influences, and evaluates various advertising media for sales development. Furthermore, it explores the use of external merchandising to maximize customer volumes, the influence of design and layout on customer spending, and the effectiveness of internal merchandising materials and promotional activities. The report also assesses personal selling techniques, the influence of operational design on sales revenue, and key principles for a sales training program. The report concludes by summarizing the key findings and recommendations for enhancing sales development within the organization.

Sales Development
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TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
TASK A................................................................................................................................................3
a) Key components of product and contribution of product mix to sales and profit (1.1, 1.2).......3
b) An assessment of the market segmentation contribute to maximise sales (1.3)..........................5
TASK B................................................................................................................................................6
a) A discussion about the factors affecting buyer behaviour (2.1)...................................................6
b) An assessment of the advertising media that could be used for sales development situations (2.2) 7
c) An evaluation of the use of external merchandising to maximise customer volumes (2.3)........7
TASK C ...............................................................................................................................................8
a) Assessment of the influence of design and layout on customer spending (3.1)..........................8
b) Review and evaluation of the effectiveness of internal merchandising materials (3.2)..............9
c) Evaluation of different promotional activities according to different scenario (3.3)................10
TASK D..............................................................................................................................................11
a) Evaluation of personal selling techniques (4.1).........................................................................11
b) Influence of operational design on sales revenue (4.2).............................................................11
c) Key principles that should be included in a sales training program (4.3).................................12
CONCLUSION..................................................................................................................................13
REFERENCES...................................................................................................................................14
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INTRODUCTION
Sales development plays an important role to enhance the profitability and attracting large
customer base in the organization. Team of sales development focuses on sales cycle of the products
and services with an objective to increase them at an effective rate (Porter, 2014). For conducting
present research, the chosen company is Asda Stores Limited. Sales margin of Asda is rising day-by-
day. Asda is the American owned and British founded supermarket in the retail sector of the UK. The
company also deals with financial services and its promotions are based on pricing its goods and
services which is low as compared in to its competitors. The other products in which Asda deals are
grocery and general merchandise (Asda, 2015). The store format that Asda used is in the form of retail
outlets, superstores and supermarkets. Asda is one of the largest supermarket chains which have
number of stores in the United Kingdom (UK).
The report comprises of four tasks. The first task covers the elements of product and its
segmentations. Second task covers the factors of buying behaviour and its external merchandising
techniques. The third task covers the promotional activities and internal merchandising materials sell
techniques. The last and fourth task includes personal selling techniques and the role of management in
the sales development of the organization.
TASK A
a) Key components of product and contribution of product mix to sales and profit (1.1, 1.2)
Key components of the product
A product can be distinguished as an item or service which is offered for sale. It can be tangible
or intangible in nature. Product offered should meet the requirements of consumer needs. Decision
which is taken by the organization for the product should be effectively relate to the consumable parts
of that particular products. There are three components of the product and these are core benefits,
actual product and augmented product which are categorized as below: Core Benefits: Company should focus on core benefits of the product because most of the
customers are depended on the main products which are consumed by them. The core product
is used as benefited and problem solving service which is for the consumer that are buying for
individual use. The main component of the product is focussing on the benefits which are to be
offered to the desired customer (Bridgwater, 2012). Most of the customer wants their products
should be easy to use and should be risk – free. This is because; the core benefits can be
acquired through the main product which is consumed by the consumer itself. Thus, by
undertaking actual decision of giving core benefits with goods and services, product is planned
and delivered by the seller.
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 Actual Product: The components of the products which offered the core benefits of the product
by which the actual product has been made. Within the actual product, main product lies which
is purchased by the consumer to be consume. For example, juice bottle which come in the
bottle can make dispensing easy but the consumable product is that juice which is drink by the
consumer (Product Mix decisions – Width, length, depth and consistency, 2015). Sometimes the
actual products needs different product decisions which comprises of branding, features,
quality, packaging, advertising etc. The actual product is tangible in nature which mainly
emphasis on its design and quality . Augmented Product: This type of product helps the actual product to increase their customer
base and strengths the buying behaviour of the consumer to make purchase. The measures or
items which are included in the augmented products are as follows: Guarantee: This is an assurance to the customer regarding the product. In case, if there is
any default in the product purchased, then the company assure to replace or refund the
same. Customer Service: If consumers purchase any product, then the company provide after
sales service to their customers on phone calls or through meeting them personally (Myers,
and et.al., 2016). Complementary Products: When some product is sold with some additional product, the
intention behind the same is to attract more customers to buy their products and services.
For example, carry bag with the laptop or earphones with the mobile phones. Warranty: This comes with the time period which extends after guarantee period to cover
the repairing items through replacement. Accessibility: If the location of products and services are near to the consumers, then there
is chance of attracting large number of customers. This can be obtained through stores
which are located in the centre of the city or by delivery systems.
Contribution of the product mix to sales and profit
Number of product lines which company sell to their customers varies from product to product.
The product mix defines the crucial decisions that are related to goods and services which include
quality, designing, packaging etc. The other essential thing which is included in the product mix is
assortment. When manufacturer offers different products and services to their customers, then it is
known as product mix (Das and Chowdhury, 2012). When company initiates its market operations with
one product category then later on it diversifies its activities towards more products. For example, Asda
made its entry as grocery and general merchandise retailer but later on they entered into various other
products such as financial services and mobile network etc. The components of product mix are as
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follows:
 Branding: It is an important aspect of the product which can identified through its name,
symbol, design, logo etc. Branding is done to satisfy customers as-well-as to deliver good
quality products to them. Brand name tells about the company’s position as well as expands its
market share in the market (Tsai and et.al., 2013). Brand name should be catchy, simple and
easy to use. Brand name will help the customer to differentiate the products in the market.
 Packaging: A Company always supply its products in packaged form. For example, juice in
tetra pack, chocolates in wrapper, tube of paste etc. packaging has become important because of
rising health and sanitation. Packaging helps the products to protect from breakage, insects,
littering etc. It helps the customer to differentiates the goods and services in terms of quality
and brand.
 Labelling: It refers to the identification marks which are marked on the package. Label
provides the information like product name, manufacturer name, ingredients, expiry and
manufacturing date, general instruction etc. (Stiglitz and Rosengard, 2015) . It helps in
promoting the products and attracting the customers through appealing and colourful products.
Label is also used to fulfil the legal requirements which are printed on the package.
b) An assessment of the market segmentation contribute to maximise sales (1.3)
Market segmentation is done on the basis of segmenting the different groups within the market
which share same characteristics and habits. The market segmentation is done on the basis of the four
segments and they are demographic, behavioural, geographic and psychographic segmentation. Asda
which deals in grocery and general merchandise and have varieties of products and services which is
focussing on “watches” in accessories section. For watches, Asda is emphasis on the demographic
segmentation to target their customers because this segmentation can easily be influenced and attracted
by the customers to developed their sales (Li and et.al., 2013). Demographic segmentation is done on
the basis of customer, age, gender, social attributes etc. Asda is focussing on the all sections of the
demographic segmentation. Watches are liked by the all the ages of the people whether it is children,
youth, professionals etc. Asda is focussing on kids through offering fancy watches to them which is
attractive and colourful and parents can buy for their children. Asda is targeting the youth and
professionals who are university and office going which will attract customers to buy the branded
watches. Asda is targeting the middle as well as upper class families which can purchase the watches
according to their income level (Tony, 2014). Asda is building their outlets in the superstores, centre of
the city to attract large customers base of age groups.
Market segmentation is divided into various segments by which company can develop their
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advertising programs for each segments. Company always favour the marketing to promotes their
products and services by which they can increase their sales. According to the customers' tastes and
preferences and lifestyles, company segmented their customers and that only they apply their market
strategies (Wedel and Kamakura, 2012). There are different types of marketing techniques which is
used by the organization such social media, mass media such as advertising, newspapers, television etc.
If there are interested customers to the particular products then sales of the products will automatically
increases and helps the organization in rising their profits.
TASK B
a) A discussion about the factors affecting buyer behaviour (2.1)
The study in which includes customers' perceptions about products and their quality,
experiences and the impact which these processes have on the consumer is known as buyer behaviour.
Consumer behaviour changes accordingly to the tastes and preferences and their lifestyles by which
they gets satisfied and meets their needs. Buyer behaviour also affects the company's products and
services through their loyalty towards the company or their brand (Bruwer, 2014). For instance: if
customer is loyal towards Asda then they will purchase their products from it only not from other
organization. If Asda increases its price then only loyal customers will stick to the Asda only. There are
major factors which affect the consumer buying behaviour and they are as follows: Cultural Factors: Cultural factors have a important impact on customer behaviour. Culture
influence a person’s needs, requirements and behaviour. It may be possible the people can
influence other people in different needs and behaviour. The company always try to aim at the
culture shifts which introduce new products to the different customers (Tingchi Liu and et.al.,
2013). That can be needed by the customers and helps in increasing the demand of that
particular products and services.
 Social factors: A customer’s buying behaviour is also influenced by social factors by which the
customer belongs and their social status. Each culture comprises of sub culture in which it
categorized the groups of people which share same values. Sub-cultures can consider religions,
racial groups, nationalities and groups of people sharing the same geographical location.
Sometimes a sub-culture will make a significant and distinctive market segment of its own to
buy any products and services (Baker and Parkinson, 2016). For example, the youths and
professionals has quite well-defined values and purchasing characteristics from the older
generation.
Likewise, variation in social class can make their own customer groups. In fact, the official six
social classes in the UK are widely used to predict different customer behaviour. In the UK’s socio
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economic classification scheme, social class is not just observed by income (Consumer Buying
Behavior, 2015). It is measured as a combination of education, occupation, wealth, financial position
and other variables.
b) An assessment of the advertising media that could be used for sales development situations (2.2)
A notice or announcement in a public through various mediums such as mass media media or
through social media to promote any products and services or event or for publicize any job vacancies
are known as advertising. Mass media in advertising can be done through print or electronic such as,
newspapers, magazines, radio, televisions, pamphlets, brochures etc. Social media comprises of
Facebook, Twitter and other social networking websites etc. Advertising is a function of marketing and
basically cover methods of communication with audience designed to produce sales enquiries, and
improve awareness and perceptions of product, brand and organization (Lee and Hong, 2016).
Advertising refers to printed and electronic media that is presented one way or another to market or to
the large customer base. It includes packaging, point of sale, brochures and sales literature.
Advertising increasingly extends in traditional and online media that combines provision of objective,
helpful information and more subjective advertising or endorsement.
Advertising when properly executed then it is the statistically driven and measurable execution
of marketing strategy from carefully selected communications methods which are targeted for the
desired audience. An advertising plan for one product will vary from product to product. Advertising
can be typically done with other media also such as signs, brochures, commercials, direct mailings or
e-mail messages, personal contact etc. (Wimmer and Dominick, 2013). There are various benefits of
advertising the products which helps in enhancing the sales development such as introduces a new
product in the market, expansion of the market, increased sales, fights competition, enhances good-
will. The other benefits from advertising includes educates the consumers, elimination of middlemen,
better quality products, supports the salesmanship, higher standard of living, more employment
opportunities, reduction in the prices of newspapers and magazines.
c) An evaluation of the use of external merchandising to maximise customer volumes (2.3)
Asda are flexible in their approach, from stand-alone non-food Asda Living stores to a range of
food store formats. The external merchandising plays an important role in the attracting large number
of customers. The items which is displayed in the outer shelf of the retail outlets attract more number
of customers to purchase their products and services. The external merchandising helps the
organization in influencing the customers to purchase their products and services (Chaudhary and
Jadhav, 2014). Merchandising is the arrangement of products in a physical or online store to maximize
sales. The objective of merchandising is next to the sale after advertising campaigns bring customers
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into the store. Good merchandising escaped up time, makes the selling process simpler, enhances the
buying experience for consumers and drives sales growth. The basic merchandising techniques
includes displaying the same merchandise together, simple and clean displays, ample aisle space, well-
stocked shelves and prominent featuring of promotional items (Moayery and et.al., 2013). For
example, Asda also in furniture store so it may create a mock living room with different pieces of
furniture items and fixtures to generate sales in these products.
Attractive floor displays of seasonal goods in high-traffic areas also drive higher sales and
profits. Some association recommends storing slow-moving and low-priced items away from
customers to encourage high sales development. The first impression is usually the most important one
that is why window displays in brick-and-mortar stores and landing-page layouts in e-commerce stores
are so important (Bailey and Baker, 2014). Secondly, the type of store usually dictates the floor and
shelf layout. For example, Asda's grocery stores should have enough aisle space for shoppers to move
their shopping carts and accompanying their toddlers around when they are doing their shopping. For
instance, Asda as a clothing retailer may display their most recent fashions in its window display to
attract their customers' attention. The proper use of lighting creates a mood and illuminates the
merchandise especially during high festive seasons.
TASK C
a) Assessment of the influence of design and layout on customer spending (3.1)
In order to influence the customer spending it is essential for Asda manager to focus on the
proper design and layout of their stores as well as their products and services that results in influencing
the customers spending. For instance; the environment and ambiance of the supermarket is the first
priority that is noticed by the customers (Jamal, Maqbool and Misra, 2014). Store ambiance or layout
generally focuses on utilizing the space by planning and arranging the products in such a manner that it
may be easily visible by the customers. Furthermore, the store layout also affect the presentation of
merchandise that further results in influencing the purchasing decisions of customers.
In addition to this feature area of Asda supermarket also influences the customers spending as,
it is mainly designed to acquire the attention of customers towards the displayed products in the store.
The feature area generally includes window display, in-store display of the variety of products, cash
counters etc. the foremost area that keep attract and influences the customers purchase decisions is
related with merchandise that has been displayed on the window by visual message. However, in-store
displays within the Asda supermarket consists of different props arranged that generally contain wide
variety of products arranged in different sizes.
Furthermore, the store atmosphere is also an key element within the layout that keep influences
and direct the customer spending on the Asda products and services. The effective store atmosphere
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generally focuses on arousing the perception of the customers and their responses towards initiating the
purchasing activity (Meirelles, 2013). Basically the Asda atmosphere mainly consists of lighting,
music, scent etc. for instance, with the use of adequate lighting on the assorted range of merchandise
positively influences the shopping behaviour of the customers. As, proper and right lighting within the
Asda stores result in displaying the best products.
Moreover, scent or aroma of the stores within the supermarket also positively impact the
emotions, mood and behaviour of customers that will result in providing satisfactory experience of
shopping. Furthermore, with the scent stores customers get motivated towards revisiting the
supermarket as it will provide level of excitement in shopping experience.
b) Review and evaluation of the effectiveness of internal merchandising materials (3.2)
Internal merchandising material plays an essential role in enhancing the sales development of
Asda products and services in the marketplace. Merchandising refers to an activity for marketing and
promoting the gross sales of products at the retail. Therefore, in order to ensure proper sales
development and merchandising it is essential for the manager to focus on the different internal
merchandising material that support the retail supermarket in earning sales revenue (Wu and et.al.,
2015). The different internal merchandising material include internal signage, electronic sales aids,
sales material etc. that support Asda in enhancing their sales ratio.
The foremost material within internal merchandising include focuses on internal signage that is
usage of graphical designing or sign board for providing direction and warning to the customers and
staff those who work in the supermarket. The effectiveness of using internal signage within the Asda
supermarket is that through proper signage they can easily reach and provide the required information
to the customers those who purchase the variety of merchandise from the store. However, another
effectiveness is that signage assist the customers in locating the products in different shelf or the area.
However, through internal signage in the supermarket it may also result in providing different
information related with the products so that customer can easily acquire the required merchandise. In
addition to this, the effectiveness of internal signage also result in identifying the location of variety of
commodity categories within the store (Shanmugam and et.al., 2013). However, there are different type
of signage that must be used within the Asda supermarket that is category signage, promotional signage
as well as point-of-sale signage. Under category signage Asda manager focuses on marking the sign
broad that support the customers in determining the types of products that offered by Asda within the
stores. Another signage that is promotional signage that is being used by the supermarket to describe
the different promotional offers provided by supermarket to their customers. The effectiveness of
enabling internal signage is that it support the customers in knowing regarding the products that are
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offered by the Asda at the discounted prices.
On the other hand, another internal merchandising material include electronic sales aids that is
advanced electronic products that are being used within the supermarket so that they can ensure proper
billing and selling of products to the customers. With the help of electronic sales aids it may result in
overcoming the queuing system in the store.
c) Evaluation of different promotional activities according to different scenario (3.3)
In order to enhance the sales volume of Asda products and services it is essential for the
manager to focus on different promotional activities in the different scenario. For instance; Asda
focuses on introducing range of watches for different age group customers. For this supermarket can
use range of promotional activities for generating the sales volume of products in the different situation
that is in competitive scenario all supermarket are focusing on using the social media tool fro
marketing and promoting their range of products to the large mass of audiences (Rizwan and et.al.,
2013). Through social media sites like Facebook, twitter Asda can easily market the different variety of
watches and accessories to the customers by targeting different age group customers. Therefore, in he
competitive retail scenario this promotional activity is effective for Asda to target different segment
customers that in turn result in appealing the image of Asda in the global market.
On the other hand, in the situation of any festive season to enhance the sales of watches and
accessories in the market Asda supermarket can promote their products through organizing any
contests and program. Thus, this promotional strategy is best suited for Asda in order to promote their
branded accessories and collection of watches in front of large public.
In addition to this, Asda supermarket can also use the direct marketing promotional technique
for marketing and promoting the products and services. Direct marketing generally involves sending
message or mail services to the customers who often purchase the products and services of Asda.
Direct marketing technique is consider as cost effective technique that results in tailoring broad
information to large of mas of audiences in the single time. The foremost advantage of using Direct
marketing promotional techniques is that it is an effective method for testing the success of new
products as it is very quick and fast medium for marketing the assorted range of products offered by
the Asda (Terpstra and et.al., 201. Other than this, Asda supermarket can also use the sales promotion
techniques for promoting and marketing the products. The different sales promotion technique that can
be used by Asda include providing price discount, coupons, additional discount etc. that often support
the supermarket in generating the sales ratio of their products and services.
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TASK D
a) Evaluation of personal selling techniques (4.1)
Personal selling is an effective promotional techniques that must be used by Asda sales person
to enhance or raise the sales volume of their wide range of products and services. Under personal
selling technique sales person uses their abilities and skills to persuade and influences the other party
that is customers to engage in the purchase decisions. However, the main objective behind initiating
personal selling is to influence and direct the customers to engage in the purchasing activity. In
addition to this, personal selling technique also consider as procedure that ensure verbal and written
communication with the potential customers with the main aim to merchandise the required product
and services (Erevelles. and Fukawa, 2013). Along with advertisement and sales promotion Personal
selling is also consider as an effective promotional tool that support the Asda in promoting and
marketing their products to the ultimate customers. Advertisement is the paid form of technique that
ensure promotion of the products through television and internet sources. However, the sales
promotion is another selling technique that include usage of incentives, coupons, rebates etc. that
support Asda in selling their products and services to customers.
In addition to this, introducing personal selling results in offering certain disadvantage and
advantage to the Asda supermarket. On the positive note with the help of personal selling sales person
within Asda can easily target their customers and provide them required and necessary information
regarding their services and features of products so that customers can engage in the purchase
procedures (Comer and et.al., 2014). On the hand another advantage of introducing personal selling
technique is that it support the salesperson in gaining quick response and feedback from the customers
regarding their products and services. In addition to this, evaluation of personal selling technique also
offer effective persuasive impact on the customers.
On the contrary, there is also some negative impact of using personal selling technique within
the Asda stores that is through initiating personal selling salesperson cannot reach and provide
adequate information to the large audiences as compare to other form of advertisement. In addition to
this, another disadvantage of personal selling include that it generally result in arising the conflict in
the store. As if the sales person are not well trained then they may not able to communicate the value
and benefit of the products to the customers that result in arousing the situation of conflict within the
supermarket.
b) Influence of operational design on sales revenue (4.2)
In order to enhance and raise the sales revenue of Asda supermarket it is essential for sales staff
to focus on effectiveness of operational activities. Therefore, operational design within the Asda
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supermarket that is structuring the activities of procuring the raw material, storing and displaying the
products, selling the products to customers etc. must be sequenced and organized in the effective way
so that it can directly contribute in enhancing the sales revenue and raising the overall growth of
supermarket in the retail industry (Chung and et.al., 2013). In addition to this, effective operational
design of Asda directly influences the customers to purchase products from Asda supermarket that
further result in enhancing the profit ratio. However, through proper operational design within the
supermarket customers can easily purchase the required products that result in increasing the level of
their shopping experience. Therefore, it may result in revisiting the supermarket in the future also and
thus, customer will also recommend the store products to their fiends and family that contribute in
enhancing the sales revenue.
However, sales staff may also uses the technological advanced equipment and tools within the
supermarket that reduces the manpower and manual activity of billing the products. Furthermore, with
the usage of technological products and equipment is may result in performing the operational activity
in the effective manner that further outcome in contributing to the sales revenue. Furthermore, with the
new and advanced technological equipment within the supermarket also result in faster the flow of raw
material as well as it may also support the Asda in maintaining the adequate level of stock within stores
(Pierre, 2014). In addition to this, influence of operational design within the Asda store also result in
organizing the range of assorted products in the proper manner so that customers can easily identify the
required products. Thus, it may result in satisfying the requirement of customers that further lead to
enhance the sales revenue of Asda supermarket.
c) Key principles that should be included in a sales training program (4.3)
Sales training program is essential within Asda supermarket that support the sales person in
amending their skills and abilities that would support them in enhancing the sales of their products and
services among their customers. Therefore, there are certain principles that must be included within the
sales training program of sales person that would result in amending the required skills and abilities
that overall support the Asda supermarket (Attia, and Honeycutt Jr, 2012). The key principles that
should be included in the sales training program include-
 Positive sales attitude- The foremost principle that must be included in the sales training
program include focusing on managing the positive attitude of sales person towards selling the
products and services of Asda. With the help of positive attitude sales person will engage in
ethical sales practices within the store that result in satisfying the customers in gaining adequate
products and services as per the requirement.
 Incorporation of sales role- Another principle that must be incorporate while rendering ales
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