Report: International Marketing Strategies of Asda Stores

This report provides a comprehensive analysis of Asda's international marketing strategies. It begins with an introduction to international marketing and the background of Asda Stores, a British supermarket retailer. The report explores current trends in the global market and the structure of the UK retail sector, highlighting the dominance of major supermarkets. It examines Asda's competitive advantages, including its product focus on clothing lines and low pricing strategies. The report also identifies key marketing challenges faced by Asda, such as adapting to cultural nuances and product innovation in new markets. Recommendations are provided for building a sustainable competitive advantage, emphasizing values like honesty and transparency, eco-friendly practices, and partnerships with NGOs. The report suggests implementing workshops, supply chain transparency through AI and blockchain, and franchising to expand into markets like South Africa. The conclusion reiterates the importance of adapting to changing consumer tastes and the impact of various factors on the retail industry.

Running head: INTERNATIONAL MARKETING OF ASDA
International Marketing of Asda
Name of the student
Name of the University
Author note

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Introduction
International Marketing refers to application of the marketing principles that can help
in satisfying the needs and the wants of the various people who are living across the borders.
The company designs the marketing mix so that it can cater itself to the needs of the
customers in the global market. Asda Stores is the British supermarket retailer which has
headquarters within West Yorkshire. Asda Stores Limited was founded in the year 1949 in
the event of the supermarket that was owned by the Asquith family merging with that of the
Associated Diaries company within Yorkshire (Asda.com 2019). The company later on
expanded in the south of the England during the years 1970 and in the 1980. The company
has supermarkets besides offering other kinds of services like the financial services. The
company can prove to be interesting for examination as the company builds the stores within
the district centres in the smaller towns. It wants to capitalise on the small markets that can
consolidate its position in the world. In the year 2018, Sainsbury along with Walmart
announced the negotiations that helped in the creation of largest supermarket chain within
UK. This report throws light on the trends prevailing in the global environment and the
market structure in relation to the company. The report also discusses about the reasons that
has helped in ensuring the success of the company in the present age. The report also talks
about the factors that acts as the basis for the competitive advantage for the company. The
report also focuses on the marketing challenges that can be faced by the company in the event
of improving the international competitive position. The report also talks about the measures
that can help in building the sustainable competitive advantage for the company for future.

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Trends in the global Market
Trends in environment
There are various kinds of trends prevailing in UK that has helped in the development
of the retail industry in UK. Retail industry can be said to be vital for the economy of UK and
it helped in generating 395 billion pound in the year 2017. The retail landscape in Britain is
dominated by the supermarkets like the TESCO, Asda, Morrisons and the Sainsbury. The
grocery retailers are experiencing growth within the framework of the inflationary
environment and the online players are growing the market share in UK. The retail industry is
affected by various factors and the changing consumer behaviour has a great effect on the
retail sector of UK. The retailers have to adapt themselves to the evolving needs of the
consumers so that they make a profit in the competitive environment (Kotler et al. 2018).
Digital innovation is acting as a disruptive force in the retail industry that can have an effect
on the fate of the retailers present in UK. The high-street retailers have to face the financial
pressure owing to various factors like The National Living Wage of government which was
introduced in the year 2016. The retailers have to take a different approach in the present age
so that they can gain the competitive advantage. The retailers are blending the online and the
offline shopping so that they make a profit within competitive landscape (Ibeh, Crick and
Etemad 2019). The retailers are making experiments with the technology so that they can
attract the buyers into the stores. The machine learning are being used by the customers that
can help them in using data from customers for offering the personalised services.
Market structure for sector
Asda is located in various regions of UK that has proved to be of benefit for the
customers. The close competitor of Asda, Sainsbury used to operate within 608 supermarkets.
The merger of the company with Asda helped in closing the gap with that of the market
leader TESCO. The number of superstores of Asda have increased to 341 in the year 2019

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that helps in addressing the demands of the customers. Asda has various kinds of customer
segments on the basis of the gender, age, geographic, behaviour along with the lifestyle
related segments. The company sells the clothing lines to both the men and the women and it
makes garments that can cater to the needs of both the genders (Ghauri et al. 2016). The
shorts for the men are sold in specific seasons in spring and the summer that has helped the
company in emerging to be popular in the market of UK. The company is instrumental in
targeting the millenials who are trendy that has helped the company in creating a prominent
position in the market. Asda makes clothing for the warmer and the cold climate that has
been instrumental in increasing the dominance of the company within the world market. Asda
makes clothing for the kids, young people, adult men and the women that has increased the
market position of the company. The clothing lines help in meeting the specific requirements
of the customers that has greatly helped in serving the modern consumers. The traditional
clothing retailer of South Africa are witnessing more sales as compared to the e-commerce
platforms (Morschett, Schramm-Klein and Zentes 2015). This can help Asda in creating a
dominant position in the market of South Africa. The physical stores present in South Africa
can be said to be relatively more healthy as compared to that of the US and the UK market.
The store closures in these markets are outnumbering the opening and hence South Africa can
act as the target market for Asda.
Competitive advantage of Asda
Product and the market focus
The products that are offered by Asda are the exclusive range of clothing for the men,
women, kids and the baby. Asda has the own range of the clothing that is known as the
George that was launched in the year 1989. They are instrumental in offering the quality
fashion clothing at a price that is affordable. George clothing offers clothing of the latest
designs for the women like the accessories, coats, dresses, jeans, leggings, shirts, blouses and

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the skirts for the women. The company has clothing of the latest style for the men that can
adhere to the tastes of the men of the present age (Gomes, Sousa and Vendrell-Herrero 2017).
They also have the products related to the grooming of the men that has helped them in rising
above the competitors.
The company focuses on the tastes of the young women that can help the company in
making the profits in the market. Asda sells various kinds of dresses like the Midi Dress,
Playsuit and the Maxi Dress that can suit the tastes of the young girls of the present age. The
clothing range is on the basis of the age of the girls that helps the girls of various ages to
choose the clothing on the basis of their needs (Morgan, Feng and Whitler 2018).There are
various causes that have helped the company in attaining success in the domestic, regional
along with the international arena. The clothing range has become increasingly popular
among the people of UK as the company has formed the partnership with the fashion
designer called George Davies that has helped the company in earning a great amount of
profits. The name of brand Davies has helped in the continuing popularity of the company.
Basis of the competitive advantage
Asda has maintained the competitive advantage as they sell the products at that of the
low prices. The staff of the company are helpful that helps in providing the superior customer
service for the company. Asda hires the employees who carries out the ‘price check’ within
the rival supermarket chains that has greatly helped in the success of the company. The
company has cut the prices so that people of the lower and the middle income class can buy
the products of the supermarket store (Demangeot, Broderick and Craig 2015). Asda has
taken recourse to advertising that is a powerful tool for attracting the customers. The
company also displays the television commercials that acts as the source of competitive
advantage for the company.

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Strategic marketing challenges for Asda
There are several marketing challenges that are faced by Asda in the event of its
internationalization. The business along with the products are greatly influenced by the
cultural nuances of the particular region that can challenge the fortunes of Asda. The product
innovation is a challenge for the retail organization as it reaches out beyond the boundaries of
its own country (Javalgi and La Toya 2018). The company has to be acquainted with the
specific fashion trends in the new market that can act as a barrier for the company. The
company needs to have the right amalgamation of the marketing mix that can help it in
growing the market in the international domain (Fuentes-Blasco et al. 2017). The rise of the
ethical practices in the various countries can pose a challenge for the process of
internationalization of Asda. Asda has to take care of the fact that the sourcing partners does
not make use of child labour or the unethical methods that can obstruct the progress of the
company.
Recommendations
Building sustainable competitive advantage for future
The millennials in the present age are driven by the advertising along with the values
which can rightly ensure the long-term sustainability of a company. Asda should adhere by
the values of honesty, transparency and the authenticity that can help the retail organization
in winning the favour of the consumers in the future (Garrett, Lee and Chu 2017). The
company can make use of the element of sustainability in the process of the decision-making
that can help the company in attaining a strong position in the global market (Mosquera et al.
2018). The company can employ the eco-friendly practices that can be advantageous for
Asda. The company can form the partnerships with the NGO’s that are environmentally
minded that can help the company in becoming sustainable for the future (Thompson et al.
2018). Asda can audit the supply chain and make use of the better practices that can help the

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company in winning the trust of the people in the long run. The company wants to make the
minimal use of the resources that can help the company in getting a privileged position within
the market.
Implementation Plan
Asda can take recourse to the workshops along with the school-based initiatives that
can help the company in taking the initiatives in relation to sustainability. The supply chain
transparency can prove to be vital for the company in building the trust of the modern day
consumers. Asda can use the Artificial Intelligence and the block chain that can help the
company in tracing the various steps of the supply chain. Asda can take recourse to
franchising that can help it in entering the market of South Africa (Di Benedetto 2017). The
company can take the existing business model of the company that is successful that can help
the company in making the right impression in the new market. Asda can take the help of
software platforms that can help the brand in mapping the process of the entire supply chain
(Rootman and Krüger 2017). It can help the company in abiding by the environmental
standard that can take the company forward in the long run. It can help the company in
creating a lasting impression in the mind of the customers in various countries that can help
in differentiating it from the other companies (Hasan and Mishra 2015). This can help the
company in ensuring the foothold in a country like South Africa.
Conclusion
Retail industry can be said to be affected by various kinds of factors and the changing
tastes of the customers would have impact on the retail industry in UK. The retailers have to
serve the needs of the customers that can help a company in gaining a prominent position in
the market. Asda can take recourse to digital innovation that can have a goof effect on the
retailers of UK. George clothing offers various kinds of products that caters to the tastes of
the men, women, children and the kids. Asda can maintain the competitive advantage because

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they sell products in the minimum prices. The customer service of the company are very
helpful that proves to be of benefit for the company. Asda can abide by the principles of the
honesty and the transparency that can provide the company with a unique position in the
world market. Asda can make use of the market strategy of franchising that can enable the
market entry of company in South Africa and in the international arena. The company can
take the advantage of the successful model of business of the company that can increase its
presence in the global arena.
References
Asda.com (2019). Asda.com - Online Food Shopping, George, & more. [online] Asda.com.
Available at: https://www.asda.com/ [Accessed 22 Jul. 2019].
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