SOSTAC Analysis of Asda's Marketing Strategies: UK and India

This report presents a SOSTAC analysis of Asda's marketing strategies, focusing on its current position in the UK market and its potential expansion into the Indian market. The report begins with an introduction to marketing and the SOSTAC model, outlining its elements: situation, objectives, strategy, tactics, actions, and control. It then delves into a detailed situation analysis of Asda, including SWOT and PESTLE analyses to assess its internal and external environments. The report explores Asda's strengths, weaknesses, opportunities, and threats, as well as the impact of political, economic, social, technological, legal, and environmental factors on its marketing plan. The report proposes marketing objectives for Asda in the Indian market, focusing on building brand recognition and gaining positive customer feedback. It suggests strategies, tactics, and actions, including community building through donations and social media campaigns. The report also covers the marketing mix, including product, price, and place strategies, and recommends control measures, such as market surveys, to evaluate the effectiveness of Asda's marketing efforts. The report concludes by assessing the feasibility of implementing Asda's marketing strategies in the international market, considering the unique challenges and opportunities presented by the Indian market.

Asda SOSTAC Report

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1. SOSTAC Model .....................................................................................................................3
TASK 2............................................................................................................................................9
Measuring the effectiveness of Asda SOSTAC strategy currently utilised in UK market ........9
Determining whether the marketing strategy utilised by ASDA can be implemented in the
International market .................................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is considered to be as an important business activity. The main purpose of
marketing activity is to promote business. Marketing can be defined as a procedure which
includes promoting business and selling goods. It helps an organisation in increasing sales and
profitability. Marketing is considered to be as a procedure through which products as well as
services moves from company to customers. It is the activity which is mainly concerned with
advertisement, distribution and selling of goods or services. Marketing is very much important
activity for those firm who are planning to expand business in internal market.
The report will include SOSTAC model which has been used in order to identify the
marketing strategy adopted by ASDA for expanding business in India. ASDA is basically a
British Multinational company operating business in retail sector. Study will emphasizes on
analysing the effect of changes in environmental factors on business operations of an
organisation.
TASK 1
1. SOSTAC Model
SOSTAC is basically a marketing model. The full form of SOSTAC is Smith six
fundamental facets of marketing. Different elements of SOSTAC are situation, objectives,
strategy, tactics, actions and control. SOSTAC consist of general marketing strategy. It is
required by marketing manager in Asda to use SOSTAC model, as it will assist them in making
an effective preparation for marketing campaign. The SOSTAC model mainly emphasizes on the
implementation of marketing strategy as well as communication. SOSTAC model will provide
marketing manager in taking the best decisions related to the marketing strategy as well as
tactics. It will also support manager in development of an effective promotional plan. SOSTAC
marketing plan for Tesco (Nes,2018).
Situation : Situational analysis mainly includes determining internal as well as external
environment in which form operates. It is very much crucial for marketing manager in Asda to
conduct the situational analysis, as this tactic will assist them in addressing those variables which
can have effect on the strategic options as well as plan of company.
Situational analysis is also very much helpful in identifying the current situation of the
organisation. In context of ASDA, an organisation is among the second largest supermarket
chain in retail industry of Britain. The promotional plan of an organisation is mainly based on

price. Swot analysis is considered to be as an effective tool which can be utilised for analysing
the strength, weakness, threat and opportunities of Asda.
Strength :
 In context of Asda, an organisation
offers wide range of goods and
services.
 Business entity has organised effective
marketing campaign which demonstrate
their services.
 Marketing manager in Asda utilises
social media for interacting directly
with customers.
 An organisation has developed
corporate social responsibility strategy
and has implemented the same which
has supported business entity in gaining
the customer loyalty.
 ASDA has team of highly skilled and
talented workforce to support firm in
accomplishing desired marketing and
business objectives.
 Through Acquisition strategy Asda has
strengthened its brand.
 Firm also provides Online services to
customers.
 Business entity has strong cash flow.
 An organisation has made huge capital
investment in building strong brad
Portfolio.
Weakness:
 The biggest weakness of Asda is that an
organisation has presence in only few
countries.
 Potential of an enterprise to set price
has limited their entry in other
countries.
 High employee turnover rate has
adverse effect on the business
performance of ASDA.
 An organisation is still using the
traditional technology for performing
its business operations.
 Business entity makes lees capital
investment on the research as compared
to other companies.

Opportunities:
 Asda has an opportunity to expand
business in other countries.
 Business entity have a chance to
expand business in India and china.
 In addition to this, ASDA by acquiring
small firms can foster business growth.
 As Asda has stable cash flow, an
organisation can make investment in
adjacent products segments.
Threats:
 The threat of increase in level of
competition.
 Price war with other retail organisation
can have adverse effect on the
profitability of ASDA.
 Competitors or buyer might force firm
to reduce the prices of products or
services.
Macro environmental analysis:
PESTLE analysis is considered to be as an appropriate technique which can be utilised
by marketing manager in Asda for analysing the External business situations. It is the technique
which will support marketing manager in addressing those factors which can have effect or
influence on marketing plan. The variables which can have effect on the marketing plan of Asda
are :
Political factors: Such variables includes political condition in the nation , regulation enforced
by political parties etc. Changes in the regulation by the political parties in India can have
significant influence on the marketing plan of ASDA. Amendments in the trading Policy,
consumer as well as corporate law can have great influence on marketing plan of Asda. Unstable
political condition in the nation might create hurdles in the promotional activities of an
organisation. It is required by the Asda to comply with all the regulation imposed by the
political parties, as this strategy will provide business entity an ease in promoting the business
(Javalgi and La Toya, 2018. ).
Economic factors: It includes increase or decrease in interest rate as well as exchange rate,
taxes, inflation in prices of the products or services etc. All these economic variables have direct
influence on consumer behaviour as well as market. In context of India, Inflation is considered to
be as primary marketing aspects which has direct effect on the purchasing power of consumer
and also on the sales of firm. In context of ASDA, Changes in the economic factors also have

significant influence on pricing strategy of firm. It is required by Asda to keep the prices of the
product low while entering into the Indian market. Low cost pricing strategy is considered to be
as an effective strategy, which can provide organisation an ease in entering into Indian market. It
will also support business entity in attracting the customers in Indian market. The low cost
marketing strategy has supported Asda in establishing the image of most affordable supermarket
in UK.
Social factors: The social factors includes lifestyle of people as well as their buying behaviour,
culture, trends etc. all these elements have great influence on marketing plan and tactics of
companies. In context of Asda, The social factors in Indian business environment which can
effect the marketing strategy of an enterprise are : social standards, attitude of community,
interest as well as hobbies of people etc. It is required by marketing manager in Asda to develop
Illustration 1: Economic factors effecting marketing
Source :(Factors That Affect Marketing and Advertising, 2019)

promotional plan considering the variables which could affect the buying behaviour of
consumers.
Technological factors:It includes advancement in the technology. Changes in the technological
factors have positive effect on the marketing plan of firms. In context of Asda, technological
advance has provided firm with an opportunity to improve its promotional activities. It has also
supported business entity in promoting their brand at global level. In addition to this, there are
few technologies such as social media, artificial intelligence is disrupting the business landscape.
In context of Asda, business entity can use social media for communicating with people in Indian
market, as continuous interaction with consumers is very much essential in order to retain them
for long time.
Legal factors: these variables includes amendments in the norms as well as government policies
as well as regulations. It is the regulations which defines the content which firm can include for
influencing people to buy goods or services (Amankwah-Amoah, Boso and Debrah, 2018.). In
context of Asda, need to develop the understanding about laws in India and firm is required to
comply with the same. If in case Asda fails to follow the norms, then in such situation an
enterprise has to face legal obligations.
Environmental factors: the global marketing environment is changing at very rapid rate which
has significant influence on the marketing plans of organisation. In context of Asda, due to bad
weather conditions firm might have to postponed the implementation of marketing plan. In
addition to this, increase in intensity of competition in Indian markers can also influence the
marketing strategy of organisation. It is required by marketing manager in Asda to conduct
through market analysis in India before developing a promotional plan.
Objective: In context of Asda, marketing objectives of an organisation is to gain the recognition
in Indian market within three months. In addition to this, business entity intends to get the
positive feedback from local people in Indian market within four months.
Strategy: Considering the marketing objective of Asda in context of Indian market, marketing
manager in Asda need to concentrate on develop strong relationship with community. Business
entity need to develop their concentration on providing the high value proposition as well as
quality products to customers, as it will support an enterprise in gaining the customer loyalty. It
will also assist an organisation in building strong relationship with customers. In addition to this,

Asda can organise social media campaign as this strategy will help an enterprise in generating
the brand awareness in Indian market. Social media marketing strategy will provide firm an ease
in reaching to large number of customers. It will also support an organisation in positively
influencing people to buy specific goods or services.
Tactics: The tactics which can be adopted by Asda for developing the strong relationship with
community is that an organisation can make donations. In addition to this, ASDA can participate
in social welfare programs. Business entity can also sponsor events specially organised for social
welfare. In context of social media strategy, marketing manager in Asda need to make regular
updation on company's official Website (Vaillant and Lafuente, 2018). Marketing manager in
Asda is required to include all important elements of marketing mix in its promotional plan. The
Marketing mix which an enterprise can apply to the promotional plan made for Indian market
are:
Product : In context of Asda, business entity needs to develop the products or services according
to the needs of customers. Firm can conduct market research, as it will assist them in developing
the understanding about the needs as well as demands of customers. An organisation is required
to develop unique product design as well as add new feature in product which will help firm in
gaining the competitive advantage.
Price: Asda can enter into Indian market by keeping the prices of products or services low.
Place : Asda is required to establish its stores in centre location, as this tactic will assist business
entity in providing customer an ease in accessing the goods or services.
Action : In context of Community building strategy, Asda can sponsor food products to poor
people in India on canteen day. Business entity can donate funds to educational institutions for
renovation or for expansion. In context of social media strategy, marketing manager in Asda is
required to make the updation on official site of firm. It is required by marketing manager in an
enterprise to make sure the all important information related to the business are present on
Website (Odiko, Ogutu and Omar, 2018).
Control: In context of Asda, an organisation can conduct the market survey, as this tactic will
support an organisation in analysing the response of people. By conducting the market survey,
business entity can obtain feedback from customers, as this tactic will support management in

identifying the need for improvement. Market survey will support enterprise in analysing the
perception of customers about the products or services offered by Firm.
TASK 2
Measuring the effectiveness of Asda SOSTAC strategy currently utilised in UK market
In context of Asda, business entity has adopted organise the Online marketing campaign
in UK which has supported business entity in generating the brand awareness. The marketing
plan of Tesco mainly concentrates on the pricing. The Low cots pricing strategy has been
adopted by ASDA which has assisted an enterprise in attracting more number of customers.
Business entity blends the promotional strategies for accomplishing its marketing objectives.
Direct mail campaign is the strategy which has helped an organisation in informing people about
the products or services offered by an enterprise. It has provided firm an ease in influencing
people to buy goods or services (Kent and et.al., 2018). It is the email Christmas campaign
strategy which ha supported an organisation in accomplishing desire marketing objective. In
addition to this, the two important marketing strategies that is price roll back as well as Everyday
low pricing strategy has provided firm an ease in attracting customers. But the discounting
pricing strategy adopted by Asda has lead to the decline in profit margin of company. It has been
analysed that E-mail market campaigning strategy adopted by Asda has supported business
entity in boosting sales. Business entity has participated in the trade shows which has provided
an organisation an ease in reaching to the target audience. It has also helped business entity in
analysing the latest trends in retail industry.
In addition to this, Cross channel marketing strategy has supported business entity in
accomplishing desired marketing objective. Asda perform both online and offline marketing.
Offline marketing or Direct marketing strategy ha supported an organisation in developing
strong relationship with customers. Online marketing strategy has helped an organisation in
promotion the brad at large scale. It has also aided business entity in reducing the cost associated
with promotion of goods or services (Beck, Chapman and Palmatier, 2015).
In addition to this, Asda has also sponsors the social welfare program which has helped
firm in developing the strong relationship with community. Use of social media for purpose of
communication has proven to be effective in context of Asda, as it has helped an organisation in
retaining its clients. Social media strategy has supported an enterprise in strengthening its
relationship with clients. Asda is only the supermarket which sends regular E-mail to customer

before pre purchase, it is the strategy which has assisted business entity in gaining the
competitive advantage in retail market.
Determining whether the marketing strategy utilised by ASDA can be implemented in the
International market
The main marketing objective of Asda is to increase sales, profitability and market share
company can use the E-mail marketing strategy, same tactics which has been used by an
organisation for promoting goods or services in UK market. The main benefit which can be
gained by Asda in context of use of E-mail marketing strategy is that business entity can reach
global audience in effective as well as efficient manner. In addition to this, by implementing the
E-mail marketing strategy, a firm can deliver their messages to target customer group. Business
entity can also take feedback or suggestions from customer and engage clients in business. It
will also support firm in increasing sales and will assist an organisation in generating higher
revenue. E-mail market strategy will support Asda in gaining the loyalty of Customers in Indian
market as well.
In addition to this, Asda can also apply the cross channel marketing strategy for
promoting goods or services in Indian market. Offline marketing strategy is considered to be as
effective as it will support an organisation in developing the strong emotional bond with the
consumers in Indian market (Armstrong and et. al., 2015.). Offline marketing strategy, will also
support business entity in developing the understanding about Indian market and behaviour of
customers.
Firm can also conduct online market campaign, as such tactics can be easily implemented for
promoting goods or services in Indian market as well. Asda only required social media platform
for implementing the Online marketing strategy. In addition to this, ASDA can also participate
in the trade shows in India as well, as it is the strategy which will help business entity in
developing understanding about the trends in Indian retail industry. By participating in Indian
trade shows Asda can easily promote business and meet the target audience. During the trade
shows marketing manager in Asda can communicate with customer and can easily analyse their
needs as well as demands (Juska, 2017).
In context of Asda, an organization can also sponsor social welfare programs in India
also, as it will support an enterprise in getting the brand recognition in Indian market.

Sponsorship as marketing strategy will support an enterprise in building the strong relationship
with community. But in addition to this, Asda can launch loyalty schemes, as this strategy will
assist firm in developing the strong relationship with customers. In addition to this, everyday low
price is considered to be as an effective strategy which can be adopted by Asda, as it will support
business entity in attracting more number of customers. In context of Indian market, people are
more price conscious rather than quality, therefore, low cost pricing strategy will support Asda in
accomplishing its desired marketing objectives (Aslam, 2018). In context of the Indian market,
ASDA can also imperilment word of mouth marketing strategy, as it will assist an enterprise in
gaining the customer loyalty. In addition to this, by organisation the marketing activity during
the festivals time, an enterprise can conduct the marketing campaign as it will support business
entity in influencing people to buy goods or services.
CONCLUSION
It has been concluded that an effective marketing planning and strategy is very much
important in order to accomplish desired objectives. The other fact which has been found is the
SOSTAC model is very much helpful in development of an effective promotional plan. It has
also been concluded that there different factors such economic, social, technological which can
have great effect on the marketing plan of organisation. The other fact which has been
discovered from the study is that marketing strategy implemented by organisation has significant
influence on customer behaviour.
The marketing manager in an organisation is provided with suggestion to conduct
situation or market analysis, as it will assist them in development of an effective marketing plan.
The other recommendation is that firm should include all essential elements of marketing mix in
promotional plan, as this strategy will support an enterprise in accomplishing desired objectives.

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