Comprehensive Analysis of ASDA's Marketing Environment & Strategy

This report provides a comprehensive analysis of ASDA's marketing fundamentals and business environment. It utilizes various analytical tools such as VIRO, SWOT, Porter's Value Chain, PESTLE, and Porter's Five Forces to assess both internal and external factors influencing ASDA's marketing strategies. The report examines ASDA's resources, competitive advantages, market positioning, and the impact of the Covid-19 pandemic on its operations. It also discusses the political, economic, social, technological, legal, and environmental factors affecting ASDA's marketing efficiency, along with the opportunities and threats the company faces in a competitive market. The analysis aims to provide a thorough understanding of ASDA's strategic approach and its ability to adapt to changing market conditions.

Marketing Fundamentals

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
VIRO analysis..............................................................................................................................3
SWOT analysis............................................................................................................................4
Porter's value chain analysis........................................................................................................5
PESTLE analysis.........................................................................................................................7
Porter's five force.......................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing fundamentals are all the core activities involved in the marketing which are
related to product, price, promotion and place. It is considered to be the change which is the
concept of everything that revolves around the different principles which changes the models for
expanding with the basic principles. For this project the chosen organization is ASDA which is
UK supermarket chain which deals mostly with different types of home related products and
groceries. This project will help in understanding the processes and the different stages of
marketing. In this project the understanding of the different roles of the marketing environment
and other situational analysis model is identified. This project is also determines the
segmentation targeting positioning of the marketing mix strategies of the company. In this
project the impact of Covid-19 pandemic on the internal and external environment of the
organization is analysed. This project will also discuss the different impacts which this pandemic
has had on the organization.
MAIN BODY
VIRO analysis
VIRO analysis in the marketing is considered to explain the four main internal attributes
which provides the organization with competitive advantages. In this model the talk about the
organizations resources and capabilities are discussed as follows,
Valuable :
The resources which some companies have are considered to be strategical exploited with
the different opportunities and help the company to defend it with different threats. It helps the
company in holding some value in the services and products it provides to its customers.
Resources which this company have are considered to be very helpful for the company in
providing customer satisfaction which increases value of the customers (Ramdhani, Baga and
Nurhayati, 2021). Due to the Pandemic these resources of the business has been effected as the
company had to fire many of its employees so that it can decrease the amount of loss it was
suffering. However, this company continued to review the values of its resources which
involved, supermarkets, stock, employees, machines and other assets.
Imitate :

The cost that other companies would have to incur for imitating the marketing methods
and other operation of the organization is very high. This shows the rarity of the marketing
practices of this company. This is the way in which the company is able to achieve competitive
advantage as company. It is the limitation of the imitation which is considered to be very helpful
in the management of the condition, casual ambiguity and social complexity.
Rare :
The different resources of marketing which the company uses is considered to be actually
very rare comparatively. These rare valuables provide the company with a competitive
advantage. There are few companies which have the similar resources which provide competitive
parity to the rare resources (Kotler and et.al., 2012). The organization needs to focus on not
losing the valuable resources as they are the ones which provide them competitive advantage.
Organized ;
ASDA and its management is known for being very strong as they have utilized their
resources with maximum value and organize the management systems, process, policies and
strategies which is fully utilizable for the resources that provides value rare, cost for imitation
(Sakinah and Wibowo, 2021). In the Covid-19 pandemic this organization has been able to
successfully develop a strong unity which allows the business to grow strategically the better
performance in the management of the organization.
SWOT analysis
This frame work is the one which provides the analysation of the internal factors which
impacts the performance of the organization. It also talks about how these internal factors impact
the marketing of the organization.
Strength :
ASDA is that premium retail chain which employees more than 50000 people all over the
world. These people are important for the talent management of the organization. It has different
range of apparels which also include menswear, children wear, footwear, accessories and home
products (Singh, 2017). This diversity of the products help the company in its marketing. The
quality of the products of this company is said to no advertising cost which is helpful for the
business to have positive word of mouth marketing.
Weakness :

It is said that through intense competition the premium fashion segment is considered to
be very helpful for being limited in the market share growth. The outsourcing of the
manufacturing of the apparels is helpful for leading the inconsistencies which is considered to be
the essential for the quality of the inconsistencies. It is said that through the application of
inconsistencies is helpful for the business to be useful for the marketing in better decision-
making. Due to the increase in the Covid-19 this organization suffered a lot like all the other
companies (Jain, 2020). The impacts of the Covid-19 pandemic is seen as it had to fire off the
many of its employees. The biggest weakness of this organization is that it had to suffer from
huge competition from the different other competitors.
Opportunities ;
This organization is yet to expand its business in the different countries which could be
the reason due to which the organization is able to gain interesting trends for the company.
Different opportunities of the marketing in ASDA are also to have strategic partnership which
helps the company for expanding the business. It can be said that with the help of diversification
in the products range tapping through different online channels can also be helpful for the
company to develop more revenue (Housden, 2007). The market is recovering from the downfall
of the economy as it has the potential of developing its business and give it a new fresh start with
the application of online business practices.
Threats :
As this organization has a limited global presence this shows the different types of
weakness of this organization. The threat of another pandemic or increase in Covid-19 cases is
always a threat to this organization as it decreases the productivity levels (Phan, 2021). The
competitors are able to increase its marketing practices through the increase the technology. In
comparison to the other competitors this business does not have the diversity which could
provide it marketing benefit.
Porter's value chain analysis
The model of Porter's value chain analysis is business management concept which is used
for competitive advantage with the internal analysis of the organization. This explains the
collection of activities which are performed by the company for creation of value towards its
customers. It has two generic categories of activities,
PRIMARY ACTIVITIES

Inbound Logistics :
Activities of ASDA which are associated with the receiving, storing and disseminating
the inputs of the products. These practices of the organization include the warehousing of
physical products and storage of the customer's information through digital methods. It can be
said that this is helpful for inbound activities of the business (Understanding How Value Is
Created Within Organizations, 2021).
Operations :
Operations of ASDA is that of a retailer in which it purchases products from
manufacturers and then sells it in its stores. This organization has many manufacturers which are
known to be the most effective in providing the company with good quality of products. The
manufacturers are from the developing countries thus, this organization faced major production
problems during the pandemic.
Outbound Logistics :
This company has recently started its business on online platforms due to which it's had
to significantly improve its logistics (Marques, 2019). This was helpful for the company to
continue its operations even during the pandemic. With the help of a operation such as
collections, storage, and distribution system the business has been able to gain efficiency in its
outbound logistics.
Marketing and Sales :
This is the process which is used by the organization for influencing the customers to buy
the products from ASDA and not other competitors. For this strategy the company uses more of
no voice marketing strategy as it believes that the product quality and prices is efficient enough
to provide the business with competitive advantage.
Services :
These are the activities which are related with the maintenance of the value of product
and services which helps the company to develop its services. This can be said as the services
which the company provide to its customers after the sales has been made. It is also the way in
which the organization focuses on the development of the marketing.
SUPPORT ACTIVITIES
Procurement :

The resources of this organization are the stock, employees and the premises. All these
are assets which the business get through some sort of investments. The manufacturers of this
company are mostly fixed as it is retailer and does not make its own products. This organization
has a Human Resource management which manages the requirement of talent and this company
has stores in different parts of the world which are considered to be most useful resources.
Human Resource Management :
The role of this department is very important as it manages all the human relations in the
company. It can be said that the application of the ways in which the company recruits, hires,
trains, motivates and rewards its individual is the responsibility of human resource management
to handle (Jäckering, Fischer and Kehlenbeck, 2019). The creation of good value is done by the
members which are hired by this department.
Technological Development :
ASDA since the rise of the global pandemic has given great efforts towards the ways in
which it can ensure the online services in which it believes. The minimization of the different
information are considered to be a way in which the company has been able to develop the
technology and its cost through staying current with the creation of value and product quality.
Infrastructure :
ASDA has many stores in UK and also other countries, it has focused on increasing its
infrastructure more though building larger stores which would attract the attention of the
customers. This company launched its super store which was larger than all of its other stores
that was the plan of this organization to be effective in the marketing.
PESTLE analysis
The analysation of the marketing efficiency of ASDA can be done only by understanding
the effectiveness of the external factors that effect the practices of the company. Strategy of this
company has been very effective is used for being successful in different countries. This
organization faced very tough competition despite which it has managed to cope up with the core
competencies of the external environment.
Political Factors :
The political risk which the company has needs to be the result of the constant rules and
regulations which the government provinces. It can be said as that friction is caused in the legal
frameworks which is applied to operation of the company (Saudi, 2021). It can be said that the

agreement of the enforcement of the law is helpful for the creation of confidential understanding
of the ways in which the business would be able to achieve inclusion of the failure which allows
the currency to be converted in the risks of commercial agreements. The laws regarding the
pandemic can be said as the way in which the government policies are impacting the business
practices of ASDA (Callingham, 2004). This has decreased the number of customers visiting the
stores due to which the sales has dropped for the company.
Economical Factors :
Since the rise of the Covid-19 pandemic and also Brexit rules being implemented the UK
economy has been ongoing devastating recession. This has been the reason due to which all the
different marketing in this country has been effected negatively. For this organization it is very
important to ensure that the recognized increase or decrease in the interest rates which directly
influences the prices of the products. In order to survive in such a market downfall the company
had to decrease its additional expenses which are mostly related to marketing (Saudi, 2021). The
GDP of the organization is considered to be had strong influence in the monetary fund which
holds the effects of the recession which has low exchange rate which is made up of the import
and export operations.
Social Factors :
The growth in the global population has been increase of the market which has impact the
business of the organization positively. The mentality of the customers after the pandemic have
changed as they are not more concerned about purchasing products for their necessities. Growth
of company is also influenced by the company's decision which is related to the management of
the organizational practices. Due to the increase in the area of analysis the taste, preferences and
area analysation of the business has been effected which is considered to be the way through
which they have been able to implement strong organizational operations. Development of the
online business by this company related to the social changes which are a remarkable way of
developing the business against the competitors during the pandemic.
Technological analysis :
Analysation of the organization technological advantages of the organization is that it is
able to develop innovation. This is considered to be the helpful idea of the business which
essential for the business performance (Taleizadeh, Soleymanfar and Choi, 2017). There are
different technological innovation which might provide the business development with

enhancement in the operations. Current issues which are present with the technological
uncertainties helps the business with economical and social changes. There are other reasons for
which the technological improvements are issues for the company. These reasons are heavily
involved with the technological ways in which the company want to bring success in the
organization and focus on Covid-19 regulation for being met. It is important for the business as
the company is able to use them for daily work such as the fraud, shoplifting, misconducts and
others.
Legal Factors :
The efforts of the organization would go in vain if the company does not follow the rules
and regulations which impact the business terms, trading policies and taxation. The insurance
policies, wages and salaries need to managed properly as it will become issues for the company
in the long run. Thus, it can be said that the strength of the organization needs to be essential for
the business which allows the company in the maximization of the strengths for the production
of the definitely against the law. The issue of the customers are considered to be the commitment
of the production which helps the business proper regulations to be followed as an employee and
employer. Regulation of the laws is considered to be very essential for the employer-employee
relationship which helps the business to keep its operations going without being interrupted.
Specially after the Covid-19 pandemic the organization needs to ensure that it is following the
rules and guidelines which are planned for the business.
Environmental Factors :
The CSR activities of the organization is effected due to the practices of the organization
with the environment (Wood and et.al., 2021). These practices are said to impact the brand name
of the organization. It can be said that with the better analysation of the environmental issue
caused by company is able to develop ways in which it can limit the exploitation of the natural
resources. This organization has focused a lot on management of the organizational operations
which has created a great dilemma in the business for different competitors. Good practices
related to CSR can allow the business in the creation of the essential growth of business
organization. With plantation of trees and plants the business is able to grow its care towards the
environmental benefits this will result in the growth of the organization marketing operations.

Porter's five force
This is model which helps an organization in the analysation of the competition faced by
the organization. This is considered to be the very influential in the analysation of the company's
performance which is helpful for the determination of the business practices.
Threat of New Substitutes :
For this organization the substitutes are generally the products from the same industry. As
there are many retailer so that company has to face a huge threat of substitutes. Clothes are the
primary product of this organization as they are known to be one of the most commonly known
product which are substituted in different forms (Malhotra and Aggarwal, 2019). The elasticity
of the demand of these products is always high as the customers have a lot of options to choose
from. This organization has tried to keep the level of substitution at the minimum as it with the
help of the quality of the product and valuable brand the company it is very hard for any
organization to replace it. They try to provide different types of discounts to their customers
which help the customers in facing very high switching cost. Prices of the clothes of ASDA is
comparatively low which is the reason it is helped with the emphasis of the value. In order to
make the product more and more impossible for the competitors to imitate them. This
organization has used technology for its advantage for facilitating online shopping or better
performance of the company.
Competition intensity :
The UK retail industry is very competitive in comparison to any other industry in this
economy. Highly competitive environment of this organization is considered to be the biggest
issue faced by the company. It can be said that the intensity of the competition is considered to
be facing establishment for their business in the country (Byun and et.al., 2020). The intensity of
the competition is considered to be the major challenge for the company over company. Some
companies which give this organization immense competition are the Gap, Top Man, Zara and
Oasis. These are competitors which are known for the quality of their product. It can be said that
the increase in the competition of ASDA has let to a significant loss of the client. Apart from this
the company also faces challenges which are related to the challenges which are faced by the
company are the barriers which impacts the company's performance. Challenges faced by the
company are considered to be the very intense.
Threat of new entrants :

Similar to the threat of new substitute the threat of new entrant is very high as the
business model of this organization is somewhat very popular. This shows the efficiency of the
organization in the management of the operations. However, the requirement of establish of
retail business requires large amount of capital which can be said as a very difficult issue for the
application business practices (Mohapatra and et.al., 2018). ASDA has been able to develop its
brand name and image with the help of the practices that involve quality of products, CSR
practices and the quality of services which the business has provided to its customers. It can be
said that the business can increase the production of its organization with the application of the
growth opportunities in the business. This organization needs to make sure that it is able to keep
its product price lower such that the other companies are not able to improve the productivity of
the business.
Bargaining power of buyer :
The customers of this industry are known to have very high power of bargaining due to
the number of total competitors which provide the customers with different options which they
can choose from. It can be said that the customers are very sensitive for the prices of the
products. The customers can change their choice of brand if there is little difference in the
switching cost. Thus, it is important for the company to make sure that the business needs to
review its prices upwards and it needs to contribute to the productivity of the organization which
can be considered as the reason for the high cost of production. The increase of the prices are
very effective for the company and as a result of this the business needs to provide great sense of
fashion for the company to be global accepted. There are ways in which the company can help
the business with low cost of production so that the business can bring effectiveness in their
operations.
Bargaining power of suppliers :
The suppliers of this organization which are manufacturers that are found in the
developing countries do not have much bargaining power as there are many other manufacturers
for the company to take their products from. Due to the increase in the Covid-19 pandemic the
businesses of the suppliers have decreased a lot as they are not able to survive the economic
recession which was caused by this pandemic. The low suppliers power which are currently
putting more pressure on the suppliers as their prices of raw materials have increase a lot due to
the economic recession which has come in the UK economy.

CONCLUSION
With the help of this project it can be said that Covid-19 can be said as the main reason
behind the downfall of the ASDA marketing in the competitive environment through both the
internal and external analysis. This project has utilized different types of models for the
analysation of the internal and external factors that impact their marketing performances. In this
project it is very essential for the business to ensure that the business is able to improve the
organizational performance. This project has been able to analyse the organizational performance
in Covid-19 pandemic through internal and external analysis factors.

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