ASDA's Marketing Plan: Organic Product Launch - An Essential Analysis

This report provides a comprehensive analysis of ASDA's marketing plan for introducing a new organic product range. It covers key aspects such as the executive summary, business objectives, SWOT and PESTLE analyses, competitive analysis, and the marketing mix (4Ps). The report highlights ASDA's competitive advantage through a low-pricing strategy, its focus on untapped customer segments, and its commitment to sustainable practices. It also details the STP (Segmentation, Targeting, and Positioning) approaches, budget allocation, and monitoring control mechanisms implemented by ASDA to ensure the successful launch and growth of its organic product line, while addressing potential threats from local competitors and ensuring compliance with relevant legal and environmental factors.

Marketing Essentials

Table of Content
INTRODUCTION...........................................................................................................................1
MARKETING PLAN......................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
ASDA is a leading retail company of Britain which has unique and varied range of
services such as super-centres, superstores, supermarkets and living stores across the UK.
Company dedicatedly serve its customers through these network stores and online services.
Marketing plan is introducing new product comprised all factors of marketing essentials, which
includes advertising and various sales techniques from designing, producing, selling and
delivering of the product and service. The report will discuses the concept of marketing mix to
achieve business objective by comparing the marketing plan of two different organizations.
Examination will be portraying business plan of marketing essential that ASDA using for
introducing new organic product.
MARKETING PLAN
EXECUTIVE SUMMARY
ASDA is adding new organic product range in its online and physical outlets to increase
the overall sale in the market. Company is taking competitive advantage to attract new
customers and satisfying the demand of existing potential customers. Company's management is
contemplating more sustainability methods of green technology in processing of new organic
products. Market segmentation of primary target groups are based on untapped customers, which
company focusing upon capturing low-high income groups (Ing, Osman, and Tze-Yin, 2020).
As retail industry have tough competition with strong competitors company will focus on
proving best to its customer without compromising in the quality of product and service.
Sustainable method of producing goods and service through minimizing negative impact
in environment will help company to attract new investors and customers in the business which
will lead towards economical-sound processes. These operations will strategical support ASDA
in introducing new organic product as per marketing strategies which will lead the company
toward success of short and long-term goals.
BUSINESS OBJECTIVE
ASDA's following current marketing trend of healthy lifestyle by introducing new
organic product to its potential customer's demand. Company's objective of adding new range of
organic product is to capture the untapped groups considering every opportunity expanding its
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business through various market segmentations. Brand's objective is to set the business plan for
introducing new organic product which lead toward growth and success of the business by
satisfying customer needs (Kalogiannidis and Mavratzas, 2020). New business plan is based
upon specific, measurable and relevant marketing strategies which will reduce the cost of
product and time with sustainable packagings tactics. Company will attract more customers with
the help of various marketing activities such as social networks, paid media advertising and
internet marketing to reach the business objective.
SWOT ANALYSIS Strengths- ASDA has its brand value as the biggest advantage in the competitive market
which will lead success of introducing new organic retail product. As ASDA is the top
leading brand of UK with good market share ratio in the grocery retail company will
enjoy its economic scale and capture untapped market. Weakness- Company need to work on its online services with good presence in the online
market by expansion of its supply. ASDA can compete the market by adding variety of
products in the business and increase supply. With the help of satisfying its customers
needs by expand online market, company will be able to achieve its target goals and can
introduce new organic product range. Opportunity- Company have the opportunity to expand online market by offering new
range of organic in the market. Currently, people switch to healthy lifestyle due to which
customers preferring healthy organic products and services (Konishi and Nishiyama,
2020). ASDA grabbing the opportunity and offering reasonable price by managing cost
of packaging of the product which will be sustainable.
 Threat- ASDA facing threat in the market due to local grocery stores are insincerely
allocating in every area, which impacting the sales of the ASDAs' product in the market.
ASDA also have tough competitors in the market such as TESCO and Sainsbury which
are strategically expanding with efficient growth.
PESTLE ANALYSIS Political factor- ASDA's retail and other business will be affected by the Political factor
as it influenced by the government of the country. ASDA requires stable government in
the market where company offering its services and products. Change in government
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policies and regulations may impact on company's smooth functioning as political
disruptions leads to losses in business deals such as supply chain and sales. Economic factor- Country's strong economy will help ASDA to grow rapidly and expand
businesses with new investment. ASDA introducing new range of organic product which
will generate new job opportunities which will raise interest of capital investors (Mwangi
and Mwangangi, 2018). Company will attract new investors in share market which will
help business to raise funds. Social factor- Company will provide development of the society by introducing new rage
of organic product and services as people are moving towards healthy lifestyle. This is
the reason customers also changed their preferences of using more healthy organic
product, will be advantage for ASDA to grow fast. Technological factor- ASDA implementing the latest technology in its infrastructure
which will help in producing new range product effectively. Advance technology will
help company, which will save its resources such as human capital. Legal factor- Company will take initiatives by taking regulatory measures while
introducing new organic product range to support economic growth, by ensuring paying
off government taxes. ASDA will make sure all law determinates to protect its customers
such as: The Customer Protection Act, 1986 and Customer Rights Act, 2015 (Riefa and
Willet, 2018).
 Environmental factor- ASDA is taking more initiatives towards installing eco-friendly
plants for the business and also offering its services with environmental-friendly methods
such sustainable way of producing goods and services including supply chain. Company
will use eco-friendly method for processing its product and services for its customer by
using sustainable procedures. ASDA will supply its product and services through bio-
fuel means of transportations ways. Company will use more eco-friendly ways to its
business plan of introducing organic retail product.
COMPETITIVE ANALYSIS
Biggest competitive advantage of ASDA is that, because of its reputation and innovation
the company is able to create and maintain distinctive edge from the competition. ASDA
providing everyday low price to its customers even for new organic product range and wining
the battle from fierce discounters.
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With the help of low-pricing strategy company is capturing various customer groups in
the competitive market which are untapped, as organic products are costly which are offered by
other competitors. So ASDA found the opportunities to provide these products at reasonable
prices by managing their cost (Nadezda, and Josef, 2021). Company will reduce the cost through
bring the change into packagings of the product with sustainable option.
MARKETING MIX Product- ASDA is making the whole new organic product range in retail, for capturing
new potential market. Company is aiming toward increasing market supply of its product
and servicing by introducing sustainable ways of production. This production for organic
product with sustainability will help ASDA to attract and reach mass population. Price- ASDA will choose low price strategy for it organic product range as company
have competitive advantage of its goodwill which will support the innovation of new
range of organic product. Company will win over the competition in the market with
economy pricing strategy by offering low price to its customer to capture various
segments groups. Place- Supply chain of ASDA has taken a new dimension with diversification of its
product and service through online retailing (Permadi and et.al., 2020). ASDA also
enhancing the product distribution with adding range of organic new product in its
physical outlets.
 Promotion- Company will use online advertising to promote its new organic product in
the market which will help company to increase its sale with rapid growth. With the help
of social media marketing company will reach to the untapped customer segments such
as Facebook, Twitter and Instagram.
STP APPROACHES
 Segmenting: ASDA demographically selecting age group from 15-55 and
behaviour segmentation with heavy purchaser of healthy products for its organic
product range. ASDA will make strategy according to the segment of organic
product customers based on low to medium income group with low price
offerings.
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 Targeting: Company' s targeting the market with cheap and reasonably pricing
which will help ASDA to attract more customers and mass selling. These large
scale sales volume of organic product will result in high profit margins.
 Positioning: ASDA focus on its target market by introducing range of the
cheapest organic product with no compromise in the quality. Company will be
availing healthy organic products with the best price in the market.
BUDGET
ASDA's budget plan is based on current and future trends with consideration of the
growth stage of new organic product range in the market. Company positioning its marketing
investment according to sustainable plan of processing organic products, spending plan includes
income and expenses. ASDA will raise its funds by attracting investors and co-sponsors
supporting the organic products with capital investments in business plan.
Particulars Amount
Machinery and technology 15,000 £
Marketing equipment’s 10,000 £
Human resources expertise 10,000 £
Raw material outsourcing 5,000 £
TOTAL 40,000£
MONITORING CONTROL
ASDA will measure the performance by tracking all the activities conducting entire
process, from producing the product to supply and customer's service (Phan, 2021). This method
will help company to take correct actions and meet the final goal of introducing new organic
range in the market successfully.
CONCLUSION
From the above study it has been concluded that marketing essentials are the important
part of business plan which includes various factors such as marketing plan consist of executive
summary, business objective of introduce new organic product. Leading ASDA taking the
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competitive advantage of low-pricing strategy. Company grabbing the opportunity to satisfy its
customer sand adding new potential customers with quality products and reasonable price at
various platforms, as company found fierce compositors at local market. In additional to that
various factors are summarized such as government stability, advance technology and legislation
with the help of pestle analysis which many impact on the business. Further the report has been
summarized competitive analysis, budget planning, STP approach and 4ps of marketing mix.
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REFERENCES
Books and Journals
Ing, P., Osman, Z. and Tze-Yin, L., 2020. Marketing Mix and STP Strategies: An Exploratory
Study into Grocery Retailers in Malaysia. Asian Journal of Entrepreneurship, 1(4).
pp.129-143.
Kalogiannidis, S. and Mavratzas, S., 2020. Impact of marketing mix strategies effective product
development issues in MNCs/Retail. International Journal of Business Marketing and
Management (IJBMM). 5(12). pp.118-125.
Konishi, Y. and Nishiyama, Y., 2020. Efficiency of the retail industry and inelastic
supply. Advances in Decision Sciences. 24(2). pp.1-33.
Mwangi, G. K. and Mwangangi, P., 2018. INFLUENCE OF PROCUREMENT
MANAGEMENT ON PERFORMANCE OF RETAIL CHAIN STORES IN NAIROBI
CITY COUNTY, KENYA. Journal of International Business, Innovation and Strategic
Management. 2(3). pp.231-248.
Nadezda, F. and Josef, A., 2021. Economic perspectives of the Blockchain technology:
Application of a SWOT analysis. Terra Economicus. 19(1). pp.78-90.
Permadi, A. and et.al., 2020. A COMPETITIVE ADVANTAGE STUDY FOR HOME
APPLIANCES ELECTRONICS RETAIL INDUSTRY IN GREATER JAKARTA–
INDONESIA. Journal of Critical Reviews. 7(16). pp.2988-3006.
Phan, S., 2021. The effect of PESTLE factors on development of e-commerce. International
Journal of Data and Network Science. 5(1). pp.37-42.
Riefa, C. and Willett, C., 2018. Enforcement and Effectiveness of Consumer Law in the UK.
In Enforcement and Effectiveness of Consumer Law (pp. 673-695). Springer, Cham.
Online
PESTLE ANALYSIS. 2021. [Online]. Available through: <https://pestleanalysis.com/pestel-
analysis-of-retail-industry/>.
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