ASDA: Detailed Report on Creating Own Brand Product Range for Retail

This report provides a comprehensive analysis of ASDA's approach to creating and launching its own brand product range. It begins with an introduction highlighting the importance of branding and market considerations, then offers a company overview, detailing ASDA's market position as a major UK retailer owned by Walmart, its target customers, and its core competencies. The report delves into strategic options, including marketing mix elements like product, price, place, and promotion, and the new product development process. A management report section examines primary sources, buying, supply chain management, and merchandising issues. The report concludes with recommendations and a conclusion, offering insights into ASDA's strategy for product development and market success. The report is intended to assist project managers in effectively meeting goals and designing activities based on business needs.

Creating A Range Of Own Brand
Product
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TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
COMPANY OVERVIEW.....................................................................................................................3
Market position................................................................................................................................3
Targeting..........................................................................................................................................4
Strategic options..............................................................................................................................5
MANAGEMENT REPORT.................................................................................................................6
Primary sources................................................................................................................................6
Buying..............................................................................................................................................7
Supply chain....................................................................................................................................8
Issues ...............................................................................................................................................8
RECOMMENDATIONS......................................................................................................................9
CONCLUSION..................................................................................................................................10
REFERENCES...................................................................................................................................11
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INTRODUCTION
Creating and launching a new product range is one of significant factors for every business
organisation as it impacts the overall market share and brand image of firm. In this aspect, branding
plays a key role in order to boost the effectiveness of decision making process. Product launch and
marketing decisions must be made as per the consideration of brand image (Kotler, 2004). In this
respect, it is also necessary for the management of retail firm to concern about name, sign, symbol and
design in order to have better creation and launch of new product.
In order to have better understanding about the concern topic, learning will focus on the work
culture of ASDA. It will provide detailed information about the current market position of company in
this competitive market, organisational core competencies, target customers, etc. It will also have key
spot light on diverse concepts that can assist in creating a range of own brand products. Classification
of concepts can be as primary sourcing, buying, supply chain, merchandising and market issues. It will
assist project manager to meet goals in an effective manner and design activities as per the business
needs.
COMPANY OVERVIEW
In order to have better creation and launch of new product, it is necessary for project manager
to understand the nature of organisation. In this support, ASDA is a supermarket retail chain which is
owned by American retail corporate named Walmart. It is considered as one of key leaders in the retail
market. Organisation key motive is to offer best products in terms of quality and value at very low
prices as compared to other competitors in the market (Babić, 2011). Company provides an excellent
mix of diverse retail products such as fresh food, grocery, clothing, leisure and entertainment products.
In support of this, it can be said that ASDA is currently handing 525 retail stores in UK which provide
effective approach to the target customers and lead business to impressive success. Company retail
stores are well located in the middle of the UK market and it has great positive impact on the all
aspects of business as well as local community.
Other than this, ASDA is considered as one of biggest supermarket retail chains in UK which
has optimistic presence in towns, cities and retail parks in all across the UK. Sometimes, management
of ASDA faces few critical marketing issues due to its misleading advertising. Few of its suppliers
were also spotted to involve in illegal employment practices which also impacts the brand image of
company in a negative manner (Goi, 2009). Moreover, organisation is committed to provide better
values and work quality to its strategic partners as well as customers in order to gain competitive
advantage.
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Market position
As per the economic report of UK, it has been spotted that retail sector of UK is having some
rapid changes in its operations and it has boosted business opportunities for the management of ASDA.
Statistical report indicates that market share of ASDA is high and it is considered as a third largest
retail chain organisation within UK that provides number of retail products to the target customers. In
support of this, it can be said that ASDA is continuously having advancement in its sales and
improving its market share in the supermarket sector (Ballou, 2007). It is also beneficial for its parent
firm as it increases profit margin ratio for the better success. Other than this, it has also been spotted
that competitors of ASDA have lost their market share which is also advantageous for this business
firm. Trading conditions in UK market are challenging and competitive so management of ASDA is
continuously looking forward to improve performance (Bowersox, 2002).
Moreover, brand image of ASDA is strong in the market as compared to diverse competitors
and company is effectively presenting its products and services in the market with an assistance of
promotion techniques. It also provides a great level of assistance to the customers’ needs by offering
high quality of retail products in the market. Company promotes benefits of its products and services in
order to attract more and more customers (Slater, 2007). In other aspect, it can be said that ASDA holds
impressive position in the market and provides a wide range of services to its target customers. Further,
organisation is well known for bringing modifications in the products and services as per the change in
requirement and taste of its target market. It is also one of key reasons that company is effectively
meeting the needs of customers and it has direct positive impact on the organisational success (De
Pelsmacker, 2007). This kind of positive aspect also influences the customer perception and motivate
them to purchase products of the firm as compared with other key competitors such as Tesco,
Sainsbury, Aldi, etc. Moreover, it also renders a great support to organisation and facilitates in dealing
with competitors in the market. It also allows business firm to bring some differentiation in their
products so that business can have impressive success. Another positive impact on the business is
related to the improvement in productivity, profitability and market share (Kenning, 2008). It also
provides better strength to customer base which is one of the ultimate objectives of business firm.
Targeting
In order to gain success, it is necessary for business firm to focus on effective targeting of its
products so that business can have impressive success. In order to target products, management of
ASDA is currently focusing on customers who are more attracted towards health conscious products.
Classification of target group can be as youngsters, sports person, women, etc. In this support, to attract
more and more customers, business organisation is currently focusing on various promotional tools
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such as online media, tv, etc (Karjalainen, 2009). Company is currently focused on the effective
promotion of various benefits of healthy lifestyle in order to create better awareness among customers.
Sometimes, company also faces issues due to improper aliment of standards which also leads business
to the key barriers and impacts business operations. Organisation is presenting themselves as a retail
business firm that provides retail products at low cost as compared to other competitors present in the
market.
Strategic options
Moreover, management of ASDA is also focused towards the effective selection of marketing
mix such as product, price, place and promotion. In order to gain success, management of ASDA is
considering various principles of marketing. These principles assist business firm in the effective
creation of its new product range. Marketing mix is considered as a key business tool which is mostly
used by marketers in order to determine the key aspects of product which company offers to its target
market (Pynes, 2008). ASDA provides a wide range of retail products to its customers which makes
their life easy and assists in conducting day to day activities. Every product has some features which
attract customers to purchase and lead business to impressive success.
Other than this, pricing of its products is low as compared to other competitors that operate in
same UK market. Marketing mix also provides competitive advantage to business firm in order to meet
the organisational objectives. Number of discounts are also provided by the management during
festivals such as Christmas because it also provides better support to activities which can attract more
and more customers. ASDA retail stores are also well located within UK and it provides better
assistance to customers (Pahl-Wostl, 2007). Target customers can easily access the products of ASDA
by visiting its retail stores. Improved level of convenience within store also attracts more customers
and improves the sales of firm. Moreover, promotion means the techniques which create awareness
among customers about the product in order to meet the organisational goals. In this, company is
focusing on various communication tools in order to convey message effectively and improve its
market share.
Other than this, new product development is an accomplished procedure which assist in
bringing new product to the market. In other aspect, it can be said that new product development is all
about to transform market opportunities into product so that better values can be provided to customers
by selling it. Product can be tangible and services can be intangible, so management needs to
understand this aspect effectively in order to have better development of new product (Huang, 2012). It
is also considered as a strategic option which business firm adopts to overcome weakness and adds on
strength to business through using unique features of new product. In this process, it is necessary for
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the management of ASDA to focus on key steps of new product development such as set activities,
product design, implementation and monitoring.
In support of above statement, it can be said that management of ASDA needs to set various
activities which can identify the current market conditions and market needs in order to have effective
development of product. It is essential for management to design its new product as per the outcomes
and needs of market audit (Wise, 2005). Other than this, product must be designed and developed as
per the consideration of key requirements so that product can easily meet the key needs of customers.
This kind of product development will also provide better customer satisfaction and assist in proper
planning of marketing activities.
Moreover, implementation must be conducted according to all the standards that have been
decided by the development panel and management. It is necessary for management to ensure that all
legal aspects are considered as the critical elements in product development process. It will boost
effectiveness of product development process (Warren and Malcolm, 2002). At last, promotion,
advertisement and monitoring are also critical aspects for the business firm. In order to have effective
monitoring, company can focus on feedback system in which customers can provide response in the
respect of new product. It will provide information about the success ratio of new product in the
competitive market and about the customer behaviour towards brand.
MANAGEMENT REPORT
It has been spotted that creation and launching of wide range of product require an improved
focus on diverse operational activities. It assists in the effective identification of key issues and designs
better strategies which can lead business to impressive success. Classification of factors can be as
primary sources, buying, supply chain, merchandising and in-store issues (McDonald. 2012). With an
improved focus on these factors, management of ASDA can attain competitive advantage and lead
business firm to next level of success.
Primary sources
Primary sources is refereed as information sources or documentation that is used at the time of
data collection or study. In other aspect, it can be said that primary sources are also considered as the
sources which business organisation can access for the effective collection of diverse resources which
are needed at preliminary stages in order to accomplish task effectively (Martin, 2009). It is the source
through which management of ASDA can access and collect original materials which can facilitate in
the effective development and launch of new product. Primary source is also considered as an
individual who is focused on starting the product development process for the better success.
In this, project manager of ASDA needs to ensure that management is having correct
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information about various sources which can assist in the effective development of ready to eat food.
Number of legal aspects need to be taken into account to make sure that production process is having
effective consideration of various standards. In support of this, it can be stated that there are number of
resources that are needed by ASDA for the effective creation and launch of new product. Classification
can be as finance, human resource, equipment, etc (Johnson, 2004). New product development process
requires a high level of investment in order to meet objectives. In this, it is necessary for the
management of ASDA to focus on diverse primary sources which can provide better financial
resources and lead business to impressive success such as investors, bank loans, etc.
Moreover, human resource is also one of critical aspects for the effective development of new
product so in this respect, management of ASDA needs to focus on the effective allocation of high
skilled employees. In this, it is necessary for management to take assistance of diverse educational
institution and recruitment agency in order to make sure about human resources (Martin, 2009). In this
educational institution and recruitment agency will be considered as the primary sources.
Technological tools are also essential and it can be attained through maintaining better relationship
with diverse suppliers.
Other than this, improved level of information regarding market needs and conditions is also
one of critical needs. In this respect, management of ASDA can focus on diverse tools and techniques
which can provide information about the market. Pestle analysis, porter five force, etc. are key methods
for collecting information. These are the key tools which can be used by management of ASDA to
understand the market conditions so marketing audit tool is also one of primary sources which plays a
key role in effective development of product (McDonald. 2012). In this, it is necessary for management
to have better relationship with diverse suppliers which provides healthy and fresh raw materials in
order to manufacture ready to eat food.
Buying
Business organisation needs high ratio of raw material purchase in order to meet the
organisational objective. In this respect, management of ASDA purchases its raw materials from
diverse suppliers which operate in same market (Warren and Malcolm, 2002). It is necessary for
management to ensure that goods must be acquired at very low cost so that operation cost can also be
reduced in an effective manner. In this process, it is also essential for management of ASDA to focus
on few steps such as need recognition, information search, alternative evaluation and decision.
In support of above statement, it can be said that management needs to identify key
requirements of the production process and then make decisions regarding purchase of raw materials. It
is also essential to ensure that all members are well known about the key needs of organisation so that
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purchase decision can be made in an effective manner. Moreover, management will also have
investigation for diverse suppliers which can provide various kinds of resources for the effective
development of ready to eat meal (Wise, 2005). Furthermore, management will also focus on the
effective evaluation of diverse alternative approaches which can provide resources in an easy manner
and low cost. After evaluation of all the suppliers, management needs to select supplier in an
appropriate manner as per the market needs as well as organisational needs. Other than this, in last
stage buying decision will made by the management (Huang, 2012). In this, it is necessary for
management to ensure that all tools are properly adopted and purchase decision should be made
effectively.
Supply chain
It is a systematic process which helps management of ASDA to manage flow of products within
organisation. It provides effective allocation of resources in every division in order to reduce the
wastage of material. In other aspect, it is also considered as an efficient distribution system that
provides proper management of inventories so that production process can be improved (Pahl-Wostl,
2007). In order to have effective production of ready to eat meal, it is also necessary for the
management of ASDA to focus on supply chain process so that its production process can be improved
in a better way. Supply chain management is one of critical aspects for every business organisation as it
provides number of benefits.
With an improved focus on supply chain management, ASDA can easily reduce inventory cost.
An effective distribution system is essential in order to cut down the cost of inventories as it also
avoids bulk purchase of raw material. Effective management of resources is also beneficial for the
improvement in financial resources (Pynes, 2008). Moreover, management of ASDA can also have
efficient manufacturing plan which can increase organisational productivity. With an assistance of
supply chain management system, management of ASDA can easily provide inventories at diverse
levels of production without any delay. It is beneficial for the long term manufacturing projects as it
facilitates in effective management of distribution. It will also facilitate business firm to make sure that
manufacturing process of ready to eat meal will not face any kind of resource shortage and should
accomplish in desired time period.
Other than this, quality of ready to eat meal can also be improved with an assistance of supply
chain management. It has been identified that retail firm faces issues regarding the poor quality of
ready to eat meal and it has some negative impact on the business. With a systematic procurement
procedure, management can resolve number of issues regarding the poor quality of product
(Karjalainen, 2009). It also allows management to have proper testing of all the products and ensures
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that market standards are well maintained. Moreover, organization can provide best quality of products
and services to consumers with the help of SMC. It boosts up satisfaction level of buyers and develops
long term relations with consumers.
Issues
It has been spotted that there are number of issues which can be faced by the management of
ASDA within its store. Classification of in store issues can be as improper designing of retail store, less
lobby space, improper arrangement of products and lack of information among employees. In support
of this, it can be stated that number of retail store faces issues due to improper design as it impacts
allocation of resources. It is necessary for the management of ASDA to ensure that its retail store is
properly designed so that products can be arranged in a proper way (Pynes, 2008). Less space in lobby
is also one of critical issues within the retail store. For example, the store is not having proper space
and customers are in line for billing process but due to improper space, customers are not able to stand
properly. It will impact customer perception in a negative manner.
Other than this, improper arrangement of product within store is also one of key issues for
business firm as it impacts convenience factor in a negative manner. It has been identified that mostly
customers are not able to find out products as per their needs and requirements due to improper
allocation of products in the store. In this respect, it is necessary for the management of ASDA to
ensure that all ready to eat meal products are arranged properly within store (Huang, 2012). A fix area
needs to be designed for the effective allocation of products and makes sure that customers can easily
spot out product in the store. Miscommunication and lack of product information are the major issue
for the management of ASDA. It has been identified that mostly workforce do not have proper
information about product which creates barriers for them (Huang, 2012). For example, customer asks
a query to executive about the ready to eat meal but professional does not have proper information
about it, so he will be unable to answer. This situation creates miscommunication and impacts
customer perception in a negative manner.
RECOMMENDATIONS
As per the above statements, it can be said that there are number of in store issues that are faced
by ASDA and it has negative influence on the operational activities. In order to overcome these issues,
management of ASDA can focus on few ways such as proper training can be provided to executives. In
other aspect, it can be said that management of ASDA can provide training to employees about
communication skills so that they can easily interact with customers. It is also necessary for
management to ensure that employees have proper knowledge about the ready to eat meal and its
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benefits so that they can provide correct information to customers. In support of this, it can also be said
that management of ASDA can arrange case study practice in which employees will have opportunity
to meet the goals.
Other than this, it is also necessary for management to set some standards regarding the retail
store. For example, management of ASDA can set the benchmark that every employee can do only 2
mistakes in per day and if they exceed this limit than monetary punishment will be given. This will
reduce the mismanagement of stocks. Moreover, it can also be recommended that employee should
have a proper knowledge about the prices, features and usage of the available products so that
customers should be provided with the detailed information. This will help in influencing buyers for
repeat purchasing. Along with this, management should allot each cluster to 3 employees and every
employee should acknowledge about the each product's information, pricing and offer.
CONCLUSION
After preparing this report on ASDA, it can be concluded that presently this retail store is a
market leader and market changes of UK have given numerous opportunities to this firm to grow
themselves in the UK market. Moreover, this firm has an effective team of management who manages
and makes effective marketing mix strategy. Furthermore, this firm has planned to launch a new
product that is “ready to eat meal”. For that purpose, it has assessed the primary sources which
company possesses and also its usability. Similarly, it has also assessed the buying behaviour of firm so
that quality raw material at lower cost can be acquired. It can also be inferred that supply chain of
company is highly effective and due to which, it can get raw material on time. Further, company is also
facing some issues related to stock management and store management. In order to resolve those
issues, various recommendations have been provided.
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