Marketing Management Report: ASDA Stores Limited Analysis and Strategy

This report provides a comprehensive analysis of ASDA Stores' marketing management. It begins with an executive summary and introduction, providing background information on ASDA and the retail industry. The main body of the report includes a detailed marketing audit, assessing market attractiveness and competitive landscape. A thorough PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors influencing ASDA's operations. The marketing mix is then explored, followed by an evaluation of necessary changes to enhance ASDA's position relative to its external environment. The report concludes with a summary of findings and a list of references. The report emphasizes ASDA's strategies, including price penetration and technological advancements, and also discusses the company's social responsibilities and employee benefits.

MARKETING
MANAGEMENT

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Background information about ASDA company and industry it prevails..................................2
Marketing audit along with macro environmental analysis of ASDA stores limited.................3
Marketing mix of ASDA stores limited......................................................................................8
Actions and changes required in the marketing mix of the company to reduce its gap with its
external environment...................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

EXECUTIVE SUMMARY
The marketing management is organisation discipline which focuses on practical
application of market orientation and management of firms. The marketing management of
ASDA stores has been highlighted in this report. The report has begun with laying a brief
background of ASDA and the industry it prevails. The report has also discussing about PESTLE
analysis which affects functionality of the company ASDA. Also, the marketing mix has been
highlighted in this report along with changes which has been analysed to required to make for
reducing the gap with their external environment has covered in this report.
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INTRODUCTION
Marketing management is a discipline of organisation that focus on techniques, practical
application of orientation of marketing, methods inside organisation and management of
marketing of firms along with activities and resources (Berry, 2016). For better explanation of
marketing management ASDA stores limited will be taken. The ASDA stores is a British super
market company in UK. The company deals in general merchandise, grocery, mobile phone,
financial services,etc. The report will lay emphasis on background information of ASDA
company and the industry the company prevails. This report will also undertake a market audit
and overall marketing attractiveness. Also, the report will discuss macro environmental factors
which affects operations and functioning of the ASDA group. The marketing mix of ASDA
stores will also be highlighted in this report. The report will also cover changes which will be
required in marketing mix of ASDA stores to reduce gap with their external environment.
MAIN BODY
Background information about ASDA company and industry it prevails
ASDA stores limited is a super market company of Britain. The headquarters of company
is in West Yorkshire and Leads. The company was founded in 1949 by Fred Asquith, Perter and
Sir Noed Stockdate (Luca, Hibbert, and McDonald, 2016). The company trades in financial
services, general merchandise, insurance and also is Grocery. ASDA is the subsidiary company
of Walmart and main subsidiaries of ASDA are ASDA money, ASDA mobile, etc.
The company is dealing under industry of retail and the aim is to provide numerous
variety of goods along with services to their consumers through various distribution channel.
The ASDA stores limited uses advance technology in order to promote their products and
services in target market (Kamboj, and Rahman, 2015). The industry of retail provides products
& services by online websites, retail stores and by wholesalers as well as retailers.
Number of employees currently working in ASDA group are 165,000. Also 2018, the
company was one of the third largest chain of supermarket in UK. Now in 2019, the company
increment in their position from third to second. The company offers various services to their
customers like mobile phone, financial services, etc (Zahoor, and Qureshi, 2017).
The total no. of employees who work with ASDA are 165000. It is the s third largest
supermarket chain in UK after the TESCO and Sainsbury in 2018. But in 2019 they regain their
position and comes to the second position. It also offers the various services to their customer
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like financial services, mobile phone. The promotion strategy of ASDA is based on the price and
they focus to save the money (Hearn, and Hein, 2015).
The format of stores ASDA have are in ASDA superstores, ASDA living, ASDA super
centres, ASDA petrol, ASDA essential, George store, etc. The services and brands of ASDA are
following chosen by you, ASDA mobile, ASDA smart price, George clothing, ASDA money etc
(Bai, and Chang, 2015).
The ASDA group provide numerous facilities to their hired employees in order to
maintain their organisational structure and to manage and improve relationship with employees.
The company offer services to their employees for gaining level of satisfaction in them so that
they can help the organisation like ASDA in attaining their objectives (Fortenberry Jr, and
McGoldrick, 2016). The company ASDA offers benefits like holidays, leave, perks, incentives,
recognition programme, promotions etc. in order to attain attraction and satisfaction of
employee's.
The company is also performing their social responsibility very efficiently such as use of
energy in efficient manner, trade in ethical ways, welfare of children, sponsorship, etc (Kienzler,
and Kowalkowski, 2017). The charity group associated with ASDA stores are aims to figure out
reason behind problems facing by pregnancy and in order to avail benefit they provide free
charge services to them. Also, the company provides benefits to children in need of cloths food
and educates them.
ASDA stores limited mission statement is to be best value retailer of Britain and exceed
the needs of customers. Also, the companies main purpose comprises of to provide most
affordable goods and services to everyone (Chow, Lai, and Loi, 2015). The company work in
accordance with their values which includes strive for excellence and provide service to
customers. Also, the company respect the individual.
Marketing audit along with macro environmental analysis of ASDA stores limited
About marketing audit and their application in ASDA stores limited
Marketing audit is s systematic and complete study of environment of market of
businesses. The audit of marketing involves interpretation and evaluation of external and internal
environment which surrounds business entity (Percy, 2016). The marketing audit deals with
strategies, goals, objectives and principles which ascertain problem areas and opportunities.
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Also, audit of marketing covers recommendations for an action plan in order to enhance
marketing performance of market.
Marketing audit in ASDA stores limited should be systematic which includes orderly
arranged so that evaluation of macro and micro environment can be effectively operated. Also,
the audit must be periodical which means ASDA stores limited should always ready for the
uncertainties which could affect them. On the other hand it should be independent enough that
self audit and outsider audit can be fairly executed (Saura, Palos-Sánchez, and Cerdá Suárez,
2017). The marketing audit must be comprehend to all and problem persisting in the ASDA
stores limited should be evenly understandable.
Overall market attractiveness
Market attractiveness of ASDA is measurable by the market size and rate of growth
company is attaining. The size of market in which ASDA is dealing is very large therefore, the
company is attaining higher margin of profit from all over UK and outside (Chaffey, and Ellis-
Chadwick, 2019). The growth rate of market is fair which is means market in which ASDA is
dealing is not growing the way company grows. Thus, the companies are attaining lower profit
margin which is similar that of with their competitors (Liu, Schuckert, and Law, 2015).
The trend of price companies follow is affordable and price penetration strategy are
adopted by company to attract huge number of customers towards them (Rahimi, 2017). This
trend of price penetration helps the ASDA stores limited in attaining huge customers base and to
avail their products and services at affordable price.
Another element of measuring market attractiveness for the company is analysing
competition for them. The ASDA stores limited enters in highly competitive environment. The
company is facing huge competition from companies such as TESCO, Sainsbury, etc (Rosson,
and Ford, 2016). In order to attract customers towards ASDA, company operated innovation
periodically and always stay attentive towards actions taken by different rivalries which prevails
in the same market.
Macro environmental analysis for ASDA stores limited
Political analysis Norms of taxation – Rules of Lower taxation is applicable for the company such as
ASDA stores. The ASDA stores limited has been increasing their ability to earn
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maximum profit which boosted their department of research and development (Madhani,
2015). Also, the company is able to invest more by lower rates of taxation policies. Change in policies of government – The government of UK after the occurrence of Brexit
changes their policies of regular basis. The ASDA stores limited is facing huge problem
to be in line with frequent changing policies of government. The group of ASDA is
occupied by their parent company Walmart since 1999 and still maintaining their own
British board. ASDA impacts a lot by Brexit and also their food industries are affected a
lot while facing crisis (Penn, and Pennix, 2017). Also, these changing policies of
government affects their operations of business and trade. Regulations – The ASDA stores are operating in different markets all over the world.
Therefore, company need to follow all the regulations of different countries in which they
open their stores (Mehmet, and Clarke, 2016). The management department deals with
all the regulations and follow them efficiently so that their business does not hinders by
these forces of regulations.
Economical analysis Strategies of pricing – The company ASDA stores limited is following price penetration
strategy. Therefore, they need to maintain low price in market in order to enter in market
and to create an efficient customer base. But the factors such as employees salary,
demand of employed labour, energy cost, etc (Mehmet, and Clarke, 2016). impacts their
decision of price. The company in order to maintain their prices which is their primary
mission applied smart pricing strategy. In which they packed their everyday usage
products with very simple and cost friendly material. The application of this strategy
enable ASDA stores to stand alone in front of competitors and give them tough
competition in times of financial crises. Inflation rate – The inflation rate also impacts a lot to ASDA stores limited. Such as in
2018, The recession time impact the company by eventually increase in their liquidity
among market. This directly impact to lead inflation in the country (Penn, and Pennix,
2017). The sales of ASDA stores depletes by prevailing inflation in country along with it
their business affects. Economy based performance – The separation Europe from UK has also affect business
of ASDA. As the stores in other parts during separation faces delay in trade and the crisis
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in country impacts the huge loss in ASDA (Rosson, and Ford, 2016). The company to
overcome their losses begin to concentrate on Asian countries. The increase in disposable
income of customer leas to rise in sales which further increases their businesses.
Socio cultural analysis Diversification in gender – The role of gender plays a vital role in culture and purchasing
behaviour of customers of ASDA group. The targeting technique is developed by ASDA
stores limited on roles of gender which has helped ASDA in targeting and increase
customer base (Chaffey, and Ellis-Chadwick, 2019). The customer satisfaction is
increased by this effort of company. Benefits related to charity and other - ASDA is a company which performs their social
responsibilities very effectively. In order to accomplish social responsibility company
undertakes charity and welfare services to the community they operates in (Liu,
Schuckert, and Law, 2015). The company ASDA stores limited also provide benefit to
old employee worked in their company and gives benefits such as pension, health
insurance to them at the time of retirement. Concern regarding safety and health – ASDA stores limited has changed their policy of
working hours into flexible working hours. So that the work life balance could be able to
maintained by employees. The employees able to manage their social life and
professional life effectively.
Technological analysis Expansion via online – The company ASDA stores limited start their technological
expansion through online official site (Saura, Palos-Sánchez, and Cerdá Suárez, 2017).
Also, by online distribution of their products company is able to generate more sales and
attract new base of customer towards their brand. The customers attracts a lot by online
services availed by the company. Cost reduction – The technological advancement such as trucks with integrated freezers
while trading to different areas by ASDA helps the company to improve their chain of
supply, and partners channel (Percy, 2016). As this integrated freezer remains the
products of ASDA fresh and reduced production cost as well as operating efficiency of
the company is improving by this advancement in supplying trucks.
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 Implementation of software and other related innovation – The company start using
different software for increasing their production and to execute them till finish product
by error free production (Kienzler, and Kowalkowski, 2017). The software emphasises
on latest technology for executing marketing activities for the company. ASDA is using
cloud technology to maintain their accounts as well as data according to their
convenience.
Legal analysis Employment act, 2002 – This act is for employees working in ASDA and the company
itself. The Employment act is one of the basic act of the legislation which needs to be
followed by every company including ASDA (Chow, Lai, and Loi, 2015). This law
controls activities of business and provide ASDA guidelines which help the company to
be in line with legislations. By following employment law company is able to gain
goodwill in the market it trade. Health and safety law – The ASDA stores limited provides safety and health care
facilities to their employees in according to this law. By following this law, ASDA make
their employees to be sure regarding their lives (Zahoor, and Qureshi, 2017). The
employees gain confidence and build trust in the company and it directly impact on the
decrease in turnover rate of the company ASDA group. The company by following
Health and safety law effectively attaining organisational goals with the efficient and
loyal working efforts of their employees. National Minimum wages act, 1998 – The company follow minimum wages act, 1998
and in accordance to follow this act the ASDA stores limited is obligated to pay a
minimum wage to all their employees (Luca, Hibbert, and McDonald, 2016). Also, the
company agrees on every element of minimum wages act. This improves remuneration
policies of ASDA and attracts more number of employees towards their company.
Environmental analysis Product recycling - The company is contributing their efforts not only in developing
society but also they are executing their efforts towards environment. ASDA is adapting
latest trend prevailing in the world to enhance environment friendly practises by
recycling their products (Bai, and Chang, 2015). The company focuses to manage waste
for attaining sustainability of their stores located in different geographical areas.
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 Eco friendly environment – The ASDA group is laying initiative efforts towards green
economy. For this they manufactures their products by using technologies which uses
renewable energy. The company undertakes environment friendly activities to enhance
their image and to contribute their fullest to the environment by using available resources
very efficiently.
Marketing mix of ASDA stores limited Product mix – The ASDA group offers numerous variety of products to customers. The
product range vary from fresh grocery, food items including drink, health, food, etc. ,
brand cloths, sports equipment and entertainment. ASDA also maintains their quality in
the product they offers (Hearn, and Hein, 2015). The company always execute
innovation in their products over a period of time according to needs of their customers.
The company also give a tough competition to their rivalries by making innovation in
their products. Like, ASDA start range of financial services of their company by initiate
travel money, personal load and insurance services. Price mix – The mission statement of ASDA group is that they want to deliver their
products to a large customer base by offering their products at affordable price. The
company is able to attract their customers by offering them good quality products at
affordable price. Also, they able to generate more profit than their competitors by this
strategy (Kamboj, and Rahman, 2015). ASDA is initiating their mission through price
penetration strategy. The company also avail discount to attract customers of competitors
towards them.
 Place mix – The company ASDA uses distribution channel by store selling. The company
has 633 stores all over UK to sell and make available their products to final consumers.
The stores of ASDA limited has divided into numerous range. They are ASDA super
centers, ASDA Petrol filling station, ASDA Supermarket, ASDA superstore, etc. The
ASDA group is covering wider retail market area in UK (Berry, 2016). The ASDA stores
are not only operating their services through stores but also they avail their products to
customers through their online official website. To grab customers of different
geographies the ASDA is selling their products to final consumers through online
website.
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 Promotion mix – ASDA uses different tools of marketing in order to promote products in
market and to attract target customers towards them. The company uses TV
advertisement as a vital tool which attracts customers from different geographies. The
company also advertises through newspaper, radio and social media platform to attract
customers (Fortenberry Jr, and McGoldrick, 2016). The company also lay sponsorship
programs to attain goodwill along with promotions. Process mix – ASDA stores limited uses a simplest process to achieve their
organisational objectives. The company collects products from suppliers and arrange
them in their showrooms and stores. Also, provide pictures with link on online website
for selling (Rahimi, 2017). The company also access service team which always helps
customers in making purchasing decision in ASDA stores. People mix – The ASDA stores have almost 165,000 employees working in their 633
stores. The company carry out their day to day activities of business by the help these
employees only. The company ASDA organises training and development programme
for them to attain effectiveness and efficiency in their working (Madhani, 2015). The
employees are almost train for minimum 4 weeks before working in actual business
operations of ASDA. The employees are awarded for their good performance and also
benefits are provided by the company in form of non monetary and monetary form.
 Physical evidence mix – ASDA stores limited does not limit to their stores only. Infact
they have logo and name of their company. The company makes their logo very
presentable and also access the same logo while delivering their products to final
customers by stores of online websites.
Actions and changes required in the marketing mix of the company to reduce its gap with its
external environment
The different tools used by ASDA in their marketing mix has leaded the company to
grow more in domestic market. The company has achieved 2nd position in the current local
market and established its strong position after Tesco. But on the other hand there are few
complications with the company which is slowing down the growth of ASDA in wider market,
as the company has failed to adopt the cultural needs and requirements of the new market
(Askarinia And et.al., 2015). Also, ASDA has been unable to sustain the competition offered or
deal with the competitors in the new market which has created a big issue for the company's
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growth in the new markets. ASDA needs to make changes in its marketing policy and the
strategies in order to deal with above issues. ASDA can adopt STP theory to fix the problem in
the organization. STP includes all the components that would help to find out the solution for the
company's issues. Segmentation Target Positioning allocates the activities into three
components- the first one divides the customer into different groups as according to the
demographics or characteristic, the next one chooses the best suitable group that company can
satisfy as well as third one ensures that the company delivers as accordingly to the customers.
The components of STP are explained as follows-
 Segmentation- Segmentation refers to the process of identification of the customers as
according to their taste, preference and requirements and divide them into several groups
(Aithal, 2017). This will help ASDA to know the needs and requirements of their
customers in quantitative numbers. But there are some areas that ASDA needs to
understand before implementing sedimentation, as it is based on the different
characteristics and components where the division of customers can be made, so the
company must make sure that it considers some reliable characteristics which meet out
the company requirements as well. Segmentation can be implemented through various
ways as such ASDA can make an analysis of the competitor's product and evaluate the
customer responses for it and also find out their satisfaction level, so that the company
gets to understand the customer's need and requirements through it. After organizing the
survey of the above activity, ASDA can go through and evaluate the needs of the
customer by analyzing the survey and segmenting them accordingly.
 Targeting- Targeting is the process of selecting a particular segment in which the
company can serve in the best manner. Targeting will also serve as a risk taking step as it
will include the huge investment of the company to target a particular segment of the
customers to satisfy their needs and deliver best out of the company's offerings. ASDA
will need to choose a specific segment of customers where it will be able to satisfy their
needs and requirements and deliver the best for it. However it is not possible for the
company to satisfy all the groups of segments through its one product hence it is
necessary to choose the best segment to whom the company can deliver and satisfy. This
can be done by observing and identifying the need and requirement of that segment and
comparing the ability of the company to satisfy the. In case these both doesn't meet each
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