Globalization, Advertising and Promotion: Asda Case Study

This report, titled "Impact of Globalization upon advertising and promotion: A case study on Asda", investigates the influence of globalization on Asda's advertising and promotional activities. The research explores the background of globalization, its benefits for businesses, and its specific impact on Asda, a major British supermarket retailer. The study examines the effectiveness of Asda's current marketing strategies, including paid advertising and cause marketing, and analyzes the financial costs associated with these efforts. It also assesses Asda's market share within the retail industry and offers recommendations for improving marketing policies and strategies, such as incorporating word-of-mouth marketing and enhancing employee training. The report utilizes literature review, data analysis, and research methodology to provide a comprehensive understanding of the topic, concluding with reflections, recommendations, and alternative approaches to enhance Asda's advertising and promotional efforts in a globalized market.

Globalization

Table of Contents
INTRODUCTION...........................................................................................................................3
Background of the research.........................................................................................................3
Rationale of the research.............................................................................................................4
Literature Review.............................................................................................................................4
Effectiveness of the current marketing strategies of Asda..........................................................5
Financial cost of marketing and advertisement of Asda.............................................................5
Understanding current market share of Asda in retail industry..................................................7
The recommendations to improve marketing policies and strategies of Asda............................8
Research Methodology....................................................................................................................9
DATA ANALYSIS........................................................................................................................11
RESEARCH OUTCOMES ...........................................................................................................21
Reflection, recommendation and alternative methods...................................................................22
Conclusion.....................................................................................................................................23
REFERENCES..............................................................................................................................24

TITLE: Impact of Globalization upon advertising and promotion: A case study on Asda”.
INTRODUCTION
Globalization is a broader concept which is helpful in spreading the technology,
information, products, services, jobs across the national boundaries. This also enables the
countries to allow trade across their boundaries so as to avail the products and services which are
not available easily toward their premise (Brower and Mahajan, 2013). Globalization is helpful
for the countries having poor economic condition by investing with modernization, job
opportunity, upgraded access to free trade of goods and services. This allow the countries to
avail good opportunities of jobs. Thus overall, globalization help the countries to improve their
economic condition. With the help of globalization, the world has become a single market in
which trade has become easy as compared to the previous era. This has make things easier for
the organizations to invest in other countries. There are a lot of factors which are helpful for the
companies to invest in other countries. They look forward for the political, economic, social,
technological standards of the country. In case of lacking in any area force these countries to pull
their legs behind. This research is base on Asda which is a British supermarket retailer
headquartered in Leeds, West Yorkshire. The company mainly deals in retail sector and apart
from that it also operates itself in financial services and mobile sector. The company was
acquired by the American giant Walmart and has become third largest retail store in UK after
Tesco and Sainsbury. This dissertation is based on the impact of globalization on the advertising
and promotion of Asda.
Background of the research
This research is based on the impact of globalization on the advertising and promotional
activities of Asda. It is a British retail supermarket which is operating its services within UK.
The company has a large base of customers and wants to operate globally. In order to do that
globalization will help the company in advertising and promotion. In order to expand the
business, advertisement and promotion activities are necessary (Crane, 2016). These activities
allows the customers to know about the background of company and its products and services.
Therefore globalization will help the company in advertisement and promotion at global level.
These activities will allow them to expand their business globally.

Rationale of the research
The main aim of conducting this research is to increase the knowledge of globalization on
the advertising and promotion of Asda. This will help the researcher to identify the use of
globalization at global level. Apart from that, concept of globalization will help them to
understand its importance in making the whole world a single market (Crane, 2014). Current
marketing strategies of Asda are also discussed in this research which are helpful in
understanding the different strategies of company. Accordingly, different strategies can be
formulated with the help of current strategies. These strategies and policies will help the
researcher to increase its knowledge towards globalization.
Research Aim
The main aim of this research is “To identify the impact of globalization on the
advertisement and promotional activities of Asda.
Research Objective
 To study effectiveness of current marketing strategies of Asda.
 To analyse financial cost of marketing and advertising of Asda.
 To understand current market share of Asda in the retail Industry.
 To make recommendations to improve marketing policies and strategies of Asda.
Research Questions
 What is the effectiveness of current marketing strategies of Asda?
 What is the financial cost of marketing and advertisement of Asda?
 How to understand current market share of Asda in retail industry?
 What are the recommendations to improve marketing policies and strategies of Asda?
Literature Review
Literature review is the analysis and new finding of the already written articles on a
particular topic. The researcher uses different articles of the related topic and continue the further
results in its own research. It help a researcher to include theoretical and methodological
contribution of the topic.
Effectiveness of the current marketing strategies of Asda.
According to Matthew Harvey, 2018, Asda is a British supermarket giant which has
second position in the retail market of UK. All this position is captured due to effective

marketing strategies of Asda. The company has many strategies such as Paid advertisement,
Cause marketing, Word of mouth etc. All these marketing strategies have a great impact over the
increase in sales of company. Following is the explanation of increase in sales of the company.
Paid Advertisement:
It is one of the important strategy which has a great impact over increase in sales of the
company. These type of advertisement shows on the front, bottom and side of the web pages.
The advertisement company is responsible in maintaining the advertisement so as to make its
effective in terms of marketing of Asda. There are different types of categories in the paid
advertisement such as PPI, PPC and display ads. All these categories depends upon the
marketing campaign of company. PPI stands for pay per impression in which payment is made to
the website owner by the company. This payment is done on the basis of number of views of
users of advertisement. PPC stands for pay per click in which payment is done to the website
owner by clicking the advertisement of Asda.
Cause marketing
This type of marketing stands for the benefit to both company and the customers. A
discussion is provided to the customers so as to help them find their benefit in purchasing the
product. This type of marketing leaves a great impact in the minds of customers. Basically, thus
marketing help the customers to provide solutions to them so that they can imposed to purchase
the product of Asda. Although, there are many rivals of Asda in UK which are also providing the
same product to the customers. Asda has to give a cause to the customer to purchase their
product. Therefore, this type of marketing strategy will help the company in increasing their sell
among their rivals.
Financial cost of marketing and advertisement of Asda
According to article views marketing and advertisement is one of the important concept
of increase in sales of the company. Asda have to invest in the marketing department so that they
can avail their products to the customers. This will help the customers to know about the
products and services of the company. As per the data company has invested a lot in the
advertisement in a couple of years. As per the data of cost of advertisement from the year 2012
to 2016, company has invested highest in 2012. In 2012, the company invested 109 million
British pounds. After that 2016, is the highest year in which company had invested 108 million
British pounds. This data shows that company was focusing on delivering their products among

the customers. This advertisement cost will enhance their customer base and thus increases the
sales.
As per the given data, it can be concluded that 2016 is the least invested year in which
advertisement cost is low. The company invested just 75 million British pound in 2016. This
statics resulted in decreasing the cost of investment in advertisement of products of company. It
may be resulted to a great loss to the company as their customer base can decrease.
Understanding current market share of Asda in retail industry
According to Smith, 2018, Market share is the partition of market to a specific company.
In this research, the market share of Asda is discussed among its rivals. This market share will
show the current market strategies of Asda and its performance among its rivals. These retail
stores have a great competition among themselves but still the performance of company is
Illustration 1: Advertisement cots of ASDA
Sources : Advertising expenditure of Asda Stores Ltd in the United Kingdom (UK) from 2012 to
2016 (in million GBP), 2019.

competitive in a giant market. Asda is a leading retail company having a great base in the
customers. Although there are many rivals of the company also which also have a great share in
the market among the retail industry but still Asda has placed a great involvement of its presence
in the market share. An statistics is discussed below which shows the market share of grocers in
Great Britain monthly from January 2015 to October 2018.
According to the above stated graph it can be concluded that Tesco and Sainsbury had the
largest share from January 2015 to October 2018. Although Aldi stands in just below Sainsbury,
but still the market share of It is higher in comparison to Tesco. Both the Tesco and Sainsuby
had almost 44% of the share in grocery market in UK. This states that they have dominated the
area in which other companies are lacking. There are four giant super market stores which are
also known as big four are known as Tesco, Sainsbury's, Asda and Morrison. Asda had almost
16% of the market share in UK which has its influence among the customers. This data shows
how the company is tackling the customers on behalf of fulfilling their needs and demands.
Illustration 2: Market share of Asda
Source: Market share of grocery stores in Great Britain from January 2015 to October 2018,
2019

The recommendations to improve marketing policies and strategies of Asda.
According to Schultz, 2016, marketing strategies Asda was discussed earlier. Theses
strategies include paid advertisement, cause marketing etc. Although, these marketing strategies
helped the company to increase their sales but still they require to have more effective strategies
which are helpful for them to increase their market share. The company had cut the cost of
marketing and advertising in a couple of years recently. Therefore it is required to have effective
strategies which can help them to compete among their rivals. Another reason to improve the
marketing strategies include that the company is having less market share as compared to other
rivals such as Tesco and Sainsbury. These companies are having a great market share. Therefore
some steps should have been taken to implement new and advanced marketing strategies which
are helpful for them to increase their sell and will take them to increase their market share also.
Therefore the company should use some of the another strategies such as word mouth etc. Word
of Mouth is a marketing strategy which will enhance the use of two way communication with the
customer. This will help the company to know the needs and demands of customer easily. Apart
from that, they can also identify the drawbacks of the their products so that they can nullify
them. The drawbacks should be eliminated from the products and services of the company. Apart
from that, the company should provide effective training to the employees who are engaged in
marketing activities. These employees should be trained hard so that they can use the marketing
strategies effectively. They should communicate with the employees so as to gain their views
and perception which are helpful. Another recommendation to the company is that they should
try to identify the strategies or products and services of their company. This will help them to
implement some of the changes which are necessary in order to increase their products sell. They
should try to improve the quality of products and services to the customers. This will help the
company to sustain itself among the rivals.
Research Methodology
Research methodology is the ways and procedure through which a research can be
conducted in an ethical way. This step helps the researcher to explain the research relevancy and
robustness. In order to explain the research methodology, research onion is used by the
researchers. Following are the layers of research onion:
Research Philosophy

There are two types of research philosophies which are used by the researcher. These
research philosophies include pragmatist and interpretivist research philosophy. Pragmatist
research philosophies is used in this research as it is new in comparison to the other research
philosophies (Davis, 2013). This research philosophy is also helpful for the researcher as it yield
better results by implementing different approaches within the research. Apart from that,
different theories and framework are also used in this research with the help of pragmatist
research philosophy.
Research approach
This is the next step in research onion in which there are two types of research
approaches have been used such as inductive and deductive research approach. Out of these two
research approaches inductive research approach is used by the researcher. This approach is used
as it best fits with the pragmatist research philosophy. This approach is helpful in collecting the
primary data and prepared a questionnaire so as to understand the observation of the number of
respondents. This approach is helpful in forming the views and perception to outcome the
address of research.
Research Strategy
The research strategy for investigate is case study approach with the usage of survey
questionnaire. Herein, research is engaged to an respective contextual setting. The firm research
strategy is case study which supports an improve knowledge about that on which firm
concentrate (Gao, 2012). Case study approach facilitates a concentration for the investigation
with the attempt to highlight the effects of the problems upon organisational case study. This
render a powerful relevancy in context of research outcomes applicability as well as consequence
that the outcomes circumstance can have upon particular company. It will be different to result
utilization in case more common approach was considered without any particular company case
study advised fro the examination.
Research Choice
There are two types of research choices available for the researcher in order to conduct a
research such as qualitative and quantitative research methods. In this research, qualitative
research methods are used. This types of method is helpful in forming the theoretical framework
of methods so as to collect the data (Kamal, 2013). In case of qualitative research methods, a

number and statistics is used so as to provide relevancy in the data. Another reason behind
selecting the qualitative research methods is that it is consistent with the inductive research
approach.
Data Collection
Data collection is essential part of investigation as well as without it research can not be
complete. It is systematized process that aids in gathering and assembling information from
various sources so that an appropriate results can be identified for particular issues. Herein, data
collection is significant part of this research. It can be performed through two methods that is
primary data and secondary data collection. Primary data is that which is develop first time
through researcher. It can be collected with the help of some methods that are surveys,
questionnaire and so on. Another one is secondary data, it is already gathered as well as recorded
by another people. It can be available through some sources like journals, websites and so on. It
save the time and minimise the cost of investigator.
Research Sampling
In case of research sampling a sample questionnaire is prepared in order to identify the
issues of research topic. This questionnaire contains research questions based on assumption so
as to gain primary data. The questionnaire should be close ended so that respondents will answer
with their perception in positive, negative or neutral way (Kaynak and Hassan, 2014). The
respondents are the persons who are aware of the research objectives and are asked questionnaire
so as to collect the primary data. These respondents should have knowledge of the required field
to satisfy the relevancy and robustness of the research. The number of respondents taken in this
research are 35. In order to identify the samples of respondents convenience sampling approach
is taken. This approach is helpful for the researcher to identify the potential respondents which
have knowledge of the specific field.
Research Ethics
In order to make a research ethically good, it should be relevant and robust. These
features can be adopted with the help of informed consent, anonymity and confidentiality. In
case of informed consent, the primary research respondents should be aware about the concept of
research. The research objectives should have been clear in their minds so that they can answer
the questions correctly and accurately (Kobayashi, 2012). In case of anonymity, the details of the
research respondents should be hidden so that no one can identify their identity. This will help

the researcher to make the research anonymous. In the end, confidentiality refers to the relevancy
of information. The information of the research should not be transferred to the person who dos
not have proper authentication of that data. The data should be kept confidential so as to
maintain the confidentiality clause of research.
DATA ANALYSIS
QUESTIONNAIRE
Q.1. Are you aware about the concept of globalization ?
 Agree
 Disagree
Q.2. Do you think globalization directly impact on promoting and advertising activities of
ASDA ?
 Yes
 No
Q.3. What are the advantages of globalization while expanding business operations at globally ?
 Gain higher income and profitability
 Create Employee opportunities
Q.4. Does globalization assist in enhancing ASDA growth and profitability level at the market
place ?
 Agree
 Disagree
Q.5. What are the various issues and challenges of globalization faced by ASDA at the time of
promoting business activities ?
 Cultural indifference
 Change in technology
Q.6. Does globalization help company in creating job opportunities for country people ?
 Yes
 No
Q.7. What are the different ways through ASDA can easily promote their business operations
and functions at international level ?
 Provide attractive offers

 Satisfying all customers needs
Q.8. Can globalization aid in expanding ASDA customer's base at global level ?
 Agree
 Disagree
Q.9. Does globalization play an important role in global area while promoting their business
functions ?
 Yes
 No
Q.10. Do you have any suggestion regarding impact of globalization on business activities and
its functions at global level.
Theme 1: Concept of globalization
Q.1. Are you aware about the concept of
globalization ?
Frequency
 Agree 25
 Disagree 15
25
15
Agree
Disagree