Marketing is key element to run any business organization smoothly. It aims to gain customer satisfaction with increasing profitability of entity to sustain product value in competitive market. The present report is based on understanding marketing strategic tools of Asda group UK. It is one of the wide spread retail sector company that provide groceries and general merchandise to large number of customers. In this regard, different marketing process and advantages for marketing oriented strategy can be understood here. Environmental factors that impact on organization's business activity including effective segmentation is obtained through this study. However, learners are able to understand buyer behavior and its impact on firm's reputation in market. Different tools and techniques to launch and advertise products including maintaining attraction of consumers can be recognized. Apart from this, variances between domestic and international marketing including business activities is to be understood th
Asda Group UK:-
Retail sector organization
Number of Stores/branches in global market
Near about 600
Goods and services provided by Asda
Groceries, general merchandise, economic facilities
Number of workers
“Save money. Live better”.
Asda is largest supermarket chain of UK for producing grocery items and food products in international market. It has various branches across country to fulfill all requirements of consumers at high level. However, it is a division of Walmart to expand business entity including planning and controlling over transaction. It is one of efficient organization of retail sector places good reputation in market. Including this, it performs several type of marketing including domestic, online and international for the purpose to increase productivity and profitability of Asda. Its marketing principles involves analyses of current market position, planning, implementing and evaluating. On the basis of this cyclic stages managers of company makes plan for further activities. In addition to this, this entity provides variety of services to make position in market as well effective strategies are applied for its entire development.
1.1 Marketing process
As per the given scenario, there is issue occurs regarding productivity for previous five years. Therefore, being marketing manager of Asda, preparing plans for different strategies to maintain organization's existence and launching new products in market (Leonidou, Katsikeas and Morgan, 2013). Including this, re-position of groceries and merchandises to implement business activities is to be planned. Thus, problem can be solved out by applying marketing process that can be described as below:-
Analyze problem including causes:- At first, recognizing current situation is required to reduce issue occurs at workplace. Including this, it is necessary for entity to determine reasons behind the problem. It can be identified that at present, entity is surviving with this situation due to imbalanced production and distribution system. Thus, according to given case, issue and its cause are determined which leads to making strategic plans for re-positioning and advertising new products in market (Mintz and Currim, 2013).
Preparing strategies according to recognizing issues:- After analyzing situation including its causes, manager of Asda prepares plan to sustain product value in market. It involves forecasting and decision making for developing strategic plans. In addition to this, various plans and decisions are made related to resource as well fund allocation to reach out objectives. Thus, evaluation of proper market structure is helpful for strategic plans to implement action plans.
Implementing and critically evaluating the present performance:- under strategic action plans, it proceed to developing the planned strategies. Moreover, its implementation is valuable to meeting set goals. In addition to this, evaluation of present performance is comprised with last business activities. In this regard, proper balance is created to achieve targets. It also involves creating balance between demand and supply as well performance of business organization (Totten, and Cross, 2015).
Thus, above mentioned marketing process is implemented to make re-position of groceries and food items in market. Moreover, systematic transaction of goods and services can be obtained to run entity effectively.
1.2 Advantages of marketing orientation
Marketing orientation considers as business model which is helpful in exchanging company's product systematically with customer satisfaction. It is a structural framework that plays crucial role in marketing oriented strategy. Moreover, marketing orientation is beneficial for Asda to sustain position and implementing dimensions for its effectiveness. Thus, marketing orientation significance can describe as follows:-
Aware with current market position:- Strategies related to market position of Asda present recent groceries and merchandise position in market. However, actual performance of transaction and qualitative services are determined through this process. It considers as key element to move towards planning and decision making for further business activities (Veríssimo and McKinley, 2016). Thus, strengths and weaknesses of company is presented to increase marketing strategy for implementing action plans. Including this, it also aware with customer demand regarding items' efficiency. It generates idea to fulfill consumer requirement impacts on getting maximum satisfaction for goods effectiveness.
Competitive advantage:- Marketing orientation is helpful for taking benefits of competition presents in market. It interrelates with presenting market position of Asda and determining its role model by facing competition. In this regard, attitude and perception of consumers related to grocery items and food products are analyzed. It is interlinked with demand and supply of company's services also creates environment of firm through surviving in competition (Wei, Samiee and Lee, 2014).
Cost:- Essential of marketing as price is tool for determination of products' costs. In accordance to this, by identifying market position of Asda cost effectiveness is obtained. Moreover, it presents various idea for facing competition including this pricing leads to create marketing oriented strategy. On the basis of market position, changes in price of products can be done to attract buyers at large scale. As per consumer behavior tool economic condition of customers is analyzed that proceed to making strategy for cost effectiveness. Therefore, they can afford groceries and merchandise products of organization effectively. It affects market position of firm to make place and carrying on organization smoothly by focusing on entire marketing essentials (Huang and et.al., 2015).
Marketing orientation is essential for Asda to recover problems occur in entity as well provides variety of strategy for sustainability. From all the above mentioned orientations, awareness with market position is appropriate for increasing productivity and implementing action plans to achieve Asda's effectiveness (Asda, 2016). However, it is key component to make position and increasing efficiency to create balance between production and distribution. Positive environment of firm can emerge by applying these marketing strategies. Thus, organization should utilize marketing orientation technique as recognizing actual position to reach out set target.
2.1 Environmental factors that impact on marketing decisions
Marketing decision involves various determinants such as launching, promoting and evaluating product value in market. However, position of Asda in and methods to sustain in competitive market are dependent on environmental factors can express as below:-
Micro environmental factors:- It includes competitors, suppliers, customers that impact on Asda goodwill in market. Thus, dealing with all of these elements and relations create market position affects business entity's activities. In this regard, manager of organization can control over these components by preparing strategic plans (Adams, 2015). Including this, systematic management of grocery items and food products including qualitative efficiencies can be obtained through analyzing micro environmental factors of firm.
Macro environmental factors:- These are those uncontrollable components which remains beyond monitoring over. It includes PESTLE analysis that stands for political, economic, social, technological, legal and ecological factors. Therefore, manager of Asda recognizes these elements for preparing strategic plans and its evaluation. Under political factors, tax policy, foreign trade, market structure as inflation and deflation come that impacts business activities of firm. Including this, social and economic factors involves public interest and earning power of customers to buy products (Brown, Browne and Browne, 2015). Similarly, technological and legal factors includes protection structures and changes in technologies regarding producing and supplementing groceries. Thus, macro environmental factors that affect on company are analyzed by entity to prepare strategies for firm's effectiveness.
Manager of Asda makes decision by analyzing all above mentioned components that plays crucial role for increasing productivity and profitability. It also impacts on making place in competitive market.
2.2 Segmentation criteria to be used for products in different market
For several market structures, manager of Asda uses different criteria for segmentation. It is useful to fulfill customers' requirements in several markets can describe as follows:-
Homogeneous criteria:- It involves division of products in similar range. Under this strategy, consumers allocated to individual part in equal relevant way. Thus, segmentation is presented by considering all buyers' have same needs (Fan, Lau and Zhao, 2015). It is significant to provide goods in equivalent terms.
Heterogeneous criteria:- This basis for market segmentation includes varieties of factors with analyzing buyer behavior. Hence, through this criteria, as per interests of consumer division for grocery and food items is presented. In this regard, actual market position and consumers' opinions are determined for segmenting market effectively.
Measurable criteria:- Market segmentation is done through measuring information collected form market. Recognition of all public attitude and perception including product value's position in competitive market are obtained. On behalf of these factors, different tools are determined to measure and segment products for production and distribution of Asda services (Huang and et.al., 2015). In accordance to this, gathered data are identified that proceed to make decisions for marketing of groceries and merchandise products.
Accessible criteria:- It is related to segment Asda products according to accessibility. In accordance to this, manager of company looks at distribution and communication channels for producing groceries. In this regard, reaching out criteria to meet consumers is obtained. Therefore, marketing essential as place is concentrated key to segment market for effective marketing strategy of organization.
2.3 Selection of targeting strategy to be used by Asda
After analyzing customer requirements, targets are set for producing and supplementing goods. For this purpose, different marketing strategies are applied and implemented that remains helpful for business as well competitive plannings. Hence, various marketing structures for making place in market can be obtained as follows:-
Undifferentiated marketing:- It refers to mass market philosophy for supplying grocery items of Asda. It is interlinked with homogeneous market segmentation (Leonidou, Katsikeas and Morgan, 2013). In this regard, homogeneous market segmentation is impacted for producing products. However, it influences cost of products and market orientation strategy.
Differentiated marketing:- It is related to marketing of Asda as per variances of customer requirements. Therefore, under this marketing, targets are segmented for production and distribution of grocery items. It generates various objectives for target strategies that impacts on market position of firm. However, implementation of different goods are targeted to increase productivity and launching new items in market.
Focus on concentrated targeting:- Under this strategy, individual goods are targeted to be improved. Hence, manager of Asda focuses on objective to develop specific grocery or food products (Leonidou and et.al., 2013). This strategy is appropriate for promoting segmented and particular items for sustain market position by facing competition.
Customized marketing:- it is interlinked with relationship between supplier and customers. Under this marketing strategy, requirements of individual customers are fulfilled regarding unique and special demand. Thus, customized marketing is determined within organizational market because of high value of orders and specific demand of buyers.
2.4 Buyer behavior affect on marketing activities of Asda
Interest and attitude of customer impacts on marketing activity including establishing, advertising and analyzing product's position in market (Liu and et.al., 2016). There are different factors to analyze buyers' opinion that can be determined as below:-
Personal or psychological factors:- It includes varieties of components that presents personality and interests of buyers. It is related to interests, opinions and lifestyles of consumer by which Asda can prepare strategy for market oriented activities. Therefore, on this behalf company implements marketing activities including promotion and analyses.
Socio-cultural factors:- Different countries people have various social and groups that influences marketing activities for Asda group. In this regard, several regions and organizations demand affect on groceries and merchandise products marketing (Mintz and Currim, 2013). It influences marketing and business strategies for implementation of products and advertising of items at high level. Thus, concentrating on these factors leads to increase strength for facing cut throat competition.
2.5 New positioning strategy for Asda
Positioning strategy is great concept of marketing for launching and promoting products including making place in market effectively. It is attribute of marketing to achieve organization's objectives. However, new products can make position through attractive advertising techniques. Under this term, various factors are determined including product quality, pricing and accessibility (Mintz and Currim, 2015). Including this, various marketing activities and competitive strategies are obtained for sustaining position of groceries and food items are implemented.
According to given case scenario, manager prepares strategy for establishing new products with the help of marketing essentials. For this purpose, different promoting tools are determined such as advertising through TV, radio, newspaper, magazines and email etc. In accordance to this, features and products' attractive tools are presented for positing in market according to market segmentation.
3.1 Methods to promote new products to take competitive advantage
New products of Asda can be advertised effectively through different techniques. For instance; using promoting tools like TV, radio, newspaper, social media sites etc. In this regard, by setting product efficiency according to expenses and quality features Asda launches goods in market. Further, makes plan for its development through taking advantage of competition. It is useful for increasing marketing and competitive strategies (Nufer, 2015).
Therefore, by using different advertisement tools new products of entity can be developed. It includes showing off of products' uniqueness and features to be implemented. Thus, company can take advantage of competition to sustain product value for long term sustainability. However, through these tools Asda can develop product efficiency in market that impacts on marketing and business activities. It influences marketing for domestic as well online
to develop product value in market. It is beneficial to take advantage of competition in global market for attracting consumers at high level (Totten and Cross, 2015).
3.2 Different distribution methods
Asda aims to provide goods and services as per convenience of customers. In this process, varities of marketing strategies are prepared to meet customer expectation. It involves different distribution channels for producing and supplementing goods effectively. It is key element to achieve customer satisfaction through effective placing for reaching out products. In accordance to this, company sets target to supply products at right place in appropriate time. It is valuable for organization's effectiveness as well increasing in demand for products (Sheth and Sisodia, 2015).
Thus, under place as marketing essential, various channels are obtained such as wholesalers, retailers, customers etc. Therefore, manager of Asda prepares strategy for distributing goods to consumers effectively. It influences market position and effective goodwill for long term sustainability of company and its produced products. However, different distribution channels are obtained to maintain interest of buyers for purchasing goods at high level. Including this, it is useful for establishing good relationship with collaborative effectively that impacts on stability of firm in competitive market (Veríssimo and McKinley, 2016).
3.3 Price determination affect on marketing objectives and market conditions for developing new products
According to expenses realted to purchasing raw materials, advertising and other fields, price are determined for product. In this regard, manager of Asda sets cost of goods by analyzing economic conditions and purchasing power of consumers. However, this price determination affects demand and product value in market, it influences strength of organization for making effective place in competitive market.
Thus, deciding cost of products on the basis of various determinants impact on organization's effectiveness. Similarly, different ideas for competitive advantage and supplementing schemes regarding discount can be obtained (Walker, 2014). However, fixing cost for making place in market present for facing competition. In addition to this, new products' cost effectiveness also impacts on Asda reputation in market. Hence, pricing strategy impacts productivity and profitability of organization.
3.4 Various promotional activities to reach out set goals
Asda uses different advertising tools for increasing efficiency and making position in market. Therefore, organization's goal can be achieved through various tools including TV, newspaper, social networking sites, magazines, articles etc. By using these techniques orgnization can attract consumers at high level. Including this, creating contact through email and Facebook, Twitter is helpful for promoting protects (Wei, Samie. and Lee, 2014). In this regard, various elements are presented to emerge interest and aware society related to product features. However, these advertising techniques are useful for stability of company in market.
In accordance to this, various promotional activities are applied to attract customers including getting positive feedback for effectiveness of firm. Thus, these are supportive tools to promote goods including reaching out marketing objectives efficiently. Through these components, Asda can achieve goals for effective product value that impacts on competitive strategies for increasing in demand at large scale. Moreover, it also provides various factors to compare Asda performance with competitive entity that is helpful for adding uniqueness in items supplied (Asda, 2016). By using different attractive techniques to promote products are valuable to get positive feedback from customers.
3.5 Additional components to extend marketing mix for Asda
Except above mentioned marketing elements product, place, price and promotion, different factors also impact marketing activities of Asda. For example; people, physical evidence and packaging. In accordance to this, people involves employees' performance to present organization's structure. These are crucial for effectiveness of entity at high level. In this regard, firm aims to develop workers' working efficiency imapcts on their personal and professional development. However, packaging and physical evidence includes look out of products and manner to present goods in front of public (Brown, Browne and Browne, 2015). Therefore, these components are useful for implementing strategies and making place in market effectively. It creates accurate structure of organization to present business profile.
4.1 Marketing mixes plan for two different market segments
Marketing mix includes product, price, place and promotion elements for presenting and promoting goods and services of organization. In this regard, manager of Asda makes decision according to targeting, segmenting and positioning process. Therefore, it produces products for different segements as male, female and children. Howeverm it provides different category of goods by focusing to choices and requirements (Fan, Lau and Zhao, 2015). Thus, it sets target to divide goods as per segmentation for elders and baby products. In accordance to this, for both selected and targeted people, Asda provides different quality features and flavors of products. It involves concentrating on all marketing mix elements as product, price, promotion etc. It set different goals for selected segmentation. In this regard, varieties of product qualities, pricing and different promotional activities are implemented for effective marketing. However, it includes making decisions for marketing plans including promotion and attraction towards goods and services. In addition to this, as per segmentation, different types of plans are obtained for increasing efficiency of firm. It impacts on customer satisfaction and profit earning capabilities of firm at large scale. Thus, Asda targets, segments and implement strategies for advertising to increase demand for goods and services. It is valuable to create effective market position. It impacts on business and competitive strategies of organization systematically. For this segmentation, Asda provides different facilities for children and young generation's people. It is possible through analyzing past years' performances and making decisions for implementing strategies regarding company and its structure for long term sustainability in market. Moreover, different tools and technique are applied for maintaining good reputation of firm in market by facing competition (Liu and et.al., 2016).
4.2 B2B vs. B2C
Asda is wide spread retail sector's organization that implement business activities by producing goods to customers including retailers, wholesalers and other business entities. In accordance to this, transaction of groceries and food items are obtained for estabilsihing relations with collaborative. It can be understood in brief as follows:-
Business to business (B2B):- It is an activity for exchanging goods and services within business to business. In this regard, relationship of Asda with retailers, wholesalers and other entities of different countries are determined. It influences expansion and increasing demand for grocery items. However, different techniques are used for increasing qualitative services of organization at high level (Sheth and Sisodia, 2015). Hence, it considers as tool for implementing strategy to face competition and making its effective position in global market.
Business to consumer (B2C):- Under this relationship, it is determined that customers are key elements of Asda. In accordance to this, marketing strategy as focusing on buyer requirements and making plans to fulfill them impacts on organization's productivity (Veríssimo and McKinley, 2016). Therefore, for launching and developing products in market, manager uses different techniques. However, establishing effective public relations and critically analyzing market position is impacted on business performance of company that is helpful for long term sustainability.
4.3 Differences between domestic and international marketing
Domestic marketing refers to transacting goods and services in country. While, international marketing is related to performing transaction of products within nations worldwide. Both are valuable for enlargement and increasing qualitative services of Asda. In comparison to both marketing, various differences are presented. In domestic marketing, there is small scope and convenient transaction of products is obtained. In comparison to domestic, it is determined that global marketing had wider scope to perform business activities in wide range (Adams, 2015). However, it is considered that international marketing is costlier than domestic including this various charges and tax rates for exchanging products are presented.
The report is concluded that effective marketing essentials are useful for increasing competitive strategy of organization. Various tools and techniques are obtained for presenting marketing terms. In addition to this, several determinants for getting customer satisfaction and overall development of organization are recognized. However, various marketing mix elements and strategic planning are considered through this study to increase efficiency of firm.
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