The environment of retail supermarket in UK is highly competitive and Asda needs to act according to the changing business environment and should take new business strategies to improve its market positioning by increasing its market share. This report is prepared to analyze the current market situation of Asda and their current market strategy and some alternative market strategy which can be applied to improve the market positioning of Asda.
Related Abstract The following report considers the ethical position of ASDA, noting the external environment in which it operates and its marketing plan. However, given changes in the external environment, and the rise in the discount retailers, ASDA has now been faced with higher competition.
To combat this, the report suggests that ASDA looks to change its strategy to focus more on a sustainable supply-chain, potentially one which is focused on UK food and products. While this may lead to higher prices from the retailer, it could improve its image when it comes to sustainable food retailing, and so warrant higher prices to consumers, especially if the introduction of local products develops an emotional attachment Asda market strategies customers.
Introduction The following assignment will consider ASDA, considering the external environment in which the business operates as well as its ethical consideration, determining whether the current strategy should be maintained or whether a change is needed, with the assignment then making recommendations.
At the same time, Aldi also announced that it looks to take its store tally from to 1, by ; Lidl also announced plans to open new stores in the UK each year, noted by Gale This move in the market has been supported from a new business model and changing consumer habits.
Discounters have benefitted from economies of scale, reducing the scale of choice to offer just one option; in turn allowing them to increase sales of that product and reduce the production costs.
This comes at a time when consumers have also looked to move away from superstores, preferring little-and-often shops to better budget. There also seems to a reduction in customer loyalty as consumers look for the best value.
Ultimately, the analysis is suggesting that the main weakness in marketing lies within this continued focus solely on the price. This Asda market strategies the main threat to the business, with ASDA still seeing a fall in sales, even with the recent buoyancy in UK retail sales.
However, there are potential opportunities for ASDA to diversify, expanding its marketing to cover issues within sustainability and UK produce; improving the ethics when it comes to food sourcing, and issues such as food security and locality .
With this, there is the expectation that the retailer may need to diversify, essentially look to attract more customers back to its stores.
Given marketing campaigns undertaken by the business, it would appear that ASDA has segmented the market; looking to appeal to those families of lower incomes. Its focus on being the cheapest is indicative of its primary target market.
Because of this, the business has become somewhat specialised on this business model, a focus on low-cost, which in turn could impede quality.
It has positioned itself in the low-cost end of the market, however given new entrants and intensified competition, is now finding it hard to compete and develop with new competition Peter, . The business model helped ASDA over the years of recession given constrained consumer income, however as economic conditions have improved, consumers have essentially traded-up.
With this, ASDA may feel that its business is currently positioned to narrow, targeting a consumer base which is shrinking which competition is increasing. There are two ways in which the retailer can broaden its consumer base, either through changes to marketing which will target a new market, or by differentiating the product to appeal to a broader base of consumers, noted in Armstrong et al .
To do this, the retailer has a number of actions: ASDA will move to focus on local; putting its focus on supplying more UK produce in-stores, having dedicated aisles in superstores to local producers.
The benefit here will not only be from higher sales of these goods, put also of the positive PR which could arise through supporting local farmers, and local communities.
This is essentially classed as differentiation; the retailer will be introducing new products to do so. ASDA will also look to introduce convenience aisles into superstores. This can be marketed by ASDA to target these specific customers. Budget This section will now discuss the budget for such a change in strategy.
The main costs to the business will be seen as the marketing. When it comes to introducing the new products, the costs may be more down to developing the local links, with the suppliers themselves bearing the costs associated with producing the goods.
Rather than a major financial cost, the introduction of more local products may be more time consuming for ASDA, given that they will need to ensure that the new products are in-keeping with the goals of the business, both in terms of pricing and quality Ferrell, .
While this would involve a higher cost than say digital marketing opportunities, it would be hoped that print advertisements and TV commercial will draw more attention, and so inform more customers. However, digital marketing could also be used, especially when it comes to advertisements through social media, and targeted banner ads which can be used online.
Control Control remains an important consideration, both in terms of ensuring a level of consistency in the marketing message as well as also monitoring the return on investment hereafter ROI.
Too much of change may lead to current customers becoming detached with the business and its values. Control will also come with ROI. Essentially, all businesses need to ensure that their marketing spend is generating business. New, digital marketing allows businesses to track this, with businesses able to use tools such as Google Analytics to view web traffic etc.
However, if ASDA move forward with a unified campaign, so changing all marketing to reflect a single message, then the business can understand the potential ROI of the campaign.The UK retail sector is highly competitive and ASDA has to act according to changing business environment and adopt new business strategies to improve its market position by .
a reflection about how ASDA has embraced e-business strategies in their marketing. Company Profile ASDA was started with the vision of the founding fathers to make it . Asda is planning thousands of redundancies or cuts to working hours despite the upturn in sales.
While Asda flagged its strategy of cutting prices on the managing director of market. ASDA's Board of Trustees has adopted the following goals for the strategic plan: Develop a standardized leadership training and transition program for chapter and district leaders. Evaluate current business model and develop strategies to achieve financial organizational sustainability.
Asda switches strategy to win back customers especially at a time when the market is clearly undergoing permanent and rapid structural change. The Financial Times and its .
In the company brought into the market “ASDA living” which was the first general store of the company. It sold a range of products including clothing, toys, home electronics, health products, homewares, as well as beauty products.