Marketing Strategy for Asda

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Business overview

Asda is a retailing store which is a subsidiary of Wal-Mart. The retail store is based in the United Kingdom and is among the largest retail store in the United Kingdom. The United Kingdom retail business is one of the largest lucrative businesses if you take an example of TESCO and Salisbury. However, in the United Kingdom where ASDA is doing business as many competitors, suppliers’ consumers and agencies regulating the business. The market is regulated by a commission which ensures there is fair competition (Terry Kirby, 2006).

The company has taken aggressive marketing of the products in stiff environment. Through diversification of products it offers ensures that it can tap different markets and different consumers. Diversion of the branches globally ensures that the company is able to increase its customer’s base. The company has also taken up online marketing of its products hence making the company to be at the edge of other companies (Reynolds J, 1997).

ASDA is among the top retail supermarket and they have been in the market for sometime and they understand the UK market very well. The market in the UK is growing and a retail giant like ASDA or Wal-Mart will find success on their way if they take necessary step to ensure they have a good supply relationship and good business relationship.

Asda vision and mission statement

Asda has a mission and vision statement whereby their service is based on the philosophy that is directed towards satisfying customer needs. The company mission and vision statement ensure that a suitable model for conducting business is such a way that there is less negative impact for future generations.

SWOT analysis of Asda

SWOT analysis is a strategic tool that is used to determine the strength, weakness, opportunity and threat a company faces in the market (Reynolds J, 1997).

Strength of Asda:-The Company enjoys the strength and force of many branches. This puts it at a very strong strategic position to be in a competitive environment as the branches are spread through different towns and hence tapping a wide market for its products. This put it at an advantageous position compared to other companies. The company offers a diversification of products and services. The wide range of business offered by the company make it a great company as the customers have a chance of enjoying the different services and products offered by the company. Through offering products that are environment friendly enable the company to be one of the most environmental sensitive and hence be recognized as the most ethical and environment friendly company (Terry Kirby, 2006).

Weakness of Asda: – The company has tried as much as possible to reduce weakness. The problem is that some of its services is the need of use of machines in serving customers.

Opportunity:-One of the great opportunities the company enjoys is that it has widespread branches thought the country. Due to this, the company has a wide market. The products offered by the company are cheap and cost effective products and service. Due to this, the company has an advantage of cost compared to other company whose products are costly.

Threats:-There is the emergence of many big competitors who are giving Asda stiff competition in the market in offering the same products. For TESCO is providing this company great competition as it offers the same products and other services as the company and hence there is a scramble for the market.

Market Research

From research carried out, we find that there is a marketing gap in the retail business in the UK. The people in the UK want a supermarket that will deliver services to them and introduce new ideas in retail. There are many complains in relation to current trading such as protest for supermarkets not taking, environmental conservation serious as well as how competition is handled in this country. TESCO a well known giant has received in the past complaints against them of fighting competition. Farmers and other suppliers are starting to take a blind eye against major supermarkets and therefore it is up to Asda to position them in a way that they recover the lost ground (Terry Kirby, 2006).

Through the market survey carried out to establish the gap existing that will be filled by the new branch of Asda that is body lotion and hair products, we found out that our customers were in dire need of a store that will make a difference. The research involved a direct interview to our current customers and prospective customers for new exciting stores. We also carried out research from the competitors customers in order to understand how store will be viewed by the customers. We have carried out a market test to ascertain how the store is going to perform in the market (Graham, J.A., 2000).

The interview carried out to our prospective and existing customers for store was meant to create awareness to our existing customers of the existence of the store to be introduced into the market (Hines, T. and Bruce, M. 2007).

Most retail stores in the UK have started moving out of the country for international expansion especially to china and India where the economy have been performing well unlike other countries which has been like world financial crisis. This looks like the future direction for most retail businesses in the UK. The other option available for retail business in United Kingdom is to streamline operations to ensure better customer care and services and implementation of online shopping where customer shop online and goods are delivered at their doorstep. This is a way to going the current competitive environment where giants are competing for the markets. This trend will give way to more advanced and sophisticated methods of marketing products enhancing performance and efficiency, cutting down costs, raising customers fulfillment and controlling long term supply positioning for the businesses. The real time retailing which may be the direction Wal-Mart may take will be available to all residents within a certain radius to ensure there is success. Network connectivity among all Wal-Mart stores which is connected to internet will be accessible by customers. A customer may order a product available in a certain store and deliver within its environment however if a customer order in the United States and the product is not available the customer should be informed it is out of stock in stalls in his environs and the time that it will take to deliver the goods if it is as far as United States. This system will improve competence in the performance and attract more customers especially those who do not have time to go out shopping (Graham, J.A. 2000).

Target Market

The main target market consists of all people regardless of age educated and uneducated, men and women, with a conscience regarding environmental responsibility, a high regard for their personal health, and a love of the outdoors. They live in suburban bands around the nation’s cities, in apartments and condos, and are typically employed in white-collar settings. With annual earnings between £45,000 and £55,000, they can afford to pay a premium shopping. To serve, this target market with little free time between careers and outdoor pursuits and offering convenient shopping.

Segmenting the market I into the areas of residence will only be for changing price for people living in rural areas and those in towns, for this two categories of people we shall have price categorization because people in rural areas will consume the products in small quantities and it is only the price that will influence them to go for the product. However people living in urban areas need to look good therefore the consumption of the products will be high thus a different price( Terry Kirby, 2006).

We shall segment the market into terms of income. I will also mention here that income is the main influencer in consumption of any product.

Competitor Analysis

There are many competitors of ASDA in UK market. This competitors include; TESCO, Salisbury, Marks and Spencer, Waitrose and many others. However the above mentioned are the largest supermarkets of competitors of Asda in UK.

Each of these competitors has various services that are unique to each except the products they offer. For example TESCO is offering personal financial services within their stores this gives them a competitive edge against Asda. For ASDA to be able to deal with this competition they should enter to these alliances or enter into this banking institution to provide financial services within its branches. They should also think of diversifying into financial sector this is a way of fighting competition within the UK.

Marks and Spencer another competitor has discovered a unique way of attracting a customer where a customer once he has come up with the packing paper bag he is refunded money or its used to pack his goods if he is making a purchase at a discount. This has enabled the company deal with corporate social responsibility in ensuring that the environment is clean. in order for ASDA to be able to deal with this form of competition they should come up with a strategy of ensuring that their customers come back with the packing bags that they have used and also they get a refund for bringing back the packing bag (Terry Kirby, 2006).

Differences in products and services of competitors

There is no much difference between the products and services that are offered by this company except the diversification of product offered in the market. Tesco is more diversified as compared to other competitors while the other competitors such as Salisbury and marks and Spencer have a unique after sales service where customers get a refund for coming back with the packing bag that was used. All the services this company offer include, groceries, clothing, home consumption, furniture, toys and now TESCO is in the banking sector and it is before time that most of them will end up with this services (Terry Kirby, 2006).

Marketing strategy

Product or service

A company is said to have control over the products, since it can adjust or modify all that concerns a product like its design, size color or package. These changes are always made with the customer’s desires at heart. All this depends on the branding strategies adapted by the company. A brand refers to the name, design or a symbol that is intended to identify and differentiate the products and services of a company with that of competitors. A brand is more than a physical product and also more of perception to the consumer mind. Companies are always get identified with some unique symbols and marks. Brands include logos which are very specific in the given companies. The logos must also have detailed and unique color coding and fonts. The company signs are to communicate particular information to do with the goods and services offered and also values. The key objective of branding is to create a relationship of trust. The brand, and “branding” and brand equity are important components of culture and the economy.

Asda is one of the unique brand name in UK retail industry in that it contains diversity of goods that are offered in the market. It contains and an assortment of brands in food and non-food products. Asda also offers many varieties of goods in the market. Asda is a company that has at the moment worked so had to offer almost all varieties of all clothing, Home wares, furniture, electrical, toys, sports and leisure and gifts and jewelry in any outlet in the market (Reynolds J, 1997).

Product diversification has been enhanced, and thus the great competitor in the market. There was a concern that complication of the failure to maintain the variety but due prudent stock management as well vertical integration ensured proper inventory levels and warehousing as well as customer satisfaction is maintained.

The main cloth products of the retail include men’s clothe, women’s wears and kids wears. Men’s wears include belts briefcases clothing cufflinks and tie clips shirt dresses, jewelry, shoes, swimming kit, under wears wallet sun glasses, watch and many others. Women clothes include belts, clothing, handbags, purses, accessories, jewelry shoes, underwear sunglasses, swimming kid, wallets, watches, and many others. The kids wears includes, toys, cloths, accessories, belts, shoes, swim wears, watches and many others. These products, are designed to cover all market segments of almost all income levels and the form of packaging that the product enjoys give the customer a motivation to come back to the company to buy the product.

The home wares being sold by this store include fridges, electronics, utensils and many other this also covers all segments of the market. They also have furniture both for the homes and offices.


The company has control over the products because it can adjust its discounts and pricing policies. Pricing based on consumption survey seemed to be like the ideal price for products in the retail shops. Price is determined by adding cost of producing one unit of an item plus what the company desires to get as a contribution margin.

A well chosen price should attempt to achieve the financial goals of the company, fit the realities of the market place and support a product’s positioning and be consistent with the other variables in the marketing mix. Generally, the type of distribution channel used, the type of promotions used, and the quality of the product influence price.

One of the goals of Asda is to use value pricing in order to set a fair price level for their marketing mix that will give the target market superior value through convenience, speed, taste assurance, and variety. As far as the marketing materials are concerned, a flexible pricing policy is suitable at the point-of-sale displays to entice customers to purchase the at retail. The price of cloths £1 to £32 while for foods will be all prices.


A company is able to control distribution activities by the way of using appropriate marketing channel to distribute its products. ASDA is a Wal-mart subsidiary that provides all the named varieties of products to customers in UK. In order to have effective exploration of sales, it is important that proper networking is done before sales can be effected. Each retail outlet therefore has set in linkages to help them. Asda has a very vigorous marketing team such that they have so much penetrated into the market. The good services that they offer have also given them good reputation in the industry. Their distribution team is doing so well and has also contributed to their success into the UK market.

Asda faces major problems in the market. Apart from competition that is very stiff, the company also lacks efficient ways of distribution in others of Europe. This is because its distribution channel is very poor. The management has with time employed other means of performing sales and one major way that is used is called e-commerce. They are currently in the almost major towns in the UK among the leading industry players.


The marketers of the company are able to control promotional activities of the organization by selecting an appropriate to use depending on the different situation and also by selecting an appropriate slogan to use for different market segment. Various ways of succeeding in sales have been employed by these companies. One major style that does really well is the use of discounts. Other means exist some of which entail giving free gifts like sweets or other related groceries. Other related packages that work to benefit both the client and the business is the free delivery of goods whenever a client buy goods above some value. This works to bring more sales to the company and also to reduce the cost on the side of the client.

Strength of Asda’s promotional strategy is through partnership with five different other stores. This gives provision for offering a wide variety of coffees and teas in the at home market.

Asda will entails the use of marketing campaign awareness so as to promote the products and services of the company, hence at he launch of the new brand will need ‘bang ideas’ to be supported realistically. The company to convey the mission statement will be in three fold i.e. the message used to target the market will be help in fulfilling in the customers need. This message will be conveyed in the posters, catalogue and in the website. The company will target to advertise in magazines, hence the company will place an advert on these magazines. There will advertisements in the website the target market frequently access. Through the use of other promotional tools i.e. public relations will also engage the company to sponsor some of projects within local community.

Promotion budget

Activity Amount
Advertising development with advertising agency 6,000
Brand and logo development 4,000
Logo and Ad Design Work 2,000
Website Development for online market 2,000
Advertisements in local magazines (monthly $1,000) 12,000
Posters 1000
Radio and TV advertising 1,500
Public relations 10,000
Direct marketing 2,500
Sales promotion t-shirts, banners, caps 4,000
Stationery and miscellaneous 1,000
Total promotion Budget 46,000

The success of any product depends on its brand identity and brand identity means that a product is easily identified. Individuals have their own personal identity depending on their name, the way they look, their voice and personality (Mitchell, 1993). Likewise, products need to have a brand identity, to differentiate it from other similar products in the market. The marketing tools that are used in the process of brand identity creation are band name, packaging, advertising and promotion. Once the identity is established it will remain in the public mind for a long time due to the building of an emotional association with the product. Moreover, for any advertising to be effective it needed to be attention grabbing and unique. On 2003, the advertising campaign was launched with humorous cartoon advertising. The cartoons depicted people in various situations enjoying shopping at Asda. This cartoon was considered to be a break from the real world into the humorous world of cartoon figures. It was thought to be capable of reaching out to a wide range of age groups with humor that is generally universal in nature. Moreover, the use of humorous situations in the cartoons suggested ‘enjoy ability’ with Asda. Cartoons tend to be attention grabbers and moreover the advertisement was unique and innovative. The cartoon campaign was launched through television, press and posters and further strengthened through the packaging offered.


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