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Marketing Planning Record For Asda Marketing Essay

  1. Strategic Marketing Planning Process
  2. 2. 1 McDonald's Marketing Planning
  3. Figure 1: Malcolm McDonald Marketing Planning Process
  1. Table 1: Malcolm McDonald's Marketing Planning Process
  2. 2. 2 Justification of Marketing Planning Process
  3. Table 2: Activities and justification of the Marketing Planning Process
  4. 2. 3 Tools and Techniques
  5. 2. 3. 1 SWOT Analysis
  6. Figure 2: SWOT Analysis
  7. 2. 3. 2 Porter's 5 makes analysis
  8. Figure 3: Porter's Five Makes Diagram
  9. 2. 3. 3 The Ansoff's Matrix
  10. Figure 4: Ansoff's Matrix
  11. 2. 3. 4 Product Life Routine analysis
  12. Figure 5: Product Life Cycle
  13. 2. 3. 5 Infestation analysis
  14. Figure 6: PESTLE Research Framework
  15. Strategic Options
  16. 3. 1 Market Penetration Strategy
  17. Table 3: Market Penetration Strategy
  18. Strategy Option
  19. Probable Outcome
  20. Advantages
  21. Disadvantages
  22. 3. 2 Specific niche market Strategy
  23. Figure7: Niche Market Strategy (Targeted Customer) source: yahoo images
  24. Table 4: Niche Marketing Strategy
  25. Strategy Option
  26. Probable Outcome
  27. Advantages
  28. Example:
  29. Disadvantages
  30. Example:
  31. Market Development strategy
  32. Table 5: Market Development strategy
  33. Strategy Option
  34. Probable Outcome
  35. Advantages
  36. Disadvantages
  37. 3. 4 Recommended Approach
  38. 3. 4. 1 SHORT-TERM Recommended Approach
  39. 3. 4. 2 Long Term Recommended Approach
  40. 3. 5 Reasons for rejecting the others
  41. Marketing Audit
  42. 4. 1 External Marketing Environment and Marketing Audit
  43. 4. 1. 1 Market Size/Show 2009
  44. Table 6: Market Size/Share 2009
  45. Source: ASDA publishes financial infromation.
  46. 4. 1. 2 Market Growth
  47. Graph 1: ASDA Performance vs. Market
  48. 4. 1. 3 GDP Development of UK
  49. 4. 3. 1 Sales Data
  50. Source: Euromonitor Statement, 2009
  51. 4. 1. 5 PORTER'S Five Forces
  53. SUPLIER Electric power:
  54. BUYER Electric power:
  55. RIVALRY:
  57. 4. 2 PESTEL Analysis
  58. Table 7: PESTEL Analysis
  59. Political
  60. Economic
  61. Social
  62. Technological
  63. Environmental
  64. Legal
  65. 4. 3 Internal Marketing Environment and Marketing Audit
  66. 4. 3. 1 Performance/Expansion of ASDA (2005-2009)
  67. 4. 3. 2 Market Budget Data
  68. Table 9: Marketing Budget
  69. Source: ASDA Financial Assertions (2009)
  70. 4. 3. 3 SWOT Examination:
  71. SWOT analysis works as a fundamental part of any marketing plan as it decides the strengths, weaknesses, opportunities and dangers for the organization. A business plan its marketing strategy by considering what advantages it have over its competitors and what should be advanced to get over its weaknesses whenever you can.
  72. Table 10: SWOT Analysis
  73. Strengths
  74. Weaknesses
  75. 2nd in super market segments in UK
  76. Has strong brand image
  77. 2nd biggest market talk about in UK
  78. Products are cheap
  79. Providing healthy and fresh food
  80. Peoples trustworthy
  81. No small shops where everyone can approach
  82. Always working with bigger stores which costs a lot
  83. No proper design for recycling which contributes to huge wastage of money
  84. Opportunities
  85. Threats
  86. Have connection with international expansion, so that it can use it to explore new emerging markets.
  87. Data platform of customers could be utilized to generate new business
  88. Reliable to move in virtually any business
  89. Rivalry supermarkets are biggest danger.
  90. Decreasing prices affects profits
  91. Not available in every parts of country.
  92. Others supermarkets are not up to now in competition of market share.
  94. Figure 8: BCG share matrix (image taken from google images)
  95. 4. 3. 5 ANSOFF MATRIX:
  96. Table 11: Ansoff Matrix for ASDA
  100. Value chain
  101. Insurance
  102. Mobile telephone services
  103. Discounts brands
  104. Cash Again (short term loan)
  105. Halal beef and food
  106. Expansion in non-food segment
  107. Mobile wide band
  108. Club credit card introduction
  109. Mobile phones
  110. Cooked halal meat and food
  112. International expansion
  113. New market segment
  114. Restaurants
  115. Diversifying its market in a fresh way
  116. Banks
  117. Mortgages
  118. Housing societies
  119. 4. 4 Key Conclusions of the Marketing Audit
  120. 4. 5 Examination of potential responses to the changes identified
  121. 4. 6 How Non-Marketing Departments should change over 3 years
  122. 1st year plan:
  123. 2nd yr plan:
  124. 3rd year plan:
  125. 1st calendar year plan:
  126. 2nd season plan:
  127. 3rd calendar year plan:
  128. 1st calendar year plan:
  129. 2nd yr plan:
  130. 3rd time plan:

This statement has been ready for ASDA Plc by Usman Khaliq of Business Contractors Consultants. Business Contractors Consultants has been commissioned to create a written report that considers the theoretical and useful issues of marketing for ASDA Plc. The survey investigates ASDA Plc Company's market and applies recognized theoretical marketing models.

The survey addresses three key areas

A suitable strategic marketing planning process for ASDA Plc

Describing and Justifying the actions that would happen at each stage

Explanation and types of tools and techniques that are highly relevant to ASDAPLC's marketing plan

Three marketing strategy options that ASDA PLC could realistically pursue

Estimation of the possible outcomes

A information of the advantages and disadvantages of every option

A marketing audit for the organisation

Carries out a marketing audit for ASDA Plc and gives details of changes developing in the external environment.

Analyse how ASDA could react to the changes identified and give reasonable marketing objectives that consider could be achieved within three years.

State how regions of the organisation that are not part of the marketing division should conform over a period of 3 years to be able to meet up with the marketing objectives as specified.

Strategic Marketing Planning Process

The preferred Marketing Planning Process for this record is Malcolm McDonald's marketing planning process.

2. 1 McDonald's Marketing Planning

Malcolm McDonald marketing planning process has 10 steps.

Figure 1: Malcolm McDonald Marketing Planning Process

The 10 steps of McDonald Planning Process are given below:

Table 1: Malcolm McDonald's Marketing Planning Process



Stage 1 Mission

To make employees encouraged and present them overview about the business and its aims and goals, mission statement is vital. It gives course of what the business is going to do and how it'll get it done. The mission assertion provides guide of actions of the business, draw out its overall goal, provide a sense of direction, and guide decision-making. It also provides the frame be employed by company's strategic decision.

Stage 2 Corporate and business Objectives

Mission statement details overall targets of the company but corporate objectives describe the actions that may be taken up to successful the objective statement. Aims are those ends that the business seeks to achieve by its life and procedure. Organizations are goal attainment devices.

Stage 3

Marketing Audit

To know the internal and exterior environment of the organization marketing audit is essential. It provides information about the inner environment; employees' income, customer satisfaction, and exterior environment; market share, politics situation.

Stage 4 SWOT Analysis

Company's internal talents, weaknesses, opportunities, and dangers come out by SWOT research. It helps the company to determine the required activities to contend with the challengers, increasing profit percentage and available resources.

Stage 5 Assumption

Assumption is considered to find out the potency of the marketing plan. It can help the business select monitoring and evaluating process about the marketing activities.

Stage 6 Marketing Objectives and Strategies

Marketing goals makes strategies for marketing activities and marketing strategies is all about how the activities are to be done in order to successful the business enterprise.

Stage 7 Estimate Expected Results

It is a monitoring and assessing stage that is applicable judgement and research of marketing activities to attain business success.

Stage 8 Identify Alternative Strategies and Mixes

Business needs to find out the alternative plan as support to the present strategies. Alternative marketing plan and blend gives the company power to operate its business if its fail with the life marketing plan.

Stage 9 Budget

Budget gives important information about the price of the strategies and implementation. Budget also helps the companies find out the choice ways if present activities review the budget.

Stage 10 1st Calendar year Detailed Execution Programme

To implement the very first time marketing activities, marketing planning processes gives one year detailed marketing plan.

2. 2 Justification of Marketing Planning Process

The justification level tells about the actions and their justification of effectiveness of marketing planning functions.

Table 2: Activities and justification of the Marketing Planning Process




Stage 1 Mission

Board of directors and executives employees make quest state for the company. It may are the objectives of the business its future quest etc.

Mission statement is vital for the company to make employees more clear about the company's goals and goals. Without mission affirmation no one is aware where they need to go and what they need to do.

Stage 2 Corporate Objectives

Corporate objectives chose the company's profit margin, increasing brand images and tactical implementation.

Mission statement gives an overview about company's objectives and goals. Commercial goals give specific way and summary about the business's objectives and vision; e. g. it selects the revenue merging for the company.

Stage 3

Marketing Audit

Marketing audit gather information about the inner environment and external environment of the company.

It collects information about the marketplace growth; accumulate information client satisfaction, financial analysis.

Marketing audit offers information about the external environment and the factors that affect the business's activities. Such as for example political situation of the business provides information about federal government new guidelines and regulation and company can determine its new marketing plan.

Stage 4

SWOT Analyses

Analyse sources and business competitive advantages.

Experiment of information about new entrees.

Market research for new opportunities.

Making correction about present strategies and activities.

Without SWOT examination company never recognizes its internal strengths weaknesses, opportunities, and risks.

Stage 5


Forecasting about the result of the activities taken by marketing plan.

Fore casting about expected final result.

Assumption helps the company calls for budget about marketing activates. It gives information about the success of the marketing plan.

Stage 6 Marketing goals and strategies

Selecting marketing objectives by analyse target market.

Select the means of implementing the targets.

Select necessary activities.

Helps to recognize the suitable technique for the present market and helps to success the business enterprise.

Stages 7

Estimate expected result

Taking general market trends, analysis of client satisfaction to discover the effectiveness of the marketing strategy

Help to make changes of strategy if necessary. Helps to determine alternative technique to minimise cost.

Stage 8

Identify Alternative Ideas and mix

Make ready alternative plan to operate the activities smoothly.

Take market research and evaluate previous experiences.

Analyse any failing background of marketing plan.

Alternative marketing plan and blend make the business effective it fails to operate in difficult situation. It makes the company modify with changing environment.

Stage 9 Budget

Analysis of prior record and make correction. Find out the price related to marketing activities.

Budget helps the company to learn about its income and loses. Really helps to make changes more expensive activities.

STAGE 10 1st Time Plan.

Crete clear 1st yr operation plan by research of market condition, cost related to the actions, making proposal of activities, research of available resources and so forth.

It is very useful for taking at least one year implementation plan and make the program successful. Without 1st 12 months execution plan companies cannot find the potency of their activities.

2. 3 Tools and Techniques

Five tools and techniques are determined that are relevant to ASDA's marketing plan. This may be carried out under the next:

2. 3. 1 SWOT Analysis

SWOT research is a marketing tool and techniques that help the company find out its strengths, weaknesses, opportunities, and hazards. Companies usually uses this tools when its need to identify the existing market trends and company situation. It takes place when new decision is essential for the business. Pizza Hut uses SWOT examination to determine new technique to increase its sales in the tough economy time.

Figure 2: SWOT Analysis

2. 3. 2 Porter's 5 makes analysis

Porter's 5 makes examination is another marketing tools and techniques. Companies often takes Porter's five makes when it launching services. The fives talks about the bargaining electricity of the customer, threats of new entrants, dangers of swap products, competitive rivalry in a industry, bargaining ability of the suppliers. Pepsi coal company uses Porter's 5 causes models when it starting Pepsi Diet.

Figure 3: Porter's Five Makes Diagram

2. 3. 3 The Ansoff's Matrix

Ansoff's matrix is another marketing tool. Companies take Ansoff's matrix when it decided to extend its market. Ansoff's matrix has four aspects, market penetration, product development, market development, and diversification. It gives overview in what the company needs to do if it needs to increase its business activities. Such as for example, when Apple launches IPad they will use the Ansoff's matrix to help with the decision-making process.

Figure 4: Ansoff's Matrix

2. 3. 4 Product Life Routine analysis

The product development life cycle is other marketing tools that help the business measure the present condition of an existing product. It offers four steps; release, development, maturity and decrease. Each of the steps provides information about the profit percentage, market demand, the rivalry and the decreeing market demand.

Figure 5: Product Life Cycle

2. 3. 5 Infestation analysis

PESTEL analysis is a marketing tool that company uses in order make marketing audit and know about the external environment. PEST identifies as Political, Economical, Friendly, and Technological. Coca-cola uses Infestation analysis when it lunches diet-coke. .

Figure 6: PESTLE Research Framework

Strategic Options

This part represents three marketing strategy with their advantages and disadvantages and probable outcome.

3. 1 Market Penetration Strategy

Table 3: Market Penetration Strategy

Strategy Option

Market penetration strategy could be useful for ASDA. As ASDA is operating with the cheapest prices in market, compare to its competitors. ASDA can increase their market talk about and sales earnings by implementing this strategy. This strategy works on more advertising and advertising of existing products.

For example. Airtel promoting its services to permeate in the Indian market.

Probable Outcome

Probable outcome of the strategy would be that ASDA can increase its market shares and you will be in a position to increase its sales earnings.

Market penetration strategy makes customer think about choice products as there are many option amiable and rival company may offer better products and more options.


Increase sales earnings.

Increase income.

Customers satisfaction

Customers loyalty

Would be helpful in widening business.


Needs extra expenses.

Tighter cover company.

Affects could be worse if rivals take the same strategy.

There is a large question mark if the marketplace penetration strategy works or not. If not loses are significant.

Sometimes makes the business more competitive if the rival company takes same strategy.

Some customer has negative reviews and they feel that penetration means poor product.

3. 2 Specific niche market Strategy

Figure7: Niche Market Strategy (Targeted Customer) source: yahoo images

Table 4: Niche Marketing Strategy

Strategy Option

"In practical area of interest marketing is the practice of dividing the marketplace into specialised areas that particular products are created. A niche market is one of these specialised areas. "

In area of interest marketing there are targeted customers for which products should be made. For even more reason of the topic strategy consider the example of an ergonomic couch, a couch specially suitable for the patients experiencing lower back pain. The market because of this product is to advertise the merchandise to aided living centres for elderly. Another market for the ergonomic seat chiropractors who could guide this chair because of their patients. Therefore to advertise the ergonomic chair in general/broader market will never be a good strategy of marketing somewhat immediately advertise it to specific regions/markets where it fits in perfectly.

Another exemplory case of niche marketing strategy, consider the firms like Ferrari, Rolls Royce etc. These businesses make customise cars according to the specs and requirements of their particular customers and specifically method of elite/rich course people who are able their products. For an example Ferrari makes solution one (F1) cars for the racers nonetheless they especially designs car for their racer Michael Schumacher. Likewise Rolls Royce makes car based on the features and requirements of these customers individually.

Probable Outcome

Probable outcome because of this strategy is the fact ASDA will have high profit margin rather than having more sales revenue. ASDA could separate its customers into volume of groups owned by certain categories and then could mould its product corresponding their requirements, resulting in attracting specific customers and increasing its profit and business eventually.


Approach to targeted customers could effectively reduce the cost.

Low cost associated with marketing process.

It is easy for the business to identify the mark market and make them in contact.


If ASDA starts a halal food restaurant in future. It is going to appeal to the Muslim community towards it and ASDA restaurant can be popular in Muslim community. Here the niche market for the ASDA will be Muslim community.


Niche marketplaces are smaller in sizes in conditions of having targeted variety of customers therefore niche markets get saturated in short durations of your energy.

Potential for sales development and for the economies of size is very limited in niche markets.

The marketplace is really small, there for the price of the products often high because of low range production.


If ASDA makes customised chairs for the patients suffering from lower backache problems. It'll attract the individuals having the backache problem but on an average the number of men and women having the problem of backache is very less when compared with normal folks. ASDA will gain the gain this product initially but soon the market for this can be saturated as there are just few individuals who require this product. Therefore the business duration because of this product will be very less and the expense of production per product can be high.

Market Development strategy

Table 5: Market Development strategy

Strategy Option

Market development strategy can help ASDA in becoming no1 store in UK. As ASDA is functioning with very big stores. This plan would require ASDA to open up convenient small stores in several places so that everyone can access easily. In a way ASDA will increase customer's commitment.

Probable Outcome

This strategy would lead ASDA to become easiest store in UK working from each and every place from UK. This can help out to increase profit margins for ASDA and more job opportunities for folks. Furthermore it can be applied internationally.


Increase customers trust

Increase profit margins due to more stores

Increase market share

Can be used globally

Company get competitive advantages that make barriers for new entrants.

Increase market share and make the company more profitable.

Create strong brand images.


Needs a great deal of investment

Local business could be threat

The inability of the products causes significant losses for the company.

Requires advanced proper plan and related to high risk of success.

The target market is mass and the necessity huge work to attract the mark market.

3. 4 Recommended Approach

3. 4. 1 SHORT-TERM Recommended Approach

The strategy of market penetration is highly recommended for ASDA Plc because ASDA offers products to all or any general customers. ASDA has major opponents in UK. ASDA needs to get its customer by advertising, selling products with low prices and offer customer better product and services. For the marketing purpose the upcoming athletics event, Olympics 2012, is a great chance for ASDA to promote its business by advertising on Television channels, papers, in stadiums etc. Furthermore ASDA is been bought out by Wal-Mart, a global company, therefore in future if ASDA would like to increase its business it'll be a helping hands for ASDA.

3. 4. 2 Long Term Recommended Approach

ASDA is currently having and opening big stores currently. For opening of new big stores ASDA require much big land for them. Due to huge buildings of ASDA stores these stores can be found wide apart whereas companies like TESCO and Sainsbury's etc emphasise on opening stores of small sizes but increasing their number of stores even in a little region. Because of this strategy by TESCO and Sainsbury's etc their stores are readily approachable by the individuals. ASDA should never give an wide open possibility to its competitors by emphasising on opening big stores. ASDA should give attention to beginning small stores and try to open stores that aren't very vast apart. This process by ASDA will appeals to more customers towards its smaller stores and will play a essential role in appealing to the customers of companies like TESCO and Sainsbury's etc towards itself.

3. 5 Reasons for rejecting the others

ASDA struggles to take market leaders strategy as it offers major opponents TESCO and Sainsbury. Moreover the market development strategy is not advised in a nutshell term for ASDA because this plan requires large numbers of small stores that will require huge workforce, investment, and it'll become more complicated to keep an eye on its network however ASDA has already been expanding its very and hyper marketplaces yearly constantly but also for long-term market development strategy is a key factor for its bussiness. Also the area of interest marketing approach is also not suitable for ASDA as ASDA has products for standard customers and ASDA usually will not offers products for a few targeted group of folks for which market marketing strategy is recommended.

Marketing Audit

Marketing audit talks about both exterior marketing environment and internal marketing environment.

4. 1 External Marketing Environment and Marketing Audit

4. 1. 1 Market Size/Show 2009

As of March 2009, Tesco has a 30. 4% share of the united kingdom grocery market while ASDA's share is 17. 1%, accompanied by Sainsbury's at 16. 1%, and Morrisons at 11. 2% yet others 25. 8%.

Table 6: Market Size/Share 2009

Source: ASDA publishes financial infromation.

The market share of ASDA demonstrates it is followed by the large market market leaders TESCO. But it has competitive market show as the variations are not too much. ASDA has chances to increase its market share by taking suitable strategy.

4. 1. 2 Market Growth

The graph below depicts the trend of market expansion during the last few years the following:

Graph 1: ASDA Performance vs. Market

The graph evidently demonstrates the development of market development is increasing every year constantly, which is a good signal for future.

4. 1. 3 GDP Development of UK

GDP expansion of UK of recent years is described below in the graph. Nevertheless the UK continues to be facing the downturn phase and the period of 2008-2009 was the most detrimental for GDP development yet now the GDP growth has increased significantly in the period of 2009-2010. The versions in the GDP growth are plainly shown in the graph (Mintel, 2009) below:

4. 3. 1 Sales Data

Due to tough economy people are assigning more main concern to consume more at home than eating out which gives more opportunities for the grocery suppliers like ASDA to grow their business and increase their throughput (Guardian, 2010). The percentage of the overall customers spending on the food has more than doubled during the last half of decade which is obviously depicted by the stand below (Euromonitor, 2010):

Source: Euromonitor Statement, 2009

4. 1. 5 PORTER'S Five Forces

For the factors that firmly influence the business environment are modelled by the Porter. Porter called these major factors as Porter Five Forces. These five pushes are:


Due to reputation and working of food business there's always a potential threat of entering new competitors in this business. Although ASDA has strong brand image and customers are committed so there wouldn't normally be any problem.

SUPLIER Electric power:

The local organisations have limited choice of purchasing their goods from the neighborhood suppliers. Therefore suppliers provide an immense impact on deciding the speed for his or her goods. Organisations have to bargain with the suppliers, and this great buy is more in the favour of company alternatively to be natural.

BUYER Electric power:

The buyer has a high power of bargaining as compared to organization because the end product is manufactured purposefully to meet the buyers. Moreover buyers have more options of turning to other brands as the customers always want to get high quality product in low price.


Organizations have to handle an huge competition in market segments. There's a vigorous competition in the retail industry of food, grocery, etc which is majorly because of the price slicing strategies of the organizations to entice the clients towards them. Therefore ASDA must always consider the price trimming strategies of its rival organizations in determining the cost because of its products to be able to capture the marketplace because of its product.


The hazards of substitutes for ASDA are extremely much smaller than its competitors because ASDA always follow the pattern of introducing the good quality in as much less price as it could.

4. 2 PESTEL Analysis

Table 7: PESTEL Analysis



The Federal government has provided such insurance plan for work that strongly appreciates retailers to hire new employees having earnings from low and high both. Therefore by selecting new employees and by training them ASDA can give trouble to its rivals.

According to BBC Information in 2009 2009 there are 10 more countries in Eu marketed the trade between european and eastern Europe, which is could be a good indication for ASDA to make its business great in the complete Europe.

The new upsurge in the worthiness Added Taxes (VAT) will cause the prices to go up and eventually decrease the profit benefits.

Increasing rates of interest can also be a unsafe factor for the business.

Due to the credit crunch there are large numbers of peoples are unemployed and it can have a negative effect on the business enterprise of ASDA.

Recession is resulting in increase unemployment rate.

High inflation rate can also be an alarming factor for ASDA.

The slowdown in international food market and UK food market as well can vigorously influence the ASDA as ASDA is highly dependent on its food items.

Availability of line of products for the Asian and EU individuals.



Large influx of the EU citizens in the united kingdom requires extra accommodation, health and care.

An ageing people could lead to enhance the unwillingness to do work and rely on pensions.

People are becoming more brand mindful and favor to choose their respected brands only.

Consumers have become more health mindful and always look for a healthy diet.

Changing trends in the consumer's requirements and increase in the demand of prepared to use items.

Increasing demand in self-checkout systems by consumers is highly valued by ASDA.

Cash machines are installed within the store premises.

Enabling of online shopping facility made life easier.

Improved efficiency in retaining stocks by using the bar-coding or RF-ID tags.

Introduction of new product types (mobile phones, mp3 players, etc. ) in ASDA.

The new technology is beneficial for both consumers and vendors as it offers decrease to consumer, dependability and efficiency to stores.



More consciousness for the environmental issues has been disseminate among people.

Recycling is now become a common practical. For instance ASDA has its 'Bags for Life' ASDA recycles its hand bags alone to save the surroundings from pollution and motivates its customer to aid in conserving environment from pollution giving them new substitution carriers for the broken old luggage of ASDA.

To save energy is more required and it is the demand for the coming future. In future ASDA is likely to open up new stores that may use electricity which will be produced by solar energy.

Reduction in the dangerous carbon products influencing the surroundings becomes a primary goal to be achieved. In new stores ASDA cut down 40% of CO2 (carbon dioxide) and in existing stores ASDA reduced 21% of carbon emission.

ASDA is also taking its obligations to consider the procedures against all these environmental issues.

"THE MEALS Retailing Payment (FRC) advised an enforceable Code of Practice should be setup banning lots of the current techniques, such as requiring obligations from suppliers and changing agreed prices retrospectively or without notice (Mintel Statement, 2004)". With the result of this, the prices will be strong or uncertain that may affect the repute of ASDA.

Working hour limitations set by the UK government need to be implemented properly. No employee should be permitted to work more than the allowed time.

Health and safe practices standards set by the federal government have to be insured and maintain.

"The government's plans for monopoly controls and reduced amount of buyers' power can limit entrance to the sector with such adjustments as license requirements and restrictions on usage of recycleables (Mintel Record, 2004; Myers, 2004)". Because of these government's insurance policies ASDA can have only limited access to raw materials and hence cannot stock the raw materials above the allowed certain limits. Therefore even if the costs of some required raw materials decreases or the need of some particular raw materials rises, ASDA cannot get the required raw materials due to the limited access to recycleables.

Source: http://your. asda. com/sustainability-store-energy

4. 3 Internal Marketing Environment and Marketing Audit

4. 3. 1 Performance/Expansion of ASDA (2005-2009)

The progress data shows that ASDA Plc has increasing growth and they have potential market advantages. If ASDA may take ideal market strategy and attempts to extend its business it will do this. ASDA has declared to build vacancies for 7500 careers in 2011. Out of 7500 vacancies, around 3500 jobs will be for his or her new ASDA stores and 2400 personnel will be hired for his or her home shopping workforce. Market shares are constantly increasing yearly and ASDA is also extending their stores.

Source: http://your. asda. com/assets/attachments/10008/original/All_about_Asda. pdf

4. 3. 2 Market Budget Data

Table 9: Marketing Budget









Direct Mail

. 75


TV Advertising

1. 5

2. 5

Partner Programmes

2. 00



1204. 25

20. 5

Source: ASDA Financial Assertions (2009)

ASDA spend additional money in its marketing sectors in 2009 2009 than 2008. It demonstrates ASDA incising its marketing activities and making business widened. It'll be helpful in future because marketing of brands and products will play a essential role during olympics2012.

4. 3. 3 SWOT Examination:

SWOT analysis works as a fundamental part of any marketing plan as it decides the strengths, weaknesses, opportunities and dangers for the organization. A business plan its marketing strategy by considering what advantages it have over its competitors and what should be advanced to get over its weaknesses whenever you can.

Table 10: SWOT Analysis



2nd in super market segments in UK

Has strong brand image

2nd biggest market talk about in UK

Products are cheap

Providing healthy and fresh food

Peoples trustworthy

No small shops where everyone can approach

Always working with bigger stores which costs a lot

No proper design for recycling which contributes to huge wastage of money



Have connection with international expansion, so that it can use it to explore new emerging markets.

Data platform of customers could be utilized to generate new business

Reliable to move in virtually any business

Rivalry supermarkets are biggest danger.

Decreasing prices affects profits

Not available in every parts of country.

Others supermarkets are not up to now in competition of market share.

By doing the SWOT examination it can be clearly identified that what strengths ASDA have that must be taken in mind while designing its marketing strategies in future.


Figure 8: BCG share matrix (image taken from google images)

The Boston matrix details the four phases of the businesses/products in terms of their revenue and the market growth probable. It defines the four levels as a function of market development and market talk about.

Question Grades: This is the stage where in fact the businesses/products have high market expansion rate but having low market show. These businesses/products are capable to fully capture market but do not have enough resources to market them. The organization can adopt a promotion strategy for such products to increase their market share.

Dogs: These are the businesses/products having low market development rate and low market show as well. In the event the organizations see potential to grow in such products then they organize some promotional and marketing activities for these people.

Cash Cows: They are the low-growth businesses/products having relatively high market share. They are matured products that generate major revenue for the business plus they only require relatively really small investments in order to generate significant revenue that would lead them to be a celebrity product/business of the business.

Stars: These are the businesses/products having high expansion rate along with high market share. They are the major and income generators of the business. Initially these products require heavy purchases to capture the market and match the consumer's demand.

The business of ASDA comes into the category of Cash Cows as it offers high market share with relatively low market-growth.


The ANSOFF matrix represents the ASDA's present products and how ASDA can improvise in its business which consists of potential products at the moment and in the coming future. The four progress strategies for ASDA have been mentioned including the possibilities of diversifying the business of ASDA in various sectors are also reviewed in the matrix below.

Table 11: Ansoff Matrix for ASDA




Value chain


Mobile telephone services

Discounts brands

Cash Again (short term loan)

Halal beef and food

Expansion in non-food segment

Mobile wide band

Club credit card introduction

Mobile phones

Cooked halal meat and food


International expansion

New market segment


Diversifying its market in a fresh way



Housing societies

4. 4 Key Conclusions of the Marketing Audit

The marketing audit of ASDA plc implies that ASDA has increasing its market and it offers market stocks next to TESCO. If it can able to take suited business strategy it'll able to make competitive advantages and become leading supermarket in UK. GDP is also trying to recuperate from recession which is positive point for future of ASDA. ASDA will competitive market position within three to 5 years if it functions its business in a same ways. The GDP progress of UK is also exhibiting the positive signal for future and the shelling out for food by consumers is also increasing each year. They prefer to consume at home instead of eat away. The external audit demonstrates the growth of ASDA shares and expansion of business lately is impressive and this will be also ideal for its future expansion. But the change in life-style of UK people and consciousness about their healthy food choices is also challenging for the forthcoming years.

The swot research and the performance of ASDA with market performance in recent year's shows the nice potential in ASDA for future predicated on the performance of recent years. But the financial downturn and dangers of rivals will be still there. So ASDA need to be implementing a careful strategy which will help them to broaden their business in future. ASDA also need to re look on its online shopping services, if indeed they will ask for low delivery charge that will also plays a vital role to draw in more customers who choose to remain at home while do shopping on the internet.

4. 5 Examination of potential responses to the changes identified

ASDA has steady business market at present. In case there is changing environment ASDA will take the following steps:

ASDA expand its business internationally and start more stores in UK. As it is operate by WALMART group which can be an internationally famous and it'll be ideal for ASDA for future in an international enlargement of its business.

It will need more brand extension to appeal to customer. However on this ASDA is already working and increasing brands in to different categories.

It will take market penetration technique to make customer happy with various offers on their existing products. ASDA always focused on its prices and try to give offers and competitive prices.

In circumstance of drop market show ASDA will take research and development program to determine market trends and its own ideal strategies.

Government effort of offering financial and non-financial bonuses to the companies investing in the overall economy of UK is a superb advantage for ASDA because they are putting large assets in current economic climate of UK.

4. 6 How Non-Marketing Departments should change over 3 years

There are three main non marketing departments that can immensely influence marketing department are the following:

Finance office: Among the major departments within an business is the financing department. It is crucial to consider this department prior to making any strategies into action because it is the section that estimates the cover rest of the departments.

1st year plan:

In 1st calendar year finance department should diagnose and assess all the fees, competitor's performance, inflation rate, costs, exchange rate, profit percentage etc. The financing department should also tell other departments to introduce changes where it is essential.

2nd yr plan:

After evaluating first year's performance it will generate budget for 2nd year

It should Help in setting corporate targets for new time.

Should forecast next season sales targets and put into action any strategies if needed.

3rd year plan:

Announce the results for overall performance of earlier years

Evaluate and gain access to past strategies and accounts to produce practical cover next year

Should evaluate previous corporate objectives to include new objectives.

Examine performance for previous years

Produce necessary financing if necessary for 3rd 12 months.

Sales team: sales department have importance of its own. On this scenario all the described departments work strongly. More proficiently sales team will be working side by side with marketing team. For the increment in the sales level of the company both departments are sensible.

1st calendar year plan:

Introduce better customer services and versatility.

By improvisation with various essential techniques it can help in increasing sales.

Include talented personnel in their clubs to increase their sales

2nd season plan:

To improve customer service.

Efforts must be produced to boost the shares in market. Maybe it's done by appealing to the customers by providing them some special offers.

Sales focuses on must be arranged.

3rd calendar year plan:

Create environment for team working

Make environment of team problems and make an effort to achieve these challenges

Enhance customer service standards

HR team: It is the responsibility of the HR office to recruit and select the best personnel for the business and to educate them later on.

1st calendar year plan:

Recruit desired people focusing on their experience and inspiration.

Recruit people for all your departments.

Conduct the process for the original recruitment, select the best available folks focused on their works.

2nd yr plan:

Motivate staff giving them bonuses

Encourage those to work hard by putting in some targets.

Forecast the manpower/workforce required for the future.

Develop skilful employees for the organization

Organize a customer responses form.

3rd time plan:

Give performance awards to people who achieved good marks in previous yr targets.

Introduce more competitions.

Arrange activities and workshops to enhance the skills required for customer services.

Design and provide management development programmes for managers.

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