Asda has unique ability to provide a complete range of food products

ASDA was started with the vision of the founding fathers to make it a one stop shop for all the needs of the consumers. The company is one of the well-known supermarket chains located in the UK. It has on offer food, clothing as well as general merchandise items for its consumers. In 1999 the company came together with Wal-Mart.

Here we studied Asda which has a unique marketing system, channels of distribution, sales strategies etc. and a unique ability to provide a complete range of food products.

To meet the consumers around the world here we studied about the Asda milk powder through its marketing aspect how it makes the segmentation and targets the consumers and then provides the goods to the targeted customers we studies the different market strategies of the Milk powder that what are the methods that the company use to attract the customers towards its products .we discussed the whole economic technological cultural aspects of the company environment .During our research work we met the officials of the Asda and we are very thankful to them for providing us this valuable information

Introduction:

ASDA LOGO:

Asquith + Dairies = ASDA

The Asquith family were butchers based in Knottingley, West Yorkshire. In the 1920s, their rising aspirations meant they expanded their business to 7 butcher’s shops in the area. The sons, Peter and Fred would later become founding members of ASDA.

A group of West Riding Dairy Farmers, including the Stockdale family and Craven Dairies, joined together under the banner of Handel’s Dairy Farmers Ltd. This company diversified in 1949 to become the Associated Dairies and Farm Stores Ltd, with Arthur Stockdale as the Managing Director

It was in 1965 when the Asquith brothers joined together with Noel Stockdale, Arthur Stockdale’s son and Associated Dairies to form a new company.

ASquith + DAiries = ASDA

The 1970s saw ASDA add petrol stations to some of their stores.

In 1988 ASDA HQ moved from an old converted mill in Morley with its collection of seven other sites around Leeds to ASDA House, a specially designed office complex, on Great Wilson Street. The next year saw the foundation of a lasting and lucrative partnership with George Davies and the introduction of George clothing in 65 ASDA stores and the takeover of 61 Gateway stores.

The early nineties saw ASDA in trouble. The recovery and rebuilding encouraged colleague involvement and a return to ASDA’s original values. The renewal was led by a new C.E.O. Archie Norman. In 1999 ASDA was taken over by Wal-Mart and the next year saw the first ASDA Wal-Mart supercentre opened at Pathway. ASDA celebrated its 40th anniversary in 2005 having come a long way from its stores built in old cinemas and markets.

SWOT ANALYSIS

With the help of swot analysis we are able to analyse the strength and weakness of the organization. What is the policies of organization to overcome its weakness, how the use their strength to overcome their weakness. Can company use its policies to remove internal and external threats? We know that strength and weakness are internal and on the other hand side opportunities and threats are external issues.

.   http://content.answcdn.com/main/content/img/investopedia/swot.gif

Internal factors – The strengths and weaknesses internal to the organization.

External factors – The opportunities and threats presented by the external environment to the organization. 

Strengths:

SWOT analysis of Asda

Strengths

No doubt it’s a new world of competition and if we talk about UK it is a service base industry no doubt if we go 10 to 20 years behind it is industrial state then at that time there is not too much competition but now people are more price and quality conscious. But Asda strength lies on competatiable brand name, low price in market. People said that Asda is representing middle income people i agree with it but i like too much Asda. It have big store chain in all over the United Kingdom, and merge with global retailer e.g. china and Europe.

WEAKNESS AND OPPORTUNITES

To recover its weakness he avail opportunities in shape of merge or from strategic alliance with other international retailers. In this way company can increase its market share

Threats

In threats may include with big joint firms like TESCO, SAINSBUTRY, MORRISONS, they are strong competitors of company at hole.

PESTEL ANALYSIS OF ASDA

Political

Political condition is an important factor in organization, if political condition in a country is not good there is no progress in their economy. Company give to its competitor’s competitive salary and stay it minimum wages rate offer to its customers

Competition commission

Economic

Recession create a company to grow and get maximum profit in industry. If we tale about UK market now a recession days that’s why lot of people are unemployed. High interest rate cans create a problem for a country. New line of products for EU countries

Social

people social trend are change day by day, ageing population could increase to ASDA payment of pension to their employees. It target of a people ethnic groups, like slough/Southall.

Technological

Customer change his way of shopping they preferred online shopping, new product innovation, self-scanning system can made easy for customer to take product easily, chip and pin system is very helpful for customer.

Environmental

Now day’s companies more focus on eco-friendly environment, all the product they produce easily recycle, and these criteria helpful in happy environment.

Legal

Health and safety of workers is the main issue and there is no compromise on that. Company maintain its employee record up to date and keep secret, for health and safety there is hour’s restriction on their working time.

Identify the component parts of a marketing plan:

Pricing

when company introduce new thing he should keep in mind what price he introduce in market because in UK people are price conscious. Price is not to be too much any too low. Your price policy effects the long term operations of the company. Different kind of price policy can be used when company firm time enter in industry. Some companies use skimming, some use penetration policy now we further explain it further

A SKIMMING STRATEGY

by skimming we mean a company who can take advantage in industry he gain a maximum market share of company take advantage first entry, he set maximum price of their of their products, until there is no close competitors in market. i.e. in Pakistan Moblink use this polity and earn a great name and more in start of telecommunication days

A MARKET PENETRATION STRATEGY

low price at the start to end some companies use this to stay in market.

A COMPARABLE PRICING STRATEGY

if we are market leader then there is a price which set by market leader, we set a price which is in the mind of people

Promotion

we mean how the company can promote their product in industry two strategies are followed

PUSH STRATEGY

Utilize all the channel of distribution to launch product or service in market. In this strategy company

The PULL STRATEGY

Pull strategy directly connect with end user of product. Minimize the channel of distribution and directly connect with the customers for advertise their product or service. No doubt different channel of distribution can create a market in for the company that why we can’t ignore it.

There are many strategies for advertising an offering. Some of these include:

Product Comparison advertising

It’s mean when you offer something it should be differentiate your product to compare of competitors product or service otherwise how you can stay in market.

Product Benefits advertising

product benefits advertisement is helpful when Asda offer their product without comparison with other, the product benefit ad is good approach. This is also helpful when you offer new approach to solve user need and compare it old approaches is appropriate.

Product Family advertising

if company introduce a new product which already in market and increase its product line of their own product it is also helpful for the company to product family advertisement.

Corporate advertising

when company have variety of product to introduce in market and company audience in fairly broad then it’s better to promote business worldwide rather than in specific areas.

Distribution

Now the question is what kind of distribution media or ways Company use to attract more and more customers, what kind of policies they will use in future, what is their future policies.

One premise sales include sale of your offering with the help of new organization that visit the prospects facilities to make the sale of goods and services via internet, telephone or mail order contract. Another way include sale of your product with the help of whole sellers, middle man for distribution of your product and services. Other method of distribution is self-sale distribution method.

Full service retail sales involve the sloe of your product and service with the help of full service sale channel. No doubt when the company make their strategy, their strategy consist of 4ps of marketing product, price, place and promotion and thing is this how the company can manage these pillars of marketing to launch their product.

The Product/Service

you should be thoroughly familiar with the factors that establish products/services as strong contenders in the marketplace. Factors to consider include:

Whether some or all of the technology for the offering is proprietary to the enterprise.

The benefits the prospect will derive from use of the offering.

The extent to which the offering is differentiated from the competition.

The extent to which common introduction problems can be avoided such as lack of adherence to industry standards, unavailability of materials, poor quality control, regulatory problems and the inability to explain the benefits of the offering to the prospect.

The potential for product obsolescence as affected by the enterprise’s commitment to product development, the product’s proximity to physical limits, the on-going potential for product improvements, the ability of the enterprise to react to technological change and the likelihood of substitute solutions to the prospect’s needs.

Impact on customer’s business as measured by costs of trying out your offering, how quickly the customer can realize a return from their investment in your offering, how disruptive the introduction of your offering is to the customer’s operations and the costs to switch to your offering.

The complexity of your offering as measured by the existence of standard interfaces, difficulty of installation, number of options, requirement for support devices, training and technical support and the requirement for complementary product interface.

Production

in production areas the service which should be given is to be according to standard and habits of people in that area. Some factors which should be keep in mind are

Either all the technology which is to be introducing in business is it according to business needs.

How the company can remove the hurdles to avoid the risks and improve their weakness

Customer Services

What kind of customer service provide to customers of the company and if company strength on customer service effect on marketing success and show that company is more profitable in future and customers are more motivated.

Factors to consider in good customer service are

the availability of technical support to service your offering after it is purchased.

One or more factors that causes your customer support to stand out as unique in the eyes of the customer.

Easily accessibility of customer to service desk, no longer que.

Reputation of enterprise for good service of customer.

1.3 Identify the issue of risk with in a marketing plan

Analyse Marketing Risks

Now a days agriculture sector moves in global market and countries sale their product in different countries, currency exchange rate of different countries are different and its effect on international trade, and it’s also effect on international supply on US markets. These factors are out of control. Whatever the policy of company is strategy is according to their own risk.

Identify the nature and importance of various sources in the market that might cause you to earn lower profits.

Analysis the impact of different marketing strategies on your business and its effect on future policies of company

Find out the ways that you can choose to minimize the risk, how we can decrease the risk.

Analysis different kind of alternatives which can be helpful in future.

2.1 identify level of importance of each component of plan

Product:

The product has become synonymous with quality milk Asda commitment to product quality and food safety remains the core stone its business philosophy The company is also committed to local food legislation and actively participates in the revision process of current food standards with government authorities Milk powder is Backed by a very strong brand name, aggressive marketing and distribution plans, consistent quality and availability throughout the year, MILK powder has been extremely successful. It is available in pack size of 340g in all over the country ASDA Skimmed Milk Powder (340g)

Price:

Asda charges Low prices because the philosophy is that they are providing to the customer very useful featured products so the customers which require such useful quality for low prices are using to purchase the product.

Promotion:

Asda the most recent advertising campaign to Promote the product you can see on the Television, Newspapers, during the journey on tubes in the city .in which they are trying to say that in the their bakery products there are so many healthy ingredients like calcium, vitamin A .and so on .Asda spend approximately millions of pounds on the advertising campaign of the their products in a Year.

Place:

In the place section of the ASDA we will discuss the distributions channels and the company activities to provide its product available to the target customers Asda has a very effective distribution channels in which there is no concept of the wholesaler they directly provide the product to the consumers The product is available all over the country.

2.3 Produce a Marketing Plan:

Companies set their marketing plan according to existing culture of city, nation, and culture because people perception of product is very important. Whatever the plan is, it is necessary that it is beat your competitors.

Each organization has different goals and their marketing plan is according to these goals. Companies use their opportunities to overcome their weakness. Whatever the marketing plan is main aim is to be creating awareness in the mind of people regarding the product and service they produce.

Keep in mind that when companies made their marketing plan it is mean that marketing plan is written down strategies of company, what he want to do after success and failure of their marketing plan. When it is successful it means that plan is ok.

Some important key point which should always be in mind

PRICE

(i) Pricing Strategy

When company set its price, he should be more careful about their decision. Cana the price they set it will be according the perception of people. If price is too much and quality is lot it is too much chance of product fail. That’s why ASDA products price are not too much expensive.

Price policy against competitors

When customer purchase product from ASDA they think and compare its price to its competitors, because in UK people usually done a window shopping in different malls. If company price is too much low people thing that there is no quality, that’s why in UK ASDA represent Middlesex people and upper upper income group people not like ASDA

3.1 Discuss how the plane support s strategic objectives

The main purpose of Asda is to be to offer low price and good quality product and service to their customers, but now the question is this how it can possible, what kind of policy is helpful for the company, one way is this that reduce the cost to recycling their waste, packaging of their product into well and good ways and supporting voluntary service.

Product market expansion grid

If we check Asda Milk powder on product Market Expansion grid than we can easily find out That Asda is using Market penetration and Product Development strategies and the reason is that products were a total new concept in existing market like tea whitener, two minute noodles, UHT milk that is purely concentrated on product development Asda has a very well established R&D department Which continuously try to improve the Quality of the existing product and make it possible to provide the better customer value and satisfaction

We can check the market penetration strategies of the Asda milk powder like the authorities are making so much promotional efforts to increase the sales volume of current product in the current market segments

Market penetration Product Development

Market Development Diversification Existing product New product

Existing Market

New product

3.2 Outline an approach to gain agreement for the marketing plan.

Asda the Company has benefited from the spectacular development of its activities in the milk district sales of finished goods UHT treated milk, yogurt, and milk powders infant formula to meet the demands of the large food market that UK offered, Asda Milk powder reorganized and reinforced the production of existing brands and gave shape to new production lines.

Asda Milk powder have realized in the market for long lasting UHT milk had big potential for the future especially in the bigger towns and cities. So they introduced Milk powder for that targeted market The Company’s strategy is guided by several fundamental principles. Asda existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential is never sacrificed for short-term performance. The Company’s priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives that’s why Milk powder is now so popular all over the country and its sales are growing day by day.

ASSESMENT CRITERIA:

Show the marketing plan supports strategic objectives.

Effect of company strategies on market plan

Important part of market plan

What king of risk that company face in market plan

2.0 build a strong market plan

2.1 importance of each part of market plan

2.2 identify mitigation strategies for high risk components of the plan.

2.3 Produce a marketing plan.

3.0 can market plan support strategic objectives.

3.1 Discuss how the plane support s strategic objectives

3.2 outline of market plan to take market agreement.