This is the range of products (goods and services) that the organisation offers to the marketplace. Decisions have to be made about quantities, timing, product variations, associated services, quality, style and even packaging and branding. Price policy: This is an important decision area because although it is a promotional tool in many respects, it is the main source of income to the organisation. If the prices are lowered for promotional purposes, the cash flow within the company, and its long-term profitability, could be seriously affected.
As with products there is normally a range of prices. These can vary according to the quantities bought, the importance of the customer, and the market segment. Pricing can be long-term (set at the level for sustained profit-making) and short-term (cut prices for tactical reasons, such as market penetration). Promotion policy: Promotion consists of a number of techniques, which create awareness of the products and persuade the potential customer to make the buying decision. It involves all communication with actual and potential customers. The techniques include advertising, branding, packaging, publicity/public relations, sales promotions and merchandising. Each differs from the others but all, or all of them thought relevant to a given situation, will be used to create a unified product image and an image for the organisation, the corporate identity.
Place policy: A business when marketing its marketing will ask a number of questions relating to place. It also follows into a long-term strategy, with a value for money, philosophy at the mid to premium end of the market. Boston matrix On the diagram below products are positioned on the diagram according to each one's share of the relevant market. The market themselves are also analysed for growth rates. On the left hand side it shows high values of the horizontal axis. The Matrix has unusually been seen this way. The base line shows the market share of a product relative to its major competitor. An example is the value, which indicates your product, has only one tenth of the market share of its leading competitor, whereas a value of 10 indicates a market share ten times more than its leading rival.
PEST You have to appreciate that marketing is the management of change. The adequate manager notices that changes are happening the good manager anticipates its market research: a good top-notch manager causes changes, leading the market into new areas. Pest is used as a mnemonic for an easier method to memorise the needs that go with each word from Pest. Political change, from one party to another in control a good example would be the rise in private healthcare and privatisations under Conservative governments.
Economic change, for example a recession, which creates, increased activity at the lower ends of product ranges. Rate of interest rises depressing business and causing redundancies and lower spending levels. Social changes involve changing attitudes and lifestyles. The increasing number of women going to work, a good example is the le to the need for timesaving products for home. Technological changes as we can see create new opportunities for new products and product improvements and of course new marketing techniques-the Internet, e-commerce.
Asda/Wal-mart A Corporate Profile Racial and gender discrimination Wal-Mart appears not to object to racial and gender discrimination practice in its stores, and this accounts for a considerable proportion of the many lawsuits brought against the company. A famous racial suit concerned the firing of a white woman who had a black boyfriend. The company is suspected of institutional racism. According to Bill Quinn Wal-Mart never develops its stores in predominantly minority areas.
Environmental policy Environmental issues are of concern to supermarkets now due to consumer pressure, but supermarkets create ever more complex PR strategies to make they appear 'green', often without actually changing their policies very much. On Asdas website it says: Our aim is to identify, monitor and reduce any direct negative effects we have on our environment through a process of continuous monitoring and improvement in the way we manage our day to day business operations. We also try to influence our colleagues, customers and suppliers as this can also help reduce the effect we have on the environment.
Petrol Prices: All major UK supermarkets now sell petrol, and as with everything else they sell, they are always in competition to sell it cheaper than anyone else. In September 2004 Asda was still managing to sell petrol cheaper than any other UK supermarket, in a continuation of its effort to bring price wars into every sector. Brain Washing Children The educational value of these programmes is highly questionable. For example the main slogan on Big Eat website calls for eating five times in a day, not the most useful health message. Also The Big Read and The Big Sum programs are disrupting schools' programs removing lessons to Asda stores.
Asda has had other Big programmes for kids, e.g. 'Big Healthy Body', 'a three-year programme to teach children about looking good, eating well and exercise…The Big Healthy Body scheme includes introducing children to unusual fruit and vegetables through 'trails' at Asda stores and an interactive website.' Environmental policy On Asdas website it says: Our aim is to identify, monitor and reduce any direct negative effects we have on our environment through a process of continuous monitoring and improvement in the way we manage our day to day business operations. We also try to influence our colleagues, customers and suppliers as this can also help reduce the effect we have on the environment.
What Asda is doing towards environmental policy? It then specifies a few things it will do, such as 'reducing greenhouse gas emissions from our stores and distributions centres' and 'minimising packaging from own-brand products.' This sounds pretty good, but it does not go into much detail about how it plans to achieve these goals. In 2001 Asda decided against an externally verified environmental management system. An Asda spokesperson added that 'getting a high environmental profile' was not one of Asdas key goals. This rather implies that Asdas environmental policy is a token gesture to make it looks good rather than a genuine effort to improve. If you are a large company on the scale of Asda Wal-Mart, and trying to get even larger, it is hard to be very environmentally friendly.
All major UK supermarkets now sell petrol, and as with everything else they sell, they are always in competition to sell it cheaper than anyone else. Cheap food cheats On Asdas website it says: We offer Britain's best value weekly shop with prices on average 10% lower than our main competitors. Is Asda really cheating? Since the merger, Asda has set off a price war in the UK by initiating the aggressive 'price-rollback' programme. In 1999 Asda claimed to have 'rolled back' the prices on 4000 products. In 2000 this was raised to 6000 and Wal-Mart said ï¿½105.5m had been 'invested' in Asdas price reductions during the six months to the end of July 2001. 'Since joining the Wal-Mart family in 1999 our sales growth has risen dramatically – and we have cut our prices by around ï¿½0.5 billion in total.'
Despite these campaign claims we still can find cheaper food in non-supermarket shops. This is especially true of fruit and vegetables. Most cheap food in supermarkets is in the form of 9p cans of beans and highly processed sliced bread. Most things that are good for you are still expensive. Lying in court In any case, Asdas 'roll back' price reductions are not always what they seem. In September 2001, Asda was fined 9000 for misleading customers over a discount promotion. They had done this by making price comparisons with figures over six months old. Prosecutor Miles Bennett argued that sometimes the prices in the roll back promotion never actually got any lower:
'The roll back now even lower price for Asda crisps was 1.15 but the crisps had been available for ï¿½1.15 for the last eight months.' As a result of this case, the supermarket claims to have changed its pricing policy. The so-called cheap food that Asda peddles with its misleading advertising has wide consequences: is it is subsidised by the taxpayer; it encourages cheap exploitative labour; intensive agriculture, environmental destruction, and animal and human diseases.
Appendix 1 Competition Monitoring Asda has made three price surveys. These three surveys help Asda to monitor their competitor price monitoring. Asdas three price surveys are: 1. 1,200 lines: weekly 1,350 lines for northern and southern stores of Kwik Save, Safeway, Sainsbury, Somerfield, Tesco plus one Morrison and Iceland. Based on high volume lines, sold in other stores. Constructed as sales weighted average of prices indexed to market average for each line. 2. 600 lines: high volume grocery lines, only changed every two or three years. Survey four stores in each competitor every four weeks.
3. Monthly discounter surveys verses Aldi, Lidl, Netto of 200 lines plus ad hoc surveys. See appendix 1 for details of monitoring carried out by the competition. Conclusion In my conclusion I have found out that Asda is doing good regarding to their profits made each year. It has got the same amount of market share as Sainsbury, which is 15 percent. I have compared Asda to Sainsburys and Asda to Tesco.
I have out that Asda is doing better according to customer opinions and in the market. In the comparison between Asda and Tesco I have found out that even though Asda is making fine progress Tesco I doing increasingly better than them. This is due to their eight percent lead in the market and their products. This enables Tesco to have a slight advantage. Overall Asda is doing fine progress each year and also being excellent to their customers.
In this piece of coursework I used the following resources inorder to get the information I needed for my business Asda:
1. Wiki textbook
2. Advanced Business Book Michael Fardon The main site of my chosen company is: www.asda.co.uk