Company Background of ASDA - Case Study Example

Module Number: Word Count: 2086 Choose one organization that offers services and/or transactions over the Internet and also interacts with customers through ‘brick’ or other channels (e.g. telephone). Typical examples are banks, clothing retailers, supermarkets, electrical. Table of Contents Table of Contents 2 Introduction 3 Discussion 3 Company Background of ASDA 3 Functions of a website 4 The information gathered by the websites 5 Analysis 6 Making use of the information in Business information systems (BIS) 6 Recommendations 9 References 10 Introduction The main objective of this paper is to highlight the vision, mission and objectives of the organization of ASDA online grocery retailer of United Kingdom. Along with this, this paper also describes the information or facts presented by the organization of ASDA through its online website to its target customers such as new product updates, discounts or rebates etc. Moreover a brief overview about the competitors of ASDA in the market of United Kingdom is also described so as to analyse its position and competitiveness in the market. Furthermore, it also comprises of the information presented through business information systems in order to enhance the marketing decisions, human resource planning’s etc. This paper is highly divided into four sections, namely introduction, discussion, analysis and recommendations. Along with these sections, it also includes a list of references at the end of the paper so as to make more relevant and effective in nature. Discussion Company Background of ASDA ASDA is one of the reputed supermarket chains of Britain, since 1999. It is recognised as the largest subsidiary of American retailer, Wall-Mart, which mainly retails clothes, toys, general merchandise, food products, games, electrical products, flowers, furniture’s, mobile phones, local gifts and many others (ASDA 1, 2014). The mission of the organization of ASDA is to position itself as one of the best value retailer of Britain, satisfying the needs and demands of the customers effectively whereas the vision is to respect the values of the customers and to offer them best quality of services. On the other hand, the prime objective of the organization of ASDA is to offer good quality of products at a quite low price so as to enhance its range of customers and brand value in the market of United Kingdom among its main competitors such as TESCO, Sainsbury, Morrisons etc (ASDA 2, 2014). Functions of a website The online website of Associated Dairies & Farm Stores Limited (ASDA) acts as a source of marketing and communication. This is because; with the help of this website, the organization of ASDA displays a wide range of products to its target customers. The website is also used to offer the details of prices of various products lines to its customers so as to enhance their level of awareness and reliability over the brand. Along with this, it is a source to enhance the credibility of the brand by offering the facility to attain varied types of products at a quite affordable price as compared to many other rival contenders. This enhances the trust and brand value of the organization of ASDA that may increase its total sale and net income (ASDA 3, 2014). Moreover, with the help of online sites, the organization of ASDA might promote its brick and mortar presence. By doing so, the customers might very easily reach to that specific place and accomplish their desired products. This might amplify the dependency and consistency of the customers over the brand thereby amplifying its competitive position. Furthermore, the online website also acts as a two way communication channel. This means; the organization of ASDA offers varied types of information to its customers regarding seasonal or festival discounts with the help of this website and the customers might resolve varied types of queries so as to enhance the reliability and consistency of the consumers over the brand (ASDA 4, 2014). It also helps the customers to review various products prior purchasing it so as to attain the best benefits. The website also acts as a customer service medium that offers various facilities 24 *7 so as to retain its customers for a longer period of time as compared to brick and mortar stores (ASDA 5, 2014). Moreover, the website is also linked to various other channels such as twitter, face-book, you-tube etc so as present various information to its customers. Thus, due to these above mentioned reasons, the website of an organization is extremely essential in this age of competitiveness among others. The information gathered by the websites In this age, website acts as catalyst for enhancing the growth and competitive advantage of an organization. This is because; due to the presence of a website, various customers from varying countries and nations might access the sites that may increase the total sales and profitability of the organization. Along with this, it also acts as a source to enhance the range of customers and brand image of the organization as compared to many other rival contenders. Similarly, due to the presence of the website of ASDA, its product lines might easily be accessed by numerous customers of diverse income groups, living standards, life style, age-groups, genders etc. By doing so, the demand and distinctiveness of the brand might be analysed as compared to many other rival contenders (Porter, 2008, pp. 786-790). Apart from this, websites also presents a detail overview of the product lines that are often accessed by the target customers. By attaining that information, the management might offer up-dated information and facts regarding those product lines such as trendy designs, discounts, special rebates etc so as to increase its total sale and profitability. With the help of a website, an organizational management might also easily analyse the type of adverts that offer profitable results in long run. By attaining this type of information, the organization might plan the type of adverts that may prove prospective both for the organization as well as the customers (Kotler & Keller, 2012, pp. 563-575). Moreover, with the help of websites, the reviews and feedbacks of the customers might also be analysed and evaluated by the management of the organization that may be used for improvement of the demand and brand image of the product lines. In addition to this, website of an organization also presents various information regarding the demographic data’s of the customers such as age, products, gender, locations, culture, race etc (ASDA 6, 2014). From this information the organization might easily analyse the target group of customers and their taste and preferences. Therefore, it might be clearly stated that, a website presents a detail overview of the demand and reputation of the product lines of an organization in the market among many other rival players. Information gathered by a website Services Price inquiry of the items of home and garden Demographics Age group within 15 -25 years Time spent on pages 10 mins Pages viewed by the customers Grocery and kids items IP address 172.2002.1442 Links Clicked Kids and females (ASDA, 2014) Date of Visit 10th February , 2013 Way by which, the customer reached the site Face-book, twitter Feedback from customers Excellent designs Therefore due to these above mentioned reasons, maximum extent of the organization, operating in diverse segments desire to attain an online site, in-spite of Brick and Mortar store. Analysis Making use of the information in Business information systems (BIS) Business information system includes varied types of information that may enhance the brand image and popularity of the organization in the market among other rival players. For example: customer demographics might be used to improve the marketing policies and strategies of the organization. The website of the ASDA is mainly viewed by the customers with age group (15 -25 years) with high income groups and life style. From which, the changing needs and preferences of the customers might be easily analysed. By knowing those needs, the organization might alternate their product lines or services (Ismail, 2011). For example: in festive seasons such as Easters, the intensity of purchasing is extremely high, so the organization of ASDA offered varied types of discounts or rebates like 3 toys or fancy dresses for £10 for Easter treats. Such type of rebates are presented by the organization of ASDA in order to attract a wide range of customers of varying income groups and life styles that may increase its net income and total revenue. Apart from this, by analysing the frequency of purchase of the customers, the organization might evaluate the forecasted amount of sale in the coming period and also, the tactic or the strategy to achieve it such as discounted pricing or competitive pricing, innovation, differentiation etc (ESOMAR, 2008, pp. 433-445). If the organization might become successful to analyse the type of marketing strategy, best suited for its target customers, then it might enhance its competitive position and dominance in the market among others. Moreover, due to attainment of competitive advantage, the threat of new entrants and substitute products might get reduced that may amplify its portfolio and market value (Gaines & et.al. 1997). Other than this, by evaluating the total value of purchase of the customers, the organization might evaluate the planning process of the human resources required to pick up the desired products. So that the customers, might attain the products very easily and quickly without any sort of problems, that enhances the reliability and trust of the customers over the brand. Moreover, by better availability of the products, the total purchase and total revenue of the organization might get enhanced. Thus, marketing information systems (MIS) acts as a medium to scrutinize and control the current performance of the organization and may predict the future performance or sales (Keegan, 2002, pp. 626-634). Apart from this, MIS also helps the managers in implementing varied types of marketing or administrative decisions such as quality, quantity or instant delivery of the products etc. So that, the customers might get satisfied with the services and quality of the products of the organization and might retain with it in future age as well (Drummond & Ensor, 2006, pp. 334-345). MIS also offers the facility of marketing intelligence and marketing research to analyse the strategic policies and strategies adopted by the rival players so as to enhance its level of dominance in the market such as strategic alliance, mergers etc. By knowing the strategy of the rival player, the organization likes ASDA might act accordingly. For example: merger of Wal-Mart and ASDA that proved extremely effective for the organization of ASDA in terms of customers and profitability. (Source: Ismail, 2011) Therefore, it might be clearly stated as per Gaines & et.al. (1997) that, business information system or marketing information system acts as source to enhance the productivity and profitability of the organization (Bradley, 2007, pp. 234-245). Along with this, it also helps to improve the quality of the product so as to improve its demand in the market. Moreover, by analysing the information obtained through MIS, an organization might become able to introduce varied types of new products lines or services so as to cope up with the changing demands of the customers in an effective way. Other than innovation, MIS also offers best type of customer services to the customers at 24*7 so as to improve the rate of relationship with them. This is because; in this age, relationship marketing acts as a catalyst to increase the total sale of products and its profit margin to a considerable extent as compared to many other rival players (Apte, 2004, pp. 123-134) Hence, it might be depicted that MIS helps to enhance the sustainability and competitive advantage of the organization in the market among other rival contenders. Recommendations In order to enhance the productivity and supremacy of the organization of ASDA, its management might try to make continuous up-gradation of the information of the product lines. For example: up-dation of the new designed clothes and dresses for males and females. Only then, the range of customers of varying age-groups might get attracted towards the organization that may enhance its profit margin and net income as well. Other than this, the organization of ASDA might try to present varied types of discounts or rebates on the items as per occasions such as on the eve of valentine day, discounts might be presented over the clothes of male and females as well as gift items. Only then, the rate of total sale and profitability of the organization of ASDA might get enhanced to a significant extent as compared to many other rival players. References ASDA 1. 2014. ASDA Saving your money every day. [Online] Available at: http://www.asda.com/ [Accessed on 29th March, 2014]. ASDA 2. 2014. ASDA Groceries. [Online] Available at: http://groceries.asda.com/asda-webstore/landing/home.shtml [Accessed on 29th March, 2014]. ASDA 3. 2014. ASDA Direct. [Online] Available at: http://direct.asda.com/ [Accessed on 29th March, 2014]. ASDA 4. 2014. ASDA entertainment. [Online] Available at: http://direct.asda.com/Entertainment/AD07,default,sc.html?cmpid=ahc-_-ad-snd1-_-asdacom-dsk-_-hp [Accessed on 29th March, 2014]. ASDA 5. 2014. Toiletries, Health & Beauty. [Online] Available at: http://groceries.asda.com/asda-webstore/landing/home.shtml?cmpid=ahc-_-ghs-snk1-_-asdacom-dsk-_-hp&#cat/1215135760648 [Accessed on 29th March, 2014]. ASDA 6. 2014. Beauty And Cosmetics. [Online] Available at: http://groceries.asda.com/asda-webstore/landing/home.shtml?cmpid=ahc-_-ghs-snk1-_-asdacom-dsk-_-hp&#dept/1215185955607 [Accessed on 29th March, 2014]. Apte, G. 2004. Service Marketing. London: Sage. Bradley, N. 2007. Marketing Research: Tools & Techniques. New York: McGraw-Hill. Drummond, G. & Ensor, J. 2006. Introduction to Marketing Concepts. New York: Cengage Learning. ESOMAR, 2008. Market Research Handbook. London: Sage. Gaines, C. & et.al. 1997. Information System as a Strategic Partner in organizational Performance. Journal of Management and Marketing research, pp. 1-17. Ismail, Turki. S. 2011. The Role of Marketing Information System on Decision Making process. International Journal of Business and Social Science, Vol. 2 (3), pp: 1-11. Keegan, 2002. Global Marketing Management. London: Pearson Education. Kotler, P., & Keller, K. 2012. Marketing management. Harlow, NJ: Pearson Education. Porter, M, E. 2008. Competitive Strategy: Techniques for Analyzing Industries and Competitors. London: Simon and Schuster. Read More