The Influence Of Asda's Brand Strategy

(Please note: Task 1, 3 & 4 have been combined together into one report. Task 2 is separate and can be found on page 9)

Product offerings by these contenders are similar as Tesco’s to a huge degree. This procedure helps Tesco to ensure its commercial center by expanding competition. A large portion of the contenders of the Tesco have an equivalent or a bigger market share in the store business. By industry investigators, Tesco PLC has a twenty nine per cent of shares the grocery store industry.

However, when Franklins unsuccessfully attempted to reconfigure their position in regards to their consumers, they lost their hold on the market (Armstrong et al. 2012). It is also outlined by Armstrong et al (2012) that the inexperience of Franklins in regards to market segmentation resulted in the loss of existing consumers as well as future consumers, and ultimately resulted in an uncontested response to ALDI. 4. ALDI’s Private label strategy Smith (2006, p. 39) implies that due to the nature of the supermarket industry, stores that offer a larger range of products are often more efficient than those that offer fewer items. ALDI however tests this notion, as they stock roughly 700 private label products - which is less than other retailers who stock 25000 to 30000 products (Bonn 2006, p. 1), yet they are still able to secure their market position and contend with rival retailers (Armstrong et al. 2012) 4.1 Perception of Private Label Within the last 20-30 years, private label brands were initially targeted towards the lower classes; therefore people’s adoptions of private label brands were not very common (Kumar & Steenkamp 2007, p. 12). However, in recent decades private label products have become more favorable to Australian consumers. This is evident in 2010 Nielson Global Survey (The Nielsen Company 2010) as the total percentage of sales of private label products have increased

The threat of substitutes in the food retail industry can be high among the ‘Big Four’ as switching costs are relatively low and products can be similar. However, most have their own private labels and also target slightly different markets, such as Sainsbury’s having more upmarket positioning and Tesco’s cost leadership. Waitrose offers unique and differentiated products, which are, in the eyes of the consumer, significantly superior. No other supermarket offers such premium quality products with great service and such a large range of organic products as Waitrose, so this makes them extremely difficult to substitute. (Euromonitor, 2008).

By not needing to maintain a high profit margin on the fooditems, this has allowed the supercenters to keep their food prices down in comparison with mosttraditional supermarkets.The recession, which started in 2008, has helped drive the need for private-label products,or as they are more commonly called, store brand products. These private-label productsgenerally cost the consumers about twenty-five percent less than the major national brands thatare offered. Throughout the supermarkets and other types of food retailers, the private-labelsales grew by more than 9% from 2008 to 2009, and these types of private-label sales accountedfor about 35% of Kroger’s overall sales. Most stores do not operate their own processing plantsfor these private-label items; Kroger does however operate their own plants for the private-labelproducts.

A brand is utilized by a company to differentiate its products from others in the market. Some techniques for accomplishing this are through the use of distinguishing

The second force that I will use to analyze the Trader Joe’s company is the “the rivalry among established competitors”. Factors to consider when looking at the rivalries in the industry are industry demand, cost conditions, and exit barriers. Trader Joe’s competitors include The Kroger Co., Whole Foods Market, and Safewat Inc., and all super markets in general (Llopis, 2011). With that said, there seems to be a high demand for what Trader Joe’s offers, private labels. This means that the intensity in the industry is less compared to an industry with a flat demand. Trader Joe’s does not have to fight hard to sell their products because of the service they have created. Trader Joe’s brand can be considered “diversity on steroids” which has somewhat of a cult following among consumers (Llopis, 2011). Consumers that want unique experiences with their food are able to do exactly that at

For 50 years, Ralph Lauren 's reputation and distinctive image have been consistently developed across an expanding number of products, brands and international markets. However, in 2015, they reported a 5.3% drop in revenue from June 2014 to June 2015 (O 'Brien, 2015), and since then, the shares began a downward trend.

Many retailers have private label brands--their own brands of merchandise sold at prices below the prices of national brands.

The Australian Supermarket Industry is the very hot topic that’s why very interesting topic now days. The Australian supermarket and grocery stores have a very severe competition in Australia mainly because of organizations competing in this mature industry are going towards cost reduction initiatives with competing advantage rather than product differentiation strategies, In other words business in this industry increase market share by charging lower prices while making reasonably fair profit. The growing popularity of ALDI – German based company of introducing its own label goods (products manufactured and sold under the retailers own brand) with low cost has forced the two giants –Woolworths and Coles to cut price

As weak consumer spending restricts sales growth, supermarkets are placing greater emphasis on its own labels, which are more profitable than branded items. “Morrisons plans the first makeover of its own-brand range in four years as it joins rival U.K” (Morrisons, official website). Food retailers are adding private label items to boost profitability. They produce their own products as a brand to enlarge the market share in the supermarket industry. The products produced by them are labeled ‘Tescos’ and ‘Morrisons’ as well as the plastic and shopping bags. Therefore, customers can easily identify the products by packaging. Unlike Tescos and Morrisons, Aldi, a German discounter has been doing surprisingly well in the UK too. It specializes in small stores—the size of a basketball court rather than a football pitch. The research from the Guardian shows that more than 90% of its goods are its own unfancy brands. “To keep its supply chain simple, Aldi stocks barely 1,000 products; some of its rivals stock 100,000”. (Julia

Executive Summary - 3 - 1.0 Introduction - 3 - 2.0 External Analysis: PESTEL Framework - 6 - 3.0 Industry Analysis: Porter’s Five Forces - 9 - 4.0 Internal Analysis - 11 - 4.1 SWOT analysis - 11 - 4.2 Value chain analysis - 12 - 4.3 Resource & Competencies - 14 - 5.0 Vision, Mission, Objectives & Measures - 15 - 5.1 Vision - 15 - 5.2 Mission - 15 - 5.3 Objectives - 15 - 6.0 Strategic Options - 16 - 6.1 Generic strategy - 17 - 6.2 Competitive strategy - 17 - 7.0 Developing Strategies - 18 - 7.1 Corporate strategy - 18 - 7.2 Business strategy - 19 - 7.3 Functional strategy - 19 - 8.0 Implementation Plan - 20 - References - 21 - Executive Summary ASDA is one of the biggest retail supermarkets in the

ASDA is the second largest supermarket chain in the UK, in terms of market share. It has operations all around the UK. It has different categories of market offering, Food & groceries is one of the dominating segments. The parent company of ASDA is globally renewed retain chain Wal-Mart. However, the report has covered the strategic analysis on ASDA food; based on their current market situation and strategies. In the previous assignment, the writer has covered internal analysis and competitive situation. The company has strong competitors in the home country, like Tesco. In this report, the writer has used different strategic tools

According to Survey by national consumer organization, CHOICE (2014), a comparable basket of goods at ALDI is 25% cheaper than at one of the MSCs. ALDI is estimated to hold 9.1% market share in 2015-16 as compared to other grocery stores (ibis). In terms of the strategy of ALDI, ALDI focus on reducing costs to the customer in such a manner that customer is convinced to continue shopping. However, on further analysis, the organization illustrates a differentiating strategy and prefers to distinguish itself from other major retailers the likes of Coles, Wesfarmers and Woolworths. For example, ALDI provides weekly specials like on gardening, camping, kids, and kitchen with discounted offers. ALDI is a low-cost player that stocks a less variety of popular grocery items. Over past five years, an incredible achievement contributes to ALDI 's rapid growth to which consumers have responded positively (ibis). Therefore, it can be said that in terms or corporate strategy, the organization has characteristics of both a cost leadership strategy as well as a differentiation strategy.

1. A brief history of the brand: origins, key stages in its growth , etc.