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Live Better

GROUP MEMBERS :

OMAR ZAFAR ANSARI (20431)

RAVI KUMAR (21097)

SABEEN IQBAL ( 22792)

MUHAMMAD JAHANZAIB ( )

SUBMITTED TO : SIR ASIF.Z.WARZI

COURSE CODE : 9044

ASDA
PROJECT REPORT

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LETTER OF ACKNOWLEDGMENT

It has been a pleasure to be Sir Asif Warsi students. We would like to thank him for giving us
the chance to apply the theories of Managerial Economics in the real world.

His lectures have been very interesting. We are extremely grateful to him and appreciate his
efforts for providing us full support, encouragement and valuable guidance.

Sincere regards

Omar Zafar Ansari

Sabeen Iqbal

Ravi Kumar

Jahanzaib

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LETTER OF TRANSMITTAL

30TH November, 2015 Sir

Asif Warsi

Iqra University

Dear Sir,

This is the final report based on the topic "ASDA Stores Limited", as requested it is being
submitted to you on November 30th, 2015. The report has been prepared keeping in mind the
topic that was the ASDA Stores Limited.

The report is constructed by the group members if it lack something then we are sorry.

Omar Zafar Ravi Kumar Sabeen Iqbal

(20431) (21097) (22792)

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CONTENTS
Letter of Acknowledgement 3
Letter of Transmittal.. 4
Executive Summary. 6
Introduction to the Topic.. 7
Introduction to the Organization.. 8
Marketing Management Plan . 9-10
Stores.
ASDA Digital Campaign
Organizational Structure.. 11-12
Stakeholder Community.. 13-19
The Big Green Marketing concept.
Conclusion ..

Executive Business Summary of the ASDA Firm

Welcome to the fast-paced and rewarding world of ASDA. Part of the Wal*Mart family, ASDA
occupies the number 2 position in UK grocery retailing, but thats not all. We also hold a
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leading position in the UK clothing market with our George clothing brand, and are making
increasing inroads into the UKs General Merchandise sector.

The Dairies and Queen's Supermarkets merged and created the ASDA Store Ltd. In 1965,
GEM, came to U.K with new ideas and started GEM chain in 1965. In the year 1968,
associated dairies purchased the Asquith's stockholding and the ASDA name was now owned
by one company. It operates as one of the largest food retailers in the United Kingdom. The
company's stores sell a wide variety of merchandise including food and apparel, along with
house wares, music, videos, and books. ASDA has approximately 259 stores in its arsenal- each
stores nearly 42,000 square feet, and some are nearly around 100, 00 square feet. The company
turns dairies in to Wal-Mart Stores Inc. in 1999.Under its new parent's guidance, ASDA has
been adding pharmacies, jeweler, and photo departments, opticians to its stores.

Stores
1. ASDA Supercenters

2. ASDA Superstores

3. ASDA Supermarket

4. ASDA Living

5. George Stores

6. ASDA Essentials

7. Former Stores

Brands and Services

1. ASDA Smart Price

2. George Clothing

3. ASDA Mobile

4. ASDA Money

INTRODUCTION TO THE TOPIC

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The Chartered Institute of Marketing defines marketing as the management process

responsible for identifying, anticipating and satisfying customer requirements profitably. This
definition shows that, in order to be successful, an organization should find out what customers
require. Knowing what they want, it should then attempt to satisfy these needs. It is this that
helps business organizations to meet their mission, purpose and values. In recent years,
however, many companies have taken a wider view of the marketing concept. This implies that
they should balance all the things they do against the needs of the society in which they
operate.The highest aim of the organization is to provide to be Britains best value retailer exceeding
customer needs, every day of healthy lifestyles keeping in mind the socio-economic.
Our purpose at Asda is simple - to save our customers money every day. But at Asda its not just what we do,
its how we do it. In the way we treat our colleagues, trade with our suppliers and serve our customer.
Managers who make decisions that affect the route of an organization need to show those
choices to others. The way in which ASDA does this is through its mission, purpose and values.
These statements are designed to help stakeholders understand the direction in which the
company is heading.

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INTRODUCTION TO ORGANIZATION

Who We Are?
Our Mission
To be Britains best value retailer exceeding
Customer needs, every day
Our Purpose
As well as having a mission statement, ASDA has a statement of purpose. This helps stakeholders to
understand why the business exists. ASDA's purpose is 'To make goods and services more affordable
for everyone'.

Our Values
respect for the individual
strive for excellence
service to our customers.

To aid new colleagues at ASDA in understanding what the mission statement, purpose and
values stand for, they are given a 25-hour induction programme called 'Best Welcome'.
Every year ASDA researches statements through an intranet survey. This data helps to ensure
that, at every level within the company, colleagues, teams, departments and managers see how
the mission, purpose and values should power the decisions they take.

Our aim is to offer Britains best value weekly shop with prices that are
independently shown to be lower than our main competitors, and with
an excellent mix of fresh food, grocery, clothing, home, leisure and
entertainment goods.

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

Competitor around the same time 1949: stage 2

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Around the same time a group of West Riding dairy farmers, including the Stockdale family
and Craven Dairies, joined together under the banner of J.W Hindell Dairy Farmers Ltd. This
company diversified in 1949 to become Associated Dairies and Farm Stores Ltd, with Arthur
Stockdale as the Managing Director.

In 1963 the Asquith brothers converted an old cinema, the Queens in Castleford into a self-
service supermarket. Another swiftly followed in the old indoor market at Edlington, near
Doncaster. Both stores traded under the name of 'Queens'.

This new company decided to continue being revolutionary and bought the GEM chain in 1965,
re-launching the stores in the ASDA Queens name.

In 1968, Associated Dairies purchased the Asquiths stockholding - the ASDA name was now
owned by one company.

Stores continued to open throughout the 1970s with great success. The 1970s were also
acquisition years - the group bought Allied Retailers and some Gateway stores.

Crisis stage:
Times got harder during the 1980s - the group had spread too thinly across retail and the share
price started to plummet.

Reform stage:
Recovery came with the appointment of Archie Norman and Allan Leighton who in 1991 laid
down an ambitious formula for renewal and growth. The formula concentrated on restoring
value at the heart of the ASDA brand and revolutionising internal communications and
motivation. It was in 1965 when the Asquith brothers approached Associated Dairies to run the
butchery departments within their small store chain that a merger was proposed. So they joined
together with Noel Stockdale, Arthur Stockdale's son to form a new company, Asquith +
Dairies = Asda (capitalised from 1985).

Recovery stage:
In June 1999, now a successful company once more, ASDA was acquired by Wal-Mart Stores
Inc., and became part of the worlds biggest and best retailer.

Downfall
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The recession of the early 1990s impacted on the average household budget and affected the
amount of disposable income that the average consumer had to spend, and with rising inflation
it hit Asda customers whose stores were more heavily concentrated in the north than in the
more affluent south east harder. The move upmarket had also pushed in-store service and labour
costs up which impacted on profit margins and sales. Asda had also neglected many of the older
stores within its estate by not refurbishing them in line with other stores that had been
refurbished and its more expensive new store sites. It meant that Asda had left the older
unrefurbished stores in locations where competitors were opening new stores more vulnerable
to losing customers to their shiny new rivals. Asda had also heavily increased prices across its
ranges to try and drive sales up within its stores, as a result customers deserted the chain in
droves. The company was entering a vicious circle with a flawed and compromised trading
strategy and with a management team who were floundering and in charge of a company
heading into a steady decline.

Resizing
Between 1985 and 1987, Asda Stores Ltd, merged with MFI (Mullard Furniture Industries) and
the group was renamed Asda-MFI plc. The other companies in the group were Associated
Dairies Limited, the furniture retailer MFI and Allied Carpets. After the sale of MFI in 1987 the
company name changed to Asda Group plc. The dairy division was renamed Associated Fresh
Foods, the abattoir and meat processing plant at Lofthouse, near Wakefield which supplied
fresh meat to all Asda stores was renamed as Lofthouse Foods

Marketing Management Plan of ASDA

Introduction
Marking planning is one of the main functions of marketing department of an organization
(Kotler, 2003). This coursework will focus on marketing strategy and plan of ASDA. The
main points of discussion in this coursework are internal and external analysis, SWOT
analysis, market targeting and marketing mix.

Vision Statement of ASDA

According to Asda (2009) the main aim of the organization is to serve the customers by
offering them lower prices and giving their customers respect for which they deserve. They
want to achieve this goal through their staff called colleagues. They are developing their
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skills. So they can satisfy their customers' expectation and make their visit to store more
pleasant and joyful.

Situation Analysis
When an organization works in the competitive market, it has two main types of
environment.

Internal Environment

External Environment

To formulate, implement and execute a successful marketing strategy, ASDA management

and marketing decision makers have to understand these two types of environments.
(ASDA, 2009)

Marketing Objectives
The main objective of ASDA is to provide more modern services to their customer. They
are aiming to increase their customer base by provision of better services, adding more
products in their product range and lastly the development of new channels of distribution.
(ASDA, 2009)

Through, more control over the prices, they have reduced their cost while quality of
services is same. The 30% of the queues have been reduced due to application of more
advanced technology at the checkouts. In this way they are willing the customer
satisfaction. The organization is successfully implemented the policy of lower prices
successfully. They want to carry on executing same policy in future. (ASDA, 2009)

Target markets
According to ASDA, (2009) The organization is targeting almost all the segments of UK
society. However most general customers of ASDA are women of age 20s and 30s. These
women buy the goods of day to day use for themselves and their families. The second
group of market segment of ASDA are males. They also buy for themselves or for their
families. It is showing that marketing campaign of ASDA is not specified on a particular
group.

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Promotion strategies
ASDA marketing people are always curious to adopt new and innovative promotional
techniques. They are offering their customers like two for two pound, one for 1.99 and
similarly many other techniques. The roll back tags of ASDA are visible to every visitor.
The stores are instructed to display reduced price products in front of store so these can
catch the attention of customers immediately when they enter into store. (ASDA, 2009)

Distribution strategies
ASDA have 25 bigger depots national wide scattered around at different strategic locations.
In 2008, ASDA came into contract with Gazelle Company Limited who took the
responsibility of management of its warehouse and its international marketing. ASDA stores
also have their own production and manufacturing stores. (ASDA, 2009)

STORES
Asda initially had a "basic and new" store group, which under Archie Norman's group and the
later mid-'90s spotlight on a Walmart style methodology turned out to be more stressed. The
stores had a shortsighted three zone design however based on a Walmart bigger foot shaped
impression group Asda's normal store is right around 20% greater than its adversaries, with a
scope of more than 30,000 unique items in its biggest stores. On 16 April 2010, Asda declared
arrangements to open more than 100 new non-sustenance stores as a major aspect of an
aggressive five-year arrangement. These arrangements were mothballed soon after in light of
the retreat and the controlling of spending by customers on non-sustenance buys.

In February 2011, Asda reported the buy of six stores from Focus DIY, which were changed
over into grocery stores soon thereafte

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ASDA Supercenters
Taking after the takeover by Walmart, a few "Asda Walmart Supercenters" have been opened,
making a portion of the biggest hypermarkets in the United Kingdom. From 2006 onwards, all
new Supercenters have been exclusively marked as Asda Supercenter without the Walmart
marking. Bristol in the mid year of 2000. The primary Scottish Supercenter opened in
Livingston, in 2001.The Milton Keynes Supercenter which opened in November 2005 is as of
now the biggest Asda Supercenter with a net deals, yet is right now the second biggest Asda
Supercenter, and the third biggest is situated in Minworth, West Midlands, trailed by Patch way.
Starting 2015 there are 32 Supercenters in the UK. There have been not any more new
Supercenter openings since 2008, and the double Asda Wal*Mart marking on the more
seasoned Supercenters is in effect step by step eliminated to the sole Asda Supercenter marking
as every store comes up for significant restoration work.

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ASDA Supermarket
The Supermarket division was framed in 2009. Starting July 2010, there were 26 little
organization general stores some of which were procured from the Co-agent. The initial three
obtaining stores opened mid-2009 in Wellington, Lancing and Pershore took after by Cumnock,
Tweedmouth and Kingsheath in 2010. The biggest Supermarket configuration store in the UK
is in HighbridgE.

In May 2010, Asda reported the buy of the 193 UK stores of Danish rebate retailer Netto in a
778 million arrangement. There are presently well more than 200 stores in the littler grocery
store division. Asda have likewise kept on acquiring stores from distinctive Co-agent social
orders in different parts of the UK and changed over void units formally worked by any
semblance of B&Q (Chadwell Heath, East London) and Smyths Toys (Mitcham, London) into
stores inside of the grocery store division. Despite the fact that with a bigger deals region than
most stores inside of the division itself, they are simply under the size that would make them a
player in the center superstore domain. Asda have likewise put intensely into new form littler
stores

ASDA Living
An Asda Living branch in Leeds.
In October 2003, Asda propelled another configuration called 'Asda Living'. This is the
organization's first "general stock" store, containing all its non-sustenance reaches including
apparel, home gadgets, toys, homewares, wellbeing, and magnificence items. With these hides
away have connected up with Compass Group who work the caf Living Cafe inside of a
portion of the stores. The primary store with this arrangement opened in Walsall, West Midland.

George StoreS
In 2011, Asda declared its expectation to set up a little number of pilot George stores.In January
2012 Asda reported that it had consented to terms with two establishment accomplices to open
global George stores. Through the concurrence with SandpiperCI, situated in the Channel
Islands, the organization will be in charge of opening George establishments in both Jersey and
Guernsey, and through the Azadea Group, headquartered in Beirut, Lebanon, the George
establishment stores would open in the Middle East. The opening of the first George stores in
both areas are normal before the end of 2012.

Brands and services

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The Smart Price mark was initially a nourishment just

brand, then again it has following extended to cover different item runs inside of the store,
including some family unit products and kitchenware. Like early nonexclusive items in the US
some Smart Price items need what can be considered as "ornaments" in the cutting edge brand
name or market own image, for instance the Smart Price toothpaste has an obsolete screw top
instead of the now more regular flip top and the Smart Price scope of crisps come in
conventional clear plastic packs as opposed to the foil sacks basic to most name brand variants.
Starting 2015, all kitchenware and family unit merchandise are presently some portion of the
George at Home reach.

Asda's Smart Price logo and bundling has changed a few times since its presentation. In 2012, it
was changed to coordinate the marking of the Walmart Great Value line,[34] yet a further
overhaul in 2014 evacuated any similitude in visual style.

ASDA Money
Asda has a financial services division, similar to those operated by Tesco, Sainsbury's and other
retailers. Asda simply attaches its own brand to products provided by other companies. Services
offered include car insurance (provided by Brightside Insurance Services), credit cards
(provided by Sygma Bank) and travel money bureaux (provided byTravelex). The financial
services division of the organisation does not directly sell these services in store and instead
uses the supplier of that product by telephone or online/postal application.

ASDA Foundation Community Grants Programme

Grants of between 5,000 and 20,000 are available for not-for-profit organisations to develop
stronger better connected communities across the UK by targeting the key social issues that are

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affecting local communities. Funding is available for initiatives that will support local
communities and meet the following criteria:

Will make a significant difference benefitting the wide local community.

Addresses the needs of the local community.
Tackles the underlying issues in the local community.
Has used evidence of community needs and aspirations to develop an existing model.
Will transform the community, improving the lives of those who live there.

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ORGANIZATIONAL STRUCTURE OF ASDA AS A

WHOLE

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Meeting stakeholder needs through community

involvement
Any individual, group or organization that is affected by the actions of a business
is a stakeholder.

Internal stakeholders may be within an organization, such as the directors,

managers and colleagues who are colleagues of each other.

External stakeholders exist outside an organization and some of these will be

customers, suppliers and shareholders. Each of these groups of stakeholders is
affected by the actions of ASDA. They have a real interest in the nature and types
of decisions that the company's managers take.

For example:

Customers want low-priced, good products. Modern customers also have high
expectations of organizations. They will want them to get involved in the local community.
They will then want to know about them. ASDA stores and depots have community
noticeboards and a monthly magazine is produced which features community events.
Colleagues like to serve the community. The retail industry is not highly paid -
customers demand low prices and operations require a large number of colleagues. So
working with the community helps to motivate colleagues. All the events that ASDA holds
are shared in an in-house monthly newsletter.
Shareholders want a good return on their investment. They also believe in
community interest, as they like to see the company they have invested in acting positively
in its environment.
Suppliers at a national level are the very large providers to ASDA. They will want to
sell goods in volume at good prices. This gives them economies of scale. ASDA has worked
hard at building up links with local suppliers. It works with small and medium-sized
businesses that are able to provide products for groups of stores at terms that suit them.

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GREEN MARKETING
CONCEPT
Since the beginning of 2011, weve been working
with a panel of over 7,500 Asda customers to find
out what they think about sustainability, and the
actions they take to be green. We call this panel
Everyday Experts, because they are the experts
when it comes to understanding what most people
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think, do and expect around sustainability in their

everyday lives.
After two and a half years of running these surveys,
we have found that everyone, no matter their
income, age or gender, cares about sustainability.
But while most of our Everyday Experts say they are
green, they also believe they could be doing more.

Our Everyday Experts said:

Green is normal No matter how old or young

They are, how much they earn, or where they
Live, our Everyday Experts agree; the new weird
is to do nothing.

I set the sustainability agenda According to

our Sustainability Study, the people retailers like
Asda should listen to most on green issues are
Everyday Experts their customers.

Green should be easier to find Over three quarters

of Everyday Experts say theyve bought a green
product, from Fairtrade to locally sourced options.
They tell us theyd buy even more if they could find
the right option easily and if green claims werent
so complicated.

I expect to be greener in the future Everyday

Experts make it clear that they dont see green as
just a trend or a fad. Nearly 70% of lower-income
households, 90% of women and nearly 80% of men
expect to do more to be greener in the future.

The green choice shouldnt cost more Everyday

Experts dont see why they should pay a premium
for the green choice. Over 80% buy green products
because they think its the right thing to do, and the
same amount expect those products to be priced
within their means.

Definitions
We use the terms sustainability and
green in the way Everyday Experts
understand them. Green usually refers
specifically to environmental issues,
whereas sustainability incorporates social
issues too. We came up with the following
definitions, which are used throughout
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our research:
A green product is a product that is
environmentally friendly i.e. its made
with minimal impact on the environment.
A Fairtrade product is a product which
is good for people i.e. its made by people
who are paid a fair wage for their work
and helps to support communities.
A healthy product is a product which is
good for you i.e. its got fresh ingredients,
or low fat or salt content.
Food waste is anything intended for
human consumption that is not consumed
by humans. This includes food that is
composted or fed to the dog, but it
doesnt include things like orange peel
and banana skins.

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CONCLUSION
From 1991 to 2013 Norman Archie ran ASDA for 12 legendary years during which he transformed it
into an organization willing to take risk at any time providing good strategy and best managers.
ASDA has become an entrepreneurial organization whose two main criteria are:

1. Well-structured organization: Given the right information and needed tools, all members are
allowed to take advantage, each at his level, of opportunities stemmed by solutions.

2. The existing environment in the company pushes people to take individual initiative, and
errors and failures that happen while taking initiative are in fact considered as progress in
the personal and organizational seek for excellence.

Change management cannot be limited to the only change process. The leading practices of how
to implement and carry out the change were considerably evolved. From the simple training of the
employees to the psycho-sociological actions, there are several approaches to carry out such a
project, but they are all necessary to the success of the change.

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Commitment cannot be obtained without informing the employees and explaining the cogency of
the changes. Having informed and explained that, all energies will be mobilised for the same
objective: Transform the company and against the same enemy to fight: resistance to change.

Finally ASDA must be grateful and say thanks to the top managers who anticipated at an earlier
stage of the crisis by thinking and bringing Norman Archie to diagnose, plan and carry out a
successful change which turned the company from bankruptcy into a competitive supermarket
heavyweight.

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