Manchester International College

ILM Level 3

Diploma in first line management

For attention…. Ikpenmosa Uhumuavbi

Submission date…18/01/2011

Submitted by ….Kamaljit kaur

TITLE……………….INNOVATION PROJECT ON “ASDA”

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 Content page

 Introduction………………………………………………..3
 Background…………………………………………...........4
 Marketing…………………………………………………..4
 My role in Asda…………………………………………….5
 Organisational chart………………………………………..5
 Asda customer services…………………………………….6
 Advertising………………………………………………….6
 The aims and objectives…………………………………….6
 Customer needs and requirement…………………………..7
 Product analysis…………………………………………….8
 Customer rights……………………………………………..8
 Employee’s needs and rights………………………………..9
 Planning service standards and procedures…………………9
 Commitment ………………………………………………9-10
 Questionnaire………………………………………………11-13
 Swot analysis………………………………………………..14-15
 Chart …………………………………………………………16
 Competition………………………………………………….17
 Recommendation…………………………………………….17
 References……………………………………………………18

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Introduction
Asda is a British supermarket chain which retails food, clothing, toys and
general merchandise. It also has a mobile telephone network, Asda mobile. It
has its head office in the Asda House in Leeds, West Yorkshire.
Asda became a subsidiary of the American retail giant Wal-Mart, the world’s
largest retailer in 1999, and is the third largest chain in the UK after Tesco and

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Sainsbury’s. In December 2010, 16.5% of UK grocery shoppers used Asda for
their main shop, with 'special offers' the most cited reason for its popularity.

Background of history
Asda Stores Limited was founded as Associated Dairies & Farm Stores Limited
in 1949 in Leeds. The adoption of the Asda name occurred in 1965 with the
merger of the Asquith chain of three supermarkets and Associated Dairies .For a
short time in the 1980s Asda Stores Ltd was a subsidiary of Asda-MFI plc.
Following a merger between the two companies. Other companies in the group
were Associated Dairies Limited, the furniture retailer MFI and Allied Carpets.
After the sale of MFI and Allied Carpets the company name changed to Asda
Group plc. The dairy division was sold in a management buyout and renamed
Associated Fresh Foods. Meaning that Asda has since had no connection with
one of the firms its name was derived from. In 1997, The Spice Girls licensed
their name and image to Asda in which they created over 40 different Spice
Items for Christmas 1997 developing goods such as party supplies, official
merchandise, and even Spice Girl branded kids meals in the stores' restaurants.
The Spice Girls earned £1 million for this sponsorship deal. After the takeover
Asda continued to maintain its headquarters at the then newly opened "Asda
House". This building was one of the first of the new large office blocks to open
as part of the redevelopment of the huge area south of the River Aires in the city
centre of Leeds, in the Holbeck district, West Yorkshire.

Marketing
Asda is known for memorable famous marketing campaigns. Starting in 2008,
Asda has been returning to its roots and is now re-focusing on price with its new
"Why Pay More?" campaign both on TV and in stores. Current Asda TV
commercials in April 2009 focus on price comparisons between Asda and its
rivals. Asda has been winner of The Grocer magazine "Lowest Price
Supermarket" Award for the past 12 years. As a result Asda no longer cites
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itself as "Officially Britain's lowest priced supermarket", instead using "Winner:
Britain's lowest price supermarket award".

My role in Asda
The role I have now involves so many elements that there really is no ‘normal’
day. For example, in any day I might have to grapple with the technological
issues behind our online service, deal with customer queries or help to lay the
foundations for how the business will develop. I really do feel I’m getting the
best of both worlds as I can be there for her when she needs me most and
continue to develop my career at the same time

Organisational chart

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Asda customer services
Customer service is a series of activities designed to enhance the level of
customer satisfaction – that is, the feeling that a product or service has met the
customer expectation." If someone enquiry relates to a product you've
purchased online, including groceries, select this option to be directed to the
appropriate contact route. We're always listening to what our customers and
colleagues say about our products and services - and looking out for ideas or
suggestions that can improve what we do Asda available 24 hours for its
customers. These are moral statements that help to encapsulate the company's
beliefs which then determine the decisions and actions it takes in the
marketplace. ASDA's values are:

• Respect for the individual

• Strive for excellence

• Service to our customers

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Advertising
The term advertising includes any paid form of non-personal communications
through the media about a product that has an identified sponsor. The use of
payment differentiates advertising from public relations for which no payment
is made for the time or space to convey a message. The media may include
telephone directories, guides, newspapers, magazines, radio, television, direct
mail, Web pages and billboards. It is normally associated with mass
communication, where a broad target market is to be contacted.

Mission statement of Asda

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. A mission statement sets out the long-term
direction of the organization. ASDA's mission is: 'to be Britain's best-value
retailer exceeding customer needs always'.

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'.Asda also has a series of
values.

The aims and objectives of Asda

They want to provide goods and services that are cheap and affordable to
consumers or the end customer (common People).Objectives are Affordable
cost for their items/products, recycling their waste, packaging their products
well and supporting voluntary services.

•To provide goods/services those are cheap and affordable to consumers or the
public.

•To reduce the cost objectives of their items/products.

•To recycle their waste.

•To package their products well.

•To support voluntary services

Customer needs and requirements

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 Recognised as the second largest supermarket group in Britain, and part of the
Wal-Mart family, ASDA stores have become a household name amongst
thousands of families in the UK, providing high quality products at competitive
prices. With an increasing demand for high security, ASDA understood that it
was now more important than ever to take appropriate action in securing stock
and protecting employees in the chain’s 300 branches. In considering security
alternatives, the company recognized that it was time to implement an access
control system that would impact the company’s performance for the future.

It is the job of marketers to understand the needs of their customers. In doing so

they can develop goods or services which meet their needs more precisely than
their competitors. The problem is that the process of buying a product is more
complex than it might at first appear.

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Product or brand substitution analysis
Product and brand substitution methods elicit the degree of similarity of
perceived attributes and consequences associated with usage. When questions
are asked about the degree of substitutability, attributes and consequences are
discovered that inhibit or promote substitution (attributes or consequences that
need to be added or removed for substitution or trial to occur). For an unfamiliar
brand, the respondent first can sample or be given a description of the brand,
followed by questions like: how likely would you be to substitute (name of the
new brand) for your current brand for this occasion—why is that?

Customer rights
Understanding consumer rights is complex and at times confusing, but What
Consumer is here to help, by showing you whether you have a valid complaint
under UK law and what remedies you can rely on to put the situation right.
There are several sections to this site:

• Consumer Rights explains how various acts of UK legislation and

European Regulations affect customers. Among many others,
customer can find information on Sale of Goods, Supply of
Services, Consumer Credit, Data Protection, Misdescription and
Travel.

• Consumer Guides contains more information on specific scenarios

such as buying mobile phones, new homes, second hand cars,
clothing and footwear. It also deals with thorny issues such as
returning damaged or faulty goods, cooling off periods, dealing
with dodgy tradesmen, buying online or making a small claim.

• Consumer News keeps customer updated on aspects of consumer

news and how legislative changes affect you.

• Consumer Forum: It goes without saying that you, the consumer,

are a central feature of our site. As such we’d love you to share
your views and experiences and offer advice on the forums to your
fellow consumers.

Employee rights and needs

• Being paid and pay slips

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 • Company sick pay rights

• Performance related pay

• National minimum wage rates

• Annual leave and holidays

• Time off for sickness

• Pre –employment checks

• Flexible working

• Employment protection during business transfers and takeovers

Planning service standards and procedures

Provide easily accessible forms and information that is comprehensive,
accurate and timely and is clear and easy to understand. Delivering an
efficient, high-quality service to deal politely, quickly and helpfully with any
problems. We want to deliver an efficient, high-quality service and in doing
so we aim to deal politely, quickly and helpfully with any problems to do
with our business.

• Provide easy access to helpful and professional guidance and

advice.

• Be punctual, polite and helpful and respond effectively and

sensitively to your needs.

• Be responsive to the special needs of any of our customers.

• Have published policies and standards and be accountable and

open about how well we perform against these policies and
standards.

• Listen to your comments, respond to your complaints and learn

from them.

• Respond to your e-mail using plain language within five working

days.

• Respond to your call or voicemail message on the same day or the

following morning if your message was received after 4pm.
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 • Respond to your letter using plain language within 10 working
days.

• Keep the reception area clean, tidy and manned from 09.00 until
17.00 (16.30 on Fridays).

Asda Commitment to Green Issues

ASDA has continued their environmentally friendly shopping experience with
the unveiling of their latest high efficiency store in Boodle, Merseyside. The
40,000 square foot supermarket is ASDA’s latest energy efficient store, with a
total cost of an estimated £16m.

7,000 jobs will be created over the next 12 months through the opening of
between 10 and 12 new superstores, in addition to a further 1500 jobs created
through their Home Shopping and ASDA online.

ASDA Chief Financial Officer, Judith McKenna, said -

‘This major investment demonstrates our on-going commitment to bringing low

prices and fantastic service to even more people across the UK. We have an
impressive track record of regenerating areas at the edge of and in town centers
throughout the UK, showing our ongoing commitment to local communities.’
7,000 jobs will be created over the next 12 months through the opening of
between 10 and 12 new superstores, in addition to a further 1500 jobs created
through their Home Shopping and ASDA online.

ASDA Chief Financial Officer, Judith McKenna, said -

"Please note, any prices mentioned in the donation4charity blog are correct at
the time of posting. Please check the relevant website for the latest pricing
information."

Asda’s ‘commitment’ to British beef meets a mixed reaction. ASDA’s new

initiative Beef Link is aimed at increasing beef sales and reinforcing the
supermarket’s commitment to British beef. It will, say the supermarket, ensure
all Asda beef is sourced from the UK and the Republic of Ireland.

QUESTIONNAIRE

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I have done a survey in relation to ASDA store’s reputation amongst the people.
I have collected information by providing them a questionnaire and analysed
questionnaire is given below.

1. Is ASDA suitable for your shopping?

Satisfied ………………………………6

Very satisfied………………………….4

Dissatisfied………………………….....3

Strongly dissatisfied……………………2

2. Do you like the services and facilities?

Satisfied ………………………………4

Very satisfied………………………….3

Dissatisfied………………………….....5

Strongly dissatisfied…………………...3

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3. Do you like the price of all grocery things in ASDA?

Satisfied ………………………………3

Very satisfied………………………….6

Dissatisfied………………………….....4

Strongly dissatisfied……………………2

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4. Do you see any benefits to having ASDA?

Satisfied ………………………………5

Very satisfied………………………….5

Dissatisfied………………………….....2

Strongly dissatisfied……………………3

5. Do you like checkout system of ASDA?

Satisfied ………………………………7

Very satisfied………………………….6

Dissatisfied………………………….....1

Strongly dissatisfied……………………4

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SWOT analysis on Asda
Strength
ASDA is a powerful retail brand, sharing 16.8% of the UK grocery market
Wide range of many different products. The company has a core competence
involving its use of information technology to support its international
logistics system. Very high brand name reputation . A focused strategy is in
place for human resource management and development. Benefit from
economies of scale. As following:
• Profitable company
• Large car park
• Resource capabilities
• Lots of other facilities i.e. coffee shop, travel agents etc.
• Hours of opening

Weakness
Since ASDA sells wide variety of different products (food, clothes,
stationary) the flexibility might not be as good as competitors.
Too much employees can be internal weakness, especially in case of a strike
the products might lose their value and quality if ASDA decides to enlarge
their productivity. People might lose interest and look for a change, ASDA is
available almost everywhere, too big.
 UK/EU legislation prevent them from carrying out monopolistic practices
 Own brand products
 Larger company therefore may be difficult to control/co-ordinate activities.

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Opportunity
Opportunity to widen product range and come up with new ones (tourism -
tickets, entertainment - cinemas, theatres).Expand into European markets
Apply ASDA’s brand name capital in new areas. Tax-reduction and support
by the government. To go through a big expansion plan in order to offer
more jobs and grow overall revenue.
Come up with a new and better marketing campaign - use of celebrities and
use some money for charity. Further business expansion e.g. Mini
restaurants, range of takeaway meals.
TelCentris, offering customers access to fax, internet etc.
Cybercafé, Expand internet/home shopping – in line with need for
emergency/top up shopping

Threats
Change in consumer taste. As well as Rising labour cost.
Potential environmental threats. ASDA being constantly in UK’s TOP 3 means
that they are target of competition. Experienced... Rising costs – minimum
wage. The cost of producing many consumer products tends to have fallen
because of lower manufacturing costs. Manufacturing cost has fallen due to
outsourcing to low-cost regions of the World. This has led to price competition,
resulting in price deflation in some ranges. Intense price competition is a threat.

 Loss of business – online shopping

 Increased choice for customers – if customer service not good could to
elsewhere.
 The growth in expenses due to a statutory law or a tax-raise.
Rise in new or substitute products.

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Competition
"However based on the supporting information submitted by the applicant in the
RIA which identifies capacity for additional convenience floor space I am
prepared to accept that the proposed Asda store would improve competition and
choice for consumers and would encourage linked shopping trips between the
site and the town centre.
"The layout and design of the proposal is of a high quality and has received the
support of Architecture and Design Scotland and the housing development
would provide an acceptable residential amenity.

Recommendation
OHS evaluation is ensuring that suppliers can demonstrate that they understand
ASDA’s requirements and forms part of ASDA’s procurement standard for
goods, equipment and services. Successful completion of this evaluation
supports ASDA’s duties as “the Client” under Regulation ‘an incident and
injury free environment’ 4 of the CDM 2007. Overall I consider the layout and
design of the proposals would contribute positively to the quality of the urban
area and would not have an adverse impact on the setting of listed buildings or
the conservation area."
Among suggested conditions attached to the approval recommendation is a legal
requirement for Asda to sign an agreement to pay £8000 for open space
improvement in Forfar and £30,000 for improved traffic lights at the West Port
junction.The St James Road buildings have been fenced off and bulldozers are
due to move in shortly after Asda said it intended to begin works early next year
due to safety and vandalism fears surrounding the sprawling, disused property.
There are many different ways in which organizations can build customer
loyalty. ASDA does not use a cold approach to building relationships with
customers using promotions and activities. Instead it has developed a warm
method that uses its values by doing positive things in the community. Market
research has been done about customer insight. It has revealed that customers
are aware that the company sells products that people like and is very much
involved in the community. Such actions are helping ASDA to differentiate and
create a distinct image of the organization in the marketplace.

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http://www.thetimes100.co.uk/case-study--meeting-stakeholder-needs-through-
community-involvement--78-216-2.php

http://your.asda.com/section-contact-asda

.http://www.scribd.com/doc/44901734/Project

http://en.wikipedia.org/wiki/Asda

http://www.asda.jobs/meet-our-people/profiles/emma.html

http://www.google.co.uk/images?
hl=en&rlz=1G1ACAW_ENUK413&q=organisational+structure&um=1&ie=U
TF-
8&source=univ&ei=AxAuTeXUNsKnhAeqhMnSCQ&sa=X&oi=image_result
_group&ct=title&resnum=2&ved=0CD4QsAQwAQ&biw=1345&bih=492

http://wiki.answers.com/Q/What_are_the_business_aims_and_objectives_of_A
SDA_Plc

http://www.qualtrics.com/university/customer-needs-analysis/

http://www.tendringdc.gov.uk/TendringDC/Environment/Planning+and+Buildi
ngs/CustomerServiceStandards.htm

http://www.google.co.uk/images?
hl=en&rlz=1G1ACAW_ENUK413&q=customer+needs&um=1&ie=UTF-
8&source=univ&ei=aZ4wTbeDKJi8jAfiouyoCg&sa=X&oi=image_result_grou
p&ct=title&resnum=2&ved=0CDwQsAQwAQ&biw=1345&bih=531

http://www.farmersguardian.com/asda%E2%80%99s-
%E2%80%98commitment%E2%80%99-to-british-beef-meets-a-mixed-
reaction/12880.article

http://www.oppapers.com/essays/Swot-For-Asda/451523

http://www.thecourier.co.uk/News/Angus/article/9112/businessman-fears-asda-
s-forfar-plan-could-kill-high-street-businesses.html

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