In order to understand marketing environment, it is important for companies to deal with customers effectively. According to Kotler, A companys marketing environment consists of the actors and forces outside marketing that affect marketing managements ability to develop and maintain successful relationship with its target customers. (2008, page 179) The activities of companies are affected by several environment factors, such technological, political, cultural, economic, and so on. Amongst these environment factors, Asdas case is related with economic and socio-cultural environment. Marketing management cannot always control environmental forces. (Kotler 2008, page 223) This term is true while we consider Asda case and the Christmas. Before we start analysing, we have to understand the environment (Christmas) and what this period means to Asda and consumers. Christmas is a creative overdrive period as the business tries to charm people who have saved their pennies over the months and entice them to buy products as the gift for someone they love. Since buying gifts is surely on consumers minds, companies try more effort on selling their goods than usual because they want to get as much revenue by the end of the year as possible, or because it is the busiest shopping season of the year and they want to help their business show a profit. Marketing the business during this season is essential, and the tactics which the companies use to attract more business could mean the difference between a profitable year and an unprofitable year overall. In this season, people might come up with certain words, end of year discounts, holiday season clearance or giving gifts to end the year. Christmas and the end of the year, while its just a day on the calendar, it has a strong emotional effect on people. This is the perfect time to affiliate with their psyche. Whether companies are selling consulting services, computers, or cars, end of the year is an ideal time to cross sell and up sell the products and services. It all depends on firms target market. In responding to the environment, Kotler said, smart marketing managers will take a proactive stance rather than reactive approach to the marketing environment (Kotler, 2008, page 223) and surely, Asda is being proactive in this Christmas.
However, Uncontrollable obstacles may occur when targeting Christmas season. We face Christmas every year but the Christmas market is different every time. It means that economy, trends and other environmental factors fully affect the market and it is hard to predict. This years major concern is the global recession. From the 2008 bankruptcy of Lehman Brothers which sent gigantic shock-wave throughout world economy, consumers tend not to open their purses.
The NPD Group, Inc., a market research company, announced the results of their annual survey of consumers holiday spending intentions which shows us that, due to the global recession, planning to spend less section has increased to 30% which is 4% higher than the last year.
Asda has a differentiation and positioning strategy to fight with the global recession (environmental forces) and its competitors which can be developed to competitive advantages. Differentiation is the process which makes differences from other competitors to create superior customer value (Kotler, 2008 page 157). Positioning is arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers. (Kotler, 2008, page 157). Kotler summarised as follows, To the extent that a company can differentiate and position itself as providing superior value, it gains competitive advantage. (Kotler, 2008, page 436) It means, through positioning strategy, the company may have stronger advantages than its competitors. Asda achieved competitive strategy against other grocers such as Tesco, Marks & Spencer and Morrisons by creating different offer which is differentiated promotion and cost leadership. Although Asda is having a heavy competition with its competitors, they might easily win this Christmass competitive advantage.