INTRODUCTION
In this study the initial focus has been given how personal selling can support promotional mix of ASDA and transformation of from push strategy to pull strategy. Buyer Behavior and Decision Making Process at Asda has been discussed, key Roles of Sales Teams in the Marketing Strategy of Asda have been elaborated, Developing Sales Strategies In Line With Corporate Objectives of Asda is the point that emphasize about interrelation of sales strategy with corporate objectives. Significance of Recruitment and Selection Procedure at Asda explain the category of talents that the company needs the most. The Application of Motivation, Remuneration and Training in Sales Management is necessary towards smooth functioning of Asda store and how several aspects that control and impact effective Sales Management in the company.
About Asda
Asda Stores Ltd. (ASDA) has been a British-based supermarket chain (American owned) that retails food, general merchandise, clothing, toys, beauty products as well as financial services (Case study, n.d.).
PERSONAL SELLING IN PROMOTIONAL MIX
According to Adebisi (2006) promotional mix is any effort towards marketing which is directed towards informing or persuading existing or potential customers regarding benefit of a product. The aim of persuading a customer remains either make them start or continuing buying of an organization’s product.
American Marketing Association has explained that personal selling remains a verbal presentation towards a conversation which has one or more prospective buyers. During the entry level of product distribution personal selling can also be applied at each distribution level. But, Robert and Porter et al. (2004) have argued that cost of such sales staff remains high.
Personal selling is significant in promotional mix that has been emphasized by ASDA- this is a concept where business use people (i.e. sales force) in selling their supermarket products after direct or face to face meeting with the customers. The ASDA promotes supermarket product by its staffs having specialist product knowledge, right attitude as well as appearance. The aim of personal selling is to inform as well as inspire the consumers to buy, or at least try a product. The customers obtain advice about how to use such the products as well as can try various products (Figure 1). Products that have comparatively high prices or having complex features often get sold with the use of personal selling (The Guardian, 2015).
As argued by Ferrell et al. (2010) it is not always necessary to have face to face communication in Personal Selling. The best instance of Personal selling may be conducted through telephone. Though sale through phone can be done some time, the growing aspect of direct marketing has pushed such technique of selling towards the top. Such business process presently called as telemarketing which is became very popular.
Figure 1: Process of Personal Selling
Source: Chris (2006)
According to the argument of De Pelsmacker et al. (2010) Personal Selling may not be sometimes considered to remain a respected profession in several countries. Such concept is generally in or vocational schools or business schools instead of universities, and therefore, quality of sales is outer the United States is anything however exemplary. For instance, in Brazil, sellers are not too good by American standards.
On the other hand side, Frampton (2012) has stated that personal communication during personal selling is efficient and flexible. A retailer may use such message towards capability of customers to understand about the offer during the presentation as well as persuade to attract attention of all five senses. Whereas, impersonal communication may have a gap in product knowledge by the customers buying a product or brand for the first time (Figure 1). Thus, personal selling can increase support ASDA at supermarket sale.
Push and Pull Strategy
When company fails to recognize a new channel as well as keep using traditional strategy, it may lead to failure- such mistake was made by Walmart towards its marketing campaign in Facebook. Walmart could not be able to adjust its marketing strategies to social network environment. Walmart (ASDA) got limited feedback as well as interaction from their community people and made effort to push a recurrent marketing message through a manner of customary offline marketing campaign. ASDA’s competitors, on the other hand, developed a “pull” marketing strategy, took time in understanding customers need to work on Facebook as well as creating a more interactive site towards customer dialogue. Competitors like Target could attract users more than three times compared to Walmart did (Capgemini, 2011).
Push and pull strategies have been supporting many brands to market their products or brands successfully. ASDA must understand that social channels have been changing the aspect of marketing from a push strategy to a pull strategy environment since consumers reach out by means of several social channels to obtain information they require. It is opposite to “push” marketing messages provided by customary channels. Consumers growingly prefer to remain engaged with organizations by means community based interactions as well as the best practices to do that ASDA must follow pull strategy (Capgemini, 2011).
BUYER BEHAVIOR AND DECISION MAKING PROCESS AT ASDA
According to Chris (2006) analyzing customer behavior should be perceived as keystone of any successful marketing strategy. Buyer behavior remains mental as well as emotional procedure as well as recognizable consumer behavior at the time of looking for buying as well as after consumption of a product (Batra and Kazmi, 2004). Likewise, Fill (2009) has referred that consumer behavior is an action as well as consumer decision making process those buy goods for personal their personal consumption.
Figure 2: The Consumer Buying Decision Sequence
Source: Froggett (2005)
ASDA needs to appreciate the way customers buy their private label brands as well as the type of role such brands may play in augmenting their lifestyle and impacting buyer behavior. Such ‘superstore’ format, characteristically trade up from 4,000m2, stances a problem towards both the ASDA as well as its customers, because customers of ASDA are offered with a wide-ranging selection of brands. Predicting an extended scenario of problem solving, it needs to be decided by the sales team how ASDA can successfully impact consumer buying decision making process towards the phase of need recognition (Figure 2) as well as stage of information search (BBC, 2015).
Figure 3: Matching ASDA Private Label Brands with Consumer Needs
Source: Froggett (2005)
It may be considered that the way Maslow’s hierarchy needs (Figure 3) has been transformed into an environment of brand. ASDA has reformed their model to demonstrate how brands can meet requirements of the consumers at various levels of the hierarchy. ASDA is having a portfolio towards private label brands in the areas of food, health as well as beauty apart from household product segments. ASDA should track changes in buyers’ needs which is a socio-economic profiling (Froggett, 2005).
The search of information or acquisition of information in the ‘superstore’ retail environment which is categorized by the exposure of consumers to several environmental inducements. Provided that average supermarket buyers pass by around 300 products each minute (Kotter, 2003), ASDA should understand that consumers may pick up some stimulus factors linked to packaging design since being the most pertinent towards retail environment (case study, n.d.).
ASDA’s earlier spending on the website of the company was targeted to impact consumer decision making process and it resulted to a growth in double-digit and It is the key reason towards new investment. It grew home shopping experiences and the company employed more sales staff to fulfill the consumer demands. For example, ASDA expanded its Click and Collect service towards its George clothing brand and towards general merchandise items in 568 supermarkets UK.
Consumers remain able to obtain groceries from almost 200 additional store by the year ending. Such move adds towards Collect Plus promotion of ASDA, by which people may pay towards items online as well as pick them up (as well as return them) from UK’s 5,000 convenience stores as well as petrol stations which gave the best consumer buying experience to ASDA (Case Study, n.d.).
VARIOUS ROLES OF SALES TEAMS IN THE MARKETING STRATEGY OF ASDA
Giving consumers great service experience by sales team begins with knowing and understanding customers at supermarket; however, knowing it remains beginning of such journey as well as one requires delivering more than something called customer service. To remain successful one should provide world-class customer service; sales team need to play additional roles by going extra mile towards their customers. The sales team should constantly make effort to deliver something extra than the customers expect every time. By conducting this every time sales team of ASDA need to interact with customers to win them as well as convert them as loyal customer during a long period of time (Atom, 2015).
The key retail value to master remains the customer and sales team must be the centre of ASDA’s business as well as everything the company does should revolve around such customer. Understanding them as well as focusing upon them towards everything the company does would assist ASDA to grow its business as well as its team (Atom, 2015).
The major roles include (Walmart, 2014):
- Actively drive customers as well as retail sales growth of ASDA
- Execute marketing strategies to fulfill company objectives
- Assess customer, competitor data, market conditions, as well as implement marketing strategies and changes as required
- Should understand overall marketing, advertising as well as promotional activities conducted at ASDA stores
- To manage and lead a small sales team
- Remain accountable towards creation as well as execution of plans towards new customer acquisition, existing customer loyalty as well as retail sales growth
- Must perform closely with the retail sales team on strategic marketing plans
- Show high level skills in marketing as well as must possess all new product knowledge introduced by ASDA
- Must maintain brand guidelines by means of each consumer touch point
- should play an active role to manage sales budget. For delivering every marketing task within the established budget
- Attaining achieve timely, frequent as well as positive media coverage throughout every available media in combination with a PR activity
- Should analyze prospective strategic partner relations towards product
- Supporting Marketing role within ASDA.
DEVELOPING SALES STRATEGIES IN LINE WITH CORPORATE OBJECTIVES: ASDA
The strategy of Asda is centred upon the mission, values and purpose that can guide the company like as it is making attempt towards business even better. The strategic framework may be structured towards four quadrants, emphasized upon benefiting the consumers, operating model of the company, colleagues and shareholder of Asda. The corporate strategy of Asda is directed towards redefining value towards UK retail. The company is going to rebase pricing strategy to obtain a market leading value proposition. Such low cost operating model keeps the company towards huge benefit over the competition (Lawson, 2013).
According to Lamb (2010) managing customers’ relationship must be integrated in corporate objectives to enhance sales operation as it impacts on market share of the business since allows segmentation depending on consumer’s economic value, builds retention efforts as well as customer acquisition as well as assists in offering right products as well as services towards right customer. Chris (2006) have stated that few important planning that customer relationship management plays in meeting corporate objectives like improvement in sales force, its efficiency and effectiveness, interpretation of customer support, decrease in cost-to-serve, rise in product differentiation improvement towards pricing policy. According to Jones, and Jones (2005), as the company set sales strategy, this is having a crucial segment in term of its growing market share. When providing customized products sustaining a good relationship with store customers enables a company to grow its market share.
Consumers select Walmart for the comprehensive assortment, including national brands as well as locally pertinent merchandise towards everyday low prices (EDLP). This is the winning formula as well as outcomes in continuous market share attained in major segments like apparel, food, consumables, and apparel and over-the-counter. Such merchant outlook helps ASDA to partner with suppliers towards increasing product innovation as well as bringing exciting new brands to the stores.
ASDA operates in supercenters e-commerce sites, Sam’s Clubs as well as several other layouts which enables the company to serve their customers. As the company build combination of digital as well as physical interaction with such consumers, it remains well positioned to develop. The company is laser-focused towards providing improved equivalent store sales strategies through sharpening their merchandising efforts, enhancing customer service and price leadership. Asda is planning to create transformative growth through adding competences in e-commerce as well as mobile commerce. Asda must perceive their business through the eyes of their consumers, they should not consider stores, clubs and websites independently. Rather, the company’s goal remains making consumers viewing such channels meet like one unified relationship with us. Asda prefers delivering a pertinent, personalized as well as seamless experience throughout all channels (Walmart, 2014).
Reaching targeted audience may be demonstrated towards remaining in line with the sales objective of the company. The study of Pelsmacker (2009) has indicated that that even when such company does not make profit through the highest market share, the value added program such as should be communicated to the store consumers that could positively impact its sales.
SIGNIFICANCE OF RECRUITMENT AND SELECTION PROCEDURE AT ASDA
Recruitment of right candidates play a great role towards execution of Asda’s strategies that are vital towards long-term success, the company should recruit, develop as well as retain the best as well as talented staffs at each level of the organization. It denotes executives, managers as well as front-line associates which conventionally structure the levels of a key retailer. However, the company also need to engage technology specialists, entrepreneurs, data scientists and Internet professionals to provide efficient service to the business. Presently, Walmart is having above 2,500 associates having such skills in Silicon Valley, Brazil, China and India. Such people are among the most encouraged as well as inspiring associates anywhere in the company (Walmart, 2013).
THE APPLICATION OF MOTIVATION, REMUNERATION AND TRAINING IN SALES MANAGEMENT: ASDA
One of the company’s core business values remains that all employees are colleagues, one team as well as it remains at the heart of all that the company does. The company believes in engaging colleagues as well as keeping employees motivated towards central objectives of the business. The process to give consumers “service with personality” remains once it comes through the heart of motivated sales people who are suitably compensated as well as it may only be attained once people enjoy their work as well as sense they are well paid, valued and respected.
Once U.S. retail major Wal-Mart purchased ASDA, which is the UK supermarket chain, the merely certainty could remain- change. Initially, it was IT system of ASDA, that to be transformed to Wal-Mart’s system to manage sales data. It is human resources department that recognized this was facing a strong challenge— about the way it might ensure that change happens without any damaging impact upon staff loyalty as well as commitment. Bravely, opportunities could be seized by HR to go beyond these systems demands change alone as well as introduced a company-wide reinvention as well as procedure of organizational change training program that will sustain colleagues throughout the entire phase of uncertainty. ASDA could introduce a change process throughout the organization—to identify an innovative, intriguing as well as swift process to make an organization productive and develop committed employees through training which love what they perform (The Ken Blanchard Companies, 2015).
To create training sessions very interesting as well as memorable as much possible, the team has the aim to avoid, as much as they could, anything that can resemble as a “normal” training program. It comprises initial announcement of such procedure, where colleagues were sent a card containing inspiring words. Once such card is opened, it shows the training event for the employees at ASDA (The Ken Blanchard Companies, 2015).
While experiencing change process, Walmart has been voted as number one employer of choice as indicated by the survey done by The Sunday Times, which is a leading British newspaper. At presently, 80% of the employees believe that management listens and understands their requirements and this led to managing sales, Walmart has exceptionally performed well throughout such UK retail segments towards growth during last two years, having a profit goals good ahead of plan (The Ken Blanchard Companies, 2015).
SALES MANAGEMENT
Sales Activity at ASDA to Control Sales Output
Global E-commerce
ASDA is driving growing sales through developing world class technologies in e-commerce, like the advanced search engine in walmart.com that is enabled through new global technology platform which the company is presently starting to deploy (The Guardian, 2015).
The performance of Asda may be boosted through its online operations. Such retailer remains rolling out click and collect points for buyers, it allows customers to collect orders of online grocery as well as expects such service to increase from 10pc of overall online orders to 30pc by five years. Product innovation, low prices as well as customer service remains heart of its business and sales activity to get desired output to make the strategy successful. E- Commerce site has b been introduced in many countries like UK to manage the sales as well as the company is aggressively making investment in the markets which show the highest opportunities in sales growth. Asda showed a 0.5 per cent increase in like-for-like sales within 10 weeks during the end phase of June in 2014(Reynolds, 2014).
Use of Database Marketing
Highlighting that loyalty cards usage as well as database marketing techniques are adopted by UK retailers to manage and control sales. ASDA must adopt more transformational relationship marketing and loyalty programs to manage sales to develop more customer loyalty as well as retention as well as create longer-term relationships to attain higher profits (The Guardian, 2015).
Channel Strategy to Boost Sales
With the context of increasing as well as changing channel selections as well as sales opportunity that they may provide, an exciting requirements are there that ASDA must capitalize towards channel mix in driving growing business growth towards their products. Emphasizing on right channel strategy as well as understanding channel expectations of the consumers remain a vital input to boost sales (Capgemini, 2011).
CONCLUSION AND RECOMMENDATION
Finally it can be said at entry level of product distribution personal selling can be very useful at supermarket. As ASDA’s competitors developed a “pull” marketing strategy and slowly started understanding customers’ needs to work on Facebook as well as creating a more interactive site, Asda must takes this into consideration while doing sales planning. Consumer decision making process will improve as they will be able to obtain groceries from almost 200 additional store by the end of this year. The company is going to rebase pricing strategy to obtain a market leading value proposition. Managing customer relationship must be integrated in corporate objectives to enhance sales operation at Asda as consumers select Walmart for the comprehensive assortment. The company should continue to engage colleagues as well as keep employees motivated towards central objectives of the business to manage its competitive sales team.
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