Essay Analysis of U.K Supermarket Development Strategy

3561 Words Jul 23rd, 2006 15 Pages
Part one: Supermarket retail industry introduction

Effective strategy is developed first by identifying and understanding the implications of the changing events in the business environment. Many of the events occurring currently have a wide international impact, and they may be seen to be influencing the results and responses of large supermarket retailers. The changes, or issues, that we see as important from a strategic planning perspective are:
 The growth of global companies
 Changing customer characteristics
 Innovation, format changes
 Customer loyalty
 People
 The impact of information sciences and technology(David Walters & Jack Hanrahan 2002)

1. The growth of global
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In another word, it chooses target customer according to their social class, terminal education age and income.

Social Class Categorization (David Jobber 2004)
Social Grade Social Status Occupation Percentage in UK population
(all adults over 15 years old)
A Upper middle class Higher managerial, administrative or professional 3.2
B Middle class Intermediate managerial, administrative or professional 20.5
C1 Lower middle class Supervisory or clerical, and junior managerial, administrative or professional 27.7
C2 Skilled working class Skilled manual workers 20.9
D Working class Semi-skilled or unskilled manual workers 17.6
E Those at lowest level of subsistence State pensioners or widows(no other earner), casual or lowest-grade workers 10 Based upon grades of the chief income earner
Source: National Readership Survey, July 2001-June 2002

Based on the Video showed during class, the target customers of ASDA (Wal-Mart) are from C1to D which covers 66.2% of UK population (all adults over 15 years old). The larger range of target group, the more chance winning the market share .In the video, the marketing researcher is required to simulate the image of the customer consuming in different supermarkets. The ultimate picture for ASDA (Wal-mart) is a potbellied middle-aged man. This

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