• Developing a New Product Line for a Supermarket

    Pages: 12

    This 12 page paper examines how a new product line for a supermarket may be identified and then launched, The paper, using Asda, a UK supermarket chain owned by Wal-Mart, may under take this. The process begins with considering the position of the company, their target market and who their customers are. A SWOT analysis is used to examines the current situation, this along with examination of their market position leads to the advice that life insurance may be a logical brand extensions. The issues of brand extension are also covered and a PEST analysis is then conducted to test proposal before recommendations are made. The bibliography cites 10 sources.

    File: TS14_TEasdanp.rtf

    Send Me This Paper »

     

    Sample Text:
    attract both their attention and purchases. This is true for small companies and larger well known companies. Once a name is known then the initial emphasis may develop into maintenance  advertising. For companies such as supermarkets like Asda there may be several marketing projects being undertaken at the same time. The important factor when this occurs is that marketing activities  do not create customer confusion. If a new product is being developed then the same need is apparent, consumer confusion may reduce the level of ales not only for  the new product, but also for the existing brand products. To decide what new products or brand extensions may be appropriate the company needs to understand its one poison within  the marketplace, its strengths and weaknesses and the way that the brand extension will add or influence the current products and services. Asda is now owned by Wal-Mart. The  purchase may be seen as adding strength in term of purchasing power and financial stability, however, this is very much a bilateral benefit, as the higher level of profitably of  Asda also support Wal-Marts own figures. In the UK the supermarket has second position to Tesco and Sainsbury with a 13.5% share of the market, compared to Sainsburys 15.8% and  Tescos 22.5% in October 2002 (Harrington, 2002). However, out of these top three it was the only supermarket to show growth in the thirds quarter of the year, Sainsbury fell  by 0.8% and Tesco remained steady (Harrington, 2002). Over the year Asda is also the only supermarket to increase its supermarket share out of the major players, with an overall  0.6% increase. The market position is relatively strong, but the target market also needs to be understood in terms of the 

    Back to Results