Marketing Mix of ASDA and 7Ps (Updated 2024)

The Marketing mix of Asda analyses the 7Ps of Asda, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Asda. Asda Stores Ltd prefers to be known as ASDA and is a public limited company of British origins. It is associated with the lifestyle and retail industry as it deals in the retail sector. ASDA is a subsidiary of its parent company Walmart.

It was founded in the year 1949 and, between the years 2003-14, was ranked as Britain’s second-largest chain of supermarkets in terms of market share. Currently, it occupies the third position. ASDA faces competition from several rival companies, some of them as follows-

• Sainsbury’s
• Tesco
• Morrisons

About ASDA

• Type: British supermarket chain.
• Industry: Retail
• Founded: 1949
• Founder: Peter Asquith and Fred Asquith, and Sir Noel Stockdale
• Headquarters: England
• Area served: United Kingdom
• Key people: Lord Stuart Rose (Chairman) and Roger Burnley (Chief Operating Officer)
• Number of employees: Over 145,000

ASDA Product Strategy

ASDA is one of the leading retailers with a serious focus and wide range of product portfolios. The company also offers doorstep service to its customers by delivering merchandise.

ASDA, a major supermarket chain in the UK, offers a comprehensive and varied product mix to cater to the diverse needs of its customers.

The new Product Mix of ASDA in 2024 is as follows (Source).

1. Groceries: This encompasses a broad selection of food items, including fresh produce, dairy products, meat and fish, bakery items, frozen foods, canned and packaged goods, and international cuisine ingredients.
2. Beverages: ASDA stocks a variety of beverages, ranging from soft drinks, juices, and water to alcoholic beverages like wines, beers, and spirits.
3. Health and Beauty Products: The store offers a range of health and beauty products, including skincare, haircare, personal hygiene items, cosmetics, and over-the-counter medicines.
4. Baby Products: This includes baby food, diapers, baby care products, and accessories.
5. Clothing: ASDA’s clothing brand, George, offers a wide range of apparel for men, women, and children, including casual wear, formal wear, sportswear, and footwear.
6. Home and Garden: ASDA provides various products for home improvement, gardening, furniture, home decor, kitchenware, and electrical appliances.
7. Entertainment and Electronics: This includes DVDs, video games, books, and various electronic products like TVs, mobile phones, and cameras.
8. Toys and Games: ASDA offers a selection of toys and games for children of all ages, including outdoor play equipment.
9. Sports and Fitness Equipment: The store stocks equipment for various sports and general fitness equipment and accessories.
10. Pet Supplies: This includes pet food, grooming products, and accessories for various pets.

ASDA’s product mix is designed to be a one-stop shop for its customers, offering a wide range of products under one roof to meet a diverse customer base’s daily and special needs.

ASDA Pricing Strategy

ASDA posted its revenues and operating income at 21,666 million Pounds and 791.7 million Pounds, respectively, at the end of the financial year 2016. The company has targeted families of moderate means as its target customers and positioned itself as a reasonably priced market destination.

ASDA’s pricing strategy is critical to its market position as a value retailer, offering affordability without compromising quality. Here’s a breakdown of key elements of their approach.

1. Everyday Low Pricing (EDLP): ASDA is renowned for its EDLP strategy, which aims to corner low prices on a wide range of products consistently. This approach builds customer trust and loyalty, as shoppers are assured of finding competitive prices without the need for constant sales or promotions.
2. Price Match Guarantees: ASDA often employs price matching tactics, assuring customers they won’t pay more than other supermarkets. This strategy reinforces their commitment to affordability and encourages customers to choose ASDA over competitors.
3. Promotional Pricing: While ASDA focuses on EDLP, they also use promotional pricing strategies such as special offers, multi-buy deals, and discounts on seasonal items. These promotions are strategically employed to increase foot traffic, clear inventory, and drive sales in specific product categories.
4. Private Label Pricing: ASDA’s brand products, including the George clothing line, are priced competitively to provide affordable alternatives to name-brand products. This private label strategy caters to price-sensitive customers and improves profit margins through lower marketing and distribution costs.
5. Dynamic Pricing in E-Commerce: In its online platform, ASDA may use dynamic pricing models to adjust prices based on demand, competition, and inventory levels. This flexibility allows ASDA to remain competitive in the fast-paced online retail market.
6. Price Differentiation Based on Store Format and Location: ASDA may vary its pricing based on the store format and location, with prices in convenience stores potentially being slightly higher than in supercentres due to the differences in operating costs and consumer buying behavior.
7. Psychological Pricing: ASDA uses psychological pricing strategies, like pricing items just below a whole number (e.g., £9.99 instead of £10.00) to make prices appear more attractive and encourage purchases.

Through these strategies, ASDA successfully positions itself as a customer-friendly retailer, attracting a broad customer base with its promise of affordability, value for money, and price consistency across a wide range of products.

ASDA Place Strategy

ASDA is a giant retailer with its headquarters in Leeds, West Yorkshire. The company opened its first self-service supermarket in Castleford and another in Edlington. By the 1970s, the company followed a rapid expansion plan that included stores in almost every part of the United Kingdom. ASDA has outlets like Barnstaple, Stantonbury, Lewisham, Newport, Selsey, Raunds, and Norwich.

At the onset, ASDA built simple and fresh stores, but after its merger with Walmart, it started emphasizing more footprints. Its average store is at least 20% bigger than its competitors. ASDA has several store formats depending on a customer’s needs and location.

Here’s the place strategy of ASDA.

1. Nationwide Store Network: ASDA operates a vast network of stores across the UK, including supercentres, supermarkets, and smaller convenience stores. This extensive presence ensures easy accessibility for a wide range of customers, from urban dwellers to those in suburban and rural areas.
2. Online Shopping and Delivery Services: Recognizing the growing trend of online shopping, ASDA offers a robust online platform where customers can shop for groceries and other products. The company provides convenient home delivery services and click-and-collect options, catering to the evolving needs of digital consumers.
3. Strategic Store Locations: ASDA stores are strategically located in high-traffic areas, including city centers, residential areas, and major transport hubs. This placement is designed to maximize footfall and convenience for shoppers.
4. Partnership with Third-party Retailers and Services: ASDA collaborates with third-party retailers and service providers within its large stores. These partnerships, which may include banks, opticians, or fast-food outlets, enhance the overall shopping experience and draw in a broader customer base.
5. Integration with Walmart’s Global Supply Chain: ASDA benefits from the global retail giant’s extensive supply chain and logistics network as part of the Walmart family. This integration allows ASDA to manage inventory efficiently, keep costs down, and ensure a consistent supply of products.

ASDA Promotion Strategy

ASDA strongly believes that the way to success is an aggressive marketing policy. It has created eye-catching commercials advertised via newspapers, leaflets, billboards, hoardings, television channels, internet, and radio.

It also uses social media platforms like its official website, YouTube, and Facebook page to create positive brand equity. It announces periodic discounts and incentives as part of its promotional and marketing strategy. This helps retain its hold over its loyal customers and creates a further consumer base.

ASDA recognizes the power of celebrity endorsements, and its marketing department has roped in numerous famous personalities as part of its promotional strategies, like Leonard Rossiter, Michael Owen, Julie Walters, James Bolam, Paula Wilcox, Richard Beckinsale, Victoria Wood, and Hattie Jacques.

ASDA promotes various aspects of its brand under its descriptive taglines like ‘Save Money Live Better’; ‘All Together Better’; One Trip and you’re Laughing; ASDA be ASDA and Saving your money daily. ASDA has entered into several sponsorship deals to increase its brand visibility.

The company sponsored Sheffield Wednesday F. C. from 1990 to 1992, Kwik cricket for kids, and Accrington Stanley in 1998-99 seasons. In 1997, the Spice Girls entered a deal with ASDA and licensed their image and name to the company. ASDA’s marketing strategy recognizes its social and corporate responsibility.

It is a part of the Ethical Trading Initiative and works towards better conditions for workers. The company supports charities like Children in Need, Tickled Pink, Fields in Trust, and ASDA Foundation. ASDA was declared Innovative Employer of the Year Award for its commendable business initiatives in 2009.

Some Recent Video ads and Print ads for ASDA are:

ASDA People Strategy

When discussing the “People” aspect of the service marketing mix for ASDA, it’s essential to focus on how employees, customer service, and the overall customer experience are managed. ASDA, one of the UK’s leading retailers, emphasizes a customer-centric approach and values its workforce highly, recognizing that they play a crucial role in delivering value to customers. Here are critical points on the “People” element of ASDA’s service marketing mix:

1. Employee Training and Development: ASDA invests in comprehensive training programs for its employees to ensure they possess the necessary skills and knowledge to provide excellent customer service. This includes product knowledge, customer service training, and leadership development programs for those in managerial positions.
2. Customer Service Philosophy: The company promotes a customer-first philosophy, encouraging employees to go above and beyond in assisting customers. This philosophy is embedded in the company’s culture, ensuring customer satisfaction is prioritized across all levels of the organization.
3. Staff Engagement and Motivation: ASDA keeps its workforce engaged and motivated. This includes competitive compensation, benefits, recognition programs, and opportunities for career advancement. A satisfied and motivated workforce translates into better customer service.
4. Diverse and Inclusive Work Environment: The company is committed to creating a diverse and inclusive work environment where all employees feel valued and respected. This diversity enriches the shopping experience for customers, as it brings a wide range of perspectives and ideas to the company.
5. Use of Technology to Enhance Service: ASDA leverages technology for operational efficiency and to improve the service experience. This includes training employees to use technology like self-checkout systems, online ordering platforms, and mobile apps, enabling them to assist customers more effectively.
6. Feedback Mechanisms: ASDA has established mechanisms for collecting employee and customer feedback. This feedback continuously improves service delivery, employee welfare, and customer satisfaction.
7. Community Engagement: Employees are encouraged to participate in community engagement initiatives. This helps build a positive brand image and fosters a sense of purpose and belonging among employees, which can enhance their performance and commitment to customer service.
8. Health and Safety: The company prioritizes its employees’ and customers’ health and safety, ensuring that its stores and facilities adhere to the highest standards. This commitment is critical for maintaining the trust and ensuring a safe shopping environment.

ASDA Process Strategy

The “Process” aspect of the service marketing mix for ASDA encompasses the flow of activities that customers experience, the efficiency of service delivery, and the mechanisms in place to support the customer journey. It is a critical component that impacts customer satisfaction and operational efficiency. Here are key points on the “Process” element of ASDA’s service marketing mix:

1. Streamlined Shopping Experience: ASDA has optimized its in-store and online shopping processes to ensure a smooth and efficient customer journey. This includes clear store signage, an intuitive online shopping platform, and mobile app functionality for easy navigation and purchase.
2. Checkout Efficiency: The company employs multiple strategies to minimize wait times at checkouts, including self-checkout options, mobile payment solutions, and adequate staffing during peak hours. This enhances the shopping experience by reducing customer frustration associated with long waiting times.
3. Supply Chain Management: ASDA’s robust supply chain management ensures that products are available when and where customers need them. This involves sophisticated logistics, inventory management, and distribution strategies to keep shelves stocked and reduce out-of-stock scenarios.
4. Customer Service and Support: ASDA provides multiple channels for customer service and support, including in-store assistance, online chatbots, email support, and a customer service hotline. These processes are designed to address customer inquiries and issues promptly and effectively.
5. Online Ordering and Delivery: The company offers a streamlined process for online ordering, including a user-friendly website and mobile app, various delivery slots to suit customer schedules and click-and-collect services. This flexibility caters to the convenience needs of ASDA’s diverse customer base.
6. Returns and Refunds: ASDA has a clear and straightforward process for returns and refunds, allowing customers to return products in-store or via mail, depending on the purchase method. This policy is designed to build customer trust and satisfaction.
7. Feedback Mechanisms: The retailer has implemented efficient processes for collecting and analyzing customer feedback, using this information to improve service delivery continually. This includes surveys, feedback forms, and social media monitoring.
8. Employee Role in Service Delivery: Employees are trained to understand their critical role in service delivery, from stocking shelves to handling customer inquiries. This ensures that every step of the customer journey is supported by knowledgeable and helpful staff.
9. Health and Safety Protocols: In response to challenges like the COVID-19 pandemic, ASDA has put rigorous health and safety processes in place to protect customers and employees. This includes sanitation stations, social distancing measures, and contactless transactions.
10. Technology Integration: ASDA continuously integrates technology to improve service processes, including data analytics for inventory management, electronic shelf labels for pricing accuracy, and AI for enhancing the online shopping experience.

ASDA Physical Evidence Strategy

The “Physical Evidence” aspect of the service marketing mix refers to the tangible and intangible elements that customers use to evaluate the service quality before, during, and after a purchase. For ASDA, a leading UK supermarket chain, physical evidence plays a crucial role in shaping perceptions of the brand and influencing customer satisfaction and loyalty. Here are key points on the “Physical Evidence” element of ASDA’s service marketing mix:

1. Store Layout and Design: ASDA’s stores are designed to be welcoming and easy to navigate, with clear signage and a layout that guides customers through different sections. The design and organization of the store play a significant role in enhancing the shopping experience.
2. Cleanliness and Maintenance: The cleanliness of stores, including shelves, floors, and facilities like restrooms, is meticulously maintained. This ensures a pleasant shopping environment and reflects the company’s commitment to high standards.
3. Branding Elements: ASDA’s branding elements, such as its logo, color scheme, and uniforms, are consistently applied across all touchpoints. These visual cues help in creating a recognizable and reassuring presence for customers.
4. Online Presence: The design and functionality of ASDA’s website and mobile app provide physical evidence of its service quality. An intuitive interface, comprehensive product information, and secure payment systems create a positive online shopping experience.
5. Product Presentation: The presentation of products on shelves and in promotional displays is carefully managed to be appealing and informative, providing customers with easy access to prices, product benefits, and other relevant information.
6. Checkout Areas: Checkout areas are designed for efficiency and comfort, with self-service or cashier-assisted checkout options. The physical setup, including the availability of packing areas and the presence of impulse purchase items, is strategically planned.
7. Parking and Accessibility: The availability and condition of parking facilities, along with accessible entrances and exits, are essential physical evidence elements that affect convenience and satisfaction for in-store shoppers.
8. In-Store Atmosphere: Elements such as lighting, music, and temperature are controlled to create a comfortable shopping atmosphere. These sensory aspects of the physical environment can significantly impact the customer’s mood and shopping behavior.
9. Signage and Informational Displays: Informational and directional signage throughout the stores helps customers find products and departments, understand promotions, and navigate the store efficiently.
10. Safety Measures: Visible health and safety measures, especially in response to the COVID-19 pandemic, are physical evidence of ASDA’s commitment to customer and employee well-being. This includes sanitation stations, social distancing markers, and checkout protective screens.
11. Community and Social Responsibility Initiatives: Physical evidence of ASDA’s involvement in community and environmental initiatives, such as in-store recycling points or information about local charity partnerships, reinforces the brand’s values and ethical stance.

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