Marketing mix of ASDA (7Ps of ASDA)
This detailed analysis of the marketing mix of ASDA explores the 7Ps (Product, Price, Place, Promotion, Process, People, and Physical Evidence) of ASDA and explains the company’s business & marketing strategies. ASDA is the third largest supermarket in the UK and has over 630 stores across the country. It employs over 145,000 people who are entrusted with serving more than 18 million customers shopping in its stores every week. It has an excellent mix of fresh food, grocery, clothing, home, leisure, and entertainment goods (ASDA, 2022).
Products in ASDA
The first element to begin the discussion on the marketing mix of ASDA with, is the retailer’s products and services. ASDA provides a wide variety of products including fresh food, grocery, clothing, home, leisure, and entertainment goods. Customers can buy fresh, chilled, and frozen food, drinks, health and beauty products, laundry and household products, clothing, outdoor and entertainment products, pet products and many more from ASDA.
ASDA’s own-label food and drink products are designed to give customers value for money as well as choice and variety. Its private-label products also include non-food items, such as clothing and health and beauty products.
ASDA offers financial services as well. Credit Card, Travel Insurance, Travel Money, and Personal Loans to name but a few of its financial services. However, it has been named the ‘most complained about’ supermarket in the UK, with an overwhelming majority of the supermarket’s Trustpilot reviews being classed as ‘negative’ where people mostly complained about its home delivery services and product quality (Sensi, 2022).
Price and pricing strategies of ASDA
Price is key element in this marketing mix of ASDA. ASDA pursues low-cost agenda in order to offer lower prices for its customers. It is committed to providing customers with outstanding value for money across its entire range of food, general merchandise, and clothing. It also offers Price Guarantee as follows: ‘If we’re not 10% cheaper than Tesco, Sainsbury’s, Morrisons, or Waitrose on your comparable grocery shop we’ll give you the difference. Guaranteed! It’s as simple as that!’ (ASDA 2022).
Place/Distribution channels of ASDA
ASDA’s place strategy focuses on ensuring that customers can easily find the products they want when they want them. In order to do this, it has established a variety of different stores across the UK, and its online presence is very good as well.
Like many other retailers, ASDA has two main channels of distribution namely online and offline. It has over 630 stores across the UK and its online platform is www.asda.com. It has a range of store formats i.e. supercentres, superstores, supermarkets, Asda Living, and Petrol Filing Stations. Supercentres are largest stores which offer extended range across food, George, and non-food, often supported by partnership offers such as photo printing specialists, banks, hairdressers, and dry cleaners (ASDA 2022).
ASDA has recently developed a partnership with Deliveroo for the rapid delivery of groceries. The initial focus is on a limited number of stores, while the long-term strategy is to offer the service across the country (Hawkins, 2022).
Promotional strategies of ASDA
Another very important component of this marketing mix of ASDA is promotion. ASDA uses television, newspapers, and other media outlets to communicate with its customers. It uses different techniques of sales promotion as well. For example, price reduction, buy one get one free, and other special offers are very common in ASDA.
Sponsorship is another promotion method used by ASDA. Its partnership with leading sports charity SportsAid is to provide funding and other support to talented British athletes. It also funds charitable projects through its charitable corporate wing ‘The ASDA Foundation’.
In addition, ASDA also uses digital marketing strategies to engage with its customers and drive sales. However, it is worth mentioning that some of its adverts have been criticised due to a number of sensitive issues.
Processes in ASDA
Process refers to a set of activities performed in order to achieve something. ASDA receives products from its suppliers and then these products are organised and kept on shelves for customers to buy. Customers pick up their products and go to customer assistants to pay. They can also use self-service machines to make payments. ASDA stores open very early in the morning and close late/around midnight. Some of the stores have 24 hours service.
People of ASDA
Approximately 145,000 people work in ASDA. The company offers both on-the-job and off-the-job training to develop employees at all levels. In order to appreciate hard work of its employees, it pays an extra amount of money for unsociable hours that run between 10.00pm and 6.00am. However, it is worth mentioning that some ASDA workers protested in the past against ‘punitive new contracts’.
Physical evidence of ASDA
Physical evidence is the last element of the marketing mix of ASDA. It refers to the elements of the physical environment visitors and customers experience. ASDA’s physical evidence includes but not limited to its stores, equipment, logo, website, and brochures. The corporate website is fantastic in its look and easy to use as well.
Summary of the marketing mix of ASDA (7Ps of ASDA)
To sum-up, ASDA’s marketing mix is designed to give customers value for money and help them save time while shopping. However, the above analysis reveals that there are both strengths and weaknesses that can be identified in its strategies. Therefore, it is important for it to review some of its marketing mix decisions so that it can reach out to more customers and make them satisfied.
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Last updated: 16 October 2022
ASDA (2022) About us, available at https://www.asdasupplier.com/about-us/about-asda (Accessed 16 October 2022)
Hawkins, E. (2022) Asda and Deliveroo partner up for rapid grocery delivery roll-out, available at: https://www.cityam.com/asda-and-deliveroo-partner-up-for-rapid-grocery-delivery-roll-out/ (accessed 15 October 2022)
Sensi, J. (2022) ASDA is ‘most complained about’ supermarket in the UK’, available at: https://www.grocerygazette.co.uk/2022/02/24/asda-negative-complain-uk/ (accessed 16 October 2022)
Photo credit: www.retail-week.com
Author: M Rahman
M Rahman writes extensively online with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.