You may already know that marketing mix is a very important topic in marketing. Edmund McCarthy has identified four key elements of the marketing mix namely product, price, place and promotion. This is also known as the 4Ps of marketing. However, the extended marketing mix consists of 7Ps. This article focuses on the marketing mix of ASDA.
Introduction to ASDA
ASDA is the second largest supermarket in the UK. It has over 525 stores across the UK and has been part of the Wal-Mart family since 1999; however, the company’s roots can be traced back to the 1920s. ASDA employs 160,000 people entrusted with serving more than 18 million customers who shop in ASDA stores every week. It has an excellent mix of fresh food, grocery, clothing, home, leisure and entertainment goods (ASDA, 2017).
Marketing mix of ASDA
This article analyses 7Ps of ASDA (Product, Price, Place, Promotion, Process, People, and Physical Evidence) and explains the company’s business & marketing strategies.
The first element to begin the discussion on the marketing mix of ASDA with is its 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. The company has financial services as well. Credit Card, Travel Insurance, Travel Money, and Personal Loans are to name but a few financial services 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 (McKenna, 2008). 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 2015).
Like many other retailers, ASDA has two main channels of distribution namely online and offline. The company has over 525 stores across the UK and its online platform is http www.asda.com. ASDA 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 concessions such as food service offers, banks, hairdressers and dry cleaners (ASDA 2017).
ASDA uses television, newspapers, and other media outlets to communicate with its customers. The company 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 way promotion used by the company. ASDA partnered with leading sports charity SportsAid in 2008 to provide funding and other support to talented British athletes. It also funds charitable projects through its charitable corporate wing ‘The ASDA Foundation’.
Process refers to a set of activities performed in order to achieve something. ASDA receive 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. The 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.
Approximately 160,000 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, ASDA pays an extra £2.04 for unsociable hours that run between 10.00pm and 6.00am. The company is also offering members of staff a higher wage in exchange for a new contract which will introduce unpaid breaks and a requirement to work over Bank Holidays (Jordan, 2017)
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 ASDA website is fantastic in its look and easy to use.
The article publication date: 14 July 2017
ASDA (2017) About us, available at https://www.asdasupplier.com/about-us/about-asda (Accessed 12 July 2017)
Jordan, D. (2017) Asda offers staff a pay rise for ‘flexible’ contract, available at http://www.bbc.co.uk/news/business-39257259 (Accessed 12 July 2017)
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 is a graduate of Leeds Metropolitan University and London South Bank University.