ASDA Marketing Strategy Case Study

ASDA Stores Ltd is a British supermarket with headquarters in Leeds, West Yorkshire. As the second-largest supermarket in the UK, the company is founded in 1949. It is a huge retailing company that sells food, clothing, electronics, toys, home furnishings and a range of financial services too with a name called ‘ASDA Money’. The company was close to bankruptcy in the 1990s but able to survive after being supported and takeover by Walmart.

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So, in this ASDA marketing strategy case study, we are going to discuss the marketing strategy of ASDA with an analysis of their market through the marketing mix concept. With the detailed analysis of the marketing segmentation and goals and target of the company, we will understand how ASDA strives for success.

ASDA Marketing Mix Strategy

Marketing is an important aspect of any business organization and through a unique marketing strategy, the company can reach its potential consumers effectively in order to present its products and services. To maximize the profit of the products and services, the business company has to focus on delivering the right products at the right place at consumer-friendly prices.

Therefore, the concept of 4p’s of marketing comes in this ASDA strategy analysis where the company needs to focus on the product, place, promotion, and price. Let’s see how ASDA has followed these elements of marketing mix throughout their journey and achieved their objectives and goals for the success that they have today


The product of the company is can be a good or service that they sell to their customers. The ASDA stores deal with a lot of products that they sell. Through ASDA marketing plan, they have decided what products need to be sold. Thus, the company is doing a great job with its variety of essential items in the market.

ASDA’s product portfolio has dominated supermarket industries and also started to diversify their market into clothing stores and selling petrol too. ASDA has moved into merchandise, household items and developed supercenters, hypermarkets, and a store of ASDA Essential.

Thus, to understand the life cycle of the products and acceptance of certain products in certain areas, the company gets a competitive edge through their step into different markets and not limiting itself to only selling one type of product. As a result, they made their marketing stance much stronger which becomes one of the reasons for their huge success.


The place is the area or location where a company sells its products. Choosing the right location of the products has its own importance in marketing. According to the ASDA business model, they sold a lot of household items like food and non-food products in the areas where the products demands are huge among most of the population.

The company believes in selling various products together in one place which is better to maximize distribution and transportation. Allowing their products to sell into rural and suburban areas gives the company a competitive edge as the stores are the essential needs at these places. After the collaboration with Walmart and Sainsbury, ASDA has also opened up their retail stores in the urban areas of London as well where the target market has changed and evolved and so as the marketing policies.

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Promotion is the major aspect of marketing that allows companies to spread awareness about their products and services. The promotional strategies of ASDA are very clear and unique in every sense. ASDA’s marketing department puts emphasis on creating the best marketing campaigns believed to maximize the revenue growth of the company.

ASDA’s digital strategy believes in sound promotional plans as they know by effective promotion they can achieve maximum selling of the products. With the advertisements and slogans like “Why pay more?” or “More for you for less”, it is clear to see that they give much importance to the promotion leads them close to their success. The slogan called “Saving you money every day” ensures that their aim is clear to attract maximum customers.


The ASDA has a very strong focus and importance on the price o the products that it sells. By a slogan called “ASDA Price” which is considered as the “Smart Price”, the company has marketed its products under budget-friendly prices. The prices of the products depend on the market value of the products themselves and on the sale of the products.

As a leading store around the UK, the ASDA believes in making their prices fixed. To do ASDA strategy analysis, it is clear to see that their slogans are meant for valuing the customer’s preferences and providing better items at lesser prices so that they can attract and convert more rural people into consumers.

ASDA understood that if the prices vary as lower or higher than the perceived prices in the competitive market with the competitive prices their products may tend to fail in the sale.

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Asda branding strategy

ASDA’s basic framework of its brand is to pursue to put an impression on its customers that describe the company to other people. ASDA is following the strategy of its branding to build strong credibility and have more influence on the market and motivate customers to shop at ASDA’s stores.

Marketing Goals, Objectives, and Strategies OF ASDA

The goals and objectives of the company are an integral part of the day-to-day role and responsibilities to provide motivation for working the operations effectively and efficiently. Despite facing loss and troubles in the year of 1990s, tey company stick to their goals and objectives and get back on their feet with better products and services.

Walmart plays a huge role in helping ASDA make new approaches towards new marketing strategies for the achievement of the goals of the company. With an aim and goal to always provide more than the needs and desires of the consumers, ASDA wants to become Britain’s most reliable retailer.

They also give much importance to providing equal opportunities and benefits to their employees for a better future. Their Slogans like Saving you money every day represent that they always preach for providing more products at lesser prices to the maximum number of people.

“That’s ASDA price” is well known for their product’s prices that show a strong foundation in the pricing strategy. Therefore, with a definite mission to help more and more consumers, ASDA is making progress to achieve its vision of making a company globally recognized.

That’s one of the reasons why ASDA is ahead of its main competitors such as TESCO in the grocery retail market in the UK. The achievement of the lowest prices comes from the Dual brand strategy which helped in gaining about 30% market value. Thus, the label brand named “chosen by you” has been aimed to change the perspectives of the products in the eyes of the customers.

ASDA Market Segmentation

In the support of marketing strategy, ASDA also aimed to divide their market into different segments of services and products for all types of consumers. They have segmented their market into financial services, clothing, electronics, toys, home furnishings, selling petrol based on demographics, location, prices, income, etc.

Market segmentation plays an important aspect if a company wants to diversify its services and to make a step for other products. It is clear that ASDA wanted to segment the market to appeal to families with lower incomes.

Being the cheapest in the primary market indicates their goals of being the best at affordable prices.

The business has become specialized to focus on their business model which states that “a focus on low cost”.  In the ASDA customer segmentation, it has successfully positioned itself in the low-cost end of the market but its new products and services make it hard for them to compete and develop with new competition.

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