ASDA Marketing Strategy Case Study

ASDA Stores Ltd, is a British supermarket with the headquarters in Leeds, West Yorkshire. As a second largest supermarket in UK, the company is founded in 1949. It is huge retailing company that sells food, clothing, electronics, toys, home furnishings and range of financial services too with name called ‘ASDA Money’. The company was close to bankrupt in the 1990s but able to survive after 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 unique marketing strategy, the company can reach to its potential consumers effectively in order to present their products and services. To maximize the profit of the products and services, the business company has to focus on deliver the right products at the right place in the 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 achieve their objectives and goals for the success that they have today


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

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


The place is the area or location where a company sell their products. Choosing right location of the products has its own importance in the 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 is huge among most of the population.

The company believes in selling various products together at the one place which is better to maximize the 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 target market has changed and evolved and so as the marketing policies.

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

ASDA 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 their products that it sells. By a slogan called “ASDA Price” which is considered as the “Smart Price”, the company has market their products under the budget friendly prices. The prices of the products depends on the market value of the products itself 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 the their products may tend to fail in the sell.

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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 a strong credibility and have more influence on the market and to motivate customers to shop at ASDA’s stores.

Marketing Goals, Objectives and Strategies OF ASDA

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

The Walmart plays huge role in helping ASDA making 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 the Britain’s most reliable retailers.

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

“That’s ASDA price” is well known for their product’s prices that shows strong foundation in the pricing strategy. Therefore, with a definite mission to help more and more consumers, ASDA is making progress to achieve their 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 as “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 their services and to make a step for other products. It is clear that ASDA wanted to segment the market to appeal families with lower incomes.

Being the cheapest in the primary market indicates their goals of being 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 in the low-cost end of the market but their new products and services make it hard for them to compete and develop with new competition.

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