ASDA is a Britain supermarket chain, which retails clothes, food, general merchandise and financial services. ASDA became a supplementary of Wal-Mart, an American retail giant. In 1999, it was the world’s largest retailer and the second largest in the United Kingdom by market share. The supermarket’s grocery market in the United Kingdom stood at 16.5%. The marketing promotion of the company is typically based on price. It promotes itself under the slogan “Britain’s Lowest Priced Supermarket”.
ASDA was late to introduce internet shopping, but it is taking on it with the passion of change and now has 97% coverage around the United Kingdom for its home shopping service. With its customer commitment strategy, it is confronting the recognized pioneers at Tesco, while also coming up with flexible and new ways of shopping. A lot of facilities, such as travel agents and coffee shops, bring customers to the supermarket. The supermarket sector is extremely competitive, thus, making ASDA introduce multichannel retailing, and it seems that it may do the same with the normal use of the social media by retailers. The policies are intended to make ASDA the 2nd supermarket in the food market and the market leader in general merchandise in the UK.
ASDA has made it easy for customers to check prices after shopping using their online website or in-store by use of their iPhone application and customers, as a part of this practice, are able to register their email addresses. The company’s new service allows customers to buy groceries online using their mobile phones. The mobile site includes a mobile store locator with directions and maps on the main Asda.com grocery website.
They are connecting purchase data to customer data by creating the ability to run their loyalty programme. The ability to connect transactional data, individual customers give ASDA an increased insight on customer base and allow them to start mining this data in a way, which retailers like Sainsbury and Tesco now take for granted. The programme creates a purpose for customers to relate with the retailer online website and on the move, recurrently reinforcing the ASDA price promise. The company has also made it easy and simple for customers to login to the website. All stores have table-talkers illustrating how to log in to the site.
Since ASDA sells a wide range of different products, the flexibility may not be as good as competitors. Also, a lot of workers in the company can be an internal weakness, particularly in case of a strike. As ASDA has become a subsidiary of Wal-Mart, there is a threat that they may lose their brand name and customers may lose their interest. Competitors, such as Tesco and Sainsbury, who are immensely strong in the market, can take advantage of the company’s weaknesses. The UK/EU legislation stops them from carrying out monopolistic practices; thus, the company`s expansion may be hindered.
The supermarket’s suppliers of raw ingredients and food producers use an application known as Web tracks to ensure that everybody in the supply chain utilizes a single set of data. Own brand products are ever crucial for supermarkets. More than 45% of the leading five supermarkets’ sales come from the products in the UK.
ASDA will make use of stores making bigger its fledgling chain of small shops and strengthening its position as the United Kingdom’s 2nd food retailer after Tesco. The supermarket, with more than 540 stores, has established a price assurance scheme, which permits customers to check receipts and give a refund, if ASDA`s shop is not 10% cheaper than its competitors.
There are several approaches to which companies can build customer trustworthiness. ASDA uses an appropriate approach in building the relationship with customers by doing positive things in the society. These actions help ASDA distinguish and create a distinctive image of the company in the market place.