Asda's strategy ahead: our assessment

Date : 14 February 2013

We’ve been in-store at Asda this week to look at how it is implementing its strategy for growth.

Impactful value communication underpins the strategy

Asda's focus on EDLP is at the heart of its ambitions, and is given voice through the Asda Price Guarantee (APG), both inside and outside the store. Alongside extensive large signage to communicate rounded price points in the power aisle, this creates a compelling value proposition in the store.

A growing emphasis on quality

Source: IGD research

Yet the Asda offer goes well beyond just low price, with a strengthening focus on quality. Prominent communication of various industry awards, particularly in produce and meat, is an intrinsic element of this, alongside extensive communication of provenance and quality attributes.

Building private label

Asda has placed much recent focus on building ‘Chosen by you’ and ‘Extra Special’, and dedicated bays for the Extra Special Leiths ready meals give the range in-store impact. The tie-in with the famous cookery school is helping to take Asda’s premium private label to new heights, further reinforcing Asda’s growing focus on quality, whilst maintaining keen, straightforward, pricepoints.

Event creation is a priority

Source: IGD research

Along with established in-store events, such as Valentine’s Day, Pancake Day and Easter, Asda is also taking advantage of less obvious event opportunities. For instance,there is substantial current emphasis in-store on family favourites for half term, with an entire promotional aisle dedicated to solutions for entertaining the children this half term, with a range stretching from snacks and drinks to games and family-friendly DVDs. This is a great example of a focus on understanding and anticipating the needs of its core shoppers beyond the weekly grocery shop. What's more, Asda is demonstrating how it can simultaneously run many events across different parts of the store.

Making strides in multichannel

Source: IGD research

In line with its aim to become a world class dotcom business, Asda is effectively implementing various multichannel initiatives in-store. A fully operating grocery Click & Collect point outside the Stevenage supercentre we visited forms part of the move towards having 200 such points by the end of 2013. Meanwhile Click & Collect in non-food is gaining momentum and share of voice in-store.With Asda on course to complete its rollout of free wi-fi, extensive signage encouraged shoppers to browse for products they couldn't find on-shelf, helping to extend the offer and create an endless aisle of products. Asda is making rapid progress here and it remains a key area to watch.

Want to know more?

Don’t miss the Asda Trade Briefing 2014, taking place on 26 February in Harrogate, to hear the latest trading update and development plans from Andy Clarke and the senior executive team...More >>

Asda Trade Briefing 2014