ASDA's brand promise. ASDA's website promises: If we're not 10% cheaper on your comparable grocery shopping we’ll give you the difference.* (The * leads to the details of which competitors are covered by the promise.)
This brand promise reflects ASDA's strategy of competing on the basis of price in the grocery industry. After ASDA began advertising its price promise, it was followed by Sainsbury, Waitrose and Tesco. Price wars have broken out in several product categories, benefiting consumers but also putting pressure on marketers to be sure they live up to brand promises. The CEO of ASDA observes that this EDLP brand promise is more sustainable than voucher promotions that fluctuate daily or weekly.
ASDA's chief marketing officer tells Marketing Week: 'The priority is communicating EDLP and getting it to break through into a cluttered, gimmicky market'. All weekly promotions are also set up in the entryway of ASDA's head office, just as they would appear in a store--a good approach to internal marketing.
Understanding customer behaviour is key. ASDA recently began a Click & Collect grocery delivery service driven by mobile marketing. Shoppers order via mobile and then either collect their orders from a drive-through store area or from a delivery van parked in a commuter park-and-ride area. Pickup is free, and the EDLP price promise is in place for these orders.
'If you are shopping on the phone you can top up your basket and complete
your order on the website on the laptop or you can do the whole lot on
the phone. That convenience really resonates with customers', says ASDA's multichannel operations director.