Asda seeks to boost growth with price guarantee

Asda is launching an “Asda Price Guarantee” as a shift in strategy backed by a television and press advertising campaign.

The Asda Price Guarantee is designed to give shoppers “the certainty that they are looking for in today’s world”.

The supermarket is guaranteeing that the cost of a shopper’s basket will be lower than that of the same basket at their leading competitors and if it’s not, it will repay the difference.

Customers are encouraged to check their receipt online against other supermarkets at and then will be able to claim the difference, if any.

The guarantee covers 13,000 branded and own label products, as well as items on promotion.

The supporting campaign has been created by Saatchi & Saatchi and the first TV ad focuses on an Asda customer picking up their shopping basket. The film slows down to make the action feel “epic” as the voiceover announces the Price Guarantee and that shopping is changing for good.

Launching at the same time, is a “Rollback” TV ad, that aims to highlight Asda’s commitment to efficiency and to passing on its savings to customers in the “Big Spring Rollback”. The same slow motion filming is used as the Asda employee turns off the depot lights to save money.

The latest Kantar Worldpanel on supermarket share shows Asda’s year-on-year growth of 2.5% is well behind the sector. In the 12 weeks to 18 April, Waitrose saw the biggest percentage growth, recording a.7% year-on-year jump compared to the same period last year.

Mark Sinnock, director of marketing strategy and advertising at Asda says: “This campaign signals a shift both strategically and creatively for us. The Asda Price Guarantee, a world first, serves to highlight the total commitment we make to our customers, and it really does deliver the reassurance, trust and transparency around price that customers are looking for in today’s uncertain world.

“Creatively, we believe that the simplicity of focus and new tone, gives the brand a genuine and refreshing new aspect for customers to engage with.”

This latest work is the first in a series of initiatives that will be delivered over the Spring and Summer.

Readers' comments (5)

  • Particularly interesting in light of the new John Lewis campaign launched last week that emphasises its "never knowingly undersold" pledge. Retailers must be feeling optimistic about the state of the economy.

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  • Sorry to say but as a shopper and a marketer I find the ad meaningless without any message in the visual. You can say anything within that visual context. Hope ASDA didn't spend too much from our future buying power.

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  • I personally think it's a great add (for Asda).
    It's not cheesy like their usual adds. To me this add has a waitrose feel to it with the calm/mature voice over, music & bright/open store.
    They're very confident that they're the cheapest around & I think this will definately attract new customers however we know that UK consumers are not attracted by low prices alone. Otherwise Asda would have been the no.1 supermarket along time ago & not Tesco.

    It's a step in the right direction...

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  • Asda has been under pressure to try something new as its sales have stagnated. This new campaign is attempting to differentiate the supermarket’s offering which it hopes will create additional revenue. Launching a supportive TV and print campaign shows that ASDA believes that TV and print are still important mediums to reach its audience.

    However, Asda is missing a trick here and seemingly focusing again on short-term pricing tactics. These promotions may attract footfall but still ignore the importance of collating customer data and using that to gain a better understanding of individual customers. Instead of communicating through mass messages, it should be tailoring offers and promotions to individual needs and buying behaviours to cultivate a longer term and more valuable relationship.

    It should consider whether to take a different approach that no longer focuses on short-term revenue but instead focuses on increasing customer profitability. Differentiating on price alone is not enough to challenge the competition in this sector.

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  • Price guarantee check a bit of a con as it does not apply to two thirds of grocery goods. Even national papers have picked up on it.

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