Loyalty Program Project

Asda Stores Limited is a British retailer supermarket, with its headquarters in Leeds, West Yorkshire. It is a subsidiary of Wal-Mart, a US giant corporation. The firm also deals with providing financial services, as well as running a mobile phone company via the EE network. This firm is among the best organizations in the world, which do not rely on customers loyalty programs to retain their consumers. This paper will try to give the advantages that Asda stands to earn if it embraces the idea of loyalty programs to keep its existing clients.

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The Asda Marketing Mix

The concept of the marketing mix is used to establish a products unique market. The mix entails four elements; price, promotion, product, and also place.


The price of their items is the result of the quantity of the goods company purchases in bulk. A reasonable price makes trader realize a reasonable profit from their products, while at the same time maintain a reasonable price to keep a good market base. Additionally, the firm has a service on Asda website, where customers are able to enter the receipt number after doing shopping, and then the see the comparison of how much they would have paid if they had gone to a direct supermarket.

Read also: “Order Online Marketing Plan”


Asda deals with different types of products such as groceries and clothing and services like insurance and mortgages, which display them as a unique brand respectively.


Asda store uses its advantages such as wide products range to make sure that its clients can buy necessary goods in one place instead of moving into various supermarkets to do their shopping. Also, company has an online service that enables salesmen to do online business with their clients. The product purchased online undergoes deliveries to the customers homes.


Asda runs some promotions that enable it to retain its customers. For instance, their website allows a client to download their favorite music, which saves the advertisements’ time of visiting other music sites. Another kind of offer by Asda is the buy two – get one free, and much more.

Smart Goals by Asda Due to Loyalty Program

In order to establish effective loyalty program, Asda has to install appropriate goals.


Note: reduce the cost of finding new customers

To meet firms annual goal of reducing its product promotion to less than five percent, the loyalty program will help in retaining the existing clients, thus reducing the advertisement costs, as well as other expenses used to lure new buyers to the store.

Customer Lifetime Value

Note: maintain the firms existing customers

By embracing the consumer loyalty program, the company will save the existing clients. Furthermore, the program will lure the new clients into the firm, expanding the market base of the enterprise products and services. As Hill notes, such a move can act as a competition advantage against the companys market rivals.


Note: decrease the cost of food by 25 percent

In order to meet the business goal of reducing the cost of food by 25%, the loyalty program such as buy two – get one free, will help to eliminate excessive food products in the store. Such commodities would quite often be left to rot, resulting in an unnecessary waste of food at the warehouse.

The Target Market For the Product

In order to make loyalty program implementation more efficient, company needs to collect data concerning its target market and consumers needs.


Most of the Asda business activities proceed in the United Kingdom made of a multicultural society. The firm has a variety of products and services that suit a multitude of clients from different market countries, religions, and cultures. The companys clothing and food services are the ones that meet the cultural requirements of the clients preferring different products and services.


The company entails 25 large depots, scattered all around the whole country in a variety of strategic areas. Additionally, the Gazelle Company takes the responsibility of doing international marketing for the Asda firm.

Families and Household

The primary customers of the Asda products are women who buy the day to day items for their personal use, and that of their families. More so, men also purchase the goods from the stores for themselves and their families, although the number of male buyers is lower.

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Group Influences

Asda products serve the interests of both young and old, regarding food, clothing, and other services. There is a variety of foodstuffs for infants, teenagers, the entire family, as well as the elderly people. The same applies to other products like the clothes. This act is an indicator that the Asda commodities are not limited to a particular group of people.


Most of the products from the Asda, especially food, are designed to meet the subcultural requirements of every customer of the firm. For instance, the distribution of pork foods does not take place in the Muslim subcultures, as well as the supply of beef to the Hindu people.


The Asda gathers the information from its clients such as feedbacks, complaints and suggestions to establish the customers values regarding tastes and preferences. Also, the information enables the firm to realize the marketing changes concerning products prices, quality, size, and even the changing of clothing fashions.

Learning, Memory, Positioning

The Asda has strived to pursue a unique market position regarding low prices, the variety of products in a single shop, as well as the online service that enables the customers to learn about firms costs in comparison with those charged by other enterprises. This program creates a unique form of learning, memory, and positioning of the company in the market by its customers.


Through its culture of offering lower prices on the products and services, compared to other competitors like Tesco, Asda came to the creation of a perception in the customers minds that its products are relatively cheaper. This attitude has resulted in this organization controlling the market, as compared to its competitors.

Loyalty Program That Will Influence Consumer Behavior

Here are the guidelines on how the Asda should establish a customer loyalty program, which will foster the firms customer loyalty. The program bases on the consumer behavior. The social media, events, and advertisement components should be included in creating the loyalty program and making it effective.

Social Media

The Asda firm should create a website which the loyal customers will be able to visit, enter their particulars and automatically register for a loyalty card. After that, the collection of the card will be provided at any Asda outlet.


During the firms events like the customers day, the amount of points earned on an item will be doubled comparing to the regular shopping days. This practice will encourage more of the customers to attend the customers day event hosted by the organization. It will be beneficial both to the firm sales volume and to the clients whose chances of winning a big prize by earning more points will increase.


The company will ensure that the advertisements urging customers to acquire the loyalty cards feature in the firms products and services promotions. This step will enable multitudes of customers to learn more about the new program on clients loyalty made by the Asda business Summary

According to the content, Asda is capable of conquering more of its markets if it takes into account some of the suggestions provided in the project. One of the examples is creating the best Loyalty Program Card, basing on the consumer behavior collected from the existing customers. The program will entice prospective clients into the firm, while keeping the existing ones. Hence, establishing the loyalty program the company will be more competitive and will have a significant advantage over its contestants.

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