Asda lowest price ad banned

The Asda press ad which carried the line “only one supermarket is always 10% cheaper” misled consumers because they would infer that Asda’s prices were always the lowest price, the Advertising Standards Authority (ASA) ruled.


Asda says the ads were meant to draw attention to the Asda Price Guarantee, which promises to refund the difference if prices are found to be lower in rival supermarkets.

Tesco’s on-target shot at its rival is the latest in a long running war on price between the top four major supermarkets. It follows a wounding set of market share figures for the largest UK supermarket and Asda’s claim it had “won” Christmas.

The figures from Kantar Worldpanel show further erosion of Tesco’s market share to 29.7% in the 12 weeks ending 19 February, its lowest since 2005, while Asda recorded its highest ever share of 17.5 %.

Asda recently announced it would be putting more resources into its price guarantee offer following findings from its customer research.


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Strategic inconvenience

Michael Barnett

Major brands are employing a strategy that runs counter to the belief that ease and convenience are the way to offer good service by placing stumbling blocks in customers’ way with the aim of offering an enhanced experience.