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Asda Enters the Online Wine Market – How Will its Product Pricing Compare?

By admin

Asda is set to launch a new online wine offering on 28 October 2013. Similar to Tesco’s Wine Club and Morrisons Wine Cellar, the Asda Wine Shop will sell wine in quantities of six bottles.

It has been proposed that the Asda Wine Shop will initially offer 500 wines, which will grow to 800 by mid-2014. Using Brand View’s comprehensive price and promotions data this Insight creates a picture of the exact number of wines on range in existing stores.

Asda Enters the Online Wine Market | Brand View

Asda has around 750 wines in its supermarket offer, an adequate number to choose from compared to the rest of the market. It would appear that the figure of 500 wines is a modest starting point for its online Asda Wine Shop, while the proposition of 300 more is only just enough to bring it in line with Asda’s current supermarket offering.

In contrast, the corresponding wine sellers of other supermarket retailers have around 300 more wines in their online wine store than their counterparts.

The graphs below illustrate this difference and highlights where changes arise. The higher price bands are where the online retailers have an increased range.

Asda Enters the Online Wine Market | Brand View

Asda intends to maintain its strong offering of less expensive wines in its new online Wine Shop, with the majority of wines being priced under £7. It is currently the only store to have more than half of its wines in this low price band. In comparison Tesco and Sainsbury’s sell just under 40 per cent of their wines at £7 or under.

Asda also stands out in the higher price ranges, but for having fewer wines on offer than the other retailers. The new online Asda Wine Shop intends to introduce 100 wines at the premium end of the range, addressing the existing deficiency and bringing its offer in line with the other retailers.

Asda Enters the Online Wine Market | Brand View

If we look at the online wine sellers, the contrasts to Asda are even more extreme. The proposed pricing structure for the online Asda Wine Shop go some way to closing this gap, but even the addition of 100 premium wines will not upgrade its range enough to be comparable to the specialist wine sellers.

Asda Enters the Online Wine Market | Brand View

Nevertheless, the strategy appears to be a sincere attempt to start building a reputation as a credible wine supplier, while at the same time maintaining Asda’s existing position as offering the greatest selection of less expensive wines.

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