News

Asda price is a talking point

Multiples
Chris Bennett visits an Asda store in Leamington Spa and finds out about the price-led spectacles promotion that has made the headlines

Asda's controversial complete pricing package announced last week was seen by many as the first shot in a price war for high street opticians, but many shoppers will agree that it is striking a blow for the consumer.

It's been a mix heady enough to get optics into the Daily Mail and The Sun. Asda insists it isn't trying to start a price war and claims its 'be a real spec saver' tagline was thought up by a member of a discussion group.

At first glance it looks like any other price-led promotion but head of optical at Asda Nik Langrish-Dixon insists the offer is the result of long study and preparation and will, for the first time, provide consumers with the certainty they want when buying eyewear.

In a busy Asda store on a chilly October morning the sleek and minimal opticians department could easily be overlooked, but not last week. In Leamington Spa the opticians section was generating a bit of a buzz following the launch of the £50 complete price offer earlier in the week.

The detail of the offer is deliberately simple. One pair of frames with single-vision lenses, with AR and scratch resistant coating and aftercare will cost £50, while a designer frame will be £70. Prescriptions from -20 to +20 are welcome and the staff in all Asda outlets have been instructed at what powers thinner and lighter lenses can be offered for stronger prescriptions.

Langrish-Dixon said the offer was developed by going back to basics and asking customers what they wanted and the last 12 months have been spent realigning the UK's 84 Asda Opticians based on the results of in depth discussion with eight groups of 30 consumers. This research, he said, showed a high level of unanimity in certain areas.

People expected high professional standards and all agreed he said that: 'It's not the kind of product you would buy from just anywhere. They also wanted a broad range.'

The other area of agreement for the study groups was price. 'Customers wanted to know what price they were going to pay when they walked in.' Its research claimed the fear of being saddled with a large bill is the single biggest factor in putting off customers from going to the optician. He said the research showed widespread scepticism among customers about optician offers and most people knew someone who had had a bad experience. 'Basically if people are going to buy glasses they think they will be spending at least £150 whatever an offer suggests.'

What appeared to be good value was anything under £100. 'It wasn't about the price point, it could have been £70. The thing that they loved was the assurance.'

The scepticism on offers is so entrenched that when Asda started to trial its offer customers just didn't get it, said Langrish-Dixon. 'The behaviour is so entrenched, compete price anywhere else really means from.'

The early days of the offer have seen many people checking that there are no extras or asking if it really does cover all prescriptions.

He explained that one high myope lady who came into the practice wearing RGPs couldn't believe she could get spectacles for that price and hadn't had an eye examination for six years because she assumed a pair of spectacles would cost too much.

Langrish-Dixon didn't want to say exactly where the limits on thinner materials lay but insisted they were on the generous side. 'We want all of our customers to be wearing thin, AR-coated lenses because we want them to come back. People can get a 1.9 in glass for that price if that is what they need.' He insisted Asda's margins and business model allowed it to make this offer. 'We are small and flexible.' He also said Asda spends its money on value for customers not promotion to drive footfall. 'We have 17 million shoppers.'

Asda has also transformed its frame range to coincide with the offer. It invited 40 frame suppliers and over five days sifted through 20,000 styles to replace 489 of its 630 styles. These are now marketed along 'customer-type' lines as requested by the consumer panels.

Retailing has also been softened, said Langrish-Dixon. 'You will never hear any of our people selling. This has made the whole dispensing experience quicker and less painful.'

The price comparisons are easy to make and with frame brands like Vision by Conran on offer, varifocals at £40, light-reactive lenses at £30 and second two for one complete pairs on offer at £90, you can be sure they will be. 'It's all about simplicity, we wanted to limit the number of prices people have to keep in their heads.'

Langrish-Dixon said he is hoping the message about the offer will be spread on blogs, the internet and by word of mouth. It has certainly created a stir in the press. ?




Related Articles