Customer Satisfaction and Retention at ASDA Supermarket - Case Study Example

He became the chairman of the company between the years 1996 to 1999 wherein the company was able to own a total of 229 stores.In July 1999, ASDA became a subsidiary of Wal-Mart – the American biggest retail store. The partnership between ASDA and Wal-Mart makes ASDA the second largest chains of supermarkets after Tesco. ASDA is the largest overseas subsidiary of Wal-Mart since it accounts for almost half of Wal-Mart’s international sales.It was reported that ASDA is experiencing a gradually lost of its market share partly because of the resurgent Sainsbury's.

As of February 2007, the market share of the UK grocery market is as follows: Tesco – 31%; ASDA – 16.8%; Sainsbury –16.5%; and Morrisons – 11.0%.2 In order to extend its services to more people all over the United Kingdom, ASDA has announced its plan to expand and create more jobs for at least 8,000 local citizens by establishing a minimum of 18 new supermarkets throughout the year 2007.Today, ASDA is struggling while its top local competitor is thriving. In line with the gradual decline in the market share of ASDA, it is necessary for the company to explore the importance of Customer Satisfaction and Retention in relation to its employees, customers, and the customer service manager.

This study will evaluate and outline several theories that could have a positive impact on the customer satisfaction and retention of ASDA. These theories include Customer Complaint Management and the adaptation of the Corporate Social Responsibility (CSR) initiatives. As a case study, this paper will explore all the theoretical issues related to customer satisfaction and retention in line with the current situation of the ASDA supermarket. Based on an extensive research, a clear recommendation and a well-justified solution for ASDA will be presented at the end of this paper.

Customer satisfaction is one of the biggest areas in market research.