Aldi Case

3268 Words Oct 21st, 2014 14 Pages
April

ALDI offering the ‘same for less’ value proposition
Andrian Saputra Njonoriswondo Billy Qian Claudya Vici Yvonne Huang

17

Table of contents
Introduction Australian Retail Industry Market Segmentation Product Differentiation Consumer Perception Cost Effective Strategy Potential Future Problems Conclusion Appendix References pg. 2 pg. 2 pg. 2,3 pg. 3 pg. 4 pg. 4,5 pg. 5,6 pg. 6 pg. 7 pg. 8,9

M A R K 1 0 1 2 M a r k e t i n g F u n d a m e n t a l s

Introduction In present, the number of retailers in the marketplace is uncountable. Hence, it is important for the organisations to understand and satisfy their consumers and customers in order to have a long-run survival in the marketplace. Every
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29). ALDI implemented their strategy by setting up stores in populated areas of lower socioeconomic status, such as Sydney’s western suburbs, demonstrating geographic and demographic segmentation (Merriles & Miller, 2001, pg.10). Unlike Franklins, ALDI solely focused on the price conscious end of the market and did not attempt to shift their business position to compete with Coles and Woolworths in the upper end of the market. Franklin’s demise, mainly due to its confused mission statement, resulted in a gap in the market where the discount sector was no longer being catered for by any major retailer. This allowed ALDI to enter Australia’s retail market with little difficulty. Product Differentiation: Private vs National ALDI's position statement is straightforward - “All people, wherever they live, should have the opportunity to buy everyday groceries of the highest quality at the lowest possible price” (ALDI, 2013). To achieve this product differentiation, ALDI focuses on selling private label products rather than traditional national brands. This is reflected in the composition of goods offered by ALDI with 5 per cent of ALDI's stock comprised of national brands, and 95 per cent consisting of ALDI's house brand (Nencyz-Thiel 2011, p. 629). Private label brands have traditionally been priced below national brands, with ALDI offering a one price-quality tier with all their private brands priced below the national

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