ALDI Marketing Mix

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Marketing Mix of ALDI analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the ALDI
marketing strategy. The article elaborates the pricing, advertising & distribution strategies used by the company.
Let us start the ALDI Marketing Mix:

Product:
ALDI claims to provide affordable food products that are of the same quality as other branded products. The products sold at ALDI’s
are sourced from selected suppliers and are then branded as their own to have a control over the production and ultimately the cost,
which is the sole reason that enables ALDI to price its products lower than other supermarkets. This gives an overview in the
marketing mix product strategy of ALDI.
Other than Food products and beverages ALDI also stocks Fresh fruits and vegetables, Health and beauty products, Clothes,
Stationery, Electronic products, Household goods and Soft tools. It does not change its food products but keeps on experimenting with
non-food items. Example- in winters ALDI offers snow gear and warm-camping gear, thus modifying its product line as per seasons.
It is the largest retailer of Wine in Germany and has few other products like:
ALDI Talk & ALDI MOBILE- In Germany, Belgium, Netherlands and Australia ALDI has a mobile virtual network operator
Diskont- In Austria ALDI has 66 card operated self-serve gas-stations on or nearby its stores after entering in a joint venture with a
local petrol retailer.

Price:
ALDI has a strong customer base due to the cheap price & quality that it offers for its own brand products which aren’t available with
the competitors. The various other policies used by ALDI are:
• Unit pricing Strategy: ALDI uses unit pricing strategy for groceries so that the customers can easily compare.
• Market Penetration: It charges low prices for the new products so that they can enter the market and gain share quickly.
• Competitive Pricing: In case of high competition, it prices its products below the competitor’s, making use of its economies of scale
purchase where it buys in bulk at a bargained price enabling it to pass the benefit to the customer.
• Psychological Pricing: Considering a minor difference in price can make a huge difference in customer’s mind, ALDI prices its
products in an intelligent manner like, $3.78 instead of $4.
• Loss leader pricing: ALDI offers its non-food products at cheap prices to bring customers to the store, so that they can also buy
groceries where ALDI can make up for the foregone profit.

Place:
ALDI group has more than 8000 stores in 18 countries and roughly a new store opens every week in Britain. It keeps its store layout
very simple to have minimum costs for the customers. ALDI procures all the products in bulk from various suppliers and stores them
at local warehouse, all the time ensuring that the product quality is maintained. It ensures minimum waste disposal while
transportation of goods and uses environmental friendly equipment in its store. ALDI tries maintain a regional appearance and thus
names its stores accordingly, like in Switzerland it is known as Aldi Suisse. Other than physical stores ALDI also has online presence
which allows customers to check product details and to locate the nearest store.

Promotion:
ALDI promotion activities under its marketing mix strategy is comprehensive. Claiming it to be a cost-saving strategy ALDI invests
negligible amount for promotion and does not keep a marketing department in Germany. All it offers is some ‘Super Buys’ offers
which are only available till stocks last and changes every week these are communicated to the customers by the means of weekly
newsletter called ‘Aldi informs’ which is either handed over to customers in stores or reaches them via direct mail or newspaper.
In the US, UK and Australian markets ALDI makes extensive use of print, electronic and display media to promote its stores. ALDI
also makes an extensive use of Email marketing where it informs all its customers about ‘Special buys’ and new products. Thus, a mix
of ATL (Above the line) & BTL (Below the line) promotional strategy is used by ALDI. It also uses various promotional techniques
such as:
• ‘swap and save’ to make customers switch to their brand from competitor’s brand
• ‘Like brands. Only cheaper’ to build customer trust in its products.

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of ALDI.

People:
ALDI has lower customer service than its competitors as employees do not assist customers in product selection, this is because ALDI
has very thoughtfully put store layout where everything is divided into proper sections which reduces the number of employees
needed on every floor. Also, unlike other stores employees at the billing counters are seated which makes them quicker in scanning
products as the computer is right in their front and ultimately results in faster sales. ALDI pays its employees higher than its
competitors and provides on the job training to new employees.

Process:
ALDI by its sheer layout makes product finding very easy, and thus customers generally select the products on their own which
reduces the number of employees that ALDI needs to assist the customers. ALDI keeps limited number of high quality, nominally
priced brands to prevent customers from getting confused and this in turn reduces the selection time. In addition to this ALDI’s
products have larger barcodes for quick identification and broader-longer conveyor belt for fast billing.

Physical Evidence:
ALDI is globally renowned for simplest business processes, standardization, and global pricing. 85% of the stock at its stores has
items from home brand and the rest are from well recognized brands. It provides 30% cheaper products and keeps everyday low prices
the same globally. Also, it is the only store which maintains the same prices for groceries throughout the world. This covers the ALDI
marketing mix.

About ALDI:
ALDI is a supermarket chain that was founded in 1946 in Germany by 2 brothers Karl Albrecht and Theo Albrecht who started off by
taking over their mother’s store which was started in 1913. ALDI stands for Albrecht Discount and consists of 2 main groups ALDI
SUD and ALDI NORD, each owned by Karl and Theo respectively with independent operations in different markets. ALDI has
transformed itself from a small business to a globally renowned supermarket chain with an annual turnover of more than 53 billion
EUR, employing over 1,00,000 people in its 9600 stores which are spread across 18 countries. ALDI started its operations mainly on
‘limited assortment concept’ wherein the high-quality products sold in the store was limited to certain categories and were to be
purchased in bulk and thus, were sold at reasonable prices.
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Marketing mix of ALDI
May 12, 2018 By Hitesh Bhasin Tagged With: Marketing mix articles

ALDI is a private company of German origins. It is a discount chain associated with the retail
industry. ALDI was founded in the year 1913 as a store but was established as a part of the
retail chain in the year 1946 by brothers Theo and Karl Albrecht. ALDI has been legally
separated into two separate groups since the year 1966. It is known as a reputable retailer
who offers great quality and value for money. The company faces competition from following
competitors

 LIDL
 Wal-Mart
 Safeway
 Kroger

Page Contents [show]

Product in the Marketing mix of Aldi

ALDI is a reputable brand name and is focussed on serving qualitative products to its
customers. It takes special care so that quality of products is maintained. It offers the variety
of food products with its in-house brands like Rich tea biscuits, Little Journey, Elevation,
Simply Nature, Never Any, Specially Selected, Choco rice, Fit & Active and Priano. The
company is so sure of the in-house brands that it guarantees to replace and refund the money
if found unsatisfactory. Aldi has a stock of nearly 1350 products with new items like

 Friendly Farms Lowfat Kefir

 Stonemill Salt-Free Seasonings
 Friendly Farms Traditional Plain Whole Milk Greek Yogurt
High-quality baby products from brands like Little Journey include

 Wipes, diapers, and wash

 Formula
 Snacks & baby pouches

Fresh Meats

 Poultry
 Pork
 USDA choice beef and more
 Black Angus meat
 Weekly fresh meat offers

Fresh fish

 Fresh Tilapia with garlic herb

 Fresh Atlantic salmon with Mediterranean herb
 Fresh Atlantic salmon side
 Fresh Atlantic salmon
 Fresh Tilapia fillets

Fresh produce in ALDI stores is a huge hit and include

 Vegetables
 Fruits
 Organic and locally grown produce
 Seasonal produce like carrots

Wines

 Sparkling wines
 Rose wines
 White wines
 Red wines

Beer-

 Imported Beers
 Premium Beers

Home Goods-

 Camping gear from Adventuridge brand

 Durable and stylish furniture from SOHL Furniture
 Bike accessories from Bikemate
  Auto accessories from Auto XS
 Dental products from brand Dentiguard
 Apparel from Crane brand
 Home solutions from Easy Home
 Household products from Huntington Home
 Kitchen accessories and cookware from Crofton
 Children’s apparel from L&D
 Grilling accessories and barbecue items from Range Master
 Sophisticated men’s clothing from Royal Class
 Stylish and comfortable women’s apparel from Serra

Place in the Marketing mix of Aldi

ALDI is a chain of supermarkets spread over several parts of the globe. It has nearly ten
thousand, three hundred and sixty-six outlets in twenty countries like United States, United
Kingdom, Switzerland, Spain, Slovenia, Portugal, Poland, Netherlands, Luxembourg, Italy,
Ireland, Hungary, Germany, France, Denmark, China, Belgium, Austria and Australia. ALDI
was separated into two groups in the year 1960 with Essen as the headquarters for Aldi Nord
and Mulheim for Aldi Sud.

ALDI is often described as a no-frills outlet that displays products at discounted price. It keeps
its layouts simple so as to cut down its costs. ALDI outlets are opened after considering
several facts. Its focus is on locations with good visibility with a minimum population count of
30,000 people. Accessibility is an important factor and hence people should be able to reach
the stores easily and comfortably especially in public transports. The company ensures
availability of adequate parking spaces so that customers are not harassed.

Price in the Marketing mix of Aldi

The consumer market is very competitive with customers having a greater choice. Aldi
inquires and identifies the needs and wants of its consumers and then takes appropriate
steps to meet those wants and demands via suitable pricingstrategies. It is determined to
offer products, especially of regular usage, at low rates without compromising its quality so as
to maintain customer loyalty. Targetcustomers of the company are lower middle class and
middle-class section of society and it has taken this aspect in mind while setting its pricing
policies.

The company faces stiff competition from several rival brands and has kept its product prices
marginally lower than its competitors. It has adopted a competitive pricing policy that helps to
sell its products at lower rates than its rival companies. ALDI buys in bulk and this gives it an
added leverage in negotiating best possible prices. It then passes on this monetary
advantage to its customers by offering lowest prices for quality products. This helps in
creating better volumes and results in generating greater revenues.

Promotions in the Marketing mix of Aldi

ALDI is an international brand and in order to maintain its impact on the global arena, it uses
numerous methods of communications with its customers. It believes in initiating and
generating interest so as to lead the customers to its outlets. ALDI has adopted both above-
the-line and below-the-line marketing strategies to lure in its customers with the focus on
campaigns like Swap & Save and Like Brands.

In order to improve brand recognition, it has started targeting mass audiences. It’s Like Brand
campaign focussed on a particular product while keeping a similar product from the rival
brand as its benchmark. Its slogan Like Brands Only Cheaper reinforced the message that
the company was offering the quality product at lower prices.

Humorous campaigns helped in building an emotional connection with its audiences. These
were shown via television channels and radio. Printed leaflets were circulated within its
outlets and in surrounding areas to reinforce Like Brands campaign. Ads were posted in
magazines, billboards, newspapers and via in-store posters. Seasonal offers, discounts are
an integral part of its promotional activities to lure in new and maintain customer loyalty.

The company has taken help of social media platforms like Twitter and Facebookto open two-
way communication with its consumers. ALDI interacts via these mediums and encourages
customer participation to create better brand visibility. It uses direct e-mails to promote its
seasonal offers. The company has an official website that features its promotional messages
like new campaigns as well as additional contents like weekly offers, recipes and new
additions in its stores. In the year 2012, Best Supermarket was awarded to ALDI and its
Christmas pudding was acknowledged as a bargain during taste test in Good Housekeeping
Magazine.

https://www.marketing91.com/marketing-mix-of-aldi/
 Creating value through the marketing mix
An Aldi case study
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companies, please choose a letter from the list below.

Page 2: The marketing mix

The Chartered Institute of Marketing describes the term marketing as the process:

‘Responsible for identifying, anticipating and satisfying consumers

requirements profitably.'

This places consumers at the heart of every organisation. The

marketing mix is often referred to as the four Ps. It involves creating a unique blend of the right product, sold at the
right price, in the right place, using the most suitable methods of promotion.

A marketing mix is a complex set of variables. The marketing mix of every business will be different. Aldi’s mix
focuses on providing high quality products that are cheaper alternatives to famous brands. Aldi’s marketing mix
therefore focuses on:

 Product – high quality ‘Like Brands’.

 Price – Aldi offers lower prices than its competitors without compromising on quality.
 Place – Aldi outlets are expanding globally.
 Promotions – Aldi uses a combination of above-the-line and below-the-line promotions with a focus on its ‘Like
Brands’ and ‘Swap & Save’ campaigns.
 The AIDA model can be used to demonstrate the aim of any promotional activity:

 Initiate awareness amongst customers.

 Generate interest for and desire to have the product(s).
 Leading to customers taking action to purchase.

Aldi uses a variety of communication methods and channels to increase the impact of its promotional activity and
meet the aims of AIDA.

Aldi | Creating value through the marketing mix

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https://businesscasestudies.co.uk/aldi/creating-value-through-the-marketing-mix/the-marketing-mix.html

Marketing mix of Aldi – 4Ps of Aldi

By: Jo David | Tags: Marketing Essentials
This article is on the marketing mix of Aldi. It aims to examine the 4Ps i.e. product, price, place,
promotion strategies of Aldi. Aldi is a German discount supermarket chain and has operations in
many countries around the world.
Marketing mix of Aldi (4Ps of Aldi)
We have conducted a quick and mini marketing mix of Aldi for you as follows:
Product
Aldi offers customers a wide range of products. Fresh food, bakery, drinks, household, health &
beauty, pet care, and whole foods are some of the key product categories in Aldi. The company sells
a very good number of its own private label brands. It claims to work with the very best suppliers to
deliver the very best products for its customers (Aldi Stores Limited, 2017).
Price
Aldi is famous as a discounter. It sells products that are both great value and high quality (Aldi Stores
Limited, 2017). It has a very strong loyal customer base. A combination of both cheap price and
quality of the products has helped the company achieve customer loyalty.
Aldi makes use of a number of pricing strategies. For example, it often uses psychological pricing. So,
it prices many of its products in an intelligent fashion such as £2.99, instead of £3.00. This difference
of £0.1 pence often impacts positively on customer psychology and decision-making. In addition to
psychological pricing, Aldi also uses competitive pricing technique. It usually offers lower prices than
its competitors, while ensuring that the quality of the products is not compromised.
Place
Place in the marketing mix of Aldi usually refers to where the products of the company are available
for customers to purchase. Aldi has thousands of stores in 19 countries around the world. It has over
700 stores in the UK and more than 1,600 stores across 35 states in the USA (Aldi Stores Limited,
2018). Customers can visit their nearest Aldi store or shop online. Aldi delivers products to most
postal areas in mainland UK, and interestingly, there is no minimum spending requirement for
delivery. Customers can also select CollectPlus as a delivery option and collect their order from a
selected collection point in the UK within 3-5 working days of their order being processed.
Promotion
Aldi makes use of a number of promotional methods e.g. advertising, public relations, and sales
promotions. It often advertises on TV and newspapers to reach out to the customers, particularly, the
US, UK and Australian markets. It also uses PR and has initiated a number projects concerning
corporate social responsibility. For example, in the UK, Aldi works with Teenage Cancer Trust to
‘ensure no young person faces cancer alone’ (Aldi Stores Limited, 2017). Aldi also uses sales
promotions regularly. For example, it often cut prices of many of its products.
We hope the article on the Marketing mix of Aldi has been useful. You may also like reading SWOT
analysis of Aldi. If you liked this article, feel free to share it by clicking on the icons below.
The article publication date: 23 February 2018
Further Reading/References
Aldi Stores Limited (2017) Award-Winning Aldi Quality, available
at https://www.aldi.co.uk/awards (Accessed 27 December 2017)
Aldi Stores Limited (2017) Delivery Information, available at: https://www.aldi.co.uk/customer-
services/delivery ((Accessed 20 February 2018)
Photo credit: www.pixabay.com
https://www.howandwhat.net/marketing-mix-aldi-4ps-aldi/

Is ALDI creating value through the

Marketing Mix?
JULY 24, 2016 / ADISH GUPTA

The internet has fundamentally changed the marketing function, creating the best move in the field
since the invention of the television. Digital marketing, social media and mobile devices have
drastically changed how we interact with the audiences. It has opened new doors as well as
colossal burden.

WHAT IS MARKETING STRATEGY AND PLANNING?

Does your business have a sound marketing strategy and clearly documented marketing objectives
to ensure next budgetary year is a more effective one, or will you continue to keep doing the same
thing and expect a different result?
 (Business Growth Hacks 2015)
A marketing strategy is a road map that details how you will spend your constrained assets to
develop your business and concentrate on where you need to take your business and who your
objective market truly is.
Once marketing strategy is completed it ought to deliver a marketing plan that identify the
distinctive ways of connecting with the customers and concentrate on the ones that will create most
sales using various sources such as social media, websites, paid advertisements and do not under
estimate podcast and videos to connect and grow the business (Stannage 2016).

Here are the key things that need to be focused on when creating a marketing plan while marketing
strategy session:

What is it? What does it do and how does it influence the target audience.
 What is the value proposition? What is the need and what problems/issues it can fix?
 Who are the competitors of the brand or the product
 What are the risk factors involved in failing or succeeding and how do they affect the
business
 Does the business have the right resources to make this happen?
WHY ALDI?
 ( Australia Backpackers Guide 2015)
ALDI is a leading retailer with over 8,000 stores worldwide. The first Australian store opened its
doors in January 2001. Presently there are more than 400 stores operating effectively in Australia .
ALDI’S objective is simple; ‘To furnish customers with the items they purchase on regular basis
and guarantee that those items are of the most astonishing quality at ensured low costs’ (Muston
2014).

HOW ALDI’S MARKETING MIX IS DIFFERENT?

A marketing mix is a complex set of variables. ALDI’s mix concentrates on providing top notch
items that are cheaper alternatives to other brands. ALDI’s marketing mix therefore concentrate
on 4Ps:
Product – How is our goods/items distinct vs competition.
Price – ALDI gives discount on their products by offering discount vouchers or loyalty perks to
customers and thus creates competitive advantage.
Place – ALDI stores/outlets are expanding all over the world.
Promotions – ALDI uses unique and effective techniques for the promotion activities and also
monitor effectiveness of advertising media.
ALDI’S AIDA MODEL
ALDI use AIDA communication strategy for efficacious promotion of their products and to achieve
the desired targets.
 Initiate awareness among potential customers
 Generate interest for particular item and also create desire to grab that product
 It leads to fruitful result by customer taking action to purchase
 (Hanlon 2013)
ABOVE-THE-LINE PROMOTION TECHNIQUE
Above-the-line promotions are paid advertisement for a large gathering of people which
incorporates the media. This type of marketing can be expensive. It can likewise be hard to target
particular groups of customers. ALDI uses a variety of above-the-line techniques to reach to its
potential audiences which includes:

 Advertisement on TV is one of the effective method.

 Printed flyers are being distributed within stores (Millions of copies printed each week).
These leaflets also highlights products with discounted price (The Times 100 2016).
BELOW-THE-LINE PROMOTION TECHNIQUE
This type of promotion can be more easily targeted to the specific audiences in contrast to above-
the-line method. ALDI uses a variety of below-the-line methods which includes:

(Business Case Studies 2016)

 Social Media
Targeted emails to customer
 3rd party endorsements (The Times 100 2016).
HOW PORTER’S THREE GENERIC STRATEGIES CREATE COMPETITIVE
ADVANTAGE?
ALDI’s integrated Cost Leadership/ Differentiation strategy

Cost Leadership Strategy

ALDI is a typical ‘hard discounted’ store pursuing cost leadership strategy. It is utilized to lessen
the expense of the operation in running the supermarket. Below mentioned are the few cost
leadership techniques implemented by ALDI stores.

 ALDI believes in buying low cost land and display products on pallets rather than on
shelves.
 Nevertheless, typical ALDI stores employees 4 to 5 store assistants compared with 15-16 in
standard supermarket.
Differentiation Strategy
The distinctiveness about ALDI is that they are very specific in terms of cost cutting so that
customers can get products at cheap prices without compromising the quality. Below are the points
that will help you to get a good idea in brief way:

 The prices for general use products are less compared to other Australian supermarkets. For
instance, 1 kg of bananas cost $1.69 at ALDI, $1.98 at Woolsworth and $2.75 at Coles.
 ALDI pay’s its store employees AUD 19/hour in contrast to pay rate of about AUD 15 an
hour in other superstores.
Operational Excellence
ALDI has been keeping up its operational excellence by improving its capabilities that support its
operations in connection with a legitimate utilization of its assets maximization of the resources.

WHY ALDI IS BECOMING A THREAT TO OTHER SUPERMARKETS?

Check out the video!
RISE OF SUPERMARKET
As evidenced, ALDI has a particular way to deal with retailing that has given it an upper hand in a
crowded marketplace. ALDI’s unique balance of the marketing mix enables it to provide high
quality, own branded products at the lowest possible price. Moreover, its multi-channel
promotional activity is engaging customers and creating positive feedback.

Adish Gupta

216051302, adish@deakin.edu.au
REFERENCE LIST
Muston, P 2014, Marketing Practices and Strategies for Aldi, slideshare, retreived 23 July 2016,
<http://www.slideshare.net/paulmuston3/aldi-marketing>.
Stannage, T 2106, ‘ Marketing help | Marketing Strategies that work’, Business Consultancy
Services, weblog post, retrieved 22 July 2016 <http://timstannage.com.au/marketing-help/>.
The times 100 2016, Creating value through the marketing mix, Business Case Studies, retreived
22 July 2016, <http://businesscasestudies.co.uk/aldi/creating-value-through-the-marketing-
mix/conclusion.html#axzz4FEUwCJ6x>.
https://mpk732t22016clusterb.wordpress.com/2016/07/24/is-aldi-creating-value-through-the-marketing-mix/
Marketing mix of ALDI
Executive summary

Globalization has urged the multinational brands to adopt latest marketing strategies to remain
competitive in the business environment. Marketing is a process of advertising and vending the
products or services in the marketplace. In this regard, effective marketing strategies play a vital role
to enhance the growth of the sale of products and services rapidly. Moreover, the marketing
managers of every organization endeavour to adopt such effective marketing strategies to increase
the overall productivity of the organization. Hence, effective marketing tactics help the enterprises to
increase their productivity speedily.

This research paper is based on the market segmentation of ALDI a German Based Discount
Supermarket Chain, which helps to increase the overall profitability of the organization. In this report,
a draft is provided which summarizes the important aspects of both task assigned. Moreover, critical
analysis is provided on the marketing mix strategies of the ALDI that whether this strategy is
appropriate for the company or not. In addition to the above evaluate the level of ALDI in maintaining
competitive advantage. Further evaluation is provided for the challenges faced by ALDI
internationally. Moreover, a brief set of recommendations is also provided to suggest further
improvements for the marketing managers

Hence, this report enabled the marketing managers to escalate the growth of retail of products and
services rapidly in the competitive environment.

Introduction
The purpose of this report is to evaluate the marketing mix strategies of ALDI critically. The elements
of the retail mix market is to be analyze by performing merchandize and assortment planning,
business communication strategy, design and visual merchandizing, facilitating services and
customer service analyses, format and locations, pricing strategy and tactics. Additionally, assess the
extent to which the retail mix provides a basis for sustainable competitive advantage. Moreover
evaluate the challenges that affect the international growth of ALDI by considering pest factors,
competitive context, growth strategy, market selection and entry methods and emerging retailing
trends. Hence, this report also provides a brief set of recommendations to enable the company to
overcome its weaknesses and raise its market share in the business environment.

Overview of ALDI
 ALDI is a German Based Discount Supermarket Chain. Its full form is Albrecht discount, consist of
two main groups namely ALDI NORD and ALDI SUD. However both groups are working
independently within the specific market positions. Groups individually treated by brothers Karl
Albrecht and Theo Albrecht. Business has transformed from a little to one of the most valuable retail
market chain with an annual estimated turnover of 53 billion Euros,

The company has transformed from a small business to one of the most successful and valuable
retail business chain with an annual estimated turnover of 53 billion Euros, over 9,000 stores in 18
countries and around 100,000 employees around the world. ALDI operations are mainly based on the
limited Assortment Concept – The high quality range of goods sold in the store was initially limited to
a basic selection of goods to be purchased in large quantity, sold at realistic prices and presented in
simple way.

Aldi has been even more successful in Australia

Discount grocer Aldi may soon be facing competition from cut-price European rivals if trends in the
$88 billion Australian grocery market mirror those in the UK.

ALDI pay a special attention for the economic efficiency. Economic efficiency is achieved by going to
details of every aspect. Its aims to find small improvement in every area. If new ideas and solutions
are proved to be successful,they are implemented quickly.
Since opening its first store in 1913, Aldi has established itself as
one of the most reputable retailers in the global business market by
providing great value and quality. Aldi’s goal is simple; ‘To provide
our customers with the products they buy regularly and ensure that
those products are of the highest possible quality at guaranteed
low prices.’
Aldi’s main marketing objective is to grow its market share within
the UK grocery market.

Discussion
 Retail marketing mix
In increasingly competitive markets, consumers have a greater

choice over where they buy their goods and services. For an

organisation to meet its business objectives, it has to find out

what consumers require and then identify the best way in which it

can satisfy these needs and wants. Creating a competitive

 advantage can be difficult. A unique marketing strategy with clear

objectives is vital to ensure effective promotional activity.

‘The process responsible for identifying,

anticipating and satisfying consumer requirements profitably.’ This

places consumers at the heart of every organisation. The

marketing mix is often referred to as the four Ps. It involves

creating a unique blend of the right product, sold at the right price,

in the right place, using the most suitable methods of promotion.

Aldi’s marketing mix therefore focuses on:

 Product – high quality ‘Like Brands’.

 Price – Aldi offers lower prices than its competitors without
compromising on quality.
 Place – Aldi outlets are expanding globally.
 Promotions – Aldi uses a combination of above-the-line and
below-the-line promotions with a focus on its ‘Like Brands’ and

‘Swap & Save’ campaigns.

 Product
Ofgem is a gas and electricity supplier, as the world getting expands the demands and requirement of
product increases, to beat the competitors company must update products with quality that customer
value. The range of product that ofgem sells is gas and electricity reflects the nature of business and
its position in marketplace. Guarantees can be an important factor in order to maximize sales and
profits.

ALDI specializes in their own-branded labels rather than any other branded labels so that they can
control the cost and production processes. ALDI also stock non- food items such as

Clothes

Health and beauty products

Fresh fruits and vegetables

Stationery

Household goods
 Electronic products

Soft tools

Promotion:

As mentioned earlier ALDI invest very less amount money for promotion. Another area ALDI save
cost is marketing. It has got no marketing department. And the marketing budget is about 0.3 per cent
of the revenue. Another interesting feature is Zero spending on public relations. ALDI offers some
selective “Super Buys” offers which will change each week and are available till the stock lasts. [1]
As explained earlier ALDI is the retail Grocery supermarket chain. ALDI’s founders influenced its
culture very sturdily. Its business strategy, Organization’s philosophy and guiding principle are
reflected by the cultural values and rules. ALDI’s simple business model concept is understood by its
employees and customers. Employees at every organization level are very cost conscious. They try
to reduce unnecessary cost wherever possible. For example when there are enough days light, all
lights in the offices will be switched off.
ALDI pay a special attention for the economic efficiency. Economic efficiency is achieved by going to
details of every aspect. Its aims to find small improvement in every area. If new ideas and solutions
are proved to be successful, they are implemented quickly. The organizational culture is
characterized by determination and persistence in addition to its focus on economic efficiency and
continues development. Business approach of ALDI has been changed very slightly since its
foundation. ALDI’s employees explore the customer’s need and stock them. The prices of the
products across each country are uniform.

ALDI’s shops are relatively smaller in size as compared to other Supermarkets. Maximum size comes
up to 1200 meter squares. And typical ALDI stores consist of five employees. ALDI don’t employs
Butchers or Backers as these products come prepacked. Designs of ALDI store are similar and
simple. That means all the stores have same layout and similar style of presentation. ALDI does not
provide free shopping bags and customers are encouraged to bring their own shopping bags. This is
ALDI’s another cost saving strategy.

Business structure is ALDI is mainly based on Decentralization and Delegation. This will help to
reduce the bureaucracy and conflicts. Issues can be easily dealt with.

 Price
 Price is a key element of retail mix because it provides product and services detail that is being
marketed by company. It’s the only factor that creates revenues while other indicates costs. Price can
be important in purchasing decision and affects the value that customer perceive. , ofgem products
are one of the best and necessary products in the marketplace making it a global leader in terms of
supreme quality. Ofgem is utilizing a controlling price strategy in that company sets a
reasonable price for their customers. In addition it keeps the prices of their products competitive in
order to beat their competitor.

The process of distribution of products shows ALDI’s pricing strategy used for being able to sell their
products at low price. This comes from ALDI’s business model – Keeping high bargaining power over
their suppliers, ALDI can buy large quantities of stock to service all the shops across the country.
Secondly Customers have very limited amount of choices that enables ALDI to purchase one item per
line that’s keeps the price of product low.
Place:

Place is the one of the important ingredient of market mix. It concerns opening hours, communication
channels, physical location as well as distribution channel. ALDI has got the physical presence in the
form of stores as the physical building around Europe and Americas. Moreover online presence of
ALDI in form of marketing channels helps the customers to locate nearest store, obtain information
about the product etc.

 Format and location

Another aspect of retailing mix is deciding the company location and identifying company branches.
Location must be convenient and flexible for audience. More the branches more productive and
profitably is the sale. Area should be secure and lies in centre so that people can reach at less time.
Location strategy is the critical factor in making selection of store by customers. Company will
conquer one area of city then expand it in region and should open branches close to one another,
utilizing this strategy company needs to do little advertisement to promote the market internationally.

 Retail communication
Retailer communication activities are important in positioning store and creating its image. Company
must constantly communicate to attract its target audience by means of advertisement, magazines,
internet and different communication technologies. Advertising, sales promotion, digital and direct
marketing, personal selling, sponsorship and public relations leads retail promotion. By means of this
the target audience is made aware of the services and products of company. Internet provides
opportunities for retailer to sell and communicate with their customer. In addition advertisement is the
fastest way to communicate with the wide range of audience at once.
 Layout, design and operation
 ALDI’s shops are relatively smaller in size as compared to other Supermarkets. Maximum size comes up to 1200 meter
squares. And typical ALDI stores consist of five employees. ALDI don’t employs Butchers or Backers as these products
come prepacked. Designs of ALDI store are similar and simple. That means all the stores have same layout and similar
 style of presentation. ALDI does not provide free shopping bags and customers are encouraged to bring their own
shopping bags. This is ALDI’s another cost saving strategy.
 Business structure is ALDI is mainly based on Decentralization and Delegation. This will help to reduce the bureaucracy
and conflicts. Issues can be easily dealt with
ALDI’s simple business model concept is understood by its employees and customers

 Customer services and facilities

 – Customer service and facilitating services
Ø JP Energy Partners operates significant assets in NGL
operations, including propane operations that encompass supply
and logistics, transportation and storage throughout the United
States. Our operations cover the breadth of the propane industry,
including residential, commercial, wholesale, auto fuels and
cylinder exchange. We work with builders, developers,
homeowners and business owners of various propane-powered
fleets, including forklifts, landscaping equipment and vehicles.
JP Energy owns and operates three distinct propane brands today:

 Pinnacle Propane – retail residential, commercial and wholesale distribution businesses

 Alliant Gas – community system distribution networks
 Pinnacle Propane Express – national cylinder exchange business

Retail – Pinnacle Propane

Pinnacle Propane offers complete residential, commercial and wholesale propane services for our
customers.

We are an experienced company operating in Texas, New Mexico, Oklahoma, Arkansas, Missouri
and Arizona. Our objective is to bring innovative ideas to the propane industry to provide our
customers with the best service, safety and value for their dollar.

We sell propane gas to residential, commercial and wholesale customers, as well as sell and lease
propane tanks to residential and commercial users.

Community Propane Distribution System – Alliant Gas

Alliant Gas develops and provides central propane service to both residential and commercial
developments through community propane systems. These systems currently serve 28 communities
(over 12,000 customers) in Texas and Arizona. Alliant Gas not only focuses on its existing customers
and communities, but works with developers and builders to install systems in new communities as
well.
Cylinder Exchange – Pinnacle Propane Express
Pinnacle Propane Express (PPE) is a full-service provider of propane grill cylinders for exchange at
retailers and/or distributors in 48 states. PPE has production facilities, districts, and depots in its
market areas that refurbish, deliver and distribute to the retailer. In addition to propane cylinders, PPE
provides services such as quality storage cabinets, safety protection, safety and marketing training,
and unique marketing branding enabling the retailer to provide point-of-purchase sales of both
exchange and new propane grill cylinders.

Wholesale
JP Energy’s propane wholesale operations market and sell propane to customers in the Southwest
region of the United States under the name Pinnacle Propane. To ensure reliable delivery of our
services, we utilize storage capacity and own our own fleet of transport trucks.

Our supply diversity also affords us the ability to gain maximum flexibility, ensuring we are able to
provide a competitive advantage and become a preferred supplier to our wholesale customers.

Transportation
JP Liquids specializes in procuring and transporting natural gas liquids including Y-Grade (also
known as Y-Mix or Raw Mix), Butanes, Propane and natural gasoline. Our customers include oil and
gas producers, refineries, gas processors and retail propane companies. The JP Liquids
Transportation fleet consists of hard shell transport trailers each capable of hauling in excess of 9,000
gallons of product. Depending on our customers’ needs, JP Liquids can first purchase Y-Grade at the
well head and transport to market or serve strictly for transportation. JP Liquids is ideally positioned
with operations in several major producing basins to serve the needs of the producing, processing
and refining communit

http://www.academicswriter.com/2017/05/10/marketing-mix-of-aldi/

MONDAY, 29 FEBRUARY 2016

The marketing mix - Aldi

Product - Aldi offer high quality ‘like brands’. They are known for offering the same quality food that other household
supermarkets are selling however without the price tag. A consumer obviously wants to spend as little money when it
comes to shopping so keeping prices as low as possible for customers will always be a positive, however when it comes
to branding cheaper products can result in poorer quality; a copy of a certain food can taste different or not actually last
as long as a household product.

Price –The price of Aldi’s products are what have made Aldi so popular, they are
known for very cheap prices but without compromising on the quality. The pricing that Aldi offer is what has made the
supermarket become so successful and profitable. However for Aldi to offer such low prices they have to keep costing of
other areas down such as the layout of the store; therefore this could have a negative effect on certain consumers.

Promotion –Aldi use a combination of various promotional techniques such as ‘like brands’ and ‘swap and save’. An
advantage of this promotion is that they will always draw in more customers however offering these promotions means
that products are being sold at a cheaper price meaning less profit.

Place – Aldi stores are already in Germany and England and they are currently expanding at a huge rate. Their stores are
placed where land can be bought cheaply so although this is an advantage as the land is cheap for the company to buy
that doesn’t always mean that the stores are in a place that would be convenient for all customers.

Process – Aldi have a number of distribution stores and they make sure that they only get one delivery a day from one
specific place therefore cutting the cost of having numerous deliveries. This also makes sure that staff aren’t constantly
occupied with a delivery, however this can mean that products are being sold out and not being replaced as quickly as a
consumer would want to buy.

People – The Company is known for paying their staff an exceptionally good rate. This along with a training programme
ensures they keep the staff turnover as low as possible. However they don’t indulge when it comes to staff so although
employees are being paid well a disadvantage is that the stores can be understaffed when there is a busy period.
Physical environment –Aldi keep their stores to a very minimal layout, they don’t have huge pictures advertising
products or expensive shelving this can mean that the stores aren’t attractive enough for specific consumers. However
this does mean that due to the fact money is being saved in one area when it comes to the layout means that discounts
can be offered elsewhere when it comes to the

http://marketingchelsi20.blogspot.com/2016/02/the-marketing-mix-aldi.html

A review of Aldi’s online

marketing strategy
Case Studies - 17 Nov 2015 by Ben Fitzpatrick - Get more articles like this sent to your email here
I’m an Aldi customer. In fact, I’m their dream customer – I tell people about Aldi products all the
time. I tell them about the deals I’ve received and how much money I saved. I tell them they just
need to shop there once to be converted forever. I’m pretty much a marketer’s dream.
In part, it’s simply because I love a good deal. But more than that, I love businesses that are
efficient, that have great products, and that find ways to make their customers feel proud to
associate with them. For me there are few businesses that hit all of these points more clearly than
Aldi.
I also love businesses that are smart and innovative with their online marketing – and in this area
I’m sad to say that Aldi is seriously lacking. They show all the signs of trying to do everything and
thus doing almost nothing particularly well – exactly what they’re not in their stores. So I’ve given
 myself the task of discovering how Aldi can take their marketing to a level that lives up to their
brand – no easy feat.
Let’s get into it.

Email marketing review

Normally I’d start an online marketing review by looking at a website, but the core of Aldi’s
strategy is email marketing. It’s the channel where they’re currently doing the best work and where
they have the most potential to directly drive sales. But there’s still room for significant
improvement.
So what’s their strategy? At its core, Aldi’s email marketing campaign is simple:
 Every Monday and Thursday between 5:00pm and 7:00pm Aldi sends an email to their entire
database that features a selection of ‘Special Buys’, or new products that are available for only a
short period of time.
 Monday’s email features products that will be in stores the coming Saturday, and Thursday’s email
features products that will be in stores the following Wednesday.
 Each set of ‘Special Buys’ is broken into a theme, with at least two themes featured in each email.
Generally the themes will be based on holidays, or separated so that one directly targets men (e.g.
shaving products) and the other targets women (e.g. women’s workout clothing).
 The products featured will rarely be recycled within a year’s time.
This means that anyone on Aldi’s (certainly massive) email list will receive upwards of 96 emails a
year, each with at least 40 new products. Those products will be in Aldi’s stores within a week of
arriving in their inbox and available only for a few days. Perhaps most importantly, the deals are
almost always good.
In terms of the fundamentals of an effective email marketing strategy, it’s hard to do better:
 Consistent excitement for something new.
 Built-in urgency to buy while it’s in stock.
 Great value for money.
Let’s take a look at an example:
Note the strong email subject: “Father’s Day gifts, BBQ essentials & family boating – Special Buys
on sale Sat 29 Aug”. Already you know if the email will be interesting to you and when the
products will be available. Customers are trained to only give their time to emails that include
products they might want. If the headline doesn’t appeal, they know another set of specials is
coming within three or four days.
Also note how Aldi leverages holidays and special events in their offerings. They work off a
defined calendar, which guides both their marketing and product offerings. And they feature
products for weeks ahead of the actual event in order to provide value for all types of shoppers
(people who plan ahead and those who shop at the last minute).
Aldi’s emails are also well laid out. Here’s a predictive eye tracking of another email that shows
what you’ll see immediately upon opening the email:

The brand is featured well, with a product and its competitive price taking the most attention –
definitely a strong first impression.
Here’s an example of how another email is perceived on mobile:
Again, the customers starts with the brand, is led to a feature product and then into the body of the
email.

Opportunities for email marketing

While the fundamentals of Aldi’s email marketing campaign are very strong, it’s in the
implementation where they fall short. Let’s start with the first email you receive when you sign up:
 My first question is, why do people need to confirm their registration to the newsletter? They
always have the opportunity to unsubscribe, so confirmation only serves to decrease the size of the
email list (as invariably some people will not confirm their registration).
Beyond this though, this is the first email you receive from Aldi so it needs to show the value of
signing up to the newsletter. It’s a serious oversight that the first email is the least engaging one
Aldi sends to its customers.
 Where is the brand logo?
 Why not take this opportunity to further introduce the offering – whether it be Aldi overall or the
Special Buys people will be receiving?
 Is there a secondary conversion that’s worthwhile for Aldi, such as sending people to their
Facebook page or inviting friends to join the newsletter?
Aldi should also immediately send the latest Special Buys to all new newsletter registrations. These
are people who are saying they’re eager to see some deals – and Aldi has the deals already
prepared. Why make people wait two or three days to get the next set of specials when Aldi could
just as easily set it up so they get an email immediately? The sooner Aldi starts delivering on the
value proposition associated with the newsletter, the more likely people are to engage with it and
stay engaged.
Next, let’s look at the actual products within the emails:
 A good product shot and well-displayed price is a start – and Aldi has the right idea with the
‘Reminder’ button on the ad. Yet there are some serious shortcomings:
 First, the reminder button doesn’t work. It sends you to the product page where you have to then
click on another reminder button, fill in a form and then go through a two step authentication
process to activate the reminder. If I were in Aldi’s marketing team, I would immediately tell them
to disable this functionality until it can be improved – right now it just makes them look bad.
 Even if it did work, when you click the button there’s no confirmation that a reminder will come.
 There’s also no secondary call to action, such as sharing the product on social media.
Instead, people are sent to a low quality product page (more on this later), and given no indication
that a reminder will come. These are people specifically saying they want to buy a product, and this
is Aldi’s top conversion from their email marketing campaign, given that they don’t have an e-
commerce site.
Plus, if you go to the product page and then request an ‘email reminder’ through that page, you’re
given this form to complete:
It’s even worse on mobile. Here’s what you see when you click the button:
And here’s the form you find if you realise you have to scroll down to fill it in:
No one wants to fill out a form on a mobile phone – even if they really do want to buy the product.
And since as many as two thirds of emails are opened on phones, the entire strategy should be
based around mobile. With the current forms, potential customers are likely to simply say to
themselves “I’ll remember” and bounce from the page. Certainly some will end up in stores but
Aldi could do a lot more to ensure as many of them do as possible.
If Aldi really wants this to be an effective system, there should be no form at all. They already have
your email! The whole website should have an integrated login system associated with the initial
 registration for the newsletter. Users should by default already be logged in, so that when they click
through from their email, they can simply press one button and have a reminder set.
For high-end products, Aldi should test remarketing campaigns on Facebook and the Google
Display Network, targeting anyone who has asked for a reminder. On the day the product is
available, the campaign would show an ad with an image of the product and a call to action saying
“Available in Stores Now”. Even if the profit margin on the individual product is small, once the
customer is in the store, they’re likely to buy more. And many people won’t actually click the ad,
but simply be reminded to buy when they see it.

Website review
The Aldi website is in serious need of a full redesign. Here’s their homepage:

In just the first view, there are over 7 different messages that Aldi is trying to get across:
 Father’s Day Special Buys
 Aldi’s liquor store
 Sign up for the Special Buys newsletter
 Find a store
 Aldi’s products have won awards
 Aldi has low prices
 Aldi has 7 day specials
In many ways this is representative of the whole site. Aldi has not decided what its primary
conversion goal is, so it’s trying to do everything simultaneously. Here’s a predictive heat map of
the homepage to show what a new visitor sees in the first few moments:

Note how the brand is basically lost. People see the main scrolling banner and one or two of the
other tiles. Most people will end up on a Special Buys page featuring that particular week’s
products. If those products aren’t appealing, they’ll likely bounce. Opportunity lost.
If Aldi simply picked one goal (or even two), they could use their homepage effectively to move
people along a funnel towards that conversion. There’s no question that Aldi’s conversion goal
should be to capture as many emails as possible. Despite its limitations, Aldi’s email marketing
campaign is by far its most robust and effective marketing strategy. To further this goal, one simple
update Aldi could make is to give people the opportunity to convert right on the homepage: “Get
the products you want at the lowest prices around” [Sign up now].

Homepage on mobile
On mobile devices, Aldi’s homepage is more simple and engaging. Visitors see the brand and one
call to action:
While this is more effective in terms of guiding traffic, the question remains: are these promotions
worth prioritising? Here’s predictive eye tracking of the Style Revolution competition page
featured above:
If Aldi’s goal for this page is to get people to enter their competition, that should be the primary
headline, and it should be very obvious how visitors go about entering. In this case, the only way to
enter is to click on the link at “go to aldi.com.au/styleyourroom to enter”. The first few times I went
to this page I didn’t even realise there was a link. If that’s where Aldi wants to send people, there
should be a massive button – [Enter here] – or the whole page should be clickable to send the user
to the next page. Even better, it should go directly there from the homepage – why the extra step in
the first place?
As a side note, the link on the page actually redirects to a different
domain, https://www.aldistyleyourroom.com.au/ (which is no longer online). This is something that
Aldi does with countless promotions and which they should stop immediately. If one of these
promotions is really popular, gets referenced in the media or builds lots of quality backlinks, the
main Aldi domain gets none of the value. Even if they redirect the site once the deal ends (which
often they don’t), they still lose a lot of the value of the inbound links.

Category pages
Most of Aldi’s website is structured in a similar way to a large e-commerce website. There are a
range of products organised into category pages such as ‘baby care’ and ‘gluten free’.
 Unfortunately Aldi does not list all of their products on their website (far from it). And the
categories they do feature seem random (baby care, chocolate, olive oil, skin care).
This is a serious lost opportunity. In general, Aldi only carries one brand per item (i.e. one brand of
toothpaste, one brand of tinned tomatoes, etc). So while the number of pages they would need to
feature all of their products is large, it’s much more feasible than if they had a traditional
supermarket model with countless brands in each product category. In terms of both user
experience and SEO, this would be a big win.
It’s also important to understand how people arrive at a category page. In general there are two
routes:
 Visitors click through from organic search results (Google) after searching for that category – in
which case they are looking for your products.
 Visitors have navigated through the site to that category page – in which case they are both looking
for your products and know your brand.
A category page has only goal: to get visitors to click on a product. The product page will make the
conversion. The category page should provide only the limited information necessary for customers
to choose between products, and the products that are most popular or have the highest profit
margin should be listed first.
Here is predictive eye tracking of Aldi’s ‘gluten free’ category page:
To begin with, the banner image has no calls to action and isn’t clickable. So the most valuable
space on the page is not generating any engagement. If there was a single popular product featured
in the banner with a [learn more] button, Aldi could effectively guide visitors through the sales
funnel.
This is even more important on mobile:
In this case, users are even more likely to engage with only one product, so it better be the best.
Again, visitors will expect the banner to be clickable – and slightly annoyed that it’s not.

Product pages
Aldi’s product pages are the worst part of their website design. Here’s an example:
 To begin with, there’s very minimal information on the product – only a picture, the product name
and a few short dot points of information. There’s also no obvious next step from this page. Since
it’s not possible to buy directly, the primary calls to actions are actually on the right sidebar:

There’s a number of flaws with this design:

 The grey doesn’t stand out from the overall design.
 The buttons are small and hard to read.
 The buttons are positioned in a place where people aren’t likely to focus.
Beyond this, if you actually do attempt to convert, the site is ineffective.

Send to a Friend
Clicking the button “Send to a Friend” provides this popup:
 First off, I think the idea here is great – Aldi gets your email and potentially your friend’s email if
they opt in. They also leverage you as a brand advocate within your personal network. But in
practice, there’s a lot to be improved:
 The form should come first and be as simple as possible. Instead, the first thing you see at the top
of the page are the conditions, such as ‘while stocks last’ and ‘Aldi Stores reserve the right to limit
purchases’. These should be at the bottom of the form.
 The form should be built next to the product image, so while you’re filling it out you’re reminded
why you’re taking the time.
 The field names should be much more clear – “Name” needs to be relabeled as “Recipient’s Name”
and “E-Mail” needs to be relabeled as “Your Email”.
 Also, it should ask for the recipient’s area code or city/suburb (not as a required field) so that the
message can tell the recipient exactly where the nearest Aldi store is located.
Once the form is filled out, this is the email that gets sent:

To begin with, the email subject “I recommend” tells us almost nothing about what’s inside the
email and does little to encourage a high open rate. Why not “You’ll love this product at Aldi” or
“Saw this product and wanted to make sure you didn’t miss out”.
In addition, since Aldi has collected the recipient’s name, the email should be personalised and
begin with “Hey <recipient’s name>”.
More fundamentally though, this is an opportunity to sell someone who potentially has never been
to Aldi. Even better, Aldi has had the targeting done for them, so the recipient is being sent an
individual product that they’re likely to be interested in. This is a huge opportunity.
There should be an engaging email template that can fit every product, including an image, details
about the product, any awards it has won, etc. It should also have information about Aldi – low
prices, great products, convenient location.
Finally, Aldi should take this opportunity to try to get people to opt-in to their newsletter. Tell the
recipient about the newsletter’s benefits and provide an opt-in link.

Shopping List
The other primary conversion on Aldi’s product pages is the Shopping List functionality. Basically
this allows people to browse the site and add items to a list, which they can then take into the store.
Here’s an example:
Once again, in practice this functionality is a mess. To begin with, there’s no way to register/login
and thus save your Shopping List. While it does save products for a short time when you leave and
return on the same device, everything is lost otherwise. In addition, the only thing you can do with
the Shopping List is print it – and who prints anymore?! Who even knows how to print from a
mobile phone? At a minimum, there needs to be an option to send your Shopping List to your
email.
Even more fundamentally though, the Shopping List functionality is relatively useless because
nowhere near all of Aldi’s products are listed on the site. A Shopping List is a great option if it
allows you to organise yourself before you go into the store, but if you can only do this with a small
percentage of the products, it’s ineffective.

Special Buys
Special Buys are the core of Aldi’s online offering. They’re the foundation of the email marketing
strategy and one of the primary sets of pages on the site (occupying the first position in the header
to the right of the logo). The Special Buys pages are updated continuously with new offers, but
maintain a similar structure:
These are some of the best designed pages on the site. Attention immediately goes to the feature
products in the banner, as well as the theme listed next to the first row of products. The price
(which is always extremely competitive) is featured in a can’t-miss position within the banner.
There are some issues though, particularly since there’s no call to action anywhere above the fold
of the page. As the main way the Special Buys are marketed is through email marketing, there
should definitely be a way to sign up on this page – something like “Don’t miss any of Aldi’s
incredible Special Buys – Get deals sent straight to your inbox” [Sign up now].
Further, no area in the top banner is clickable, which is particularly frustrating as it’s highlighting
an individual product. People will expect to be able to click the banner and go immediately to that
product page.

Recipes
As with all the major supermarket websites, Aldi has a strong selection of recipes, including some
from celebrity chefs.
While undoubtedly a lot of time has been put into making the recipes, little thought has been put
into this section of the site. The main way that recipes will drive traffic to the site is through
organic search and social media. Aldi could boost the organic traffic to the recipe section
immediately by implementing simple on-page code (known as schema markup) that is specific to
recipes. This code helps to highlight recipes in search results in a way available to few other types
of content. Here’s how Coles’ recipes (which have this markup) look in search results:

Aldi hasn’t implemented this code, so its recipes show up in search results as follows:

Even though Aldi ranks above MyRecipes, which of these are you likely to click? Aldi also hasn’t
even included the word “recipe” in their title tag, a major oversight in terms of targeting for recipe
searches.
 Here’s one of their recipe pages:

The page has some serious problems as well:

 There’s no option to email the recipe to yourself (or a friend).
 There’s no option to share the recipe on social media. With one click, you should be able to share
this on Pinterest, Facebook, Instagram and other platforms.
 There’s no review functionality, which would allow people to interact more with the page and can
be included in Google search results. Given how engaged Aldi customers are with the brand,
there’s a lot of potential to get positive reviews and user generated tips/feedback.
Plus, if Aldi really wanted to own this space, they would link to all their products in the recipes.
That way if someone wants to try a recipe, they can simply click a button to have all those products
added to their Shopping List – which they can then email to themselves to review when they’re in
the store.
 SEO
Google’s algorithm has a massive brand bias, so as a big brand, Aldi is able to get away with
making a lot of mistakes when it comes to SEO. Currently Aldi ranks alongside their main
competitors, Coles and Woolworths, for all of the ‘supermarket’ related keywords:

Note that Aldi should limit the length of its title tags so they don’t get cut off as they do above.
While ranking for the top target supermarket keywords is a big win, there’s tons of opportunity for
broader targeting through recipes, food categories and individual products. To dominate all of these
areas, Aldi needs to build up their overall domain authority to match their competition. Here’s Aldi
versus Coles and Woolworths in terms of the primary SEO off-site metrics:

Trust flow and citation flow are fairly sophisticated metrics of the authority of a website based on
the quality of other sites linking to it. Coles dominates in trust flow because of all the quality
backlinks they’ve built to their massive recipe section. But Aldi has a huge opportunity to surpass
Woolworths – which just happens to be the largest supermarket chain in Australia.
An area where Aldi lags significantly is in the number of referring domains (or the number of
different websites that link to the site). Unfortunately, Aldi is doing little to improve in this area, as
they consistently use a strategy of building websites on different domains from aldi.com.au for new
products and promotions. Just a few examples are:
1. http://www.aldiliquor.com.au/
2. http://www.aldifooty.com.au/
3. https://www.aldistyleyourroom.com.au/ (now unavailable but was a significant campaign)
4. https://perfectaussiechristmas.com.au (now unavailable but was a significant campaign)
Note that aldiliquor.com.au has a significant backlink profile itself:

That’s 188 backlinks from 51 domains that the primary Aldi domain is not getting the full benefit
of.
As a side note, Aldi Liquor is an example of a website that’s well designed for SEO and much
better than aldi.com.au in terms of its conversion focus. This has helped it to quickly build strong
rankings for top target keywords like ‘liquor online’ and ‘wine online’.
A more effective SEO strategy would be to have these separate websites and promotions built on
subdomains of aldi.com.au – such as liquor.aldi.com.au. That way, their backlinks would help build
value to the primary Aldi domain.
Another area where Aldi lags behind Coles and Woolworths is in the number of indexed URLs on
the site (or the total number of pages within the website). In fact, Aldi’s site is about 1/10th the size
of Coles’ and 1/8th the size of Woolworths’. Fundamental to SEO is the idea that each page on a
website has a set of keywords it can target in search results. This means that Coles and Woolworths
have significantly more potential keywords that can send traffic to their site.
Because Aldi is a huge brand, they can get away with not focusing on some of the more
sophisticated technical SEO and link building strategies that are essential for the vast majority of
online businesses. Google has for years now weighed the playing field in favour of the big brands.
For Aldi though, this should not be a reason to ignore SEO as an inbound marketing channel.
Instead, it’s a huge opportunity to drive tons of qualified traffic to the site, grow overall brand
visibility online and increase sales in stores. And all the additions to the site that would help Aldi’s
SEO campaign (such as pages for all their products and a better recipe section) would add value
across their other digital marketing channels as well.

Social media
Marketing through social media is a huge opportunity for Aldi to increase brand engagement from
their current customers as well as drive new business. And because so many of their customers are
fiercely loyal, social media in particular is an area where Aldi can outperform their top competitors,
Coles and Woolworths. Currently, at 290,000 likes on Facebook, they have about 1/3rd the
following of Woolworth and Coles – roughly equivalent to their overall market share of around
10%.
One of the areas where Aldi is most effective is in their community management on Facebook.
Every comment, whether positive or negative, is responded to directly and respectfully, even if
they’re not related to the actual post:
Questions are also answered knowledgeably, making it obvious that responses are coming from
within Aldi’s marketing team. In addition, negative feedback is taken offline efficiently:
 In terms of the actual posts, Aldi’s Facebook campaigns are relatively generic and follow a
consistent framework:
 Most posts feature a Special Buy product for the week.
 Each post includes a question for followers to answer in the comments.
This strategy is effective in keeping Aldi’s loyal following engaged, though it does little to grow
their Facebook audience. In fact, much of the organic fan growth is likely due to social media
campaigns outside of Aldi’s control, such as Aldi Mum:

This page is an entire community of Australian mums who buy Aldi products, provide reviews,
share recipes/tips and generally promote Aldi. With over 86,000 followers, this type of advertising
is priceless in the social media space. If they’re not already on the case, Aldi should make sure they
are doing everything possible to provide the space for these brand ambassadors to creatively
promote Aldi’s products.
Beyond these fundamental social media practices, as with any marketing channel, Aldi needs to set
clearly defined goals in order to be effective. And once again this is an area where Aldi falls short.
Their Facebook page is a simple example of this as both of its primary conversions send visitors to
the customer service form:
While certainly this form has value in terms of providing a place for feedback, it does little to
further Aldi’s marketing objectives – and certainly doesn’t need to be featured twice. A better use
of the call to action button is, once again, to get people to sign up to their newsletter through a
simple email capture form. This would allow Aldi to leverage their massive social media following
to grow their other channels.
Another key part of Aldi’s social media campaigns are competitions, such as Aldi Footy:

While competitions of this nature are an excellent use of social media, Aldi has overcomplicated it.
Visitors who click out of Facebook first have to choose between AFL and NRL, after which they’re
given the opportunity to convert on this page:
 In order to successfully fill out the form, they need to enter a barcode and the date they purchased
the product, as well as their name, address, phone number, etc. This means that in order to actually
enter the competition, people need to physically have the product with them and be willing to
provide all of their details.
If the goal of this competition was to drive sales, it’s an ineffective strategy as it requires people to:
 Land on the page and read the terms.
 Realise they need to buy the product to enter.
 Go to the store and buy the product.
 Then go back to the landing page and enter all the details.
Instead, the goal of a competition like this should be to collect email addresses of new customers
that Aldi can then market to. They should keep the competition as simple as possible: use one
landing page and require email only (or name and email). If they want to track location, they could
ask for the person’s postcode as well. Everything else is unnecessary information for Aldi’s
marketing strategies.
Beyond Aldi’s current social media campaigns, there are some significant missed opportunities.
The first is the lack of structure on the website for people to easily share the Special Buys and other
products they’re interested in buying. These shares are the best kind of free advertising as they
involve people endorsing Aldi products directly within their networks. Share buttons could even be
incorporated directly into their email marketing to drive this further.
 Even more though, Aldi should be much more creative with their social media marketing, by, for
example:
 Creating fun hashtags for followers to show off.
 Poking fun at Woolworths and Coles.
 Running competitions that encourage people to post photos in Aldi stores.
 Featuring short bios on different Aldi employees.
 Providing as many ways as possible for people to brag about how much money they saved at Aldi
(people who really love a deal love to tell everyone – believe me, I know).
Social media could be a game changer for Aldi. With the right strategy, they could get their
message out cost effectively across practically all of Australia.

Conclusion
There’s no denying Aldi’s success in Australia to date. In just 15 years, they have grown from zero
presence to over 300 stores (and they actually only initially planned for 100). Central to their
success is their marketing mix referred to as the four Ps:
 The right Product
 … sold at the right Price
 … in the right Place
 … using the most suitable methods of Promotion.
It’s a model that’s helped them to quickly break the Coles/Woolworths duopoly that has defined the
Australian supermarket scene for decades. Yet, the competence and efficiency that defines
everything Aldi does in its stores is entirely missing from their digital strategy.
It doesn’t need to be this way. They can turn their strategy around by:
 Building a new website worthy of their brand with the pages and functionality that live up to their
market-leading status.
 Investing fully in their email marketing campaign and making email capture their primary online
marketing goal.
 Leveraging their loyal following to engage with and promote Aldi across social media.
All of the strategies discussed in this review are likely to be successful for one reason: customers
are consistently happy with their experience with Aldi and its products. This is fundamental to
success in all marketing – your business has to provide value for its customers. Otherwise you’re
trying to trick people. It is because Aldi has so consistently proven their value to consumers that the
shortcomings in their digital marketing strategy represent such a significant opportunity.
ALDI Is A Growing Menace To America's
Grocery Retailers

The Hartman GroupContributori

Global AgricultureWe cover consumers, food & beverage culture and trends

ALDI is hard at work redefining the rules of shopper engagement and, in the process, eating away at the market
share of many of America’s most venerable food retailers — and food manufacturers. Through a relentless
pursuit of perfecting its own store brands portfolio and unique shopping experience, ALDI has become more
than a nuisance -- it is a major force that is on the verge of changing the grocery retailing landscape. One should
not underestimate ALDI in the U.S. market.

From a consumer packaged goods (CPG) company perspective it is easy to understand why. The German
chain is a control label retail operator, selling primarily, if not entirely, its own privately branded knockoffs of
established American foods. ALDI’s retail strategy has combined a control label National Brand Equivalent
(NBE) portfolio with an equally impressive deletion of conventional supermarket services:

 There are no counter service departments; everything is packaged and everything is self-service.
  No shelving means no stockboys to hire; product is wheeled in on pallets by forklift, unwrapped
and quickly signed.

 Carts must be paid for by deposit (25 cents) and returned by the shopper to eliminate staff
needed to wrangle shopping carts.

 There are no baskets to manage.

 The only staff in an ALDI store are: forklift operators bringing in new pallets, a cashier (or two)
and possibly a third-party loss-prevention agent.

Customers check out produce prices after a ribbon cutting at a new ALDI grocery store in Katy, TX on
Monday, April 8, 2013. ALDI exclusive brand products and produce items are sold for up to 50
percent less than at traditional grocers. (Michael Stravato/ AP Images for ALDI)

Normally, one might assume that reducing service for NBE products would just create an annoyed shopper who
can’t find what they want. Except that it actually creates an ecstatic shopper. Why? Because, by deleting brand
as a shopping variable (including the deletion of brand-based shopper marketing), ALDI focuses the entire
shopping experience on a simple aggregation of cost savings, a slow and steady cartwheeling trade-down ritual
whose foundation, price leadership, has been rigidly defended in virtually every market they’ve entered.

The deletion of brand as a shopping variable is something that ALDI has perfected like no other store label
program in the U.S. They accomplish this by simulating the color scheme and front panel symbolism of national
brand products in very exacting detail. In doing so, they trigger near instant equivalency between a name-brand,
iconic product and the one they are selling as a replacement.

For example, ALDI sells a cereal called Frosted Flakes that, like Kellogg'sK +0.84% Frosted Flakes, is
packaged in a blue box featuring the image of a white bowl of cereal flanked by a cartoon animal giving a
thumb's up, in this case a polar bear rather than Kellogg's Tony the Tiger.

ALDI has accidentally reinvented pantry stocking in America by subversively eliminating the variable brand
and the shopper marketing that goes along with it. They have also eliminated the variable of price, for there are
no price comparisons in a store with only one offering in every category. They have made it radically simpler,
cognitively, to execute a shopping trip. No thinking about brands, BOGOs, deals, price comps, coupons, sudden
endcap promotions or in-aisle shopper marketing. The trip is also super-fast, because the stores are only about
18-20,000 square feet.

Ironically, the only variable left in the shopping trip is: the food. This a powerful disruption for highly utilitarian
shopping trips where shoppers just want to get the stuff on their list and get out. ALDI has been opening over
100 locations in the U.S. annually for some time now, growing its total to close to 1,400. Its network has
entered suburban ZIP codes significantly in the past decade.

However, ALDI has yet to reach the Rocky Mountains or westward. That means that roughly 78 million
Americans, or 25 percent of the U.S., have no access to ALDI yet. We remain convinced that the portion of the
U.S. population most aligned to traditional processed, packaged food will find ALDI a seductive option for
years to come. Many managers of brand-dominant categories (chocolate, cereal) may overlook ALDI easily,
given that traditional datasets suggest the appeal of private label is weak.

Nevertheless, due to the extremely low pricing on NBE products at ALDI, most CPG players should be
monitoring ALDI’s penetration of their categories, somehow, to make sure that it is not overturning
conventional wisdom about the appeal of private label.

https://www.forbes.com/sites/thehartmangroup/2015/04/14/aldi-is-a-growing-menace-to-americas-grocery-
retailers/#72e5ad9ef077

Heads Up: 5 key changes in how Aldi

does business
June 20, 2016; 00:16 am by Bill Bishop

<< Previous Next >>

Recommend This Post 175

When it comes to Aldi, it’s time to “mind the gap.”

Why? Aldi has transformed itself in some pretty powerful ways. Sure, it started as an ELDP retailer that
offered an extremely limited assortment at extremely low prices, but – that’s not how it’s operating
today. Aldi has evolved into a promotional merchant with a strong price reputation which makes it an
increasingly formidable grocery competitor.

The net result is an extremely disruptive force in an increasingly competitive landscape in which the
traditional grocery players are being squeezed between two growing pressures – how to pay for
additional services like online grocery and how to match low prices.

Fellow retail veteran Bill Bolton and I recently sat down for an in-depth discussion about some of the
changes we’ve seen Aldi make. We came up with the five changes listed below, each of which creates
its own competitive advantage, but the combined the impact is exponential – especially given the hard
reality of an overbuilt market where more stores are becoming less economically viable each
month/quarter/year.

1. Changing product mix

The change in Aldi’s product mix shows up clearly in the physical layout of their stores. The space
allocation of five to ten years ago has been completely revised.

Aldi now has a full-scale produce department that is approaching 100 items. They’ve done extensive
work in pre-packaged meats and expanded in dairy. They’ve also done extensive work with frozen
foods. They even stock wine and beer in some locations.

Aldi has also replaced almost an entire aisle of groceries in the center of the store with general
merchandise, and increased their attention to the first aisle. And, they’ve expanded their
specialty/premium product lines that allow shoppers to trade up.

2. Shift to gross margin strategy

Aldi continues to practice aggressive cost management and still has only a fraction of the assortment a
traditional supermarket offers. They now manage their merchandising mix in a different way.

 Aldi generates gross profit from the first aisle, general merchandise, perimeter and premium
products – this allows them to reach some of their really aggressive price points and deliver
them even more effectively.
  They are generating profit reserves early in the month on sales of higher-margin products that
they use to drive traffic in weeks 3 and 4 with lower-price, lower-margin products as consumer
spending slows down.

You can see this play out in their ad circulars – the number of pages changes depending on which week
of the month it is. At the beginning of the month there’s plenty of money in the consumer market, but
by the end it runs out and retailers have to fight for their share of trips and spending.

So, at the beginning of the month when Aldi is trying to make sure it gets a bigger basket, the circulars
are 12 pages, and they promote a lot of higher margin items and general merchandise. By the end of
the month, the circulars are down to 8 pages, and they promote the lowest prices of the month,
especially on staples. For example, milk at $1.49 per gallon will generate traffic, but Aldi doesn’t offer
that at the beginning of the month because they don’t need to.

3. Reinforcing the low price reputation

Aldi reinforces their low price reputation by combining aggressive promotional pricing with strong shelf
pricing for basic staples.

For example, they’ll promote milk, eggs, bananas, avocados, and meat, which are highly consumable
products that have recognizable price points. No customer has 5,000 price points in their head, but
they probably have these. And, Aldi is very sensitive to the local competition’s prices on these
products. It looks like the store manager has the discretion to price eggs, milk, bananas, and maybe
some of their meat products so that they can beat the competition.

Aldi also reinforces their everyday low price reputation by focusing on certain staple grocery items that
are often on the shopping list like flour, sugar, etc.

4. Promotional capabilities & total store merchandising

Promotional retailers typically chart out traffic and ticket sizes for each week and market to themes to
accomplish their objectives over the course of, say, a month, by driving traffic to certain areas.

When it comes to promotional themes and merchandising, Aldi seems to do a very natural job of mixing
different types of products across what would be departments in a traditional grocery. The
merchandising themes in their ads are more about communicating with the customer about what’s
important to them and less about allocating space among departments.

For example, take Mother’s Day – they started with one page in the circular several weeks in advance,
and as the day approached they introduced other themes, including treating mom to breakfast in bed.
Eventually several pages of the circular were devoted to it. We saw a similar build-up to Father’s Day.

Aldi is becoming more and more sophisticated as a total store merchandising team, as opposed to the
old-style grocery merchandising, and it’s having a profound impact. It doesn’t look like they are
organized the way that grocery stores usually are, with their silos of meat departments, produce
departments, grocery departments, wine and beer departments, etc. The traditional supermarket
circular is all about dividing up the space between departments – look through Aldi’s flyer, and you’ll
see they don’t follow those “rules.”

5. Strong communications with shoppers

Aldi is really good at communicating and connecting with shoppers. Plus, they’re not constrained by the
departmental silos. They can orchestrate across the entire store without worrying about whether the
deli department will support the idea or the produce person will give the additional space. Total store
merchandising is something that traditional retailers are trying to do, but the territorial nature of the
departments limits what they can achieve.

When you visit as many stores as we have in the past weeks, you can see the different ways that
retailers use their stores to talk to customers and Aldi stands out as doing a really effective job.
Throughout the entire Aldi shopping experience there are messages that explain what Aldi is doing that
is of benefit to their shoppers. In contrast, some retailers talk about item and price and that’s all.
Others explain how they do what they do (like grinding beef every 3 hours.

Aldi is also focusing on on-trend products. For example, they’re carving out a strong position around
the theme of feel good and healthy, focusing on fresh, sustainability, organics, no trans fats, no MSG,
no hormones, no artificial colorings. They are using their advertising, signage and even a free lifestyle
magazine with healthy recipes and articles by dieticians to give their customers info they might
otherwise get from a Whole Foods, Stop & Shop, or Lunds & Byerlys.

What's ahead?
Disruption and more fragmentation on the price dimension
In addition to the changes discussed above, Aldi is also attracting more shoppers and more spending by
expanding the number of stores, accepting credit/debit cards, and even selling bags to those who want
them.

While Amazon gets credit as a significant disruptor, Aldi is creating and will continue to create
potentially even more disruption by blending their highly efficient cost control strategies with some
softer selling and merchandising techniques.

When the opening price points in a market are owned by Aldi, it leaves everyone else in the market
trying to figure out how to respond. This is why it is important to mind the gap between the old Aldi
and the new Aldi. Disruption in the grocery industry is coming from many directions – and it includes
Aldi as well as Amazon. What do you think?

Special thanks to Bill Bolton for the research and thoughts he contributed to this blog. Bolton is a
retail adviser who has held leadership positions in both large supermarket chains and national
wholesalers.

https://www.brickmeetsclick.com/heads-up--5-key-changes-in-how-aldi-does-business

BUSINESS NEWS
MAY 11, 2017 / 1:15 AM / A YEAR AGO

Exclusive: Aldi raises stakes in

U.S. price war with Wal-Mart
Nandita Bose
8 MIN READ

 

WHEATON, Ill. (Reuters) - German grocery chain Aldi Inc is trying to

beat the world’s biggest retailer at its own game: low prices.

Already with 1,600 U.S. stores, Aldi’s internal studies show its prices
are 21 percent lower than its lowest-priced rivals, including Wal-Mart
Stores Inc (WMT.N), according to Chief Executive Jason Hart. He
plans to maintain that gap going forward.
His strategy, previously unreported, centers on adding more private-
label goods, which are a retailer’s in-house brands, to win over price-
sensitive customers, and a massive expansion to further disrupt a U.S.
grocery sector that has seen 18 companies go bankrupt since 2014.

Hart’s plan calls for spending $1.6 billion to expand and remodel 1,300
U.S. stores, and open 400 new stores mainly in Florida, Texas and on
both coasts by end of 2018. He also pledged Aldi will be willing to
change prices more frequently to respond to rivals if needed.

SPONSORED

“We are re-merchandising, remodeling, enhancing our product range

and are focused on gaining volume so more customers start their
shopping at Aldi and we are able to complete their shopping lists
moreso than we have in the past,” said Hart, who added Aldi’s U.S.
sales have doubled in five years.

Though it only accounts for only about 1.5 percent of the U.S. grocery
market, Aldi is growing at 15 percent a year, whereas Wal-Mart
currently controls about 22 percent of the market and its U.S. sales are
estimated to grow about 2 percent this year, according to analysts.

Aldi's growth potential has competitors taking notice. Reuters reported

in February that Wal-Mart is running price tests in 11 states, pushing
vendors to undercut Aldi and other rivals by 15 percent and is expected
to spend about $6 billion to regain its title as the low-price leader.
Price wars are roiling the entire retail sector - from department stores to
discount chains - but it is nowhere as intense as in the grocery sector.
Beyond Wal-Mart's move to match Aldi on price, German discount
chain Lidl plans to open up to a 100 U.S. stores in a year, and
Amazon.com Inc (AMZN.O) is aggressively testing out various brick-
and-mortar grocery formats along with growing Amazon Fresh, its
grocery delivery service.

“We have not seen anything like this in the grocery sector in the United
States before,” said Scott Mushkin, managing director of Wolfe
Research and a leading pricing analyst.

Such heated competition risks a dangerous race to the bottom that

could result in more retailers shutting their doors.
 “Given Aldi’s expansion, Lidl’s entry, Wal-Mart’s response and
Amazon’s growing ambitions in this space, it is fair to expect a
significant acceleration in the bankruptcy and liquidation cycle in this
sector over the next few years,” said Burt Flickinger, managing
director at retail consultancy Strategic Resource Group. For more on
Wal-Mart’s stock performance vs Amazon, click [L1N1IC270]

Slideshow (5 Images)
GOAL: EVERYDAY LOW PRICING

Aldi, has a simple strategy to win more customers: everyday low

pricing, according to Hart.

“We don’t confuse our customers with yo-yo discounts, sales, coupons
and loyalty cards that require membership fees,” he said.

Four analysts and consultants contacted by Reuters confirmed Aldi

now offers the lowest prices in private label consumer products in the
states it operates, although they did say Wal-Mart is gaining ground in
the states they are conducting price tests.

Depending on the product, Aldi’s prices are cheaper than most rivals’
private label items and even most branded items, analysts said. Hart
said the 21 percent difference in price is calculated by monitoring
competition on a basket of groceries.

Aldi counts on its no-frills shopping experience to help keep costs low,
and limits much of its inventory to items that sell in huge volume. But
its focus on offering far more private label items than branded products
is central to allowing Aldi to adjust pricing whenever it chooses, Hart
said.

Walmart Inc95.86
WMT.NNEW YORK STOCK EXCHANGE
-0.24(-0.25%)
 WMT.N
 PG.N
 ULVR.L
Aldi and Wal-Mart do no break out the figures, but analysts including
Mushkin and Flickinger say Aldi carries about 1,200 stock keeping
units (SKUs) or type of products, 90 percent of which are private label.
Wal-Mart stocks about 30,000-40,000 SKU’s of products similar to
ones Aldi sells, and only 30 percent of that are private labels.

That different product mix can potentially make it more difficult for
Wal-Mart to adjust prices because it often first needs buy-in from
suppliers, and many times faces push back from packaged goods
makers like Procter & Gamble (PG.N), Unilever (ULVR.L) and even
smaller brands. Such vendors fear steep discounting can erode the
value of their brands, analysts said.
A Wal-Mart spokesman declined comment, saying the company would
not comment on a competitor’s strategy. P&G and Unilever did not
respond to Reuters requests seeking comment.

But the explosive growth in private label products is on the radar of

Wal-Mart Chief Executive Doug McMillon. Last month he told
analysts that private label goods will play an even more important role
as the widespread availability of branded products online will
compress those products margins over time.
 “Aldi is disrupting the sector the way Wal-Mart did when they started,”
said Strategic Resource Group’s Flickinger.

STEPPING UP THE GAME

Aldi’s aggressive push to remodel its stores will allow it to add new
private label merchandise in rapidly growing categories like fresh food.

“The remodels are aimed at increasing our volumes which means more
purchasing power that will help us lower prices further,” said Scott
Patton, Aldi’s vice president of corporate buying.

At a recent visit to an Aldi store in Wheaton, Illinois Reuters found

newer-looking shelves, wider aisles and brighter lighting than a typical
Aldi store. There was also a bigger assortment of fresh, organic,
gluten-free products and antibiotic-free meats versus what it stocked
earlier - categories Aldi said is growing the most rapidly at its stores.

For example, its Simply Nature range of private-label products grew 53

percent to $300 million in 2016 from a year ago.

SPONSORED

Aldi has also opened stores close to Wal-Mart's supercenters to benefit

from its budget-conscious shoppers. Its total store count of 2,000 stores
by the end of next year will be about 42 percent of Wal-Mart's U.S.
store base.

https://www.reuters.com/article/us-aldi-walmart-pricing-exclusive/exclusive-aldi-raises-stakes-in-u-s-price-war-with-
wal-mart-idUSKBN1870EN

How Does Aldi use social media?

 June 09 2015|
 Category : case study
A brand associated with value for money, how Aldi uses social media.

Aldi has over 8,000 stores and emphasises its ‘high quality products and excellent value for
customers’ throughout its advertising campaigns. Aldi uses a variety of social media channels
to promote the brand and its products including; Facebook, Twitter, YouTube and Pinterest.

FACEBOOK
Aldi uses its Facebook page to promote its brand and products by offering incentives and
encouraging followers to interact with its posts. Aldi’s social media team post daily updates
encouraging followers to like and comment on their posts for a chance to win either vouchers
or a product.

This type of post works well in terms of encouraging engagement, however it could prove
costly for Aldi as they are continually giving away vouchers and products. It does boost the
page’s engagement though with many posts getting over 1,000 likes (some even 20,000
plus).

Aldi also plans its social media posts around seasonal and cultural events, for example, many
of its recent posts are centred around BBQ’s (a common part of the British summer calendar)
and focus on products and offers that are relevant to their customers. Aldi also uses national
days and popular events such as World Baking Day or the Eurovision Song contest to
promote its products.
TWITTER
With nearly 200,000 followers Aldi has a considerable presence on Twitter and uses it as a
vehicle for brand and product promotion. Aldi encourages its followers to engage with its
tweets by using specific hashtags such as #BathroomBalladand #Super6Silliness. These
particular hashtags work very well for Aldi and show that using humour is a great strategy for
social media interaction.
Aldi also runs very simple yet effective competitions using its Twitter feed by asking followers
to retweet a message for a chance to win.
Along with competitions and giveaways, Aldi also tweets recipes and product suggestions.
However, as it doesn’t yet have an ecommerce website it is unable to tweet links to products
sold in-store.

YOUTUBE
Aldi updates its YouTube channel each month with videos that tie into its other marketing
campaigns, for example the #AldiChallenge. Other videos are sorted into categories such as
‘Aldi favourite things’, ‘product videos’, ‘Recipes’ and ‘TV Ads’. With 2,016 subscribers and a
total of 1,173,125 views since the channel was started in 2008, Aldi is effectively using
Youtube as part of its digital marketing.

PINTEREST
Like its other social media pages, Aldi uses its Pinterest profile to run competitions, promote
the brand and to promote the products it sells. The competitions that are orchestrated using
the Pinterest page are mostly ‘Pin to Win’ competitions, requiring users to follow Aldi on
Pinterest and create their own themed boards using Aldi’s suggestion. For example:
There were a number of followers who entered Aldi’s pin to win competition, however it the
engagement rate was far behind the rates of Twitter and Facebook competitions.

#ALDICHALLENGE SOCIAL MEDIA

CAMPAIGN
Aldi runs a number of social media campaigns across all channels, the most recent of these
being the #Aldichallenge which focuses on encouraging shoppers to swap from their usual
supermarket to Aldi instead.

The campaign encouraged customers to shop at Aldi and ‘join in the conversation’ by using
the hashtag #AldiChallenge to tweet how much they had saved by shopping at the budget
supermarket. Aldi included a page on its website where shoppers could sign in, enter the
value they had saved and then tweet this to their followers, the page also let users keep track
of their savings week by week.

Initially only set to run throughout January, the #AldiChallenge is still running across social
media channels as it is proving an effective marketing strategy.

Aldi’s use of social media revolves predominantly around using competitions and giveaways
to encourage engagement and build followers. Whilst this seems to be working for them in the
short term, they may have to rethink their strategy as rumours are abound that Facebook may
soon be clamping down on this way of building effectively false engagement.

http://www.evonomie.net/2015/06/09/case-study/how-does-aldi-use-social-media/

Marketing Mix of ALDI

by kasi | Marketing Mix
ALDI is the German origins’ private company. It is the discount chain linked with the retailing industry. It was
founded in 1913, as the store, and was established as one of the part of retail chains in 1964, by two brothers Karl
Albrecht and Theo. ALDI is legally separated among two main separate groups from the year of 1966. ALDI is also
known as the reputable retailer, which offers the great value and quality for money. The industry has immense
competition, and company is facing strong competition from following;
• Wal-Mart
• LIDL
• Kroger
• Safeway (ALDI, 2018).
Products in Marketing Mix of ALDI
ALDI is the reputable and famous brand name, who focus on offering and serving the quality products to its
consumer base. It require special care attention for maintain the promised qualitative products. ALDI offers a broad
range and wide variety of food items with in-house brands such as Rich tea biscuits, Elevation, Little Journey, Never
Any, Simply Nature, Choco rice, Priano, Specially selected, and Fit and Active. It is very much sure on its in-house
brands, and offer refund and exchange offer for those who are not satisfied. ALDI has the stock of about 1350
products including new products such as; (Bhasin, 2018).
• Stonemill Salt Free Seasonings
• Lowfat Kefir of Friendly Farms
• Traditional Plain and whole milk Greek yogurt of Friendly Farms
It keeps baby products of high quality in stock, mostly of the brands such as Little Journey;
• Formula
• Diapers, wipes, wash, sanitizers
• Baby pouches and snacks
It has fresh meats;
• Pork
• Poultry
• Black Angus meat
• USDA preferred beef
• Weekly offers on fresh meat
It offers fresh fish and seafood;
• Fresh Mediterranean herb and Atlantic Salmon
• Tilapia along with the garlic herb
• Atlantic Salmon and its side
• Tilapia fillets
Freshly produce items in the stores of ALDI, which attract the masses are;
• Fruits
• Vegetables
• Locally and organic grown products
• Seasonal vegetables such as carrots
Beer and Wine
• Red, white, rose and sparkling wines
• Premium and imported beers
Home goods and items;
• Stylish and durable furniture of SOHL furniture
• Adventuridge’s campaign gear
• Bikemate’s bike accessories
• Dentiguard’s dental products
• Auto XS’s auto accessories
• Crane’s apparel
• Easy Home’s home solutions
• Comfortable and stylish women’s clothes of Serra
• Royla class’s sophisticated men’s apparel
• Crofton’s cookware and kitchen accessories
• L&D’s children apparel
• Huntington Home’s household items
• Barbecue items and grilling accessories from range master (Aldi. US, 2018).
Price in Marketing Mix of ALDI
The customer market is highly competitive with all consumers having wider range of substitutes and choices. ALDI
identifies and inquires about the wants and needs of the customers and take the initial steps for meeting those
demand with the help of suitable pricing approach. ALDI is determined for offering the products, mostly for the
regular use, at most suitable low rates, and good quality for maintaining the factor of consumer loyalty. The target
audience of ALDI are mostly middle class and lower-middle class society and consider this factor while deciding its
prices (Bhasin, 2018).
ALDI is facing strong competition from competitors and has the competitive advantage in terms of lower prices than
others. It used the competitive pricing strategy, which helps in selling the products at discounted prices and lower
rates. ALDI always buys in the bulk quantity and it gives multiple advantages in deciding best prices. It pass this
monetary benefit to consumers in terms of discounts and lower prices. It helps in creating good results and volumes
in creating greater revenues (Mba Skool, 2018).
 Place in Marketing Mix of ALDI
ALDI is the chain of the wide spread supermarket across the different parts of the world. It has almost 10,366 outlets
in over 20 countries such as United Kingdom, United States, Portugal, Spain, Switzerland, Slovenia, Poland,
Luxembourg, Ireland, Netherland, Italy, Germany, Hungary, France, Australia, Austria, China, Belgium and
Denmark. In 1960, it was separated among two different groups with Essen as headquarter for the ALDI Nord, and
for ALDI Sud was Mulheim (Business studies, 2018).
Usually, ALDI is described as the no-frills outlet, which display products and items at lowest or discounted prices. It
mostly keep the layout simple and clear with the objective of cutting down the cost. The outlet of the ALDI are
opened and operated after considering multiple facts. It focused on the location, who have good visibility, good
infrastructure and minimum population. Ease and accessibility are most important factors and thus, individuals must
be able to visit the stores comfortably and easily via public transport. It also ensure the adequate parking to
customers (Commercial viability, 2018).
Promotion in Marketing Mix of ALDI
ALDI is the international brand, which needs to maintain its position on global arena, and for this different
communication methods and marketing tools to engage its consumers. It believes in generating and initiating the
interest of people to lead the outlets. It also adopted the BTL and ATL marketing strategies for luring the consumers
with focusing on the campaigns such as Like Brands and Swap and save. For improving the brand awareness and
recognition, it initiated targeting huge audiences. Its campaign of Like Brand focused on the specific goods and
items while keeping the same products of the competitors brand as benchmark. The slogan of “Like Brands Only
Cheaper” reinforced messages, which the firm offers the products in lower prices. It engaged in humorous
campaigns, which helped in developing emotional connection. The commercials were shown through radio and
television. The printed leaflets are circulated within the outlets. There were ads which are posted on billboards,
magazines, in-store posters and newspapers. Discounts and seasonal offers are the integral part of the promotional
activities for luring in new and potential customer loyalty (Bhasin, 2018).
References
ALDI, 2018. About Us. [Online], Available at: https://corporate.aldi.us/en/aldi-history/, [Accessed on: 14th May
2018].
Aldi, US. 2018. Grocery. [Online], Available at: https://www.aldi.us/en/, [Accessed on: 14th May, 2018].
Bhasin, H. 2018. Marketing mix of ALDI. [Online], Available at: https://www.marketing91.com/marketing-mix-of-aldi/,
[Accessed on: 14th May, 2018].
Business studies, 2018. Creating value through the marketing mix- An Aldi case study. [Online], Available
at: https://businesscasestudies.co.uk/aldi/creating-value-through-the-marketing-mix/introduction.html, [Accessed on:
14th May, 2018].

http://marketingmixx.com/marketing-basics/marketing-mix/623-marketing-mix-of-aldi.html

Aldi announces new business strategy

POSTED BY ANDREA HOGAN ON 15TH MAY 2017
 Con la tecnología de Traductor de Google

Aldi Australia has announced a new business strategy labelled “Good Different”.

The “Good Different” strategy will see Aldi promise “to maintain pressure on the competition” and focus on the differences
in its stores that set it apart from traditional supermarkets.

Aldi says the “Good Different” strategy will underpin all aspects of its business including product sourcing, supplier
relationships and customer experiences.

The announcement comes at a time Aldi has nearly managed to secure 10 per cent of Australia’s supermarket spend. Aldi
is also currently investing millions in new store formats and expanding into South Australia and Western Australia for the
first time.

Tom Daunt, Chief Executive Officer of Aldi Australia, said after 16 years of operation in Australia, it was time to tell
consumers why Aldi will continue to do things differently from traditional supermarkets.

“Aldi Australia is unapologetically different – and that’s a good thing for shoppers,” he said.

“We are proud of our differences and we stand by them wholeheartedly, as they are what allows us to bring unbeatable
value to our customers, maintain strong relationships with our suppliers and support our staff every day,” he stated.

Low pricing here to stay

Despite introducing its “Good Different” strategy, Aldi maintains that its fundamental point of difference will continue to be
low prices.

In 2016, Aldi reduced prices on almost half of its every day grocery range.

“While other supermarkets might offer temporary markdowns and promotional pricing, Aldi’s unique promise of
permanently low prices save shoppers both time and money,” Daunt said.

Aldi encroaches on SA and WA

In announcing its new strategy, Aldi said that since its 2016 expansion into South Australia and Western Australia 30.7
per cent of South Australians have already visited one of its stores. Approximately 28 per cent of Western Australian’s
have been to a Aldi store.

Aldi says it now has a 4.2 per cent SA market share and a 3.1 per cent WA market share.
http://www.ausfoodnews.com.au/2017/05/15/aldi-announces-new-business-strategy.html

Ad campaigns don't come cheap as Tesco battles

discount giant Aldi
Thu, Apr 2, 2009, 01:00

SIOBHAN O'CONNELL

MEDIA & MARKETING:Tesco believes it has the advertising firepower to beat Aldi and Lidl at their
own game
SHOWING OFF your latest Aldi or Lidl bargain, whether it’s the imitation Pringles or the cut-price
chocolates, has almost become almost a badge of honour for middle-class recessionistas these days. It’s 10
years since Aldi came to Ireland; now it and the other German discounter Lidl have achieved over 7 per
cent market share of the Republic’s €8.5 billion grocery market.
Until now, Aldi has shied away from television advertising to build market share but this week the multiple
has launched a TV campaign centred on its Super 6 fresh fruit and vegetable offering.
That campaign will reinvigorate efforts by Tesco and other rivals to position themselves as price
discounters too in an attempt to stem the relentless German advance.
In its latest advertising, Tesco announces itself as “Ireland’s Biggest Discounter” and, as market leader,
Tesco has the advertising fire-power to drive home its claim to consumers.
According to the IAPI Base advertising spend report, which monitors rate card advertising spend, Tesco
spent €22 million on advertising in 2008, followed by SuperValu on €18 million, Dunnes Stores with €12
million, Lidl with €6.4 million, Superquinn with €2.8 million and Aldi with €2.5 million.
Kenny Jacobs, marketing director of Tesco in Ireland, is very familiar with the operations of Lidl and Aldi,
having worked in Germany for a number of years. He said: “There is a great German phrase, ‘Cheap is
good’, and Lidl and Aldi are definitely having their moment in the sun. They are limited range price
discounters and they are in the right place at the right time. But we are all reacting by reducing our prices
on own brands and the premium brands that customers want.”
Supermarket price competition is a much-needed bonus for newspapers, as much of the advertising has
been directed into full page and double-page advertisements in the press. However, Jacobs is no longer
convinced of the effectiveness of those blockbuster special offer advertisements and is looking at other
ways of advertising in 2009.
“We have researched our change in strategy very well,” said Jacobs. “Those big Sunday newspaper ads are
more about advertising to the other retailers. It doesn’t make a customer go out and buy a leg of lamb on
Sunday morning for their dinner. We will be using different style press ads, such as the strip ads on
consecutive pages that we ran in many newspapers last weekend.”
 Jacobs added that Tesco will be advertising on television for the rest of the year while also adding online
banner ads, e-mail and even YouTube to the marketing mix
“This is a big change for us. It’s not a once-off price reduction campaign but a sustained campaign. This
year will be about building Tesco as a brand for lower prices. My objective is to establish Tesco as a source
of everyday lower prices in the minds of Irish consumers. You can get a lot of people into your store at the
weekend if you discount a lot of product. But to get customers to switch to you because they trust your
long-term low-price proposition takes time.”
Jacobs says the retail environment now is similar to that in the 1980s. “People are spending less and
looking for bargains. Our job as retailers is to be sellers. We have to sell our offers to the customer. Price
has never been as important as it is now. The once-a-week shop has come back into fashion. Customers are
now shopping around for value like they never did in the last 10 years.”
Tesco got credit recently for introducing euro for sterling price parity on all clothing products, and Jacobs
said the company is working on ways to introduce a similar initiative in its grocery business.
Meanwhile, most of the multiples have gone down the route of bundling products in a “value” offering. In
recent weeks, Marks Spencer’s dinner-for-two offer has gone down a treat, so well in fact that Dunnes
launched its own dinner-for-two for €10. Superquinn went one better with its offer of a meal for four
people for €9 and now Tesco is promoting a main meal, side order, dessert and wine or orange juice for two
people for €11.50.
Says Jacobs: “Marketing now has to be smart marketing. You have to find out exactly what your customers
want and change your offer based on the changing needs of the consumer.”
***
How much of your advertising budget should be online? That depends on what you’re selling, but for mass
market advertisers in America, the web is still a niche medium. The Internet Advertising Bureau estimates
that web advertising accounted for 13 per cent of the $190 billion advertising market in the US last year.
Television had 36 per cent market share of total spend, while ailing newspapers still garnered 18 per cent.

https://www.irishtimes.com/business/ad-campaigns-don-t-come-cheap-as-tesco-battles-discount-giant-aldi-1.735845

ALDI tops most trusted Aussie

brands list from Roy Morgan
German supermarket chain trumps its traditional local competitors in a list that
also sees Qantas fall into fourth position
 CMO STAFF (CMO)

 09 JULY, 2018 10:32


 inShare

 Print

ALDI has come out trumps in a new list of Australia’s most trusted brands from Roy Morgan.

According to the research group’s latest Net Trust Score survey, ALDI came in just ahead of insurer, NRMA, with Bendigo
Bank, Qantas and Bunnings rounding out the top five spots. This sees the Germany supermarket giant toppling Qantas from the
top spot previously. Australian-owned supermarket competitors, Woolworths and Coles, also rated highly but did not make the
top 10.

Rounding out the top 10 from sixth to tenth position are: Kmart, ABC, IGA, Australia Post and ING. The list is based on a
multi-round survey of 4000 Australians asking them which brands they trust as well as those they distrust. The four survey
rounds were conducted in October 2017, then January, February and April 2018. Questions were unprompted and open ended.

To get the final figures, Roy Morgan subtracted the distrust score of each brand from its trusted score.

Despite ALDI’s strong position and IGA’s appearance in the top 10, Roy Morgan said supermarkets as a category have a minus
Net Trust Score (NTS), and were trailing behind industries such as automotive, consumer product brands, travel and
technology.

Building a single view of the customer without being creepy

More from SAP Customer Experience
“The success of ALDI’s entrance to the Australian market has been built not only on discount prices but also a reputation for
reliability and meeting the needs of consumers,” Roy Morgan CEO, Michele Levine, said, adding that nowhere is trust in a
brand so important as the foods we eat.
“ALDI’s ability to excel at its core competencies has built a level of trust in the Australian market without at the same time
attracting the degree of distrust seen by its rivals.”

Levine said Woolworths and Coles, along with new entrants such as Amazon Fresh, Costco and Kaufland, will need to work
harder to reduce the levels of distrust in their brands.

“Although ALDI’s larger rivals both have high levels of trust, it is the number of Australians who express distrust in the two
market leaders that they should be worried about,” she added.

READ MORECMO Momentum: What startups CMOs and the rest of marketing leaders have in
common
Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on
Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu

Read more: ALDI, Bunnings, Qantas, and ABC most trusted brands in Australia

https://www.cmo.com.au/article/643485/aldi-tops-most-trusted-aussie-brands-list-from-roy-morgan/

Aldi vs. Lidl: how do they use Facebook and Twitter?

2 comments

Lidl surprised consumers in the UK recently with its new TV campaign that aimed to alter perceptions of the
brand.

Popular opinion suggests that you get what you pay for at Lidl, so the products match the low, low
prices.

However the #LidlSurprises ads play on that image by showing consumers who are pleasantly
surprised at the quality of the retailer’s various produce.

The campaign comes as the grocery chain is plotting a £220m UK expansion that will help it to further
capitalise on its already soaring sales figures, with revenue expected to reach £4bn in 2014 up from
£2bn in 2010.

It’s rival for the crown of the people’s favourite budget retailer comes in the form of Aldi, which
achieved sales growth of 35.3% in Q1 2014.
Both retailers have been trying to reinvigorate their marketing with a focus on digital and social media,
so I thought it would be interesting to see what Lidl and Aldi are up to on Facebook and Twitter...

Facebook
Looking purely at the number of fans, Aldi has its nose in front with 720,000 compared to 660,000 for
Lidl.

But as we know, it’s not all about the size of your fan base. So how do these two retailers keep their
communities engaged?

Well Aldi sticks to the age old social media tactic of tricking people into liking its content by offering
incentives and rewards.

It’s a fairly cynical way of artificially generating activity on your brand page, and Facebook was
supposed to be clamping down on this tactic.

During the spring and summer months Aldi posted a couple of updates each week, but that has now
increased to daily posts which nearly all beg for ‘likes’ and comments.

It’s pretty lame really, and an expensive way to run a Facebook page as it means Aldi is constantly
giving away vouchers. On the plus side, it frequently receives more than 10,000 ‘likes’.

Even the posts that don’t explicitly incentivise engagement try to suggest that people should hit the
‘like’ button.
The most interesting thing Aldi has done recently was to accept a nomination for the Ice Bucket
Challenge, after which it nominated M&S and Waitrose.

Lidl also does its fair share of asking people to ‘like’ its updates, though it’s not as persistent as its
rival.

Much of the content is focused around product or recipe suggestions alongside questions aimed at
getting people to comment and share.

This gets much lower levels of fan interaction, with typically only a few hundred ‘likes’ and shares on
each post.
Lidl does a pretty good job of responding to user comments, particularly if they’re making a complaint.

The exact operating hours are laid out in the ‘About’ information, which includes weekends. In
contrast, Aldi doesn’t appear to monitor user comments and only responds to users if they have won
a competition.

Finally, though the #LidlSurprises TV campaign has generally been well-received, there are only two
references to it on the brand’s Facebook page.

On 28 August Lidl posted a sneak preview of the ad, and has subsequently used the hashtag only
once.

This doesn’t reflect well on Lidl’s claims to be making a greater effort to use social media as part of its
marketing strategy.
Twitter
Aldi’s Twitter feed is also very much focused on promotions and competitions.

In the past week it has hosted three different giveways, with prizes including a £50 voucher, baking
items and a high chair.

Each competition involves a different hashtag and a request to submit an idea or an image.

For example, the #MessyFace campaign asked mums to tweet a picture of their baby’s face in return
for the chance to win a high chair.

It becomes a bit repetitive, but is also guaranteed to keep the brand’s 97,000 followers engaged.

We’re loving these #MessyFace pics, keep them coming for the chance to #WIN a
highchair! #Specialbuys
— Aldi Stores UK (@AldiUK) September 17, 2014

Aldi also mixes in a lot of product suggestions and recipe ideas, though it doesn’t tweet many links as
it doesn’t yet have an ecommerce site.

Hating “Hump Day”? It doesn’t have to be that way! Let’s #LoveWednesdays with our 28 Day Dry
Aged Steak pic.twitter.com/VdTw1KX5EQ
— Aldi Stores UK (@AldiUK) September 17, 2014

Over at Lidl the Twitter stream is largely made up of the same content that it shares on Facebook.

There’s nothing especially wrong with this tactic, though it does fail to take into account the different
features of each network.

#PolishWeek starts in stores tomorrow! #RT for Potato & Soft Cheese Dumplings or favorite for Pork &
Beef Dumplings. pic.twitter.com/L4wZiSyQGG
— Lidl UK (@LidlUK) September 10, 2014

Lidl frequently retweets other users who mention the brand or use the #LidlSurprises hashtag. It also
responds to a huge number of @mentions from other users, both positive and negative.

This ranges from questions about products, complaints about service in-store, or just people
mentioning the fact that they’ve shop in Lidl.

As with Facebook, Lidl stipulates the social team’s operating hours, so people aren’t left wondering
why they haven’t got a response.
In fairness, Aldi also does a good job of responding to its followers, so both brands are clearly aware
of the importance of interacting with their customers via social.

In conclusion...
In my humble opinion both of these brands need to do some work to improve their content marketing
efforts.

They’re both maintaining active social channels, which is a good thing, but incentivising ‘likes’ and
shares is a very old school tactic and one that most brands have moved away from.

There’s little that people would want to share if there wasn’t a prize on offer, and none of it seems to
tie into the brand’s wider marketing activity.Lidl has just launched a £20m TV campaign, but barely
mentions it on its social channels.On the plus side, both Aldi and Lidl are quick to respond to brand
mentions on Twitter, so clearly they are making efforts to be more engaging on social.

But there’s still some work to be done on the content front.

https://econsultancy.com/blog/65473-aldi-vs-lidl-how-do-they-use-facebook-and-twitter
ALDI’S AUDACIOUS MARKETING STRATEGY:
IS THIS THE END OF SUPERMARKET
DUOPOLY IN AUSTRALIA?
APRIL 9, 2016 / JOKAROH

Aldi Stores, a global supermarket with over 9000 employees, has been operating in Australia since
2001 with over400 stores nationwide. This February 2016 Aldi started opening more stores in
South Australia, http://https://www.aldi.com.au/en/shopping-at-aldi/sa-now-open-wa-coming-soon/, an
expansion program that will see the company take more grocery market shares from Coles and
Woolworths who have been dominating the grocery industry for years now. Since these moves for
increased market presence by Aldi a lot of market analysts have been asking the question, does this
signal the end of Coles-Woolies dominant duopoly in Australia? But how is Aldi going to achieve
this move?
Woolworths and Coles have multi-tiered strategies while Aldi is sticking to pricing advantage using
private labels which make up about 20% of supermarket brands according to market research firm
IBISWorld. These private labels are also expected to grow to 35% of all food and grocery sales in
Australia by 2020-21. There has been a significant change over the past few months in consumers’
attitudes to private label groceries with a greater number of consumers favouring them over big-
name brands, according to Canstar Blue spokesman Simon Downes. There are now Aldi
aficionados and fans known as ‘Aldiholics’ who patronise their grocery stores either as a direct
result of customer appeal or as a protest vote to the treatment of farmers by the other big chains.

Aldi’s strategic goal of providing customers with a limited range of grocery products that are
supposedly of the high quality at incredibly low prices (simply put, to offer customers a smarter
way to shop) is geared more towards private labels shown
at http://http://businesscasestudies.co.uk/aldi/competitive-advantage-through-efficiency/introduction.html.
Unlike Coles and Woolworths who have ventured into petrol, hardware, credit cards, hotels (and
pokies), Aldi is being the proverbial hedgehog fighting the multi-talented foxes-Coles and
Woolworths. Hedgehogs are calm, cool, collected and confident. Foxes have attacking prowess but
each time hedgehog and fox meet hedgehog always wins.
Aldi supermarket store is careful and witty in its strategy of targeting mostly low-income
consumers who enter their shops by putting up different kinds of displays. And now in its bid to
grab more market share from Coles and Woolworths, Aldi has started targeting middle-income
Australians too. Aldi is concentrating on these classes of Australian grocery shoppers who want
quality groceries at affordable prices, and it’s winning the hearts and minds of consumers across the
country through its efforts to create lovemarks. “Emotions are important determinants of economic
behaviour more than rationality” according to Daniel Kahneman the Nobel Laureate in Economics
in 2002 (Sheenan 2011).

Aldi grocery stores have topped customer satisfaction ratings in everything from overall
supermarket to prepaid mobile provider, according to a market research company Canstar Blue as
in http://www.canstarblue.com.au/aldi-awards/ and http://www.news.com.au/finance/business/retail/the-
supermarket-switch-is-on-as-aldi-takes-top-award-in-customer-satisfaction/news-story/. Coles and
Woolworths are mirror images of each other, with each company owing nearly 1000 supermarkets,
nearly 700 petrol stations, more than 1000 bottle shops and hotels and more than 500 variety and
hardware stores. Unlike these two big chains, Aldi is concentrating on grocery shoppers and private
brands, thus winning a greater part of grocery market shares from them.

Aldi is positioning itself in the grocery market by doing things differently from Coles and
Woolworths. They have their own brand labels with limited product ranges. Their positioning
strategy is a combination of cost leadership, focus strategy and differentiation. Thus Aldi wants to
do things differently from Coles and Woolies as exemplified with self-service checkouts and plastic
bags. The Sydney Morning Herald newspaper of 9 March 2016 wrote an article titled “Why Aldi
thinks self-service checkouts are a stupid idea” shown http://www.smh.com.au/business/retail/why-aldi-
thinks-selfservice-checkouts-are-a-stupid-idea-20160308-gne2np.html.
It is clear that Aldi Company is positioning itself in the market clearly to rival both Coles and
Woolworths.
With supermarkets accounting for 63% of all food sales in Australia; 80% of which is controlled by
Coles and Woolworths (FOODmap, Department of Agriculture, Fisheries & Forestry), and with
Aldi’s witty strategic plan it is clear that Aldi supermarket is set to take a greater chunk of this
market share from the big two.
REFERENCES
1. ABCnews (2016). Masters: The rise and fall of Woolworth’s entry into home improvement.
ABCnews 18 January 2016. Accessed online from http://www.abc.net.au/news/2016-01-18/timeline-the-
rise-and-fall-of-masters-hardware/7095438
2. Australian Government Department of Agriculture, Fisheries and Forestry (2012). FOODmap-
An analysis of the Australian food supply chain. Accessed online
from http://www.agriculture.gov.au/SiteCollectionDocuments/ag-food/food/national-food-plan/submissions-
received/foodmap-an-analysis-of-the-australian-food-supply-chain-30-july.pdf
3. Chung, F (2015). The Supermarket switch is on as Aldi takes top award in customer satisfaction.
Business retail July 21 2015. Accessed online from http://www.news.com.au/finance/business/retail/the-
supermarket-switch-is-on-as-aldi-takes-top-award-in-customer-satisfaction/news-
story/3ce35413bb26d01118190010c9cb0916
4. IBISworld (Feb 2016). Supermarkets and Grocery Stores in Australia: Market Research Report.
Accessed online from http://www.ibisworld.com.au/industry/default.aspx?indid=1834
5. Pash, C (2016). Aldi opens its battle with Coles and Woolworths in South Australia. Business
Insider Australia 3 February 2016. Accessed online from http://www.businessinsider.com.au/aldi-opens-
its-battle-with-coles-and-woolworths-in-south-australia-2016-2

https://mpk732t12016clusterb.wordpress.com/2016/04/09/aldis-audacious-marketing-strategy-is-this-the-end-of-
supermarket-duopoly-in-australia-4/
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Five numbers that show how Aldi has revolutionised grocery

shopping
Aldi has reported a 65pc rise in annual profits and claimed the price war in the UK is
helping the business

Aldi has 530 stores in the UK but wants 1,000 by 2022 Photo: Alamy

By Graham Ruddick
12:06PM BST 29 Sep 2014

1,350
The number of different products that Aldi sells in a typical store. This is far less than the average Tesco
supermarket, which could sell up to 25,000 products. The smaller range allows Aldi to offer lower prices - because
its systems are simpler and it needs less space. But it also means the retailer is more nimble than larger rivals who
can take a while to overhaul their product quality, prices and range. This number is also significant because it is
higher than the 1,000 to 1,000 products that Aldi sells in its stores in continental Europe. The company realised that,
in order to succeed in Britain, it must sell more fresh food and upmarket goods, so introduced the Specially Selected
range.
One
 The number of owners that Aldi has. Aldi is privately owned and run by Aldi Sud, one half of the family empire built
by the Albrecht brothers. The fact the retailer is privately owned is a major advantage. It is not answerable to
shareholder demands for a dividend payment or strategic change. “We have been able to put the customer at the
very heart of every decision we have made,” Matthew Barnes, the joint managing director in the UK says. “I think the
fact we are privately-owned means we are entirely in control of our destiny and the direction we take.”
16.9
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The average number of items that an Aldi shopper buys per visit. The bosses at Aldi are as proud of this number as
attracting one million more customers than a year ago. This number compares to 16.6 at Tesco and shows that Aldi
has now become a viable destination for a full weekly shop. The UK bosses were concerned that Aldi was simply a
"top up" destination for shoppers looking for discounts, but by adding fresh food, nappies, and now magazines and
newspapers, the retailer allows families to buy all their groceries from its stores. Nappy sales, for example, have
increased by 600pc over the last year.
22pc
The average shop at Aldi is 22pc cheaper than at Tesco, according to figures from Nielsen. So, despite the discount
retailer expanding its range and encouraging shoppers to buy more from its stores, a shop at Aldi is still nearly a
quarter cheaper than at Britain's biggest retailer. On average shoppers buy 16.6 items at Tesco for a total of £24.37.
At Aldi, they buy 16.9 items for £18.99. Shoppers at Asda buy more items - 18.8 - but also pay more - £26.33. The
"big four", Tesco, Asda, Sainsbury's and Morrisons, have tried to close the gap by committing hundreds of millions
of pounds to price cuts and new marketing campaigns. However, Aldi claims this has simply highlighted that it is the
price leader and has pledged to maintain the gap.
£9.99
The price that Aldi will sell caviar for this Christmas. This is the first time that Aldi has sold caviar and represents the
retailer's growing attempts to attract more shoppers from the A and B socioeconomic groups. It will sell 20 grams of
caviar for £9.99, as well as two dressed crabs for £3.99. Another key milestone for Aldi this Christmas will be
allowing shoppers to pay with credit cards for the first time. “I don’t doubt for a second that other companies hear
from customers that x,y and z need changing," Barnes added. "I would doubt whether they are actually adapting and
changing according to that." Julie Palmer at Begbies Traynor said: “With Aldi’s market share continuing to rise, it is
evident that the big four supermarkets need more than just price cuts to regain their dominance. Consumers are
getting savvier about their weekly shop and Aldi’s strategy of selling fewer product ranges, hence accruing less
costs, coupled with clever marketing of its premium range is clearly appealing to British shoppers."

https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11127811/Five-numbers-that-show-how-Aldi-
has-revolutionised-grocery-shopping.html

Marketing Mix: Aldi

& Emirates
web17blogApril 14, 2017Marketing

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Marketing is a vast field. Over the time the name of the marketing is taken just as
advertisement. There are thousands of processes in the marketing although marketing is a
process for a business but it depends on so many other processes. Marketing is just not
restricted to advertising but it is associated to the success of the business. One main process
of marketing is known as marketing mix. Marketing mix is a process of marketing the
business in new region or redefining the brand in the current region or native region.
Marketing mix is often referred as 4Ps. 4Ps are place, promotion, product and price. These 4
elements are interconnected and the fate of the business can only by judged if the four
elements are intertwined together. This blog is based on marketing mix with the applications
of Aldi and Emirates.

Introduction
The world of business has become chaotic due to competition in the market that is the reason
businesses are expanding the business in other regions. Globalization has allowed to make
the market increased to counter the competition faced in the primary market. Globalization
has allowed businesses to become global. Establishing a business in different region is not an
easy step. The risk factors are present in huge amount when establishing a business in new
region. An example can be taken of an automobile company offering new car with great fuel
average in the region where fuel is very cheap is a flop idea hence can spell disaster. To
avoid the mistake large organizations take under tool of marketing known as Marketing Mix.

Definition of Marketing
Marketing is a process and defined by Chartered Institute of Marketing (CIM) as a process
responsible for identifying, anticipating and making customers or consumers satisfied by
fulfilling the needs and requirements in profitable way.

Definition of Marketing Mix & 4Ps

Marketing is a process as mentioned before but the process is based on other tools and sub-
processes. Marketing mix is a sub-process of marketing. Marketing mix is commonly known
as 4Ps although 4Ps and marketing mix is not same necessarily. Marketing mix is a term
utilized to define the various type of options selected by an organization to establish the
process on whole to bring the product or service in the market. Whereas, 4Ps is a way used
to define marketing mix. 4Ps were introduced by Jerome McCarthy in 1960. 4Ps are product
or in some cases also service, place, price and promotion.

Marketing Mix for Aldi & Emirates

Definition of Product
Product is one P of 4Ps. According to Tobias Richter (2012), a product is known to be an item
crafted or manufactured to make the needs of a specific group of people satisfied. The
product can be of two types tangible and intangible depending on the form which can be
service or good. While developing the product main questions that are needed to be
answered are known to be the needs of the client, utilization manner of customers, features
needed by customers, features not needed by customers, catchy name of the product, size
and colors, differentiation when compared to competitors and look of product.
Product: Aldi & Emirates
Elements Aldi Emirates

Branding
Claims have been made by Aldi to Emirates product portfolio is
offer edible products of the same comprised of mix fleet sizes. Till the
Branding lies in the quality at affordable price as date Emirates deliver biggest planes.
quadrant of product
compare to other brands. Aldi Excellent service with consistency is
of marketing mix.
Branding in products are sources via various provided by Emirates which sky
marketing suppliers and branded afterwards rocketed the revenues and growth
illustrates the by Aldi as own products to rapidly. There are three major classes
creation of name, maintain the control over the of Emirates and all classes have
symbol and design production and controlling cost. It personalized videos. Emirates is the
to identify and is the sole reason which makes first airline to provide showers in
differentiate the Aldi enable to offer products in flights. Emirates offer seats to be
product from
market with lower price as converted to flat beds and storage
substitutes in the
compare to rivals in the market. facility for private suites.
market.

Aldi also specializes in products Emirates have developed its services

other than food. Aldi stores stock
fresh fruits and vegetables along
New Product with health and beauty products,
Development electronic items, clothes,
stationery and household items.
New product
Non-food products line of product
development means
developing new is the one which is experimented
products except by Aldi. For an instance, Aldi put
then the current snow gear in the stores along with
product line. warm camping gear hence
enhancing and changing the
product line according to the
season.
by providing winged headrest for the
Business class passengers along with
partitions, USB ports and charging
sockets for laptops and devices. New
entertainment options are available
on board for First class passengers
along with all comforts such as
minibar, convertible seats to flat beds
and storage options for passengers.
Economy class is appropriate with
adjustable headrests, entertainment
options and sockets for laptop
charging and other devices.

Definition of Price
Price is another P of 4Ps. Price refers to the price paid by customer in exchange of goods or
services. As per the definition is concerned of marketing mix, price is a significant element.
The survival of the organization and profits are determined by pricing strategy as pricing
strategy is an integral aspect of marketing plan. Some major questions that are to be
considered when pricing are settled for a product are cost of the product or service
production, perceived value of product, increase of market share by slight low price and
competitive pricing. Major pricing strategies are penetration pricing, skimming pricing,
psychological pricing and neutral pricing.
Price: Aldi & Emirates
Elements Aldi Emirates

Aldi has coined the name by

offering products at cheap price
Market Penetration Emirates is a Dubai based airline
with good quality for brands
which provides Emirates with a
owned as compared with rivals.
Market penetration leverage of being tax free hence
The pricing strategy used by Aldi is
strategy is used by Emirates have used market
market penetration. Market
businesses to penetration strategy on selected
penetration strategy of pricing has
penetrate in the sectors giving low cost for tickets and
allowed Aldi to charge customers
market by low cost capturing market share as Emirates
and generating low for new products so the
focus on volumes on these short
more revenue. entrance in the market can be
routes without layover.
easy and gaining the share of the
market can be in quick time.

Psychological Pricing
/ Premium Pricing

Psychological
Psychological pricing is the second
pricing strategy is a
pricing strategy pricing strategy taken under by
Emirates practice premium pricing
which make the the operations of Aldi.
strategy. This strategy enables
products to be sold Psychological pricing mechanism is
Emirates to tailor the services and
1 penny or 3 penny to make the price lower minimally
make the customer retained to the
less than whole but this minimal pricing makes a
amount. airline. This strategy also help
huge difference in the mind of
Emirates to make the demands of the
customers. Aldi’s product prices
Premium pricing is customers demanding luxurious
are put after intelligent thinking
a pricing strategy services.
for an example $3.89 rather than
for setting the price
higher for the $4 for a product.
products similar. It
is often referred as
skim pricing.

Definition of Place
Place is another P of 4Ps. Based on the views of Prof. Henry McCoy published
on Mindtools.com (2016), place refers to placement or in some context distribution.
Placement is another significant element of marketing mix. Placement refers to position the
product and distribute the product via place which is accessible by the potential customers or
patrons. Distribution strategy is of many types. The major types of distribution strategy are
known as intensive strategy, exclusive strategy, selective strategy and franchising. The major
questions regarding defining place are whether clients look for the goods or services, stores
clients visit, access to the distribution channels, comparison of distribution strategy with
competitor and requirement of online stores.

Place: Aldi & Emirates

Elements Aldi Emirates

Aldi has more than 8000 stores

across 18 nations. According to
Emirates being an airline operating in
Jerome Hart (2015), it has been
airline industry has numerous
Distribution estimated that almost 1 store
distribution strategies. It is because
Channels opens of Aldi every week in the
of the nature of industry that
UK. Aldi being a supermarket sell
Emirates have to undertake different
The distribution products of its own and other
or various methods of distribution.
channels refers to products under designated Aldi
Emirates is a global airline. The
the channels that stores thus the distribution
are adopted by an distribution strategy adopted by
strategy used by Aldi is exclusive.
organization to emirates is intensive as well as
Being exclusive helps Aldi in giving
distribute the exclusive. Intensive strategy can be
extra to customers as customers
product or service. seen by Emirates in form of travel
Distribution are hassle free of parking and
agents and tour operators selling
strategies are charges are reimbursed of parking.
tickets for Emirates in exchange of
intensive, selective, Parking lot help other people as
benefits whereas, exclusive strategy
extensive and well thus, it helps society as well.
can be seen by regional offices
franchising. Aldi’s distribution strategy has
located in every major city where
helped Aldi to be a prestigious
Emirates operate (Beer, 2013).
brand in the market. It helps Aldi
by aggressive selling.

Online stores in world 1 countries

Online ticketing has proven to be a
Online Presence has become and easy mode of
game changer for Emirates. There is
shopping but still many people
Online marketing is no doubt that Emirates is the best
shop by going to stores as variety
a new distribution airline operating throughout the
is more in the physical stores as
strategy which is world with great service and offers.
compared to online stores. Aldi
now in this age as Online purchasing via website has
this age is has been distributing and
increased the revenue generation of
technology age is marketing the name by means of
Emirates as now people want express
used by almost online stores. Online stores has
service and Emirates website provide
every large helped Aldi to reach the corners
clients to buy, cancel, rebook, change
organization to which can never be reached by
boost the sale and and upgrade online via website
Aldi. Online stores of Aldi has
cut cost. making the time of customer spare
helped to check products and
and hassle free purchase.
further locate the nearest store.
Definition of Promotion:
Promotion is the last P of 4Ps. Promotion is seen as the marketing in these days. A significant
element of marketing mix is promotion. Promotion boosts the sales and image of the brand in
the market. Advertising, promotion of sales, relations with public and organizing sales is due
to promotion. The questions regarding promotion to be considered as per The Marketing Mix
(2016), are the ways to send message to the customers, suitable time for the product
promotion, ways to reach potential clients, commercial strategy, social media strategy and
promotions comparison with rivals.

Promotion: Aldi & Emirates

Elements Aldi Emirates

In the markets of the UK, US and

Australia, Aldi has made use of
Emirates has taken under
extensive numbers of advertising by
marketing techniques which are
using print media, electronic media
both traditional and ultra-modern
Advertising and display promotion to make the
to attract the customers belonging
stores promoted in the region. Aldi
to various sectors. Advertisement
Advertising means has promoted by means of mixing
to reach customers as customers of
promotion of the ATL and BTL activities. The
Emirates are diverse, Emirates has
business by means promotional techniques used by Aldi
used magazines, radio, television,
of flyers, billboards, are ‘swap and save’ & ‘Like brands.
website and billboards available in
TV, online Only cheaper’. Swap & save
marketing and 9 various languages. Emirates has
technique is developed by Aldi to
others. been sponsor of mega events like
make the customers switch to Aldi
2015 ICC Cricket World Cup and are
brand from rival’s brand and Like
official sponsors of Barclays
brands. Only cheaper technique is
Premier League top club Arsenal.
developed to have trust of
customers in Aldi’s products.

Promotion activities adopted by Aldi In the past Emirates has promoted

are under the strategy of marketing
Sales Promotion
mix. Aldi has taken a comprehensive
Sales promotion approach for sales promotion.
means offers or Promotion used by Aldi is only one
marketing named as Super Buys. Super Buys
campaign for allow the customers to make the
limited time period most of the products that are
for example buy available in the stock. Stock and
one get one free.
changes are communicated via
newsletter named as Aldi Inform.
Newsletter is handed to customers
the sales by means of several
promotions. A recent example can
be take of the program named as
‘The Kids go Free’. This promotion
allowed a couple to travel with two
under or 16 years old kids for free
with all facilities. This promotion
was very fruitful as people in
thousands visited from all over the
world to Dubai making it a most
desirable tourist destination.
 while visiting stores or direct mail . Emirates also put promotion
seasonally to attract more
customers at very competitive
price.

Conclusion
The conclusion that draws out of the report is that marketing mix is the most integral part of
the marketing plan. By the comparison of the marketing mix activities taken under by Aldi and
Emirates it is clear that marketing mix has benefited both the organizations by attracting
people, branding the name of the organization, increasing revenue and profits, exploring
potential markets and expanding the business in new markets. All elements of the marketing
mix are eagerly important and all are connected with one another. Marketing mix operates like
a human body for example if one organ is not moving entire body does not function the same
applies to marketing mix. If one element is not considered the plan will fail and sound of
disaster can be heard in the air. Thus, marketing mix is the most integral part for marketing a
business in new or current region.
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