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Aldi Promotion.

Aldi Promotion

Charlie Udall

on 27 March 2014

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Transcript of Aldi Promotion.


Comment: Tesco continues to innovate with new projects. (2013). Retail Week. Retrieved from www.lexisnexis.com/uk/nexis

Perks, R. (March 2013). Food and Drink Retailing. UK: Mintel Group Ltd.

Perks, R. (November 2012). Supermarkets: More Than Just Food Retailing. UK: Mintel Group Ltd.

Supermarkets - Shoppers swap price for quality of goods. (2013, February 1). PR Week, Pg. 26, 639 words.

Tesco deal for Giraffe chain could see restaurants opening in-store. (2013, March 13). The Daily Telegraph. Retrieved from www.lexisnexis.com/uk/nexis

The grocer. (2013). Retrieved from http://www.thegrocer.co.uk/

The Guardian. (2013). Retrieved from http://www.theguardian.com/

UK supermarket shoppers turning to budget supermarkets. (2013, June 7). Retail Digital. Retrieved from www.lexisnexis.com/uk/nexis

Barriers to entry
Economies of scale
Capital requirements of entry
Access to supply or distribution channels
Customer or supplier loyalty

Bargaining power of suppliers
Major grocery supply chains fear of losing their business to the large supermarkets
Bargaining power of customers
The more products that become standardized, the lower the switching cost
power is yielded to customers.
Tesco’s famous loyalty card – Clubcard
Threat of subsitutes
General substitution is able to reduce demand for a particular product, as there is a threat of consumers switching to the alternatives. In the grocery industry this can be seen in the form of product-for-product as in general they all sell the same products with few exceptions.
Bargaining power of competitors
concentrated in the hands of a relatively small number of retail buyers.
Operating in a mature, flat market where growth is difficult, and consumers are increasingly demanding and sophisticated.
UK grocery retailers have had to be innovative to maintain and build market share.
Porters 5 forces
ALDI - Promotion.
Current Situation
Above the line
The market - Growth and Share
TV advertisement
Newspaper adverts
Aldi's Promotional issue

We believe Aldi currently don't capitilise on the use of social media as a way of interacting and promoting there products and offers to customers.
Full name: Aldi Einkauf GmbH & Compagnie
1961 Business was split into 2 divisions Aldi Sud and Aldi Nord
1967 Opened first UK and US stores
2008 Moved into Hungary, Greece and Poland
2010 Exited Greece
2013 Opened 500th store in UK
Now, 9235 stores in World

consumer orientation
Mass Market targeting
Section advertising their special offers that customers can click
- Allows for weekly promotion

- Lacks interaction of social media

2013 figures released show a massive jump for aldi's growth
There share however is still relatively low, with only 3.3%, 3rd lowest.
1. Claims to serve top quality products
2. Offers at very
3.Keeps the operating costs low
4. Has operations in over 15 countries worldwide

1.Still relatively small as compared to other brands
2. Have been criticized in the media for poor customer service
3. Sometimes allegedly regarded as a store for cheap and low quality items

1. Could invest more in advertising to catch up/compete with competitors such as Tesco’s and Sainsburys. (e.g social media)
2. Expanding into growing economies like Africa, Asia etc

1. Oligopoly Market.
2. Private label brands of ALDI can be tossed away by established brands.
3. Bank of england statement released, now in a stable recovery.

PESTEL analysis
Why is social media so important?
1. Its the perfect way to give out, receive feedback and criticism from the public.
2. Every hour more people who are potentially customers join social networks.
3. It’s not an intrusive way of marketing.
4. Social media allows you to communicate through dialog.
5. It’s cheap.
6. You can market your product using different types of data.
7. It introduces a community.
7. Research.
Aldis Facebook likes compared to competitors
Aldis Twitter followers compared to competitors
The market
Retail focuses not only on price
Aldi's Promotional issue

We believe Aldi currently don't capitilise on the use of social media as a way of interacting and promoting there products and offers to customers.
The focus shifts from price cutting to basics of retailing
Store standards
Service standards
Product Quality
Product innovation
Product range
58% of consumers have used or are willing to use a service offered by a supermarket
Cafes are the most popular service, especially among older customers. While other services are more used by younger customers
Over half of the supermarket customers are buying non foods just because they are there
They are much more than opportunistic purchases - 1/5 of customers are prepared to make a special trip just for non-foods.
Another integral part of the retail proposition amongst all of the majors is Online selling, although not as an independent channel of distribution
Online market
Mintel estimated that grocers retail sales were £141,478bn in 2012, up 3.7% on 2011. It is foretasted to grow to 174,165bn by 2017. Grocer retailers account for 46.8% of all retail sales (excluding fuel)
Grocers’ retail sales (incl. VAT), 2007-17
Source: National Statistics/Mintel (2012)
Sales for non-food
and services are growing
Current problems with Aldi's social media
Social Media definition -
interaction among people in which they create, share, and/or exchange information and ideas in virtual communities and networks
Thanks for listening
government encourages retailers to provide a mix of job opportunities
meet the demand from population categories
Steady recovery
Demographic changes
Consumers need more convenient and high tech experience while shopping
Self checkout, in store media, intelligent scales and shelves, electronic advertising displays.
Smart phones, Apps, Social media

“The Carbon Plan”
Renewable energies to generate power

displaying nutrition facts
monopoly controls and reduction of buyers’ power
Full transcript