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ALDI Australia

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Phuwanat Tharanop

on 23 June 2014

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Transcript of ALDI Australia

design by Dóri Sirály for Prezi
1. Business Overview
2. Market Overview
- Customer Information
-Market Information
- Industry Information
- Product/Service Information
3. Objectives
4. Strategy
- Product
- Pricing
- Distribution
- Promotion
-Operational Plan
- Sales promotion
- Public relations
- Direct Marketing
-Online Marketing

ALDI is a global discount supermarket chain based in Germany, offering great quality at incredibly low prices.
What will be included?
- www.aldi.com.au
1. Business Overview
Internationally >>>
ALDI's German >>>>
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 Australia
Marketing Plan

Presented by Phuwanat Tharanop
The chain is made of two separate groups,
Aldi Nord and ALDI Süd.
The two operate independently,
each within specific areas.
ALDI Nord operates in Denmark, France, the Benelux countries, the Iberian peninsula, and Poland
ALDI Süd operates in Ireland, the United Kingdom, Hungary, Switzerland, Australia, Austria, and Slovenia..
Both ALDI Nord and Aldi Süd also operate in the United States; Aldi Nord is owner of the Trader Joe's chain while Aldi Süd operates as Aldi.
2. Market Overview
Since opening our first Australian store in 2001, ALDI has continued to be one of
the fastest growing retailers
in the country.

Already with over 270 stores nationally and a network of 8,000 worldwide, we've set our sights high with many more stores planned for the eastern seaboard over the coming years.
Another key focus of Aldi’s marketing strategy is on demonstrating that Aldi brands are of equal quality to well-known brands
ALDI is already one of the top 10 Australian retailers.

In 2009, ALDI was awarded the Australian Retail Association’s

Australian Retail Innovation of the Year’.
2.1 Customer Information
Our philosophy still stands.

All people, wherever they live, should have the opportunity to buy everyday groceries
of the highest quality at the lowest possible price.
Aldi’s focus is on offering the best possible quality products at the lowest possible prices. Every buyer for Aldi, from fresh fruit and vegetables to meats and electronics, is an expert in their field. They look for products from around the world. This enables them to get the finest quality products that Aldi then sells under its own brand labels.
2.2 Market Information
Aldi’s market share still trails that of market leaders Woolworths and Coles Supermarkets Australia.
However, Aldi is catching up fast.
Aldi’s market share rose to 10.3 per cent in the December quarter, from 10 per cent a year earlier and 5 per cent in 2007.
The chain’s customer base has risen four-fold in eight years, from an average 1 million customers a month to 4.2 million a month – half that of Coles (8.8 million) and Woolworths (9.5 million).
Woolworths and Coles have also called on Aldi to sign the voluntary grocery code of conduct agreed with the Australian Food and Grocery Council late last year.
2.3 Industry Information
ALDI has grown to become
one of the world's leading retailers,
operating successfully in 17 countries with over 7,000 sites worldwide.

We are offering deeply discounted prices on more than 1,400 popular food items (a typical grocery store has 30,000).

ALDI buys inexpensive land mostly on city outskirts, builds simple warehouses, employs a modest staff, and carries mostly (95%) private-label items, displaying them on pallets rather than shelves. ALDI has more than 1,200 stores in 30-plus US states, but Germany (where ALDI has about 4,300 stores) accounts for about two-thirds of sales.

2.4 Product/Service Information
We are offering a wide range of products
in the categories such as Baby Products, Bags for Home, Bags in Store, Batteries, Biscuits, Bread Breakfast, Foods, Cakes, Canned, Chilled Foods, Chips, Snacks & Nuts, Cleaning Coffee, Tea and Hot Beverages, Condiments, Confectionery, Convenience Foods, Cooking Needs, Eggs, Fresh Meat, Frozen Food, Health and Beauty, Housewares, Laundry, Liquor, Paper, Goods, Pasta, Pet Needs, Preserves and Spreads Processed Foods, Rice, Soft Drinks and Telecommunications.
We undertake independent testing on an ongoing basis
to ensure all suppliers meet our own strict specifications.
Furthermore, Aldi has learned through over 60 years of operation that
our people are the key to every success.
We want the best and offer an industry–leading package to suit. ALDI staffs are highly motivated, energetic and have a hands-on can-do attitude.
3. Objectives
• Aldi’s main marketing objective is to grow its market share within the UK grocery market. With the economic crisis came an increased demand for value for money. Market research identified that 80% of Aldi’s customer base also shopped at other supermarkets. These customers spent around $36 billion per year in the other stores. Aldi’s marketing strategies therefore focus on generating customer loyalty.

• Aldi focuses its marketing efforts on encouraging customers that are already familiar with the brand to shop at Aldi more often.

4. Strategy
For Aldi to achieve its objective of increasing its market share, it had to ensure its promotional activity demonstrated the balance of its marketing mix.

– 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 many kind of promotions with a focus on its ‘Like Brands’ and ‘Swap & Save’ campaigns.

- Another key focus of Aldi’s marketing strategy is on demonstrating that Aldi brands are of equal quality to well-known brands.
4.1 Product
Aldi’s focus is on offering the best possible quality products at the lowest possible prices.
We are committed to sourcing fresh produce from Australian suppliers.

For products, we are also sourcing more organic, fair trade and sustainable food products.

Moreover, we have reduced food wastage throughout our business while helping others by partnering with charitable food agencies.

• ALL ALDI food grocery items now free of artificial food colours

• ALDI Garments are Quality Tested
• Ensuring the world’s Seafood Population is protected
4.1.1 Select 4 Products
• Farmdale Fresh Light Milk
• Expressi Coffee
• ALDI’s exclusive skin care and beauty range : Lacura®
• Choceur brand chocolates
4.2 Pricing
Aldi is able to offer quality products at low prices as it buys in great volume. The fact that Aldi buys such large quantities of these products allows great leverage for negotiating the best possible prices with its suppliers.

Buying large quantities of each product allows Aldi to pass these savings to its customers.
ALDI 's also using 2 pricing strategies which are:
National Pricing
Unit Pricing
Whether you’re from Rosehill to Rutherford, Bundaberg to Ballarat, you’ll pay the same low prices on groceries in every ALDI store
It helps you judge the real value of your shopping
some reductions coming in 2014:
• Simplee Instant Cup Noodles 70g 79c each >> 75c ($1.07 per 100g)
• Berg Middle Bacon 1kg $7.9 >> $7.69 ($7.69 per kg)
• Farmdale Full Cream or Skim Milk Instant Milk Powder 1kg $5.99 kg >> $5.69 (57c per 100g)
• Power Force Floor Cleaner 750ml $2.09 each >> $1.99 (27c per 100ml)
• International Cuisine Dim Sims 30pk $3.69 >> $3.49 (23c per 100g)

4.3 Distribution
Aldi keeps its store layouts simple to limit waste and keep costs down.

When considering new store locations, Aldi takes into account:

• the number of people visiting an area as well as the demographic of the area
– for example, the population of the area should be more than 30,000 people

• The position of store
– Aldi focuses on edge of the town centre locations with good visibility from a main road and not too much competition

The accessibility of the store and its public transport links

• The number of parking spaces available.

Customers can use ALDI Store locator to
search for all store information on store addresses.

4.4 Promotion
Aldi uses a range of methods to reach its customers and potential customers. These include:
• Advertising
• Website
It features all of Aldi’s key promotional messages as well as additional content to engage consumers. Examples include recipe ideas and weekly offers
• Public and Media relations
• 3rd party endorsements
Aldi has entered over 1,000 of its products into awards such as Grocer Golds, Pizza and Pasta Awards (PAPA) and the British Frozen Food Federation Awards
• Direct Marketing
• Online Marketing
4.5 Operational Plan
For Aldi operating efficiently, it involves reducing costs in all areas of the business.

Some of the key areas where Aldi is able to minimize costs are by saving time, space, effort and energy.

Aldi’s approach to doing this is to run its business around the principles of lean thinking.
Aldi’s core purpose is to
‘provide value and quality to our customers by being fair and efficient in all we do’
. Everything Aldi does is focused around giving its customers value for money. Through being efficient and cutting costs Aldi can then invest profits back into the business. They can then be used to further meet its business objectives for growth.

4.6 Sales Promotion

At ALDI, There have ALDI’s
‘Special Buys’
sale features which are new discounted items for every Wednesday and Saturday.
and in keeping with our promise of smarter shopping, all our special buys™ offer exceptional quality and value for money.
ฤAll of our items are covered by our 60 day refund policy.

That means we'll refund or replace any item as long as you return it within 60 days of purchase in its original packaging, along with any accessories it came with and your receipt.
4.7 Advertising
AlDI Advertising aimed at a mass audience. These include the media such as television, radio, magazines and newspapers that reach a large number of people.

Moreover, Aldi promotes ‘award-winning products’ with motivational speaker advertisements.

It has launched a series of ads in which a motivational speaker spruiks various products, including cheese and laundry powder, as the key to winning.

In the ad for Aldi’s cheese, created by BMF, the speaker says “I’m going to unleash your winning potential with the power of cheese. This is an Aldi award-winning cheddar and when you eat a winner you become a winner”.
The campaign is also promoting Aldi’s laundry powder.
4.8 Public and Media relations
Effective public and media relations help to create positive press exposure.

Aldi has secured record coverage through hard working and innovative media relations.

from newspapers such as The Grocer, The Financial Times and The Times were invited for exclusive interviews with Aldi’s Group Managing Directors.

They discussed record breaking sales results. Further coverage was gained through targeting key media at specific times with seasonal promotional messages.

The ‘Swap & Save’ campaign highlighted the savings available through shopping at Aldi at times when value for money is high on the agenda.

This was particularly relevant with its ‘Back to School’ and Christmas products.
4.9 Direct Marketing
ALDI uses direct advertising techniques that can include cell phone text messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, targeted television commercials, response-generating newspaper/magazine advertisements, and outdoor advertising.
- Advertising on TV.
- Printed leaflets
- Newspaper
- In store posters
4.10 Online Marketing
Aldi uses a range of online marketing methods. These include social media and targeted e-mails to customers.
- Aldi’s Facebook and Twitter pages
- Direct e-mails.
- Aldi’s website
4.4 Promotion
Promotions are paid-for advertising aimed at a mass audience
. These include the media such as television, radio, magazines and newspapers that reach a large number of people.

This form of promotion can be costly. It can also be difficult to target specific audiences. Aldi uses a range of methods to reach its customers and potential customers. These include:
• Advertising
• Website
• Public and Media relations
• 3rd party endorsements
• Direct Marketing
• Online Marketing
• 3rd party endorsements
Aldi has entered over 1,000 of its products into awards such as Grocer Golds, Pizza and Pasta Awards (PAPA) and the British Frozen Food Federation Awards.

In 2012 Aldi was awarded ‘Best Supermarket’ by consumer Watchdog.

Further positive endorsements for products on TV and in the press reaffirm the message that Aldi products are of the highest quality as well as being great value for money.
-Watch out Woolies: Aldi’s rapid growth could open the door for others

Date February 12, 2014
Sue Mitchell

Read more: http://www.smh.com.au/business/retail/watch-out-woolies-aldis-rapid-growth-could-open-the-door-for-others-20140212-32i11.html#ixzz35R8Qrtnc
- Businesscasestudies.co.uk/aldi
Thank you
for your attention
Sorry if there was any mistake,
Improvements will be considered next time.
Phuwanat Tharanop
ID: 1499002
Box hill Institute of TAFE
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