Retai

In: Business and Management

Submitted By thuyngoc
Words 2533
Pages 11
The Aldi Value brand offered shoppers basic grocery items including baked beans and orange juice at prices significantly lower than those of their branded competitors.
As a competitive mechanism to increase customer footfall in stores and maintain and build customer loyalty, Aldi has engaged in numerous price-based promotions.
Customer satisfaction is created by using criteria used by the customer while buying a product and it is about charging premium prices so that it covers the extra production costs justifying the need of choosing their differentiated product over the competitor’s product (Porter, 1985).
They give an edge over the competitor like TESCO, ASDA, Lidl, Netto,BI-LO, Kwiksave, Save-A-Lot, Penny Market, Plus, Dia by providing goods at cheap price but high quality product. And thus, it creates an excellent value for the money paid.
Another important system introduced by ALDI is the checkout system. Long queue is a common thing in most supermarket but in ALDI through checkout system it is made efficient in spite of the less number of staffs .The savings made by ALDI is generally passed on to the ALDI consumers.
All these factors make ALDI a low-cost producer and thus enable to offer customer at a lower price and yet still obtain the profits needed which gives a competitive advantage over others
Strategy – Cost Focus:
Firm dedicates to product that is basic at a lower cost to a segment of people but acceptable by the consumer (Porter, 1985).
ALDI supermarket as mentioned above, considers the middle class people in the rural and the sub-urban areas mainly by introducing the low price offer on all its products.
Organisations need a balanced marketing mix to meet the needs of its customers. 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…...

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