Aldi case study: premiumizing grocery offerings in discount retail - Market Research Reports - Research and Markets

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Aldi case study: premiumizing grocery offerings in discount retail

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Introduction
This report on Aldi forms part of Datamonitors case studies series, which explores business practices across a variety of disciplines and business sectors. Each case study provides a concise evaluation of a company that stands out in some area of its strategic operations.

Reasons to Purchase
Gain insight into the methods used by important industry players to give them a competitive edge
Identify specific areas for operational improvements
Capitalize on the knowledge of experienced companies when entering a new niche or market

Contents:

OUR VIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 4
The hard discount grocery format is less successful in the UK than Germany 4
UK grocery giants make it hard for continental discounters to succeed 4
Economic problems help the discount format succeed in Germany 4
Aldi benefits from Kwik Save’s struggles, inheriting its’ customers 4
Aldi repositioned itself in the UK to offer a softer discount proposition 5
Aldi introduced a premium range in 2005 to attract broader social economic groups 5
New city center stores aim to attract more well off consumers 5
New advertising promotes value for money rather than a low price shopping experience 6
Premium offering is key to its UK expansion plans 7
Aldi has also been upscaling in other European nations, by broadening its product offering 7
Big name brands now offered in Aldis German stores 7
Aldi’s German Internet site offers extra services not available in-store 7
Aldi offers low cost mobile services in Germany and Belgium 7
Despite repositioning, its customer loyalty remains behind other UK grocers 8
Aldi’s premium range enhances consumer loyalty, but a high proportion of customers still shop elsewhere 8
The broader consumer base criticize Aldis shallow premium offering 8
Store environments remain basic and service minimal, which could devalue its premium offering 9
However, Aldis reputation is improving, as noted in the Which? consumer survey 9
APPENDIX 10
Case study series 10
Methodology 10
Secondary sources 10
Further reading 10
Ask the analyst 10

Companies Mentioned

ALDI Group Ferrero S.p.A John Lewis Partnership plc Somerfield

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Aldi case study: premiumizing grocery offerings in discount retail
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