Project for Class 315 at DePaul University. Positioning Aldi's to have a greater market share of college students.

1. Thank You,
Aldi!

2. Marketing
Problem

3. 46%
54%
What is your Gender?
Male Female

4. 36%
30%
19%
15%
What Year are you in College?
Senior
Junior
Sophomore
Freshman

5. 5%
89%
57%
78%
95%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Internet Family Friends Advertising Visit Stores
What Sources of Information do you Generally
Use to Research Grocery Stores?

6. 27%
38%
30%
5%
How Often do you Grocery Shop
Daily
Weekly
Every 2 Weeks
Once a Month

7. 9% 10%
12%
25%
4%
37%
3%
Size Service Food Type Atmoshpere Departments Quality Promotions
0%
5%
10%
15%
20%
25%
30%
35%
40%
What is the Most Important Attribute When
Choosing a Grocery Store?

8. 98%
95%
23%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Produce Meat Bakery
Which of the Following Departments do
you Visit on a Regular Basis?

9. Attributes
• Expensive
• Organic
• Organized
• No Baggers
• Dirty
• Bad Produce
• Variety
• Coupons
• Bad Ads
• Low Quality
• Great Meat
• Generic
• Warehouse
• Fast
• No Bakery
• Convenient
• Good Service
• Preference

10. Brands

11. Total Variance Explained
• Desired TVE= minimum of 60%
• Our TVE= 61.777%

12. Expensive
Organic Organized No Baggers
Dirty
Bad Produce
Variety
Bad Ads
Low Quality
Great Meat
Generic
Warehouse
Fast
No Bakery
Convenient
Good Service
Preference
Coupons

13. Expensive
Organic
Organized No Baggers
Dirty
Bad Produce
Variety
Bad Ads
Low Quality
Great Meat
Generic
Warehouse
Fast
No Bakery
Convenient
Good Service
Preference
Coupons
Upper
East Side
Suburban
Florida
Rural
Vermont
Gas Station

14. Upper
East Side
Suburban
Florida
Gas Station
Rural
Vermont
NOBLES
PRINCES/
PRINCESSES
MERCHANTS
FROGS

15. Preference

16. Preference

17. Preference
X Fast
Good Service
Organize
d
Variety
Inconvenient
Good Ads
High Quality
Baggers

18. Quick Summary
Primary Attributes:
• Variety
• Inconvenient
• High Quality
• Good Ads
• Baggers
Secondary Attributes:
• Good Service
• Organized
• Fast

19. Market Problem
• Aldi does not have the college market share they want.

20. Features Levels
Size Grocery Superstore Warehouse
Service Outstanding Good Bad
Food Type Organic Fresh Processed
Atmosphere Organized Clean Dirty
Departments Produce Meat Bakery
Quality Prestigious Good Low
Promotion Coupons Rewards None

21. 0
0.62
0.19
0.79
0.46
0.19 0.19
0.39
0.58
0.68
0.61
0
0.49
0.56
0.19
0.89
1
0.19
0.25
0.35
0.19
0.57
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1 Grocery
Superstore
Warehouse
Outstanding
Good
Bad
Organic
Fresh
Processed
Organized
Clean
Dirty
Produce
Meat
Bakery
Prestigious
Good
Low
Coupons
Rewards
None
Intercept
Attributes
0.68

22. Statistical Quality
• Adjusted R Squared: 0.37
• We have captured 37% of our data
• Significance F: 0.01
• This tells use that our results are less than .05%, meaning that
they are due to luck

23. Best Product
Grocery 0.68
Outstanding 0.79
Processed 0.58
Organized 0.68
Meat 0.56
Good 1.00
Rewards 0.35
TPU = 4.64

24. Worst Product
Warehouse 0.19
Bad 0.19
Organic 0.19
Dirty 0.00
Bakery 0.19
Low 0.19
None 0.19
TPU = 1.14

25. 14%
17%
11%
19%
11%
23%
5%
Overall Feature Importance
Size
Service
Food Type
Atmosphere
Department
Quality
Promotion

26. Stage 1 Market Simulation
Mariano’s Trader Joe’s Aldi’s
0.68 0.62 0.19
0.79 0.46 0.19
0.58 0.39 0.19
0.68 0.61 0
0.56 0.49 0.19
1 0.89 0.19
0.35 0.25 0.19
TPU = 4.64 TPU= 3.71 TPU= 1.14

27. 2%
28%
70%
Stage 1: Current Market Share
Aldi's
Trader Joe's
Mariano's

28. Interpreting Output 5: Calculating Current
Market Share (Stage 1)
Market share calculations:
Aldi’s: exp(1.14)/[exp(1.14) + exp(3.71) + exp(4.64)]
= 3.13 / (3.13 + 40.85 + 103.54)
= .0212 = 2%
Trader Joe’s: exp(3.71)/[exp(3.71) + exp(1.14) + exp(4.64)]
= 40.85 / (3.13 + 40.85 + 103.54)
= 0.2769 = 28%
Mariano’s: exp(4.64) /[exp(4.64) + exp(1.14) + exp(3.71)]
= 103.54 / (3.13 + 40.85 + 103.54)
= .7019 = 70%

29. Stage 2 Potential Market Share
Mariano’s Trader Joe’s Aldi’s
0.68 0.62 0.19
0.79 0.46 0.19
0.58 0.39 0.19
0.68 0.61 1
0.56 0.49 0.19
1 0.89 0.19
0.35 0.25 0.19
TPU = 4.64 TPU= 3.71 TPU= 2.14

30. 68%
27%
5%
Stage 2: Changed Most Important
Attribute: UP 3%
Mariano's
Trader Joe's
Aldi's

31. Potential Market Share (Stage 2)
Market share calculations:
Aldi’s: exp(2.14)/[exp(2.14) + exp(3.71) + exp(4.64)]
= 8.50 / (8.50 + 40.85 + 103.54)
= .0555 = 5% UP 3% WOO!
Trader Joe’s: exp(3.71)/[exp(3.71) + exp(1.14) + exp(4.64)]
= 40.85 / (3.13 + 40.85 + 103.54)
= 0.2672 = 27% DOWN 1%
Mariano’s: exp(4.64) /[exp(4.64) + exp(1.14) + exp(3.71)]
= 103.54 / (3.13 + 40.85 + 103.54)
= .6772 = 68% DOWN 2%

32. Stage 3 Competition Reacts
Mariano’s Trader Joe’s Aldi’s
0.68 0.62 0.19
0.79 0.46 0.19
0.19 0.39 0.19
0.68 0.61 1
0.56 0.49 0.19
1 0.89 0.19
0.35 0.25 0.19
TPU = 4.25 TPU= 3.71 TPU= 2.14

33. 59%
34%
7%
Stage 3: Competition Reacts: UP 2%
(UP 5% FROM BEGINNING)
Mariano's
Trader Joe's
Aldi's

34. Stage 3: Potential Market Share
Market share calculations:
Aldi’s: exp(2.14)/[exp(2.14) + exp(3.71) + exp(4.25)]
= 8.50 / (8.50 + 40.1 + 70.1)
= .071 = 7% UP 2% (UP 5% FROM BEGINNING)
Trader Joe’s: exp(3.71)/[exp(3.71) + exp(2.14) + exp(4.25)]
= 40.1 / (8.50 + 40.1 + 70.1)
= 0.2672 = 34% UP 4%
Mariano’s: exp(4.64) /[exp(4.25) + exp(3.71) + exp(2.14)]
= 70.1 / (8.50 + 40.1 + 70.1)
= .590 = 59% DOWN 9%

35. Brief Recommendations
The primary attributes are:
• Variety
• High quality
• Good ads
• Baggers
• Inconvenient

36. Recommendations
• Where Perceptual Mapping and Conjoint Analysis agree:
• Being fast
• Having good service
• Being organized

37. Thank You!