Aldi The dark house Discounte
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Aldi The dark house Discounter
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Aldi The dark house Discounte
- 1. Aldi - The Dark Horse Discounter
- 2. Summary Aldi- one of the world's least known discount grocery store Low profile due to: Aldi penchant for survey Limited advertising 1976-Aldi entered into US market December 2013-plan to open 50% more store by 2018 Warehouse club stores(bjs,costco,walmart) offered low price on branded goods Walmart had more market presence, buying power, breadth of inventory
- 3. History ◉1948- German brothers theo and karl took mother essen grocery store. ◉Goods were sold at low prices ◉Albrechts expand limited product range while others increased their product selection ◉They limit their product selection to basics ◉1958- owned and operated 300 outlets ◉1960-split company into : Aldi Nord(run by theo) Aldi Sud(run by karl) ◉1962-opened first store in germany with name Aldi
- 4. International expansion ◉1960- Aldi store expanded to austria ◉Mid 1970’s-operating in belgium, denmark, netherland ◉1990-held 5% market share in netherland ◉1992-$1 billion shares ◉1976- Entered US Market ◉Late 1980’s - UK ◉2000-40%market share in german grocery
- 5. United Kingdom 1989 ◉Aldi reduced its heavy reliance on private label goods.Stock national Brands ◉Aldi found relentless competitor in the local discount chain Kwik Save ◉Aldi - Gateway Food Market Outlets exclusive ◉2013- 3.9% market share while big 4 Asda,Morrison,Sainsbury,Tesco ◉Rated 2 best grocer after Waitrose(4.6%)
- 6. United States ◉1976- opened first US store in the rural midwest ◉HQ - Illinois ◉150 stores along with distribution centre ◉1989 - half billion dollar range - US Expansion ◉1992-1993 ---> 200 - 400 stores ; Sales $1.2 billion ◉2009 - US revenues $6.5 Billion - 10% of Total revenues ◉25 Rank US Supermarkets ◉Focus - Private labels (95% - Assortment - value proposition) ◉Prices - “ Delightfully , breathtakingly low”
- 7. Aldi Operations ◉Private label brands in the stores ◉Rigorous quality control - Lab tests and Daily Sampling ◉Double guarantee - Quality Claims if any replace and refund ◉Frugality of the founders ◉8000-15000 sq ft worldwide ◉Efficient operations by employees ◉Traditionally memorised prices for faster checkout for customers for faster checkout ◉Scanners introduced 20 years after walmart ◉Product assortment , variety and pricing decided centrally
- 8. ◉Karl - “Customer is not the king, we don't provide service , we mass produce things” ◉Customer Participation ◉25c for carts ◉Cash or Debit card favoured mode of payment ◉ Special buy days ◉Price won’t be changed after its fixed once ◉Wages were above minimum wages ◉Attracting graduates to apply for Aldi
- 9. Discount Retail in the United States 1960-Discount retail emerged in the US Competitors ◉ Walmart ◉ Kmart ◉ Target Trader Joe - purchased by Aldi Nr Warehouse Clubs Costco Stocks available in pallets Buy and bag their own purchases
- 10. WALMART Sam Walton Warehoused Improved logistics and IT for supply outlets 1972- IPO 1980’s Selling Groceries Neighbourhood Markets Walmart Express
- 11. SWOT ANALYSIS Strength 1. Affordable Price 2. Aldi strong hold in Germany 3. Low Cost Operation 4. Top Quality Product Opportunity 1. Need to enter Developing Market 2. Need to increase the marketing budget Weakness 1. Ambiance 2. Not big warehouse as like WalMart 3. Perception of being cheap product retail store Threat 1. Other retailers SKU 2. Product of Aldi can be thrown by the establish brand 3. People looking for complete brand experiance +918086676118