This document provides information about ALDI, including its history, values, product testing process, target consumers, and social media presence. Key points include: - ALDI originated in Germany in 1976 and has since expanded to over 2,500 US stores, testing over 50,000 products annually in its test kitchen. - Its target consumer is college students and older adults seeking an expedited, affordable shopping experience. However, research found many are unaware of ALDI's remodels and quality testing. - On social media, ALDI focuses on low prices but does not thoroughly communicate its quality and selection. Engagement is highest on Instagram and Facebook where people discuss new offerings and store updates. - Primary

2. WHO WE ARE

3. ABOUT ALDI
ALDI US made its debut in the United
States in 1976 as an expansion of the
German grocery chain. Since then, the
brand has experienced a large amount
of growth; by 2022, ALDI has projected
it will have over 2,500 locations in the
United States.
Three core values create the ALDI
Difference:
-Consistency
-Simplicity
-Responsibility

4. -90%of ALDI’s assortment is its
private-label brands.
-All of their private-label products
undergo 50,000controlled tests at
their company headquarters.
-In recent years, the number of
product variations that are tested in
the kitchen has increased by 15%.
The ALDI Test Kitchen

5. PROOF
POINTS

6. Selection Quality
Value Easy to shop
PROOF POINTS

7. Not a One-Stop-Shop
Poor Selection
The Quarter and Reusable Bags
Low Brand Awareness
Price
PAIN POINTS

8. CURRENT
TARGET
Our Current Consumer:
• College students and people 55+ who are looking for an
expedited, affordable, no-frills shopping experience
• Located in suburban and rural neighborhoods with an average
income of $40-60,000 a year
• Parental influences and childhood experiences cause ALDI
shoppers to have a strong association with the brand
ALDI serves shoppers in over
10,000stores across 18 countries

9. THE ASK

10. SECONDARY
RESEARCH

11. -Millennials are almost twice as likelyto interact with
their grocer on social media than the average for all age
groups.
-Last year 29.6% of grocers had mobile apps, and this year
that number is 54.2%.
-This year, 18 million US adults use a grocery app at least
once a month; this number is up 49.6% since last year.
-By as early as 2023, 70% of consumers will be doing their
grocery shopping online.
This increase in online grocery shopping will be largely due to
“Digital Pioneers”
Grocery Shopping
and Technology

12. LIDL
ALDI and LIDL:
2 Sides of the Same Coin?
-LIDL is another German-based
retailer
-ALDI has more locations
In comparison studies, LIDL excelled in
value and freshness. ALDI was also
the only store to score lower than LIDL
on selection.
When LIDL enters a market, competing
retailers lower their prices, on average,
by 9.3% to compete. In cases where LIDL
enters a market shared with ALDI, ALDI
lowers their prices by up to 19%.

13. ALDI is currently in the process of remodeling over 1,300 stores.
In addition to featuring organic produce, the remodels will:
-Provide a more upscale shopping experience
-Eliminate negative stigmas about ‘‘discount stores’’
-Elevate the emotional experiences associated with grocery shopping
ALDI STORE
REMODELS

14. Price is 5x more important than
convenience
of U.S. consumers are value
shoppers
IMPORTANCE
OF PRICE
5xMORE IMPORTANT
89%

15. Private label brands are growing
75% of shoppers agree that the quality of private label brands has
increased over the last few years.
Quality plays a role
Equal quality + lower price than national brands = interest
Additional factors matter
Millennials are interested in the availability of local cuisine (27%),
different flavors or variety (37%) and a rewards or loyalty program
for the private label brands (42%).
PRIVATE LABEL
BRANDS

16. SOCIAL
LISTENING

17. INSTAGRAM
595 POSTS
231k FOLLOWERS
139 FOLLOWING
Consumer Observation:
-Consumers love the low prices; like the
taste of ALDI’s food
-Many are upset about the limited selection
and limited-time products
-Mixed reviews on the remodels
-ALDI’s curated selection is rarely mentioned

18. -ALDI engages with consumers’ comments
and utilizes Facebook’s chat feature.
-Like Instagram, low-price messaging
dominates; although Facebook has more posts
mentioning ALDI’s Test Kitchen and Corporate
Social Responsibility.
Consumer Observation:
Consumers react mostly to the low price
messaging and the prospect of delivery
service.
FACEBOOK
2.3M LIKES

19. -Twitter has less food-related content; more
social events and ALDI news.
-Low price messaging appears the most often
Consumer Observation:
Less engagement between ALDI and its
customers on Twitter; People appear to care
more about their local ALDI rather than ALDI
as a national brand.
23.8k TWEETS
95.5k FOLLOWERS
74 FOLLOWING
TWITTER

20. -ALDI’s Pinterest boards are recipe-driven.
-The recipes ALDI features are mainly
healthy and inspirational.
Consumer Observation:
-Little to no engagement between ALDI and
its consumers on Pinterest
-ALDI’s recipes on Pinterest have a
potential to attract new customers and
maintain current customers
PINTEREST
299.1k
44k
MONTHLY VIEWERS
FOLLOWERS

21. Primary target on social media:
Mothers and women.
Most brand-consumer engagement:
Instagram and Facebook.
-Low-price message is communicated
the most
-ALDI’s quality and selection are not
communicated thoroughly
-People do not pay much attention to
Aldi’s social responsibility and the ALDI
Test Kitchen. They care more about
new offerings, grocery delivery, store
renovations, etc.

22. PRIMARY
RESEARCH

23. QUALITATIVE
GOALS

24. OBJECTIVES
Understand our target market’s lifestyle, background and the role of food in their lives
Discover 22-28-year-olds’ thoughts, feelings and frustrations about grocery shopping
Find out what motivates people to grocery shop and how they perceive their grocery
shopping
Probe for any negative misconceptions and pain points about grocery shopping
Discover which factors play the biggest role in deciding where to grocery shop at

25. METHODOLOGY
-Twofocusgroupdiscussions
-Six in-depth interviews

26. Participant
requirements:
- Age: 22-28
- Primary grocery shopper for
household
- Shops for groceries at least twice a
month
- Willing to shop at ALDI
- Does not work in advertising or
public relations
- Does not work at a grocery store
SCREENER

27. Laddering topics: Lifestyle, Food, Grocery,
Shopping, and ALDI
Techniques: Word association and personification
DISCUSSION
GUIDE

28. PARTICIPANTS
ALDI Loyalists
ALDI Occasionals
ALDI Prospects

29. Loyalists
The Loyalists are avid
ALDI shoppers
-Likely to recommend
ALDI to friends
-Don’t need
national labels
-Like ALDI’s suprising
selction
Prospects
The Prospects have
never been to ALDI, but
are willing to give it a try
-Heard about the great
prices and the
wonderful selection of
wine and cheese.
-Skeptical or unaware of
the quarter system and
the bring your own bag
policy.
Occasionals
The Occassionals are
variety seekers when it
comes to grocery
shopping
-ALDI is a part
of their consideration
set
-Also shop at Walmart,
HyVee, Target, etc.

30. KEY
TAKEAWAYS

31. SELECTION

32. The Paradox of Choice
ALDI shoppers admitted that
they often craved a specific brand
that Aldi did not carry.
The paradox of choice is the theory
that having more options is not
always better.
More Choices =
Cognitive Dissonance
When people have fewer choices,
consumption decisions are easier
to make and shoppers often end up
buying more.

33. Our participants are ultimately looking for a one-stop-shop
-Don’t want to visit multiple stores
-ALDI’s limited and rotating selection causes confusion
Stigma persists that a smaller selection = not all necessary ingredients
-ALDI shoppers could perceive their visit as a waste of time if they can’t get
everything they need at once
INSIGHT

34. “I don’t need a million options to choose
from, but I would like to be able to find
what I need. With my busy schedule,
making a second grocery store run is a big
waste of my time.”
“
”- Focus Group Participant

35. Insight: The focus group participants are looking to optimize their
time and not waste it on making second, unnecessary grocery runs.
Solution: Since ALDI is not perceived a one-stop-shop, it should
advertise its philosophy on why the selection is limited.
RECOMMENDATION

36. QUALITY

37. Viewpoints on value connected to quality
-Cheaper price = cheaper quality
-Canned/packaged goods- Little to no
difference in perceived quality
Quality Benchmark: Meat and produce
-Lack of quality produce and meat = Loss of
customers who use those food categories as
benchmarks of quality.
INSIGHT

38. “
”
“Quality in particular groceries is really
important to me. This includes primarily
produce and meat. I am willing to pay more
for higher quality, but not when it comes
at an overwhelming cost.”
- IDI Participant

39. RECOMMENDATION
Insight: Our participants are looking for quality in two main food
categories: produce and meat. They believe, for various reasons,
that ALDI does not meet their quality standards.
Solution: Participants were not aware of the quality testing that
ALDI performs on their products. ALDI should advertise more
about the measures it takes to ensure that its produce and meat are
at a high quality along with an exceptional price.

40. VALUE

41. INSIGHT
The participants have strong feelings about the value of ALDI products
-Value is ALDI’s unique selling proposition
-Exceptional value does not override other factors when deciding on a grocery store
There must be good quality with the value, or the customer will look
elsewhere.
-Value is also connected with the idea that a lower price precedes lower quality
-The participants describe the value of ALDI as “affordable” and not “cheap”

42. “
”
I would consider myself a thrifty person because I am always looking
for good deals and affordable options. I love finding creative ways
to save money, especially on things like groceries. There are some
underrated places where I can get great groceries at manageable
prices. I know there are probably higher quality options at high-end
grocery stores, but I am happy taking the affordable route and
putting the money I am saving towards something fun.
- IDI Participant

43. RECOMMENDATION
Insight: Our participants realize that ALDI has one of the best values
around. When they go to ALDI, they know that they are getting the
best price. However, they don’t believe they are getting the best
quality. Although price is getting customers in the door, it is also
driving customers away with the negative perception of low quality.
Solution: ALDI should combine their low price messaging with
concrete evidence of their quality products. Enlightening consumers
on the subject, and giving them a “reason to believe”, can be done
through communication in advertising and social media.

44. EASY-TO-SHOP

45. Our participants are looking for an efficient grocery store
-Simple path to products, quick cashiers, helpful employers, etc.
-Believe ALDI is an efficient store, but could be optimized even further.
ALDI is a ‘do-it-yourself’ establishment
-Some people might feel that the bag and quarter system is inconvenient
-Primary research shows it isn’t a big enough of a problem to not shop there
INSIGHT

46. “I don’t need all the frills of a luxury grocery store, but I do appreciate
efficiency. A easy-to-navigate layout, friendly employees, and short
checkout lines go a long way for me. Most of the time, I have a
limited window for shopping and need to get in and out in under
twenty minutes. I also appreciate consistency while grocery
shopping. Sometimes I feel totally disoriented if I go to a new
location and the set up is different. Logically organized aisles and
clear signs make grocery shopping so much easier. Short lines are a
huge bonus, as well!
- Focus Group Particpant

47. RECOMMENDATION
Insight: Our participants see ALDI as an efficient store that is easy
to shop. The unique qualities that ALDI possesses are not turn-
offs and they don’t drive people away. However, they do believe
that prior knowledge would be extremely beneficial to non-regular
customers.
Solution: ALDI should focus on educating consumers ahead of
time so they won’t hesitate while getting a cart or get frustrated
about having to buy bags from the store. Having the best initial
experience in the store could help secure new customers and turn
them into loyalists.

48. CONSUMER
PROFILE

49. INTRODUCING:
The Self-Made Shopper

50. -Lives a busy lifestyle with work, school and other activities
-Still recently new to supporting themselves individually in all aspects
of life, but they’re proud of it
-Doesn’’t need extra and glamorous luxuries
-Looking for a good balance between price and quality
-Makes most meals at home rather than eating out for price and
health purposes
-They are not affected by the stigma that comes with shopping at a
‘discount’ store

51. When I shop, I’m looking for an expedited, no-frills grocery
store experience. I usually go to the store after a long day of
work, so I’m looking to get in and get out quickly with what I
need. I don’t need all the bells and whistles of some other gro-
cery stores. I’m strictly looking for good value with an efficient
in-store experience. However, even though I do look for good
value in terms of price, I’m not willing to sacrifice quality for
that. So I need a store that gives me a nice balance of both.
“
”- Self-Made Shopper

52. BARRIERS
& OPPORTUNITIES

53. Barrier #1:
Lack of Awareness of ALDI
Remodels Causes Confusion

54. Barrier #2:
Quarter Controversy and Bag
Dilemma Disillusions Customers

55. Barrier #3:
ALDI as ‘Cheap’ not as ‘Quality’

56. Opportunity #1:
Permeate the Online
Grocery Shopping Market

57. Opportunity #2:
Advertise the
ALDI Test Kitchen

58. Opportunity #3:
Leverage ALDI’s
Social Media Presence

59. APPENDIX SCREENER
DISCUSSION GUIDE
SOURCES
Thank you
for listening!
Any
questions?

60. SOURCES

61. SOURCES