3. WHO WE ARE
Ceci Haberdash
Hannah Cox Nour Feghali Madison Stemmler Cole Locascio
Griffin Schaetzle Riley Christiansen Yujing Lin
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4. ABOUT ALDI
ALDI 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 U.S. ALDI prides itself on highly efficient operations that
allow for low prices. The brand has identified three core values to model
their business after: consistency, simplicity and responsibility. Together,
these three values create the ALDI Difference:
āOur unique business model enables us to provide the highest quality
products at the lowest possible prices. This value stems from the
numerous efficiencies and innovations weāve instituted at every level
of our organization. Our stores offer the customer the most commonly
purchased grocery and household products in the most common size ā
in a smaller, more manageable environment designed with sustainable,
long-term savings in mind.ā
From low prices, consumers bringing their own shopping bags,
and needing a quarter to operate a shopping cart, the ALDI shopping
experience is certainly unique. As ALDI continues to expand throughout
the U.S., it is poised for even more growth. Defining the brandās position
within the grocery category will allow ALDI to capitalize on this
opportunity.
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5. Ninety percent of ALDIās assortment is its
private-label brands. In order to ensure that
these brands are matching and exceeding the
quality of competing national brands, and
exceeding the expectations of consumers,
they undergo 50,000 controlled tests at their
company headquarters in Batavia, Illinois.
These tests happen every time ALDI launches
a new brand or product, or when ALDI changes
the recipe for a current product. In recent
years, the number of product variations that
are tested in the kitchen has increased by 15
percent. This is due to the fact that they are
shifting towards more health-conscious and
natural qualities in their brands.
The ALDI Test Kitchen
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6. PROOF
POINTS
ALDI holds itself to a high standard and strives to
meet, or exceed, customer expectations. The brand
utilizes four distinct measures of performance -
proof points - that allow for consumer demands to
be met.
7. Selection:
ALDI tries to relieve consumers from the anxiety that comes with the paradox of
choice: having to choose between too many options and preferring to have fewer ones.
Quality:
ALDIās brands are curated to offer only the best items on the market. The
national brands they carry, as well as their private-label brands, are approved in the ALDI Test
Kitchen to make sure they meet ALDIās high standards.
Value:
ALDIās business model is configured in a way that allows for affordable prices. Many
of its products are private-label, which have a higher profit margin. Consumers unlock and
return shopping carts themselves, and most of them supply their own bags. There are also only a
few cashiers working at a time. By doing these things, ALDI saves business costs and
maintains its lower prices.
Easy to shop:
ALDIās layout is the same in every store, so shoppers know where to find
the products they need no matter where they are in the world.
PROOF POINTS
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8. Not a One-Stop-Shop:
Consumers want to be able to get everything they need in one place. ALDI is not that place. When people shop
at ALDI, they usually find themselves going elsewhere for specific products they need. This causes feelings of
frustration.
Poor Selection:
ALDI is perceived to have poor and unreliable selection. They also often rotate certain products and
brands in and out, which creates a sense of uncertainty among ALDI shoppers.
The Quarter and Reusable Bags:
Prospective customers and first-time ALDI shoppers often feel embarrassed and
inconvenienced when they go to ALDI not knowing that they need to bring their owns bags and a quarter
to use a cart.
Low Brand Awareness:
Many consumers arenāt aware enough of ALDI as a brand, what it offers and even its
existence as a grocery shopping option. When they are aware of ALDI, itās primarily due to word of mouth.
Price:
Consumers view ALDIās products as ācheapā rather than āaffordableā, and there
is a predisposition to associate price with the level of quality.
PAIN POINTS
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9. CURRENT
TARGET
ALDI currently serves shoppers in over 10,000
stores across 18 countries. Its current consumer base
consists primarily of college students and those aged 55+ who
are looking for an expedited, no-frills shopping experience at
an affordable price. The majority of its shoppers are located in
suburban and rural neighborhoods with an average income of
$40-60,000, so store location and price are key for its consumers.
Those who shop at ALDI regularly hold its stores in very high
regard, especially college students. This is often due to childhood
experiences and parental influences.
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10. THE ASK
ALDIās reputation currently centers around its low prices. Consumers think that
because its products are affordable, they need to sacrifice quality and selection.
Our job is to show young millennials how ALDI allows price, selection and quality
to work in tandem, eliminating the need for low-price messaging.
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11. Our team harnessed data from Team Oneās situation analysis, reliable
internet sources, databases and ALDIās social media to fully define the
brandās current foundation.
SECONDARY
RESEARCH
12. The rise of technology has played a role in the in-store shopping experience of
young millennials. They are almost twice as likely to interact with their grocer on
social media than the average for all age groups.
Mobile apps are the leading touchpoint for engagement between grocers and
young millennials. This has led to the significant growth of grocery mobile apps.
Last year, 29.6 percent of grocers had mobile apps, and this year that number is
54.2 percent. ALDIās grocery app includes weekly ads, featured low prices and new
products, store locator and ALDI Finds updates. ALDI also pairs with third-party
app Instacart, allowing consumers to have groceries delivered to their doorstep.
This year, 18 million U.S. adults used a grocery app at least once a month; this
number is up 49.6 percent since last year.
Nearly 3 percent of food and beverage purchases will be made online this year, and
that number will grow to 3.1 percent by the year 2020. In fact, by as early as 2023,
70 percent of consumers will be doing their grocery shopping online.
This increase in online grocery shopping will be largely due to āDigital Pioneers.ā
This group of millennials makes up about 34 percent of the market, they earn more
than other consumers who are more price-driven and they plan on increasing their
online grocery shopping over the next few years.
GROCERY SHOPPING
AND TECHNOLOGY
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13. LIDL
Lidl, another German-based retailer, will presumably
be one of ALDIās closest competitors in a few years.
While ALDI has more than 10 times as many store
locations as Lidl in the U.S., Lidl is competing
strongly in almost every other category. Like ALDI,
Lidl is very popular with young millennial grocery
shoppers. In addition, most young millennial Lidl
shoppers frequent at least twice a month and 53
percent spend over $50 each visit.
When compared to other grocery stores, Lidl excelled
in value and freshness - an area in which ALDI often
falls below customer expectations. ALDI was also the
only store to score lower than Lidl on selection.
It is also important to note how ALDI competes with
Lidl in a shared market. When Lidl enters a market,
competing retailers lower their prices, on average,
by 9.3 percent in order to compete with Lidlās lower
prices. However, in cases where Lidl enters a market
shared with ALDI, ALDI lowers their prices by up to
19 percent.
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14. ALDI is currently in the process of remodeling over 1,300 stores. This remodel will
feature an expanded produce section with a new emphasis on organic produce
while still carrying the ALDI store brands that its consumers know and love. The
remodel will provide consumers with a more upscale shopping experience,
comparable to that of a more expensive grocer, such as Whole Foods, with the
hope of drawing in more middle-class Americans who prefer an upscale grocery
shopping experience. This remodel will likely eliminate some of the negative
stigma about shopping at a ādiscount storeā and will elevate the
emotional experience middle-class Americans have while shopping at ALDI.
ALDI STORE
REMODELS
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15. Price is becoming an increasingly important factor for consumers when
determining where to grocery shop. Followed closely by quality, price is five
times more important than convenience, variety and shopping experience.
This would explain why, in the midst of higher-end grocery stores focusing
more on an upscale shopping experience, discount grocers are still thriving.
In fact, 89 percent of U.S. consumers are considered āvalue shoppers,ā
or someone who frequents a discount grocery store. ALDI shoppers in
particular are more likely to have a strict budget when going grocery
shopping. There is no doubt that consumers are drawn to ALDI for their low
prices above everything else.
IMPORTANCE
OF PRICE
5xMORE IMPORTANT
89%
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16. Private-label brands account for less than 20 percent of consumersā food and
beverage dollars, however, their popularity is growing. 75 percent of shoppers
agree and 27 percent of shoppers strongly agree that the quality of private-
label brands has increased over the last few years.
These shoppers also agree that they would be interested in
most private-label brands if they were of equal quality and priced lower than
their competing national brands.
Millennials, however, would be interested in private-label brands for a
number of other reasons, such as the availability of local cuisine (27 percent),
different flavors or variety (37 percent), and a rewards or loyalty program for
the private-label brands (42 percent).
PRIVATE-LABEL
BRANDS
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17. SOCIAL
LISTENING
Analyzing consumer engagement with ALDIās social platforms allowed our team to have
a closer look at what ALDIās consumers are saying about the brand. Social channels are
highly impactful to articulating ALDIās digital foothold and helping to determine ALDIās
overall perception within the consumer mindset. We analyzed Instagram, Facebook,
Twitter and Pinterest for keyword mentions and consumer interaction. We also looked
specifically at how ALDI communicates its four proof points.
On ALDIās website, four social media platforms are mentioned: Facebook, Twitter,
Instagram and Pinterest. ALDIās Facebook and Instagram posts generate relatively
large amounts of viewership and interactions with frequent posts several times a week.
Though less brand-consumer interactions occur on Twitter, ALDI remains active on
this platform by posting a few times per week on average. ALDI updates its Pinterest
less frequently, but it has over 220,000 monthly viewers, meaning this platform drives
a lot of traffic. Therefore, we choose to analyze its Facebook, Instagram, Twitter and
Pinterest due to the level of brand presence and interactions with consumers.
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18. INSTAGRAM
595 POSTS
231k FOLLOWERS
139 FOLLOWING
who seem to be mostly women and mothers. ALDI encourages its
consumers to use the hashtag #ALDIHaul to share their unique
experiences at ALDI. ALDI also engages with many consumers in the
comment section of their photos.
women and mothers posting their meals, lifestyles and families.
The idea of ALDI having āhigh quality and low pricesā is explicitly
mentioned on its page, but its content does a poor job of conveying them
simultaneously, and ALDIās curated selection is rarely mentioned.
On consumersā side, they seem to love the low prices and like the taste of
ALDIās food, which they comment on and react to. However, many of them
are upset about the limited selection because most of ALDIās products
are only available for a limited time. There is some excitement about the
remodels but also some disappointment - some consumers speculate that
quality could decrease because more money is being allocated to store
construction.
comprised mainly of artful food pictures, along with some consumersā
experience, holiday and events posts.
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19. ALDIās Facebook contains posts about food, products, deals,
news, events, the ALDI Test Kitchen and shared content.
ALDI does very well engaging with consumersā comments and
utilizing Facebook Messenger.
Like Instagram, low-price messaging dominates a majority of
the posts. But Facebook has more posts mentioning the ALDI
Test Kitchen and Corporate Social Responsibility.
Consumers react mostly to the low-price messaging but pay
little to no attention to ALDIās social events and the ALDI
Test Kitchen. Selection and quality are factors that get many
consumer complaints. However, one thing that catches a lot of
attention on Facebook is delivery service. Many ALDI shoppers
would love to see ALDI develop a grocery delivery system.
FACEBOOK
2.3M LIKES
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20. Compared to other platforms, Twitter has less
food-related content but more related to social
events and ALDI news.
Low-price messaging appears the most among the four
proof points. Value, selection and quality were not even
mentioned in this yearās posts.
There is less engagement between ALDI and its
consumers on Twitter. People appear to care more
about their local ALDI stores rather than ALDI as a
national brand.
23.8k TWEETS
95.5k FOLLOWERS
74 FOLLOWING
mainly women, but has a more
diverse demographic than other platforms.
including news media, moms and other
ALDI stores.
TWITTER
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21. ALDIās Pinterest boards are recipe-driven. The recipes are
created by the ALDI Test Kitchen and food bloggers who use
ALDIās products as ingredients. ALDIās name is mentioned in
these blogs.
Moreover, the recipes ALDI features are mainly
healthy and inspirational. There is little to no engagement
between ALDI and its consumers. Pinterest is a large social
site, so ALDIās recipes on Pinterest have a potential to
attract prospective consumer and maintain current
customers with the growing popularity of their content
marketing strategy.
PINTEREST
229.1k
44k
MONTHLY VIEWERS
FOLLOWERS
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22. Overall, the primary target for ALDI on social media is
mothers and women. Most brand-consumer engagement
happens on Instagram and Facebook. ALDI updates
regularly and replies very quickly to comments, which
is helpful in maintaining a healthy brand-consumer
relationship. Pinterest is different from the other three due
to the nature of the platform, but its recipe-driven feature
can be a potential growth that ALDI can take advantage of.
As for the proof points, the low-price message is
communicated the most across all social media platforms,
and consumers do appreciate it. However, ALDIās quality
and selection are not communicated thoroughly. They do
not gain much attention, and in consumersā minds, they are
actually something ALDI lacks. For the easy-to-shop proof
point, which is barely mentioned on any platform, most
consumers do not show an appreciation or favor. Peopleās
attitudes toward the quarter chain and bags range between
negative to neutral on social media.
Also, people do not pay much attention to ALDIās social
responsibility or the ALDI Test Kitchen. They care more
about the products and services in their local stores, like
new offerings, grocery delivery, store renovation, etc.
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23. PRIMARY
RESEARCH
After analyzing ALDIās current foundation through secondary research,
our team set out to assess our findings and the proof points of
selection, value, quality and ease of shopping. Employing an arsenal of
projective techniques, our team conducted in-depth-interviews and
focus groups from a pool of screened participants to better understand
ALDIās position within the consumer mindset.
24. QUALITATIVE
GOALS
Our team developed research objectives in order to better understand the
motivations of our intended consumers. To evaluate ALDIās brand
standard within the consumer mindset and the proof points
aforementioned, our team identified which key components we wanted to
assess throughout our primary research.
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25. OBJECTIVES
Understand our target marketās lifestyle, background and the role of food in their lives
Discover 22 to 28-year-oldsā thoughts, feelings and frustrations about grocery shopping
Find out what motivates the target market 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
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26. METHODOLOGY
A combination of two focus group discussions and
six in-depth-interviews were conducted to reveal the
motivations and perceptions of our target consumers.
The focus groups encouraged collaborative discussion
and allowed participants to bounce ideas off of each
other. Each focus group had three participants and lasted
roughly 60 minutes. The in-depth-interviews were
conducted in person or over the phone. The individualized
setting allowed participants to introspect on their food
and grocery rituals. By using this mix of methods, we
were able to really explore the relationship between our
participants and ALDI.
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27. SCREENER
To consider participants for our
research, we devised a screener to hone
in on loyal, occasional and prospective
ALDI customers.Factors:
Age: 22-28
We wanted to talk to young millennials in this age
group, because it aligned with ALDIās goals. By
engaging this age group now, ALDI has the potential
to convert these millennials into loyal, lifelong ALDI
shoppers.
Primary grocery shopper for household
Talking to primary grocery shoppers would allow us
to hear from the consumers who really experience
the best and the worst aspects of grocery shopping.
This allowed us to filter out the respondents that
rely on others to do the majority of the household
grocery shopping.
Shops for groceries at least twice a
month
By talking to people who consistently shop for
groceries, we filtered out the respondents who
either eat out for most meals or have an alternative
method of stocking their fridge and pantry. We
wanted to hear from people who grocery shop often
and view it as a weekly or biweekly ritual.
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28. Willing to shop at ALDI
We are aware that not everyone is interested in
shopping at ALDI. We filtered out the ALDI Rejectors
because their insights would not be helpful. Instead,
we wanted to focus on recruiting participants who are
representative of our target profile.
Does not work in advertising or public
relations
We love our fellow strategic communicators, but
we could not let them participate in our study. The
integrity of our research could be compromised
because people who work in advertising or public
relations know what we are looking for in our research
endeavors.
Does not work for a grocery store
If a participant has past experience working at a
grocery store, they could potentially bring skewed
perceptions into our primary research. To avoid this,
our screener rejected any employees from the grocery
industry.
SCREENER CONTINUED
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29. Our discussion guide was crafted to reveal important insights and consumer
perceptions about ALDI. We divided the discussion questions into four overarching
categories: Lifestyle, Food, Grocery, Shopping and ALDI.
To deepen our understanding, our moderators used projective techniques to elicit
underlying tensions and motivations from our participants. Specifically, we used word
association and personification. Additionally, we had participants write out their typical
grocery shopping list and illustrate their ideal shopping experience.
DISCUSSION
GUIDE
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30. PROJECTIVE
TECHNIQUES
1. Grocery lists: We had our participants write down their grocery list
of essentials. We wanted to find the intersection between what ALDI
offers and what the consumers want.
2. Store map: We asked our participants to draw out their ideal
grocery store and explain the layout to us. This helped us assess
where ALDI stands in its easy-to-shop proof point.
3. Word association: We wanted to test our participantsā instinctual
perceptions of ALDI. We asked them to immediately say the word that
comes to their mind when asked about the brand. The result would
give us insight into their core impressions of ALDI.
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31. PARTICIPANTS
After being screened, participants were segmented into smaller, more
distinct groups. Based on their answers to our survey questions, each
person was sorted into one of the following categories: ALDI Loyalists,
Occasionals or Prospects. These additional subdivisions allowed our
team to probe for insights in a more effective manner.
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32. Loyalists
The Loyalists are avid
ALDI shoppers. These
thrifty shoppers are likely
to recommend ALDI to
friends and do not need
national labels. From the
surprising selection to
friendly staff, ALDI has
everything they are
looking for.
Prospects
The Prospects have
never been to ALDI, but
are willing to give it a try.
They have heard about
the great prices and the
wonderful selection of
wine and cheese.
However, they are
skeptical about, or
unaware of, the quarter
system and the no bag
policy.
Occasionals
The Occasionals are
variety seekers when it
comes to grocery
shopping. ALDI is a part
of their consideration set,
but they also shop at
Walmart, Hy-Vee, Target,
etc. The amazing value will
keep occasionals coming
back to ALDI.
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33. By compiling secondary research and collecting our own primary
reasearch about ALDI, our team was able to distill the information
into several important findings. These key takeaways, organized by
ALDIās proof points, are the derivative of all of our data and insights.
Our teamās recommendations for ALDI and Team Three are included.
KEY
TAKEAWAYS
34. ALDI provides its consumers with a curated selection that is
not only cost-effective, but also good quality. Our team
extracted the attitudes and perceptions about ALDIās
limited, private-label assortment to assess the proof point of
selection.
SELECTION
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35. The Paradox of Choice
Throughout our research, we found that
ALDIās proof point of āselectionā did not match up
with consumer perceptions. ALDI Loyalists and
Occasionals admitted that they often craved a
specific brand that ALDI did not carry. Prospects were
interested in shopping at ALDI, but had reservations
about not being able to find everything on their list.
However, psychology offers a possible solution to
ALDIās selection dilemma.
The paradox of choice is the theory that having
more options is not always better. Though many
people believe they want more choices, their lack
of confidence post-decision leaves them wondering
about all of the alternatives. Many times, they
experience cognitive dissonance and regret the
choices they make.
When people have fewer choices, consumption
decisions are easier to make and shoppers often
end up buying more. ALDI can leverage its curated
selection by advertising how the limited number of
choices can reduce stress and anxiety.
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36. Our participants are ultimately looking for a one-stop-shop. They donāt want to go
through the hassle of shopping at another store for only a few items. They believe that ALDI
is not a one-stop-shop. This is due to the fact that there is a limited selection and some
products are rotated in and out. It also stems from the stigma that a smaller selection can
translate into not having products consumers need. This makes ALDI an unreliable store
that could lead to an unnecessary extra grocery run. The participants would then have
a negative outlook, because shopping at ALDI was a waste of time. Whether consumers
understand why ALDI has a limited selection or not, not being a one-stop-shop results in a
loss of consumers.
INSIGHT
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37. I donāt 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.
ā
ā- Focus Group Participant
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38. The participants are looking to optimize their time and not waste it
on making second, unnecessary grocery runs. Since ALDI is believed
to not be a one-stop-shop, they should advertise their philosophy on
why the selection is limited. With this, they can share that they do
have what consumers are looking for, and a smaller selection gives a
greater ease to ļ¬nd it.
RECOMMENDATION
36
39. QUALITY
ALDI tests the quality of its products against benchmark
standards set forth by its employees and the ALDI Test
Kitchen. Our team condensed all relevant research about the
quality of ALDIās products to arrive at a recommendation for
ALDI and Team Threeās consumer journey.
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40. Our participants connect their viewpoints on value with quality, where a cheaper
price leads to cheaper quality. However, this is specifically true with two main
product categories: produce and meat. The participants believe that ALDI produce and
meat are not meeting their expectations. This is a result from testing the product,
examining it before purchase and word of mouth. For other products, such as canned and
packaged goods, there is little to no difference compared to other stores. In short, our
participants are assessing the quality level of produce and meat and generalizing it to the
rest of the storeās products. Because produce and meat have the biggest differences from
store to store, they are an important differentiating factor between grocers. If a store is
lacking quality produce and meat, they will lose consumers who use those categories as
benchmarks of quality.
INSIGHT
38
41. ā
ā
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
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42. RECOMMENDATION
Our participants are looking for quality in two main product
categories: produce and meat. They believe, for various reasons,
that ALDI does not meet their quality standards. However, they
were not aware of the quality testing that ALDI performs on their
products. ALDI should advertise more about the measures they go
to in ensuring that their produce and meat are at a high quality and
exceptional value.
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43. For ALDI consumers, value - the perceived quality of the
product relative to its price - is of high importance. Our
secondary research highlighted the reasons why value is a
critical standard for ALDI. Our primary research revealed
new insights for this proof point, and the culmination of our
research led to our recommendation for value.
VALUE
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44. INSIGHT
The participants have strong feelings about the value of ALDI products. They believe that
value is ALDIās unique selling proposition. Price plays a factor in their decision making, but
not enough for a store to depend on. 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. Due to this, the lower value that ALDI advertises can be perceived negatively.
However, ALDI Loyalists describe the value of ALDI as āaffordableā and not ācheap.ā
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45. ā
ā
I am always on the hunt for ways to save
money while still being satisfied. I know there
are probably higher quality options at high-
end grocery stores, but I am happy taking the
affordable route and saving some money.
- IDI Participant
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46. RECOMMENDATION
Our participants realize that ALDIās value is one of the best. When
they go to ALDI, they know that they are getting the best price.
However, they do not believe they are getting the best quality.
Although price is getting consumers in the door, it is also driving
consumers away with the negative perception of low quality.
ALDI should combine their low-price messaging with concrete
evidence of their quality products. Enlightening consumers on the
subject, and giving them a āreason to believe,ā can be done through
communication in advertising and social media.
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47. EASY-TO-SHOP
When considering our target age group, young millennials, the
ease of shopping is a crucial proof point. Our secondary research
uncovered technological advancements are poised to revolutionize
the grocery shopping experience, so maintaining an easy-to-
shop experience is critical for ALDIās near future. Combined with
primary research, our team has formulated a recommendation that
will be useful for ALDI and Team Threeās consumer journey.
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48. Our participants are looking for an eļ¬cient grocery store. This includes an easy
pathway through the aisles, quick cashiers, helpful employees and other features that
expedite the process. They do believe ALDI is an eļ¬cient store but could optimize it even
further. Some people might feel the need to bring bags and a quarter for a cart is
inconvenient and oļ¬-putting. However, our primary research shows it is not a big enough of
a problem to not shop there. In fact, our participants believe that ALDI is a ādo-it-yourselfā
type of store, which is a positive setting in their mind.
INSIGHT
46
49. āI donāt need all the frills of a luxury grocery
store, but I do appreciate efficiency. Itās more
important to me to get in and out quickly
with what I need than to be bombarded with
unnecessary items.
- Focus Group Particpant
47
50. RECOMMENDATION
Our participants see ALDI as an efficient, easy-to-shop store.
The unique qualities that ALDI possesses are not turn-offs and
they donāt drive people away. However, they do believe that prior
knowledge would be extremely beneficial to first-time shoppers.
This prior knowledge would give new consumers a more pleasant
experience, as they wouldnāt be questioning themselves or
hesitating while getting a cart, and they wouldnāt be frustrated
while buying bags from the store. Having the best first experience
in the store could help secure new consumers and turn them into
Loyalists.
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51. CONSUMER
PROFILE
Our team spent hours researching ALDIās young millennial
consumer base. We collected data on their lifestyles, attitudes and
behaviors when it comes to grocery shopping and ALDI as a whole.
Using all available information, our team has derived the consumer
profile for ALDIās young millennials.
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53. The DIY Shopper
The āDIY Shopperā lives a busy life centered around work, school and other activities
and hobbies that take up time in their day. Within this busy life, they do not have time
to waste when it comes to regular routines. This is especially true, because they are
still new to supporting themselves. They believe that being successful in this state
of independence is a good accomplishment in life. An independent life includes many
factors. One of these is cooking at home rather than eating out. The āDIY Shopperā
does this for price and health reasons. When shopping for home cooked meals, they
are also looking for the best balance between quality and price. If they can find the best
price and quality at a discount store they are not affected by the potential negative
stigma that comes with shopping there.
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54. Iām still learning the ropes when it comes to supporting myself.
Grocery shopping is one aspect of my life that I feel I have a good
grasp on. This is because I have had the experience and I know what
is important and worth buying, especially for the meals that I make
at home. I donāt need all the bells and whistles when I am shopping, I
just need good value and quality in what I buy. Shopping at a discount
store is perfect for me because I can save money while still getting
the quality I want. It doesnāt matter where I purchase my groceries,
as long as I get what I am looking for. Overall, itās one aspect of my
independence that I can hang my hat on.
ā
ā- DIY Shopper
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56. Barrier #1:
Lack of Awareness of ALDI
Remodels Causes Confusion
ALDI has made a commitment to revive the interior
of its U.S. stores, but its job is far from over. Many
ALDI locations have yet to be remodeled and have
the stereotype of being rundown, cheap and dirty.
The updated ALDI locations are nice, but the old
stereotype persists. Millennials are looking for a
clean, organized grocery store that meets their
expectations, and ALDI meets this criteria, but
needs to make it known.
54
57. Barrier #2:
Quarter Controversy and
Bag Dilemma
Loyalists to the ALDI brand may be happy to bring
their own bags and have a quarter on them to grab
a cart, but prospects are likely to be confused
the first time they visit an ALDI location. If these
consumers feel embarrassed during their first
experience, they may associate these negative
feelings with the brand on a long-term basis.
55
58. Barrier #3:
ALDI as āCheapā
Instead of āQualityā
Consumers love the low prices that ALDI offers but
tend to associate these low prices with lower quality,
especially when it comes to āhigh-riskā items like
produce and meat. Although pantry brands matter less,
millennials want to know exactly what ingredients go
into their food and will pay more for quality items.
56
59. ALDI should consider the long-term benefits
of using their app to provide grocery delivery,
instead of outsourcing it to a third party
app (Instacart). Young consumersā growing
interest in convenience is likely to garner
interest in a user-friendly application that
offers easy grocery delivery.
Opportunity #1:
Permeate the Online
Grocery Shopping Market
57
60. Opportunity #2:
Advertise the
ALDI Test Kitchen
The ALDI Test Kitchen determines which
products are put on its shelf. It is a great
opportunity to let existing consumers know
about ALDIās commitment to quality, and to
encourage new consumers to check out its
curated selection. If our target market knew
they were getting the ābest of the bestā,
they might be more willing to do all of their
grocery shopping at ALDI.
58
61. Opportunity #3:
Leverage ALDIās
Social Media Presence
With millions of followers across Twitter,
Instagram, Pinterest and Facebook, ALDI has
the opportunity to shape its public perception
to both current consumers and prospects. For
example, ALDIās messaging towards young
millennials should emphasize its proof points.
59
63. SCREENER
What age range do you fit into?
ā¢ 21 or younger
ā¢ 22-28
ā¢ 28 or older
What gender do you currently identify with?
ā¢ Male
ā¢ Female
ā¢ Other
Which best describes your race or ethnic background?
ā¢ White/Caucasian
ā¢ Black/African American
ā¢ Hispanic/Latino
ā¢ American Indian/Alaskan Native
ā¢ Asian/Pacific Islander
ā¢ Multiethnic/Multiracial
ā¢ Prefer not to answer
Do you shop for groceries for yourself or household?
ā¢ Yes
ā¢ No
61
64. SCREENER
On average, how often do you shop for groceries?
ā¢ Weekly
ā¢ A couple times per month (every two weeks)
ā¢ Once a month or less
Which of the following grocery stores are you willing to shop in the future? (check
all that apply)
ā¢ Albertsonās
ā¢ ALDI
ā¢ Hy-Vee
ā¢ Kroger
ā¢ SuperTarget
ā¢ Trader Joeās
ā¢ Walmart
Which best describes how often you shop at ALDI?
ā¢ ALDI is my primary grocery store
ā¢ ALDI is not my primary grocery store, but I shop at least once a year
ā¢ I have not shopped at Aldi in the past year (or ever)
Do you work in, or are you pursuing a career in advertising or public relations?
ā¢ Yes
ā¢ No
Do you work at a grocery store?
ā¢ Yes
ā¢ No 62
65. DISCUSSION
GUIDE
Values
What do they do for a living?
Describe a typical Monday
Priorities in their life
Listen for: family, friends, work, balance, marital status
Lifestyle: active/sedentary
Sources of entertainment and inspiration
Listen for: how they engage in pop culture, how often do they travel?
Role of food/eating
How does food or eating play a role in your daily life? Who do you cook for?
Listen for: eating out, socializing, trying new foods/restaurants, travel
Listen for: eating on the run, to-go, convenience
Listen for: cooking at home, health, meal prep, grocery shopping
Probe for: when eat out vs. at home
Probe for: motivations for eating out vs. at home
Probe for: frustrations with eating/cooking at home (and benefits)
Frozen meals? Meal prepping? Eating leftovers?
63
66. DISCUSSION
GUIDE
Grocery shopping occasions
Probe for: how often, when, with whom, where, how decide where?
When and where do you get ingredients for cooking?
Do you buy groceries in bulk or make multiple runs for smaller batches?
Probe for: triggers
Top 10 grocery items, describe your grocery list.
Grocery shopping attitudes
Thoughts and feelings related to grocery shopping
Probe for: how did they learn about grocery shopping? Early memories, how this might be
connected to their decisions today?
Probe for: aspirations, frustrations (items on the left side of the Venn diagram) What are
some of your frustrations with the grocery shopping process?
64
67. DISCUSSION
GUIDE
Grocery category landscape
Specific options for grocery shopping
Probe for: how they define the category, types of stores
Listen for: their language for defining options, specific brands
Describeyourthoughtprocesswhenchoosingbetweendifferentfoodbrands?(nationalv
private label) Why?
How they decide when and where to shop
Probe for: motivations for shopping different stores
Probe for: are they primarily loyal or do they switch? What drives this?
Design your ideal grocery store in a birds-eye view/blueprint format
ALDI perceptions
What comes to mind when I say ALDI grocery stores? (consider projective exercise
here)
Word Association (for ALDI and their other choices)
What words come to mind when you hear ALDI?
What season do you associate with ALDI?
What color do you associate with ALDI?
65
68. DISCUSSION
GUIDE
What holiday
What animal
WHY
Probe for: how learned about ALDI, what contributes to these perceptions
Listen for: perceptions regarding quality, price, convenience, name brands
Draw ALDI as a person (or describe their qualities)
What do you associate with āqualityā in a grocery store experience?
Loyals and occasionals will be somewhat familiar with ALDI, but do not assume they are
informed. For ALL segments, you will need to explain the ALDI brand and distinct shopping
experience as well as each of the proof points.
ALDIās Branding
Make sure you have stimuli for this (pull website copy, photos, etc.). Explore their
reactions, listening for points of confusion, positives and negatives. Address each one
separately to understand if, and how things resonate. Pay careful attention to the language
they use.
Probe for: how can the brand story be expressed in a new or different way? Strive to uncover
the unique intersection between the truth of the consumerās life and the truth of the brand.
66
69. SOURCES Aldi: Creating value through the marketing mix. (n.d.). Retrieved from
http://businesscasestudies.co.uk/aldi/creating-value-through-the-marketing-
mix/introduction.html
Bloom, B. (2017, July). The Millennial Impact: Food Shopping Decisions. Retrieved from Mintel.
Bobnak, P. (2017, July 12). Aldiās Email Marketing Targets the Price-Sensitive Grocery
Shopper. Target Marketing. Retrieved from https://www.targetmarketingmag.com/article/aldis-
email-marketing-targets-price-sensitive-grocery-shopper/
Braddock, J. (2017, May 05). ALDI Test Kitchen. Retrieved from https://jennabraddock.com/aldi-
test-kitchen/
Cavato, G. (2017, November). Cooking Enthusiasts. Retrieved from Mintel.
DeSalva, A. (2017, November). The Budget Shopper. Retrieved from Mintel.
Editors, E. (2018, September 4). Grocery App Usage to Grow Nearly 50% in 2018. Retrieved from
EMarketer.
Gallinari, M. (2018, October 4). Aldi goes upscale to capture more Middle Americans. Retrieved
from Mintel.
Garicia, K. (2018, July 2). Grocery Apps Grow in Importance. Retrieved from EMarketer.
Garicia, K. (2018, July 13). How Do Lidl's Grocery Ambitions Stack Up?Retrieved from EMarketer.
Garicia, K. (2018, October 15). US Shoppers Are Still Driven By Saving a Buck. Retrieved from
EMarketer.
Hiebert, P. (2018, March 6). Consumer perception of Aldi catches up to Kroger. Retrieved from
67
70. SOURCES
.
Lempert, P. (2018, August 9). Inside Aldi's $5 Billion Plan To Become The Third-Largest Grocer In
The U.S. Forbes Https://www.forbes.com/sites/phillempert/2018/08/09/aldi-is-focused-on-
keeping-it-simple-and-high-quality/#3110436c427b.
Owen, J. (2018, January). Private Label Food And Drink Trends. Retrieved from Mintel.
Smith, D. (2017, November). Grocery Retailing. Retrieved from Mintel.
Smith, D. (2018, July). Grocery Retailing. Retrieved from Mintel.
Trotter, G. (2018, August 9). Aldi unveils new products in aggressive push toward fresh and
organic. Chicago Tribune. Retrieved from https://www.chicagotribune.com/business/ct-biz-aldi-
fresh-products-20180807-story.html
Weber, J. (2017, October 31). Grocers of the future: Room enough for both Amazon and Aldi.
Retrieved from YouGov.
Grocers of the future: Room
enough
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