Creating value through the marketing mix
An Aldi case study

Page 1: Introduction

Aldi 18 Image 4In increasingly competitive markets, consumers have a greater choice over where they buy their goods and services. For an organisation to meet its business objectives, it has to find out what consumers require and then identify the best way in which it can satisfy these needs and wants. Creating a competitive advantage can be difficult. A unique marketing strategy with clear objectives is vital to ensure effective promotional activity.

Since opening its first store in 1913, Aldi has established itself as one of the most reputable retailers in the global business market by providing great value and quality. Aldi’s goal is simple:

‘To provide our customers with the products they buy regularly and ensure that those products are of the highest possible quality at guaranteed low prices.'

Aldi’s products are sourced from hand-picked suppliers whose products are sold under Aldi’s own brand labels.

Marketing objectives

Aldi’s main marketing objective is to grow its market share within the UK grocery market. With the economic crisis came an increased demand for value for money. Market research identified that 80% of Aldi’s customer base also shopped at other supermarkets. These customers spent around £20 billion per year in the other stores. Aldi’s marketing strategies therefore focus on generating customer loyalty. Aldi focuses its marketing efforts on encouraging customers that are already familiar with the brand to shop at Aldi more often.

Aldi 18 Image 9Another key focus of Aldi’s marketing strategy is on demonstrating that Aldi brands are of equal quality to well known brands such as Heinz and Fairy Liquid. To do this Aldi ran blind taste tests amongst a cross section of shoppers. These confirmed that the majority of consumers that liked the famous brands also liked Aldi’s brands. These findings formed the basis to Aldi’s ‘Like Brands’ marketing campaign. This provided Aldi with a platform to communicate its quality and value messages effectively.

Aldi’s immediate challenge for the ‘Like Brands’ campaign was to increase market share from 2.3% to 2.5%. Although this sounds very little, the retail grocery market is very large. A single 0.1% is worth an extra £65 million revenue.

This case study focuses on the marketing strategies used by Aldi to increase its market share and encourage loyal customers.

Aldi | Creating value through the marketing mix

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