Aldi makes use of a marketing mix, where the company focuses on the product (such as quality), its price (Aldi offers lower prices than its competitors without compromising on quality. Aldi is expanding globally and includes many location advantages and offers promotions such as below-the-line promotions, ‘Like Brands’ and Swap & Save’ campaigns. Aldi offers competitive pricing by means of cost cutting in stores, and store brands. Low pricing is a competitive advantage. Failure to expand across UK as planned. Aldi had to lessen number of stores opened by around 100. This could be because of a failure to understand company strengths in relation to market expectations.
Failure to acquire a better market share, despite its popularity Tesco and other major retailers still own a better market share. Aldi is seen to present low priced brands and store brands, however, consumers of the UK society might connect social status with their shopping. Sections of population might prefer a higher priced elite brand or a national brand over an Aldi brand.
A detailed business case analysis has been carried out for Aldi’s. Based on the problem solutions are described. In the first alternative solution, Aldi would have to completely drop its philosophy in adopting national level product brands and elite brands. This would mean Aldi might lose its existing customer base and would be attempting to risk acquiring a customer base who could very well show loyalty to their original brands.
Instead of the first alternative, Aldi should instead go ahead with minimal changes to strategy such as the enhancement Lidl employs and expand. This way Aldi would retain its original customer base and at the same time aim to acquire newer customer bases.