Friday, May 31, 2024

ALDI reveals new business strategy

ALDI Australia has launched its biggest brand campaign in 16 years of operations, promoting the discount retailer’s differences and challenging the conventions of supermarket retailing in this market.

ALDI says the company’s new positioning, ‘Good Different’, underpins all aspects of its business – from product sourcing, to supplier relationships and the customer experience – and encapsulates its business model. The initiative, it says, is about ensuring ALDI continues to distinguish itself from competitors as it expands in Australia.

According to the company, the ‘Good Different’ repositioning comes as ALDI approaches 10 per cent national market share of the supermarket business. It is investing hundreds of millions of dollars into new stores and store refurbishments, an aggressive price-reduction strategy, and expanding its range to bring even greater choice and convenience to its customers.

“After 16 years of establishing ourselves as a trusted place for the weekly shop, it’s now time for us to build on this success and tell Australians what makes us different, and why we will continue to be different,” ALDI Australia CEO Tom Daunt said.
ALDI says its fundamental point of difference is its market leadership on price. In 2016, ALDI reduced prices on almost half of its everyday-grocery range. In the first months of 2017 alone, this has resulted in an investment of more than $75 million (annualised retail value) into lowering the prices of its everyday-grocery range for consumers.

“While other supermarkets might offer temporary markdowns and promotional pricing, ALDI’s unique promise of permanently low prices saves shoppers both time and money,” Mr Daunt said. “We encourage shoppers to review their grocery list and head to their local ALDI, where they’ll be pleasantly surprised by just how much they can save, any day of the week.”

This year ALDI will refurbish 50 stores on the eastern seaboard, introducing a fresh new look that includes better product displays, improved navigation and an updated store-interior design.

ALDI says that in the past 12 months it has increased its range by about 100 new products and is continuing to expand in its meat, fruit and vegetable, chiller and ‘healthy’ categories.

Since ALDI’s expansion into South and Western Australia in 2016, it has captured 4.2 per cent market share in SA and 3.1 per cent in WA (Nielsen Homescan 13 weeks to 25/3/17).

The ‘Good Different’ campaign launched nationally this week and will appear in store advertising, online and in more than 30 new TVCs due to launch this year.

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