Aldi Executive Summary

Marketing Strategy:

ALDI’s strategy focuses on providing high quality products at low prices. Key elements of the low price element of the strategy are:

(1)exclusive brand products,(2) limited range,(3)focus and (4) price change policy

Exclusive brand products Central to ALDI’s strategy is its focus on exclusive brand products. ALDI forms partnerships with leading manufacturers to produce own brand goods.

Only a few name brand products, such as Vegemite, reoffered and even these are targeted for replacement when a low cost, high quality alternative can be sourced. Limited range Central to ALDI’s capacity to reduce costs is the provision of only a limited range of products .In regard to what to stock in terms of product characteristics,

They point out the change to customers through placing a note on cartons in the stores.Key elements of the quality element of the strategy are:

(1) the value proposition and

(2) a long-term approach

The value proposition

A critical element of theALDI “value proposition” is that it will not be low cost “ at anycost” in that a certain level of qualitymust bemaintained, even if at the expense of a higher retail price.We do not sell low quality. Sometimes, this may mean higher prices, but with superior quality. For example, we sold mince with a 5% fat content where our competitors were selling it with 20% fat content. We did not want low quality. We just don’t do it’A long-term approach.As a privatelyowned organization

ALDI has an enhanced capacity to make businessdecisions that may impact negatively on short-term returns but which make long-term sense.For example,

Stores are built to last 20 to 25 years with minimal maintenance. They are more

Costly to build but cost savings occur over the life of the building. ALDI also develops long term partnerships with suppliers.( Dunford et