Marketing Strategies Of Aldi And Waitrose

WAITROSE Ltd was found in 1904 by Wallace Wyndham Waite, Arthur Rose and David Taylor when they opened their shop in Acton (Andidas, 2003). In 1937, it was acquired by the John Lewis Partnership and its Self Service was introduced in 1951. From a small business selling grocery products, it has been built up to a network of over 300 shops known for its own historical and the quality of products. The majority of their customers are those who have stable incomes and above due to their uncompetitive price. Their key aims and objectives are to archive improvement in services and gain more profits by open new store and expand their business into the North-West. In addition, Waitrose also wants to archive more targets in the next period of time such as to motivate their staff to provide better services, which can increase levels of customer service, and develop their organic range as well as their relationships with local community In this project. In this essay, the dominant stakeholders and their main interest will be identified as well as the discussion of Waitrose 's detailed analysis.

Waitrose is part of the John Lewis broadband brand. Many people!e are familiar with John Lewis for its other offerings but they are not so familiar with the Waitrose broadband. The names are often used interchangeably. John Lewis is a department store with a couple of products that were created to turn it into a one-stop shop. Most people who find themselves with a Waitrose broadband offering have come across it on their way to doing something, they trust whatever the part company offers.

1. Introduction The intended purpose of this report is to outline the nature of the Australian retail market, specifically the retail food sector. This report will then discuss the role of market segmentation and how it has resulted in the emergence of new retail channels available to consumers. The emergence of ALDI as a new retail channel will be the focal point of the report along with a brief overview of other new-coming organizations such as Costco. Through the use of current journal articles, books, internet sites and government publications, this report will outline the benefits of the new retail channels available to consumers, especially in regards to saving on common expenses. This report will also discuss the possible room for

adopted by various companies to influence the masses towards their products at large is part of their marketing strategy . Offering discounts and

In times of recession people tend to be very conservative when spending and the people see that ALDI offers value add to their spending by saving them money in their groceries.

The UK supermarket industry is a very competitive and profitable industry. It is made up of four main players with significant share of the market, and then various smaller companies who focus on smaller niches in the market such as the bottom of the market discounters and the top of the line speciality stores. It is an interesting market and this report evaluates the attractiveness of the industry using Porter’s five forces model with an insight into how market nicher Waitrose sustains a competitive advantage. Next this report looks at how major player Sainsbury’s successfully competes against its rivals using differentiation strategies, and analyses current consumer trends and problems can effect this industry.

As Aldi has already established itself as a large discount supermarket chain with over 10,000 stores in 18 different countries including Australia (2001), and holds a large market share in the grocery world due to its business culture and market leading initiatives. This report aims to provide the ALDI board of directors with:

The Australian Supermarket Industry is the very hot topic that’s why very interesting topic now days. The Australian supermarket and grocery stores have a very severe competition in Australia mainly because of organizations competing in this mature industry are going towards cost reduction initiatives with competing advantage rather than product differentiation strategies, In other words business in this industry increase market share by charging lower prices while making reasonably fair profit. The growing popularity of ALDI – German based company of introducing its own label goods (products manufactured and sold under the retailers own brand) with low cost has forced the two giants –Woolworths and Coles to cut price

It was a key decision to feature partners in the campaign, which uses them as a point of difference, distinguishing us from our rivals (www.guardian.co.uk ). The targeted customers of their products are richer class. The most important reason that they have loyal customers is because of the quality they provide. The customers of Waitrose believe in the company, such that even if they get the same goods cheaper in other stores (Tesco, Azda) they will still stick to Waitrose. In the product line the fruits and vegetables they put on the market are priced at a premium. “For anyone who enjoys food and can afford to pay a bit extra, it is easy to understand why the chain has built a following”. (www.guardian.co.uk )

ALDI, a major German based retailer which operates 9,000 stores worldwide, has to account for such efficient strategies so that it has a competitive edge over other player. ALDI is Australia’s only supermarket operator that provides a range of exclusive brand, essential groceries at the lowest possible prices (ibis).

From the time it opened, Aldi has expanded the number of product assortments that allow consumers to find nearly anything they need to supply and feed their families. Aldi developed a strong marketing program and decentralized their pricing and assortments that also include some well-known products. Aldi’s begins its value propositions to shoppers with its amazingly low prices. Their “hard” discount pricing, averages about 30% below standard supermarkets like Winn-Dixie or Kroger’s (Brick, 2016). They attribute their success and growth to the “hard discount” model as it has demonstrated to be highly effective. Aldi is different than “large” discounters like Walmart where Walmart’s varieties are limited in size and led by private label products, and investments are made in stores atmosphere, unfortunately, resulting in lackluster customer service. This allows “hard” discounters like Aldi to win the grocery price war by greater margins than Walmart, making Aldi a major competitor of Walmart (Bartone,

This dissertation is submitted in partial fulfillment of the requirements for the Degree in Marketing Practice

The reputation and recognition make Aldi attractive in the marketing activities and this aspect needs to be improved in the future to compete with both existing and forthcoming rivals. Meanwhile, the high buying power and costs control would help Aldi to diversify its products and increase market penetration to serve diverse Australian population. This leads to the reconsideration of Aldi’s current strategy of limiting product range to adopt other strategies as a number of differentiation strategies has been used by other

Target has done well in all the areas of integrated marketing communication strategy mix. Target created designer line collections which take control over the entire integrated marketing communication strategy mix. For instance, Target uses a variety of tactics to communicate its “cheap chic” positioning, beginning with its slogan, “Expect More, Pay Less.” In its stores, Target uses strategically placed low shelves, halogen and track lighting, cleaner fixtures, and wider aisles to avoid visual clutter. (Kotler, 2011) Targets also painted in the air near busy airports the companies signature red bull’s eye on the roof of their stores. Targets utilize strong sales promotions through technology such as the internet, Target.com social media sites

Aldi’s will be expanding with 400 stores in the United States to keep up on pressure price. It is a privately held German retailer, known for cheap prices on private brand food products, being sold in rudimentary stores, has recently included inexpensive fashion to its availability. This will be a competitive factor for low priced retailers.