Aldi Case StudyEssay Preview: Aldi Case StudyReport this essayThe changing grocery shopping era has arrived, and opportunities for grocery companies abound. However, with those opportunities, come risks that threaten to lead long-standing marketing strategy and tactics obsolete due to the rapid changing target market. This era is being shaped by a new series of consumers with different shopping behaviour. Inventible failure would happen in highly intensive Australia market if companies were not familiar with their new customers (IBISWorld Industry Report G4111, 2016). In the flowing tables, demographics and needs of both traditional segments and modern segments are illustrated. As can be seen in the tables, even though there are several differences between diverse segments, elements such as convenience, time/effort conscious and price/quality relationship are their common pursuit.
Discovery: A Critical Reading
Aldi Case Study
This edition of AldiCaseStudy provides an important perspective on this and other research areas that have been discussed on the internet for almost a year now. Its purpose and focus are as follows:
1. Overview of the challenges in this era of new retail practices.
2. A guide to how these new practices affect everyday consumers in Australia.
3. A guide to how the current consumer behaviour trends to consumers may affect Australian retail practices.
4. How consumer habits change over the coming two decades; why they are different; and how they contribute to long-term trends.
5. The latest trends in Australian retail behaviour and trends of the past few years with a focus on consumers’ expectations to return.
Introduction: Aldi Case Study
“The key issue facing Australia is that Australians are having very different and, to a somewhat lesser extent, socially-motivated attitudes about the world around them” (G1). While it’s easy to see a significant shift in consumer behaviour at this moment in time, more extensive research is required – it has to be. From “Cultural change” to “food habits”. The study is not for those wishing to focus only on what’s happening to consumer spending or behaviour, rather it will also show that there are challenges in a number of areas, and that Australian consumers should be aware of them.The main challenges posed by the digital disruption of shopping, to a lesser extent, are:• Consumers are increasingly willing to go for small and “customer-centric” shopping• Consumers are more likely to pay more for convenience and comfort items• Consumers are more likely to pay more for quality foods• Consumers are more likely to pay more for personal care items• Consumers are more likely to pay more for home appliances• Consumers are more likely to pay more for personal care products• Consumers are more likely to pay less for services on their mobile devices• Consumers are less likely to be aware of their surroundings• Consumers are more likely to want more information from customers of similar brands and preferences• Consumers are more likely to want more information from their healthcare providers and care workers• Consumers are more likely to want less information from the Australian Federal Police• Consumers are more likely to want more information from police (even though the police should not be held responsible for breaches of international treaty obligations and national security of domestic citizens)• Consumers are more likely to think about their own personal and professional priorities and what information they need or can provide.While research into what is causing all of these changes has been carried out, it may be necessary to delve into the underlying changes made by consumers in these areas.
Source: Source: Madeleine Ross, 2012, The changing face of the grocery buyer; McKinsey&Company, 2014, Perspectives on retail and consumer goodsSource: Madeleine Ross, 2012, The changing face of the grocery buyer; McKinsey&Company, 2014, Perspectives on retail and consumer goodsStrength and weakness analysis
Aldi, a world famous discounter, entered the Australian market in 2001. With revenue CAGR at 17.9% during 2011-2015, Aldi now is the third largest supermarket in Australia market with 9.1% market share (IBISWorld Industry Report G4111, 2016). Such a boost of market share is due to several strengths perceived by consumers. First and foremost, diverse categories of organic food meet the needs of the growing number of health conscious customers (Soccer mums, golden oldies & DINKS) (Ross, 2012). In addition, one of the most important factors to strengthen purchasing intention is cost performance due to wide range of private label goods and operating efficiency (Audi Group in Retailing, 2016). Further, satisfied by shopping experience, the power of word-of-mouth dramatically increase Aldi’s reputation and trustworthy. However, there is no denying that Aldi also has weakness compared with Coles and Woolworth. Firstly, the limited product range restricts consumers choice. In detail, a typical Aldi store stocks about 1,000 products, compared with about 30,000 in an average Woolworth or Coles store (IBISWorld Industry Report G4111, 2016). Moreover, in-store shopping is the only channel. The official website only offers product information and customers’ review, which drives consumer who want to shop online away. Furthermore, mobile App is shoddy and users rate it 2 star out of 5. Pointless shopping list and user unfriendly interface are not the only annoying elements. What matters is no synergy between App and in-store shopping experience. The two scenarios below can further explain In detail, consumers want to see product reviews in mobile App during in-store decision making process, while they have idea in accessing the specific item in App due to the fact that no search function and category filter in the App. In another scenario, consumers browse App and decides to purchase a product, they do not know specific item location in store because App does not have navigation or guiding information.
Source: IBISWorld Industry Report G4111, 2016; Euromonitor, Aldi Group in Retailing, 2016; On-the-spot investigationRecommendationWith no doubt, China, UK and US have the most advanced e-commerce environments all over the world. Even back to 5 years ago, a large proportion of customers in these countries are frequently online grocery buyers. In comparison, although Internet penetration is strong in Australia, this country lags others mentioned above in making online purchases, one-third as much online as US consumers on a per-capita (Bain&Company, 2011). 2014