Write an Analysis Report of ALDI’s successful entry into Australia.

ALDI History

“The first foundation stone was laid in 1913 with the opening of a small food store in the German town of Essen. It didn't take long for this little 'service store' to become a popular place to shop.

During the '40s, an expansion program was created, and more ALDI stores were opened. In 1954, a celebration was held for the opening of the 50th store in Germany.

By 1960 ALDI had grown to a network of over 300 stores between the Ruhr Valley and Aachen. The prosperous family business was then divided into two independent companies: ALDI Süd - to service the South, and ALDI Nord - for the North.

'Self-service' was still a relatively new retail structure in the '60s and ALDI became the first company in Germany to adopt this new retail concept. While customers were still able to take advantage of the same high-quality products as before, they could now purchase them at much more competitive prices.

In 1983, ALDI Süd started chilled distribution depots and sold fresh products such as cheese, yoghurt and sausages. Frozen products came in 1998 and were closely followed by fresh meat. ALDI, to this day, continues to keep up with the ever-evolving taste of the modern consumer.

Today, our rapidly growing network has over 10,000 stores and serves millions of people across three continents.”

About ALDI

“With over 10,000 store locations around the world and 60 years’ experience to go with it, ALDI’s story is a tale of unrivalled success. Since opening its first store in 1913, it has established itself as one of the most reputable and awarded retailers in the international business market.

Today, the ALDI name is synonymous with high quality and exceptional value. We offer our customers a smarter way to shop. All our exclusively branded products are of market leading quality and available at highly competitive prices. They are continually run through in-house testing and independent laboratory analysis for quality assurance.

And to ensure we keep our prices low; we don't use expensive merchandising or loyalty programs. By employing this simple model, millions of consumers across the world have been able to continuously embrace ALDI.”

ALDI Australia

“The Australian ALDI expansion has grown strong from day one of our debut store in 2001, to building a presence of over 500 stores throughout NSW, ACT, VIC, QLD, SA and WA. In our short time, we have come to be one of the top 10 Australian retailers. We have also influenced grocery prices, improved the perception and quality of private label goods with our own exclusive brands philosophy and introduced a number of market-leading initiatives never before seen in Australia.

We've set our sights high, with many more stores planned for the eastern seaboard over the coming years. An ambitious expansion program is in place. This means the prospects for the future are hugely exciting as we constantly seek new property, logistics and employee opportunities, and make major investments in new stores.”

Source: (corporate.aldi.com.au).

The report must consider the following questions in relation to your evaluation of ALDI Australia:

1. The Supermarkets and Grocery Stores industry is one of the most fiercely competitive industries in Australia. What led Aldi to consider entering such a competitive market as Australia?
2. Who are Aldi’s competitors?
3. What are the cultural differences, if any, between ALDI’s parent company (Germany) and ALDI Australia? Is country-of-origin an important factor in ALDI’s successful growth in Australia – why/ why not?
4. How has ALDI employed STP (Segmentation, Targeting & Positioning) to gain market share?
5. What entry strategy did ALDI adapt in Australia?
6. What of the future for ALDI in Australia?

Transcribed Image Text:

COMPANY BACKGROUND ALDI JUSTIFICATION ON ENTERING ON THE AUSTRALIAN MARKET THE KEY EXTERNAL DRIVERS FACTOR Population Real Household income Consumer sentiment index PESTEL ANALYSIS Political Economical Social-Cultural Technological Environmental Legal System COMPETITOR ANALYSIS MARKETING MIX STRATEGIES Product Price Place Promotion People Presentation PORTER S 5 ANALYSIS The intensity of rivalry among the existing firms-High Threats of new entrance -High Bargaining Power of Buyers-High Bargaining Power of Suppliers-Low Threat of substitute products - High Future Prediction: CULTURAL PROFILE HOFSTEDE FIVE DIMENSIONS ANALYSIS Power distance (high versus low) Individualism vs Collectivism cultures Masculine versus femininity Uncertainty Avoidance index Uncertainty Avoidance index Long term vs short term orientation Achievement versus Nurturing MARKETING SEGMENTATION Demographic Segmentation Geographic Segmentation Psychographic Segmentation Behavioral Segmentation ENTRY STRATEGY Private brands and Limited Range Price Change Policy Minimization of functions RECOMMENDATIONS & CONCLUSIONS APPENDIX COMPANY BACKGROUND ALDI JUSTIFICATION ON ENTERING ON THE AUSTRALIAN MARKET THE KEY EXTERNAL DRIVERS FACTOR Population Real Household income Consumer sentiment index PESTEL ANALYSIS Political Economical Social-Cultural Technological Environmental Legal System COMPETITOR ANALYSIS MARKETING MIX STRATEGIES Product Price Place Promotion People Presentation PORTER S 5 ANALYSIS The intensity of rivalry among the existing firms-High Threats of new entrance -High Bargaining Power of Buyers-High Bargaining Power of Suppliers-Low Threat of substitute products - High Future Prediction: CULTURAL PROFILE HOFSTEDE FIVE DIMENSIONS ANALYSIS Power distance (high versus low) Individualism vs Collectivism cultures Masculine versus femininity Uncertainty Avoidance index Uncertainty Avoidance index Long term vs short term orientation Achievement versus Nurturing MARKETING SEGMENTATION Demographic Segmentation Geographic Segmentation Psychographic Segmentation Behavioral Segmentation ENTRY STRATEGY Private brands and Limited Range Price Change Policy Minimization of functions RECOMMENDATIONS & CONCLUSIONS APPENDIX

Answer rating: 100% (QA)

ALDI BACKGROUND ALDI is the short form for Albrecht Discount It started as a small corner store in Essen Germany in 1913 and has grown to become one of the biggest supermarket chain stores in the worl... View the full answer