TABLE OF CONTENT
* Introduction to ALDI (company history)
* Limited Assortment
* Operational Efficiencies at ALDI
* Private Brand Labeling
* Relationship Marketing to ALDI (Strategic Alliances)
* “Aldi” is a global discount shop.
* Privately owned company
* Began in Germany
* The chain is made up of two separate groups, Aldi Nord (North - operating as Aldi Markt) and Aldi Süd (South - operating as Aldi Süd) * Aldi is owned and managed by two brothers Karl and Theo Albercht. * Aldi in Germany has in all 2500 stores.
* Internationally Aldi has 9800 + stores which are present in Denmark, France , U.K, Austria , Australia ,Hungary ,Switzerland to name a few. ABOUT ALDI
* Aldi specializes in staple items, such as food, beverages, toilet paper, sanitary articles, and other inexpensive household items * Many of its products are own brands, with the number of other brands usually limited to a maximum of two for a given item. * This increases sales for each article, and allows Aldi shops to be smaller than those which have more brand choice. * This practice allowed Aldi to avoid using price tags even before the introduction of bar code scanners * Aldi is the largest wine retailer in Germany. Some Australian stores now sell alcoholic beverages. Some USA stores also sell alcoholic beverages (mainly beer and wine) where permitted by local laws. ALDI AS A RETAILER
* It has a limited assortment of grocery
* Scaled down version of a full size grocery store
* 900 + of the fastest selling items carried
* 80-90% private label items or discounted name brand items * #1 Priority is Customer Service and quality
* Discount items include clothing, toys, flowers, and gifts. Specials have strict limits on quantities, and are for one week. * It is ranked 12 out of the top 30 food retailers in the world, and Germany named it their top brand in 2000 STARTEGIES ADOPTED BY ALDI
* By offering deeply discounted prices on about 1,400 popular food items (a typical grocery store has 30,000). * ALDI (short for "Albrecht Discounts") buys cheap land mostly on city outskirts, builds cheap warehouses, employs a tiny staff, and carries mostly (95%) private-label items, displaying them on pallets rather than shelves. * ALDI is able to offer such low prices by having a relatively small selection but buying in large quantities, known as the limited assortment concept. It carries only 700 to 1500 items compared to Wal-mart’s 25,000 items. * It focuses on most frequently used products, and spices up its selection with “weekly specials” such as DVD players and house wares. SMARTER SHOPPING TOOL
* You can create a shopping list before you leave home.
* ALDI's handy tool allows you to create a list of your favorite grocery items, compare prices and see what's new. * Simply search and select the grocery item you need, and add it to your shopping list. * Print it out for your next shopping trip or email it to a friend to shop on your behalf. * People find Aldi’s products are the same low prices in every store in Australia. * Their ‘National Pricing’ means everyone can get the same low prices on the best quality groceries, wherever they live. * They believe you shouldn’t have to pay more for your groceries simply because of where you live, which is why you’ll pay the same low prices on groceries in every ALDI store. CART RENTAL
* They also use a shopping cart rental system.
* The customer is required to put a coin in the grocery cart and when the cart is returned the customer gets the coin back. * This tactic cuts down on labor costs, since customers must take their cart back to its original location to receive their coin. * This eliminates the need to hire employees whose job is to retrieve shopping carts NO FRILLS STRATEGY
* Their “no frills” strategy...
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