Aldi 5c's

Ryan King

Kimberly Hutchinson

APR 270-003

27 February 2017

Aldi 5c’s

Company-

Beginning in 1913 in Germany and now growing into a global retail chain Aldi is seen as one of the top retail grocery store in the world. It is seen that Aldi operates its grocery store under the “limited-assortment” and “hard discounters.” One of Aldis main features is that it holds its product selection to 500 items. Up to 95% of Aldis products are private label and some even expressly made for Aldi stores. Aldi also prides it self on serving customers with high value products at low cost. It is said that Aldis products are 30% cheaper than its competition.

Collaborators-

Brothers Karl and Theo Albrecht founded this company in 1913, which later split into two independent companies called Aldi Nord and Aldi Sud. Each brother split up and took a company to run, which have both been extremely successful with thousand of stores all over the world. As far as Aldi priduce it seems that Aldi is a strong supporter for the environment, health and nutrition. Aldi always sources fresh fruit and vegetable produce from local growers.

Customers-

As far as Aldis customer basis and target market goes it seems that they target lower income earners who have limited income to spend. These customers are usually located in suburban and rural populations and are not concerned with well known or advertised brands, they just want good quality products at a cheap price.

Competitors-

One of Aldis main competitors that recently emerged is a chain called Lidl. Lidl another European bases discount grocery store has made plans to move to the US. In time it is said that Lidl could beat out Aldi and even grow to compete with major American chains such as Wal-Mart and Target. As of now Lidl hasn’t done much in America but has big plans coming in the near future. Along with this competition Aldi competes with a lot of the major American stores as well.

Context-

It can be said that Aldi is an innovative thoughtful and adaptive grocery store. Aldi features an environmentally friendly culture to the market place due to the fact that they do not provide customers with plastic bags at checkout. Having cutomers bring in their own bags is a leading practice in the grocery industry that is very popular among environmentalist. Another innovation Aldi uses is its’ Cart Rental system. This system forces customers to rent a cart for their time in the store. This innovation has lead to lower prices and save time on chasing down carts.