Aldi supermarket company and industry assessment Essay

Aldi supermarket company and industry assessment - Essay Example This paper describes the current strengths, weaknesses, opportunities and threats facing Aldi as part of a comprehensive SWOT analysis and also provides the various strategic options available to the supermarket chain in order to boost profitability and reputation. Sound Marketing Strategy. Since the Aldi low-cost model was established and company began operations, the business has remained focused on changing its image from simply a discount supermarket chain to that of a progressive, well-positioned company. The business has transformed its image from a no-frills business to a specialty brand company which removes consumer emphasis from the term discount to that of one focused on quality products. This has had appeal to mass markets and raised their sales 25 percent in early 2009 by being able to cater to a larger volume of potential demographics, even including the upscale consumer. Privatisation. Aldi is not a publicly traded company, which does not give the business the types of pressures felt by other publicly-traded supermarkets in terms of investor pressures for rapid expansion or other activities which benefit the shareholder. By holding higher levels of control over internal activities, Aldi has been able to emerge a leader in low-cost grocery shopping needs. Knowledge of consumer audiences. Aldi, unlike other discount grocery stores, appears to understand the lifestyle and behavioural needs of its customer base by creating marketing strategies which fit consumer psychology profiles. For instance, Aldi Supermarkets realises that in order to lure more image-conscious consumers to its facility, it would have to eliminate the strong focus on no-frills and reposition the firm based on quality products and selection. This eliminates the social fear of shopping at what might be considered a budget organisation and instead gives the impression of select branded products designed for active