How ALDI became a player in the Aussie supermarket war
Since its introduction into the Australian market in 2001, ALDI has grown immensely to become a major player in the country, capturing an 11 per cent share of Australia's food and grocery sector as of 2022, according to financial comparison site Finder.
ALDI’s marketing strategy in Australia has kept the business strong: in December 2021, ALDI ranked fourth in a list of Australia’s top five most trusted supermarket brands, according to market research firm Roy Morgan. Previously, in 2018, for the second year running, ALDI Australia won the Retail Employer of the Year award from the Australian Retailers Association.
ALDI’s marketing strategy in Australia
So how exactly has the German supermarket giant won over Australian consumers? Consider some key components of the ALDI business model.
Increasing excitement through ‘Special Buys’
One of ALDI’s unique selling points is its twice-weekly “Special Buys” — the limited-edition products that often seem to have no sense of rhyme or reason as to why you would pick them up during your grocery shop. The reason is largely just to get feet through the door. While most of us choose which supermarket to shop at out of habit, this tactic sees shoppers making a conscious decision to visit the store — and while they’re there, picking up their regular groceries, too.
Providing an alternative option
While Coles and Woolworths stock tens of thousands of products from largely the same brands — further cementing their rivalry — ALDI, for the most part, chooses to stock alternative home brands in its comparatively small range of products as part of the ALDI business model.
Where home brand products in Australia have traditionally used minimal packaging design to convey a sense of low costs, ALDI products use bright designs, reminiscent of their top-shelf counterparts. This leads customers to think more positively about the quality of these products, rather than believing they are a disappointing substitute.
Tailoring stock for Australian tastes
One key difference between Australian ALDI and its European siblings is an increased offering of gourmet foods and its commitment to stocking local products. For our nation of foodies, ALDI stores in Australia feature a wider range of top quality cheeses, meats and coffees — while maintaining low-cost philosophies.
Another key aspect of ALDI’s business model in Australia is its tailored advertising approach. Even their television marketing campaigns have been adapted to the Australian market, with quirky, humorous promotional messaging also helping to increase their exposure and consumer confidence.
How many ALDI stores are there in Australia?
When the first ALDI opened its doors in Australia in 2001, the German company already had a booming multinational presence, thanks to its signature business model. Australian ALDIs grew swiftly in number, boasting more than 500 stores as of January 2021. The many ALDI stores that are in Australia today is a testament to the strength of the ALDI business model.
Discover and apply successful business marketing strategies
If you are interested in learning and applying successful marketing strategies like ALDI’s, an advanced business education may be a good choice for you. RMIT Online’s Master of Marketing offers a variety of courses — such as Interactive Marketing, Product Innovation and Advanced Digital Marketing — so you can focus on your interests and stay relevant in our changing marketing landscape. Learn more about RMIT’s program and how to develop innovative marketing plans for your organisation.
Recommended Readings
How Customer Success Managers can change your business
How does creative brand thinking create loyalty in your brand?
Why every company is now a content company
Sources:
ABC, The rise of Aldi: two decades that changed supermarket shopping in Australia
ALDI Unpacked, ALDI crowned Retail Employer of the Year
