Aldi's spends less on advertising, basing their success on their presence in the market over time, word of mouth, and location. For Aldi's, dollars spent mean less of an ability to retain their model and give consumers the best price.
3. The two organizations are positioned for different areas. From a global fiscal perspective, Aldi's is the clear success based on ROI, number of stores, and daily sales. Many more suburban or rural consumers will drive to an Aldi's to stock up on essentials. Amazon has a more limited market. First due to its own limitations on delivery area; second on consumer habits of ordering groceries online (and perhaps paying more for some items); and third for breaking the habit of "running to the grocery story." However, the Amazon model is new, and in several larger urban areas is quite successful, although we are not yet certain of the fiscal viability of the model.
4. From a positioning perspective, the key is analysis of the individual market. An in-depth analysis of demographics, psychographics, geo-politics and shopping patterns is necessary to determine where our theoretical chain fits. Several questions must be answered: Where are our stores? How many do we have? What are our strengths and weaknesses (SWOT analysis)? Who are our competitors?...
Rather, analyze the market (s); stock the stores appropriately while partnering with certain featured brands that are appropriate for that particular area.
5. Using the above strategies improves the image of the chain as a corporate citizen because it can be marketed as focusing on that particular area to bring back to the community what it most needs. Use the data to develop advertising campaigns that speak to the majority of the needs of the particular community. In addition, market the chain as "not one of the biggest, but one who cares." Offer special orders, private sales, or other incentives to encourage the consumer's purchase. Above all, put money back into the community through school donations; sports, libraries, cultural events, and use that as the key of "your local store that cares."
Amazon to Roll Out Grocery Delivery Service. (24 January 2011). Mashable Business.
Retrieved from: http://mashable.com/2011/01/24/amazon-to-roll-out-grocery-delivery-service/
Top 6 Supermarket Industry Trends for 2010. (28 January 2010). Seeking Alpha. Retrieved From: http://seekingalpha.com/article/185012-top-6-supermarket-industry-trends-for-2010
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