Aldi Executive Summary

ALDI provides a majority of the same products that many other grocery stores provide, but at a lower price. ALDI tries to maintain a reputation as the industry-wide cost leader. They promote themselves as a place to buy quality, low-priced groceries. Having said this, it is fairly evident that they utilize cost leadership in the industry as well as the focus strategy. Cost leadership is arguably the most evident thing about ALDI, as they so strongly stress having the lowest prices. In addition to cost leadership strategy, ALDI uses the differentiation focus strategy. It does this by focusing its marketing on the fact that it offers better service than its competitors, which is a pretty interesting tactic, seeing that it is a pretty “barebones”

ALDI’s limited brands and pricing strategy attract a certain type of customer. The strategic pricing leads us to assume that these customers are primarily from the lower and middle classes. Secondly, the limited brands narrow down the type of customer because we assume that those who shop at ALDI actually enjoy the limited brands offered there. From our interpretation of ALDI’s strategies, we believe that their patrons are narrowly defined. ALDI offers a unique set of products with an even more unique pricing strategy. They mainly sell groceries that are high quality but at the same time are less expensive because they sell offbeat brands that are the alternative to the more well-known brands. Also, ALDI only selects a limited amount of brands in their stores compared to other grocery stores. The price strategy that ALDI uses offers relatively lower prices of the brands they carry. This strategy actually makes sense because the low prices compensate with the limited amount of brands they

ALDI is famous for being the nation's lowest priced grocer, which popularly saves customers money when it comes to their grocery bill. Kroger on the other hand is one of the world’s fifth largest retailers. In some cases, they may be different but they do have their similarities. One key similarity is that they both strive to make their products more affordable for their customers. Despite how expensive Kroger is, (nearly double the price of AlDI) it has a rewards program which gives the customers discounts each time they shop. The savings are progressive, meaning the more you spend the more savings you earn. This helps make their products more affordable. ALDI is seen to make their products more affordable by making their prices less expensive, it is possible for ALDI to charge these low prices since 90% of its products are ALDI exclusive. This means that the price tag that comes with nationally known brands do not play a part when it comes to the pricing of ALDI’s products. Another way that they are similar, is simply due to the type of products they offer. They differ from places like Walmart and Target because they clearly focus on distributing food to their customers, and rarely sell things such as toys, or even clothing which is very common in stores such as Walmart. The specific reasons stated show how ALDI and Kroger are