Like Brands. Only Cheaper.

By Kaitlin Hastie : WordPress User khastie : Student ID 215268319

 

Aldi LogoALDI’s first Australian store opened in 2001. Since then ALDI has had a rapid expansion in the Australian market, now having over 400 stores, and starting operations within South Australia (2015) and Western Australia (2016). The last 5 years is where ALDI has really started to be popular with the Australian customer. Why is this? A lot of the success that ALDI has had comes from a very successful marketing campaign. The ALDI marketing gets to the core of customer perception on what represents that ALDI brand; is it Cheap? Good Quality? Low cost? Smart? Efficient? German?

Marketing of the brand

I first started working with ALDI in 2010. ALDI was growing, but was still a relatively unheard of brand for the everyday Australian. The company was only sitting on around 5-6% share of the Australian grocery market. The power of TV advertising was great success for the business, which has now had almost double digit growth year on year since 2011. Advertising on TV was unheard of for a business that prides itself on word of mouth advertising through its customers and its weekly catalogues.

Phase 1: Establish the Brand

The marketing of ALDI brand has gone a long way to ensure that the every day Australian considers ALDI products as part of the everyday household. The first TV campaign, ‘Like for Like’, highlighted how ALDI was able to piggy back on the brand recognition that other companies had spend years – if not decades – building upon. It showed the current market leading brands next to ALDI’s own brand products.
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These pictures show you how ALDI has utilised the strong position of companies such as Sirena Tuna, and aligned its own private label products along side these very popular and well-respected brands. Quality perception is a big influencer for a successful brand, and ALDI’s marketing has positioned its private label products to the similar quality standards of other branded products. As you can see the ALDI products are also strategically created to look similar in terms of colour, shape, name and brand name.

The ‘Like for Like’ campaign was successful in building the perception of ALDI into a trusted brand with high quality products.

Phase 2: Power of Brand Associations

The next marketing campaign was ‘Like brands. Only Cheaper’. Building on the success of the ‘Like for Like’ advertising, ALDI has now moved into the marketing of its products on price. ALDI has been able to use the power of brand associations, and utilises the common traits such as physical shape, colour of packaging and text to ensure that customers are confident in their purchase that this product is just like the other one that they used to buy in Coles and Woolworths. Customers are creatures of habit, and too much change, especially visually, will put customers off converting to ALDI – regardless of the possible price savings.

Future of the Private Label Industry

Very recently Woolworths announced a relaunch of its private label brands. According to Professor Paul Harrison, the main reason for this decision by Woolworths was due to the success of “ALDI”. The brand awareness around ALDI has been able to question customer’s perceptions on the quality of home brand or private labelling products. Due to the success that ALDI has seen in its marketing of private label products, both Coles and Woolworths have had to re-launch their private label products.

The marketing of ALDI as a trusted household brand, has been strategic and targeted over a period of time. They were able to first create the trust in the brand through a quality framework. It then moved into brand associations, and highlighted the cheaper costs, however ensuring that lower costs does not compromise the quality. As an employee at ALDI, I have been able to witness the change in our customers perception of ALDI over time. When you get it right, marketing is extremely powerful tool for your brand’s success.

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Additional References:

Iacobucci, D 2013, Marketing Management, student edition, South-Western Cengage Learning, Ohio, USA

One thought on “Like Brands. Only Cheaper.

  1. I’ve always wondered why Aldi don’t exploit their Australian Made range further? I love the fact that Aldi have simple items like dish washing liquid (main competitor made in Indonesia & Thailand), and bleach powder (main competitor made in South Korea) are made right here.

    Like

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