Friday, September 18, 2015

Look Out, U.S Grocers, U.K.'s Free-for-All Heads Across the Pond; No-frills German discounters Aldi and Lidl have taken the British market by storm, and are now targeting the U.S.

Global Dominance: Invasion of Aldi and Lidl

     Increasing grocery prices are directly related with the economy and consumer price index. Adjusting to these steady price increases in the economy drives an army of consumers who are constantly seeking stores that cater within their budget. To prosper amongst the intense competition local grocery stores need to maintain low prices and excellent operations that satisfy customers needs. Navigating into unfriendly territory, Aldi and Lidl quest to embark on a global marketing expedition to deliver cheaper prices by improving the customers experience, has produced a disruption of the hold loyal consumers have towards U.S. brands. 
     
     My personal evaluation of Aldi revealled the following; although a small establishment, I was able to obtain value for the trolley of groceries purchased within 30 minutes from a choice of over 1,000 o more items with savings of 40% or more when compared to Wal- Mart, Kroger, Fiesta, and HEB. The store was clean and attractive and I was able to shop with ease. Initially I was reluctant to shop at Aldi and saw it as an imitation of Wal-Mart but the sterotype was dismissed. I was willing to try different brands that gave me the
similiar results on value when compared to higher priced brands. 
   
    Aldi's understands the global market and consumer needs, which is evident of their timely launching and global extension. The diverse prospective of entering into the American market has caused operations to be presented as a single global market with multiple segments that has extended beyond the German national boarders. The seismic shift in global marketing invites competition and trade opportunities into different regions of the world. Aldi has learnt to master the marketing mix that is culturally feasible and cost effective. Aldi and Lidl gained significant traction during the recent recession whilst other competitors raised prices. In the article it fails to address the uncontrollable factors that these companies encountered in their quest to invade international markets that catered to consumers tast and socio-cultural differences. Overcoming those hurdles drives competition, which welcomes growth when a market has been established away from headquarters. In all essence price will be the main driver that will decide who gets a bigger share of customers during the recovery stages of the American economy.

3 comments:

  1. Great perspective Aldon. I too enjoy Aldi and the items that I can find there sometimes are even the European brands that I recognize.

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  2. When I lived in Europe I used to do the groceries at LIDL, all their stores were no-frills and really convenient. I would like to see if these type of stores do have as much success as they have there. I believe that in US the target market is different, the customer in general has a high standard for packaging, and definitely the products LIDL sell have a basic packaging.
    Another aspect that I realized while buying there was that many products were produced in countries within the European Union, so there was a smaller cost in the transportation from producers to the distribution chain. To compete with Walmart and having the same prices as the products which are sell in Europe is going to be a difficult task to achieve and mantain, but never impossible!

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