ALDI

Superior consumer value through strategic

channel alliances

Presented by:Sonu Kumar

70044

INTRODUCTION
O Opened as a small food store In 1914 in

Essen, Germany.
O In 1948, their son took over the
business.
O 1961 split their business.
O First ALDI store opened in Dortmund in
1962.
O Operates in 8 countries with over 8,500
stores

Competitive Advantages
O Limited assortment

Manage only 700-1500 SKUs

Focuses on the most frequently used product.
No promotional strategy like no baggers, fancy

display, Customer loyalty programme etc.

Minimum number of staff.

Operational efficiencies

O Low overhead, high volume and heavy use of private

goods
O Superior relationship with suppliers.
O High quality product at much lower price.
O Inventory turnover is very high.

O Private label advantage

High quality at much lower prices

O Relationship marketing

Focuses more on its vendors than its customer.

Q1. Do you think ALDI could pursue its

business model without developing strategic
alliances with channel members? Discuss.

No, as it is focuses more on its vendors than its customer.

ALDI thinking is that customer will stick with them as long as
it provide high quality goods at the lowest possible prices.
Strategic alliances with their vendors help ALDI to encourage
them to develop packages that they are easy to handle for
logistic provider as well as for store.
Alliances with their private label manufacturer keep them
motivated to produce high quality product which sometime
exceeds the national name brand standard.

Q 2. D I SCU S S T HE CO NCEP T O F WI N-WI N I N T H E

C ON TE XT OF ST RAT EG I C ALL I ANCE I N MA R KE TI NG
CH ANNE L S.
ALDI gives contract to local manufacturer for certain
period of time as long as they maintain their quality.
ALDI get minimum price guarantee.
Manufacturer or vendor can focus and allocate their
resources for a long period of time and effectively.

THANK
YOU