Strategic Management: Evaluation of Socio-cultural Trends
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Comparison between Amazon and Aldi Grocery
Think about demographic and socio-cultural trends and changes and explain how each organization's interpretation of these trends and changes has affected its choice of strategy?
Is their strategy affected by the amount of advertising they do on television and the internet?
Which organization do you think is currently positioned better and why?
What strategy would you recommend for the organization you chose based on recent trends and changes?
How can these strategies improve that organization's image as a "corporate citizen" within the community?
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Think about demographic and socio-cultural trends and changes and explain how each organization's interpretation of these trends and changes has affected its choice of strategy?
When evaluating the marketing schemes of both Amazon grocery and Aldi, it becomes quickly apparent that the two companies are following very different patterns for gaining customers and establishing a market share.
For Amazon, the demographic it has targeted since entering the food market in 2006 has been focused on building upon a consumer base established already through its extremely popular internet based book store. According to Doug Herrington, VP of Amazon's grocery store, he stated that " we asked our customers on Amazon.com what they wanted in a grocery store, and the answer was clear: great brands and products at competitive prices, shipped free to their homes" (Kirk, 2006). For Amazon, this meant providing top name brand grocery items ranging from Kashi cereal to Jiffy Pop popcorn.
In a kick off letter for the Amazon grocery store in 2006, C.E.O. of Amazon.com Jeff Bezos stated that the company is officially offering "stuff you need and stuff you love, everyday staples and fun new products" (Gary, 2007). This translates to a grocery store in which over half of its products are organic or health related in nature. The primary customer for Amazon grocery tends to be the middle to upper class, on the go, single or joint couple / professional types who want the convenience of having things delivered to their home and are not heavily concerned with the typically higher prices (Virtual, 2006).
In comparison, Aldi stores has taken a much more simplistic and traditional grocery store approach since entering the U.S. market place in a few locations across Eastern Iowa in 1976 (Refrigerated, 2009). For Aldi, the ...
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