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Grocery Store Chains

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You are a marketing executive at a grocery store chain and have been asked by your supervisor to evaluate the positioning of two of your major competitors, newcomer Amazon Grocery (in May 2006) and Aldi's. Amazon Grocery has over 15,000 non-perishable items, half of which are focused on the organic and healthier food-related products market while Aldi's has been shaped as the highest quality food-related products at the lowest possible price. Please respond to the following questions:

1. 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?
2. Is their strategy affected by the amount of advertising they do on television and the internet?
3. Which organization do you think is currently positioned better and why?
4. What strategy would you recommend for your company based on recent trends and changes?
5. How can these strategies improve their image as a "corporate citizen" within the community?

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Solution Summary

Compare Amazon Grocery vs. Aldi's

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1) Amazon is going after the younger population who really cares about what they eat but who also does not have the time or knowledge to spend on cooking fresh foods. Amazon is also focused on the higher socio-economic demographic as foods that are ordered online that are healthier are generally more expensive than regular non-perishable items sold in general grocery stores.

Aldi is focused on the cost-conscious consumer which is mainly comprised of families who want to feed their family good and healthy foods but who are usually stretched when it comes to money and need to make the most out of every dollar. Thus, they will buy foods that are fresh and make fresh meals out of them. This demographic is older and knows how to cook ...

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