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Amazon and Aldi's Marketing Strategy

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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, relative newcomer Amazon Grocery 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 the organization you chose based on recent trends and changes?
5. How can these strategies improve that organization's image as a "corporate citizen" within the community?

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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?

Amazon grocery is trying to capitalize on the increasing trend among consumers to shop online, especially in larger cities and among busy professionals, by offering convenient online grocery shopping options. Another socio-cultural trend that companies like Amazon is trying to capture is increased consciousness among consumers about healthy eating options. Amazon is offering a wide range of healthy grocery items to capitalize on this new trend.

Similarly, the recession and tough economic conditions have forced consumers to become extremely price conscious and increasingly opt for "value for money" options. ALDI's positioning as a value for money grocery ...

Solution provided by:
Sheetal Jain, PGDM
Education
  • BComm, University of Delhi
  • Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
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