Aldi & Lidl Case Study

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In an attempt to improve its image of an 'underclass-discounter' in the UK and in Switzerland, Aldi enlarged its product range and offered a higher level of service to the customers. What could be the rationales behind such a strategy in the UK and in Switzerland? Do you also see problems and risks associated with this approach? In order to increase its market shares and profits, Aldi had to improve from its reputation of ‘underclass-discounter’ strategy by enlarging its products range and offer more upscale products and services into the stores for customers in UK and Switzerland as well as keeping the cost low for consumers. Aldi had to come up with new and better strategies to tackle the stiff competition in UK and Switzerland and remain competitive among the existing competitors, Migros and Cooper, in their local market. Cultural differences in UK influences how Aldi decided to upscale their product range as well as providing a higher level of services to the customers. In UK, low cost or low prices are perceived as poor quality. Therefore, Aldi had to make adjustment to its prices and quality of products so that people’s perception of Aldi’s past reputation of an ‘underclass-discounter’ will changed overtime. In September 2012, Aldi has announced that they are increasing the price of milk again (Ford, 2012), this has also given Aldi an opportunity to improve its image of an ‘underclass-discounter’ in the UK and Switzerland. By providing higher quality of services through training and development of resources and increasing the prices of products, it does not deter customers from choosing Aldi over their competitors. Report states that consumer are happy and chose Aldi as their preferred choice for supermarket due to its lower cost as well as no compromise to quality (Anon., 2014). Another one of Aldi’s strategy is to start advertising campaigns to
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