Businessmodel of ALDI

Customer Segments

Aldi operates an international network of supermarkets through which its serves a large consumer base. The Company has historically targeted lower income consumers, providing a catalogue of mostly private label branded products at discounted prices. A recent survey found that a typical Aldi customer is a Caucasian female over the age of 60 with less than $140 in monthly discretionary income, who generally make larger individual grocery purchases. In recent years, however, Aldi has grown in popularity among middle class shoppers due to the low price but high quality of its budget prices.

Aldi serves an international client base, with operations across much of Europe – including across the Benelux region, Portugal, Slovenia, and Spain – as well as in Australia and the US.

Value Propositions

Aldi provides value to its customers in the following ways:

• Its industry standing and reputation, with the Company established in its operating markets, particularly in Europe, as a leading supermarket chain, frequently receiving awards from retail organisations and bodies;
• Its product catalogue and discounted prices, with the Company offering customers a relatively small catalogue of mostly private label products to customers at discount prices, typically lower than competing supermarket chains;
• Its no-frills structure, with the Company providing a straightforward and simple customer experience;
• Its customer service, with the Company providing high quality customer service both in-store and through dedicate dream, with the Company frequently named among the highest scoring supermarkets in customer satisfaction surveys; and
• Its accessibility, with the Company expanding its network of supermarkets, principally located on the outskirts of communities, and offering various digital services to customers. ### Channels

Aldi operate a number of international website across it numerous operating jurisdictions. This includes corporate websites, such as www.corporate.aldi.co.uk, through which it provides information on its activities, locations, and suppliers. In certain locations, the Company also provides an online shopping service, through which customers can browse items, make purchases, and arrange deliveries or store pickups.

Aldi also provides mobile apps for iOS and Android users, which offer much of the same functionality as its online stores, as well as offering additional personalisation features and deals.

The majority of Aldi’s sales are made through its international network of more than 10,000 supermarkets, through which the Company’s teams of sales and customer service staff are able to serve customers directly. Aldi operates its own distribution and logistics infrastructure, including warehouses and distribution centres, through which it serves allocates products to its stores.

Customer Relationships

In certain countries, notably the UK, Aldi operates various self-service sales channels. The Company’s online and mobile platforms allow customers to browse the Company’s products, purchase groceries online, arrange delivery or in-store pickup, and manage account details without interacting with members of Aldi’s sales or customer service staff.

Through its international chain of supermarkets, Aldi’s sales and customer service staff are able to provide a personalised service to its customers, offering personalised assistance in relation to enquiries and complaints. The Company’s sales and support staff also provide assistance in relation to returns and refunds policy that allows customers to return certain products within 60 days for a full refund. Aldi supermarkets, however, remain a primarily self-service operation.

Aldi’s websites include a customer service section, which provide information on the Company’s policies, delivery options, and FAQs, and provides contact information for its various departments, enabling customers to get in touch with relevant staff either over the phone, via email, or through an online contact form.

Additionally, Aldi operates several social media accounts – including with Facebook, Twitter, Instagram, YouTube, and Pinterest – through which it is able to interact with customers directly.

Key Activities

Aldi is an international supermarket and grocery store operator. It has stores in numerous countries across Europe – including Denmark, the UK, Hungary, Belgium, and Ireland – as well as in the US and Australia.

The Company’s principal market is its native Germany, where it has its broadest networks of stores and which accounts for the majority of its sales revenue. Aldi’s outlets typically offer a catalogue of around 2,000 private label branded products to customers, spanning fresh meats, fresh produce items, wines and beers, and home goods.

The Company additionally provides various self-service offerings, including home delivery services and in-store pickup options, as well as providing mobile applications.

Key Partners

Aldi’s operations require that it partners with a range of businesses and organisations, in order to provide its customers with the best possible service. These partners include:

• Supplier and Vendor Partners, comprising suppliers of tools, resources and services, as well as of products and produce, which support the Company’s sales operations and assist in stocking its stores;
• Community and Social Responsibility Partners, comprising various non-profits and charitable organisations, with which the Company collaborates on various social and community projects around the world;
• Sponsorship and Marketing Partners, comprising a range of sports organisations and bodies, as well as brands, to which the Company provides funding in return for an association with the Aldi brand; and
• Strategic and Alliance Partners, comprising a range of companies and organisations with which the Company shares certain resources and collaborates on joint projects. Aldi recently signed several sponsorship partnerships, sponsoring Team GB at the Rio Olympics and becoming the official naming rights partner and supermarket of the MiniRoos program in Australia. The Company also has a partnership with international development body Farm Africa, and a tie-up The Skills Place Newham to promote its own Aldi Apprentice Scheme.

Key Resources

Aldi’s key resources are its brand, its catalogue of products and supply chain infrastructure, its physical properties – including stores and distribution centres, its online and mobile platforms and IT infrastructure, its partnerships, and its personnel.

Aldi owns and leases numerous properties across Europe, Australia, and the US, typically acquiring inexpensive land on city outskirts. The Company’s properties include supermarkets, warehouses, and distribution centres. While Aldi’s brand and trademark is key to its operations, searches of records published by the German Patent and Trademark Office identified no applications filed in Aldi’s name.

Cost Structure

Aldi incurs costs in relation to the acquisition of products and produce, the operation and maintenance of its supply chain and distribution infrastructure, the development of its digital channels and maintenance of its IT infrastructure, the management of its partnerships, and the retention of its personnel.

Revenue Streams

Aldi generates revenue through the sale of various products at its supermarkets, across Europe, the US, and Australia, as well as through its online and mobile channels. The Company’s products span a range of categories, principally including:

• Fresh Food;
• Bakery;
• Frozen;
• Drinks;
• Household;
• Health and Beauty; and
• Pet Care.