Elizabeth Zinchuk Robert Niedzweicki
Tyler Roray Robin Komie
Table of Contents I. Aldi History and Research Aldi History Page 4 Vision and Mission Page 5 Products / Brands Page 6 Current Marketing & Advertising Page 7 Competitors Page 8 SWOT Analysis Page 9
II. Consumer Research Research Findings Pages 10-13 Target Audience Page 14 Consumer Profile Page 15 III. Creative Objectives & Strategies Intro Page 16-17 Objectives Page 18 Radio Ad Page 19 Billboards Page 20 Promotions Page 21 Social Media Page 22 Guerilla Page 23 Events Page 24-27 IV. Media Plan Objectives & Strategies Budget Allocation Page 28-31 Media Plan Page 32 Evaluations Page 33-34
Company History & Research
History Aldi is one of the world’s largest privately owned companies in both Europe and the United States. Based in Germany, brothers Karl and Theo Albrecht bought their father’s grocery store and created Aldi. By the 1960s, Aldi had flourished and grown to 300 stores. The brothers split their company and became two separate entities, Aldi Nord which owns Trader Joe’s and Aldi Süd which is the Aldi most Americans and Europeans know.
Abroad, Aldi Nord can be found in Denmark, France, the Benelux countries, the Iberian Peninsula, and Poland. Aldi Süd operates in Ireland, United Kingdom, Hungary, Switzerland, Australia, Austria and Slovenia. There are over 1,300 Aldi stores in the United states and 4,000 Aldi stores nationwide.
Vision & Mission
“Our unique business model enables us to provide the highest quality products at the lowest possible prices. This value stems from the numerous efficiencies and innovations we’ve instituted at every level of our operation.” Aldi’s mission is to offer a unique experience to its customers. This entails quality, efficiency, and value. Aldi’s brand focuses on simplicity and minimalism in order to offer an end result unlike any other grocery chain. The stores offer over 1,400 commonly purchased grocery and household products “in a smaller, more manageable environment designed with sustainable, long-term savings in mind.” At its core, Aldi as a brand promotes the mission of consumers paying less for high quality products. Because they can cut out high operational costs and concentrated their buying power and savings through cutting out the middle man, Aldi’s claims to price their groceries at up to 50 percent less than other national brands.
Products / Brands Aldi is best known their discounted, high quality products. Known primarily for being a grocery store, Aldi also sells household items and home decor. Because they are a discounted store, Aldi carries their own branded merchandise.
Two newer Aldi brands that are gaining popularity amongst health nuts is SimplyNature, Aldi’s answer to 100% Organic living and LiveGFree, gluten free products at a discounted price.
Current Marketing & Advertising Aldi can be found online on Facebook, Twitter, Instagram, Pinterest, and other social media platforms.
Aldi releases a circular every week with new specials and brand announcements. These advertisements can be found in local newspapers.
The “Like Brand� campaign focuses on a particular Aldi product like Milk, Eggs, or a specialty item. Aldi will then match that product with a similar, more expensive brand and use them as a side by side comparison of how much money a customer might save with the Aldi brand. This showcases not only the Aldi product, but the price and quality of the product as well.
Competitors
Schnuck’s has a focus on Organic produce and products, higher end merchandise, and they sell Alcoho while Kroger has a club membership, special coupons, free items, organic products, and a gas station with points from purchases. Wal-Mart offers a full scale store which includes both grocery and home goods, organic produce/products, and in some cases, Alcohol. Even though Wal-Mart is a full service store, they have been blasted in the media for controversial business practices and the way they treat their employees.
SWOT Analysis
Consumer Research
Focus Group
Focus Group Demographics: 2 men, 2 women, 3 Caucasians, 1 Latino, 2 students, 2 community members, aged 21-35, 1 married couple, 2 singles. Our group focused on their feelings towards Aldi as a brand and store. Overall, our respondents’ feelings towards Aldi as a whole were positive. Every respondent knew of and had shopped at Aldi at least once. Our single respondents were brand loyal to other stores while our married couple were brand loyal to Aldi. After hearing other views, one of our non-loyal respondents was interested in visiting Aldi.
“If someone goes to a dinner party now, they’ll go to Aldi and hit that one section with dips and cheeses and wine because it’s affordable and a little fancy. They sell goat cheese… Why spend the extra money to go to Kroger or Schnuck’s when you can get the same stuff, if not better, at Aldi? I feel like they have a wide demographic, all walks of life.” “...Aldi is cheap and they have interesting stuff. You can get really decent quality cheeses and snacks, organic products that are affordable, and alcohol. Aldi makes it affordable to eat healthier with their organic and gluten free stuff. Their produce and snacks are on the healthy side, like with Fit and Active.”
Survey Reddit Survey: 76 respondents Posted to: r/SampleSize, r/Chicago, r/ChicagoFood, r/ChicagoSuburbs Most of our respondents shop at Jewel, a popular grocery store chain in the Chicagoland area. This would be comparable to Schnuck’s or Kroger in Central and Southern Illinois. Even though Jewel is the winner overall, most of our respondents are very familiar with Aldi and have shopped there. Most even recognize Aldi store brands. Out of 76 respondents, only one shops at Aldi. Further research found the bulk of Chicago Aldi’s were located on the North side of the city and the suburbs. Because a little under half of our respondents stated they grocery shop once a week, which suggests they work within a budget. When thinking of Aldi, about half of our respondents saw Aldi as a store with very affordable merchandise and mediocre quality. They believed the shopping environment was simple, which could be due to Aldi promise of simple setups. The overall feelings towards Aldi stated by our respondents is that the store is lackluster in appearance and shopping experience. When asked why they shop at Aldi, our respondents answered it was due to low, affordable prices and quarter shopping carts. Most believed that Aldi wants to save their customers money which shows our respondents trust the Aldi brand and might fall into brand loyalty after some use. As far as Aldi’s being socially and environmentally conscious, our respondents aren’t sure if they see a conscious brand, even though they are aware Aldi offers organic and gluten free foods. For entertainment, our respondents spend most of their time on the internet and using their cell phones. They also use Facebook the most out of various social media platforms. Their time is spent going out to the movies, enjoying live music, and going to professional sports games.
Survey Findings
Target Audience Primary Demographic - Males and females from the ages of 18-34, from middle class families with an estimated household income of $25,000 - $50,000, living on the Northside of Chicago. Primary Psychographic - People who want to save money on groceries, while still buying quality products. Like many millennials, people who shop at Aldi enjoy eating out and experiencing what the world has to offer through their own eyes. Saving money for these meaningful life experience is an underlying priority. Secondary Demographic - Males and Females aged 35-65+, who are lower to middle class. Location and race are fairly ambiguous, targeting customers who live within a 15 mile radius of the store. Secondary Psychographic - Penny pinchers and coupon cutters, who need to make the most out of their dollar. Like many baby boomers and middle class families, these smart shoppers understand that life isn’t cheap and pride themselves on getting the most quality products for the least amount of money.
Consumer Profile Andy lives in Wrigleyville, a north side neighborhood of Chicago. Because Andy is a white, millennial male, he fits right in. Andy loves sports and is interested in attending cubs games as he lives down the street. Even though he makes about $25,000 a year, he is able to afford his apartment because he most likely lives with a partner or a roommate. Because Andy doesn’t have children, he is able to enjoy going to the movies and indulging in concerts. When Andy needs to grocery shop, which he does once a week because he follows a budget, he is most likely to visit Jewel, a Chicago grocery chain with brand loyalty and a strong following. He has visited Aldi’s before and is aware of their brand Fit and Active. Having not truly shopped at Aldi’s, Andy’s outlook on the brand is mediocre at best. He knows they offer organic and gluten free foods, but doesn’t think the shopping experience is worth the trip. Because Andy is familiar with Aldi and is not entirely negative towards the brand, targeting his age and socio-economic group would be smart.
Creative
Creative
Aldi provides grocery consumers with a win-win situation. Not only are they getting high quality food that exceeds most industry standards but they also are getting the food a cheaper face than any of their competitors. From our findings, we found that most people associate Aldi with the discount aspect of the brand, but do not always associate the brand with quality. Eat Well, Eat Smart is our big idea that reinforces the idea that the consumer is eating better quality food for a lower price.
Creative
Objectives
In 2017, we will raise Aldi awareness and perceptions amongst male and female millennials in the Chicagoland area. We aim to also push the Aldi Fit N Active, SimplyNature, and LiveGFree brands to position Aldi as a contender in the organic/healthy foods market.
Strategies We will place Aldi branding in high traffic areas in the Chicagoland area, including billboards, bags in the park, food trucks, and farmer’s markets. We will also push Aldi on social media year round with boosted posts and partner with Planet Fitness to showcase the Fit N Active fitness drink brand.
Radio Ad
Billboard
- Billboard: Downtown Chicago, $4,5000 + $150 for installation fees, 2 month run = $9,150 - Impressions: 25,000/day, 75,000 people/day - 3 Locations around downtown Chicago - 30 sheet post, 23’ x 11’
Promotions Display Ad - Banner: $3,000/1 month - Two Impression tiers: 100,000 or 150,000 - Clickable Ad - Print, Online, Mobile, Tablet placement on ChicagoTribune.com
Planet Fitness Vending Machine - Rental machines: $124/month with a 48-month commitment - Lease of space = donation of 15 - 33% of profits - Aldi keeps 100% of profits from machines - Sell Fit N Active “Gatorade� and other healthy drinks
Social Media
- Facebook boosting 12-month period: $2,900 - $200 per month, 2 retarget ads per month - $500 gift card given to winner of #EatWellEatSmart contest - #EatWellEatSmart contest: Use hashtag to be entered into yearly drawing. Drawing occurs every December for the Holidays
Guerilla
- Giant showcase of reusable bag: $1,000 - Attain brand awareness
- Placed in Grant Park, downtown Chicago - Post selfies with bag with the hashtag #AldisInThePark
Events
Taste of Chicago
- Aldi Taste of Chicago Food Truck
- 5 days, $100/day, plus a 21% commission on gross sales after taxes. - $1000 deposit must be submitted with application. Deposit will be returned at redemption following participation in the event. - $500 for event, $1000 refundable deposit
Events
Chicago Farmer’s Market: Lincoln Park, Daley Plaza, W. Humboldt Park
-Farmers market in Chicago is a perfect venue for Aldi to showcase it’s fresh food varieties -Weekly for three months: $15,000 -Locations: - Daley Plaza (May 14 - Oct 29, Thursdays)
- Lincoln Park (Jun 6 - Oct 31, Saturdays)
- West Humboldt Park (Jun 27 - Sept 26, Saturdays)
Media Plan
Objectives
To reach out target audience by way of Traditional and Non-Traditional methods. We will utilize 12 months of the year, but focus on the Spring and Summer months as this is peak times for outdoor activities and awareness of healthy food brands.
Strategies We will allocate $42,550 to our Traditional advertising where we will focus on pushing our Eat Well. Eat Smart. campaign across social media, print and mobile display ads, billboards, and radio ads during Cub’s games. We will focus on high volume areas in the Chicagoland area. We will allocate $20,500 to our Non-Traditional advertising where we will focus on outdoor events like the Taste of Chicago Food Truck and the Chicago Farmer’s Market. We will also place a giant sized Aldi reusable bag in Grant Park where people can take pictures and use the hashtag #AldisInThePark to win reusable bags. We will partner with Planet Fitness with our Fit N Active workout drink vending machines as well.
Media Plan
Budget Allocation
Budget Allocation
Media Plan
Evaluations & Appendix
Evaluations
Our Aldi Eat Well. Eat Smart. campaign will reach over blah blah people throughout the course of the 2017 fiscal year. This will be accomplished by utilizing both traditional and non-traditional advertising mediums in Chicago. We will allocate $42,550 to our Traditional advertising where we will focus on pushing our Eat Well. Eat Smart. campaign across social media, print and mobile display ads, billboards, and radio ads during Cub’s games. We will focus on high volume areas in the Chicagoland area. We will allocate $20,500 to our Non-Traditional advertising where we will focus on outdoor events like the Taste of Chicago Food Truck and the Chicago Farmer’s Market. We will also place a giant sized Aldi reusable bag in Grant Park where people can take pictures and use the hashtag #AldisInThePark to win reusable bags. We will partner with Planet Fitness with our Fit N Active workout drink vending machines as well. We will evaluate our Eat Well. Eat Smart campaign by tracking the sales for the entire 2017 fiscal year. We will raise Aldi Fit N Active, SimplyNature and LiveGFree brand awareness amongst male and female millennials who live in the Chicagoland area by utilizing high traffic, hip areas of Chicago. Evaluations will be done by a pre-test and post-test survey and focus group amongst our target audience. Media will be evaluated by analyzing the overall impressions of our billboards, display ads, radio ads, and social media presence. We will also track the amount of food sold at the Taste of Chicago and headcount how many people visited our tent. We will track the profits of our Fit N Active vending machine as well.
Appendix: Sources
http://www.vendingsolutions.com/vending-machines-sales-and-leasing/ (vending machine)
http://smallbusiness.chron.com/enter-vending-machine-business-2275.html (vending machine) http://www.cityofchicago.org/city/en/depts/dca/supp_info/farmers_market.html (Farmer’s Market) http://www.cityofchicago.org/city/en/depts/dca/supp_info/taste_of_chicago.html/ (Taste of Chicago) https://www.facebook.com/business/help/344177172342419 (Facebook Boosting) http://placeanad.chicagotribune.com/chicagotribune-com-run-of-channel-roc-sports-channel (display ad) http://www.gaebler.com/WSCR-AM-IL-Radio-Advertising-Costs++23968 (radio ad) http://www.telegraph.co.uk/news/shopping-and-consumer-news/11473701/One-in-three-Aldi-and-Lidl-shoppers-is-upperor-middle-class.html https://www.nerdwallet.com/blog/credit-cards/aldi-starts-taking-credit-cards/ http://www.businessinsider.com/massive-share-of-us-millennials-stream-video-on-netflix-and-youtube-2015-11?utm_ source=feedly&utm_medium=webfeeds http://aldiuscareers.com/about-aldi/historyhttp://aldiuscareers.com/about-aldi/history http://www.thisismoney.co.uk/money/markets/article-2437616/Aldi-reveal-double-annual-profits-40-6-sales-jump.html http://www.businessinsider.com/aldi-vs-walmart-grocery-prices-2015-12 http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11632767/Aldis-brand-is-now-worth-more-than-Tescos.html