Aldi Key Learning Points
1 Aldi applied the unusual technique of acknowledging its lack of name brands with TV advertising that favorably
compared its own-label products. This strategy engaged non-consumers and boosted loyalty among existing
customers, helping Aldi grow its market share by 43% and delivering a return on investment of 14.5:1.
2. Comparative advertising can be categorized as explicit (where a rival brand is named) and implicit (where a rival
brand is alluded to). Aldi used explicit comparisons, but they were done in with a a gentle, humorous tone
3 Surely in recession people make sacrifices and traditional discounters like Aldi do well? If only it
were that simple. Recession had made consumers more risk averse. It had fundamentally impacted
consumer confidence5 and led to them seeking tried & tested brands rather than experimenting with
new ones. From Dec 08-Feb 10 the UK went into recession and Aldi’s value growth declined (note
Aldi is still growing but at a slower rate!).
4. The recession had made consumers more sensitive about being seen shopping at Aldi. Many
shoppers thought shopping at Aldi was a sign of financial desperation and shopping there seemed to
add to their feelings of financial hardship. So, Aldi focused on consumers who already shopped at
Aldi but were a) disloyal and b) didn’t buy much at Aldi because it didn’t have the brands that they
trusted. Aldi did not try to expand its customer base (penetration) it tried to extract more from its
existing customers.