Important way to penetrate to the untapped market

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Reference no: EM13711645

International strategy:

One of the very critical problem Aldi faced in their international market is their least-known to customers. For example, Aldi entered the U.S. market in 1967, they held over 1200 stores in 32 states but still remained relatively unknown. So let more people know this brand is a very important way to penetrate to the untapped market and capture more market share.

Aldi's unique operating model makes they could sell goods in very low prices. About 90%-95% of the product they sold are their private label products and they have a relatively small SKU which means there are less choices for customers. In this case we believe our target customers are people who are from mid to low income families who want cheap but quality products and don't have any brand-loyalty to certain brands.

In order to cater to our target customers, we have 3 strategies:

1. Locate the market in a well-trafficked locations which near low to middle income communities. Places near bus station or subway are preferred. People always prefer to shop in a market near their house. For customers who can't afford or don't have a car. A place near public transport is very convenient for them to shop.

2. Put advertisement though TV, internet and deliver discount flyers directly to target communities' mailboxes. Cable companies nowadays could analyze their customers' information and estimate their rough income. So they could advertise Aldi's information more precisely to customers who meet our standards.

Aldi also could put advertisement on websites which middle to low income people like to go. What's more, Aldi could deliver discount flyers to their target communities like many supermarket do nowadays.

By letting more and more people know and have the willing to try Aldi, we believe Aldi could capture a large portion of the market share by their low price but high quality products.

3. Aldi could offer free tasting in the supermarket. Because most of their products are private label products most people have never tried before. Aldi should give new customers a chance to try the product before they make the decision whether to buy or not. Especial in places Aldi have never entered like the West.

This strategy may makes Aldi hire more people in the supermarket, but once we introduced our products successfully we could cut these cost in the near future. The benefit it bring to Aldi is much higher than the cost.

The other problem is Aldi have only entered the developed countries which are either European countries or English-spoken countries such as United States and Australia. New moneys such as BRICS which have large demands and lower labor cost could be potential markets for Aldi.

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Reference no: EM13711645

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