Aldi Corporate Responsibility

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Introduction This report is for the purpose of evaluating Aldi’s current strategy and to provide a theoretical background to consumer behaviour. Research was carried out by reading books and using the internet as a source. Limited information is supplied by Aldi as they like to keep their affairs private when it comes to strategies. Consumer behaviour theoretical background Consumer behaviour is defined as “the study of individuals, groups, or organisations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.” (Sabine Kuester 2012) The decision making process model is the first…show more content…
Aldi has a no frills approach to retailing and offers a limited product range with around 1,000 SKU’s compared to other supermarkets such as Tesco who have 10,000 SKU’s. (Retail Week 2010) Stores are often situated in out of town retail parks next to other discount stores for example Aldi in Lochee, Dundee is situated next to Home Bargains. (Evening Telegraph 2013) In 2014 Aldi announced a 67% profit rise. (Telegraph 2014). Aldi Corporate Responsibility Policy Aldi has a policy which it states its core values and talks about policies based on consumers, suppliers, product resources, operations, and the implementation of this policy. Aldi’s core purpose is to provide value to their customers by being fair and efficient in all that they do. Their approach is based on three core values; consistency leads to reliability meaning they are consistent with people, products and price. Simplicity creates efficiency this relates to the customer and the company and responsibility stands for their commitment towards people, customers, partners and the environment. Under consumers it is stated that Aldi promises its customers quality products for the best price and they would like to help customers make informed…show more content…
One way Aldi do this is by labelling there products to the extreme likeness of big brands. According to Gestalt psychology theory we group products in our minds based on proximity, similarity and continuity and we perceive these items to be the same through grouping of products. Aldi heavily rely on this method by imitating big brands with their packaging. Nearly all the items in Aldi’s product portfolio are extremely similar to big brands via fonts, colours, product labels, and same size and shape. (Mail Online 2013) The customer’s perception is that the products will be extremely similar but often at first glance it seems like the real deal. Positioning of stock in the store plays a massive part of this. Items are grouped together in there sections and neatly presented. Aldi’s products could be described as surrogate indicators substituting for the big brands. For example some items such as pot noodle has be changed to hot noodle. One glance and you wouldn’t be able to tell the difference. Coco Pops have been branded as Choco Rice and look extremely similar. (Mail Online 2013) Thus becoming a surrogate indicator based on how we perceive this item at first glance, this includes the store environment such as calm and pleasant and store layout with products being presented neatly and grouped accordingly. A surrogate indicator is a substitute indicator of quality and allows consumers
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