Aldi has had its ups and its downs since its arrival in 1990, but in its 21st year, it’s clear the German discounter has come of age. After taking over in February 2010, joint MDs Roman Heini and Matthew Barnes quickly turned the business around in 2010, a feat that won it this accolade last year.
That was just for starters. Throughout 2011 Kantar regularly reported year-on-year sales growth of around 30% - a measure of growth achieved without significant investment in new stores - and it’s maintained the momentum into 2012, too.
So how has Aldi achieved so much organic growth? As the judges said, it was down to “great innovation, execution and marketing”. It’s performed particularly well in fresh meat, with sales up 92% at the last count, as it increased the number of British suppliers it uses. And changes in its range and sourcing also made a demonstrable difference to its bakery, mother and baby, and alcoholic drinks sales.
But it’s not so much the basket size as the footfall from returning customers - delighted by the quality of products that secured a total of 128 awards - that has helped Aldi generate so much extra business.
Add to this the buzz created by its clever marketing, and it’s clear that Aldi is now very much more than just a no-frills discounter. Its award-winning ad campaign, - ‘Like Brands, But Cheaper’ -has proved such a hit that many of the videos in the series have gone viral.
But it’s also tellingly engaged in Facebook, and partnered with the UK’s leading online mother and baby community, Mumsnet to promote its products, gauge market feedback and generate positive word of mouth.
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