Packaging in Aldi

‘Driving sales through design and function’function’

Graham BaughanDirector – Corporate Buying

Who are Aldi?

In the beginning…

UK – Stechford, Birmingham 1990

2016

672 UK Stores126 Ireland Stores

50+ New Stores each year

Our goal is to provide our customers with the products they buy regularly and ensure that those products are of the highest possible

quality, at guaranteed low prices

To put it simply, we offer our customers a smarter way to shop

Our Performance

6.2% Market Share

6 Biggest UK Grocer

In the last 52 weeks, we have attracted 655,500 new customers

We have the largest average basket size in the industry at 17.9 packs per visit

(Kantar Worldpanel, 52 w/e 9th October 2016)

How do we do it?

Price

Quality

Efficiency

Responsibility

Packaging in Aldi

The Role of Packaging

Packing has multiple roles within our stores, from signposting our products and attracting customers to protecting the contents and

ensuring the Aldi promise of amazing quality at unbelievable prices is delivered all the way from factory to fork

The Role of Packaging

The constant innovation in our product ranges needs to be matched with the latest thinking around formats and pack design to ensure our sales continue to grow whilst also capturing process

efficiencies and cost benefits which we can use to drive further savings for our customers

Case Study

We have knowledgeable and dedicated teams delivering an amazing range of premium products that surprise and delight our customers

We overtrade in premium own label

We win awards for our product quality and premium range items

We drive innovation across our commodity groups and deliver some fantastic products to our customers

We have support partners and processes in place to facilitate best in class delivery

The Facts

We had an inconsistent look and feel to the Specially Selected brand in store

Customer experience was not premium at every stage

We had too many variables in the chain

Too much compromise has allowed inferior materials and print standards into our stores

Premium products were being let down by sub premium packaging

Other retailers deliver premium better

The Facts

Project Brief

100% delivery of the new Specially Selected guidelines

Develop substrate specifications and ensure adherence to minimum standards

Implement full PQM process across Specially Selected products

Develop and package future process for Aldi key brand management

Premium Own Label market currently makes up 2.8% of the Total market but it is growing ahead of Total Grocery as people shop the market more often

Total Market Premium Own Label KPIs

Source: Kantar Worldpanel 52w/e data to 28th February 2016

The Promise

‘A range of premium quality products demonstrating Aldi’s passion for authenticity in seeking out the best products from

around the world’

Packaging must deliver this promise

Style Guide & Visual Identity

Old specially selected design

Competitor review - Tesco, M&S, Sainsbury’s

Competitor review - Asda, Morrisons, Lidl

Competitor review - Booths, Waitrose, Co-op

Specially selected design changes

Introduce gold foil brand logo to deliver a more premium feel

Retain the use of black but change to a flat colour to reduce print issues

Create stronger shelf appeal and aid navigation through accent colours

Reduce pack clutter and create stronger product titles by centralising the logo

Introduce greater personality by allowing the design to be flexed where appropriate

Enhance provenance claims by creating an icon/logo that has a more credible feel and can deliver a stronger message

Substrate Management & Best in Class Packaging

Inconsistent packaging material specifications

Material suppliers not selected and controlled by Aldi

Aldi and our agencies have limited direct print control

Limited ability to enforce standards and goals

Diverse mix of suppliers and technologies

Aldi process requirements not met

No penalty structure

Quality issues and inconsistency across the range

Current position and challenges

Objective

Complete consistency across all Specially Selected materials

Premium execution of all elements of internal and external packaging

Direct line of communication to supplier base

All Aldi process requirements followed

Adhere to GSCOP

Solution (Now)

Clarity of Minimum Pack Specification requirements

BD led conversation regarding all packaging elements

Press Pass requirement for all items

Solution (Future)

Full Pack Science review prior to pre-tender

Consolidated approach to Substrate control and PQM

Substrate Management

SRP Management

All SRPs for UK Specially Selected products should go via Smurfit Kappa for approval

Specifications not being followed

Not all SRPs with Smurfit Kappa prior to landing instore

Timelines not being adhered to

Failed items allowed in store

No formal technical approval process for Ireland/Scotland boxes

Diverse mix of suppliers and print technologies

No penalty structure

Low level of consistency achieved by printers

Current position and challenges

Enforcement of SRP guidelines, processes & timelines

Secondary auditing of instore boxes

Ireland/Scotland packs to go through Smurfit Kappa process

Rejection of packs that do not meet required standards

Creation of clear KPIs for SRP packaging suppliers

Consistent approach

SRP Solution

Aldi SRP Golden Rules

The Results…