1. International Strategy Of Lidl & Aldi Group A Xiaoxi Cai
, Shuo Shi, Yuanqin Zhuang, Zhengdong Zhang, Wing Yan Hung, Farhan
Zubair BST 248 International Marketing Lecturer: Dr Stephanie
Slater
2. PART 1 Industry Overview
3. Industry Overview 12.5 15.5 11.5 3 4 2 5.5 5.5 4.5 0. 4. 8.
12. 16. 20. Convenience Stores Discounters Modern Grocery Retailers
Estern Europe Western Europe World Grocery Retailers Market Growth
2009-2014
4. Industry Overview Market Share by Geographic Location 5.4
0.1 0.7 5.6 9.8 3.6 3.6 11 7 0.2 1.8 10.2 11.4 4.6 3.7 13 7.8 0.3 3
11.8 12.6 5.6 3.8 15 0. 4. 8. 12. 16. World Asia Pacific
Australasia Eastern Europe Latin America MEA North America Western
Europe 2003 2008 2013
5. PART 2 Company analysis
6. Lidl Current Market Analysis 2012/2013 fiscal turnover: 48.9
billion totally German discounter channel: stagnate but still
expected for growth International expansion becomes essential
Successful reason: big range of products + low prices Fast and
pushing internationalisation approach
7. Lidl Current Market Analysis Lidl: Sales by Market 2013
Germany France UK Netherlands Spain Italy Greece Portugal Poland
Belgium Czech Republic Other
8. Lidl SWOT Analysis German Market Has Mature and Flat Outlook
Stagnant Domestic Growth No Presence Outside EU Relatively Small
Comparing to Other Brands Private Label Products Online Selling
Quality Goods with Reasonable Price Range Low Pricing Strategy
WEAKNESS OPPOR- TUNITY Further Expansion in the EU Entering Africa
and Asia Providing Wider Product Range Click&Collect STRENGTH
THREAT
9. Aldi Current Market Analysis 2012/2013 fiscal turnover: 25
billion in Germany German discounter channel: stagnate but still
expected for growth International expansion becomes essential Slow
and Well considered internationalisation approach
10. Aldi Current Market Analysis Number of Aldi Group Outlets
2013 Germany US France Netherlands UK Belgium Austria Australia
Spain Denmark Switzerland Others
11. Aldi SWOT Analysis German Market Has Mature and Flat
Outlook Stagnant Domestic Growth Incomplete Shopping Experience for
Consumers Allegedly Known as A Store For Low Quality Products
Relatively Small Comparing to Other Brands Low Pricing Strategy Low
Costs Efficient Operating Strategies US Presence Drives Sales
WEAKNESS OPPOR- TUNITY Further Expansion in the EU Invest In
Advertising Entering Africa and Asia Providing Wider Product Range
Click&Collect STRENGTH THREAT
12. USA ITALY CHINA New Market Suggestion PART 3
13. New Market Suggestion PART 3 USA PEST Analysis| Adapatation
| P Political Economical Technological E S T Competition | Social
Stability Tax Law Trade partnership GDP Interest Rate Exchange Rate
Consumer Preference E-commerce Smart phone
14. Political Political Stability Tax policies Employment Law
Competition regulation Transatlantic Trade and Investment
Partnership
15. Economical USA
16. Economical GDP 0 55000 110000 165000 220000 275000 1997
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
2011 2012 2013 US Food and Beverage Stores GDP (Gross output) Food
and Barege Growth USA
17. Economical Interest rate USA
18. Economical Exchange rate USA
19. Social Financial Concerns for: 1) Students 2) Middle youth
3) Midlifers 4) Later life USA
20. Technological Online Shopping Trend USA
21. New Market Suggestion Competition | Adapatation | PEST
Analysis | Industry Brand Leading Grocery Brand: Walmart, Kroger,
Safeway Leading Discounter: Trader Joes, Aldi Overall, discounters
grew by 11% in current value terms. This was the strongest growth
of any grocery channel. PART 3
22. Industry -1.2 -1.1 -0.7 1. 1.7 2.8 3.6 4.1
Food/Drink/Tobacco Specialists Other Grocery Retailers Independent
small grocers Forecourt Retailers Hypermarkets Supermarkets
Convenience stores Discounters Sales in grocery Retailers by
channel % value growth 2012-13 USA
23. Brand Grocery Retailers brand Shares % Value 2013 0.8 0.9
1.1 1.2 1.4 1.4 1.4 1.5 1.5 1.6 1.9 3. 3.3 6.9 25.5 Aldi Giant
Eagle Trader Joe's 7-Eleven Albertson's Food Lion Whole Foods
Meijer Super Target Super Stop & shop H-E-B Publix Safeway
Kroger Walmart Grocery Retailers brand Shares % Value 2013 USA
24. Online order Collect In store Place Promotion Product 4P
Adaptation Social network Promotion Festival Promotion New Market
Suggestion Adaptation | Competition | PEST Analysis | Price Modify
for US Private Label Clean Stores Nutrition Informatio n Friendly
Staff Organic options low price strategy suited to the US market
PART 3
25. CHINA New Market Suggestion PART 3
26. Biggest Grocery Market CHINA
27. New Market Suggestion CHINA PEST Analysis| Adapatation | P
Political Economical Technological E S T Competition | Social
Stability Largest Population Trade partnership Different business
incentives Entry of WTO GDP Interest Rate Exchange Rate Specialized
service Safety first Western-style appeal Demand for high quality
Perception of western products Presence of private labels Huge
Internet Usage Online Business PART 3
28. Political Largest Population Stability on Business
Different incentives and securities to the new businesses Entry of
WTO CHINA
29. Economical CHINA Favorable Macro Economic Situation. High
Pace of Foreign Retailers Expansion. Rising disposable incomes.
Increasing Chinas retail grocery market. Urbanization. Internet
retailing.
30. Economical GDP per capita (current US$) CHINA
31. Economical Real Interest Rate CHINA
32. Economical Exchange rate CHINA
33. Social 1) specialized service. 1) Safety First. 2)
Western-style appeal. 3) Demand for high quality. 4) Positive
perception of western products. 5) Presence of private labels.
CHINA
34. Technological Huge internet usage. Consumer Society Begins
Online. CHINA
35. New Market Suggestion Competition | Adapatation | PEST
Analysis | Industry Brand Leading Grocery Brand: China Resources
Enterprise, RT Mart , Wal-Mart Majority of leading grocery
retailers are domestic companies. The discounter channel is
negligible. PART 3
36. Industry Sales in Grocery Retailers by Channel:Value Growth
2014 2009.9 655.7 551.2 246.1 58.2 25.9 3.5 Supermarkets
Hypermarkets Independent Small Grocers Food/Drink/Tobacco
Specialists Convenience Forecourt Retailers Discounters CHINA
37. Brand Grocery Retailers Brand Shares: % Value 2014 0. 0.5
0.9 1.4 1.8 2.3 RT Mart CR Vanguard Carrefour Lianhua Supermarket
Jia Jia Yue NGS-mart Auchan Wumart CHINA
38. More Dia switches from discounters to supermarkets. The
joint venture of CRE and TESCO proved to be competitive. Domestic
retailers perform better than multinational players. The increasing
growth of high-end supermarkets. New strategy for lidl, set up a
joint venture with RT mart as a supermarket. CHINA
39. Keep the pricing competitive in premium level. Price
Promotion Product 4P Adaptation Adapt promotional strategy
Advertise on TV and Internet New Market Suggestion Adaptation |
Competition | PEST Analysis | Place Local adaptation. Premium
private label products. Food safety. Locate in urban areas Location
with convenient transpor- tation Online distribution PART 3
40. USA ITALY New Market Suggestion PART 3
41. New Market Suggestion PEST Analysis| Adapatation | P
Political Economical Technological E S T Competition | Social
Stability International relationship No restriction in EU Long
lasting Lawsuits GDP Interest Rate Customer habits Customer
preference Logistics PART 3
42. Political Stable political regime Good international
relationships No restriction to the importation and exportation
within the EU (28 countries) Long lasting and expansive lawsuits
ITALY
43. Economical GDP per capita (current US$) Italys GDP per
capita is $30,200 and ranked at 30 in the world ITALY
44. Economical Real Interest Rate ITALY
45. Social Unconfident with modern issues, e.g. Internet Prefer
private label products Young adults (18-29) presents high level of
consumption of energy drinks ITALY
46. Technological Mature logistics and transport networks
ITALY
47. New Market Suggestion Competition | Adapatation | PEST
Analysis | Industry Brand Leading Grocery Brand: Coop, CONAD, Selex
Leading Discounter: Eurospin Italia, Lidl Overall, discounters in
Italy have the highest percentage of value growth at 2.9%. PART
3
48. Industry Sales in Grocery Retailers by Channel: % Value
Growth 2013/2014 2.9 1.4 0.9 0.1 -0.3 -0.5 -0.9 -1. Discounters
Supermarkets Convebuebce Stores Hypermarkets Other Grocery
Retailers Forecourt Retailers Independent Small Grocers
Food/Drink/Tobacco Specialists ITALY
50. Price Promotion Place 4P Adaptation Public Relationship
Television and social media Special offer Promotion New Market
Suggestion Adaptation | Competition | PEST Analysis | Product Store
location: Northern and central region Pleasant and clean store
environment Use logistics system Not provide e-commerce for now
Product quality Private label products Healthy food Ready Meals
Reduce baking section low price strategy suited to the Italy market
PART 3
51. THANKS Group A Xiaoxi Cai , Shuo Shi, Yuanqin Zhuang,
Zhengdong Zhang, Wing Yan Hung, Farhan Zubair BST 248 International
Marketing Lecturer: Dr Stephanie Slater