Corporations are formed with the main purpose of optimizing profits while guaranteeing consumer satisfaction. Consumer satisfaction is vital for longevity in any industry niche. Retail is one of the flooded sectors. Supermarkets and other outlets are on the rise. It is vital to have unique services and products to attract consumers. Investing in marketing is also essential to make consumers conversant of the products on sale. With the aid of marketing, corporations can identify their target market and formulate strategies that aid in boosting sales. Waitrose and Aldi are examples of retail stores within the same industry. Despite being in a similar industry, these stores have different means of product assortment and relations with the consumers. Through the various reports, it is possible to depict the uniqueness in their marketing style, customer relations, and product assortment. Without these differences, they may cease to remain relevant; therefore, these enterprises need to be diverse.
Overview of Waitrose Corporation
Waitrose is a grocery store and retail enterprise that was founded in Britain. The firm was originally owned by Waite, Rose, and Tayler; its founders (Engage Employee, 2021). Currently, the store is under the ownership of John and Lewis. The company has over 100 stores across United Kingdom (UK) (Engage Employee, 2021). The store is ranked among the best grocery outlets in the UK.
Value Preposition of Waitrose
The retailer has a high-value proposition. It has the best customer service experience in Britain. The ranking implies that it is one of the most preferred places for shopping, especially to new shoppers. The enterprise also offers a wide array of items. As a result, consumers can conduct their shopping in one store. It saves on time as the consumer makes one shopping trip. The store provides alternatives of high-quality products. The products, especially food items, are fresh and made with quality ingredients. Its tender to supply to the royal family affirms that its products are of a high standard. However, the price range of the store is unfavourable for consumers. It is one of the most expensive grocery stores in the UK. From analysis, one cart containing a maximum of 45 items costs an estimate of 68 dollars (Williams, 2021). When compared to the cheapest store; Lild, the store charges $26 more.
Overview of Aldi Company
Aldi is a private corporation that deals in grocery and supermarket. It hails from Germany and has over 1600 subsidiaries in an estimate of 20 states (Bhasin, 2019). The corporation is quite popular among the host states such that it is currently the third-largest grocery stores in the USA (Tyler, 2018). It makes a turnover of over 50 billion from its subsidiaries (Bhasin, 2019). From the analysis, the company is quite profitable.
Value Preposition of Aldi
The corporation provides a wide array of products and services in a manner that makes it reputable. The firm has diversified product lines. It produces both edible and non-edible essential household goods. The company offers a variety of goods under one product line. The firm’s products are of top-notch quality; thus, making it a favourable place to shop for groceries. The company also prides itself on the quality of customer service it offers the consumers. The customers can shop with confidence as the employees are helpful and readily available to help. The Corporation makes its stores more favourable with its return policy (Bhasin, 2019). If consumers are dissatisfied with the products, they have the liberty to return them to the store.
The price range of its products makes the company a preferred shopping place. The corporation mainly targets middle-income individuals while pricing its products. The strategy is viable since a majority of grocery shoppers are middle class. With no-frills, the products are 30% cheaper than other grocery stores (Tyler, 2018). Its outlets have great discounts that allow regular shoppers to save up to 50% from their normal budget (Bettenga, 2019). The retailer also offers coupons and discounts on its products. With the low prices and discounts, the company attracts new customers. Additionally, with the economies of scale from the large consumer base, the corporation has an extended product base. As a result, the retailer becomes a favourable place to purchase products.
Comparison of Value Preposition of the Two Companies.
In terms of value proposition, Aldi is better than Waitrose. Both companies offer the best customer service and have a good product mix. However, Aldi offers quality products at affordable prices. Its products are cheaper than Waitrose by an estimate of $ 25 (Williams, 2021). It makes Aldi a better alternative in terms of the value proposition.
The Assortment of Products in Waitrose
The wide Waitrose’s product line makes the firm satisfactory to consumers. The firm offers a variety of products ranging from groceries, household goods, cellars, pet toys, and flower related items (Hegarty, 2018). It is convenient for buyers who intend to visit one place for shopping. In a household with pets, buyers can purchase pet toys alongside their groceries. The retailer offers a wide range of items within its product lines (Hegarty, 2018). In the cellar section, the store offers champagne and other forms of wines. With these varieties of products, the store meets the needs of customers under one roof.
The high quality of the store’s products makes it a favourable brand. The firm purposes to produce high-quality products by utilizing superior ingredients. The store takes pride in its sales of quality food and non-food products. Its groceries comprise fresh vegetables and fruits picked directly from the farms. The ingredients of most of its locally made products are organic. With the excellent quality of its products, most consumers prefer to purchase items from the store.
The firm’s consistency in the provision of organic food beneficial to its consumers. The company is known for its fresh farm products and wine. The analogy is supported by the store regular supply of groceries, wine, and spirits to the royal family. The firm’s consistency has made it a preferred grocery store across its outlets.
The Assortment of Products in Aldi
Aldi’s product line makes it favourable to consumers. Aldi has a sizeable product line. The corporation offers a diversified product line within its stores that ensures that consumer needs are satisfied within one shopping spree. The products comprise food and non-food products. Under the food section, the company offers a range of items. The section contains meat products; both white and red meat, food dressings, vegetables, and snacks. The non-edible section comprises gardening tools, household items such as toilet paper, and Furniture. The store is also suitable for individuals that need to purchase a drink since it sells alcoholic drinks such as wine. The company keeps expanding its product line to meet the preferences of its consumers. With all the wide product line, Aldi becomes a convenient place for general shopping; thus, making it a favourable brand.
The company’s high-quality products heighten the reputation of its retail stores. The retailer only sells items from reputable companies. The firm selects the best brands for every product it retails. For example, when it comes to kitchen appliances, the corporation mainly outsources from reputable brands such as Ambiano. The selectiveness of the corporation aids in ensuring that the consumers are satisfied with the products they purchase from the stores. As a result, the company has a stable consumer base that affirms the retailer’s product quality. Therefore, it improves the corporation image in the retail industry
Comparison of the Product Assortment
The two corporations have a superior product mix. They both offer a wide variety of products to the consumers. However, Waitrose has a greater product line. The inclusion of pet products, florist, and entertainment products makes it unique. Both their products are high quality and favourable to the consumers. Waitrose takes it a higher notch by providing fresh organic products. Its vegetables and fruits are gardens fresh; thus, giving it an upper hand. Equally, Waitrose is consistent with its production. Its product supply is consistent with quality and brand. Unlike Aldi, Waitrose has built its reputation based on the products its supplies.
Waitrose Relations with Consumers
The corporation’s excellent customer service boosts its sales. The corporation prides itself on an excellent customer experience ranking. It is among the top ten brands known for top-notch customer service in the UK. The store takes into consideration consumer comments and complaints (Engage Employee, 2021). From these sentiments, the firm maximizes its strengths while minimizing its weaknesses. For instance, if consumers complain that the corporation has inadequate check-outs, the firms use the criticism and increase the store check-outs. As a result, the consumers feel appreciated and part of the retailing enterprise. The retailer also aids their consumers in picking items they intend to purchase (Engage Employee, 2021). The employees are friendly and ready to serve the stores customers. The customers making it their shopping store; hence, increasing the retailer’s sales.
The varied distribution channels available in Waitrose improve its relations with the consumers. The firm offers home delivery services to its customers (Telegraph, 2021). A prospective buyer can choose from the variety of products the store offers and enter their postal address and code (Telegraph, 2021). Within a few minutes, the company will have delivered the items at the stipulated address. The strategy makes shopping easy and convenient especially, amid the Covid-19 pandemic where physical contact is being minimized. With the home delivery model, the store becomes a preferred brand among consumers.
Aldi Relationship with Consumers
The great customer service in Aldi boosts its sales. The firm has top-notch customer service that encourages consumers to shop in its retails. Whilst shopping, the employees are willing to help consumers with their goods. With the variety of products on sale, the consumers can get confused about what to purchase. The store offers personalized advice; hence, making shopping easier (Tyler, 2018). As reported, a consumer highlighted that Aldi is one of the best places to shop since one feels comfortable (Bettenga, 2019). The shopping experience is ambient and friendly to customers. The calm and serene atmosphere projected in the corporation makes consumers prefer the store to other retailers. As a result, the customers will return to the store for their occasional purchases; thus, boosting the retailer’s sales.
The availability of different distribution channels strengthens the firm’s relations with the customers. The firm offers flexible delivery services to its consumers. It has collaborated with Deliveroo to make distribute items to buyers (Butler, 2020). Through its website, consumers can order products from the store and get them delivered to their doorstep. Amid the coronavirus pandemic, its delivery service has boosted its sales (Butler, 2020). The service makes shopping easier and convenient for the firm’s customers. However, its delivery services are limited to consumers within a 6km radius of the company’s stores (Butler, 2020). Nonetheless, the delivery feature boosts the company’s relations with its consumers.
Comparison of Their Relations with Customers
The two corporations’ relations with their consumers is excellent. The two corporations focus on creating a serene shopping environment and provide personalized assistance. Both firms also offer delivery service. However, Waitrose offers a better customer service experience. The firm listens to consumers comments, unlike Aldi. It also offers better distribution services since its delivery is countrywide. Aldi’s distribution channels leave out consumers that are outside a 6km radius from their stores. As a result, individuals outside these zones would prefer to shop from Waitrose since its delivery services are more convenient.
Conclusion
In conclusion, both Waitrose and Aldi are firms that operate under the retailer industry. They both have several store outlets across Europe. From the comparison of the two firms, they both have unique marketing strategies to optimize their profits. Whereas Aldi has a higher competitive advantage in value proposition, Waitrose has leverage in both customer service experience and product mix. Aldi’s leverage in value proposition is based on its low prices. On the other hand, Waitrose leads in customer service experience due to its willingness to listen and act on consumer remarks.
Bibliography
Bettenga, L., 2019. What the Heck Is Aldi and Why Is Everyone Talking About It?. [online] Reader’s Digest. Available at: <https://www.rd.com/article/what-is-aldi/> [Accessed 18 April 2021].
Bhasin, H., 2019. Marketing strategy of Aldi – Aldi Marketing strategy of. [online] Marketing91. Available at: <https://www.marketing91.com/marketing-strategy-of-aldi/> [Accessed 18 April 2021].
Butler, S., 2020. Aldi partners Deliveroo for 30-minute grocery delivery service. [online] the Guardian. Available at: <https://www.theguardian.com/business/2020/may/18/aldi-joins-with-deliveroo-to-start-grocery-deliveries-coronavirus> [Accessed 18 April 2021].
Engage Employee, 2021. How Waitrose has become the UK’s number one retailer – Engage Employee. [online] Engage Employee. Available at: <https://engageemployee.com/how-waitrose-has-become-the-uks-number-one-retailer/> [Accessed 18 April 2021].
Hegarty, R., 2018. Waitrose revamps premium No.1 range with 200 products added. [online] The Grocer. Available at: <https://www.thegrocer.co.uk/ranging-and-merchandising/waitrose-revamps-premium-no1-range-with-200-products-added/598041.article> [Accessed 18 April 2021].
Telegraph, 2021. Best online grocery shopping sites. [online] The Telegraph. Available at: <https://www.telegraph.co.uk/food-and-drink/features/best-online-grocery-shopping-sites-one-delivers-goods/> [Accessed 18 April 2021].
Tyler, J., 2018. Here’s how Aldi’s explosive growth transformed it from a corner store in Germany to one of the biggest supermarket chains in the world. [online] Business Insider. Available at: <https://www.businessinsider.com/aldi-store-growth-history-2018-8?IR=T#in-1948-albrechts-sons-karl-and-theo-took-over-the-business-and-expanded-it-to-four-stores-throughout-germany-the-stores-were-called-albrecht-discount-2> [Accessed 18 April 2021].
Williams, M., 2021. Revealed: The 60 price gap between the cheapest and most expensive supermarket for a basket of groceries. [online] HeraldScotland. Available at: <https://www.heraldscotland.com/news/19012672.lidl-aldi-ocado-waitrose-best-worst-value-supermarket-basket-groceries—ranked/> [Accessed 18 April 2021].
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
