Beruflich Dokumente
Kultur Dokumente
Ananth G (1111008) Divya RM (1111026) Naveen R (1111042) Parasuraman A (1111047) Sagar Behera (1111058)
Product assortment
Absolutely no frills
No complicated methods to set price; No complicated engineering for logistics No customer survey; No product placement
Aldi- Germany
Aldi Aldi Nord Cell. Cell Cell.
Aldi Sud
Cell
60 Cells
4000 Store
95%
Aldi Products
Distribution Center: 1 per Cell (60 stores on avg. ) ~25000-40000 sq. M 20 reception and shipping docks
Dry Goods (81%)
Receiving Docks Store room (20% of store area) Selling Area Selling Area Aldi Store (~1000 sq. M)
Creating Value
Quality Testing Legal Requirements in Germany Intense laboratory tests on eggs Tasting awards for beers No frill efficient Operations leading to cost savings
Delivering Value
No question returns policy Faster checkout rate 42 items per min Store Locations Average cost of SKU 1.47 euro Lowest price Area specific products
Communicatin g Value
Brand Image of EDLP In store advertising with fliers Out-of store advertising for new locations only Surprise Buys
Capturing Value
High Quality Private labels at very low cost Loyal customer Base ALDI themed parties Simplified Decision Making
Time Efficiency
Decrease check out time Employees need to memorize bar codes for all products 4 bar codes on a single product (specified size-suppliers responsibility) High Efficiency - 42 items per minute Distribution Centers Truck fork lift system 3 pallets simultaneously DC with reloaders separates 40 large pallets into 80 small pallets every hour Supplier Specifications Supplier ships products in open boxes- goods in a single pallet prepared for sale within 3 minutes Stringent box dimension requirements on suppliers-placed in refrigerator without unpacking
Aldi dictates prices for all SKUs SKU count-700; every additional item certainly causes increased expenditure
Very low advertisement and marketing expenditures No marketing/strategy departments; management consulting
Employees
Lesser employees (3-7 employees per store) More pay Personnel costs: 3% of sales vs. 9% indus. avg. Employees trained to eliminate wastes No separate employees for unloading
Low inventory - Inventory holding time at DC less than 24 hours (cross-loaded into outbound trucks)
Store locations low cost districts 2% of total sales on occupancy cost Largest property owner in Germany very low number of rented stores
Cash/Debit cards No credit cards for payments Shrinkage: 0.5 % of sales vs. 1.7 % of indus
Aldi Vs Competitors
Aldi Format Strategy Price Strategy Limited assortment EDLP- 6.6 % lower than Walmart on Average Culturally embodied; Effective procurement from local suppliers Walmart Multiple available EDLP- Costlier than Aldi Cultural clash and stubborn to adapt Centralized procurement center; ineffecient
Cultural fitness
Product Procurement
Legal constraints
Aldi Vs Competitors
Aldi Stores 7200 Stores in 15 Countries Walmart 5700 Stores in USA
SKUs
Revenue Net Income
700
USD 44 Billion USD 2.1 Billion
70,000
USD 285 Billion USD 10.5 Billion
Three-to-seven employees
500 Employees
90% 20 to 30%
20% 12%
Particulars
No. of Aisles Staff personnel
ALDI
4 3-7
No. of SKUs
Sales per km Shrinkage Loss
Thank You