Comparison of Aldi and Lidl

Comparison of Aldi and Lidl ABSTRACT The price war among supermarkets does really benefit the customers in recession time. But the major discount supermarkets like Aldi and Lidl cannot get the all grip on the retail markets as they had it at early stage. They are not able to maintain the position in the market as cheapest retailers because of tough competition from rivals. This project hopes to discuss some of the trends among major supermarkets like Tesco, Asda Sainsburys in pricing to compete with discount retailers such as Lidl and Aldi. It also focus on the strategies made by the mainstream supermarket chains to overcome the recession effects. Topic In the current economy, will the retail discounters loose out? A case study of Aldi and Lidl. Aim and Objectives Aims-Identify the Strength, weakness, opportunity and Threat of Aldi and Lidl to sustain as discount retailers in the current retail market. Objectives: Find out why people shop at Lidl and Aldi? Their perceptions of the brands, how often they come? How much they spend? To ascertain why Lidl and Aldi customer loyalty has diminished since the competitors changed the strategies. To evaluate the effectiveness of Lidl and Aldis recent repositioning strategies on their brand image Review of Literature: Scientific and technological revolution have shaped an effective and innovative business order .Since the source of information and information procedures have become rapid and convenient ,the business atmosphere has turn out to be more chaoetic.Consumers are showing their buying capacity with an expectation of high quality for reasonable price. As there are liberal policies, new products and services are launching every day in to the market. Information technology plays a crucial role in the business world with up dated information and rapid way of communication 1. Customer Behavior Customers are offered tremendous bundle of choices. Some people restricts their choices, becoming relationship oriented with some organization (Sheth and Parvatiyar, 1995) and have the potential to become long life customers. Customers life cycles are becoming increasingly transitory due to the severe impact of competitors action on existing relationships (Reinartz and Kumar, 2000). Consumer behaviour in retail sector is characterized by impulse purchasing and fickle customers (Newman and Patel, 2004).. This may do to the fact that customers do not experience any switching costs when changing their supplier (Reinartz and Kumar, 2000). Others exhibit switching behaviour in their shopping (Peterson, 1995) and split their purchases among several Table.1: Attributes of store image Most Frequently Cited Attribute Other Attributes 1. Merchandise: * Selection * Quality * Price * Styling 2. Service 3. Clientele 4. Physical facilities 5. Convenience 6. Promotion 7. Store atmosphere 8. Institutional 9. Post-Transaction 2. Brand: When a brand is communicated through advertising, packaging and merchandising, it aims to create confidence and minimise the purchasing risk to the consumer (Palmer, 1996). Such attributes, it is held, are particularly important when buying fashion products (de Chernatony and McDonald, 1992; Doyle, 1991). In brief, brand values provide a promise of sameness and predictability (Keller, 2003). Branding came to be understood as providing a unique mixture of benefits that satisfy rational needs, but also emotional ones, by facilitating and simplifying the consumers choice process through behavioural shortcuts, habit and perception. Successful brand is defined as a name, symbol, design or some combination of these, which identifies the à ¢Ã¢â€š ¬Ã‹Å"à ¢Ã¢â€š ¬Ã‹Å"product of a particular organisation as having a sustainable differential advantage (Schmitt, 1999). 3. Positioning To understand positioning from a customer perspective, it is important to explain what is positioning in marketing literature. Although the craft of positioning is a defining function of modern branding, the idea of positioning dates back to Classical Greece, with Platos assertion that memories evoke related memories, thus colouring interpretation (Warren, 1916). In the seventeenth and eighteenth centuries, the British empiricists elaborated the Aristotelian notion that ideas are stored in memory by association, developing the three à ¢Ã¢â€š ¬Ã…“Laws of Associationà ¢Ã¢â€š ¬Ã‚ ; similarity, contrast and contiguity. Discussion 1. Recession affecting the retailers. Here we will discuss about the recession and its affect on retail markets. As we know that we are running in the bad economic condition. So it gives us unemployment, lack of money, poverty, people go behind the cheap product..etc. in these situation we call it for recession. Recession participate everywhere around the world. In these situations people are scaring to spend their money in to business or market. 2. Current retail UK Market. In the current economic conditions the retail markets are trying to grab their customers giving different offers and products. Using cheap price and quality products are the priority for all retailers to the customers and it is the key factor to increase the business and survive the recession. Neil Saunders, the consulting director at Verdict, said: (telegraph nov 2009) We are now entering the most challenging period many retailers will have ever faced: the UK retail market is both mature and intensively competitive and that, combined with a slowdown in growth, means everyone will need to work much harder just to stand still. Andy bond Asda CEO (the marketing blog aug 2009) à ¢Ã¢â€š ¬Ã…“We be able to already see how changing attitudes are affecting customers shopping habits, Consumers are not prepared to pay a premium when they cannot taste the difference. The era of conspicuous consumption is besides.Saving money by cutting out waste of every part of kinds will be the priority. 3. Major discounters Aldi and Lidl The German chains Aldi and lidl are discount retailer and fight with the big four rivals called Tesco, Asda, sainsburey, and Morrisons. The two discounters have to do a lot of work while competing rivals. Aldi one of the retail company in UK and launched in 1990 and they have more than 300 stores across UK. the company called Aldi sell food, drinks, healthn and beauty product, sanitary items, baby product, and other cheap house hold items and wide variety of fruits and vegetables, including frozen food, fresh meats, fish, desserts, baked goods and alcohol, wines cheeseetc. the important thing that Aldi has concentrated products are own labelled or in other words own brand products and the other brand product or none Aldi products are limited. The store strong in cheapest products and it introduced from GERMANY. So the company typically use two similar brands for all category of the product. So this structure gives Aldi stores to be smaller than general supermarkets which cover the same range of products but with more variety. About the companys offer to the customer giving special offers per week, special buy deal offer a particular range of product like electronics and car accessorie s, cloths and house hold items, garden ,appliancesetc at bargain prices on Sundays and Thursdays (it might be for a week or available for limited products). à ¢Ã¢â€š ¬Ã‹Å" Aldi is able to offer deeply discounted prices on around 1,300 popular food items (a typical grocery store has 30,000) due to its various cost-cutting strategies. These include buying cheap land on the outskirts of towns and cities, building cheap warehouses, employing few staff, keeping store furnishings to a bare minimum and carrying mostly private-label items, which are displayed on pallets rather than shelves. The firm takes a fixed amount of money for carrier bags. Lidl the rivals of Aldi and the major discount supermarket store chain in UK. the store more aware about their customer and so the firm provides 800 different products. As i above mentioned about Aldi , Lidl has wide variety of their own brand products and the companies priority for leading brand for each category. Food, fresh produce, frozen foods, Italian cuisines, wines, home appliances and garden products including tools and planets are available from Lidl. These are the products known as à ¢Ã¢â€š ¬Ã‹Å"Specials and they offer to the customer low cost of frozen foods as well. à ¢Ã¢â€š ¬Ã…“Low-cost operating methods, such as avoiding expensive advertising, high-rent locations and a diverse-range of goods, have enabled it to challenge and even overtake its number one rivals in some European markets such as Franceà ¢Ã¢â€š ¬Ã‚ . Lidl can attract more customers in 2008 in the beginning of recession because most of the consumers especially middle class consumers started their shop ping at discount retailers like Aldi and Lidl. à ¢Ã¢â€š ¬Ã…“According to market research firm TNS, Lidl was the second most successful UK supermarket group over the busy Christmas period in 2008, with group sales far exceeding growth in the overall grocery sectorà ¢Ã¢â€š ¬Ã‚ . G Gavin (2008) describe à ¢Ã¢â€š ¬Ã…“When we visited Lidl stores across Europe, we noticed that new, improved ranges are being introduced across fresh and chilled categories. Ranges are far more tailored to national and even regional markets than in the past. Organics, healthy eating and fairtrade ranges have also been incorporated into the mix. And this strategy, too, is very much determined on a country by country basis, in line with key prevailing consumer trends. Clearly many of these elements are not unique to Lidl among its discounting peer group, but the combination of these is leading to the development of an increasingly compelling proposition, with the branded presence in-store a key differentiator from its largest rival Aldià ¢Ã¢â€š ¬Ã‚ . Now come to the point that the big four super markets battling towards the discounters like Aldi and Lidl.TNS world panel realise that the Aldi and Lidl sales from May to July 8.3 percent, 6.8 percent. But in the case of the big retailers achieved second quarter Morrison 9.5 percentage, Asda 8.1 percentage, waitrose8.2 percentage respectively. Paul (2009), Aldis UK Managing Director, blames à ¢Ã¢â€š ¬Ã…“some of the slowdown in growth on promotional activity from the brands, which has been à ¢Ã¢â€š ¬Ã…“pretty effectiveà ¢Ã¢â€š ¬Ã…“. Aldi does not sell the traditional big brandsà ¢Ã¢â€š ¬Ã‚ . The important things that the big four mainly concentrated in their sales called promotions, discount ranges, and advertising campaigns.etc. The Tescos promotion known as discounters, Asdas round pound, Sainsburys switch and save, Waitrose essential. Chris (2009) of TNS, said: The promotional activity the major multiples have put in place has stolen the wind out of the discounters sails . Waitroses Essentials range now accounts for 15 percent of the grocers salesà ¢Ã¢â€š ¬Ã‚ . Now the current economic down turn the consumer always looking for the promotions and discount sales. So the major discounters will be loose their sales until they started promotional activity from the traditional brands. Research methodology 1. Research Approach To understand the different research approach is in business research. These approaches can be mainly categorized as positivist and critical interpretive, qualitative and quantitative. Positivist and critical interpretive research Positivist paradigm believes in the view that the world is external and objective to the researcher, which is identical to the belief used in natural sciences. Positivist researchers are independent of the research being conducted and focus on description, uncovering facts and explanation .Researchers, then by using models and theories that they have created explains the behaviour on the grounds of the facts and observations The other position, known to us as the critical interpretive paradigm believes in the view that the world is constructed socially and is subjective. They also believe that reality does not exist outside the perceptions of people. Critical researchers are seen as a vital part of the researching process. Critical researchers attempt to discover understandings and discovery of the broad interrelationship in the circumstances they are researching. Qualitative and quantitative research: In qualitative research words are the units of analysis. Qualitative research tends to be associated with description. The data needed for qualitative analysis has to be gathered from interviews and questionnaires. Methods like ethnography will be used for the process of qualitative analysis and ethnographic data storage software will be used to store information. There are many advantages of using such software which will help store the data safely, the data can be coded easily, and retrieval of data will be more reliable. Computerization removes barriers and scales to the scale and complexity of analysis. There are virtually no clerical limits to how much stuff you get now, and few to how complex it is. (Richards and Richards 1993:40) Quantitative research Quantitative research tends to be associated with numbers, as the unit of analysis and it tends to be associated with statistical data. Charts and graphs have to be constructed from the figures and information gathered from the questionnaires and researches. Word processing and spreadsheet packages can be used for this purpose. Information in the form of numbers will be gathered from Different HR Mangers by using different data collection tools like questionnaires, review of previous documents etc. and the data will be used to construct meaningful figures and charts using software. Research Strategies Survey- Since the case study is on the basis of customer behaviour with a clear aim on customers perception of a particular brand, certainly the importance is set on primary data. The secondary data backed the primary data using appropriate hypothetical framework. The primary data will be collected using pre-designed questionnaire. Twelve questions were involved in the close ended questionnaire form with shoppers demographic outlines. Brand and Store loyalty measurement can be done by enquiring Lidl Aldi shoppers to rate definite qualities on predefined scales. Uni-polar scales will be utilized (Ajzen and Fishbein, 1980) starting from one all the way to five, places very low, low, average, high, and superb respectively. Former researchers, like James et a. (1976) have used the similar scaling methods while assessing attributes of a certain brand or store by implying how much a store is able to fulfil consumers expectation. In AldiLidl outlets in London where customers should be asked to rate the attributes with one hundred questionnaires.At least Eighty interviews will be carried out in London AldiLidl outlets. Since only AldiLidl shoppers participated, every questionnaire will be involved in the research. A detailed survey must be conducted. The data analysis could be created by using e SPSS12.O which is the data mining programme. Case study- This research is on the basis of case study since it discovers the individual behaviour of consumers in retail market.Research on the basis of case study is suitable since it covers the contextual situation and a broadly investigation other than a mere theoretical study.More over it is reliable as it provides multiple sources of information. In research, a familiar figure is used to study as it represents the whole concept with itself.Discount supermarket case studies are widely used in most of the UK institutes and research fields as it had a bright past with enormous brand loyalty by customers.,But now the scenario became different and it is facing more challenges to exist in the market. Explanatory study ÃÆ'ËÅ" On the basis of brand position and theory ÃÆ'ËÅ" Explaining fundamental connection of variables (correlation of style and shoppers customers visiting time) ÃÆ'ËÅ" Focusing circumstances for describing the connection among variables. Form of Presentation The dissertation will be presented in a written form supplemented with charts showing current and historical data Conclusion Aldi and Lidl the major discounters in UK, but the above mentioned information give us they are going to lose in current economic conditions. So the message give us the total picture about the current market, economic conditions, and the rivals in the current markets. References Geoffrey Moore, the business cycle research, Jon Gregory Taylor, investment timing and business cycle, john wiley sons publisher in 1997,p23 Gary marks john F. Maudlin, rocking wall street john wiley sons publisher in 2007, p92. Invstopedia forbes digital company(http://www.investopedia.com/terms/r/recession.asp) India dialy news paper(2007) (http://www.indiadaily.com/editorial/17492.asp) Bureau for Economic Research (BER) http://www.fastmoving.co.za/news-archive/retailer-news/retail-sector-faces-threat-of-recession http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/3368164/Tesco-most-likely-retailer-to-survive-recession.html Andy Bond CEO Asda http://www.themarketingblog.co.uk/e_article001292783.cfm Aldi http://www.supermarket.co.uk/aldi.html Lidl http://www.supermarket.co.uk/lidl.html Gavin Rothwell, senior business analyst, IGD, http://www.igd.com/index.asp?id=1fid=1sid=19tid=11cid=85 http://www.guardian.co.uk/business/2009/jul/24/aldi-lidl-sales-growth

Sugar :: essays research papers

Clarke 1 Sweet Foods And Peoples Moods   Ã‚  Ã‚  Ã‚  Ã‚  Probably some of the most pleasurable and enjoyable memories of a person has to do with sweets. When thinking back to birthdays, there is always the memory of the wonderful cake that mother beautifully made and decorated with frosting and glazes. A typical night out with dad can be transformed into a magical evening with a trip to the ice cream parlor. The end of a fantastic Thanksgiving dinner turns heavenly when a hot apple pie is brought to the table and topped with delicious, melting vanilla ice cream. A good wedding is never complete without the cutting of the splendid multi-level wedding cake, when the happy new couple gets to playfully shove and smear cake and white frosting into each other’s smiling faces. Everyone knows that as a child, the only good part about going to the dentist is getting the candy bar at the end of the visit. Why do some people get sick after eating too much suger? Some people do not even know that the abuse of sugar can lead to negative effects on your body. There is something strangely enjoyable and resplendent about the consumption of sugar. Why is it that sugar is so deliciously enjoyable and at the same time a food product that has many negative affects on people’s health? For years doctors have been saying that refined sugars are empty calories and consist of absolutely no vitamins or minerals that people need to survive. Dentists warn that sugary foods encourage tooth decay. Many people avoid sweet food because it can lead to obesity, heart problems, diabetes and cancer. These negative responses by people’s bodies are actually warnings. Maybe people eat sugar for other reasons than the sweet taste. The human body's negative responses to sugar may be a similar purpose to the reason kids feel pain when they are playing too roughly. People’s consumption of sweet foods might also serve as a sign of defiance against their bodies’ health limitations. What many people do not realize is that their tasty treats can affect their mind and emotions.   Ã‚  Ã‚  Ã‚  Ã‚   Many parents may be surprised when they realize how sugar can affect their children. All parents want their kids to be well behaved and do well in school. To encourage their kids to behave themselves in school and get good grades, parents often reward their children with sweets such as candy, a special trip to the ice cream parlor, or any other store full of great treats to motivate the young children to keep up the good work.

Obsession essay Essay

Some call it dedication, others call it psychotic. I prefer to think of obsession as a part of life. The definition of obsession which is found on The Free Dictionary is the domination of one’s thoughts or feelings by a persistent idea, image, desire, etc. Obsession can be determined by people around us. Passion is a positive obsession. Obsession is a negative passion. Obsession and addiction are so closely tied together. They both are almost exactly the same except for one factor; control. Being obsessed over something simply means that they are still in control of their habit; on the other hand, addiction is the state being enslaved to a habit or to something that is psychologically or physically habit-forming. So it is seen that although they are very closely linked they are not the same. Obsession is the gate way to addiction. Personally, I have been accused of being obsessed over lacrosse. All I could think about of every day is something about lacrosse. My mind was wrapped around lacrosse like a candy wrapper on a piece of candy. Every time I had free time, I went outside and played lacrosse. At the time I did not believe I was obsessed over the issue, I simply thought of it as dedication. My parents confronted my issue to me, and right then and there is when I realized that I truly had an obsession. Obsession becomes a beast all in itself. Obsession can cloud someone’s judgment and can potentially lead a person off the track of their own goal. When someone is obsessed over something, then the only important thing in their life is the obsession. If one does not fulfill this need, then different effects may happen. Either one will perceive to their obsession, or they will realize that they have an obsession and stop in what they are doing. Power is something else we do not understand about obsession. Obsession takes root so easily and can quickly spread to become something more. Therefore it is not something to play around with because when it is excited, it will grow and grow until it has reached the top. At that point, obsession can only bring out the worst in a person. Obsession is a feeling and not an emotion. An emotion is a natural instinctive state of mind deriving from one’s circumstances, mood, or relationships with others. A feeling is just expressing an emotion. Obsession can be shown through jealousy, love etc. Emotions are on the inside, while feelings are shown to other people on the outside. Obsession is not born by itself; it is born from the person’s mind. Obsession is born from that person’s wants and needs. Anybody can have an obsession, and actually it is only a matter of time when someone will have an obsession. Humans are lustful creatures and we all have needs and wants and therefore we all have obsession. Obsession does not necessarily mean it is a bad thing. A person can be obsessed with something good like school. One could be obsessed over school and everyone else would classify that person as a nerd. Also, one could be obsessed over God, and others would classify that person as a Jesus freak. In the end, people do not classify nerds or Jesus freaks as having an obsession or addiction. They are viewed as having a passion for school or Jesus. A passion is a very strong feeling about a person or thing. Passion and obsession is pretty much the exact same thing. They both have the same context meaning. The only difference is that passion is a good obsession, and obsession is a bad passion. All in all, the term obsession is used as being negative. Obsession is the domination of thoughts by ideas or images. The state of being obsessed over something can fog up someone’s true thoughts of how they feel. When I was in love with lacrosse, my parents told me that I was obsessed with lacrosse and that I needed to realize what was happening. However, now that I look back on it, I believe that I had a passion for the sport. Passion is a positive obsession. Obsession is a negative passion.

A Brief Questions On Anxiety Disorders - 1838 Words

Answer all of the following questions. (125-word minimum each - except for the first, see instructions there). Use the textbook and any additional resources you feel are necessary. For each answer include an APA citation for any source used. In this unit, we’ve discussed several different disorders that fall into listed categories. Choose one disorder from each category and craft a scenario describing a patient with that disorder. (Like the short ones we did in class- between 100-150 words). Keep them to yourself - an extra-credit game will follow!) Anxiety Disorders, Somatoform Disorders, Personality Disorders, Eating Disorders, Mood Disorders, Dissociative Disorders Major Depression - Nathan has requested to talk to his school counselor about some problems that he had been having. It had been several years since his mother passed away from cancer, but sadness still persists. It is hard for him to be in places that she was prominent in, such as her workplace or at home. 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