Differentiation Strategy and Comparison of Aldi with Coles and Woolworths

This presentation discusses the differentiation strategy used by Aldi, Coles, and Woolworths. It also compares their pricing, strategic management, vision statements, CSR policies, and expansion strategies.

Business Strategy
Student:
Institution:

Meaning of Differentiation
Strategy
 Used by competing companies to
distinguish their products and services
(Armstrong, 2015, 77).
 Companies come up with unique products
or services for their customers.
 Some aspects of differentiation include
brand image, design, features, and
quality.
 Its part of Porter’s generic strategy.
 It can be on the basis of price, product, or
the organization.

Comparison of Aldi with Coles and
Woolworths
 Aldi has a stronger differentiation
strategy.
 Use of directing marketing lowers
costs.
 Receives high customer ratings.
 It uses own brand labels
 Strong position and suitable location
 Social media marketing.
 Fast expansion.

Differentiation strategy used
in Aldi, Coles, Woolworths
Coles
 Quality products
 More stores
 Better customer
experience
 Strong organizational
culture
Woolwarth
s
•Product
diversity
•Strong
vision
based on
quality
•Expansion
to Africa
Aldi
•Strong entry in
grocery
markets
•Self-service
checkouts
•Oversea
expansion
•Target on low
income
consumers
•High customer
differentiation
Aldi
coles
Woolworths

Pricing
 This is the value that companies sell
their products.
 A company can use high, low, or
mixed strategy.
 Pricing is based on the cost of goods
and production

Comparison
 Aldi maintains a low pricing strategy
to its production orientation.
 Woolworths uses a high-low pricing
strategy.
 Coles’ prices are high due to its
strong brand.
 The prices may vary between and
within markets

Price leader
pricing
Aldi
coles
Woolworths

Strategic management
 These are strategies applied by the
management to meet its objectives.
 The management applies a number
of strategies to meet its mandate.
 Top executives are the key drivers of
performance.

Comparison
 Coles has a strong leadership
strategy.
 The effective management in Coles
in based on strong and competent
leadership.
 Woolworths applies Wal-Mart's
leadership strategy.
 Aldi’s executives are skilled and
experienced leaders.

The best strategy
 Coles has the best leadership
strategy. Leadership

Vision statements
 These are statements that guide a
company in achieving its objectives.
 They are used alongside mission
statements.
 They remind the management in
daily activities.
 They define relationship with
external parties.

Aldi with Coles and
Woolworths visions
 Coles vision is based on quality.
 Woolworths maintains a vision
centered on customer satisfaction.
 Aldi’s vision is based on market
leadership and reaching low income
earners.

Best vision
 Woolworths has the best vision.
 It emphasizes on customer
satisfaction. Vision

CSR
 This is the definition of what a
company does to other stakeholders
(Mullins, et al. 2010, 342).
 It defines relationship with
employees.
 CSR defines how a business relates
to the external environment.

Aldi with Coles and
Woolworths CSR
 Woolworths works on sustainability
of the market.
 Coles maintains strong
environmental standards.
 Aldi produces environmental friendly
products.

Best CSR
 Aldi has the best CSR policy
CSR
Aldi
coles
Woolworths

Expansion
 Deals with the process of opening
more stores.
 More outlets and oversee outlets
implies growth.
 A company enjoys economies of
scale via expansion.

Aldi with Coles and
Woolworths expansion
 Coles has many oversea and local
outlets.
 Woolworths operates domestic
stores which are located in different
parts of the country.
 Aldi has succeeded in expanding to
other countries including Africa.

Best expansion strategy
 Aldi maintains a strong expansion
strategy,
Expansion

References
 Armstrong, G., Kotler, P., Harker, M.
and Brennan, R., 2015. Marketing: an
introduction. Pearson Education.
 Mullins, J.W., Walker, O.C., Boyd, H.W.
and Larréché, J.C., 2010. Marketing
management: A strategic decision-
making approach. Boston: McGraw-
Hill.