Customer Value and Value Proposition in Supermarket Industry

BUMKT5902 MARKETING MANAGEMENT
Individual Assignment—Customer Value and Value Proposition

Executive Summary
Customer Value Proposition (CVP) may be considered to be one of the most critical success
factors (CSFs) for a business organisation. A firm may need to strategically devise its value
proposition in its offering so that the targeted market and customer may get inclined to the same
and become the customers of the brand. It is needless to mention that the process of creating and
maintaining value at a general level of the standard may call for several considerations which are
not only internal but also external to the business. The instant report delves into the analysis of
such value proposition framework a conceived by Aldi, a supermarket giant in Australia in the
backdrop of its comparison with the value proposition by the industry and also a comparative
evaluation of the theme with the supermarkets in the UK.
The researcher has provided a brief background of the topics followed by the discussion of key
concepts involved in the subsequent discussion. In this context, it may be noted that such
discussion pertains to the conceptual framework of value proposition and customer value in the
context of supermarket products as the essence of the research revolves around the study of value
offered by the supermarkets only. In the subsequent sections of the study, the researcher
evaluates that the value provided by the Aldi targets primarily people in their changing demands,
testes and preferences horizon.
It has been observed that people in the country are no longer running after premium services and
even ready to sacrifice quality, to a certain extent, against the price being offered. In other words,
the offering which is value for money is worth in the present context. Big supermarket brands
like Tesco, Sainsbury in the UK are facing similar challenges and issues with respect to the price
war and changing the landscape of customer focus. Aldi, on the contrary, has been successfully
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able to provide a moderately priced offering across all demographic profile and thereby enhance
its market share considerably.
The comparison has also been drawn in the Australian market with Lidl which is providing
similar value proposition in the market and therefore, running quite successfully, however, Aldi
may seem to have a competitive advantage over Lidl in terms of quality and brand value and
hence, the business has been fairly sustainable.
However, the research also shows that the brand has been failing to appeal premium and niche
customer as they are focussing more on discounted offerings. This approach may lead to a
product stagnancy in the market in future and hence, it has been recommended to widen the
product line and also value engineering the operations to accommodate the quality perspective
within the business strategy where the premium customers may also get a proper fit.
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Table of Contents
1.0 Introduction................................................................................................................................5
1.1 Background to Task...............................................................................................................5
1.2 Purpose of the Report.............................................................................................................5
1.3 Format of Report....................................................................................................................6
2.0 Overview of Customer Value....................................................................................................6
3.0 Overview of Value Proposition.................................................................................................8
4.0 Importance of Value Proposition to a Firm’s Financial Success...............................................9
5.0 Value Proposition in UK Supermarkets..................................................................................10
6.0 Value Proposition of Aldi........................................................................................................12
7.0 Customer Segment at Aldi and Its Value Proposition Requirement.......................................12
8.0 Communication of Value Proposition by the Website of Aldi................................................14
9.0 Recommendations....................................................................................................................15
10.0 Conclusion.............................................................................................................................15
References......................................................................................................................................16
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