Business Research | Assessment | 1

Running head: BUSINESS RESEARCH
Business Research on 'Aldi vs Coles vs Woolworths: which is better for customers?'
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BUSINESS RESEARCHResearch problem
The Australian supermarket and grocery industry is dominated by 3 companies, Coles,
Woolworths and Aldi (Roy Morgan 2019). Woolworths Supermarkets chain is owned by the
Woolworths Group, established in 1924. It sells all types of consumer goods and fresh groceries
through more than 1000 stores across the country. Coles is the biggest rival of Woolworths,
established in 1914 and operates through more than 800 stores all over the country under the
Coles Group. Aldi, the German supermarket and grocery store chain is a comparatively new
player in the Australian market, established in 2001. Within this short span of time, Aldi has
been successful in capturing the 3rd position in the supermarkets and grocery industry of
Australia with more than 500 stores across Australia. The growing popularity of Aldi has been a
concern for the other two players and thus, this research proposal aims to make an exploratory
study to find out which of these 3 supermarkets is better for the customers.
As per the market research report by Roy Morgan, Woolworths Group has captured the
largest market share with 34% in 2018, which is an increase from 32.6% in 2017. Coles Group
holds the second position with 27.6% in 2018, which is a 1.6% fall from 29.2% in 2017. Aldi
holds a very less market share but still is in the 3rd position with 11.4% in 2018, which is a 0.5%
increase from 10.9% in 2017 (Roy Morgan 2019). Thus, from this report it is found that
Woolworths has been successful in gaining the preference from the customers especially in the
fresh food category, that is, fresh meat, deli, bread and fruit and vegetables, which helped it to
get the top position in the market.
Lane (2019) highlighted that low price of Aldi is one of the major reasons for its
popularity, which is putting its competitors under pressure. Providing quality products at a lower