Business Decision Making: Aldi Supermarket Primary and Secondary Data

This report provides a comprehensive analysis of Aldi's business decision-making process. It begins with an introduction to business decision-making and its significance, followed by an in-depth examination of primary data collected from 20 Aldi customers. The primary data analysis explores customer awareness, demographics (age, gender, education), spending habits, income levels, frequency of purchases, and opinions on discounts, product ranges, and online platforms. The report then transitions to secondary data analysis, discussing Aldi's market position, competitor analysis (Sainsbury's, M&S, Next, T.K. Maxx), and financial performance, including share prices. The report concludes with recommendations and a conclusion based on the findings, supported by references and an appendix containing data visualizations and survey results.

BUSINESS
DECISION MAKING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1: PRIMARY DATA COLLECTION AND ANALYSIS...................................................1
TASK 2 Secondary data collection and analysis ..........................................................................14
Gross profit margin and operating profit margin of companies operating in market. ..............15
RECOMMENDATION & CONCLUSION .................................................................................17
REFERENCES..............................................................................................................................19
APPENDIX....................................................................................................................................20

INTRODUCTION
Business decision-making is an effective process which is significant in analysing the
necessary and relevant set of information in order to take decision and attain common goals and
objectives. This study will highlight on the primary and secondary data collection and analysis.
Aldi is considered to be as a discount supermarket chain which was founded in the year 1946 by
Karl and Theo Albrecht.
TASK 1: PRIMARY DATA COLLECTION AND ANALYSIS
Theme 1: Yes, maximum number of participants are aware about the company Aldi.
PARTICULARS NUMBER OF
PARTICIPANTS
% OF PARTICIPANTS
Yes 14 70.00%
No 4 20.00%
Maybe 2 10.00%
TOTAL 20 100.00%
Yes No Maybe
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
70.00%
20.00%
10.00%
% OF PARTICIPANTS
Interpretation: From the above carried out research from 20 customers of the Aldi
1

company. Among which, 70.00% sought to establish the fact that, Aldi is considered to be as a
discount supermarket chain. Most of the participants know about the brand as it has stores in
across 20 countries.
Theme 2: Maximum number of participants belong to the age group of 18 to 30 years.
PARTICULARS NUMBER OF
PARTICIPANTS
% OF PARTICIPANTS
18 to 30 years 8 40.00%
30 to 45 years 6 30.00%
45 to 55 years 4 20.00%
More than 55 years 2 10.00%
TOTAL 20 100.00%
40.00%
30.00%
20.00%
10.00%
18 to 30 years
30 to 45 years
45 to 55 years
More than 55 years
Interpretation: From the above carried out research from 20 customers of the Aldi
company. Among which, 40.00% sought to establish the fact that, participants who belong to the
age group of 18 to 30 years are more active in participating in research and have significant
degree of knowledge to attain objectives related with Asda study.
2

Theme 3: Maximum number of participants are female.
PARTICULARS NUMBER OF
PARTICIPANTS
% OF PARTICIPANTS
Male 7 35.00%
Female 10 50.00%
Bisexual 3 15.00%
TOTAL 20 100.00%
Male Female Bisexual
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0.5
35.00%
50.00%
15.00%
% OF PARTICIPANTS
Interpretation: From the above carried out research from 20 customers of the Aldi
company. Among which, 50.00% of the people are female participants who are more likely to
make purchases from the Aldi supermarket.
Theme 4: Maximum number of participants have completed Post graduation as educational
qualification.
PARTICULARS NUMBER OF
PARTICIPANTS
% OF PARTICIPANTS
Higher education 3 15.00%
3

Graduation 7 35.00%
Post graduation 10 50.00%
TOTAL 20 100.00%
15.00%
35.00%
50.00% Higher education
Graduation
Post graduation
Interpretation: From the above carried out research from 20 customers of the Aldi
company. Among which, 50.00% of participants have post graduation as educational
qualification. They have complete knowledge about the market and helps in taking independent
decision on the services offered by the company and its competitors.
Theme 5: Maximum number of participants spend £500 to £700 on the products of Aldi
annually.
PARTICULARS NUMBER OF
PARTICIPANTS
% OF PARTICIPANTS
£100 to £300 2 10.00%
£300 to £500 5 25.00%
£500 to £700 9 45.00%
4

More than £700 4 20.00%
TOTAL 20 100.00%
Interpretation: From the above carried out research from 20 customers of the Aldi
company. Among which, 45.00% participants spend £500 to £700 on the products of Aldi
annually. This helps in gaining wide set of product range to maintain personal status of an
individual and meet their needs and requirements.
Theme 6: The income level of the maximum participants is within the range of £1200 to £1500
every month.
PARTICULARS NUMBER OF
PARTICIPANTS
% OF PARTICIPANTS
£500 to £800 3 15.00%
£800 to £1200 5 25.00%
£1200 to £1500 8 40.00%
More than £1500 4 20.00%
TOTAL 20 100.00%
5

Interpretation: From the above carried out research from 20 customers of the Aldi
company. Among which 40.00% sought to establish the fact that, their income level per month
is within the range of £1200 to £1500. This way it is useful in maintaining standard of living.
Theme 7: Maximum number of participants make purchase from Aldi company often.
PARTICULARS NUMBER OF
PARTICIPANTS
% OF PARTICIPANTS
Often 12 60.00%
Less often 2 10.00%
More often 6 30.00%
TOTAL 20 100.00%
6

Often Less often More often
0
0.1
0.2
0.3
0.4
0.5
0.6
60.00%
10.00%
30.00%
% OF PARTICIPANTS
Interpretation: From the above carried out research from 20 customers of the Aldi
company. Among which, 60.00% sought to establish the fact that, they make purchase from the
Aldi company more often because it is the most trusted brand and it encourages the loyalty of the
customers. This encourages the customers to purchase more.
Theme 8: Highly agreed, heavy discount rates attract more customers from across the UK.
PARTICULARS NUMBER OF
PARTICIPANTS
% OF PARTICIPANTS
Agreed 4 20.00%
Highly agreed 11 55.00%
Disagreed 2 10.00%
Highly disagreed 1 5.00%
Neutral 2 10.00%
TOTAL 20 100.00%
7

20.00%
55.00%
10.00%
5.00%
10.00%
Agreed
Highly agreed
Disagreed
Highly disagreed
Neutral
Interpretation: From the above carried out research from 20 customers of the Aldi
company. Among which, 75% (20% + 55%) sought to establish the fact that, heavy discount
rates is useful in attracting the large number of customers from across UK because it motivates
them to do bulk shopping at a comparatively lower price. It helps in attracting large number of
customers and results in increase in sales and profitability.
Theme 9: Luxury goods at reasonable price is the key reason customers get attracted towards
the discount supermarkets.
PARTICULARS NUMBER OF
PARTICIPANTS
% OF PARTICIPANTS
Heavy discounted products 6 30.00%
Luxury goods at reasonable
price
9 45.00%
Bulk shopping 5 25.00%
TOTAL 20 100.00%
8

30.00%
45.00%
25.00%
Heavy discounted products
Luxury goods at reasonable
price
Bulk shopping
Interpretation: From the above carried out research from 20 customers of the Aldi
company. Among which, 45.00% sought to establish the fact that, customers are getting luxury
goods at a highly reasonable price. This helps the customers in saving huge amount on the
products by attracting them towards a supermarket. It also helps in increasing the customer base
and leads to higher success for the company.
Theme 10: Highly agreed, strong Christmas sales tends to attribute towards greater demand
and sales of the premium range.
PARTICULARS NUMBER OF
PARTICIPANTS
% OF PARTICIPANTS
Agreed 2 10.00%
Highly agreed 12 60.00%
Disagreed 3 15.00%
Highly disagreed 1 5.00%
Neutral 2 10.00%
TOTAL 20 100.00%
9

10.00%
60.00%
15.00%
5.00%
10.00%
Agreed
Highly agreed
Disagreed
Highly disagreed
Neutral
Interpretation: From the above carried out research from 20 customers of the Aldi
company. Among which, 70% (10% + 60%) sought to establish the fact that, products
discounted for up to 50% has resulted in strong Christmas sales and they attribute customers
towards greater degree of sales and profitability of the company.
Theme 11: Yes, offering ideal product ranges in a value orientated way helps in creating
supermarket brand.
PARTICULARS NUMBER OF
PARTICIPANTS
% OF PARTICIPANTS
Yes 14 70.00%
No 5 25.00%
Maybe 1 5.00%
TOTAL 20 100.00%
10

Yes No Maybe
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
70.00%
25.00%
5.00%
% OF PARTICIPANTS
Interpretation: From the above carried out research from 20 customers of the Aldi
company. Among which, 70.00% sought to establish the fact that, the Aldi focuses on offering
ideal range of products and are highly value oriented. This way it is useful in creating
supermarket brand. Aldi focuses on delivering quality range of products at a valuable price.
Theme 12: Household essentials is the most loved product range of the Aldi Company.
PARTICULARS NUMBER OF
PARTICIPANTS
% OF PARTICIPANTS
Grocery 7 35.00%
Household essentials 8 40.00%
Clothes and accessories 5 25.00%
TOTAL 20 100.00%
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35.00%
40.00%
25.00%
Grocery
Household essentials
Clothes and accessories
Interpretation: From the above carried out research from 20 customers of the Aldi
company. Among which, 40.00% sought to establish the fact that, the house hold essentials is the
product range which has been offered by the company. 35% said that, grocery is also another
product range which is in high demand for the Aldi company.
Theme 13: Highly agreed, online platforms helps in increasing the online sales of the
company.
PARTICULARS NUMBER OF
PARTICIPANTS
% OF PARTICIPANTS
Agreed 5 25.00%
Highly agreed 9 45.00%
Disagreed 2 10.00%
Highly disagreed 3 15.00%
Neutral 1 5.00%
TOTAL 20 100.00%
12

25.00%
45.00%
10.00%
15.00%
5.00%
Agreed
Highly agreed
Disagreed
Highly disagreed
Neutral
Interpretation: From the above carried out research from 20 customers of the Aldi
company. Among which, 70% (25% + 45%) sought to establish the fact that, selling wide range
of products and services on the online platforms is useful in increasing the online sales and
profitability of the company. It helps in improving the customer experience as the goods can be
ordered within few clicks with a very easy process and is significantly delivered at their
doorstep.
Theme 14: Social media marketing and loyalty programs are the best way to attract customers
for supermarket.
PARTICULARS NUMBER OF
PARTICIPANTS
% OF PARTICIPANTS
Advertising 3 15.00%
Loyalty programs 6 30.00%
Social media marketing 6 30.00%
Providing the best customer
experience
5 25.00%
TOTAL 20 100.00%
13

15.00%
30.00%
30.00%
25.00%
Advertising
Loyalty programs
Social media marketing
Providing the best customer
experience
Interpretation: From the above carried out research from 20 customers of the Aldi
company. Among which, 60% (30.00%+ 30.00%) sought to establish the fact that, social media
marketing through Instagram, SEO, Facebook, twitter, etc. is significant in making people aware
about the range of products and discount offers which has been offered by the Aldi company.
Moreover, loyalty programs helps customer getting additional discount offers which is
significant in attracting customers to the supermarket.
Theme 15: Launching its own discount supermarket chain within the UK for Aldi helps in
increasing the performance and productivity.
Interpretation: From the above carried out research from 20 customers of the Aldi
company. Among which, maximum number of participants sought to establish the fact that, Aldi
launching the family owned discount supermarket chain within the UK helps in improving their
position within the market when compared with the key competitors like Asda, Sainsbury.
Offering valuable goods at discounted price increases the performance and productivity.
14

TASK 2 Secondary data collection and analysis
Aldi is supermarket providing goods at 50% discount in comparison with the
competitors. The supermarket group has reported record sales at the Christmas period and has
opened many of the stores and the attracted shoppers cut price luxuries. The chain is expanding
rapidly in United Kingdom after financial crisis. Company has increased the growth rate 15%.
Due to this many of the rivalry firms are facing the issues.
Competitor Analysis
Major competition is faced by the company from big concerns that are Sainsbury, Marks
& Spencer, Next plc and the T.K. Maxx. There is strong competition between the companies.
Other competitors are required to frame strategies related to increase their revenues and profit
levels. Below table shows the prices of the share of last four years.
2017 2018 2019 2020
Aldi 255 230 248 202
Sainsbury 276.6 254.75 217.18 193.75
M&S 317.92 230 200 96
Next Plc 4308 5319 4023 4412
T.K. Maxx 38.04 41.72 54.11 51.07
Market share of the Aldi has been 5.6% where of Sainsbury is 16.6%. M&S has been
covering significant share. Due to the decrease in profit margins the share prices show
considerable decline. The current scenario shows decline in all the market shares and the prices
due to this are showing considerable fluctuations. There has been a considerable change in the
15

share prices due to the economic changes and market influences. However performance of the
company is adequate and showing improvement in the shares. Share prices of the companies at
closing date of the financial year are taken to analyse the trend of the four years. Aldi is a big
supermarket that is providing different products or services. Share prices of companies shows
fluctuating trend over four years. Sainsbury shows a declining trend over the four years. Share
prices of the company has declined from 276.6 from 193.75 to 2020. Company is suffering
decline from the 2016. Share prices of the M& S shows that share prices of the company is
317.92 was 2017 that dropped to 96 in 2020. It is analysed that company is suffering critical
situation from years. Share prices of Next Plc are showing fluctuating trend over the four years
(Kimmel, Weygandt and Kieso, 2018). They are currently trading at 4412 in 2020. It shows that
company is efficiently managing the resources for earning the profits at considerable level. T.K.
Maxx has shown significant growth in the share prices. It shows that company is earning profits
and achieving considerable growth for the business.
Gross profit margin and operating profit margin of companies operating in market.
Gross
profit
margin Aldi Sainsbury M&S Next Plc T.K. Maxx
2017 4.5% 6.23% 38.48% 33.84% 28.99%
2018 3.7% 6.61% 37.83% 33.44% 28.78%
2019 4.1% 7.89% 36.80% 38.52% 28.75%
2020 3.3% 7.91% 35.28% 39.43% 35.60%
16

Analysis and Interpretation
Gross profit margin of the Aldi is low as compared with other competitors. However this
could be evaluated that the gross profit margin of Aldi shows fluctuating trend. Company is
required to increase the profit levels by keeping extra control and monitor over the cost of sales
due to which the profits are declining. Gross margin is the amount left with the company to carry
out further operations for running the business.
It could be analysed that the competitors are showing constant growth level over the
four years. Gross profit margin shows that it has increased from 6.23% in 2017 from
7.91% to 2020. M&S shows that gross profit has decreased over the four years (Fernando
and Hermawan, 2019). On the other next plc is strong competitor of the market and shows
constant growth and has increased to 39.43%. T.K. Maxx is also a big company that shows
considerable growth over the period which shows business is achieving the targeted level.
Operating
Profit
margin Aldi Sainsbury M&S Next Plc T.K. Maxx
2017 3.3% 2.45% 2.38% 20.20% 11.30%
2018 2.4% 1.82% 1.46% 18.74% 10.73%
2019 2.6% 2.04% 2.87% 20.18% 10.93%
17

2020 1.8% 2.34% 2.50% 20.02% 10.61%
Analysis and Interpretation
As per the above evaluation it could be found that the operating profit margin of Aldi has
decreased from 3.3% in 2017 and 1.8% in 2020. This shows that the profits are declining of the
company and is required to take effective steps as it is decreasing the share prices of the
company. In comparison with competitors profit margins of company are considerably low.
Considerable steps are required to be taken as company may suffer losses if the profit goes
further down.
Operating profit margin of the Sainsbury is constant over the four years. It is showing
that M&S have operating profit margin of around 2.5 on average over the four years. Next plc
has maintained profit margin of around 20% on average over the years which is highest among
the competitors. T.K. Maxx shows profitability of 10% over the four years (Fabbrocino and
et.al., 2019). Profitability of the companies are not showing any fluctuation over the period of
four years.
This shows that the profit margins of the companies are showing considerable decline
over the four years. Profit margins of the Next are highest and shows highest profit margin.
Company also covers significant market share in the grocery market. It could be interpreted
18

effective strategies or restructuring of the business is required for increasing the profits as it
provides negative impact over the company and its performance.
RECOMMENDATION & CONCLUSION
The companies are strong competitor of each other in market. Both the companies are
having large market share and are also accepted by the customers. The recent economic
conditions of the country have dropped down the purchasing power of the competitors. This has
affected the revenues of company (Krishnan and Raghavan, 2020). The slowing economy is
affecting the share of the Aldi. The external factors are affecting the functioning, but is has
managed to keep its return stable over the years. It is essential for the business managers to
analyse the performance and position of the company as against its competitors so that effective
measures could be taken for increasing the profitability of company.
19

REFERENCES
Books and Journals
Kimmel, P.D., Weygandt, J.J. and Kieso, D.E., 2018. Financial accounting: Tools for business
decision making. John Wiley & Sons.
Fernando, K. and Hermawan, A.A., 2019, July. Relative and Incremental Value Relevance of
Accounting Information under the Integrated Reporting Approach: Evidence from South
Africa. In Asia Pacific Business and Economics Conference (APBEC 2018). Atlantis
Press.
Fabbrocino, F and et.al., 2019. Ductility-based incremental analysis of curved masonry
structures. Engineering Failure Analysis.97. pp.653-675.
Krishnan, S. and Raghavan, J., 2020. Incremental Analysis. In Chemical Rockets (pp. 251-293).
Springer, Cham.
20

APPENDIX
QUESTIONNAIRE
Name:
Age:
Gender:
1. Are you aware about the company Aldi?
 Yes
 No
 Maybe
2. What is your age group?
 18 to 30 years
 30 to 45 year
 45 to 55 years
 More than 55 years
3. What is your gender?
 Male
 Female
 Bisexual
4. What is your educational qualification?
 Higher education
 Graduation
 Post graduation
5. What is your average spending on the products of Aldi annually?
 £100 to £300
 £300 to £500
 £500 to £700
 More than £700
6. What are your income levels currently every month?
 £500 to £800
 £800 to £1200
 £1200 to £1500
 More than £1500
7. How often do you make purchase from Aldi company?
 Often
 Less often
 More often
8. Do you agree that, heavy discount rates attract more customers from across the UK?
 Agreed
 Highly agreed
 Disagreed
 Highly disagreed
 Neutral
9. Why are customers attracted towards the discount supermarkets?
 Heavy discounted products
21

 Luxury goods at reasonable price
 Bulk shopping
10. Do you agree that, strong Christmas sales tends to attribute towards greater demand and
sales of the premium range?
 Agreed
 Highly agreed
 Disagreed
 Highly disagreed
 Neutral
11. Do you think, offering ideal product ranges in a value orientated way helps in creating
supermarket brand?
 Yes
 No
 Maybe
12. According to you, what is the most loved product range of the Aldi company?
 Grocery
 Household essentials
 Clothes and accessories
13. Do you agree that, online platforms helps in increasing the online sales of the company?
 Agreed
 Highly agreed
 Disagreed
 Highly disagreed
 Neutral
14. According to you, what is the best way to attract customers for supermarket?
 Advertising
 Loyalty programs
 Social media marketing
 Providing best customer experience
15. Do you think, launching its own discount supermarket chain within the UK for Aldi helps in
increasing the performance and productivity?
Aldi UK 2017 2018 2019 2020
Revenues 7700 8700 10200 11300
Gross profit 349.7 324.5 417.3 370.2
Operating
pro
fit 3750.18 3848.4 4261.14 4426.5
Net Income 255.6 211.3 265.9 198
Sainsbury 2017 2018 2019 2020
22

Revenues 26224 28456 29007 28993
Gross profit 1634 1882 2288 2294
Operating
pro
fit 642 518 592 679
Net Income 377 309 186 152
Marks &
Sp
enc
er 2017 2018 2019 2020
Revenues 10622 10698 10377 10181.9
Gross profit 4087 4047.3 3819.1 3592.4
Operating
pro
fit 253.2 156.5 298.1 254.8
Net Income 117.1 25.7 41.7 23.7
Next Plc 2017 2018 2019 2020
Revenues 4097.3 4055.5 4167.4 4266.2
Gross profit 1386.6 1356.2 1605.2 1682
Operating
pro
fit 827.7 759.9 841.1 853.9
Net Income 635.3 591.8 599.1 610.2
T.K. Maxx 2017 2018 2019 2020
Revenues 33183.74 35864.66 38972.93 41716.98
Gross profit 9618.84 10321.51 11204.67 14852.28
Operating
pro
fit 3750.18 3848.4 4261.14 4426.5
Net Income 2298.23 2607.95 3059.8 3272.19
23

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