Project Proposal: Aldi Express Franchisee Stores in Australia

This project proposal outlines the establishment of 50 Aldi Express franchise stores across Sydney, Melbourne, and Brisbane to capitalize on the demand for convenient and accessible Aldi products. The executive summary highlights the project's aim to increase sales by 30% within two years by focusing on convenience, product range, and value. The proposal includes a detailed justification for the project, examining Aldi's current market position and the competitive landscape against Coles, Woolworths, and 7-Eleven. The preliminary implementation plan covers the project's scope, deliverables, constraints, and assumptions, supported by a schedule, Gantt chart, milestone report, and cost estimates. A franchising model is adopted to facilitate rapid expansion, and financial projections are presented, including initial setup costs and investment breakdowns. The report also addresses risk management, quality management, and communication plans, providing a comprehensive overview of the project's strategic and operational aspects, including HR, and resource management. The project aims to modernize the pre-established supermarket into a 24*7 convenient express store, determining the cost, requirements and other managerial plans will be another aspect of this report.

Project imple
1.Executive Summary
Originally from Germany, Aldi is a supermarket chain, which has over 460 stores across Australia. Aldi has
been very successful around the world and gains almost 10% share in the supermarket and grocery market for
NSW/ACT, Queensland and Victorian stores. Aldi proves to be very successful in the grocery market while
having a fierce competition with Coles and Woolworth especially for Aldi’s low prices and high quality products.
The Focus of this report is to open 50 new Aldi Express Franchisee stores in 3 Australian cities, Sydney,
Melbourne & Brisbane. In spite of having a high demand for Aldi products customers feel the stores’ reach is
less convenient to them. After understanding the customer’s behavior and their needs, this project aims to
increase the sales of Aldi by atleast 30% in next 2 years. This project studies 3 basic prospects of
Convenience, Product and Value and has made its future plans accordingly. Upon addressing the issue that it
has more demand but less convenience, background research on Aldi was necessary to determine if the
project was not already taking place but it has no plans to open express stores.
According to IBISWorld, Aldi’s strong growth has made two industry giants Coles and Woolworths to cut down
prices and expand their product range (Mudditt, 2017).
This report addresses the justification of the project proposal, the justification of the demand for Aldi express as
well as several reasons how Aldi express will give a complex competition to 7eleven, Coles and Woolworths.
This project will include the scope; the objectives and deliverables, non-goals/exclusions, the constraints and
some assumptions will also be covered in this report.
With a plan to modernize the pre-established supermarket into a 24*7 convenient express store, determining
the cost, requirements and other managerial plans will be another aspect of this report. These will be
supported by use of a Gantt chart, an activity list, a resource requirement and resource schedule, cost
estimates, a quality management plan HR plan, stakeholders and communication management plan, a control
and monitoring system and a risk management plan.
Since the initial cost of investment would have been very high if Aldi planned to open its own 50 stores in
Sydney, Melbourne and Brisbane, it will open its Franchisee stores in these cities and will have certain
requirement for these franchisee owners and eventually make money from royalty other than a certain percent
of share in the sales.
2.Project Proposal
2.1ABOUT THE ORGANIZATION
Aldi is a chain of discount grocery store, which operates in 17 countries. Aldi mainly handles its businesses under 2 main
divisions which are Aldi Sud and Aldi Nord and Sud’s main operations are in Western and Southern Germany with
international operations in Ireland, Austria, Hungary, the US, Switzerland, the UK, Australia, and Slovenia. Nord’s main
operations are based in Northern and Eastern Germany with international operations in Denmark, France, Spain, the
Netherlands, Belgium, Luxembourg, Portugal and Poland Within Australia Aldi operates 360 stores which are all located
in the following states WA, NSW, ACT, VIC, QLD and SA. Aldi’ revenue was $5.8 billion dollars in December 2014 and has
increased by $1 billion since then each year (Chung, 2017). There has been a spurting rise in the Australian food industry
and according to its revenue; it was $113 billion in 2014 with an average growth rate of 4.5%, which contributed $79.9
billion to supermarket industry (Marketline, 2016). According to Market Line’s food retail industry report, the leading

companies in the supermarket segment other than ALDI have started lessening the price of their products if they are
placed near ALDI store, which includes two grocery giants Coles and Woolworths.
2.2PROJECT INTRODUCTION & JUSTIFICATION
This project aims at opening new 50 Aldi Express convenient stores in Victoria. These convenient stores will sell basic
pharmaceutical items considering the pharmacies are usually closed during the night in Victoria. Based on the
information accessed, we believe that Aldi has a huge scope of expansion in the Victoria market considering there is lack
of convenient stores (no competition to 7eleven, is also expensive) and the supermarkets present have higher prices
than Aldi. The main elements that we will work upon Aldi in this project will be expansion of brand by opening new
express 24*7 stores keeping in mind it will be more reachable and convenient to customers than it presently is. Second,
the project will focus on increasing the product range keeping in mind the quality perspective of the brand. Third,
increase the market share of the company by almost 30% than its present market share.
The demand for Aldi products in Victoria will be relatively high due to the presence of value focused and quality focused
customers, specially after new express stores open which will make the customers easily accessible to basic items as well
as basic medicines that could be needed by a customer at any time. The Facebook page of Aldi clearly shows how
awaited are customers to have new stores of Aldi due to lack of Aldi stores at present.
The demand for more stores of Aldi in Victoria is clearly due to high customer demand. Comparing Aldi with Coles and
Woolworths, Aldi is just 16 year old to Australia whereas Coles and Woolworths are around 100 years old to this market.
The following table outlines the share of supermarkets in Australian market, which clearly shows the overtaken share of
Aldi in such a short span of 16 years (compared to Coles & Woolworths):
Supermarket Share
Coles 33.2%
Woolworths 35.7%
Aldi 13.2%
IGA 9.3%
Other Supermarkets 8.6%
Source: Roy Morgan Single source Australia (RoyMorgan Research, 2017)
The customers’ demand for Aldi is high because of its relative low prices as compared to the supermarkets and
convenient stores (7eleven).
For example, a 850 g loaf of Bakers Life Bakehouse Mixed Grain Bread in Aldi is $2.29 compared to a similar loaf of
Helga’s 850g Mixed Grain Bread at 3.50 in both Coles and Woolworths. A customer saves $1.21 in Aldi only by
purchasing a load of bread. Hence in a period of 52 weeks, by buying a loaf of bread from Coles and Woolworths will
cost you $182 while it would cost only 119.08 if you buy it from Aldi. This would save you $62.92 per year only from a
loaf of bread.

Aldi express stores would also provide numerous products at any time of the day or night. Statements in favor of the
idea although were few, but strong:
 Lack of Convenient Stores in Victoria (only 7 eleven – but very high prices)
 Pharmacies are usually closed at the nighttime.
 The products delivered will be of high quality
 The products delivered will be of relatively low price.
Opening 50 stores we considered will be a huge initial investment for the company and hence it will be given out to
private owners for Franchisee.
3.Preliminary Implementation Plan
3.1SCOPE
The scope of the project consists of establishing ‘Aldi Express’ stores across Melbourne, Canberra and Sydney,
initially, and later-on expanding across the country. This is primarily being done to compete with 711 stores
which are open round-the-clock. An additional pharmacy section is also being added to cater to the needs of
those requiring medicines during the night. To hasten the roll-out, a franchising model has been adopted
which will help implement the format rapidly.
The scope does not include
 going into the supermarket sector
 opening stores on our own
 targeting non-urban areas of Victoria, NSW and ACT, as of now at least
3.2DELIVERABLES

S.NO. MAJOR DELIVERABLE DESCRIPTION
01.
Schedule management plan It provides everyone involved in the project with a list of
tasks to be completed and a specific timeline to be
followed
02.
Resource management plan It provides information as to what assets are present and
at what stage are they required during the course of
completing the project
03.
Cost management plan and
estimate
It provides details of the cost estimates required for the
completion of the project, and, also gives a plan to
manage the expenses
04.
HR plan It provides details of the personnel hired by the company
to roll-out the project
05.
Communication plan It provides details as to how to go about communicating
information about the project to the various stakeholders
06.
Risk management plan It provides details of the various risks that might impact
the outcome of the project. It also gives a plan to mitigate
the risks
07.
Quality management plan It provides a standard of the quality to be expected from
the final outcome of the project
08.
Project implementation plan It provides details of the steps that need to be taken to
implement the project from start to finish
3.3CONSTRAINTS

S.NO. DIMENSION CONSTRAINT (Limits) DRIVER (State Objective)
01. Operating Cost 100,000 AUD
02. Time to become
operational
65 days
03. Personnel No constraints.
04. Locations Residential areas
Commercial areas
3.4ASSUMPTIONS
S.NO. ASSUMPTION
01. All laws complied with
02. Balance sheet of Aldi not available hence all data has been assumed
03. Customers would want convenience store items at a cheaper price
04. Customers want medicines in the middle of the night but all stores which
sell medicines are closed
4.Schedule
The activities carried out throughout the project are as follows:
WBS Task Name
0 Development of 50 Aldi Express convenient stores in Victoria
1 Project Initialization
1.1 Project Requirement Analysis
1.2 Tender Document Submission
1.3 Tender Approval
1.4 Communication plan
2 Resource Accumulation and Risk Management
2.1 Development of HR Plan

2.2 Project Team Build up
2.3 Material Resources are Accumulated
2.4 Resource management plan
2.5 Analysis of project requirements
2.6 Quality estimation is developed
2.7 Quality management plan
2.8 Analysis of risk factors
2.9 Risk management plan
3 Project Planning
3.1 Selection of Plan methodology
3.2 Schedule management plan
3.3 Cost estimation and resource allocation
3.4 Cost management plan and estimate
3.5 Approval of Project Plan
3.6 Project implementation plan
4 Aldi Stores Development
4.1 Selection of the locations in Victoria
4.2 Employing Contractor for stores
4.3 Site Leveling
4.4 Furniture and fixtures
4.5 Transportation of raw materials
4.6 Wall development
4.7 Cementing and Laying bricks
4.8 Painting of the interior walls
4.9 Final Interior works
4.10 External Cementing and painting
4.11 Boards and Holdings are put
4.12 Health and safety methods are implied
4.13 Government Approval
5 Project is closed
Fig 2.0:- Displays the various tasks involved during the course of the project.
5. Gantt chart

ID Task
Mode
WBS Task Name Duration Start Finish Predecessors
0 0 Development of 50 Aldi Express convenient stores in Victoria96 days Fri 4/28/17 Fri 9/8/17
1 1 Project Initialization 10 days Fri 4/28/17 Thu 5/11/17
2 1.1 Project Requirement Analysis 3 days Fri 4/28/17 Tue 5/2/17
3 1.2 Tender Document Submission 2 days Wed 5/3/17 Thu 5/4/17 2
4 1.3 Tender Approval 1 day Fri 5/5/17 Fri 5/5/17 3
5 1.4 Communication plan 4 days Mon 5/8/17 Thu 5/11/17 4
6 2 Resource Accumulation and Risk Management 25 days Fri 5/12/17 Thu 6/15/17
7 2.1 Development of HR Plan 2 days Fri 5/12/17 Mon 5/15/17 5
8 2.2 Project Team Build up 4 days Tue 5/16/17 Fri 5/19/17 7
9 2.3 Material Resources are Accumulated 3 days Mon 5/22/17 Wed 5/24/17 8
10 2.4 Resource management plan 3 days Thu 5/25/17 Mon 5/29/17 9
11 2.5 Analysis of project requirements 4 days Tue 5/30/17 Fri 6/2/17 10
12 2.6 Quality estimation is developed 2 days Mon 6/5/17 Tue 6/6/17 11
13 2.7 Quality management plan 2 days Wed 6/7/17 Thu 6/8/17 12
14 2.8 Analysis of risk factors 3 days Fri 6/9/17 Tue 6/13/17 13
15 2.9 Risk management plan 2 days Wed 6/14/17 Thu 6/15/17 14
16 3 Project Planning 13 days Fri 6/16/17 Tue 7/4/17
17 3.1 Selection of Plan methodology 2 days Fri 6/16/17 Mon 6/19/17 15
18 3.2 Schedule management plan 3 days Tue 6/20/17 Thu 6/22/17 17
19 3.3 Cost estimation and resource allocation 3 days Fri 6/23/17 Tue 6/27/17 18
20 3.4 Cost management plan and estimate 2 days Wed 6/28/17 Thu 6/29/17 19
21 3.5 Approval of Project Plan 1 day Fri 6/30/17 Fri 6/30/17 20
22 3.6 Project implementation plan 2 days Mon 7/3/17 Tue 7/4/17 21
23 4 Aldi Stores Development 48 days Wed 7/5/17 Fri 9/8/17
24 4.1 Selection of the locations in Victoria 4 days Wed 7/5/17 Mon 7/10/17 22
25 4.2 Employing Contractor for stores 2 days Tue 7/11/17 Wed 7/12/17 24
26 4.3 Site Leveling 5 days Thu 7/13/17 Wed 7/19/17 25
27 4.4 Furniture and fixtures 4 days Thu 7/20/17 Tue 7/25/17 26
28 4.5 Transportation of raw materials 3 days Wed 7/26/17 Fri 7/28/17 27
29 4.6 Wall development 6 days Mon 8/7/17 Mon 8/14/17 30
30 4.7 Cementing and Laying bricks 5 days Mon 7/31/17 Fri 8/4/17 28
31 4.8 Painting of the interior walls 3 days Tue 8/15/17 Thu 8/17/17 29
32 4.9 Final Interior works 4 days Fri 8/18/17 Wed 8/23/17 31
33 4.10 External Cementing and painting 5 days Thu 8/24/17 Wed 8/30/17 32
34 4.11 Boards and Holdings are put 2 days Thu 8/31/17 Fri 9/1/17 33
35 4.12 Health and safety methods are implied 3 days Mon 9/4/17 Wed 9/6/17 34
36 4.13 Government Approval 2 days Thu 9/7/17 Fri 9/8/17 35
37 5 Project is closed 0 days Fri 9/8/17 Fri 9/8/17 36 9/8
S M T W T F S S M
Apr 9, '17 May 28, '17 Jul 16, '17 Sep 3, '17
Fig 3.0:- Displays the Gantt chart extracted from MS Project
Observation: The project shall start by 28th of April, 2017 and is expected to end by 8th of
September, 2017.
6.MILESTONE REPORT
WBS Task Name Duration Start Finish
0 Development of 50 Aldi Express convenient
stores in Victoria 96 days Fri 4/28/17 Fri 9/8/17
1 Project Initialization 10 days Fri 4/28/17 Thu 5/11/17
2 Resource Accumulation and Risk
Management 25 days Fri 5/12/17 Thu 6/15/17
3 Project Planning 13 days Fri 6/16/17 Tue 7/4/17
4 Aldi Stores Development 48 days Wed
7/5/17 Fri 9/8/17
5 Project is closed 0 days Fri 9/8/17 Fri 9/8/17
Fig 4.0:- Displays the Milestone report generated from the MS Project

7.PROJECT STATISTICS
0 - Development of 50 Aldi
Express convenient
stores in Victoria
1 - Project Initialization 1.1 - Project Requirement
Analysis
1.2 - Tender Document
Submission
1.3 - Tender Approval 1.4 - Communication plan
2 - Resource Accumulation
and Risk Management 2.1 - Development of HR Plan 2.2 - Project Team Build up 2.3 - Material Resources are
Accumulated
2.4 - Resource management
plan
2.5 - Analysis of project
requirements
2.6 - Quality estimation is
developed
2.7 - Quality management
plan
2.8 - Analysis of risk factors 2.9 - Risk management plan
3 - Project Planning 3.1 - Selection of Plan
methodology
3.2 - Schedule management
plan
3.3 - Cost estimation and
resource allocation
3.4 - Cost management plan
and estimate
3.5 - Approval of Project Plan 3.6 - Project implementation
plan
4 - Aldi Stores
Development 4.1 - Selection of the
locations in Victoria
4.2 - Employing Contractor
for stores
4.3 - Site Leveling 4.4 - Furniture and fixtures 4.5 - Transportation of raw
materials
4.6 - Wall development 4.7 - Cementing and Laying
bricks
4.8 - Painting of the interior
walls
4.9 - Final Interior works 4.10 - External Cementing and
painting
4.11 - Boards and Holdings
are put
4.12 - Health and safety
methods are implied
4.13 - Government Approval
5 - Project is closed
Fig 5.0:- Displays the network diagram, including the critical path (Highlighted tasks)
8.COST ESTIMATE
The costs projected in this report has been presented taking into consideration the costs estimate of a single ALDI
Express store. The estimated costs may be subject to a 25% increase or decrease. All the costs estimated in this report
are in terms of Australian Dollar (AUD).
The total initial setup cost estimate for the ALDI Express project (single store) is projected to be AUD 100,000. Taking
into consideration the total cost of the project, the budget allocated by Aldi for each store is a mere $40,000. However,
Aldi aims at covering the remaining costs through the investments that are received through the franchisee’s in the form
of franchisee investment. Franchisee investment involves components such as Franchisee fee, Goodwill Fee, Application
fee and Initial stock fees and Training Fees.

Fig 2: Investment breakdown
Source: Author
The total cost for a Aldi Store consists of two main components which are - Human Resource costs and the Equipment
and Miscellaneous costs.
Human Resource costs refer to the entire workforce that is involved in contributing towards the successful initiation of
the store. The equipment costs include the cost for purchasing all the equipment that would be needed in the store such
as air conditioners, computers, microwave, billing machine, refrigerator, and other furniture.
Miscellaneous costs consist of aspects such as transportation costs, taxes and other utility costs.
Fig 2: Cost Distribution
Source: Author
The total estimated cost for Human Resouurces that would be incurred in this project with respect to a single store is
$53,425. There are various components taken into account with respect to the contribution of human resources in every
phase of the project.
Fig 3: Listed cost details of HR
Source: Author
Fig 4: Bar graph representation of HR costs
Source: Author

The costs incurred for equipment and miscellaneous expenses amount to a total of $45,575. There are three main
aspects that constitute of this component. The equipment cost being the largest aspect, followed by utilities and
transportation costs.
Fig 5: Equipment & Miscellaneous Fig 6: Equipment & Miscellaneous cost distribution.
costs breakdown. Source: Author
8.1Resource Cost Overview
Admin Staff $10,500.
00
Analyst $8,250.0
0
Manageme
nt
$1,500.0
0
Project
Manager
$5,500.0
0
Quality
Analyst
$675.00
Store set
team
$12,000.
00
Supply
chain
$8,000.0
0
Trainers $7,000.0
0
Total $53,425.
00
Equipments $27,575.
00
Transportat
ion
$8,000.0
0
Utilities $10,000.
00
Total $45,575.
00
Complete
Total
$99,000.
00

8.1.2Budget Summary
Initial Set Up 100000
Budget for each store is 40000
number of stores are 50
Total budget 2000000
Estimated cost for Human Resources for each store 53425
Total 2671250
8.1.3 Resource Management Plan
The resource management plan includes the distributed use of the resources over the project life timeline as shown in
the diagram below,

ID Resource Name Work
1 Analyst 56 hrs
Project Requirement Analysis 24 hrs
Analysis of project requirements 32 hrs
2 Documeneter 16 hrs
Tender Document Submission 16 hrs
3 Project Manager 48 hrs
Tender Approval 8 hrs
Communication plan 32 hrs
Approval of Project Plan 8 hrs
Project is closed 0 hrs
4 HR manager 64 hrs
Development of HR Plan 16 hrs
Project Team Build up 32 hrs
Employing Contractor for stores 16 hrs
5 Budgeter 88 hrs
Material Resources are Accumulated 24 hrs
Resource management plan 24 hrs
Cost estimation and resource allocation 24 hrs
Cost management plan and estimate 16 hrs
6 Quality Head 32 hrs
Quality estimation is developed 16 hrs
Quality management plan 16 hrs
7 Risk Analyst 40 hrs
Analysis of risk factors 24 hrs
Risk management plan 16 hrs
8 Planner 56 hrs
Selection of Plan methodology 16 hrs
Schedule management plan 24 hrs
Project implementation plan 16 hrs
9 Client 32 hrs
Selection of the locations in Victoria 32 hrs
10 Worker 160 hrs
Furniture and fixtures 32 hrs
Wall development 48 hrs
Cementing and Laying bricks 40 hrs
External Cementing and painting 40 hrs
11 Transporter 24 hrs
Transportation of raw materials 24 hrs
12 Contractor 136 hrs
Site Leveling 40 hrs
Painting of the interior walls 24 hrs
Final Interior works 32 hrs
Boards and Holdings are put 16 hrs
Health and safety methods are implied 24 hrs
13 Government 16 hrs
Government Approval 16 hrs
Details
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T F S S M T W T F S S M T W
Feb 26, '17 Apr 2, '17 May 7, '17 Jun 11, '17 Jul 16, '17 Aug 20, '17 Sep 24, '17
24h 32h
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9.QUALITY MANAGEMENT PLAN
The process of satisfying the needs of the project or the undertaken endeavor is termed as ‘Quality Management’. It
includes the management functions that decide quality policies, measures, tasks and responsibilities that lead to control,
assurance and improvement.
When we talk about Quality Control it simply refers to the project results and whether they comply with equivalent
project’s quality standards by removing demerits or unwanted policies. Whereas, Quality Planning focuses on identifying
the essential quality standards and finding ways to find to implement them. Quality Assurance will be an important
process of the Aldi Express project which will take control of the overall project’s performance on a regular basis and will
provide feedback whether the standards are met or not.
All the products and services offered by the company will be of higher quality and lower price. The Aldi express products
will be priced at lower rates but the company will make sure it doesn’t hamper the quality of the products. This will
eventually increase the customer base for Aldi specially when there are more stores in the city and are easily accessible