2 About this Industry 2 Industry Definition 2 Main Activities 2 Similar Industries 2 Additional Resources 3 Industry at a Glance 4 Industry Performance 4 Executive Summary 4 Key External Drivers 5...

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2 About this Industry
2 Industry Definition
2 Main Activities
2 Similar Industries
2 Additional Resources
3 Industry at a Glance
4 Industry Performance
4 Executive Summary
4 Key External Drivers
5 Cu
ent Performance
7 Industry Outlook
10 Industry Life Cycle
12 Products and Markets
12 Supply Chain
12 Products and Services
14 Demand Determinants
15 Major Markets
16 International Trade
17 Business Locations
19 Competitive Landscape
19 Market Share Concentration
19 Key Success Factors
19 Cost Structure Benchmarks
21 Basis of Competition
21 Ba
iers to Entry
22 Industry Globalization
23 Major Companies
23 Woolworths Group Limited
24 Wesfarmers Limited
25 ALDI Stores Supermarkets Pty Ltd
26 Metcash Limited
27 Australian United Retailers Limited
27 Costco Wholesale Australia Pty Ltd
28 Operating Conditions
28 Capital Intensity
29 Technology and Systems
30 Revenue Volatility
30 Regulation and Policy
31 Industry Assistance
32 Key Statistics
32 Industry Data
32 Annual Change
32 Key Ratios
33 Jargon & Glossary
IBISWorld Industry Report G4111
Supermarkets and Grocery Stores
in Australia
October 2018 Tom Youl
Fresh faces: The imminent entry of AmazonFresh
will boost already fierce industry competition
www.ibisworld.com.au | XXXXXXXXXX | XXXXXXXXXX
This report was provided to
University of Western Australia (UWA)
y IBISWorld on 27 August 2019 in accordance with their licence agreement with IBISWorld
WWW.IBISWORLD.COM.AU Supermarkets and Grocery Stores in Australia October XXXXXXXXXX
Supermarkets and grocery stores retail a
ange of groceries and food products,
including fruit and vegetables,
ead,
cigarettes, canned goods, toiletries, dairy
goods, delicatessen items and cleaning
goods. Specialist retailers, niche retailers
and convenience stores are excluded
from the industry.
The primary activities of this industry are
Operating supermarkets
Operating grocery stores
Industry Definition
Main Activities
Similar Industries
Additional Resources
The major products and services in this industry are
Beverages
Bread and bakery products
Dry and packaged foods
Fresh fruit and vegetables
Meat products
Milk and other dairy products
Tobacco products
Toiletries, health products and general merchandise
About this Industry
G4121 Fresh Meat, Fish and Poultry Retailing in Australia
Operators in this industry specialise in retailing fresh meat, fish and poultry goods.
G4122 Fruit and Vegetable Retailing in Australia
Businesses in this industry primarily sell fruit and vegetable produce.
G4123 Liquor Retailing in Australia
Firms in this industry primarily sell liquor goods.
G4129 Bread and Cake Retailing in Australia
Companies in this industry primarily retail
ead and cake goods.
G4279a Tobacconists and Specialised Grocery Retailing in Australia
Establishments in this industry retail tobacco along with other specialised grocery items such as
confectionery and small goods.
G4112 Convenience Stores in Australia
Stores in this industry have a na
ower product range than supermarkets, but a wider range than milk bars.
For additional information on this industry
www.ausfoodnews.com.au
Australian Food News
www.mga.asn.au
MGA Independent Retailers
www.retailbiz.com.au
Retail Biz
Provided to: University of Western Australia (UWA) | 27 August 2019
WWW.IBISWORLD.COM.AU Supermarkets and Grocery Stores in Australia October XXXXXXXXXX
Market Share
Woolworths Group
Limited 37.5%
Wesfarmers
Limited 29.6%
ALDI Stores
Supermarkets Pty
Ltd 9.9%
Metcash Limited
7.3%
Key External Drivers
Real household
disposable income
Population
Consumer
sentiment index
Demand from cafes,
estaurants and
takeaway food services
Key Statistics
Snapshot
Industry at a Glance
Supermarkets and Grocery Stores in XXXXXXXXXX
Revenue
$103.4bn
Profit
$4.2bn
Wages
$10.9bn
Businesses
1,966
Annual Growth 19–24
2.0%
Annual Growth 14–19
2.1%
Industry Structure Life Cycle Stage Mature
Revenue Volatility Low
Capital Intensity Medium
Industry Assistance Low
Concentration Level High
Regulation Level Medium
Technology Change Medium
Ba
iers to Entry High
Industry Globalization Low
Competition Level High
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 32
%
c
ha
ng
e
4
-1
0
1
2
3
XXXXXXXXXX23Yea
Real household disposable income
SOURCE: WWW.IBISWORLD.COM.AU
%
c
ha
ng
e
8
-4
-2
0
2
4
6
XXXXXXXXXX23Yea
Revenue Employment
Revenue vs. employment growth
Establishments
31.5 %
NSW
2.6 %
TAS
30.4 %
VIC
1.6 %
ACT
1.4 %
NT
18.3 %
QLD
8.3 %
WA
5.9 %
SA
SOURCE: WWW.IBISWORLD.COM.AU
p. 23
p. 4
SOURCE: WWW.IBISWORLD.COM.AU
Provided to: University of Western Australia (UWA) | 27 August 2019
WWW.IBISWORLD.COM.AU Supermarkets and Grocery Stores in Australia October XXXXXXXXXX
Key External Drivers Real household disposable income
Trends in real household disposable
income affect the industry’s performance.
During periods of low or falling
disposable income, consumers are more
likely to focus on household necessities
and do without luxury products, such as
gourmet foods and deli items. However, a
Executive Summary The Supermarkets and Grocery Stores
industry is one of the most fiercely
competitive industries in Australia. The
apid expansion of ALDI over the past
five years has significantly altered the
industry’s operating landscape, with the
popularity of its low-cost private-label
products underpinning strong growth.
The rise of ALDI has forced the two
established industry giants, Woolworths
and Coles, to cut prices and expand their
private-label product ranges in response.
Smaller supermarket chains, such as
FoodWorks, have struggled to compete in
an increasingly price-intense industry.
Industry profit margins have fallen over
the past five years as players have
educed prices and accepted lower
margins to stay competitive. However,
the industry has still grown over the
period, with revenue expected to rise at
an annualised 2.1% over the five years
through XXXXXXXXXX, to $103.4 billion.
Industry revenue is anticipated to remain
stable in the cu
ent year.
The challenging retail environment has
put pressure on the industry’s largest
operators over the past five years.
Woolworths initially struggled to
compete on price against ALDI and
Coles, with the company losing market
share over the two years through 2015-
16. However, Woolworths heavily
invested in lowering grocery prices after
the sale of underperforming businesses
not included in the industry, and the
company has improved its performance
since then. Woolworths’ refocus on its
Australian Food division has put pressure
on Coles, slowing its revenue growth over
the past five years. ALDI’s expansion into
South Australia and Western Australia in
2016 has helped it to seize additional
market share over the past five years.
Industry competition is anticipated to
emain fierce over the next five years.
Coles and Woolworths will likely further
expand their private-label product ranges
to remain competitive, as discount
operators continue to influence consumer
pricing perceptions over the next five
years. In addition, online grocery sales
are anticipated to grow in importance
over the period, with the major players
expected to expand their online sales
offerings in response to the projected
a
ival of AmazonFresh. Industry
evenue is forecast to grow at an
annualised 2.0% over the five years
through XXXXXXXXXX, to $114.4 billion.
Industry Performance
Executive Summary | Key External Drivers | Cu
ent Performance
Industry Outlook | Life Cycle Stage
%
c
ha
ng
e
1.9
1.3
1.4
1.5
1.6
1.7
1.8
XXXXXXXXXX22Yea
Population
SOURCE: WWW.IBISWORLD.COM.AU
%
c
ha
ng
e
4
-1
0
1
2
3
XXXXXXXXXX23Yea
Real household disposable income
Provided to: University of Western Australia (UWA) | 27 August 2019
WWW.IBISWORLD.COM.AU Supermarkets and Grocery Stores in Australia October XXXXXXXXXX
Industry Performance
Cu
ent
Performance
The rapid growth of ALDI has
significantly altered the Supermarkets
and Grocery Stores industry’s operating
landscape over the past five years. The
price war between the industry’s two
largest companies, Woolworths and
Coles, has been exace
ated by the rise
of ALDI, causing grocery prices fall over
the period across the whole industry.
Despite lower prices, the staple nature
of many of the industry’s products has
supported strong demand for
supermarkets and grocery stores.
Industry revenue is expected to rise at
an annualised 2.1% over the five years
through XXXXXXXXXX, to $103.4 billion.
Revenue is anticipated to remain stable
in the cu
ent year.
As supermarkets have slashed prices to
emain competitive, industry profit
margins have fallen over the period. This
focus on pricing has gone against trends
in overseas supermarkets, which have
primarily competed through product
differentiation. However, the decision of
oth Woolworths and Coles to focus on
etaining market share has meant that
margins have suffered as a result.
Key External Drivers
continued
greater range of private-label products,
which are often cheaper than
anded
merchandise, has enabled consumers to
enjoy gourmet and discretionary items
without paying significantly more. Real
household disposable income is expected
to rise in XXXXXXXXXX, providing the industry
with an opportunity for growth.
Population
Population growth affects the number
and location of supermarkets and grocery
stores. In particular, the age distribution
of the population influences the type of
products stocked. Furthermore,
population growth typically increases the
demand for new housing. New residential
developments increase the amount of
consumer traffic at existing supermarket
locations and can create demand for new
stores. Australia’s population is expected
to increase in XXXXXXXXXX, expanding the
potential pool of supermarket and
grocery store customers and supporting
industry growth.
Consumer sentiment index
The consumer sentiment index measures
households’ perceptions about their
personal finances and the general
economy. When consumer sentiment
decreases, consumers are less likely to
purchase higher priced gourmet
groceries and premium products.
Conversely, industry revenue generally
eceives a boost when consumer
sentiment increases, as consumers
typically purchase higher priced goods
more often. The consumer sentiment
index is expected to rise and remain
positive in XXXXXXXXXX.
Demand from cafes, restaurants
and takeaway food services
Cafes, restaurants and takeaway food
providers compete with supermarkets
and grocery stores for consumer
income. The number of Australians
eating out has increased over the past
five years, and households now spend
a greater percentage of their income
on meals outside the home. Demand
from cafes, restaurants and takeaway
food services is expected to rise in
2018-19, posing a threat to the
industry’s performance.
Provided to: University of Western Australia (UWA) | 27 August 2019
WWW.IBISWORLD.COM.AU Supermarkets and Grocery Stores in Australia October XXXXXXXXXX
Industry Performance
Industry landscape ALDI’s business
Answered Same DaySep 13, 2021MKT00720Southern Cross University

Solution

Moumita answered on Sep 16 2021
51 Votes
ALDI AUSTRALIA
Executive Summary
Aldi is the recognised retailer company in Australia that deals with its business. The company approached relationship marketing, market orientation and market segmentation theory in their marketing strategy that helps them to expand its business among 20 different countries. Through the overview of the marketing strategy of Aldi that the company is using in their present business operations, it can recommend that the company must involve stakeholders mapping, media interference and PESTLE theory in their business. Implementation of that marketing theory must help Aldi in their future business operation for the next 10 years.
Table of Contents
Introduction    4
Background of ALDI    4
Marketing analysis    4
Nature of Aldi’s marketing strategy or strategies since it began    4
Strategic marketing options for Aldi moving forward    7
Conclusion    9
Reference    11
Appendix    12
Introduction
This report is enclosed with a
ief discussion of ALDI's industrial performance. ALDI is an Australian based grocery and supermarket stores. The report enclosed with the nature of Aldi's cu
ent marketing strategy or the strategy by which the company was launched. The background of the company focused on the report for a better understanding. However, the report ends with a
ief discussion of the future aspect of marketing strategy that helps the organisation to develop their business and provide them with an opportunity to be the successful organisation in Australia and they can move forward their business.
Background of ALDI
ALDI regarded as one of the recognised grocery and supermarket based companies in Australia. It started on 10 July in the year 1946, by Karl and Theo Al
echt. The company has more than 10,000 stores around 20 nations. According to Cameron et al. (2019), the annual turnover of the company is more than 50 billion European dollars. The headquarters of the company is situated at Essen in Germany. The company deals with supply chain market of food, household goods and beverages all around the world. The organisation consists of 35 regional companies in the area of northern, western and eastern Germany. However, this retail company spread its business in Australia with success.
Marketing analysis
Nature of Aldi’s marketing strategy or strategies since it began
The organisation rapidly develops its growth in science it launches by approaching a strong marketing strategy in its circumference. It has obtained significant changes in the past five years that replace it into the successful grocery chain system in the Australian market. The higher authority of the organisation went through some suitable marketing approach that helps them to build up their reputation in the retail sector in Australia. As suggested by Lehre and Schmid (2019), the annual turnover of the company estimates as 53 billion European dollars that reflect the success story of the company. However, the company also faced strong competition from giant retail companies such as Woolworth and Coles. Despite this, the company still performs well in the Australian market (Youl, 2018).
The business model that has considered by ALDI stand on the business with a limited range of
anded goods. However, the prior strategy of the company is to focus on to enhance a wider range of private-label goods. According to Boyer et al. (2018), the business model of the company is based on no or less marketing strategy and that helps the organisation to secure the reliability of customers. Customers usually rely on their limited
anded product, as they do not compromise with the pricing of the product. However, the organisation can reflect the motto that they do not compromise with the quality of the product and provide the best product to their customers. According to Schmid et al. (2018), the organisation sustains its business with this marketing approach since it launched its business in 2001.
Figure 1: Relationship between Supermarket stores and Population
(Source: Youl, 2018)
The marketing model of the company based on relationship marketing theory that reflects that business should have a long-term relationship with their customers to sustain its business as well as for the move forward of the business. The marketing strategy of the company enclosed with
and equity attributes that add more value to their business. With the help of this marketing approach, the management of the organisation involves them to provide a detailed knowledge of the
and that they are concerned with their customers. Opined by Schmid et al. (2018), however, they put a strong
and image among their customers that help them to build up a strong reputation for their
and. The rate of customer loyalty is affected by this marketing approach and helps the organisation to spread its business around 20 different countries in the world.
From the beginning of the business in 2001, the organisation operates more than 5oo stores in Australia now. The organisation spread its business into the south and Western Australia after initially concerned with eastern seaboard in the year 2016 (Youl, 2018). The business model of the organisation also stands on the basic attribute of market segmentation that helps...
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