Aldi rolls out its biggest brand overhaul in Australia, lowers grocery prices

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Aldi
A customer walks into the German discount supermarket ALDI in Sydney, Australia June 19, 2015. Reuters/David Gray

German retailer Aldi has rolled out its biggest advertising campaign in Australia with the slogan "Good Different" in more than 30 new TV advertisements, in-store and internet ads. The brand campaign comes as the discount supermarket chain extends its product range in its supermarkets and puts more fresh food with a promise that the upgrade will not lead to higher prices, a move that keeps pressure on Coles and Woolworths.

Tom Daunt, Aldi Australia chief executive, stated that the supermarket’s key point of difference was market leadership on price. He also talked about the new campaign, saying it is time for the company to build on its success after 16 years of establishing itself. He also explained to Aussies what makes it different and why it will continue to be different, news.com.au reports.

The Good Different campaign, according to Daunt, is a new better way to describe to Aldi’s customers how it does things. He stressed that it is not like other supermarkets.

Daunt added that Aldi will always remain to be the price leader. "The fact is looking at any objective data Aldi always has been and always will remain the price leader," Australian Financial Review quoted him as saying, adding it is the company’s core competitive advantage and something it will not be able to give up.

Aldi reportedly spent over $75 million on lowering grocery prices in the first months of 2017. Last year, it dropped the prices of at least 600 items, nearly half of its everyday grocery range. The supermarket, in the past 12 months, has amplified its range by about 100 new products and continues to increase its range of meat, vegetables and fruits.

Additionally, it plans to renovate 50 stores across the eastern states for customers to enjoy updated interior designs, better product displays and better navigation. According to the company, it has obtained 4.2 percent of the market in South Australia and 3.1 percent in Western Australia since it expanded in both regions last year.

Daunt dismissed the idea some stores are flagging. Instead, he pointed that they are growing and as like any business, Aldi needs to continue to evolve. “Our business has not stopped growing,” he maintained. Sales have reportedly doubled from $3.3 billion in 2010 to $7.5 billion in 2016.

Aldi has 470 stores in Australia. The number of Aldi stores in the country is expected to rise to 500 by the end of the year.

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