Wine Market (ALDI Group) Case Study Example | Topics and Well Written Essays - 3000 words

Wine Market (ALDI Group) - Case Study Example In 2008, ALDI's global revenues reached an estimated $65,700.0 million in tendered sales. Distribution of revenues across markets reveals growth in some regions of the world, and retraction in others. Adequate analysis of sites for aggressive advancement of wine varietals within ALDI stores across the board requires data on the overall picture of the various market regions and segmentation analysis of both the wine industry and its customers, for future integration of operations and knowledge sharing with industry partners toward realization of the Group's planned expansion in this product area. One of the strengths of ALDI's German based operations has been the Group's flexible approach to strategic opportunities during moments of economic downturn. A company known for its vision of offering the 'cheapest' high caliber products to its markets, ALDI has brought its 'home,' national and international brand grocery product lines to customers at the lowest possible prices while retaining the select-assortment concept indicative of specialty stores. ALDI's philosophy of grocery retail is based on a 'less-is-more' approach; from supplier selection to store location development and operations, each step in the distribution to market chain is managed to facilitate savings substantial enough to impact the everyday lives of consumers. The Group is reliant upon a tri-partite model of conducting retail business, which includes concentration on: 1. Purchasing power which translates to customer savings, by a large grocery retailer with focused attention on a limited number of 1,400 grocery and household items, of which are mostly ALDI 'select brands'; 2. Streamlined operations that enable the corporation to reduce costs; 3. Adherence to stringent quality standards dedicated to matching or exceeding the leading national brand in taste, appearance, and/or performance. In the context of the most recent global financial crisis, ALDI is looking for ways in which to expand its market share in the retail wine sector. Strategic planning toward this vision must acknowledge points of saturation in the wine market, as well as the total competitive picture in the retail grocery industry. For instance, ALDI's market share in its home country, Germany, has actually seen a reduction recently due to a high level of competition from other compatriot corporations. In efforts to retain the Group's 19% share of the German national market, the stores have begun to offer shoppers more in the way of international brands, and better incentives through semi-weekly promotions in order to capture a larger segment of the middle-class consumer population. Despite the challenge faced at home, ALDI's operations in over 15 other countries continue to be successful, and while hit and miss in 'hot' markets in Eastern Europe sustained by youth demographics, ALDI has recently opened stores in Hungary and Poland. The Commonwealth countries of South Pacific offer a similar demographic operations in Australia now