Shopper Marketing - January 2016 - 52
TRENDS 2016 WORKING WITH RETAILERS What They Are Thinking about the Aldi/discount supermarket model " There is less emphasis/ value on national brands." " It's all about private label. In most cases, people are confusing low price for value where the product quality is not even equivalent to national brands. Furthermore, other retailers are driving up the communications cost to try and blunt the advertising and the somewhat-misleading promotions." " The split between premium and the Aldi/discount supermarket model has particularly hurt our categories - center store, branded. We continue to monitor and watch share balance, etc." "A continued focus on price alone will pressure notable retailers to follow suit." " Our retailer is comp-ing Aldi's prices on a local basis." "There's further fragmentation in the marketplace. This model will make shoppers and retailers much more price sensitive." " The retailer is growing, and we don't have a solution for them at this point." "It is a smart model that we will look to leverage." "It changes the game to be commodity-driven, resulting in manufacturers competing on costs and lowering quality to do so." " This puts pressure on price vs. marketing. It's a race to the bottom. We're hoping that insights and shopper perspective will be a priority." 52 y SHOPPER MARKETING JANUARY 2016 "It's a great model. They found a niche that is servicing their customers' needs. Disruption causes action."
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