How Coles & Woolies Intend To Give Arch-Rival ALDI A Stuffing With BBQ Chooks

How Coles & Woolies Intend To Give Arch-Rival ALDI A Stuffing With BBQ Chooks
SHARE
THIS



It appears the $1 bottle of milk or loaf of bread isn’t working on making customers loyal to their supermarket chains and the new battleground could well be the great Aussie barbecue chook.

Presently, it must be said, ALDI is winning both the price and PR war over Coles and Woolies, but a new report says the traditional duo would do well to target their German rival in areas it doesn’t play in (i.e. heavily discounted hot take-away chickens.)

330B73A900000578-3533337-Coles_permanently_dropped_its_family_hot_roast_chicken_price_fro-a-75_1460357584322

ALDI typically avoids high-cost, high-staff initiatives such as a deli or seafood section so as to keep its overheads and prices down.

The report by investment bank Morgan Stanley was actually done for Australia’s largest chicken supplier, Ingham’s Chickens. It noted: “Fresh categories, such as fruit and vegetables, meat, bakery and deli, are a key differentiator for Woolworths and Coles versus ALDI, and a large driver of foot traffic.

“ALDI’s chicken range is far more limited than that of both the majors at present; its focus on a narrow range and very low costs preclude it, for example, from offering customers ready-to-eat BBQ chickens. It does not operate a deli in store, given the high associated cost.” Details of the report were published on Fairfax Media sites today.

“For this reason, we think Ingham’s (and other chicken operators) provide the majors with a product that cannot be offered by ALDI, and thus yields a differentiating factor for such operators,” the report noted.

Last week, B&T published the findings of another report by research firm Roy Morgan that showed ALDI had the most satisfied customers of all the supermarket chains. The South Australian grocery chain Foodland was second with a 94 per cent happy customer rating. IGA was third with 92 per cent, Coles fourth with 91 per cent, and poor old Woolies bringing up the rear on 88 per cent.

The study also deduced that tactics to make customers loyal to one store didn’t appear to be working, be they loyalty cards, gifting, price drops or $1 milk. It found that Australian supermarket shoppers are notoriously fickle and typically not loyal to anyone store or retailer. According to Roy Morgan, 75 per cent of Australia’s 15 million grocery shoppers go to one or more stores every month which, if anything, shows the importance of customer satisfaction.

So it looks like chicken could well be the next battleground. In a recent report by the investment bank Goldman Sachs, chicken made up two of the five fresh-food items sold Woolworths, Coles, IGA and ALDI, Fairfax has reported.

 

Latest News

Why Programmatic Needs To Become A Branding Machine
  • Advertising
  • Marketing
  • Opinion
  • Technology

Why Programmatic Needs To Become A Branding Machine

In this opinion piece, Phil Murrell (pictured below), country manager for Australia and New Zealand at Sizmek, argues that programmatic ad spend needs to move up the branding funnel. When I started in digital advertising way back in 2004, we got our media insertion orders via the fax machine. We relied on that machine to […]

Opinion

by B&T Magazine

B&T Magazine
Do Not Disconnect… Why The Telephone Is Still As Relevant For Advertisers As Ever
  • Opinion

Do Not Disconnect… Why The Telephone Is Still As Relevant For Advertisers As Ever

In this guest post, CEO of Delacon, Michael Center (pictured below), argues in favour of something we don’t hear too much a bout these days – the good old fashioned telephone… It’s 142 years since Alexander Graham Bell made his first call on 10 March 1876 to his assistant Thomas Watson, where he uttered the […]

Opinion

by B&T Magazine

B&T Magazine
An Apology To Salmat’s Karen Lewis
  • Media

An Apology To Salmat’s Karen Lewis

Whoops! B&T's stuffed up and this certainly comes with our sincerest apologies for any offence caused.

by B&T Magazine

B&T Magazine
Adland Execs To Be Locked Up
  • Media

Adland Execs To Be Locked Up

Continuing adland's fascination with prison when it comes to charitable causes comes this latest trip to the slammer.

Australian Directors’ Guild Announces Mentorship Winners
  • Campaigns
  • Media

Australian Directors’ Guild Announces Mentorship Winners

Now in its second year, the Australian Directors’ Guild’s (ADG) Commercial & Content Directing Mentorship program announced its next round of eight mentoree recipients. The winners were announced at a special event held last night at FINCH, Sydney and attended by members of the screen and advertising industries. Acclaimed director, and ADG President, Samantha Lang, […]

Diversity Case Study Series: OMD
  • Advertising
  • Marketing
  • Media

Diversity Case Study Series: OMD

One need only look at the Cadbury Favourites chocolate selection to know it has nought to do with industry diversity.

by B&T Magazine

B&T Magazine
Eyeota Deep Dives Into Australian Automotive Purchase Behaviour
  • Media

Eyeota Deep Dives Into Australian Automotive Purchase Behaviour

Eyeota, the global leader in audience data, has today released its latest results on automotive purchase intentions in Australia. The results provide a deep dive into what motivates the buyer and segments those into six different personas.

APN Outdoor Joins The AANA
  • Marketing
  • Media

APN Outdoor Joins The AANA

AANA's annual Christmas dinner and dance got a teensy bit more crowded following this announcement this morning.

QMS Introduces ‘The Lonsdale’ To Melbourne
  • Advertising
  • Media

QMS Introduces ‘The Lonsdale’ To Melbourne

Digital outdoor media company QMS Media has turned on a new premium landmark digital billboard situated in the heart of Melbourne’s CBD. Delivering a commanding presence at the major intersection of Lonsdale and Russell Streets, ‘The Lonsdale’ offers extended dwell times to both vehicle and pedestrian traffic, impacting more than 2.2 million contacts per month. […]

Portrait of a woman looking through out the blinds. Office worker looking through window blinds
  • Opinion

The Lurking Brand Threats Facing CMOs

Treading on gardening rakes and possible alien abduction notable omissions from this CMO threats piece.

Opinion

by B&T Magazine

B&T Magazine
Women In Media Profile: Susannah George
  • Media

Women In Media Profile: Susannah George

B&T is delighted to profile Urbanlist supremo Susannah George who, we understand, is not related to George Brandis.

by B&T Magazine

B&T Magazine
Ikon Lands Avis Budget Group Account
  • Advertising
  • Marketing
  • Media

Ikon Lands Avis Budget Group Account

B&T chooses and recommends Avis and John Karandonis shoes. Hang on, that was the end of Sale Of The Century.

by B&T Magazine

B&T Magazine
Principals Appoints New Creative Director For Melbourne
  • Marketing

Principals Appoints New Creative Director For Melbourne

Branding design agency Principals has announced the appointment of Pip Ireland as its Melbourne creative director. Ireland, who has been freelancing with the agency for the past six months, has previously held roles at Designworks in New Zealand and Melbourne as well as Moon Communications in Sydney. Principals executive creative director Simon Wright said: “We’ve […]

Pureprofile Unveils Next-Level Audience Segmentation Offering With RDA Research
  • Media
  • Technology

Pureprofile Unveils Next-Level Audience Segmentation Offering With RDA Research

Global media and technology company Pureprofile has partnered with RDA Research to enable further audience segmentation across its audience profiles. RDA Research’s geoTribes is a unique classification system that rivals traditional geodemographic approaches by grouping consumers into fifteen ‘tribes’ based on their life stage and socio-economic status. Clients are then able to better understand consumer […]