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.

 

Please login with linkedin to comment

Advertising Standards Bureau DDB Group Australia Jamie Oliver Thinktank Social UM Melbourne

Latest News

Witchery Partners With GlamCorner To Boost Subscription Shopping
  • Media

Witchery Partners With GlamCorner To Boost Subscription Shopping

Australian fashion brand Witchery has partnered with B Corp GlamCorner as part of GlamCorner’s subscription box offering as the demand for everyday essentials soars. This partnership marks another milestone for the Australian fashion industry towards becoming more circular and introducing more paths to reduce textile waste. Customers nationally will be able to rent more of […]

Curry Club For COVID-19 Relief, Powered By UnLtd, Challenges AdLand To Raise $100,000
  • Marketing
  • Media

Curry Club For COVID-19 Relief, Powered By UnLtd, Challenges AdLand To Raise $100,000

The media, marketing and creative industries are being encouraged to host their own ‘Curry Club for COVID’ before 30th June to help meet the ambitious $100k target set by its organisers. Curry Club for COVID, which was conceived by long-time adtech executive Peter Bray, sales director at Impact, and is powered by industry social purpose organisation […]

by B&T Magazine

B&T Magazine
UnLtd’s ‘Goals for Good’ Soccer Tournament Celebrates 10 Years
  • Media

UnLtd’s ‘Goals for Good’ Soccer Tournament Celebrates 10 Years

The UnLtd Cup is returning for its tenth consecutive year, marking a decade of soccer shenanigans that’s raised nearly $500,000 for children’s mental health charity, KidsXpress. On July 22-23rd, 28 teams from across the industry will battle it out on the soccer field in the two-day tournament at Sydney University Sports and Fitness Centre, Darlington. […]

Mobile Pnone Shopping Online With A Debit Card
  • Marketing
  • Technology

Ultra Commerce Acquires Vesta eCommerce

Australian-bred company Ultra Commerce has acquired New Zealand-based company Vesta eCommerce, a global software business providing leading product data management solutions. The recent acquisition is a significant move for the business, which is Australian born, owned, and headquartered, but has built out a global presence as it pursues rapid growth in the eCommerce market. Connecting […]

Crater Teams Up With Director Luna Laure For ‘Harry’s Story’, Canteen’s Newest Campaign
  • Campaigns

Crater Teams Up With Director Luna Laure For ‘Harry’s Story’, Canteen’s Newest Campaign

Canteen’s latest campaign features the combined talents of Director Luna Laure and creative agency Crater. The campaign strives to raise awareness for young people affected by cancer. The awareness campaign centres around Harry Barentson, who at 12 years of age found out his pregnant mum had cancer. The campaign aims to bring awareness to Canteen’s […]

AFL Legend Kevin Sheedy Narrates A ‘Love Letter To Victoria’ Via Enthral Partners
  • Campaigns

AFL Legend Kevin Sheedy Narrates A ‘Love Letter To Victoria’ Via Enthral Partners

In partnership with storytelling agency Enthral, AFL legend Kevin Sheedy has voiced a ‘Love Letter to Victoria’ using visuals to showcase the state’s natural beauty and culture. Victoria has been hit with the worst of the coronavirus pandemic compared with any other Aussie state, experiencing four lockdowns. Sheedy partnered with Enthral to share a love […]

Telstra’s Belong Appoints Howatson + White For Strategy & Creative, Retains OMD For Media
  • Advertising

Telstra’s Belong Appoints Howatson + White For Strategy & Creative, Retains OMD For Media

Telstra’s lower-cost telco, Belong, has awarded its strategy and creative account to Howatson + White, and has reappointed OMD to its media buying account, after a competitive pitch process. Howatson + White will handle strategy, planning, creative and CRM, while former agency Clemenger will continue to have a relationship with Belong, managing PR and retail activation. […]