Growth of the Business of ALDI in Australia

Question: Discuss about theGrowth of the Business of ALDI in Australia. Answer: Introduction ALDI supermarkets are a retail chain which sells different types of grocery items. It includes meats and dairy products along with other items of daily needs. This store provides discount to their customers on certain days of weeks and is giving a tough competition to the famous retail stores like Woolworths in Australia (Metzger 2014). They offer great quality of product to their customers at a low price. In this assignment, the growth of the business of the supermarkets chains of ALDI in Australia would be studied. The factors that influence this growth of the business of supermarket chains of ADLI in Australia would be studied. An idea would be given about the type of analysis that could be done if data is collected for the research. The expected outcomes regarding the growth of the business of the supermarkets chains of ALDI in Australia would be also be given in the assignment. Problem Statement The problem statement of the assignment is to understand the growth of the business of ALDI supermarket in Australia. The problem statement would help to know about the business of ALDI supermarket chains in Australia and would help to compare its current status in the business of retail industry with its previous status. Research Aim The aim of the research is to understand the growth of the business of ALDI supermarket in Australia. The aim of the research is also to know about the business of ALDI supermarket chains in Australia and would help to compare its current status in the business of retail industry with its previous status. Research Objectives The objectives of the research are as follows: To find the current status of the business of ALDI supermarket chain in Australia To understand the growth of the business of ALDI supermarket in Australia To compare the current status in the business of retail industry for the supermarket chain of ALDI with its previous status Research Questions The questions of the research are as follows: How is the current status of the business of ALDI supermarket chain in Australia? How is the growth of the business of ALDI supermarket in Australia? On comparing the current status in the business of retail industry for the supermarket chain of ALDI with its previous status, how did it change over the period? Research Hypothesis The hypothesis of the test is as follows: H0: There is no growth in the current status in the business of retail industry for the supermarket chain of ALDI H1: There is a growth in the current status in the business of retail industry for the supermarket chain of ALDI Literature Review ALDI is a famous retail store in Australia and it provides variety of items to its customers. The items range from grocery items to meats and dairy products. This retail industry also provides various products of daily needs to their customers. According to the viewpoint of Kotler et al. (2015), it is seen that the supermarket chain of ALDI in Australia has been going from strength to strength and it is seen that the supermarket chain has been increasing its customers base between the year 2005 to 2013. The number of customers had increased from under a million to 4.2 million on an average for a period of four week (Camero et al. 2015)s. According to the viewpoint of Brenes et al. (2015), it was seen that in the year 2013, ALDI supermarket chain had been placed in the top three supermarkets in context of the market shares. It is seen that the supermarket chain of ALDI accounts for 10.3 percent of all the dollars in the grocery section of the supermarket groups. ALDI lies in the third position after Woolworths and Coles. The popularity of this international supermarket group shows that other international supermarkets can enter the grocery market of Australia and provide a tough competition to the grocery supermarket chains of Australia. As per the viewpoint of James (2016), it was seen that the main motto of ALDI is to provide high quality of products of their customers at an incredibly low price. In short, they provide a smarter way to the customers to shop. ALDI is seen to distribute gift vouchers or gift cards to their customers using websites, Facebook promotions, emails and SMS marketing. They also provide various other offers to their customers (Kurnia et al. 2015). They usually provide deals and offers to their customers on Wednesday and Friday. They have a deal of day deal where they provide amazing deals to their customers on their fresh Aussie meat, fresh produce and other exciting and different products of the fridge. According to the viewpoint of Sutton-Brady et al. (2015), it was seen that ALDI have about 8000 stores located across the globe. It is also seen that they had been operating for over 60 years and they have a tale of unrivalled success. ALDI provides their customers with exclusive branded products that are the leading quality in the market and are usually available at high prices. ALDI store supermarket chain had debuted itself in Australia in the year 2001 and it had established the stores across New South Wales, Victoria, Queensland and ACT. The supermarket chains of this retail industry had established over 270 stores across the states of Australia and have become one of the top 10 retail industry in Australia (Burch and Lawrence 2013). It is seen that the supermarket stores of ALDI is Australia is planning to increase their stores in the eastern region of the country in the coming years. The management of ALDI in Australia has an ambitious program to expand their stores in the country. The sales of this retail store are forecasted to reach beyond $15 billion by the year 2020 thereby, rising almost by 90 percent (Arli et al. 2013). It is seen that prices of the products in ALDI is cheaper by 25% as compared to the products of Coles and Woolworths, which gives an advantage to ALDI over Coles and Woolworths in terms of basket size. Thus, according to the managing director of ALDI supermarket stores in Australia, it is seen that the sales of ALDI could double or triple. However, it had remained somewhat of a niche retailer since the setup of the stores in 2001 as they provide a limited range of items at a heavily discounted prices (Burch et al. 2013). Research Methodology Research Design The design of the research involves selecting the appropriate population of the data that are useful for the research. Appropriate number of samples would be selected for the purpose of the research. These selected samples would undergo statistical analysis and hypothesis would be tested using t-test. The outcome of the research would satisfy the objective of the research help to solve the hypothesis. Data Collection The collection of the data for this purpose would be both secondary data and primary data. Secondary data would be collected from the records of the management of the company in Australia. The data about the sales and revenue of the company would be collected for the past 15 years and these data would be analyzed and interpreted find the growth of the company. The primary data would be collected on interviewing randomly chosen 50 customers who are loyal to the retail stores of ALDI in Australia. These customers would be interviewed using questionnaire method and close ended questions would be asked to them. The questions would be in Likerts scale and the responses of the chosen customers would be the sample of the research. Data Analysis The collected data, which includes both primary and secondary data, would be analyzed using various statistical tools. Statistical methods of descriptive statistics, methods of central tendency, correlation and regression would be used to analyze the collected data. T-test would be used to perform the hypothesis test. Ethical Consideration The researcher should follow the ethical rules during the research. The researcher should clearly state the respondents about the objectives of the research. He should not tamper the responses of the respondents and should not alter the secondary data collected for the purpose of the research. The researcher should not force the respondents to participate in the research and he should not use any arms and harm the respondents during the research. Expected Outcome It is expected that the rate of growth of the business of ALDI in Australia would increase sharply in the upcoming years. It is expected that the business of the company would overtake the business of Woolworths and Coles in the near future. The customers are expected to be loyal towards this retail supermarket chain and would buy more from this retail supermarket chain. It is also expected that providing the customers with best quality of products at a lower rate will be beneficial for the business of the company and it would help to increase the business of the company in Australia. Recommendation It is recommended that the company must increase their diversity of their product and advertise more about the deals and products found in their retail supermarket stores. This would help them to draw more customers and increase the revenue of the company at a better rate. References Arli, V., Dylke, S., Burgess, R., Campus, R. and Soldo, E., 2013. Woolworths Australia and Walmart US: Best practices in supply chain collaboration.Journal of Economics, Business, and Accountancy| Ventura,16(1), pp.27-46. Brenes, E.R., Segura, M. and Pichardo, C.A., 2015. Agropecuaria Montelbano.Journal of Business Research,68(12), pp.2517-2526. Burch, D. and Lawrence, G., 2013. Financialization in agri-food supply chains: private equity and the transformation of the retail sector.Agriculture and Human Values,30(2), pp.247-258. Burch, D., Dixon, J. and Lawrence, G., 2013. Introduction to symposium on the changing role of supermarkets in global supply chains: From seedling to supermarket: Agri-food supply chains in transition.Agriculture and Human Values,30(2), pp.215-224. Cameron, A.J., Sayers, S.J., Sacks, G. and Thornton, L.E., 2015. Do the foods advertised in Australian supermarket catalogues reflect national dietary guidelines?.Health promotion international, p.dav089. James, S.W., 2016. Beyond localfood: how supermarkets and consumer choice affect the economic viability of small?scale family farms in Sydney, Australia.Area,48(1), pp.103-110. Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G., 2015.Marketing. Pearson Higher Education AU. Kurnia, S., Hill, S., Rahim, M.M., Larsen, K. and Braun, P., 2015. Food Hubs in Australia: Benefits, Challenges and Potential IT Contributions. Metzger, K., 2014. International Management Analysis of ALDI. Sutton-Brady, C., Kamvounias, P. and Taylor, T., 2015. A model of supplierretailer power asymmetry in the Australian retail industry.Industrial Marketing Management,51, pp.122-130.