Aldi’s new ad misses the points
In response to Aldi’s recent anti-loyalty campaign, Bernard Wilson – who has worked in the field for both Myer and Woolies – argues the positioning is a strategic misstep.
Sun Tzu wrote that “when the enemy occupies high ground, do not confront him”. It strikes me as irrational that Aldi would feel the need to attack the majors on loyalty – where they hold the high ground – rather than continue to focus customers on its compelling core proposition.
Regardless of reality, customer perception has been that the majors cannot compete with Aldi’s lowest prices on a wide range of high quality product. Best value (price) remains the second most important driver of a customer’s decision to shop with a grocer, and whilst economically a loyalty program does have a marginal impact on price, it is not considered in that way by most customers.
That’s a creepy advertisement. It is going to give me nightmares – and worse nightmares than the length of a queue at an Aldi checkout.
I don’t watch much broadcast tv but I did catch this ad and thought it was pretty odd but it did make me think – “Yeah points are actually not really worth the effort.” I scan the card when I shop and sometimes I get a few bucks off but it I still go to Aldi and it did make me think that I’m probably better off going to ALDI more often. So job done for me..
I totally agree Bily C. I did the exact same thing! And now anytime I scan my Coles FlyBuys (using the app) it makes me have buyers remorse… so I will definitely aim to go to Aldi more.
Job well done by Aldi I think!
“It is difficult to get a man to understand something, when his salary depends on his not understanding it.”
Myer – didn’t they just have a write-down of nearly half a billion? Not enough loyal customers?
Nah could be the general death of high street retail and huge disruption of new players…. it’ll happen to Aldi and Woolworths eventually. Are you pointing at the messenger or the message?
The proposition is ‘Good. Different’ – so highlighting difference – in this case the lack of a pointless loyalty programme reinforces this and draws attention to the underlying value proposition. Similar to advertising a significant pain point – like having to dig around for loose change to get a trolley. It’s all built around highlighting value.
I have shopped at Aldi ever since they arrived and dont recall “having to dig around for loose change to get a trolley” I have a Aldi token on my car key ring, always with me. Pretty simple, stress free and you dont see trolleys left all over the place like the opposition trolleys.
Completely disagree – brand differentiation and penetration eats loyalty for breakfast if you want growth.
100% agree. Loyalty programs are expensive wastes of time and resources, that could be better spent finding new customers or investing in a brand.
The ad is great positioning for Aldi. Well done.
I did the sums once and worked out the potential value to me of being part of Fly Buys. It was about $10 a year. I felt it wasn’t worth my finding a card and scanning it roughly 365 times.
A very shallow, textbook analysis. Aldi just differentiates on price aye? Try getting me in a Coles or Woolies, boring. Aldi, I can’t help checking out what quirky things are on the centre aisle: I picked up 3 guitar pedals for a song (pun intended)! And it’s easy to pick the groceries you want, not being overwhelmed with a zillion options. And do the maths… loyalty points aren’t worth jack manure. Mate, Aldi is my hero – after years of outrageous prices and poor quality, limp vegies that only a duopoly can deliver, we have a slick competitor who is cutting the costs of essential shopping and putting significantly more on the table, especially for those on low incomes. It’s working. Come on Aldi, open more stores, let’s run the Big Boys out of town.
totally not sponsored by Aldi™
Contrary to your assertion, this ad is all about value, and how Aldi are able to offer it, demonstrated in an entertaining way that opens consumers eyes to the fact watered down loyalty programs might not be doing much for them.
What a terrible, superficial, self serving and pointless analysis.
i think too much time has gone into analysing this advert. I’m am Aldi shopper, I got a giggle from the ad. Keep it simple.
A smart, snappy analysis. Not everyone will agree, although some just from a personal point of view rather than from an appreciation of the broader commercial realities. I understand Aldi’s rationale for wanting to distinguish itself on this point(!) but feel it could have been more effective deploying a positive message rather than a purely negative one.
What if, Aldi goes online? Coles is great service but Aldi definitely has lower prices, come on Aldi go online. As for blowfly cards, I gave that away years ago, not worth the fuss as the value has been degraded over the years. As for 4 cents off, what is the point if the price is more than 711s’ (including the 4 cents)
If Woolworths and coles would give customers what they need at the right prices ,Aldi wouldn’t be so much of a threat.keep up the good work Aldi,you have my vote.
Ok sure, points “work”. Or, “worked”?
But claiming “Firstly, Australians love points.”? LOL.
Don’t mistake “begrudging use” for “loyalty”.
I suspect Aldi empathising with the feeling of freedom that comes with not being algorithmically surveilled when buying a couple of granny smiths is emotionally in-touch. And that hair!? I’m sure even Sun Tzu would’ve had a giggle.
Resonant absurdist humour incepting the simple idea of “what if I told you… there’s a world outside of points?”. Sure it’s a short sighted challenger strategy, but only if you want it to be.
tl;dr Pointsman says anti-points ad is pointless. It gets awkward.
I got a ‘reward’ once from my points collected at Coles. It was the cheapest piece of rubbish, gained at the expense of spending 100’s of $. The flybuys card and the clippers went straight to the bin.
Someone whose job is doing something writes an article defending that something in the trade press despite overwhelming evidence that it is a crock of shit.
Yawn. fart . Next.
I’m not sure that someone with such a poor track record with a major retail store like Myer – which incidentally is still very fresh in the minds of your readership (i.e. Australian consumers) – should be writing retail/marketing analysis articles like this one so soon.
As Off Point above so astutely observes, Aldi’s mantra is ‘Good. Different.’, and they point out that – unlike the major supermarket competitors – they don’t engage in pointless loyalty schemes that are largely designed to encourage “click-bait” spending at uncompetitive retailers. Rather they underline the fact that they believe in delivering value for money to *all* their customers (and not just “special” customers that Australian retail loyalty schemes discriminate for and against, depending on one’s spending patterns, the time of day or week, the colour of underwear that is worn etc. etc.).
Aldi – ‘Good. Different.’ Mr Wilson’s article – ‘Poor. Effort.’
Last time I went into an Aldi store they did not have many of the brands that I like.It was very difficult for me to compare like with like.But many of my friends are stuck on Aldi like bees to a honey pot and that can been seen here by some of the passionate comments by Aldi supporters.
I am not convinced and suspect that their market share is starting to peak.
Time will tell but one thing is for sure you are spot on with Australians love for loyalty programmes.
@B Johnson
I think few would deny Australians’ current love affair with loyalty schemes. Equally, you would be hard-pressed to find many genuine loyalty schemes that deliver good value to their entire customer base.
Nevertheless, you say that the last time you went into an Aldi store that they didn’t have many of the brands that you liked. If you were looking for the usual known brands found in supermarkets, then you’ve really missed the point of Aldi. They predominantly source atypical brands and products that they can offer at better price points than their competitors, all the while trying to ensure that they are of equal or better quality than the more expensive known brands offered elsewhere.
The other thing that you’re perhaps overlooking is that Aldi is not a simple supermarket competitor. They’re not meant to be a direct competitor to the likes of Woolies, Coles etc., nor are they set-up to serve as direct replacements for supermarket customers for the weekly grocery shopping (at least not for people with families anyway). On the other side of the coin, there are plenty of brands for non-grocery items that can be found at Aldi that you certainly can’t find in the supermarkets. Think of non-supermarket lines that Aldi stocks such as whitegoods, TVs, 3D printers and other consumer electricals etc. They are a mixture of known brands and atypical ones. Like their supermarket product lines, the known brands in these instances are significantly cheaper in a lot of cases.
Anyway, I’m not sure where Aldi stores are generally located in the eastern states, but here in Perth (in the southern suburbs, at least)…..Aldi stores are conveniently located either in shopping centres where Woolies/Coles etc. stores are situated (often they are smaller stores in these instances), or within walking distance of such shopping centres on massive dedicated sites. Consequently, there’s not a lot of mucking around with driving here, there and everywhere if you want to cover all the bases in shopping at Aldi, as well as the usual supermarket/department/electronic store retailers.
Aldi – ‘Good. Different.’ Coles/Woolies/Big W etc. – ‘Could.Do.Better’
Can someone explain what the significance of doing her hair is … it just bugs me that’s it’s so stupid … whenever I see a stupid ad is turns me off being a customer of whoever it is advertising: like i’ll keep away from aldi … their ads are weird … not shopping there.
Interesting that the ad and conversations here centre around the “value” to the consumer.
The fact remains that the data they collect from these cards not only helps them sell more products to those customers, but they also then sell on the data to the likes of Quantium who the charge brands to use it to improve their marketing. That’s where the real “value” to Colesworth is. The Banks and Qantas etc are all doing it too.
If Aldi could collect more data on its customers to increase $$ then it would. I can only assume its an infrastructure thing, but lets not be fooled that they are choosing not to have a loyalty scheme because they already provide value to their customers.
Under 20 years in Australia, now the third largest retailer in the country and a market share that continues to grow.
I’d suggest they have no problem offering value to their customers.
Equally, they don’t appear to have an issue with infrastructure investment, having opened 100s of stores.
@its all about the data
Do you seriously think that Aldi has infrastructure or other problems that prevent them from collecting “more data on its customers to increase $$” with a loyalty scheme??!! Wow. Their success in such a short time by making VFM a high priority for their customers (sans a customer loyalty scheme) is simply a mirage, is it? If it ain’t broke, don’t fix it! <—– That's something that major players in the Australian retail industry have rarely observed and been able to resist to their own detriment and that of their customers. You just have to look at the comedy show that Coles and Woolies have put on with their barrage of decisions and backflips over their plastic bag policies in recent months to know that.
In any case, I'm sure Aldi periodically re-evaluates decisions or non-decisions they make on things like customer loyalty schemes. For the time being, they don't see any value for such loyalty schemes in their business model…..and, from all accounts, it doesn't seem to be hurting their bottom line any!
Sorry you lost me – what do I do with the points?
Sorry – you lost me – what do I do with the points again?
Bernard Wilson most recently ran Myer’s loyalty program, and prior to that was part of the Woolworths Rewards and WooliesX leadership teams.
I have not been a regular Aldi customer because they have less choice then the others but lately i see less of my favourite brands in coles & woolies, may have to rethink.
Oh, i just love this ad.
Hey Aldi. Why do you charge me a fee for using my own money on visa debit card. ??
Cokes and Woolies do not.
I just want to know who the actress at the checkout at is that her real eyes
This is a brilliant ad and whoever came up with this idea oughta be congratulated! They tell it like it is. You have to spend a hefty amount to earn those points and all you get is peanuts…actually, not even peanuts, just a plastic card.
Go Aldi, your ads are good AND different and your products are tops!