Aldi currently stocks more than 700 products in its portfolio. Each product category has only one specific brand and a restricted variety. Out of all the brands with the organisation, only 15% of the brands are national brands, whereas rest of the brands is strictly restricted to Aldi only. Important thing to understand is that, irrespective of having private brands, its product quality and brand value is as good as already established brands. With Limited set of products to offer, Aldi has ensured that it has greater control on quality as well as price of the product. Thus in terms of segmentation, Aldi should focus on creating segment on the basis of the product price. It is understood that target customer of the company is the lower middle class, and upper middle class. Hence based on the product price it should segments.
Aldi is hugely popular among customers across all its 9600 stores located world –wide, this can be understood by the fact that Aldi’s sales rose by more than 40.6 % in 2012 and it attracted more than million shoppers to its stores. Aldi’s core customers are the one who are extremely conscious in terms of price at the same time not compromising with the quality of the products offered at the store. With Aldi’s simple concept of offering low-priced products, it has been able to attract millions of customers to its stores. Positioning strategy hence should be based on the ‘value for money’ concept. Since globally Aldi is famous for low price-high quality product selling concept and it should use the similar positioning strategy for New Zealand retail market as well.