Research Plan: ALDI

Introduction

Introduction to ALDI

Aldi is a global retail chain that is operating in multiple nations of the world. Currently, Aldi is operating in the 20 nations of the world. It has over more than 10,000 stores across the globe. More than €50 billion is the company turnover. In the year 1946 company was founded by Karl and Theo Albrecht. Firm is operating in the multiple nations of the world like Germany, Australia, Austria, Belgium, China, Denmark, France, Hungary, Ireland and Italy. Firm has 2,298 outlets in Germany, 1,886 in Australia, 891 in the France, 827 in the UK and 1,992 in the United States. is one of the well known retail chains in the UK (Tyler., 2018). All-day today has thousands of stores across the world. ALDI is known for making available products at a lower price to the people. In current time period, it can be observed that Tesco like large retail giant face tough competition from ALDI because of latter company unique business model. Aldi under its business model make purchases of goods from small size companies whose products are not popular in the market. These products are easily available at cheaper price to the Aldi and due to this reason mentioned firm is able to make available products at cheaper price to the customers then Tesco. The difference is that Tesco sold branded products and Aldi sold non branded products under its own brand name. Products supplied by Aldi are very competitive in nature and due to this reason customers remain satisfied from the Aldi. Currently, due to corona pandemic less number of people prefers to visit retail stores. Hence, firm start online grocery service in the market.

Scenario:

In the present research study attempt is made to identify the impact of online grocery retailing on organization and customers. The main intention is to identify whether online grocery retailing become successful in the market. The intention is also to identify the impact that this model has on firm and customers. Implementation of online model proved challenging for the companies and there were a number of reasons behind this. Due to corona pandemic individuals start placing orders in large quantity on portals (Koirala and Acharya, 2020). They try to overstock edible items and other FMCG products. Hence, due to a sudden elevation in demand of the products there was a shortage of inventory and retailers were not able to meet needs of the customers on time. Customers have to wait for opening of delivery window. Moreover, many times it happened that goods accurately not delivered to the customers and some items got missed or wrong items were delivered to the customers. Hence, firms were not able to meet customers’ needs in proper manner and many times customers also remain dissatisfied from the firm services. This is the reason due to which it becomes very important to identify whether online service benefit firms during corona situation.
Aim of research

The report is intended to study the impact of online grocery shopping portal on organization and customers.
Research question of the study is as follows.
• What is the impact of online grocery shopping portal on organization and customers?
• What is the influence of grocery online shopping portal on revenue growth?
• What is the influence of online grocery shopping portal on customer satisfaction?
• What is the influence of online grocery shopping portal on customer convenience?

Rationale of research:

It was necessary to conduct the research study because due to corona factoring firms face a lot of factors in doing business even they are facing losses in the business. In such kind of situation, business firms are identifying unique ways to handle the situation. Aldi adopt an online retail model in its business. Customers face many problems in this model and remain dissatisfied. Thus, it becomes imperative to identify whether online model proved successful for the firms during corona pandemic and if yes then how much it proved effective for the mentioned retail chain.

 

 

Conclusion and recommendation:

On the basis of the above discussion, it is concluded that online grocery shopping greatly affects Aldi and its customers. Customers receive benefits from such kind of efforts of the Aldi. Audio was one of the first retail chains that offer grocery products online in the UK. By making available necessity items online firm provide safety and facility to the customers. Individuals often think that if they will visit any place where there is crowd then probability of being suffered from corona increased to great extent. Hence, they try to avoid visiting retail stores. Aldi by going online took right steps and it successfully creates new customers and retain old one in the business. This is evident from the fact that online traffic of the firm is increasing consistently and revenue increase multifold for Aldi through its website. Aldi joined hands with courier company Deliveroo and due to this reason it is now able to deliver ordered items on time with full accuracy to the customers. Overall, it can be said that Aldi try to give good experience to the customers.

However, initially Aldi face lots of problems in its business in the online model. At the time, when the lockdown was placed due to corona individuals start doing overstock of goods at the workplace. On the other hand, due to corona supply chain also gets disrupted and due to this reason also there were fewer inventories (Liu, Lee and Lee, 2020). Hence, the firm was not able to serve customers on time on a specific date on which they intend to get delivery of the product. Moreover, due to heavy pressure on limited workforce, many times it happened that wrong items are delivered to the customers. This leads to customer dissatisfaction. However, Aldi deal with the situation and under this it enters into an agreement with the courier company Deliveroo and make sure that parcels will be delivered on time to them. Some of recommendations are given below.

• It is recommended that Aldi must focus on basic necessity items like food items etc to meet customers’ needs. Basic necessity items are those that individuals require in every condition. More firms will be able to make available these basic items to the people to demand it will be able to keep customers in the business. It is recommended that firm must increase suppliers in its business. By increasing suppliers Aldi will be able to serve customers in better way.
• Aldi have already signed contracts with delivery, but it still need to pay more attention on timely delivery of ordered items. It cannot delay delivery of parcels. Hence, considering this factor, it is recommended that Aldi either must increase its workforce or it must contact for any other courier company (Gaur, Sahu and Singh, 2020). By doing so it will more be able to deliver goods on time even due to specific reason suddenly demand increase in the market. In situation of corona Aldi need to prepare itself for every situation.
• It is also recommended that Aldi must use BI system or any system by using which prediction can be made about the future. According to the estimations, fresh order must be placed for the purchase of varied items (Simbolon and Riyanto, 2020). By doing so it will be ensured that basic necessity items will always be available to the firm on its shelf or in the warehouse. Aldi will become one stop shop where customers will get all required items on demand and they will not move to any other retailer.
• It is also recommended that to earn more revenue firm must do FB marketing. Aggressive campaign must be run on FB because by doing so more customers can be attracted to the business. Aggressive marketing will assist firm to create new customers and retain old one in the business.

 

Reference:

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