Supermarket Giant Aldi Challenges Competitors with Bold Marketing Strategy

Aldi's 'Can't Match This' TV ad. Source: Aldi

Aldi’s ‘Can’t Match This’ TV ad. Source: Aldi

Aldi is stepping up with a new campaign that pokes fun at competitors trying to match its prices. The supermarket is aiming to regain some of the market share it recently lost to other stores.

Known for its competitive prices, Aldi has released a TV ad called ‘Can’t Match This’. The ad features a father and son who start singing and dancing to MC Hammer’s ‘U Can’t Touch This’ when they find out another supermarket is trying to match Aldi’s prices.

A new ad created by McCann is part of a larger marketing campaign to emphasize that Aldi's prices are unbeatable. The ad will be launched today on 24 May.

Aldi UK's marketing director, Jemma Townsend, mentions, "We've noticed other supermarkets trying to match Aldi's prices, but there's only one place where every price is an Aldi price."

“Competitors promoting a small number of items will never give customers the full benefits of an Aldi priced shop.”

After the launch, you can expect to see many discounted prices with the new ‘prices hammered’ tagline. Also, look out for the ‘Wine of the Week’ deal where popular bottles are marked down by as much as 65%.

You will also find recommendations for swapping to cheaper options from Aldi, compared to products from Asda, Tesco, and Sainsbury’s.

Aldi is known for its low prices, setting a benchmark for other supermarkets to follow. Rival supermarkets are now adjusting their prices to compete with Aldi.

Both Sainsbury’s and Tesco have seen an increase in sales thanks to their own Aldi Price Match initiatives.

Helen Edwards, founder of Passionbrand and columnist for Our Website, cautioned against making pricing matches like Tesco's decision to match Aldi in 2022 a constant strategy. She emphasized that such initiatives should be part of a larger package for consumers.

In response, Aldi has committed to increasing its investment this year, aiming to exceed the £380m it spent on price reductions in 2023.

Aldi's new campaign is being launched during a period of slower growth for the company. According to Kantar, in the 12 weeks leading up to March 17, Aldi saw a sales increase of only 3.1%. This growth rate lags behind that of competitor Lidl, which saw a sales growth of 8.8%. In comparison, Tesco experienced a sales growth of 5.8%, Sainsbury's at 6.7%, and Morrisons at 3.6%. Interestingly, Ocado was the supermarket with the fastest growth rate last month at 9.5%.

Editor's P/S:

Aldi's bold "Can't Match This" campaign reflects the supermarket's determination to maintain its competitive edge. The ad's playful approach and emphasis on unbeatable prices convey Aldi's confidence in its value proposition. This strategy underscores the company's understanding of its customer base, who prioritize affordability without compromising quality.

The article highlights the complexities of the supermarket industry, where Aldi's low prices have forced competitors to adjust their strategies. While some rivals have implemented price-matching initiatives, Aldi remains committed to ongoing price reductions. However, the company's recent slower growth rate suggests that the competition is intensifying, and Aldi may need to explore additional strategies to sustain its market share.