LIDL CASE STUDY
LIDL CASE STUDY
Problem Statement
How can LIDL maintain its position and market share in the supermarket sector?
What are the risks of entering in markets beyond Europe?
Analysis
SWOT Analysis
Strengths:
Low prices good quality relationship
Good marketing communications
Good staff-customer relationship
Wide target segment, people of all ages and backgrounds
Weaknesses:
Understanding of legal framework in each country it operates
Opportunities:
Existing countries where Lidl can expand
Due to the recession all customers look for one thing: low price. This is Lidl first value.
Threats:
High competition like Tesco, Aldi and ASDA
Consumers are not loyal to bran but to prices so there is small cost of switching brand
Recession has affected drastically retailers in this sector
Adaptation or Standardization
Standardization means when a brand develops standardized products marketed worldwide with a standardized marketing mix, normally called mass marketing. Whilst adaptation means customizing the products in a way that satisfies better the market and minimizes costs. Lidl’s priority is to satisfy customers as the switching cost to competitors is low, therefore it has to consider the different tastes country has. Packaging needs to be changed in every country as it has to be translated into the language country Lidl operates in. Also tastes can vary in different countries, for example water with gas. Some countries hardly don’t drink water with gas whilst others 70% of the population drink it, therefore Lidl should be aware of customers’ needs in order to provide with each of their necessities. Products normally are quite standard and you can find similarities in supermarkets but it needs to consider the cultures and traditions that influence a country.
Strategic Alternatives
Extension, Adaptation and Creation
In order for Lidl to continue its expansion strategy and try operate in foreign markets outside Europe it should firstly investigate the market. Position all
Problem Statement
How can LIDL maintain its position and market share in the supermarket sector?
What are the risks of entering in markets beyond Europe?
Analysis
SWOT Analysis
Strengths:
Low prices good quality relationship
Good marketing communications
Good staff-customer relationship
Wide target segment, people of all ages and backgrounds
Weaknesses:
Understanding of legal framework in each country it operates
Opportunities:
Existing countries where Lidl can expand
Due to the recession all customers look for one thing: low price. This is Lidl first value.
Threats:
High competition like Tesco, Aldi and ASDA
Consumers are not loyal to bran but to prices so there is small cost of switching brand
Recession has affected drastically retailers in this sector
Adaptation or Standardization
Standardization means when a brand develops standardized products marketed worldwide with a standardized marketing mix, normally called mass marketing. Whilst adaptation means customizing the products in a way that satisfies better the market and minimizes costs. Lidl’s priority is to satisfy customers as the switching cost to competitors is low, therefore it has to consider the different tastes country has. Packaging needs to be changed in every country as it has to be translated into the language country Lidl operates in. Also tastes can vary in different countries, for example water with gas. Some countries hardly don’t drink water with gas whilst others 70% of the population drink it, therefore Lidl should be aware of customers’ needs in order to provide with each of their necessities. Products normally are quite standard and you can find similarities in supermarkets but it needs to consider the cultures and traditions that influence a country.
Strategic Alternatives
Extension, Adaptation and Creation
In order for Lidl to continue its expansion strategy and try operate in foreign markets outside Europe it should firstly investigate the market. Position all