🛒Low Prices! That's a Promise: Aldi
In the UK: Aldi’s sticking with low prices.
The Big Idea: Brand Equity adds up slowly, but can get destroyed in a minute.
That’s why Aldi’s plan to stick with their low prices during the cost of living crisis in the UK matters.
Why This Matters: Most brands make a brand promise to their customers that they are willing to break at the first sign of trouble.
This might make them money in the short-term.
It also undermines customer loyalty. Leading to:
Higher customer acquisition costs.
More price sensitivity.
Lower profits in the long-term.
A private company like Aldi has more room to play the long-game of acting strategically.
This means:
Pick a target market.
Position themselves properly in the market like Aldi does with low prices.
Use messages and brand codes that help stick that image in their customer’s mind again like low prices.
For You: Make your brand position mean something by sticking a line in the sand that you won’t cross.
For me, that’s a focus on profitability and growth.
For you, that’s likely different.