In the UK: Aldi’s sticking with low prices.
The Big Idea:Â 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.