Saturday, September 14th, 2013 - Roy Morgan Research
More than one third of Australia’s 13 million grocery buyers associate Aldi with low prices, ahead of all other supermarkets, despite the widely-promoted price discounting by the other major supermarkets. 
 
With 34% of all grocery buyers associating Aldi with ‘low prices’, they are ahead of Coles (30%), Woolworths (28%) and IGA (10%) on this important dimension. These are the latest findings from Roy Morgan Research’s Single Source survey for the 12 months to August 2012.


Supermarkets associated with ‘low prices


Source: Roy Morgan Single Source (Australia), July 2007 – Aug 2012. Base: Grocery buyers (14+), 12 months to August 2012, n = 16,358.


Norman Morris, Industry Communications Director, Roy Morgan Research, says:
 
“The long running Coles and Woolworths campaigns focussing on price have clearly had an impact on supermarket customer perceptions over the last year and a half, particularly for Coles.

“Although Coles has enjoyed a significant uplift in their association with low prices over the last year and are now ahead of Woolworths, Aldi still leads on customer perceptions of ‘low prices’, maintaining their position ahead of all other supermarkets for the last 5 years, despite Coles’ heavy advertising campaign.

“At the other end of the scale, grocery buyers’ ‘low price’ perceptions of IGA has remained largely unchanged over the last few years, but with the recent IGA ‘Locked Down Low Prices’ campaign we might see an improvement in ‘low price’ perceptions similar to that shown by the other major supermarkets.  The key question now is will this simply dilute the low price message overall, or will pricing have to become more competitive for any supermarket to maintain customer perceptions of ‘low prices’.

“The recent plateau in customers associating the supermarkets with low prices could mean the advertising campaigns have reached a saturation point, and supermarkets may need to think about new ways to influence customer perceptions of low prices.”

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Roy Morgan Research is Australia’s best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
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