Lidl and Aldi’s “luxury” head to head advertising
Nielsen recently found that £1 in £10 spend in supermarkets in the UK is spent at Aldi or Lidl and it’s not just the bargain hunters or low income shoppers spending their money there either. Apparently, one in three Aldi and Lidl shoppers is now “upper” or “middle” class (source), a stark contrast to just 2 years ago when only 1 in 10 of the “value supermarket” shoppers would have fallen into that category. And remarkably, half of British households did some shopping at either Aldi or Lidl over Christmas 2014.
That’s impressive, particularly given that both supermarkets have long been associated with value shopping, discounting and, to be honest, catering to the low income markets.
However, both have introduced more premium end items and Aldi in particular goes out of its way to secure to awards for the wines it stocks – very much appealing to middle class shoppers in many ways. They’re also opening shops in more affluent areas. An opening of an Aldi store in affluent Knutsford, Cheshire, attracted a queue of 300 shoppers on opening day. In contrast, villagers in similarly affluent Lymm have been up in arms about the proposed opening of another discount chain, Netto, in their neck of the woods. Netto is still very clearly “discount” in feel and branding and hasn’t embarked upon any major advertising to the contrary. So you have to wonder whether an Aldi or Lidl opening here would have sparked the same petitioning from angry (and potentially a little snobby?) residents.
Aldi and Lidl Christmas 2014 TV Ads
Aldi’s TV ad over Christmas focused on the different Christmas settings, from the big family meals to the firemen getting dinner on the job. But there was consistently champagne, big dining tables, luxury food items and the ad ends with Jools Holland playing a grand piano, accompanied by a number of jazz musicians and sipping bubbly. Not exactly an ad that screams “budget supermarket,” is it?
In fact, when I first saw it, I thought it was the M&S ad.
Similarly, Lidl went straight for the premium food shoppers too with their ad – it was an ad that went all out to convince people that their products were premium. They had a load of people round for a Christmas dinner and filmed them eating it (with some even remarking they thought the products were from M&S) before revealing the products to all be from Lidl.
More Recent Advertising
The luxury feeling TV ads weren’t just for Christmas either. Both Aldi and Lidl have secured some pretty powerful ad slots to air their spring messages. And there’s a familiar luxury feel about them.
Here’s Aldi’s Easter Ad:
Lidl’s ad is particularly impressive. They kept with the whole concept of giving a load of people some luxury grub and then revealing it was from Lidl. They opened a pop up gastro-pub where diners were asked to pay only what they thought the food and drink to be worth. Cue a table of 4 offering up £160 for their meal to be given a whole load of change and the big reveal.
Absolutely brilliant, if you ask me!
Discount Brands Going Premium?
The target market might be moving but the prices aren’t. Aldi and Lid both remain discount supermarkets, but they’re proving that discount supermarkets don’t have to be equated with poor quality or “cheap” products. Their advertising is more in keeping with the likes of M&S but the price tags definitely are not.
Their premium products and premium feeling ads are working. The figures show us that. But what remains to be seen is which of the two will do better this year out their investment.
And by the way, Aldi do a cracking bottle of Prosecco… 😉