The brand description of Sainsbury's and Aldi:price quality positioning

Purpose – The research outlined in this paper seeks to establish whether or not there are discernible differences in the positioning attributes of Aldi and Sainsbury's. Particular emphasis is given to price positioning and to what extent this can be explained by product quality differences.

Design/methodology/approach – Price differences are assessed using the shopping basket technique and product quality differences are evaluated using perceptual discrimination tests conducted blind of brand. Where differences between products are discernible, product preference is identified.

Findings – The study identified discernible differences in the pricing strategies of Sainsbury's and Aldi particularly amongst the higher added value products. Although differences in product quality were evident in some product categories, there was no statistically significant preference for one brand over the other.

Research limitations/implications – Owing to the resource intensive nature of perceptual discrimination tests, this research was conducted on a relatively small number of products and cannot be extrapolated to the full range of products available from either retailer, though it may indicate comparable quality.

Originality/value – This paper evaluates the brand description of two UK-based retailers, Sainsbury's and Aldi. In market positioning, they are at different ends of the retailing spectrum, with Sainsbury's a high added value retailer with an ABC1 consumer profile, and Aldi a hard discounter with a largely C2D consumer base. However, this study is based on a retail site that has the two brands located directly opposite each other in a conspicuously AB suburb of a major UK city. This location deviates from the holistic profile of the Aldi brand and as such provides a special research site.