In July of this year, we saw the demise of Dick Smiths food business.
I have never met Dick, but it seems he is being one. Any business is based on a few fundamentals. Your business deserves no special attention except that which your customers will resonate with. Dick wants to blame Aldi for its failure.
Dick complains that Aldi’s presence and aggressive pricing precipitated the demise of his business. He’s basically saying his competitor out-competed him.
I have never eaten any of Dick’s food products but the German Aldi brothers have created a force in Australia since launch. Aldi has a brand and product that seems to resonate with the Australian consumer.
Deliver what people want
My advice is to build something that people want first. Customers will always resonate with a product that gives them immediate benefits (cheaper prices, more convenience). To label a product with an altruistic reason for purchase is not a good strategy for growth. Dick’s angle of buying only Australian works only if that product supports Australians desire to purchase Australian. It seems that Australians want reasonably priced products first and foremost.
Aldi has nailed it with their phenomenal growth in this country. Australians seem to like wiener schnitzel, not Dick.
Make it convenient and relevant
As much as I want to support Australian business I, unfortunately, will not go out of my way to do it. It needs to be relevant to what I want, the convenience of access and relevance of purpose. If you don’t get that right Dick well the customers just won’t come. No matter how hard you want them to buy your products.
I absolutely support anything that promotes a local industry and I honestly believe Dick has the right intentions. However, success comes from being relevant and desired by your customers. Anything else and you end up being irrelevant.