Aldi, a grocery supermarket located in over 10 countries, serves as a great example that uses the ‘Halo’ effect. Unlike other strategies, their way of creating products resembles that of popular brands, commonly referred to as the Halo Effect, which has contributed to the company's success in building customer loyalty and driving sales.
Aldi uses this marketing tactic called the Halo Effect to boost sales and increase customer loyalty. With this strategy, Aldi creates a positive association with its brand, encouraging customers to try new things and return for repeat business. The way they are doing it is by making products that resemble popular brands, offering similar items at lower prices to attract budget-conscious customers.
Here are one example that they have used:
Unusual merchandise strategy in Australia: According to John Dawes, a Professor of Marketing, ****they implements a unique merchandise strategy in Australia by introducing "weird items in the middle aisle," such as Zimmer frames, brewing kits, and boxing gloves on a set cycle. This approach aims to attract customers by offering unusual and interesting products, contributing to Aldi's success in Australia.
Aldi's strategy of offering products that closely resemble well-known brands at more affordable prices attracts consumers looking for quality and value in their purchases. Despite the huge resemblance in product designs, they also produce high-quality products.
Caption: The products sold by Aldi are Wheat Bisks, Nutoka, Bramwells, Belmont Cookies & Cream and Snackrite. Meanwhile, the well-known brands are Weetabix, Nutella, Heinz, Oreo and Pringles.
Even though Aldi’s strategy creates many positive experiences for customers, will it be beneficial to them in the long term? Aldi is known for mimicking the packaging and design of well-known brands, creating a sense of familiarity for consumers. However, this approach has made Aldi face legal challenges from brands like Marks & Spencer and Thatchers Cider over trademark infringement claims. Due to their strategy, the big brands are having challenges proving confusion or a trademark breach.
Legally, unlike Aldi, the Halo Effect marketing strategy can be used this way, according to Nine Blaess: