Price

M&S responsibly source their ingredients. They pride themselves on quality and individuality which leads them to believe the price that they charge for their food and drink is reasonable.

They have a non price competition view on how they price their products. It can be said that the used a premium pricing strategy (opposed to Aldis penetration pricing strategy). Rather than focus on the cost of their food and drink they try promote the distinctive features of their product.

 As well as the food they try to sell an experience and good service. They have the view that costs reflect quality although perceptions of value are subjective. They couldn’t price match their merchandise with other sellers like Aldi who do have a price competition strategy.

 Aldi aim to have the same ethical standards and quality as other retails but still want to be price competitive. To be able to do this there have to be sacrifices made elsewhere such as staffing levels, shop layout and service provided. They don’t have the resources to give the same customer experience that M&S customers would receive although Aldi consumers are aware that they give up these dimensions of shopping to receive the discount that Aldi provides them with.

When considering price M&S didn’t consider a specific age for their target market but aimed themselves at middle class section of society and prices reflected this. Aldi, although in many cases positioned themselves geographically in more deprived areas, aimed at middle class too. It could be argued that Aldi don’t design their product or pricing structure for any particular level of society or those on a low income but simply those who want the best price for the best quality.