LIDL: A German Grocer in the United States
(7 pages of text)
Case (Pub Mat)
In 2017, the German grocery chain Lidl Stiftung & Co. KG (Lidl) opened its first 20 U.S. stores in the southern states of Virginia, North Carolina, and South Carolina. Key target segments of Lidl were budget-conscious customers, middle-class families with children, and elderly customers on a fixed income. Lidl offered lower prices than its competitors and quickly gained a strong advantage in the marketplace. Despite high early consumer demand, however, Lidl struggled to hit the correct target market for each of its different locations in terms of tastes and demographics. With plans for 100 U.S.-based locations by the summer of 2018, Lidl had set its sights high. What could Lidl do to meet its U.S. market goals and expand into the future?
The case can be taught in undergraduate or graduate courses on marketing principles, international marketing, or marketing strategy. After completion of this case, students will be able to
- understand the dimensions used to differentiate cultures across the globe;
- understand Porter’s Five Forces framework for identifying competition;
- understand the five-Cs framework;
- identify the similarities and differences of the above two frameworks and consequently appreciate the importance of both strategic frameworks in analyzing the market environment of a firm; and
- comprehend how firms differentiate themselves from the competition.
Germany; United States, Large, 2018
$4.25 CAD / $4.25 USD Printed Copy
$3.75 CAD / $3.75 USD Permissions
$3.75 CAD / $3.75 USD Digital Download