LIDL: A German Grocer in the United States

Name: LIDL: A German Grocer in the United States (English version)
SKU: 9B19A007

Lubna Nafees; Neel Das; Mokhalles Mehdi

Product #:9B19A007

Supplier:Ivey

Discipline:International Business, Marketing

Setting:Germany, United States, 2018

Details:Case (PDF) • 10 pages • 2019-03-06

Subjects:

Marketing strategy Business management Sales and marketing International business Marketing

Geography:

Germany United States Europe North America

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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?

Learning Objectives

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.