This report discusses the marketing tactics of ALDI, a giant supermarket retail chain store of Germany. It covers the 4Ps of marketing mix and provides strategies for product, price, place, and promotion. The report also suggests how ALDI can use these tactics to face tough competition in the market.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Running Head: ALDI ALDI Marketing Tactics Report System04104 5/17/2019
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
ALDI 1 Marketing Tactics of ALDI The main strategy of ALDI is to provide quality products on low prices to its customers. ALDI is a giant supermarket retail chain store of Germany and operates its retail business in most of the European countries and in Australia as well. There are large numbers of competitors such as Woolworths, LIDI, Wal-Mart, Safeway etc. in the retail market that gives a strong competition to Aldi. To face the competition Aldi needs to develop a strong marketing tactics that helps it to survive in the retail market. Marketing Mix strategy of ALDI to face the Tough competition in the Market Marketing mix of Aldi covers the 4Ps (product, price, place, and promotion) and helps to analyse the company. The Aldi needs to develop following strategies accordingto its marketing mix: 1.Products: Aldi needs to provide affordable food products to its customer. The quality of the products should be branded. Aldi should focus on reliable suppliers that provide best quality products and raw material. The Aldi have power to manipulate the pricing of products because of its own labelling and branding facilities (Kamaladevi, 2010). This feature of the company allows it to charge low prices for its product in compare to other competitors. However, apart from the food items the company can also focus on beverage products, health and beauty products, clothes, and electronic and other household items, fresh vegetables, and stationery etc. The company should try to experiment with non-food items as well and should provide these products on low prices with high quality. Aldi is known for its wine products in Germany but the company should focus on other beverage products and modify its products according to the seasonal demand of customers (Bolton, Shankar, and Montoya, 2010). 2.Price:Aldi is known for its low pricing strategy. The penetration pricing strategy of the company gives competitive advantage over other competitors. Although, the company can charge unit pricing strategy for its grocery products so it helps the customer to compare the price. In case of high competition, Aldi should charge low prices in compare to its competitors. To implement this low pricing strategy and for penetration pricing strategy, Aldi can buy the products in bulk which enable the company to buy products from supplier on a bargained price. However, the company
ALDI 2 can also use psychological pricing tactics in which company can provide a minor difference in the price that leads to a greater impact in the mind of customers (Glanz, Bader, and Iyer, 2012). For example, $3.99 instead of $4. 3.Place:Aldi should focus on expansion its business in all every big cities and should open its stores in those areas where operating cost will be low. It will help the company to charge minimum cost for the products and it also helps to reduce its operational cost. Aldi should also focus on its warehouse facilities. Aldi should buy the raw materials and finished goods from the suppliers in bulk and should store it in near warehouse (Vandevijvere, Waterlander, Molloy, Nattrass, and Swinburn, 2018). It helps the company to reduce the transportation costs. Apart from this, if Aldi uses environmental friendly equipment in the stores it will help to create a positive image of the company in the mind of local people (MacMahon, Smith, and Lawrence, 2015). Aldi should also consider the local taste and preferences in its stores. For example, it should name its stores on the local language that attract local people towards the stores. 4.Promotion:Promotion tactics is the crucial factor of any marketing strategy. It has been seen that Aldi spend very low amount on its branding or promotion. However, the company does not keep any marketing department in Germany (McNeill, 2012). However, to face the competition and make aware people about the new products and services, Aldi should focus on proper advertising and promotion strategy. Aldi should communicate about its offer, rewards, and discounts on the products to the customers. It can be done through local newspaper, radio channels, and TV channels. Aldi can also inform its customers through mail or social media channels about its low pricing strategy, available discount on products, and what benefit it provides to its customers after shopping in Aldi stores. It can also communicate about the available stocks and offers, such as offers available till stocks or buy one get one free etc. Aldi can implement these tactics in its marketing strategies (in 4Ps) which will definitely provide a competitive advantage to the company over its competitors.
ALDI 3 References Bolton, R. N., Shankar, V., and Montoya, D. Y. (2010). Recent trends and emerging practices inretailerpricing.InRetailinginthe21stCentury(pp.301-318).Springer,Berlin, Heidelberg. Glanz, K., Bader, M. D., and Iyer, S. (2012) Retail grocery store marketing strategies and obesity: an integrative review.American journal of preventive medicine,42(5), pp. 503-512. Kamaladevi, B. (2010) Customer experience management in retailing.Business Intelligence Journal,3(1), pp. 37-54. MacMahon, A., Smith, K., and Lawrence, G. (2015) Connecting resilience, food security and climate change: lessons from flooding in Queensland, Australia.Journal of Environmental Studies and Sciences,5(3), pp. 378-391. McNeill, L. S. (2012) Sales promotion in the supermarket industry: a four country case comparison.The International Review of Retail, Distribution and Consumer Research,22(3), pp. 243-260. Vandevijvere, S., Waterlander, W., Molloy, J., Nattrass, H., & Swinburn, B. (2018). Towards healthiersupermarkets:a nationalstudyof in-store foodavailability,prominenceand promotions in New Zealand.European journal of clinical nutrition, 1.