Retail Mix of ALDI

ALDI

Table of Contents
Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
Retail mix of ALDI......................................................................................................................1
Discuss competitive advantage on the basis of retail mix...........................................................4
Discuss several challenges faced by retailer................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
This report is based on ALDI which is one of the renowned in Germany that deal with wide
range of goods or services such as grocery, household essentials and many more and aims to
deliver best services to their customers. This is regarded as one of the largest companies as it has
11000 stores in across 11 countries as it emphasises on maximum customer satisfaction (Penn
and Dale, 2017). This report comprises of retail mix which includes several factors such as
assortment. Retail communication, pricing strategies and also it covers several challenges to
achieve competitive advantage within the market.
Retail mix of ALDI
Retailing mix is one of the essential strategic plans that consider various factors such as
product, price, location and so on and use various methods to achieve maximum customer
satisfaction (Brandes and Brandes, 2019). In addition to this, it involves several promotional
strategies in order to persuade their clients and thus make a prospective market plan to achieve
individual and organisational objectives. One of the major benefits is that ALDI consist of super
market chain that deal with number of household items and is considered as the fifth largest
supermarket in UK. The concerned firm has 830 stores operating in UK as the aim of firm is to
decrease the food waste in order to achieve sustainability in a long term and it also take of
packaging by adopting the strategies such as reduce, reuse and recycle so as to provide protection
towards an environment. Also, the concerned firm is considered as the lowest priced market in
UK to achieve competitive advantage by emphasises on quality specification by gaining large
access of customers. There are large number of competitors such as Tesco, ASDA and many
more but the concerned firm provide cost effective and excellent quality and also offer after sale
service to their clients. The firm promote the facility of online shopping so as to add value
proposition among buyers. UK is a diverse country and population in this country are highly
standardised that give more emphasis on quality rather than price.
ALDI provide products with lot of varieties and offer product differentiation and also
emphasise on introduction of new trends that give vast opportunities, thus help in future growth
within the confines of retailing industry. It also beat its competitors such as Walmart by
rendering excellent service and provide an easy online payment to their clients.
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Pricing strategy: It is a method of marketing strategy that provide the value of goods or
services through various segments such as competitors, advertising cost, input cost and so on
(González-Benito and at.al., 2018). Additionally, the main motive is to maximize sales in order
to accelerates the market share by entering into a new market or by defeating its competitors in
an well established market. the various pricing strategies are described as follows:
Pricing strategy Description
Skimming This strategy focuses on selling at a premium
price in order to maximise profit by entering
into a new market when competitors are fewer.
Competitive pricing In this, product is priced according to its
competitors in the market.
Penetration pricing This strategy emphasises on selling goods or
services at a low price to capture large market
share and it also raise maximum clients from
different countries.
Premium pricing strategy This company focus on promoting a new
product in the market that is distinct as
compared to its competitors and sell at higher
price.
ALDI use the penetration strategy as it offers products at a low price as compared to its
competitors so as to gain maximum market share and also established positive brand image in
different parts of the country (Willems, Leroi-Werelds and Swinnen, 2016). In relation to this, it
allows discounts and allowance to attract large number of individuals and thus increase the sale
and productivity in a retailing industry. One of the most important tactics that is used by the firm
is that it establishes the price that seems to be lower by using the psychological pricing strategy.
ALDI emphasise to sold its product through several marketing channels such as
producers, wholesalers and retailers and also provide the facility of online shopping to provide a
great ease of convenience to their customers as it has approximately 500 retailers in UK and
render fast delivery of merchandise. Also, the respective firm emphasises on selling its product
through personal selling and has developed various social media pages to attract clients from
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