Aldi Company Marketing Strategy Analysis and Communication Recommendations

Graduate Diploma in Applied Management (Level 7)
DAM661: Business & Marketing Communication
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DAM661 – Assessment 3 Developed by: Natasha Martin
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Graduate Diploma in Applied Management (Level 7)
Task 1
Purpose of Report
The main aim of the report was to analyze Aldi Company and its current marketing
strategy and tactics and recommend persuasive communication strategies to promote Aldi
Company to New Zealand.
History of the company
Aldi is a Germany leading chain of discounted supermarkets famous known to offer
products of high quality at low costs. The name “Aldi” is abbreviated from Albrecht (family
name) Discount. Aldi Company started in 1913 as a food store in Germany called Essen
(Peter, 2009). By 1960s Aldi company expanded its business to 300 stores in Germany and
was separated into two groups Aldi Sud (South) with headquarters in Mulheim an der Ruhr
and Aldi north with headquarter in Essen (Ruddick, 2018). Aldi North operates in Denmark,
Belgium, Netherlands, Portugal and France. Aldi south operates in United States of America
(USA), Hungary, United Kingdom (UK), Austria, Ireland, Slovenia and Australia. The main
reason for business separation was disagreements. The two organization operates
independently and works within the specific market ground. The companies were originally
owned and managed by brothers Theo Albrecht, and Karl Albrecht. Aldi Company has
transformed from small business to the valuable retail business chain globally with the
company operating over 10,000 stores in 20 countries (Peterson, 2018). In addition, the
company has an estimated turnover of 53 billion Euros and more than 69,000 employees
globally (Cuofano, 2018).
Vision and mission of the company
Aldi Company has a number of guiding principles and business philosophy that can
be summarized in one statement “Top quality of products at incredible low prices-
guaranteed”. The company has five ideologies including buy with confidence, excellent
quality, huge savings, superb special buys and outstanding value. The vision and mission
statement of the Aldi Company is to provide the customers with products they regularly buy
and make sure those products are of high quality at affordable price. In addition, the
company also promises to be fair to everyone.
Values and beliefs
The values and beliefs of the company include simplicity, reliability and responsibility
(Aldi, 2018). In simplicity, the company creates clarity, efficiency and clear orientation to
customers and organization. In responsibility, the Aldi stands for commitment towards
partners, environment, customers and people. In addition, the company includes principles
like friendliness, fairness, service orientation, openness and orientation. In reliability, ADLI
DAM661 – Assessment 3 Developed by: Natasha Martin
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Company means what it says. The company is consistent with people, price, products and
all other aspects of day-to-day professional life.
Product portfolio offered by ALDI
ALDI offers a range of products lines that meet concerns, needs and dietary
interests. Australia products ranges are limited as Aldi stores offer about 1,000 stock
keeping units (SKU’s) as compared to 30,000 SKU’s for Woolworth’s and Coles (Perrey,
Freundt & Spillecke, 2015). The product categories offered by the compare are restricted in
terms of size on offer and brands. The product range includes simple nature line that
consists of several organic items, never any brand of meat products that consist of animal
byproducts added hormones and antibiotics and LiveGfree line of certified gluten-free
products.
Simple nature product line offers around 200 products every day (Aldi. 2018). The
primary products are organic foods and all items produced according to practices without
genetically modified organisms. Precisely, simple nature product line ranges from pantry
staples such as pasta sauce, fruit bars, cereal and honey, to fresh items like yogurt, salad
mixes, kale, milk and bread. Exclusive line of liveGfree or gluten-free foods includes
granola, brownie mix, pasta, bread, cookies and pretzels.
Never any is a product line of Aldi Company that has no antibiotics, animal
byproducts and added hormones. In addition, never any products are free from added
gluten, preservatives, fillers, casein and nitrates or nitrites. Earth Grown are products made
with ingredients like hearty grains and vegetables. Furthermore, Earth Grown line of
vegetarian products and vegan is for customers looking for plant-based options like tenders,
chickenless patties, kale and quinoa crunch burgers.
Task 2
Competitor Strengths Weaknesses Product
features or
benefit
Promotion strategy
Pak n Save -Market leading position in
New Zealand
-good reputation because of
community programs
-Self-checkouts register
which helps people save
time instead of waiting on
line
- the company offers
multiple products
-limited product
selection
-uncertainty in cost
structure
- higher prices
-stores famous in
certain locality
hence less market
share
Fresh food and
great quality
vegetables,
fruit, bakery
items, seafood,
meat at low
prices.
-Sales promotions
-Advertisements on
billboards, televisions,
newspapers and radio
stations.
advertisement through
pamphlets

Graduate Diploma in Applied Management (Level 7)
-no provision for
ordering online
Countdown -offers products at relatively
low prices
-shopping mobile
applications
- customized products and
loyalty cards
-online food bank
-brand name
- a large number of outlets
- effective supply chain and
distribution channels
-failure of operation
from the EFTPOS
machines
-bad acquisitions
-Work inefficiencies
-customers can
order fresh
vegetable and
fruits online
through
countdown
application.
- customers can
compare prices
of the products
online with
other
companies
-social media
advertisements like
Facebook and Twitter.
- sales promotion
Task3
SWOT Analysis of ALDI
Strengths
Pricing and trusted supplies: Aldi Company survives by offering low prices to the
customers. Most customers needs are sold on the company’s stores at lower prices than
other mainstreams retailers. In addition, through the technique of “low prices,” the company
has significantly gained a competitive advantage in the industry. The company also has
trusted suppliers who are loyal to the company and supplies bulky products to the company
at relatively low prices.
High level of customer support: Aldi Company enjoys a strong support from loyal
customers. The strong customer base and brand trust in diverse regions have maintained
repetitive purchases and therefore the company has generated high revenues in those
areas. According to Aschemann-Witzel & Niebuhr-Aagaard (2014) when a company offers a
wide range of products at low prices, people tend to shop frequently for most of their daily
needs. Therefore, the high level of customer support in Aldi Company is associated with
increased in sales and a large number of new customers who shop in the company every
day.
Good product mix: Aldi Company has a strong product mix. The key element of the
company’s product mix is general merchandise taking more than twenty-five percent of total
DAM661 – Assessment 3 Developed by: Natasha Martin
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