Marketing Planning & Market Segmentation of Aldi - [University Name]

This report provides a comprehensive analysis of Aldi's marketing planning and market segmentation strategies. It begins with an executive summary outlining the key aspects of the report, followed by an internal analysis that examines Aldi's vision, mission, product offerings, and financial stability. The report then delves into an external analysis, including market analysis, competitor analysis, and a macro-environmental analysis using PESTLE framework. A SWOT analysis synthesizes the internal and external factors, identifying Aldi's strengths, weaknesses, opportunities, and threats. The report concludes with a discussion of Aldi's market segmentation approach and provides insights into the tactics that have contributed to its success in the competitive Australian grocery market. The report also includes image references and a detailed table of contents.

Marketing Planning & Market Segmentation of Aldi 0
Title: Marketing Planning & Market Segmentation of Aldi
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Marketing Planning & Market Segmentation of Aldi 1
Executive Summary
Planning is the most important and crucial project of management. The foundation of an
organization that may include an activity, plan, idea, and strategy is based on the planning
process and if there are some loopholes in the planning process then the entire plan, idea and
strategy will fail. This is similar to the organizational marketing planning. The marketing
planning determines the various positives and negatives of an organization to utilize them
effectively in the development process and to be prepared for facing any calamities. The
Australian grocery industry is a very competitive industry and is concentrated too. This high
level of competitiveness has been disastrous for many foreign organization, but the one
organization that survived and is prevailing in the current market is Aldi. In this assignment, the
main objective is to analyze and understand the marketing planning of the organization Aldi to
suggest a new market segmentation for the organization. The examination of the organization
Aldi showcases a unique strategy that the organization has incorporated in their working style.

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Contents
Introduction......................................................................................................................................3
Internal Analysis..............................................................................................................................4
Aldi Vision...................................................................................................................................4
Aldi Mission.................................................................................................................................5
Aldi Products Overview...............................................................................................................5
External Analysis.............................................................................................................................9
Market Analysis...........................................................................................................................9
External Competitors Analysis..................................................................................................10
Macro Environmental Analysis.................................................................................................12
SWOT Analysis.............................................................................................................................16
Market Segmentation.....................................................................................................................19
Conclusion.....................................................................................................................................21
References......................................................................................................................................23
Image References.......................................................................................................................26

Marketing Planning & Market Segmentation of Aldi 3
Introduction
The process of planning is considered, as the first step of management. It is a process of
reasoning, thinking, rationalizing and incorporating theories and models. This is the foundation
of a project, plan or an entire organization. The process of marketing planning is important for
every organization to the formulate objectives and goals of the organization that has to be
achieved in the specified time. According to Kotler, planning is a process of making a decision
about the actions that have to be taken in the future (Kotler, 2017). It is a process in which an
organization reconciles the company’s resources along with the organization’s opportunities and
objectives. The marketing planning can also be looked at as a blueprint or a roadmap of an
organization, which defines and stages different marketing activities that have to be performed in
the decided time period. In this report, the marketing planning of the organization Aldi, which is
a short form of Albrecht Discount, will be examined. The organization Aldi stepped into the
competitive and concentrated market of Australia in 2001. This international organization that
spreads more than twenty countries all over the world and was first established in Germany,
made an adventurous move by stepping into the Australian market. When the organization
stepped into Australia it was considered as a very risky move as none of the other foreign
organizations were able to build their mark in the complex Australian market. But, Aldi survived
and prevailed in entire Australia with 83 stores by the year 2004. It is an organization that
conducts million dollar business in Australia and by the end of the year 2010, the organization
has 210 stores in entire Australia, with the organization objective of opening around 20-30 stores
in Australia every year. The organization has a market share of 12.6% by the year 2016, with
more than 473 stores, with the organization expanding more into the regions of Western
Australia and South Australia. The organization Aldi has new strategies that include redesigned
shelves, clearer signage and also wooden produce bags. The organization also has an efficient
energy lighting system with extended chillers in their outlets. All these attributes will help the
organization in attracting more customers as they are creating a more comfortable, accessible and
pleasant shopping environment for the customers. With these additions in the organization, the
company would not hike the prices of their products. All these changes have helped the
organization to carve a niche for themselves in the Australia market where brands like Coles and
Woolworths already have a huge dominance for decades before the organization Aldi stepped
into the Australian market. In this assignment, the marketing planning of the organization Aldi

Marketing Planning & Market Segmentation of Aldi 4
will be analyzed, to understand the important tactics that helped the organization in building such
a huge popularity in Australia. This has been conducted through examining the internal and
external analysis of the organization and further conducting a macro-environmental analysis and
a SWOT analysis. The report has been concluded with the market segmentation strategies of the
organization.
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Internal Analysis
Aldi Vision
The vision of the organization Aldi is that the customers, no matter wherever they live
should have the right and the opportunity to purchase high quality grocery products of daily life
at the lowest possible price. The organization’s vision is very simple and this simplicity has

Marketing Planning & Market Segmentation of Aldi 5
affected the market of Australia resulting in a shift of customers from the competitors brand to
Aldi (Beaton-Wells & Paul-Taylor, 2017).
Aldi Mission
The organization has followed their three core values in formulating their mission too.
The mission of the organization Aldi is similar to their vision that is to provide high quality
products to the customers at very low prices.
Aldi Products Overview
The organization Aldi has developed in the Australian market as the organization
provides its customers with a different and unique shopping experience. This has given the
organization the strengths and capabilities to take the market share from their competitors. The
organization provides its customers with a wide range of products (Cameron, Sayers, Sacks &
Thornton, 2015). The organization utilizes the private labels and the local produce of Australia.
The consumers in Australia have shifted their focus to private labels as they have acknowledged
the importance of these products. The organization also gives huge importance to the eco-
friendly products to entice the customers and utilize the emerging trends of the sustainable
environment and the new health conscious world. The supermarket Aldi offers the customers the
following products and services-
Fresh Food
The organization Aldi provides the customers of Australia with fresh products. This is
adapted by the organization due to the evolution that has taken place in the Australian market.
The Aussies give huge importance to the fresh food and there is an increasing interest of the
customers on the quality of the food, especially the fresh ingredients and also on the seasonality
of the food. The organization went through a complete transformation and this was also to create
space for the new products that include fresh food, high quality meat, the popular seafood of
Australia and the dairy products (Cameron, Sayers & Thornton, 2014). The organization also
have given a massive importance to the healthy food products that are becoming more prominent
in today’s fit world. The organization has formed flexible contracts with local Australian
producers, for the benefit of the customers and the organization. The “Project Fresh” strategy has
been very successful in increasing the number of customers for the organization, many native
customers consider the brand inferior to its competitors (Chepulis, Mearns & Skinner, 2017).

Marketing Planning & Market Segmentation of Aldi 6
Image source: (www.marketing91.com)
New Store Design
The organization Aldi, have maintained a level of innovation not only in their products,
but also in the display of the products. The organization has redesigned their stores and which is
perfectly visible in their new stores. The earlier stores are also being transformed according to
the new design plan of the organization (Ellickson & Misra, 2008). The organization’s new
design includes wooden platforms to display products, better lighting facilities that make the
presence of every product more prominent and attractive. They have also expanded into the
Australian market by generating new stores through their retail chain in Australia. The
organization has also extended chillers now for the product’s lifespan and quality. The one
problem which most of the customers face while shopping in the supermarket of Aldi is the
crowded check out the points. Though the new design has spent millions of dollars to control this

Marketing Planning & Market Segmentation of Aldi 7
problem, there are still a large number of complaints that are being registered in this aspect
(Freebairn, 2018).
Image source: (media-assets-03.thedrum.com)
Environmental Friendly & Socially Responsible Practices
The organization Aldi, knows and understand the dominance that the organization Coles
and Woolworths has in the market. The organization has to implicate unique practices and before
their competitors. Australian is a place where a huge importance is given to the culture, society
and the environment (Johnston, Stafford, Pierce & Daube, 2016). The organization has utilized
all these traits in their strategies and have followed the Triple Bottom line principle for the
marketing practices of the organization. The organization has worked forward towards building a
socially responsible environment and an ecological friendly environment through its three core
values that are consistency, responsibility, and simplicity (Makhitha, 2014). The organizational
structure of Aldi also gives a huge importance to the communities, the environment and the
sustainable development goals that are built for gaining benefits for the organization by creating
a brand image that is responsible (Min, 2010).

Marketing Planning & Market Segmentation of Aldi 8
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Financial Stability
The company’s strategy of fresh food has helped the organization to gain more profits.
The organization in the year 2017, has pushed the sales to the mark of $8 billion. The
organization has gained this huge success due to their “Project Fresh” strategy. The organization
has also reduced their prices of 630 products, but still, they have received massive growth
(Miranda & Kónya, 2008). The organization is looking forward to opening 100 more stores in
Australia and for this reason, they have expanded to Western Australia and South Australia.
Though this has worked in the favor of the organization as the “Project Fresh” strategy is very
effective, but the organization is incurring a lot of investment in the new design and the
marketing strategies. And the way they have reduced the prices of the products, this is not a good
approach for the long run.
All these factors state that the strategies of the organization, who deals with a wide range of
products are restricted by a number of factors that are not appropriate for the longer run (Price,

Marketing Planning & Market Segmentation of Aldi 9
2016). The organization has the mission of providing high quality products at the lowest possible
prices. The strategy of delivering high quality products at lower prices, has led the organization
to reduce all the overhead costs of the product which will cut the profit margin of the
organization by a huge volume. This cost leadership strategy for operating the organization in the
competitive market is reducing the profits of the organization (Pritchard, 2009). The organization
another strategy that is implicated is the competition strategy, which is the main driving force as
the organization will not survive under the huge dominance that the organization Coles and
Woolworths has in the market. The competition strategy has helped the organization to explore
different areas which are now the strengths of the organization (Richards, Lawrence, Loong &
Burch, 2012).
External Analysis
Market Analysis
According to Roy Morgan researchers, the total share of supermarkets in Australia is $90
billion in which the contribution of Aldi is going to grow in the coming years. The contribution
of Aldi in this $90 billion is around $11.9 billion, which has increased from 12.5 percent to 13.2
percent (Morgan, 2017). The market size of Aldi is increasing in Australia with each passing
year (Sungku Kwon, 2012). The current market of Aldi in Australia is approximately 5.1 million
and it is expected to increase due to the organization attribute of catalogue reach which is
checked, by the maximum of the Australians. The organization is successfully creating a
dominance on its competitors by the increase in the market size of the organization (Whyatt &
Koschek, 2010). The main market share of the organization has also increased due to their
“Project Fresh” strategy. This is a growing trend that helps the organization to attract customers
and shift the customers from their competitors. But the Australian supermarket lacks customer
loyalty, the customers can be easily shifted from one brand to another. This can be beneficial for
the organization in the small run, but customer loyalty is one aspect that is considered as a
paramount goal of each organization. The loyal customers are the true brand ambassador of the
organization who attracts more customers towards an organization through mouth publicity. The
other growth trend that has helped the organization in gaining more customers is the new designs
that have been adapted by the organization to provide more customer experience by adding more
convenience to their shopping.

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Image source: (www.roymorgan.com)
External Competitors Analysis

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The organization Aldi stepped into the Australian market when organizations like
Woolworths and Coles, already have a huge dominance and a large market share in the
supermarket industry. The Aldi organization has carved its niche from a foreign organization to a
prominent share in the market (Akkilic, Ozbek & Aldemir, 2017). The marketing activities of
Aldi are equivalent to the Coles and the Woolworths, this has also made the competitors of Aldi,
to consider the organization seriously, as it was successfully transforming the customers of
another organization into loyal customers of Aldi. The current market share of the Coles and
Woolworths is about 33.2% and 35.7% respectively. This is around 70% of the total market
share.
Image source: (www.roymorgan.com)
Coles
The organization Coles, have been existing in Australia since 1960, with its first stored
opened in Melbourne. The organization has the second largest market share in the Australian
supermarkets. The organization has a workforce of more than 100,000 employees and more than
807 outlets (Awan, 2014). In the year 2010, the Coles organization introduced a new slogan for