Aldi Company Marketing Strategy Report

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This report analyzes the marketing strategy of Aldi Company, specifically the impact of new organic products on customer satisfaction and competitive advantage. The report includes research objectives, methodology, limitations, findings, and recommendations.
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Marketing research essentials1
REPORT ON ALDI COMPANY MARKETING STRATEGY
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Table of content
Table of content…………………………………………………………………………………2
Table of figures………………………………………………………………………………….2
Executive summary………………………………………………………………………………3
Introduction and synopsis………………………………………………………………………..3
Research problem…………………………………………………………………………………3
Research objective………………………………………………………………………………..4
Methodology………………………………………………………………………………………5
1. Research design…………………………………………………………………………...5
2. Sampling method………………………………………………………………………….6
3. Sampling size……………………………………………………………………………...6
Research limitations………………………………………………………………………………7
Research findings…………………………………………………………………………………7
Recommendations………………………………………………………………………………..10
Conclusion……………………………………………………………………………………….11
References……………………………………………………………………………………….12
Appendix…………………………………………………………………………………………14
Table of figures
Response matrix………………………………………………………………………………….6
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Executive summary
The following research focuses on the marketing strategy of Aldi Company. Aldi is an
American retail business that is known worldwide. The company has been successful since the
time it was started and has been able to compete well with other retail companies. Therefore, we
focused on the new organic products that the business has introduced. How have the new
products increased customer satisfaction and competitive advantage of the business? In addition,
the research ties to see whether the company is able to meet the demands of the customers.
Lastly, the report gives a recommendation on the adjustments that the company can make to be
able to be more successful
Introduction and Synopsis
Since the time the company started, Aldi retail business has become one o the most
popular retail business on the globe (Boyer, et al 2018). The company has come up with new
organic products. The owners believe that the new commodities will lead to the development of
the business and increased competitive advantage. The fact that the owners of the company are
not afraid of any competition from the other retail businesses, there was the need to conduct a
research on the new products that the company has introduced and the impacts.
Research problem
For the company to meets its goals, it has to identify the requirements of the customers
in the competitive market. Acquiring a competitive advantage is not easy. The main problem is
how to maintain the competition from the other retail businesses and how to come up with the
best strategies that will enable the company to compete effectively. The company also needs to
maintain a good relationship with the customers and other stakeholders. From the above, we tend
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to ask whether the new organic products will be able to meet the customer's demand and
satisfaction.
The main problem is to identify what marketing strategies the company is using to be
able to market organic products. In addition, we would want to check how effective the
processes involved in the creation of awareness among the customers are. What are the
customer’s reactions towards the services? Is the company able to secure a larger portion of
market share in the available market?
Research objectives
In our research, we wanted to find out a number of things concerning the market of new
organic products introduced by the business. We were able to use different approaches to make
sure that we met the objectives. First, we needed to identify the strategies that the retail business
is using in marketing the new products. In addition, we would want to find out how effective is
the company is marketing strategies and what improvements can be made in the strategy.
Secondly, we had an objective of finding how well are the company’s customers
served. On the same, we were interested in knowing what the customers think about the
company’s argument that they are not worried about any competition even from the big retail
businesses in the united states and the globe in general. In order to get the best information, we
had to approach the customers in different ways including direct interviews.
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Methodology
Research design
So that we could be able to get the required information about the company, we had to
come up with the best research design. First, we conducted an online survey that gave the
customers a chance to be able to give their opinions. The questions were well designed to be able
to obtain the best and most reliable information from the participants. Biases in the survey
questions had to be avoided at all costs. The method of conducting a survey was more effective
because people have different cultures and beliefs. The survey gave each customer a chance to
give their own opinion based on their culture, attitude, and background.
In addition, one of the objectives of the research was to get the customers opinions on the
new organic products of the business. We wanted to get the information on what customers think
about the company and whether the company is able to meet their demands. From the above, it is
clear that people must have a different experience with the company and had a different story to
tell. To be able to avoid unreliable answers from the customers we had to involve questions
based on the products in the questioners to be able to get the correct answers from the
participants. Use of an online survey is also a good way of saving the cost of collecting data. It is
also a good way to avoid biases that may result from direct interviews of the customers. It also
provides a good layout for the customers to give information about the company.
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Marketing research essentials6
Response matrix
GENDER AMOUNT
Female 6
Male 10
Undefined 4
Totals 20
Figure 1. Respondent matrix
Sampling method
In the research, there was the application of the most effective sampling method to be
able to select the participants of the survey. Different respondents were chosen depending on
their willingness to participate and answer the questions on the survey. The people were also
chosen depending on how easy it was to access their contacts. Conducting a survey of the whole
population would be very difficult or even impossible. We had to choose the best respondents in
order to obtain the best responses. Choosing respondents according to their willingness to
participate is was the only convenient way. The method is simple, saves time and very effective
in data collection.
Sampling size
There was the administration of different questionnaires in the effort to obtain
information about the retail business. There was the need to use 20 different questionnaires to
obtain the responses. In every research, there is always a failure of some respondents not
answering the questions. Out of the 20 surveys that we did in the research, 12 of them were
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Marketing research essentials7
adequately answered while 8 failed to answer all the questions. The main challenge that was
encountered during the survey was a failure to answer the survey questions. Therefore, the
research includes 12 surveys that were efficiently answered.
Research limitations
In the research, we used small sized of samples, which was the main limitation of the
research. The small size of samples used in the research may reduce the validity of the results.
The numbers for the survey used were only 20 of which 12 were the ones that were answered
effectively. 20 responses cannot effectively represent the whole population of the company’s
customers. The responses that the 20 participants gave cannot reflect the opinions of all the
customers of the company. In addition, there was the weakness of some participants not
answering some of the questions. Others did not give the correct information and due to their
attitudes gave responses that were not relevant (Shanthanna, et al 2018). Finally, yet importantly,
the samples were chosen depending on how easy it was to contact them. This was also a
limitation of the research because the information given by the respondents was limited to the
people who could be easily accessed.
Research findings
Awareness
In our research, we found that 28% of the customers are aware of the organic products
that the company has introduced. The customers have been made aware of the organic
components through different advertising media. these media include the business sending direct
mils to the customers (Voigt, Buliga, and Michl, 2017). The company uses the direct mails to
notify the customers on any new commodity and any other adjustments. The customers also have
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been made aware of the new commodities through social media. The company posts the organic
commodities to the media that has increased customers aware of the organic food ((Blau, et al
2018). The company has been known of providing other commodities that are not organic but
now due to customer demands it has been able to come up with the organic products to meet the
demand (Chimhundu, 2018). The company also uses catalogs as a way of creating awareness
among the customers about the new commodities. The catalog contains beautiful pictures of
these commodities with prices. This has also increased customer awareness.
Understanding
Through the introduction of the new organic products, Aldi retail business wanted to
show that they value the health of the customers (Chakraborty, 2018). In addition, the business
needed to enable the customers to shop all that they require in a more convenient way and under
one roof. Customers are having a very clear understanding of the changes that the company is
trying to bring in their products. Customers’ are able to see that the company is bringing organic
food and other products to avoid health complications (Turban, et al 2018). The understanding of
these products has enabled the company to acquire even more customers. Different people are
able to understand what health problems result from non-organics products. As a result, the
company is able to get more customers due to their introduction of organic food to their business.
Likeability
The business has for many days dealt with non-organic foods and has now introduced
organic foods. The customers have always liked to shop from the business due to their prices and
quality services. The introduction of the organic food is good news to the customers as they will
be able to shop healthy food and a cheaper price (Effendi, and Imbar, 2017). The customer’s
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Marketing research essentials9
claims that they really like the fact that the business has introduced the organic foods and claims
that they really appreciate. From the above, it is clear that through the introduction of the
organic products the company is able to acquire competitive advantages over other retail
businesses in the world. The company is also able to meet the customers demand by providing
the food that favors their health (Baek, and Wang, 2018). The company has also been able to
acquire a good image from the public and therefore they are increased of sales. In addition, the
new products have been able to save on the time of consumers as they can now shop all they
require under one roof. The customers are able to shop for everything from the supermarket and
there is no need of going to other business to shop for organic food. Therefore, the introduction
of the new organic products to the company is good news to the customers
Sustainability
The response given by the customers reflects the image of the business and their brand.
Some respondents give a clear image of the business and the new organic products that the
business introduced while others were not sure what exactly they were supposed to give. From
the interview, we got really positive results about the company and the brand ((Kato, and
Kobayashi, 2018). Many customers are able to give their opinions in the way that shows they are
interested and are happy with the introduction of the new organic products. The customer thinks
that the new products are sustainable by the company while others think otherwise. The overall
finding was that the company should maintain and bring more commodities that are organic for
the customers are happy with the commodities ((Lamey, et al 2018). This is because the organic
products are able to sustain their needs and improve on their health.
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Marketing research essentials10
From the findings, we found that the company and other businesses in the same industry
are changing the shopping methods of consumers in the country. The company has enabled many
people to shift from shopping at other retail shops because they have been very selective in the
quality of the products they offer (Chakraborty, 2018). The company selects only those products
of good quality to be able to meet the customer's demand. This has also contributed to consumer
satisfaction and enjoyment.
Recommendations
Primarily I would recommend that the company concentrate more on the use of social
media in advertising their organic products other than direct mails. This is because the use of
direct mails is expensive and takes a lot of time (Stanton, 2018). On the other hand, the use of
social media enables information to reach many people at the same time. It is also cheap as
compared to the use of direct mails and catalogs.
Secondly, the company should be able to come up with another means of product
promotion other than cutting the cost. The company should use the generic means of promoting
the sale of commodities whereby they differentiate their commodities to promote the sales. The
generic strategy will enable the company to be more competitive and thus increased in the
volume of sales.
Last but not list the company should also strive to expand their business to the emerging
markets in the developing courtiers (Falahat, Knight, and Alon, 2018). There is a very potential
market that has been created due to the development of countries like Kenya, Nigeria, and other
developing countries. Extending the business to these countries will increase sales and thus the
development of the business.
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Conclusion
Marketing is a very important aspect in the success of a business. Having a good market
strategy enables the company to meet the demands of its consumers and to be able to be more
competitive. Aldi retail business has come up with new organic products that have increased its
competitive advantage over other businesses. They have a well-designed advertising process
which ensures that their creation of awareness among the customers in the most effective way.
Therefore, a good marketing strategy is key to the development of the company and its success.
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Marketing research essentials12
References
Baek, J.Y. and Wang, S., 2018. The Localization Strategies and Success of Costco: Focusing on
a Japanese Mature Retail Market. The Journal of Industrial Distribution & Business, 9(2), pp.7-
16.
Blau, G., Jarrell, S., Seeton, A., Young, T., Grace, K. and Hughes, M., 2018. Proposing an
Expanded Measure for Comparing Online/Hybrid to Face-to-face Courses. Journal of Education
and Development, 2(2), p.1.
Boyer, S., Carr, J., Loomis, S., Prothero, M., Street, Q. and Chen, J., 2018. Could Aldi Succeed
in Canada?.
Chakraborty, R., 2018. Do Retailers Manipulate Prices to Favour Private Label over Brands?.
Chimhundu, R., 2018. Product Innovation, Category Marketing Support, Consumer Choice and
Power. In Marketing Food Brands (pp. 49-78). Palgrave Macmillan, Cham.
Effendi, A. and Imbar, R.V., 2017. Sale, Purchase, And Accounting Information System Using
Analytic Hierarchy Process For Supplier Selection In Store X. Teknik dan Ilmu Komputer, 6(22).
Falahat, M., Knight, G. and Alon, I., 2018. Orientations and capabilities of born global firms
from emerging markets. International Marketing Review.
Fries, A., Bergmeister, A.W. and Spindler, M., 2018. Thermomix by Vorwerk–A New Way of
Cooking. In Fallstudienkompendium Hidden Champions (pp. 73-90). Springer Gabler,
Wiesbaden.
Kato, Y. and Kobayashi, A., Toyota Motor Corp, 2018. Type font. U.S. Patent Application
29/571,125.
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Marketing research essentials13
Lamey, L., Deleersnyder, B., Steenkamp, J.B.E. and Dekimpe, M.G., 2018. New product success
in the consumer packaged goods industry: A shopper marketing approach. International Journal
of Research in Marketing.
Shanthanna, H., Moisuik, P., O’Hare, T., Srinathan, S., Finley, C., Paul, J. and Slinger, P., 2018.
Survey of Postoperative Regional Analgesia for Thoracoscopic Surgeries in Canada. Journal of
cardiothoracic and vascular anesthesia.
Stanton, J.L., 2018. A brief history of food retail. British Food Journal, 120(1), pp.172-180.
Turban, E., Outland, J., King, D., Lee, J.K., Liang, T.P. and Turban, D.C., 2018. EC Strategy,
Globalization, SMEs, and Implementation. In Electronic Commerce 2018 (pp. 537-572).
Springer, Cham.
Voigt, K.I., Buliga, O. and Michl, K., 2017. Striving for Customer Benefit: The Case of Aldi. In
Business Model Pioneers (pp. 11-24). Springer, Cham.
.
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Appendices
Questionnaire 1
Q1 Have you ever tried products from Aldi Company? if no move to question 3
Q2 what kind of a product did you try?
Q3 Aldi Company claims that they do not fear competition from any other company
including Amazon. Have you heard the claim?
Q4 did you like the Aldi online services
Q5what do you think Aldi Company should do to advance their online marketing
strategy?
Q6 what mediums do you think are best for the advertisement of the company's products?
Q7 the company uses direct mails to create awareness to the customer, do you think that
this is an effective way?
Q8 how likely is it that you will buy the Aldi product after receiving a mail from the
company?
Q9 do you think the strategy of cutting the cost of the commodities by the company is an
effective way of promoting their product?
Q10 the company is recently trying to establish a partnership with Unilever company, do
you think the partnership will be effective?
Questionnaire 2
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Marketing research essentials15
Q1 Have you ever tried products from Aldi company? if no move to question 3
Q2 what kind of a product did you try?
Q3 Aldi Company claims that they do not fear competition from any other company
including Amazon. Have you heard the claim?
Q4 did you like the Aldi's online services
Q5what do you think Aldi Company should do to advance their online marketing
strategy?
Q6 what mediums do you think are best for the advertisement of the company’s
products?
Q7 the company uses direct mails to create awareness to the customer, do you think that
this is an effective way?
Q8 how likely is it that you will buy the Aldi product after receiving a mail from the
company?
Q9 do you think the strategy of cutting the cost of the commodities by the company is an
effective way of promoting their product?
Q10 the company is recently trying to establish a partnership with the unlevel company,
do you think the partnership will be effective?
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