Marketing Strategies and Customer Service Standards

The provided assignment is a detailed analysis of marketing strategies and customer service standards for ALDI Group. It begins with an introduction to the company's background and market position. The 7Ps marketing mix is applied to analyze the company's product, price, promotion, place, people, process, and physical evidence. Additionally, a SWOT analysis is conducted to identify strengths, weaknesses, opportunities, and threats. Finally, customer service standards are discussed, including strategies for improvement. This assignment provides a comprehensive understanding of ALDI Group's marketing strategies and customer service standards.

B.A. in Business Studies
<ALDI- Marketing Management Audit>
Level 4 – Marketing and Management

Table of Contents
1.0 Introduction................................................................................................................................1
1.1 Background of Company .................................................................................................1
2.0 Task 1.........................................................................................................................................2
2.1 Marketing Audit.....................................................................................................................2
2.2 SWOT Analysis.....................................................................................................................2
2.2.1 SOWT Analysis for ALDI..............................................................................................2
3.0 Task 2.........................................................................................................................................6
3.1 Marketing Objective..............................................................................................................6
3.2 Marketing Objectives for ALDI............................................................................................8
4.0 Task 3.........................................................................................................................................9
4.1 Marketing Mix.......................................................................................................................9
4.2 Importance of Marketing Mix...............................................................................................9
4.3 Marketing Mix of Aldi.........................................................................................................10
5.0 Task 4.......................................................................................................................................12
5.1 Customer Service.................................................................................................................12
5.2 Recommendations for Improvement of Customer service for Aldi....................................13
6.0 Conclusion...............................................................................................................................14
References......................................................................................................................................15
FIGURE 1 SWOT ANALYSIS (THOMPSON, STRICKLAND, GAMBLE AND PETERAF, 2019) 3
FIGURE 2 SWOT MATRIX (SWOT ANALYSIS, 2020) 5
FIGURE 3 SMART OBJECTIVES (ALEXANDER, 2007) 7
FIGURE 4 MARKETING MIX (KOTLER, ARMSTRONG, HARRIS AND HE, 2019) 10

1.0 Introduction
Marketing is an essential part of all the business organisation. It is one of the core functions.
Marketing is the way through which the needs and wants of the people that identified and
satisfied. Marketing management is the way through which all the activities of the marketing are
maintained (Kotler, Armstrong, Harris, and He, 2019). In the following report, as Marketing
Consultant, a marketing campaign for the Aldi will be prepared, which name is 'Expressing
Ourselves.' The duration of the campaign is 12 months. The marketing environment of Aldi will
be audited. SWOT analysis will take place, which will demonstrate the internal and external
factors of Aldi. After that, the primary objectives of the 'Expressing Ourselves' campaign will be
acknowledged. The targets will be SMART objectives.
1.1 Background of the Company
Aldi is one of the leading retailers in the U.K. Founded in Essen, Germany, in 1946. Karl and
Theo Albrecht are the two brothers who founded it by taking over their mothers' shop. Its
headquarters is at Essen, Germany. It is in the 5th position as the top retailers of the U.K. based
with 8.1% market share (U.K.: supermarket market share 2019 | Statista, 2020). It has more than
11000 stores in more than 20 countries.
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2.0 Task 1
2.1 Marketing Audit
Marketing is unique to the core tasks of every organisation. Philip Kotler, who is known as the
father of the marketing defined marketing as the process which satisfies the need and wants of
the people by exchanging goods and services with its monetary value. The entire marketing
process consists of some specific activities. Such as determining customers' needs and desires,
preparing the offering to satisfy the requirements of the clients, communicate the offering, and
analysing the competitors (Kotler, Armstrong, Harris and He, 2019).
To execute the marketing process, Aldi needs to develop a marketing plan, and a market audit is
an essential part of a marketing plan. Marketing audit represents a detailed, systematic study,
review, and understanding of the company marketing environment. It also analyses priorities,
objectives, tactics, concepts for recognising the problematic areas and opportunities. It proposes
an action plan to enhance the marketing efficiency of the company (Groucutt, Leadley and
Forsyth, 2004). There are many marketing Audit tools available for Aldi to use, such as SWOT
evaluation, PESTEL examination, Porter's five forces model (Baker, 2001). The SWOT analysis
used to audit the market of Aldi to help it develop a marketing campaign 'Expressing Ourselves.'
2.2 SWOT Analysis
SWOT analysis is one of the standard tools used by the manager to analyse the situation. It
provides a framework to determines strengths, weaknesses, threats, and opportunities of an
organisation which indicates the competitive position of a company and helps to prepare the
strategy based on the findings (Thompson, Strickland, Gamble and Peteraf, 2019). It analyses the
inside and outside factors of the company to determine the current and future potentials. Using it,
Aldi can overcome the challenges and identify the new opportunities to pursue. One of the
significant objectives of SWOT analysis is to assist the company in making the decisions.
2.2.1 SOWT Analysis for ALDI
SWOT analysis of Aldi given below:
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Figure 1 SWOT Analysis (Thompson, Strickland, Gamble and Peteraf, 2019)
Strengths:
 Aldi has one of the most influential retail distribution networks of the U.K., which helps
it to reach all the potential markets.
 Over the year, Aldi not only strengthened its distributor network but also made it supply
chain stringer. It has a mighty chain of suppliers of raw materials who help it to
overcome any supply chain problem (Aldi SWOT Analysis, 2020).
 Aldi is well-reputed in the U.K. and other countries, which helps it to get the customers
over the competitors. In the last couple of years, it won numerous awards, such as
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Moneywise Best Value Supermarket 2019, GHI Food Awards 2019, Mother and Baby
Awards 2019, Loved by Parents Awards 2019. (ALDI - Awards and Endorsements -
ALDI UK, 2020).
 The overall growth of Aldi is more than any other competitor, such as Tesco, Asda,
Sainsbury. It captured more market share than any other competitor.
Weaknesses:
 Aldi mostly provides value for money products as it is a discount retailer. However, due
to competitive pricing, it must reduce the price at a level where its margin gets incredibly
low and makes more dependent on the sale volume.
 Although the market growth of Aldi is high, its overall market share is still lower than the
other top four industry giants. The market share of Tesco, Sainsbury, Asda, Morrisons,
and Aldi is respectively 27%, 15.4%, 14.9%, 10.1%, and 8.1% (U.K.: supermarket
market share 2019 | Statista, 2020).
 Aldi is a leading retailer in the U.K. However, it is struggling in other countries and
facing challenges outside its core products and business.
 The employee turnover rate is higher than the average industry turnover rate at Aldi.
Opportunities:
 There are many Aldi's products which considered as the best alternative to high-end
products. Most of them were beauty and alcohol products. Aldi can keep making those
products which will create new opportunities for the company (ALDI SWOT Analysis |
Top ALDI Competitors & USP | Brand Analysis | MBA Study. Learn. Share., 2020).
 Overall customers' need and propensity to spend is increasing. Using this, Aldi can
increase its market share by offering new and premium range products to the customers.
 Using technologies can help Aldi to improve its services also it can reduce the job
pressure on the employees.
 Most of the stores ignore higher-income people. Aldi can create a different segment for
these customers with premium quality products and services.
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Threats:
 The growth of online shopping is possessing a threat to retailers. World's leading retailers
such as Walmart, Amazon has been taking over the grocery market of the world. This
created a danger of losing market share to these companies (Aldi SWOT Analysis, 2020).
 Other retailers who are behind Aldi in total market share, such as the cooperative, Lidl,
Waitrose, are growing at a high pace. If this continues, Aldi will end up losing its
position.
Figure 2 SWOT Matrix (SWOT Analysis, 2020)
SWOT Matrix
These are the strategies Aldi can use in its 'Expressing Ourselves' campaign
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S-O Strategies: Using S-O techniques, Aldi will explore the opportunities by using their
strengths. It will pursue the opportunities which it will be able to support by its advantages
(SWOT Analysis, 2020).
W-O Strategies: The weakness is the internal factors of the Aldi. It will be most desirable for
Aldi to minimise its weaknesses. So, it can overcome its shortcomings by pursuing its
opportunities.
S-T Strategies: The threats are external factors that can damage the operation of Aldi. That is
why Aldi must reduce risks. It can use its strengths to reduce its exposure to external threats
(Thompson, Strickland, Gamble, and Peteraf, 2019).
W-T Strategies: These are the most defensive strategies Aldi can take. Aldi can make strategies
to avoid internal weaknesses to make it vulnerable to external threats and cause loss.
3.0 Task 2
3.1 Marketing Objective
Marketing objectives are the outcome that the organisation wants to achieve from its marketing
activities. The purposes prepared, along with the overall organisational and corporate goals.
These objectives are the guidelines for the marketing team of the organisation. The managers
direct the groups according to the purposes and provide necessary information to review and
support them (Kotler and Keller, 2015).
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Figure 3 SMART Objectives (Alexander, 2007)
SMART Objectives
Specific, Measurable, Achievable, Relevant, and Timely objectives, in short, are called SMART
objectives in short (Alexander, 2007). The managers can use this tool can use to plan and achieve
goals. SMART purposes described below.
 Specific: The objectives of Aldi should be adequately defined. It must not contain
anything which will make it difficult to understand and make it ambiguous (Herridge,
2020).
 Measurable: The objectives should be made in a way so that the progress of the
company towards the goal can be measured from time to time.
 Achievable: The goals should not be impossible or unattainable. The company must set
its objectives by keeping its ability in mind (Alexander, 2007).
 Realistic: The objectives must not make, which sounds like a dream. The goals must be
within reach of the company and relevant to the organisational strategy (Thompson,
Strickland, Gamble and Peteraf, 2019).
 Timely: The well-constructed objectives must make on time. It should contain a timeline
with the starting date and the date within which it must achieve.
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3.2 Marketing Objectives for ALDI
These are the SMART objectives for Aldi's 'Expressing Ourselves' campaign, which it will try to
achieve.
1. Now Aldi is in the 5th position in the U.K.'s retailing market with an 8.1% share. Its
closest competitor is Morrisons which market share is 10.1% (U.K.: supermarket market
share 2019 | Statista, 2020). With the new 'Expressing Ourselves' campaign, Aldi will
reach the 4th position in the market by increasing market share by 4% and gain market
share of more than 12% within 1st April 2021
2. Aldi will develop an omnichannel presence with the 'Expressing Ourselves' campaign. It
will enable us to provide products and services simultaneously to the customers using
more than one channel. Using the Omnichannel, the customer will be able to shop and
communicate with Aldi simultaneously. Due to the increasing contagion Coronavirus, it
favoured by the customers to stay home go to the stores at that moment. Omnichannel is
the best way to serve the customer by online channels (Remain at home: instructions for
households with possible Coronavirus (COVID-19) infection, 2020).
3. Due to Brexit, it has become challenging to do business with other European countries. It
also made it challenging for retailers from other countries to carry on its operation in the
U.K. The price of the pound decreased in comparison to other countries. That is why the
products from the U.K. are looking cheap (Inman and Davies, 2020). Aldi will use this to
expand its business in other countries. Aldi has an operation in more than 20 countries
now with more than 11000 stores (Aldi Group - Company Profile, Information, Business
Description, History, Background Information on Aldi Group, 2020).
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4.0 Task 3
4.1 Marketing Mix
An essential part of every marketing plan is the marketing mix. Also known as the 7Ps of
marketing. The marketing mix is the set of actions which the business organisation uses to
identify the customer's need, offer a product to that need, and promote the products to the
customers. Product, price, place, promotion, physical evidence, people, and process (Kotler,
Armstrong, Harris and He, 2019).
Figure 4 Marketing Mix (Kotler, Armstrong, Harris and He, 2019)
4.2 Importance of Marketing Mix
The marketing mix is essential for Aldi for the following reasons:
1. The marketing mix helps the organisation to prepare all the elements of the marketing
mix in the way that each part is compatible with the other. For example, the price of the
products of Aldi should be consistent with the placement of the products. The marketing
mix provides a chain that helps to create a bond among the elements of the mix.Marketi
ng Mix
Marketi
ng MixProduct
s
Product
sPrice
PricePlace
PlacePromoti
on
Promoti
onPhysical
Evidanc
e
Physical
Evidanc
ePeople
PeopleProcess
Process
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2. Aldi will get support from the marketing mix in new product development. The process
of marketing mix development provides deep insight into various products and services
along with its price and promotional strategy, which encourages the process of idea
development and execution.
3. Aldi can increase its product portfolio with its marketing mix. Changing the features of
the products by launching new products means extending the product line and length.
New products require new pricing and promotional strategy. The marketing mix provides
the framework by adjusting which Aldi can launch new products and services.
4. The marketing mix provides the bases using which Aldi can create a differentiable
position in the market about the competitors. Comparing the competitors with its
marketing mix, Aldi can identify the area which makes it different from the other and can
use it to achieve a competitive advantage.
4.3 Marketing Mix of Aldi
The elements of the marketing mix of Aldi for 'Expressing Ourselves' campaign has debated
below:
Products: Products are the item that is created and produced by the companies to satisfy the
needs of the customers (Baker, 2001). Aldi has been extremely well-reputed for providing high-
quality products to its customers. Aldi there are a few it is in house varieties that provide various
food products such as Rich tea biscuits, Little Journey, Elevation, Simply Nature, Never Any,
Specially Selected, Choco rice, Fit & Active, and Priano. It provides a refund and replaces
guarantee to the customers for its in-house brands
Price: Price is the monetary value that the customers pay to consume the products and services.
It determines the revenue and profit of the company (What a Marketing Mix Is and Why It Is
Important to Your Business, 2020). The retail trade market of the U.K. is extremely competitive
with some healthy retailers such as Tesco, Asda, which generates so many choices for the
customers (U.K.: supermarket market share 2019 | Statista, 2020). That is why Aldi has kept the
price of the products low. Aldi uses value-based pricing and competitive pricing policy. To do
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that, Aldi first identifies the needs of the customers and the necessary take steps to connect the
needs and wants of the people with proper pricing.
Place: It is the point of sale of the company. It is the market from where the companies offer
their products and services to the customers (Groucutt, Leadley and Forsyth, 2004). Aldi is one
of the largest supermarkets in the world which has outlets in multiple places in the world. It has
more than 11000 stores worldwide in more than 20 countries. Aldi is preferred to open a store
where it will get the most visibility and has a minimum population of 30000 (Aldi Group -
Company Profile, Information, Business Description, History, Background Information on Aldi
Group, 2020).
Promotion: This is the collection of activities that are undertaken by the business organisation to
provide the customers with information about the products and services it offers (How to use the
7Ps Marketing Mix? - Smart Insights, 2020). Various advertainments and promotional strategies
are part of it. As Aldi is one of the leading global retailers, it uses multiple promotional methods
to communicate with the customers.
Along with its traditional marketing, Aldi has also used all modern technologies to promote
itself. It has increased its presence in social media like Facebook, Twitter, YouTube. It also
sends direct emails to the customers about various promotional offers.
People: People consist of an employee who is working to develop the products and make them
available to the customers. This also includes the skill of the people. Aldi arranges training and
development programs for the employees so that they can also serve as a force of competitive
advantages. It provides a good salary and other incentives to motivate the employees.
Process: This is the way through which products and services will deliver to the customers. The
entire process of Aldi aims to ensure the availability of the products. It uses automated
technologies that notify the system when the inventory levels are low (How to utilise the 7Ps
Marketing Mix? - Smart Insights, 2020).
Physical Evidence: It is the way through which the products provided to the customers. The
packaging of the products at Aldi are different and recognisable (What a Marketing Mix Is and
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Why It Is Important to Your Business, 2020). Its categories the products according to their
characteristics. Its shelves are coloured with different shades so that customers can easily
recognise them. The online store of Aldi is also very user friendly.
5.0 Task 4
5.1 Customer Service
Customer service is the collaborative approach of the business organisation to set the policies
which control the way the company and its employees interact with the customers (Goetsch and
Davis, 2004).
Customer service is a very significant part of marketing. For Aldi, it is essential for the following
reasons:
1. Customer loyalty is the primary determinant of the company's success. If the customer
service of a company disappoints its customers, they will avoid the company and start
preferring the competitors over the company (Overview: What Is Customer Service?
2020). On the other hand, it is customer service that can create a long-lasting profitable
relationship with the customers.
2. The customer retention rate is increased by customer service. If the customers are very
well treated during each interaction, they will feel motivated to do the business with the
company again and again and spend more money (Goetsch and Davis, 2004).
3. It generates a positive word of mouth publicity for the company. If a person is satisfied
with the overall service of a company, he/she will recommend the company to friends
and family. This is going to generate a great source of a potential customer (Overview:
What Is Customer Service? 2020). Customer service is considered a more effective
method of promotion than any other way.
4. Customer service is not only beneficial in the case of customers but it also helpful for
reducing employee turnover (Cook, 2008). The employee wants to work for the reputed
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companies which provide quality services to customers and appreciate the works of the
employee. The customer is the primary way to do that.
5.2 Recommendations for Improvement of Customer service for Aldi
Few of the ways beyond which Aldi can improve its customer service by 'Expressing Ourselves'
campaign:
1. The first pillar for improving customer service is understanding customer needs and
wants. As a retailer, Aldi must understand customers' needs and wants genuinely. That is
going to be going to help it to prepare its marketing plan and after-sale service (Sharma,
2020). Aldi must make itself so that no customer leaves empty-handed and develop the
customer service, which will meet their expectation.
2. The customer must be treated equally and respectfully despite their race, religion, colour,
and other personal characteristics. Aldi must not be biased towards any specific class of
people.
3. The promise Aldi makes to its customers must be satisfied. These are the promises which
make the customer trust the brands (Cook, 2008). Failure to deliver the promised service
will make the people consider Aldi as a fraud.
4. Aldi needs to handle the complaints and returns more gracefully. The claims are the
result of the failure of Aldi to meet the customers' expectations. It is going to be the
source of information that leads the organisation towards the area of improvement. That
is why feedback and complaints should be taken positively and try to avoid future
recurrence.
5. Finally, the customer service of Aldi must exceed the expectation of the customers
(Sharma, 2020). It should use all its effort to make the customer smile and motivate them
to return to their shop.
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6.0 Conclusion
The entire report provided a deep insight into various aspects of marketing management. Aldi
will be able to achieve success in its 'Expressing Ourselves' campaign if it follows all the
findings of the report accurately. The market audit identified all the internal factors such as
strengths and weaknesses and external factors such as opportunities and threats. Aldi can use S-
O strategies as its shortcomings are few, and the pursuing options can reduce its exposure to
external threats. The SMART aims should effectively communicate throughout the entire
organisation and marketing department so that all the forces in the organisation can work
together to achieve those.
Moreover, any change in any of the elements of the marketing mix must be supported by
analysing its impact. On other aspects so that the entire combination can work together
collaboratively. Moreover, there is always enough room for improvement. Based on the
customers' preferences, the customer services can be improved by Aldi by implementing the
'Expressing Ourselves' campaign.
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