Business and Marketing Communication | Aldi Case

Business and marketing communication

Business and marketing communication 1
Contents
Task 1....................................................................................................................................................2
History of Aldi...................................................................................................................................2
Organizational structure....................................................................................................................2
Vision and mission statements...........................................................................................................2
Core values and beliefs......................................................................................................................2
Product portfolio offered...................................................................................................................2
Task 2....................................................................................................................................................3
Potential competitors in New Zealand...............................................................................................3
Task 3....................................................................................................................................................4
SWOT analysis on ALDI...................................................................................................................4
Task 4....................................................................................................................................................6
ALDI’s current marketing strategies..................................................................................................6
Segmentation strategy....................................................................................................................6
Targeting strategy..........................................................................................................................6
Positioning strategy.......................................................................................................................6
Task 5....................................................................................................................................................7
Tactical marketing strategies.............................................................................................................7
Product strategy.............................................................................................................................7
Price strategy.................................................................................................................................7
Place strategy.................................................................................................................................8
Promotion strategy.........................................................................................................................8
Task 6....................................................................................................................................................9
Digital marketing communication strategies for ALDI New Zealand................................................9
Task 7....................................................................................................................................................9
Significant negotiation tactics to be applied......................................................................................9
References...........................................................................................................................................11

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Task 1
History of Aldi
Aldi (Albrecht Discount) was initially established in Germany in 1913. Aldi was
expanded into four stores in 1948. The first store of Aldi was opened in 1976 in South-
eastern lowa. Aldi is recognized for its low prices and no-frills store design. The majority of
groceries are carried with the private level which assists in offering low prices. The stores of
Aldi have a cart-rental system to eradicate the time spent retrieving carts.
Organizational structure
The organizational structure of Aldi comprises the distribution of power, decision-
making capabilities along with the definite roles and accountabilities within the company.
The organizational structure of Aldi is made up of the bureau of the president, vice
presidents, corporate, divisions, operations, warehouse and logistics, divisional office and
real estate. The corporate is made up of directors, managers, and personnel.
Vision and mission statements
The vision statement of Aldi is “Top quality at incredibly low prices-guaranteed”. The
company has attained 5 philosophies such as great savings, outstanding value, superior
quality, superb special buyers and purchase with confidence.
The mission statement is to offer products to the customers which they purchase
regularly along with ensuring the quality of the products at the guaranteed low prices.
Core values and beliefs
Aldi exists to offer the best value to the clienteles. The core values of Aldi comprise:
 Consistency
 Simplicity
 Responsibility
Aldi believes in inspiring people to accomplish remarkable things and working together
for the customers and community.
Product portfolio offered
The product range of Aldi meets to the specific dietary requirements, interests, and
concerns.

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 Simply nature: Simply nature line provides almost 200 regular products with primary
organic foods.it includes product ranges like honey, cereal, pasta sauce, fruit bars and
fresh and dairy items.
 LiveGfree: This product category is certified by the approved organization which
validates that level of gluten is less than ten parts per million.
 Never Any: This product category includes a line of meat products that have no added
hormones and antibiotics.
 Earth Grown: Earth Grown includes a line of vegan and vegetarian products for the
buyers looking for plant-based options.
Task 2
Potential competitors in New Zealand
Aldi will have two major opponents in the New Zealand market, Countdown, and Fresh
Choice. Countdown was established in 1981 and has over 184 stores in New Zealand. The
company is assisting to over 2.5 million people in New Zealand with more than 20,000
different products.
Strengths
 Countdown is having the greatest number of outlets and distribution centres along
with the supply chain units. The organization inspires the integration and development
of required invention relied on the advancement of the online foodbank.
 Cohort of customized product aids and loyalty cards to enable retail operations in a
customised fashion. Along with the customized products, Countdown concentrates on
supporting the natural environment by minimizing its influence on nature.
Weaknesses
 Countdown faces potential challenges concerning the failure of the process of
EFTPOS machines. These machines made clienteles face obstacles in inspecting
counters.
 The organization is having unsatisfied customers due to EFTPOS machines on social
media networks.
Fresh Choice was formed in 1995 and is owned by Woolworths New Zealand. Fresh Choice
is having a chain of locally owned and functioned New Zealand supermarkets.

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Strengths
 Fresh Choice has attained competitiveness in the form of best and most premium
brands. The inventive system of the brand is capable enough to overwhelm the
weaknesses existent in the business integrally.
 The organization has attained strength in the form of raw materials. Fresh Choice
obtains raw materials from the local farmers.
Weaknesses
 Fresh Choice charges premium prices for most of the portfolio products. It increases
overall revenue but lessens the affordability of the items.
 The organization is having imitable products. Various items of the product portfolio
are imitated by completion. Moreover, the items are offered at different price points.
Task 3
SWOT analysis on ALDI
Strengths
Great performance: Aldi has obtained success due to its policy of offering a discount to the
customers. Moreover, the organization has expanded in various nations which have helped in
building new revenue streams along with diversifying economic cycle risk in the market. Aldi
has been able to survive due to offering products at lower prices. The organization sells
regular usage products at the price lower than the competitors (Juska, 2017). The lower
pricing policy of Aldi has made it successful even in the newly expanded markets.
Good product mix: Aldi has attained its biggest strength in the form of a robust product mix.
Over the years, the organization has invested in creating a robust brand portfolio. The product
portfolio has a great role when it comes to making an expansion. The organization is having
key components like general produce which takes over 25% of the total shelf space.
Moreover, Aldi is having finest brands that are not reduced like private label brands. The
highly discerned products and brands under each product class lead to the strength of the
product mix (Mortimer, 2016).
Weaknesses

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Low margins: Aldi is flourishing on the low margins and is relied on the sales volume.
Generally, the company has to support unethical practices such as price discrimination to
have consistent margins. Aldi does not compromise when it comes to quality but it certainly
has to make changes in the quantity. The lower pricing strategy of Aldi generally results in
low margins. Practicing it in a long period can affect the proceeds of Aldi, irrespective of the
nation where it operates (Nagle & Müller, 2017). Moreover, the organization has to upsurge
the prices of convinced products such as basic groceries comprising milk and fruits. But fall
in the pound can detract the company from its recognition.
More investment: Aldi has to do significant investments in promotions to expand in the new
market. Although a greater investment is done on integrating the process across the board.
But promotions also require to attain insight into the new market. The company is already
having a limited margin due to lower pricing strategy. The investment in promotions puts a
burden on the financial perspectives of the organization (Jani, et al. 2018).
Opportunities
Product advancement: Several products of Aldi has attained a popularity for being greater
substitutes to high-end products. For instance, Aldi gin has been named top in the globe by
specialists costing less than £10 and Lacura exfoliating masks costs £39. It represents the
prospects for Aldi to advance and expand such product category. The product strategy of the
company offering in-house brands results in greater margins along with the creation of more
opportunities.
Social media: There is a new trend in the sales of the e-commerce industry. Other than the
traditional, Aldi has attained opportunities to do promotions through social media channels
such as Twitter, Instagram, and Facebook (Jayawardhena, Morrell & Stride, 2016). The
additional online channels in the promotion strategy of Aldi can create a significant increase
in the number of monthly active users.
Threats
Competition: The intense competition in New Zealand can become a threat to operating in the
local market there. The stable profitability has progressed to several players in the retail
industry of New Zealand. It will put downward pressure on the profitability and entire sales
of Aldi in New Zealand (Vroegrijk, Gijsbrechts & Campo, 2016). The pricing strategy needs
to be modified regularly to compete in the market.

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Seasonal products: Aldi focuses on making available daily usage products on nominal prices
than focusing on seasonal products. The seasonal products require special attention other than
the higher margins (Papadas, Avlonitis & Carrigan, 2017). The company is not able to offer
more of the seasonal products as inhouse products have less to do in it.
Task 4
ALDI’s current marketing strategies
Segmentation strategy
Aldi will concentrate on customer demographics, lifestyle, and purchasing power.
Demographic: Aldi will focus on the people aging eighteen and more who are economically
independent. This segment will comprise lower-income earners. There will be a diversity race
and social class focused will be of the middle class (Voigt, Buliga & Michl, 2017).
Lifestyle: Aldi will provide products according to the lifestyle of people in New Zealand. The
customers prefer to buy products packed in ecologically friendly packing and locally formed
fruits and vegetables.
Purchasing power: The customers in New Zealand like good quality products at cheaper
prices. Aldi will not require well known advertised brands for this (Isselmann DiSantis, et al.
2017).
Targeting strategy
Once the large diversified market of customers is divided into smaller groups with
homogenous characteristics, the company will choose the target market in New Zealand. The
segment will be targeted by the company whose requirements and anticipations match the
resources and capabilities of the company. The organization will target by assessing the
commercial attractiveness and growth potential of identified segments (Peeroo, Samy &
Jones, 2019).
Positioning strategy
Aldi has attained differentiation in the form of its private label. The organization is
having a 95% range of its private-label only. Aldi offers everyday low prices which are low
and almost 30% cheaper.

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Task 5
Tactical marketing strategies
Product strategy
Aldi has attained popularity in offering quality products to the customers. The
organization undertakes special measures to sustain the quality of the products. Aldi in New
Zealand will provide in-house brands. The organization sources products from the selected
suppliers and brand it as its particular to have complete control over the production and
ultimate cost (Schmid, et al. 2018). It enables Aldi to lower prices of the products as
compared to the rivalries. The in-house brands of ALDI will comprise Little Journey, Rich
tea biscuits, Simply Nature, Specially Selected, Never Any, Choco Rice, Fit and active and
Priano. Aldi is confident of its in-house brands that these assurances to substitute and
recompense if not liked by the customers.
Aldi will also sell other branded products. The company will maintain food products
and beverages along with stocking fruits and vegetables, clothes, health and beauty products,
electronic products, domestic goods, and soft tools. The organization will even modify its
product line according to the seasons. Aldi will also sell brands according to the preference of
the customers in New Zealand. So, the organization will add the brands preferred by the local
customers of New Zealand (Brinkley, et al. 2019).
Price strategy
Aldi believes in offering quality products at lower prices. The organization will
exercise a lower pricing strategy in New Zealand. For instance, offering products of regular
usage at low prices will assist in maintaining loyal customers. This aspect will work as

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organization targets the customers belonging to the middle and lower class. It will even help
to ALDI in facing competition from the rivalries in the local market of New Zealand (Haleem
& Jehangir, 2017). The organization buys in bulk which offers it an further leverage in
conveying the best conceivable prices.
Aldi will have a competitive market in New Zealand and the customers will have a
greater choice. So, the organization is going to keep product prices subsequently lower than
the rivalries. Aldi will even go for a competitive pricing strategy to increase sales in the New
Zealand market. It is effective in market penetration. It will assist in generating better
volumes along with resulting in the creation of greater revenues (Schwarzkopf, 2019).
Place strategy
Aldi is having operations worldwide. The organization has almost 10,366 outlets in 20
nations such as the UK, Switzerland, the US, Spain, Slovenia, Poland, Italy, Germany,
Netherlands and more. Aldi is famous for keeping its store outlets modest to restrict waste
and keeps costs low. This way, the organization can concentrate on offering the lowermost
prices to the customers. Aldi has decided to expand in New Zealand; therefore, it is required
to undertake several people visiting the local area along with the demographic of the area.
The organization also needs to concentrate on the authority of the town center sites having
good discernibility from the main road with less competition (Grundy, 2017).
Aldi will make use of Push marketing techniques involving manufacturers to provide
impetuses to the retailers, for instance, an organisation to provide products to the end
customers. In the concern of distribution, logistics majorly comprises design, planning,
management, harmonization and enhancement of the procedure of moving goods and
services. The logistics will contribute to almost 50% of the distribution costs.
Promotion strategy
Aldi will make use of traditional promotion mix strategies in the market of New
Zealand such as advertising and newspaper. Aldi will advertise on television in New Zealand.
The ‘Like Brands’ of Aldi will feature twenty-second TV adverts to concentrate on the
specific product. The advertisements will show a famous brand as a standard for quality
along with the Aldi brand product. Aldi will make use of motto such as ‘Like Brands. Only
Cheaper’. The company will use humor to construct trust and an emotive connection with the
target audiences in New Zealand (Szymura-Tyc & Kucia, 2016).

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Newspaper adverts in New Zealand will spread the ‘Like Brands’ campaign and will
reveal a diversity of product categories. The company will also interconnect its switch and
save the message. Such campaigns validate the amount which customers could save if
customers swap their weekly shop to Aldi. The customers in New Zealand will compare
products of Aldi to other prevalent brands to signify Aldi’s value for cash message.
Moreover, Aldi will offer ‘super buys’ proposes which are obtainable till the stock will last.
The stock will change every week and the customers will be communicated through a weekly
newsletter recognized as ‘Aldi informs’. It will be handed over to the clients in stores or they
will be reached through direct mail or newspaper (Azeem, et al. 2019). Aldi will even inform
the customers through the newspaper about the ‘special buys and new products.
Task 6
Digital marketing communication strategies for ALDI New Zealand
Aldi will make use of digital marketing communication strategies in New Zealand.
The organization will focus on the 6C model of social media engagement comprising
organisation, content, control, community, customers, and conversations. Aldi will put
content on social media channels such as Facebook, Twitter, YouTube, Pinterest and more.
The organization can promote its products by providing inducements and inspiring followers
to cooperate with the posts. The social media team of Aldi will inspire followers to like and
comment on the posts to win a chance or vouchers for the product. It can even boost the
engagement of the page (Vandevijvere, et al. 2018).
Aldi has also decided to put social media posts around cyclical and social events. The
company will provide products according to festivals and events. The organization will also
use state days and popular events like ‘world baking day’ to endorse products. Aldi can even
huge hashtags on Twitter and can represent that using humor can be a prodigious strategy for
social media interaction. The company can also run an effective competition by using Twitter
feed by asking followers to retweet a message to win a chance (Gbadamosi, 2016). On the
other hand, Aldi can even go for a social media campaign. The social media campaign across
the channels can concentrate on inspiring customers to switch from their usual grocery store
to Aldi in its place.

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Task 7
Significant negotiation tactics to be applied
According to Hofstede’s dimension, the power distance of Germany is 35 represents
that it is a lower power distance nation. On the other side, New Zealand is having low power
distance which is 22. Aldi in New Zealand can rely on the employees for attaining popularity.
The communication will be informal, direct and participative in New Zealand. German is an
individualist nation. It focuses on the notion of self-actualization with a score of 67. On the
other side, New Zealand is having 79 scores in individualism. The employees show initiatives
in New Zealand. So, Aldi does not need to worry as local employees can assist Aldi is
making progress.
German is a masculine society with a score of 66. The performance is greatly valued
here and the managers are decisive and self-assured. Though, New Zealand is also a
masculine society with a score of 58. The nations provide a basis for hiring and conflicts are
resolved on an individual basis. When it comes to uncertainty avoidance, the notch of New
Zealand is low i.e. 49 which does not show partiality (Favaretto, Musse & Costa, 2019).
Germany has a strong propensity to save with a high score of 83. So, Aldi provides a
good percentage of discounts to customers. New Zealand scores 33 in the long-term
orientation dimension which represents a comparatively small tendency to save for the
forthcoming. In the indulgence dimension, Germany has a low score of 40 indicating the
amount to which persons try to regulate their wants. Although, New Zealand is having a
score of 75 defining desire to have regard to enjoying life. So, Aldi can provide quality
products in New Zealand along with private labels.

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