This document provides a detailed 12-month marketing campaign plan for Aldi, a popular supermarket chain. It includes the construction of a marketing TOWS analysis, setting marketing objectives, outlining a marketing mix plan, and strategies for improving customer service.
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Expressing ourself A 12 months marketing campaign plan for Aldi
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Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 Construction of Marketing TOWS for the company along with marketing audits in doing so...1 As per findings, three marketing Objectives along with justification which should be set for the organisational campaign........................................................................................................4 Outlining and examining Marketing Plan for attaining objectives over period of 12 months.. . .5 Proposals related to how company can improve their customer level services that are part of the marketing campaign..............................................................................................................7 CONCLUSION................................................................................................................................9 REFERENCES..............................................................................................................................10
INTRODUCTION Marketing management is all about making decision for planning, arranging addition to initiate marketing programmes, tactics with strategies effectively, for satisfying demands of services or commodities of company in market(Aarikka-Stenroos and Ritala, 2017). The concept basically deals with providing goods to audiences against the worth of price they are willing to pay. It assist in setting goals, developing plans, organising activities and functions, putting strategies in action addition to monitor programmes that are all related to marketing. For understanding marketing management, Aldi Supermarkets is chosen which is family owned supermarket chain having headquarters in Germany. The company offers variants of household essentials addition to groceries at its different locations. Its managers have planned to run intensive marketing campaign having tag-line of “Expressing Ourselves” between 1stMay 2020 to 30thApril 2021. The report constructs Marketing TOWS along with marketing audit which is undertaken to do so. It further involves three marketing objectives that must be set on the basis of findings for the campaign over 1 year period. Along with this, it also outlines and examines marketing mix plan for achieving objectives. At last, a proposal is provided for improving customer service level as part of campaign. MAIN BODY Construction of Marketing TOWS for the company along with marketing audits in doing so. Introduction of organisation: Aldi supermarkets is popular brand within retail industry that was established in 1946 in Germany. It was set by Karl as well as Theo Albert. The entity is family owned business that runs discount supermarket chains in more than 20 countries and have approx 1000 stores. The firm have decided to run intensive marketing campaign over 121 months and for this TOWS analysis is constructed with explanation of marketing audits: TOWS Analysis and explanation of marketing audits TOWS analysis is strategic planning tool that examines organisational external threats with opportunities and then compares with internal strengths with weaknesses(TOWS Analysis 2020). With this analysis, strategies are generated, compared as well as chosen to move forward. It is a method of strategic analysis which includes systematic addition to comprehensive assessment of factors that are present inside and outside for determining existing competitive position addition to potential of organisational growth. Companies generally adopt the analysis 1
tool to map out strategic options they have and then select suitable strategies to gain objectives. In case of Aldi supermarkets,marketing consultant via combining external environmental threats and opportunities with internal business weaknesses and strengths proceeds workings for obtainingbasicstrategies.Whileauditingthemarket,marketingconsultantofAldihas performed various activities to generate the Marketing TOWS for organisation. The consultant analysed external business environment along with internal organisational factors. The TOWS analysis with marketing audits for Aldi are the followings: INTERNAL FACTORS EXTERNAL FACTORS Strengths (S) Strong customer base Innovationand automation Weaknesses (W) Highattrition ratein manpower Gapsin product range Opportunities (O) Setting premises in new market Launching marketing campaign SO (Maxi-Maxi Strategy) WO (Mini-Maxi Strategy) Threats (T) Intense competition Newtechnologies development ST (Maxi-Mini Strategy ) WT (Mini-Mini Strategy ) Strength - Opportunity:It is the situation in which marketing consultants apply Maxi- maxi strategy after analysing internal strengths and external threats. In association to Aldi, from the TOWS Analysis it is analysed that the company have strength of strong customer base addition to Innovation with automation(Cegliński, 2016). At same time, external opportunities are, launching marketing campaign and setting premises in new market. The managers of firm 2
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will use the strength in order to grab opportunities such as with innovation and automation it can set a new store in some different location where they have no market share and this will help in expansion. So, the strengths are majorly used for working towards availing opportunities effectively. Weakness-Opportunity:Herein,Mini-Maxistrategyisappliedafteranalysing weaknesses of company and external opportunities. From the analysis, it is seen that Aldi has certain weaknesses that are high attrition rare in personnels and gaps in introducing product range. The firm can use its opportunities for mitigating the weaknesses(Chang, McAleer and Wong, 2018). Aldi managers through delegating roles and responsibilities to the manpower while launching campaign and position them in new stores can motivate workforce to remain with entity. With this, this they can reduce attrition rate among workforce. At same time, by launching new marketing campaign it can also generate ideas about the gaps in which it have to introduceproductrange.Throughthis,organisationcanmitigateitsweaknessesthrough grabbing the opportunities. Strength – Threat: In this situation,Maxi-Mini Strategy is implemented by business concerns to exploit strengths in order to overcome threats. In association to Aldi, it can overcome the threats related to intense competition and new technological development through exploiting strengths of innovation and automation as well as strong customer base. When marketers audit the situation then they came up with various aspects toretain the customers through offering products at least price which will help in making competitive position and facing fierce competition smoothly. Along with this, they can also innovate and automate existing or new products in order to overcome threats from new technological development. Hence, strengths and threats are interrelated as exploitation of strengths results in overcome from threats. Weakness/ Threat: Herein,Mini-Mini Strategy is implemented by companies to relish using weaknesses for overcoming threats. As per the analysis, Aldi has some weaknesses that it can use for the purpose of overcoming threats(Forkmann and et.al., 2016). In this case, managers can overcome the threats and weaknesses through launching a campaign in which they will make tasks for employees and motivate them with rewards which will stimulate them to work with it only. Moreover, launching a campaign will also help in dealing with fierce competition as well as new technologies development as the campaign will attract large customers and will make make unique image of company that will help in overcoming from 3
threats. While auditing market, marketing consultant analysed that weakness and threats can be overcome through effective strategy. As per findings, three marketing Objectives along with justification which should be set for the organisational campaign From the above findings, Aldi can set various objectives for its marketing campaign that is “Expression Ourselves” that will be run between the duration of 12 months. Following are some of its objectives along with justification: To increase sales by 20% in 6 months: Sales plays essential role in success of company and its programme. It bridges gap among potential needs and choices of customers with the offerings of organisation to meet the needs. The objective of increasing sales by 20% in 6 months should be set by Aldi for the intensive marketing campaign of “Expressing Ourselves”. It is because its other operations are totally dependent on sales and when it will attain success in it then will be able to smoothly conducting various operations. Along with this, more sales through the marketing campaign will help in generating profit and new accounts for business. Another reason for setting the objective is when in initial duration sales objective will be achieved then less efforts will be required in further time(Goryushkina and et.al., 2016). The objective will also enhance capacity, capability and focus of sales team and will motivate them for initiating new ideas to market the product. To improve customer base by 26% in 5 months: The company has huge customer base against competitors. It should be set for its upcoming marketing campaign because satisfying more customers and transferring local customers as potential one will strengthen brand image of business that will lead in gaining competitive position. Along with this, Aldi has restricted customer base in high income segment and it should be an objective of the business to meet demands of the segment and improve its shares in 5 months. With the objective of “Expressing Ourselves”, it will be able to introduce its new or exiting commodities in wider market over the 12 month duration. Improved customer base also provide a support to gain popularity and various opportunities to reach more people along with expanding base(Homburg, Jozić and Kuehnl, 2017). It will make customer loyal and diverse other opportunities can also be grabbed for further durations. To enhance profit margin by 25% in 3 months: High profit margins show better financial position and performance of entity. It states the quantity in which revenues are flowing 4
to bottom line. For the marketing campaign of “Expressing Ourselves”, Aldi should set the objective to enhance profit margins by 25% in 3 months as it will provide a roadmap to drive in campaign in effective mode. When it will set high financial target for upcoming duration then it can keep its costs in control and also maintain revenues. Moreover, setting objective for profit also help in setting appropriate strategies for the commodities to be introduced and offered in the campaign that will provide right path to work. Together with it, it will also assist in controlling various costs and setting performance benchmarks that will ensure that the campaign will gain success in upcoming duration(Illiashenko and Strielkowski, 2016). Outlining and examining Marketing Plan for attaining objectives over period of 12 months. Marketing mix plan is all about offering products in successful manner to targetted audience. In this plan, major strategies are set by businesses that will help in working towards attainment of the determined objectives. Following is the elements of marketing mix plan that needs to be undertaken by marketing consultant of Aldi so to achieve the above mentioned objectives over 12 month period: Product: It is the offering of company in market. Aldi offers qualitative commodities to potential audiences. Its managers takes special care for maintaining quality of the products. It stocks fresh vegetables, fruits and quality of household essentials, stationery, clothes, cosmetics and various others(Järvinen and Taiminen, 2016). In the marketing campaign of “Expressing Ourselves”, the managers will make attempts to promote and sell all its products in attractive manner which will help in increasing sales and achieving profits. In addition, it will also remove the unprofitable products and will focus on promotions of those commodities that have huge position in the market. When more number of products will be offered in market, they they will attract huge customers, increase sales and improve profit margins. So, with the help of this all the set objectives will be attained on set durations. Price: It refers to quantity of payment which are paid by another party against acquiring units of commodities. It is the value which companies put to their offerings. Effective pricing strategy determines accomplishment of objectives before deadlines. Aldi has huge and strong customer base because of reasonable prices along with offering own brand commodities that are not available with rivals(Kireev and et.al., 2016). In the marketing campaign, some slight changes will be done in the pricing strategy of Aldi products so that its prioritise objectives will be achieved. The company will use market penetration strategy so that it can enter into new 5
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market of higher income segment by charging relative high prices and gain market shares quickly.Along with this, itwillalso use psychologicalpricingby makingsome minor differences in the product pricing which will make huge differences in mindset of customers and this will attract large customers and huge profits. With this, all its objectives related to customer base, profit margin and sales will be attained in the determined durations. Place: It is the location wherein productions are offered to customers. Aldi has around 1000 stores in diverse number of countries. Its store layout are simple and attractive. The company procures bulk from multiple vendors or suppliers and then store them in warehouses along with ensure to maintain quality of all commodities(Krasyuk and et.al., 2017). In case with marketing campaign, it will be organised in its stores that have official presence and will maintain regional appearance. They will also promote and sell the commodities on various online sites in which customers will make purchase from their homes and will also get products at their doorstep that will increase customer base, sales volumes as well as margins of profits to huge extent. Promotion: It is the marketing communication through which target audiences are informed and persuaded for purchasing products. It is performed for increasing awareness, generating sales, building interest along with brand loyalty. Within the marketing campaign, marketing consultant will use existing communication methods for communicating about the intensive campaign to wide located customers. For this, it will adopt above the line addition to below the line promotional strategies for purpose to lure huge customers and improving sales. Moreover, various slogans, leaflets are also prepared for promotion for campaign which will be shown through television and posters that will result in mass attraction of customer base and improvisation in sales volume that will lead in attainment of objectives over 12 months. Physical evidence: It is the element that are incorporated in product for making them tangible along with measurable(Kumar, 2016). With this, brand is positioned and assist in targetting right types of audiences. In “Expressing Ourselves”, Aldi mangers will provide suitable ambiance and comfortable store layout that will boost sales volumes of commodities and margins of profit for the commodities that will be offered in it. This will help managers of the company to attain the set objectives fro the campaign over 12 months period. People: It refers to the individuals which are tasked to support commodities as capacities or service providers. People are the one who makes relations with customers, provides them 6
products and overall experiences. In context to the marketing campaign, marketing consultant will hire new candidates and will also train existing and new ones for undertaking roles to achieve success. They will make make effective teams including promotion team, sales team, customer service team and so on that will focus on implementing actions and achieving respective objectives. When all these perform activities in coordination then all the determined objectives will be gained in determined duration. Process: It covers direct addition to indirect activities which delivers value in market. All the procedures which are involved to deliver organisational offerings to customers are termed as process(Lambert and Enz, 2017). For the marketing campaign, Aldi managers has designed a sheer layout in which different segments will be made for the products that will be ease for customers to find suitable one in limited time and requires minimum assistance of employees. Along with this, it will also createbar codes for products that will help in quickly identifying them and making fast billing. This process has wide chances of strengthening customer base along with enhancing sales volume also that will be the results of objective attainment. Proposals related to how company can improve their customer level services that are part of the marketing campaign. Proposals for how Aldi can improvise customer service level as part of marketing campaign that is “Expressing Ourselves”. Customerservicelevelarethedifferentstagesinwhichentitiesfocusesondelivering professional, high quality and assistance services to met requirements of all the audiences effectively. An entity is required to focus on wide aspects for strengthening or improving customer service levels that are part of the business. These service levels assist to retain customers along with extracting huge values from them. Through delivering top-notch services, organisational managers recoup acquisition costs as well as cultivates loyal followings from audiences. By hiring talents and skills, marketing consultant can provide quality of customer service levels to the refereed customers. Moreover, following are some of ways in which customer service levels can be improved by Aldi that are part of the marketing campaign: Level 1:Unacceptablelevel: It is the customer service level in which offered services are nor up to the mark or customers are disappointed with offerings. In this level, customers feels that they are provided bad services at any level. To improve it in “Expressing Ourselves”, 7
management of Aldi needs to look at all the touchpoints, strengthen customer interactions, enhancing strategies and works on the feedbacks that are provided by customers(Salo, 2017). When major changes are made by the entity in the existing strategies as per the feedbacks then they will be able to improve the customer service level at huge extent. Level 2:Basic Level: The another customer service level in which customers have perceptions related to offered commodities at minimum standards. In context to the marketing campaign, marketing consultant of Aldi can improve the level through creating memorable experiences, providing rewards and additional discounts to potential customers and offering various support. Along with this, adopting of relationship marketing strategy will also help on improving it as with this all the choices and interest are analysed so that workings are done by company to improve the all. When the set activities are implemented then there will be huge chances of improving the customer service level(Skorobogatykh and et.al., 2016). Level 3:Good Level: The service level of customers in which they are satisfied with the offered commodities by entity. For improving the level, Aldi administrators should respond quickly on feedbacks and leverage omni channels to provide quality of items with multi channels. Furthermore, when some changes are made in distribution system then customers perceives satisfactions from commodities which will result in improving good customer service level that is major part of “Expressing Ourselves”. Level 4:World Class level: Level of customer service that attains big jump from belong satisfactory aspect. It is the level which exceeds expectations of customers along with builds loyalty among them. Potential clients have wide preferences for offered products and perceives the company as great. In context to the Aldi, the service level can be improve through designing customer valuables along with making comparison of them with the other companies have already initiated similar marketing campaign. Furthermore, with adoption of differentiation marketing strategy, commodities which are totally different and unique are offered in the marketing campaign will result in improving it. Level 5:Trademark level: Customer service level in which the entity is considered as industrial benchmark for various great services and commodities. It is major part of a marketing campaign as the customers generally compares the entity and the campaign with others. In case with marketing campaign of Aldi, the service levels can be improve through adopting CRM platforms so that the working of all employees will be analysed and standards will be set to 8
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deliver high level services(Yang and Gabrielsson, 2017). With the help of above mentioned aspects, managers of Aldi can improve customer service level which are major part of its marketing campaign which is “Expressing Ourselves” for duration of 12 months. CONCLUSION The business report concludes that management of marketing is about setting goals, developing plans, organising activities and functions, putting strategies in action addition to monitoring programmes that are all related to marketing. With TOWS analysis, strategies are generated, compared as well as chosen to move forward. Marketing objectives provides path to work towards successful aspects. Marketing mix plan describes about the ways company uses its elements to achieve objectives. There are numerous ways in which different customer service level are improved using distinct aspects that are main parts of organisational activities and events. 9
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