Marketing Management: ALDI Marketing Audit and Objectives
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This report provides an in-depth analysis of the marketing audit and objectives of ALDI, a global supermarket chain. It covers topics such as TOWS analysis, marketing mix plan, and strategies to improve customer service. The report aims to enhance sales, attain competitive advantage, and increase market share for ALDI.
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Table of Contents INTRODUCTION...........................................................................................................................3 TASK...............................................................................................................................................3 Audit and marketing audit...........................................................................................................3 TOWS Analysis of ALDI...........................................................................................................5 Marketing Objectives..................................................................................................................6 Marketing Mix plan.....................................................................................................................8 How ALDI can improve customer service level.........................................................................9 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................11
INTRODUCTION Marketing management refers to a process which includes planning, pricing, executing, promoting as well as distributing goods and services with the main aim of satisfying customers need & wants within given time frame. ALDI is the base organisation chosen to complete the report in an effective manner(Deepak, and Jeyakumar, 2019). ALDI is a supermarket chain established in 1946 by Theo Albrecht and Karl mainly deals in high quality home essentials as well as groceries. It is said that the company mainly deals in all over the world where they have more than 12,000 stores. It has been decided by the management team of ALDI that they conduct a 12 month marketing campaign which is done in the tenure of 1stMay 2020 to 30thApril 2021. The tag line decided by the managers of ALDI is “Expressing Ourselves”. In this report various elements are going to be covered such as TOWS and PESTLE analysis. Along with this, marketingobjectivesaregoingtobeformulatedforthecampaignnamedas“Express Ourselves”. At the end, Marketing Mix plans as well as strategies are going to be discussed which assist in enhancing the services given to the consumers. TASK Audit and marketing audit Audit refers to a systematic analysis of different types of records, documents, vouchers, accounts of an organisation.a company. Reason behind doing an audit is to examine how far both financial as well as non-financial statements of the company perform their work or whether there is any kind of requirement to modify strategies for gaining more profitability. A marketing audit refers to a comprehension investigation & examining marketing goals and activities (Bagozzi,and et. al., 2018). The main reason behind conducting this analysis is to identify the methods in which efforts for marketing are being planned. Two parts of Audit marketing External environment:It is generally conducted by the managers of an organisation in order to examine all the external factors which influences the overall functionality of the company. In this context managers of ALDI adopt PESTLE analysis(Mennicke, 2018). All the elements of this framework are going to be discussed as follows: Political Factor: It includes all those elements which consist of taxation policies, monetary policies, political stability and many more. In reference to ALDI, it has been examined
that large number of outlets are established in the marketplace of Europe and United States which is currently free from any sort of government issues. Therefore, the marketing campaign which is going to be organised by the management team can easily be executed in companies such as UK & Europe but on the other hand they might face some issues while doing marketing campaign in countries such as Australia & China. Economical Factor: All these factor which directly linked with the economy of a nation or country comes under this factor. It includes inflation rates, economic condition as well as interest rates. In context of ALDI, it has been analysed that the marketplace of grocery items has been increased as individuals are willing to pay huge amount of money. With the help of conducting a marketing campaign, organisation can easily promote high quality products at the marketplace. Social Factor: It has been concluded that societies highly influence the overall business functions therefore, it is required by the management team to examine their needs, requirement, lifestyle trends and many other factors(Chaffey and Ellis-Chadwick, 2019). In the present context of ALDI, it has been examined that the top managers conduct research on a regular basis so they can identify the needs and provide services accordingly. In reference to Marketing Campaign, organisation hire skilled and talented individuals and provide them wages according to their skills which assist them in improving their standard of living. Technological Factor: In the present competitive marketplace, it has been said that with the help of technological advancement, needs and requirements of customers will be satisfied in an effective manner (Balderjahn, 2016). In context of ALDI, managers of the organisation adopt new methods for promoting their products. For this they use social media applications like Facebook, YouTube, Instagram so they can provide information which is related with Marketing Campaign. Legal Factor: It is the factor which consist of all the laws, regulations and legislations developed by the legal authorities. With the help of these regulations all the functions of ALDI will be performed in an effective manner. Along with this while doing this marketing campaign, managers of ALDI all the legislations so they can execute all the functions in an effective and smooth way. EnvironmentalFactor:Itincludesallthoseelementswhichaffecttheoverall environmentbyconsumingenergy,adoptinghazardousmaterialwhichharmthewhole
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environment. In reference to ALDI, managers of the company borrow all the raw materials and other items from British farmers so they can sustain at the marketplace for a longer period of time. Top managers of the company decides to implement all the activities which might not affect the environment. Internal environment –Internal audit assist a business organisation with the help of which they can measure all the activities conducted within the boundaries of company(Zavattaro and Fay, 2019). The inner audit includes all the functions and activities which are associated with laws & regulations. It has been analysed that the internal audit assist in giving all the tools required for examining the issues. It is said that the assessment method ensures an effective internal audit so they can perform all the functions in an effective manner. SWOT analysis of ALDI Strength:one of the major strength of ALDI is its global market presences as it offer its products in around 16 countries due to which it has a high market share(Reic, 2016). In addition to this, it have talented and skilled manpower which help organisation to offer quality and on time service to customers as it build positive brand image in market.Moreover, ALDI purchase products in bulk which cut down its cost and enhance profit margins which is one of its strength. Weaknesses: As compare to its rivals, ALDI has small market are which is one of its weaknesses. Employees dissatisfaction is also consider as other major weakness of ALDI as it staff members think that they did not get results as per the efforts they put top target market that directly impact negatively on performance of company. In addition to this, the company is still not able to impact globally because of its rivals. Opportunities: The organisation have the chance to enter into new segment which is offering herbal products at marketplace which help in attracting more number of people and increases its sales. In addition to this, it can expand its operations in other countries that leads to raise in market share of ALDI.Furthermore, company have the chance to reposition its product as an affordable goods rather than lower price products as it raise sales of ALDI. Threats: The company major competitors are TESCO, walmart that impact on its sales as well as profit level. In addition to this, ALDI is not able to follow all the government policies which impact on its activities and operations in a negative manner.ALDI have a private label brand which might be tossed by an established brand in market.
TOWS Analysis of ALDI TOWS analysis is quite similar with SWOT analysis which includes Threats, weakness, opportunities and strength of a business entity(Hüttner, 2018). It will help business organisations in order to examine threats as well as opportunities and then make a comparison between strength and weaknesses so an effective strategic plan will be developed. Top management team of ALDI adopt this framework so they can make appropriate strategies & plans for their Marketing Campaign. TOWS analysis are going to be discussed as follows: OpportunitiesThreats StrengthStrength / Opportunities SO ALDIisoneofthewell known brand mainly deals in groceryitemsandhome essentials(GaulandBaier, 2019).Companyhavean opportunity in order to enter into new product line where they can offer food items to their customers with the help of using their brand name. It has been analysed that the company have strong supply network and positive supplier relations which help them in negotiating the price as well asreducecorporationtax (Hua, 2019). This will assist ALDI in order to gain pricing advantage at the marketplace. Strength / Threats ST Asamarketleaderithas beensaidthatALDIgain ample number of competitive advantage with the help of providingvariousoffers, discounts and vouchers to the consumers which reduces the threat of minimising sales & profit. ALDI can increase its market positionwiththehelpof satisfying needs and wants of customers. This will aid in developingconfidence among customers which as a result leads to positive mouth promotionatthe marketplace. WeaknessesWeakness / OpportunitiesWeakness / Threats
WO Reduction in sales and profit margin might be considered byemphasizingoncurrent market trends of organic as well as fresh food. Concentratingonhygienic eating as well as supplying of healthyfooditemstothe consumershelpALSIin resolving their issues related to liquidity & profitability(Lo and Fang, 2018). WT Overallsalesaswellas growthoftheALDIhas been reduced and the main reason behind this is opening ofnewstoresatthe marketplacewhichprovide discounts and offers to attract customers.Therefore,in order to reduce such issues it has been examined that the companyprovide convenienceoutletsand close some of their stores. Marketing Objectives ALDI conduct marketing campaign which named as “Express Ourselves” of 12 months. The objective of campaign is defined below: To enhance sales by 10% within 8 months level by educating people regarding products and services offered by company at global level. To attain competitive advantage at market place by offering quality and differentiated products to customers.To increase market share by 5% in coming 6 months of company by developing strong brand image in market. Explanation of Marketing Objectives To enhance sales by 10% within 8 months level by educating people regarding products and services offered by company at global level:The primary motive of managers of ALDI in conducting marketing campaign is to increases sales that positively impact on the profits of company. This can be achieved by company through proper advertising of campaign in market. The managers of ALDI can adopt digital technologies as well as social media applications like LinkedIn, Instagram, YouTube etc(Siemieniako, and Gębarowski, 2016). It assist ALDI to gain
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eyes of maximum people towards campaign that directly leads to raise inlevel of sales of company. In addition to this, increase in sales of company is automatically raise profit as well as revenue of ALDI which is one of its marketing campaign objective “Expressing Ourselves”. To attain competitive advantage at market place by offering quality and differentiated products to customers:Attaining competitive advantage in the market helps a company to gain leading position in that particular sector. It also help company to develop value of products as well as service in market. ALDI can achieve this by providing quality goods to customers as it build positive mindset towards company that directly impact on customer base of ALDI in a positive manner. Moreover, it can also be developed if promises and commitments made to customers is fulfilled by company(Homburg, Jozić and Kuehnl 2017). Customer's will not shift to other products if they receive quality goods at low price and ALDI is providing it in market. With the help of this, company can easily compete with competitors prevailing ta marketplace. Along with this, ALDI has the opportunity to achieve competitive edge at market which in turn help company to reach on leading potion and gain higher profits. To increase market share by 5% in coming 6 months of company by developing strong brand image in market:The another objective of ALDI to conduct marketing campaign “Expressing Ourselves” of 12 months is to accelerate market share of company in a effective manner. The higher can achieve this by using different media vehicles which helps them to spread positive message in market about goods and services provide by company. A strong brand reputation is build if it develops positive mindset of people and this can be attained if ALDI fulfils all commitments which is made to customers on time and in proper manner(Hua, 2019). In addition to this, it also spread positive word of mouth that develops strong reputation of products offered by company in market. Furthermore, development of positive brand image assist ALDI to effectively increase its market share and market performance which in turn leads to raise in revenue of ALDI. Marketing Mix plan Marketing mix refers to a framework used by large number of companies in order to sell their goods and services so they can target their potential market. It consist of all the strategies as well as tactics which assist in creating awareness about goods(Skorobogatykh,and et. al., 2016). Top management team of ALDI adopt marketing mix so they can attain the objectives of
marketing campaign in an effective manner. All the elements of marketing mix are going to be discussed as follows: Product: ALDI mainly focuses on producing high quality goods and services to their customers in order to gain loyalty from consumers. Company generally deals in grocery and household goods which includes choco rice, fruits, tea biscuits, beer and many more. By maintaining quality of products, managers of the company can easily attain marketing campaign objectives effectively. Price: Managers of ALDI, adopt competitive pricing strategy in order to sell their goods and services at the marketplace. Company purchase raw material in bulk which reduces the overall cost and help company in raising their profitability at the marketplace. Place: ALDI have almost 12,000 stores across the whole wide world where they gain sufficient amount of profitability as they all are established at posh marketplace(Ziemba, Jankowski, and Wątróbski, 2018). Apart from this, managers also focuses on the ambience and infrastructure of stores which assist them in earning more profitability at the competitive market. Promotion:It is the method with the help of which managers of the company create awareness at the marketplace about the goods and services. In reference to ALDI, managers of the company use different social media platform such as Instagram, LinkedIn, YouTube, Facebook and so on which assist them in attracting large number of customers. Process:It has been identified that the outlet ofALDI is quite convenient and easy to find all the products and services by customers. This will assist in enhancing the overall profitability and reputation of the company. Along with this, Barcodes are included in the products which assist in examining them in an effective manner and help in fast billing of the goods. Physical Evidence: ALDI sell their products across the whole world and maintain specific prices of all the groceries which help them in attracting large number of customers. Also, physical stores of the company are quite effective and maintain hygiene level at the workplace. Also they offer products which are cheaper then others(Forkmann, and et. al., 2016). People: ALDI is one of the biggest supermarket chain in the world which includes ample number of individuals. Managers of ALDI provide training sessions to their staff members on a regular basis so they can enhance their knowledge and skills. Along with this, it will assist them
in order to produce high quality products and services which will satisfy the needs and wants of customers. How ALDI can improve customer service level There are number of ways which ALDI can use for improving its customer servicesby achieving customer satisfaction. Some of these are stated below: Customer Feedback: It is the best way to get organization customer satisfied, this is donethroughtakingfeedbackfromcustomers.Feedbackcanbetakenthroughdirect questionnaire, filing feedback form along with purchase of product andcustomer suggestions. Feedback aid ALDI to know wants and needs of their customer. It will also facilitate in knowing about the product current quality and quality require by customer(Paulovčáková 2016). The current market campaign of ALDI has focus on improving customer services and for this they have to clearly examine the feedbacks of customers and act on them. This will directly improve customer satisfaction as their problems related to product will be solved.This will also impact on ALDI profitability as customer satisfaction leads in increase profits of firm. Training to Customer service team:Customer service team or support team is the important part of every organisation because they are the face of firm while solving complaints of customers. ALDI have there main focus on making their service team more skilled and fully trained for solving customer problems. This is because if service team member are not fully trained then they are unable to solve the problems of customers which will lead in their dissatisfaction. The market campaign of ALDI is focus on training and development of these teams for providing good services to there customers and achieve goals and objective of firm. Use Advanced Technology: Technological changes are rapidly increasing in today's environment. Every organisation has changing towards it as change in technologyfacilitate in improving customer services. ALDI has lunched a market campaign named “Express overself” for increase its customer services and technology will help it fulfilling this requirement. Customer does not want to waste there time on billing counters which have long waiting line of people for paying their bills(Calder,Malthouse, and Maslowska, 2016). Adoption of new techniques will help in cutting these long waiting lines. These techniques are change in software of company's systems, using cards instead of cash, home delivery with facility to pay when delivered. It will be beneficial for ALDI in improving there customer services.
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Knowledge of product:Product knowledge is important factor which is related to information of product size, quality, ingredients, durability, etc. employee of organisation must have all knowledge of product which he is selling.This is the important part in improving customers services of the organisation as sometime customer have query related to product at time of purchase which he ask from salesman of that product and becauselack of knowledge. Salesman is unable to answer that query which leads in dissatisfaction of customer. Campaign launched byALDI have to focus on this by providing effective training to their staff about the product specifications. This will help firm in meeting requirement of customer as they will get full information of product. Respond quickly:Quick response to buyers is must for improving customer services. Response may be for query or for providing other information to customer which must be fast and accurate. This can be done through using fast source of communication, these aresocial media platforms like Facebook and LinkedIn or other account(Dogu, and Albayrak, 2018). Which solve query of customer in short time period. ALDI have various social media accounts which are use for responding to customers but in this new campaign company will use new and fastest ways to solve customer problem by self owned portals. This will impact on company positively in fulfilling needs of customers. CONCLUSION With the aid of above stated information, it is concluded that marketing plan is one of the most essential element which includes all the policies, plans, actions and strategies required to accomplish specific marketing objectives in an effective manner. Along with this, by using PESTLE analysis, external environment can easily be identified by the managers so they can develop strategies accordingly. Furthermore, marketing audit help in analysing the elements which influences the whole performance. Apart from this, marketing mix 7P's assist in attaining objectives within given period of time.
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