Improving Customer Service for ALDI's Express Ourselves Marketing Campaign
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Added on 2023/01/12
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This article discusses ways in which ALDI can improve their level of customer service as part of their Express Ourselves marketing campaign. Strategies include training and development, personalized customer experience, and prompt service.
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MARKETING PLAN
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................1 MAIN BODY..................................................................................................................................1 Marketing TOWS for ALDI and marketing audit principles and practises.................................1 3 marketing Objectives for “Express Ourselves marketing campaign” over a period of 12 months..........................................................................................................................................3 Marketing Mix plan for achieving desired marketing objectives over 12 moths time period.....4 Ways in which ALDI can bring improvement within their level of customer service as a part of “Express Ourselves marketing campaign”..............................................................................6 CONCLUSION................................................................................................................................8 REFERENCES................................................................................................................................9
INTRODUCTION Marketing plan can be defined as a blueprint or document that helps an organization to outline marketing and advertising efforts or strategies for future (Chen and Yang, 2019). Marketing plan mainly focuses on description of all kinds of business activities that are involved in achievement of desired marketing objectives within a set or desired duration of time period. In order to develop an effective and appropriate marketing plan it is it is important for organizations to understand needs and requirements of their customers as it will also help them to understand things or factors they need to focus on while developing a marketing plan. This assignment will focus on marketing plan of ALDI. ALDI is a German super market that was founded in 1913 whose headquarter is in Germany. They have more than 10000 stores present in more than 20 countries. This assignment will further lay emphasis on ALDI marketing TOWS, marketing campaign marketing objectives, marketing mix to achieve desired marketing objectives and ways in which customer service level of ALDI can be improved. MAIN BODY Marketing TOWS for ALDI and marketing audit principles and practises Marketing is a kind of interpretation or evaluation of both internal and external marketing environment of an organization(Miclea, Izvercian and Buciuman, 2016). Marketing audit provides organizations with an opportunity to understand ways in which they can enhance their overall performance, sales and customer base. There are various reasons because of which an organization conduct marketing audit. Some of the common factors because of which marketing audit is conducted is marketing resources that are under-utilized by the company, changes required to be brought within current business strategies, ways to enhance marketing position of the business and many more. There are various kinds of methods or tools that can be used by a company to understand or explain marketing audit that an organization currently undergoes. One of the most commonly used tool that can be used for marketing audits is SWOT analysis in which strengths, weaknesses, opportunities and threats of an organization analysed by evaluating their internal and external capabilities(Riaz, Ali and Madni, 2016). There is an expanded version of SWOT analysis that can be used by organization which is known as TWOS. It is an extended version of SWOT because it is majorly derived from it. TWOS analysis can be used to understand marketing audit of ALDI. Construction of Marketing TOWS if ALDI is as follows: Marketing TOWS of ALDI 1
TOWSStrengths ALDI has a strong distribution network Theyhavestrongbaseof reliable suppliers They have built an expertise of successfully entering into a new market Theyhaveastrongbrand portfolio Lower cost structure help ALDI to gain competitive advantage over competitors. Weaknesses Netcontribution% ofALDIand profitability ratio of ALDI is below industry ratio. Daysinventoryisquitehighas compared to competitors. Need to invest more on technology in order to integrate process across the board High employee turnover and lower employee motivation(Kupec, 2018). Loweramountofspendingon researchanddevelopmentas compared to competitors. Opportunities Marketdevelopmentcanhelp ALDItogaincompetitive advantage and dilute competitor’s advantage Newenvironmentalpoliciescan be a great opportunity for ALDI to enhance their market share. As disposable income of people areincreasing,inflationin economyisexpectedtoremain low. SO By using their strong portfolio andnewenvironmental policies,ALDIcanenhance their market share. Using their strong distribution network company can expand theirbusinessinnewtarget market. Developmentofnew environmentfriendlyproduct canalsohelpALDItogain competitiveadvantageand usingtheirlowcoststrategy they can attract more number of customersandenhancetheir customer base. WO By focusing and implementing new environmental policies and investing moreonimplementationofnew technologycanhelpALDI enhancingtheirmarketshareand gaining competitive advantage. This willfurtherhelpALDItoattract more customers Providingincentivepackagesand increasing payroll of employees can helpthemtoreduceemployee turnover rate and increase working morale.Thisispossibleas disposableincomeofpeopleare high and operational cost of ALDI is lower 2
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Threats Newtechnologiesdevelopedby competitorscanbeathreatto ALDIasbecauseofthis competitioninthemarketis increasing Rising raw material can be a threat to profitability of ALDI. Increasing number of new entrant can be threat to ALDI ST Usageofstrongdistribution network in order to reach to the customers and provided desired products to them can help them tofightwithnewentrants enteringintotheircurrent market. WT Spendingmoreonresearchand developmentcanhelpALDIto compete against their competitors. 3 marketing Objectives for “Express Ourselves marketing campaign” over a period of 12 months In order to develop a successful marketing campaign, it is important for organizations to settheirSMARTmarketingobjectives(ChaffeyandEllis-Chadwick,2019).Marketing objectives helps an organization to set their marketing goals that are required to be achieved by them. So, marketing objectives are a kind of marketing strategy set that are required to be achieved in order to achieve organizational objectives. Marketing objectives that can be set by ALDI for their “Express Ourselves marketing campaign” are as follows: Marketing objectives suitable for ALDI are: To increase overall sales of ALDI by 20 percent by the end of April, 2021. To enhance their overall customer base by at least 25 percent by the end of April, 2021. To expand their online presence and open 5 retail stores within 12 months. ALDI is planning to launch an intense marketing campaign with a Tagline “Express Ourselves”. They are planning to run this marketing campaign during a period of 1stMay 2020 to 30thAril 2021. It is important for ALDI to focus on setting some marketing objectives that will be required to be achieved during this marketing campaign. ALDI has set three main marketing objectives that are required to be achieved by them out of all the three objectives, one of the main objective set by ALDI is to increase their overall sales by at least 20 percent by the end of April, 2021. They will be focusing on advertising their brand, products and services though social networking sites and organizing a campaign which will help their business to reach their targeted population and attract more number of customers. In order to achieve these objectives 3
there are various strategies that will be required to be implemented which will further help them to achieve their desired marketing objectives which will further help them to make this marketing campaign successful(Misirlis and Vlachopoulou, 2018). Other than increasing sales they also have two other objectives that are required to be archived by them during this period that are: to increase customer base by at least 25 percent, to expand their online presence and open 5 more retail stores within 12 months. In order to achieve both the objectives it is important for ALDI to conduct market research which will help them to analyse their current position within the market, factors that can affect their business. Analysis of these factors will also help them to evaluate whether their marketing campaign will be successful or will be a failure and what are the measures that will be required by them to be achieved. One of the main advantage of analysis of factors is that it will help them to understand and analyse places where they can open their retail stores which will be beneficial for them to increase their overall sales. It will also help them to understand ways in which they can increase their online presence effectively. In order to increase their customer base, ALSI can focus on bringing changes within their current business strategies like providing discounts, coupons, hone delivery services or by introducing environment friendly products, services or packaging. Marketing Mix plan for achieving desired marketing objectives over 12 moths time period Marketing mix can be defined as a set of tacticsor actionsthat can be used by organizations for promotion of their products, services or brand in the market. It also helps an organization achieve or peruse their desired marketing aims and objectives(Blut, Teller and Floh, 2018). It is a tool which is used by organizations to understand and decide ways in which organizations can achieve their marketing objectives, what are the measures or decisions that are required to be taken by them for the same. Marketing mix consist of seven defined elements that are known as 7 P’s which helps companies to achieve their set marketing objectives in a better manner within a set or desired duration of time period. These seven marketing mix elements that helps a company to achieve their targeted marketing goal are:product, price, place, promotion, people, process and physical evidence. Development of 7 P’s marketing mix strategy can help ALDI in achievement of their target marketing goal and objectives within a time period of 12 months in order to achieve their desired results within the targeted market in which they operate: Product: There are huge range of products that are provided by ALDI that can be used by their customers. This increases the range or choice for their customers to choose an 4
appropriate product that suits them and can be used by them to fulfil their needs and requirements. ALDI can provide various kinds of other benefits to their customers such as after sales service, customer care service, home delivery and various other kinds of benefits (Datta,AilawadiandVanHeerde,2017).Todaymostofthepeoplearebecoming environment friendly and prefer using eco-friendly products. ALDI can use it as a strategy and can focus on introducing completely new eco-friendly product line or can focus on bringing some changes within their packaging like using environment friendly or reusable packaging material. This will help them to enhance their customer base and will also help them to drive their sales to their defined target. Price: Pricing strategy currently used by ALDI is competitive pricing strategy. Most of the products offered by ALDI are offered at similar or competitive price as compared to their substitute products or competitors’ products. ALDI can focus on providing pricing benefits to their customers which will help them to attract more customers and increase their overall sales(Risnawati, Sumarga and Purwanto, 2019). They can provide pricing benefits such as: discount’s, coupons, free products and many more. Other than this they can also focus on bringing some changes within their pricing strategy with their competitive pricing strategy. They can combine psychological and competitive pricing strategy i.e. offer products at competitive prices but bring changes within number of digits of the prices for example: If a product offered by them is of 10 then they should offer it to their customers in 9. This will help ALDI to attract more number of customers and enhance their overall customer base. Place: ALDI sells their products through retail stores as well as online. But usage or presence of ALDI on online channel for sales is quite low(Dolnicar, Grün and Leisch, 2018). They can focus on enhancing their presence on online channels like on social networking sites, their own website where their customers can directly buy products online and by providing additional home delivery service they can boost their current customer base and increase their sales and profit margin drastically. This will further help them to expand their business and open 5 more retail stores within a time period of 12 months and increase their sales and profit margin. Promotion: Promotional activates used by ALDI are good i.e. they promote their products on social networking sites, televisions, advertisements and many more. They can bring improvement within their current promotional strategy. They can opt for search engine 5
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optimization where their users will be able to access their products and service online easily. Thiswillalso helpthemto increasetheironlinepresence, increasetheircustomer’s experience. People: ALDI has a large employee base where various kinds of employees work for them in different location in various departments. They can focus on providing training to their customerssothattheiremployeescanlearnnewskillsrequiredbythemandbring improvement within their performance(Hollensen and Opresnik, 2019). This will help ALDI to support new additional services that they will provide to their customers such as customer care service. As skilled employees will provide much better after service to their customers. Process: ALDI can use advance information system that can help them to manage their products and services availability on both online and offline channels. This will further help them to forecast their future sales in order to increase their sales and overall profit. PhysicalEvidence: In order to enhance their customer experience, ALDI can focus on asking for feedback or rate their customer service that was provided to them. This will help ALDI to bring improvement within their packaging, customer satisfaction and experience in a much better manner. Ways in which ALDI can bring improvement within their level of customer service as a part of “Express Ourselves marketing campaign” If an organization wants their business to flourish, then it is important for them to focus on bringing improvement within their products and services in a much better manner. It is important for an organization to focus on bringing improvement within their customer service level(Priya, ZunkeandMitra,2016).Itwillnotonlyhelptheorganizationenhancetheircustomer satisfaction but it will also help them to boost marketing campaigns organized by them. Similarly, ALDI needs to focus on their customer service level and should focus on making it a part of their Express ourselves marketing campaign. By focusing on enhancement of their customer service level, ALDI can focus on achieving their desired marketing objectives in a much better manner. Not only this, it will also help them to enhance their customer base and gain competitive advantage. It will help them to enhance their customer base, increase overall sales as well as enhance their customer experience in a much better manner. There are various ways that can help ALDI to bring improvement within their customer service level. Some of the most common strategies can be used by ALDI to improve their customer service level are as follows: 6
Work on feedback provided by the customers: For a retail sector organization, one of the most important thing is customer service(Kumar, Shankar and Aljohani, 2019). A retail organizationshouldfocusoncontinuouslyenhancingtheircustomersexperienceand satisfaction level. Feedback provided by the customers play a vital role in it. ALDI need to focus on feedback’s provided by the customers and should work on resolving all kinds of issues faced by them or things that are required by the customers. After resolving customer’s feedback, ALDI should again focus on asking for their experience related to their feedback and should ask whether there are any kinds of suggestions that are required by them in order to enhance their overall customer service. Provide training to customer service team in order to strengthen their customer service: Another important factor which is required to be focused on in order to enhance their customer service is working on training their employees so that they can learn and work on new skills required by them, can provide training to them so that they can enhance their current skill set and knowledge. This will help ALDI to develop an effective customer service level who would be skilled enough to communicate with their customers, identify issues faced by customers and resolve it in a more appropriate manner. Continuously track and monitor performance of their customer representative: Whether training provided to the employees is effective or not can only be identified by tracking overall performance of their customer service representatives(Van Lierop and El-Geneidy, 2016). Tracking performance can also help them to check whether appropriate level of service is being provided to the customers or not, whether still there is some requirement to bring improvement within their customer representatives skill set and knowledge or not. Tracking can also help customer representative to understand whether the desired level of service is not achieved then in such cases ALDI should focus on enhancing their customer representative’s performances in a much better manner. This will further help ALDI to provide excellent and quality service to their customers. Advanceinformationsystemusage:therearevariouskindsofinformationsystem software’s that can be used by organizations for various kinds of purposes. ALDI can focus on using some of the advance level information system that can further help them to develop advance level overall organizational standard of ALDI. This will further help ALDI to understand their customer’s needs, requirements in a much better manner. Other than this, 7
advance IS system also helps the organization to understand and track their customer’s needs, requirements, desires and changes they want within ALDI’s current system(Razak, Nirwanto and Triatmanto, 2016). This will help ALDI’s to maintain their relationship with their customers in a much better and enhanced manner. CONCLUSION From the above assignment it has been summarized that in order to evaluate both internal and external capabilities of an organization marketing Audit can be conducted. it will also help an organization focus on enhancing their overall performance and based on this analysis they can develop their own marketing plan. It has been analysed that in order to develop or run an effective marketing campaign it is important for an organization to define desired marketing objectives that are required to achieved during marketing campaign. Achievement of marketing objectives helps an organization to understand whether the marketing campaign was a success or a failure. Marketing mix strategy can help an organization achievement of desired marketing objectives in a better and enhanced manner. Other than this, it has also been analysed that if an organization wants to increase their sales and customer base then they need to focus on enhancing services provided to their customers. There are various factors or ways that can help a company to enhance their customer service which would further help them to increase their customer’s satisfaction level. 8
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