Strategic Marketing Analysis of Lidl

This assignment delves into the strategic marketing practices of Lidl, a leading discount supermarket chain. Students are required to analyze Lidl's current market position, strengths, weaknesses, opportunities, and threats (SWOT) using various marketing frameworks such as the Ansoff Matrix and BCG Growth-Share Matrix. The analysis should cover key aspects like target market segmentation, product differentiation strategies, pricing models, and promotional activities. The assignment aims to develop students' understanding of strategic marketing principles and their application in a real-world business context.

Introduction to
Marketing
Introduction to
Marketing

Table of Contents
INTRODUCTION ..........................................................................................................................3
Main Body: Research/ findings/analysis.........................................................................................3
TASK 1............................................................................................................................................3
Conduct market research on the current UK grocery retail market ...........................................3
TASK 2..........................................................................................................................................11
Analyse the conduct research on the UK population to determine which segments will provide
Lidl company with higher yield of consumers..........................................................................11
TASK 3 .........................................................................................................................................13
Relevant approaches for marketing strategies...........................................................................13
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................19
Books and Journals ..................................................................................................................19

INTRODUCTION
Marketing is the essential part in the organisation to increasing the product sales and
opportunities for the company. The main objective of the marketing is to get the sales high and
make brand image in the competitive market. Present report will base on introduction of
marketing of retail sector in which report will discuss about Tesco, ALDI and their competitors.
Along with that, it will also discuss about the segments who are driving this growth, using
relevant socio-demographic, psycho graphic and behavioural variables, develop detailed segment
profiles. Along with that, in third segment it will also explain about the 7Ps marketing mix model
in order to target the market customers. UK grocery market is covered by the big organisations
such as ALDI, Tesco, Ads etc. In terms of earning profit revenue is 163.2 billion. In UK market
there are 102,537 stores convenience retailing. In which there are many types of retailing
segment convenience retailing, traditional retailing, supermarket and superstore and alternatives
channels. Grocery stores in the UK market is highly demanded and effective and approachable
for the customers. Grocery stores provides variety of services to the customers as per their needs
and wants. They provide all brands and variety at low prices or at reasonable price. It is the most
effective market. Present report covers the section in which they discuss on the models of
SWOT, PESTLE, Competitor matrix, Boston Consulting Matrix, Ansoff Matrix. Furthermore, in
another segment report will research on psychographic, behavioural and socio demographic. In
last section it will discuss on the theories of product description, brand image, pricing objective
strategy and 7P's marketing Mix. Moreover, it will cover the all part of the grocery store which
helps to influence the market conditions.
Main Body: Research/ findings/analysis
TASK 1
Conduct market research on the current UK grocery retail market
Lidl wants to emerge with Tesco in terms of more profit or expansion through which they
enhance their market share and supermarket stores in UK market. It provides more opportunity
growth to the company (Ahn, Cho and Han, 2014). In terms of expansion there are various
factors which affects company market structure and growth. Some external or internal factors
affect company growth. In order to analyse the UK grocery market. It needs to adopt effective
research or analysis models to get the best productive information in order to reduce the negative
impacts.

SWOT Analysis
Strength
 Lidl is the price and quality attractive
company (Lidl SWOT analysis
presentation, 2016).
 It has store standardisation and
accessibility (Armstrong Kotler, Harker
and Brennan, 2015).
 Lidl was the Grocer of the year in
2015. It has good product choices and
selection process.
Weaknesses
 Differentiation from competitors such
as Tesco, Aldi, Asda etc.
 Lack of stock availability by the end of
the day.
 Lack of cash counters in the stores.
 Lack of customer services.
Opportunities
 Adopt customer health trends and those
types of products and services. Also
adopt organic product items to attract
customer trust and loyalty.
 Technological up gradation in order to
provides flexibility in working.
Threats
 Customer concern and grievance.
 Competitors prices and market
strategies (Lidl SWOT analysis
presentation, 2016).
 Changes in market environment.
PESTLE Analysis model
Political factor
Political factors are those
factors which influence by
political vulnerability across
globe currently. In order to
identify business opportunities
for Lidl, they need to adopt all
Economical factor
After the impact of Brexit in
UK market. Prices has been
increasing of product and
services. This approach
worked for Lidl with shoppers
turn to discounters. In inflation
Social factor
Social factors influence by
societal factors which creates
health concerns, environmental
protection etc. through which
company get affected. Lidl
Provides quality services to the

political changes in the
business environment. To get
market attraction company
needs to apply all political
changes in the business to get
customer attraction.
in grocery market was rose to
2.9% in May. This impact
gives positive impact on the
company in order to provides
goods and services in cheaper
products. This is the
opportunity for the company to
adopt better environment.
Besides, economic factors
affect company by changes in
interest rates, inflation rates,
foreign exchange rates etc.
customers for their healthy life.
Besides, company also
provides all kinds of range to
their customers.
Technological
Supermarket are increasingly
adopted high advanced
services in order to grab the
flexibility and effective
working growth. It helps to
enhance the customer service.
In order to get the best
effective prices. Technological
factors affect company
atmosphere in positive
manner.
Legal
Legal factors are also very
much effective and useful.
Legal factors affect company
environment by the
interference of government.
On the other sides, legal
factors frequently affected by
scandals the content of food
products.
Economical
Environmental factors is the
another significant factor
which affect company
atmosphere and planning
process. This is the another
changes done by the company.
Environment is affected by
changing in customer needs
and wants, market changes,
taste and preference etc. super
market get easily affected by
the those factors.
Competitor Matrix analysis model
This model of competitive matrix helps to analyse the company competitive advantage.
In terms of supermarket and hypermarket. It provides competitive advantages growth. It helps to
identify the company competitor approach and strategies in order to grab the market position.
This helps to determine the competitor current strength and weaknesses. This helps to another

company to make potential changes in the company in order to stable the company stability and
brand value ion the market (Babin and Zikmund, 2015). Lidl having many competitors who
affect the company functions and strategies such as Tesco, Aldi, Asda and M&S. Lidl is the
company which deals with supermarket which deals with variety of services. There are the
competitors' analysis of Lidl company.
Factor Lidl Tesco Aidl Asda
Low Price 4 5 4 4
Superior quality 4 4 3 3
Training of
operations
5 4 5 5
Unique features 4 3 5 4
Customer
services
5 5 4 3
Innovation &
Creativity
5 3 2 5

On the basis of above ranking. Company can easily target effective controls and efficient
market growth in terms of effective controls (Camerer and Yoon, 2015). Such as customer
support services Aldi needs to focus on the customer service in order to maintained the effective
control. Competitors price or strategies help company to adopt effective control in order to make
the effective work and process. With the help of competitors Matrix company measure itself
position in order to gain more effective pricing strategies. This helps to follow these measure
points :
 Improve services which helps to improve customer strategies more effectively.
 Develop customer training process to make aware about the services how they use and
take in which manner.
 Improves the ways to adopt customer service to grab customer attraction.
The Boston Consulting Matrix
This is the another model of analysis for the benefit for Lidl company. This also known
as BCG model which gives new advantages and competitive model. It is the another strategic
model which gives effective ways of working (Chandon, Laurent and Valette-Florence, 2016).
This is the model which helps to company attract customers by removing market trends. In order
to stable market position and Lidl company attract customer focus and market attractive. There
are four factors or components which influence company activities.

Dogs: Dogs have low market share this situation of market gives low market
performance neither generate nor consume a large amount of cash. It is the moderate approach
which neither good nor bad (Eagle and Dahl, eds., 2015). Dogs are cash traps because of the
money tied up in business that has little potential.
Question Marks: this market situation gives initiatives in which they showing rapid
growth in order to get the large part of the cash amount. It is the large cash consumption market.
In this market situation Lidl can easily get effective market share and earn better amount of profit
margin. This question mark express the opportunity for the Lidl to get the Supermarket approach
and customer market approach. This situation give opportunity to company to adopt strategic
ideas and growth to become star of the market. In terms of competition there are many
supermarkets and hypermarket in UK. If market growth is decline then market will degenerate
into dog. Question mark generate ideas for the company weather investment is fruitful for the
company or not.
Stars: Star shows large number of profit and cash because of strong market share, also
they consume large part of money due to high growth rate (Fill and Turnbull, 2016). If star
approach maintains their position it will become cash cows when market rate declines. Portfolio
of diversified company helps them to become next cash cows and ensure cash generation.
Illustration 1: BCG Growth-Share Matrix
Source: BCG Growth Matrix Model, 2010

Cash Cows: it is the positive growth market it gives positive return to the company. It
gives higher rate of return in order to generate more cash than they consume (Fill and Turnbull,
2016). Cash cows gives opportunity to turned question mark where market is growing in rapid
manner in order to safe the administrative costs
Ansoff Matrix analysis
It is the another model of analysis strategic planning tool which helps executives, senior
managers, market devise strategies for future growth (Fine, 2017). In which there are four major
segmentation which helps Lidl to adopt new market strategies in order to meet the customer
needs and wants.
Market Penetration: it is the first strategy to analysing the strategic approach and
effective working targets (Ansoff Matrix, 2015). Market penetration strategy is the growth
strategy which helps to focus on the selling the existing product and services in the market. In
order to achieve this target company needs to follow some objectives to full fill the market
penetration approach such as giving below:
 Lidl needs to maintain market share and current focus on product and services. In order to
enhance the current product and services company needs to adopt combination
competitive pricing strategies, advertising, promotion and more resources in order to
increase the sales of products.
 Secure the market position by giving customer services and trust among customers. Lidl
should keep their market domain position alive (Hair Jr and Lukas, 2014).
 Enhance and give energetic appearance within market. For that, organisation needs to
adopt marketing campaign, supported by a effective pricing strategies make market
attractive and design full (Ansoff Matrix, 2015).
 Increase usage by existing customers by give them additional services or advantage in
order to increase the sales of the company.
Market Development: It is the another strategy of Ansroff model in which company
enhance the market growth by new developments (Iacobucci, Popovich, Bakamitsos, Posavac
and Kardes, 2015). This approach helps to make the planning for the company where they need
to sell their product and services into the new market. In order to enhance market development
company needs to adopt following ways giving below:

 Develop new geographical market such as adopt new market strategies in some different
cities and countries.
 New product dimensions or packaging styles for the company in order to grab customer
focus and effective sales (Kumar, Keller and Lemon, 2016).
 Adopts new channel of distributions such as offline, online, through shipping etc.
 Acquire new pricing strategies in terms of getting customer approach and attraction level.
As compare to this strategy with market penetration market development is riskier than other.
Product Development: Product development is most effective and productive strategy
for Lidl to adopt customer focus. Every customer wants to get new product and service in
frequent manner. In order to satisfy the needs and wants. For that, company needs to squire
market research in order to analyse the best market demands according to which they make
product development strategy (Needham and Smith, 2015). It is the aim of the company to
introduce new product developments to stable the company position in the market. It helps to
sustain the market competencies and market value among other competitors. In order to make
product development strategy company needs to adopt following marketing synapsis as giving
below:
 Lidl needs to acquire and invest on Research & Developments which assists to make
innovative ideas and growth strategies.
 Detailed insights into customer needs and want. This helps to make the productive
atmosphere (Proctor, 2014).
 Make sure that company launch and organise product first in the market. This makes
good impression in front of the customers.
 Adopt effective market research to determine consumers needs and wants.
Diversification: it is the another growth and effective process which necessary to adopt
by the company in order to introduce new services and productive work. In which company
moves to the other market. So that, risk factors are become more violent in the environment. For
long terms stability it is important for Lidl to introduce new product or market expansion to
attract customer focus. In terms of equal balance of risk and reward gives equal opportunity to
the company.

TASK 2
Analyse the conduct research on the UK population to determine which segments will provide
Lidl company with higher yield of consumers.
In order to identify that which customer or consumers are highly yielded for Lidl in order
to earn profit revenue (Sheth and Sisodia, 2015). It is very necessary for the company to identify
the customer market in order to provides services according. In order to analyse the target market
customers Lidl needs to research social demographic segments, psychographic segments and
Behavioural segments.
Socio-Demographic segments 416
Socio-Demographic factors is the division it is the another effective role to making new
approach which makes effective working (Consumer Segmentation, 2018). It is the segments in
which customers are comes under three categories middle, lower and upper class. This
demographic segmentation is the simplest and wider type of market segmentation used. Its
divided in terms of age, gender, family size, income, occupations, religion, race and nationality.
This market segmentation relies where market has different products at different ranges. It is the
most challenging and effective process it is the another main objective of the company to attract
different types of customers at different age, gender, family, size and income groups. Such as
lower level group of people buys cheaper prices of product and services, middle class people can
afford affordable prices and nor larger or smaller. Besides, upper class people can easily buys
high price of services or products. In UK market 75% are belongs from middle class family 30%
belongs from upper class family. Lidl needs to provide products and services on the basis of
customer purchasing power (Sojka, 2016). Company needs to identify the customer lifestyle,
needs, wants, population ration in terms of adopting new product developments. In order to
adopt new business plans company needs to go through Mosaic it is the UK powerful cross
channel consumer classification system built for multi channel world (Consumer Segmentation,
2018). It is the most effective and efficient tool which gives insight depth of target audiences. It
helps organisations to adopt pricking, product or inn innovative plans according to the
demographic models.

Psycho graphic segments
Market is full off different styles of customers and their preferences (Sojka, 2016).
Organisation needs to analyse the effective sources which necessary to adopt according to the
company objectives. Moreover, psycho-graphic segments are includes several variables which
describes buyers and their segmentations such as social class, lifestyles or personality. These are
explaining below:
Social class
Social class is refers and classified as upper lowers, lower lowers, middle class, upper
middles, lower uppers and upper class. It also includes occupation, income level of buyers. With
the helps of analysing the needs and wants of these factors company can easily target their
potential customers and their priorities (Totten and Cross, 2015). This process helps to gaining
the customer trust and market popularity of the company.
Lifestyles
People are loves to purchase those products and services which is demanding and trendy
in the market. Customer purchased services or products on the basis of its own level and
according to income level. Lidl must provides products as per the needs and wants of the
customers. Lifestyle is the most trendy tool of making process and effective process to make
goods productive (Walker, 2016). Customers purchase goods and services on the basis of
innovations, traditions, contended conformers, esteem seekers. Company needs to calculate hoe
many males and females are in the place who prefers which kinds of product and services which
helps to grab the market customer attraction. On the basis of UK, as per the survey of national
readership survey UK had a similar classification of consumers in the past. Young girls or
women prefer trendy and latest collection of products instead of old. Besides, small children
prefer 3D games instead of toys. So that, according to buyers demand Lidl needs to adopt
customer market segmentation.
Personality
Personality relies on specific brands which shows customer status and value. These kinds
of customer segmentation needs high branded products in the store in order to grab the customer
attraction. Lidl needs to research on the population criteria of UK in order to get the number of

target customers (ZHANG, PITTS and KIM, 2017). Brand shows the person personality and
level which gives company ideas to weather adopts branded products or not. On the basis of
income ration, company can easily measure the exact position. In order to attract high profile
customers company needs to take branded products in the store as per the customer demands.
This helps to get the market position and growth.
Behavioural segments
Behaviour is the another customer segmentation which refers to customer behaviour and
their needs and wants. Customer behaviour influence by attitudes and purchasing buyer
behaviour (Sheth and Sisodia, 2015). It is the kind of new effective working process which refers
to the customer behaviour. On the other side customer behaviour influenced by new trends,
purchasing power etc. In order to adopt customer service and attraction company necessary to
measure the customer behaviour is one of the most important strategy through which company
make effective services or business pan in order to beat the competitors' price or strategies.
Behavioural segmentation also influence customers on the basis of company quality and services
they provide, it gives better services to customers in terms of getting effective process.
TASK 3
Relevant approaches for marketing strategies
Product description
Lidl is the German global discount supermarket chain, that operates 10,000 stores in
across the world. They deal with different kinds of product and services at discount rates. They
want to emerge with Tesco to enhance the high level market (Needham and Smith, 2015). It
deals with clothing fashion, good, electronic products. It helps to get the best effective process to
grab the customer attraction. Lidl is the full discount store or mass merchandiser such as Aldi
and Lidl. It commits high quality and low prices, hassle free shopping. It makes s customer
buying process simpler and less time costing. Every Lidl private label products shows the
freshens and quality proof. They continuous providing offering new favourites from all over the
world. It is the most effective process of work through which number of customer attract from
the company market positions.
Brand Image: on the basis of market research and competitors analysis company having
large market share in terms of effective process working. The best essential keep player role of
the company is providing discount benefits to the customers. On the other side, another reason of

effective brand image is that, company adopts best productive technology in order to maintained
the effective quality of product and services. It is the kinds of new services and productive
approach. Brand image shows the company value in the market which shows the company
stability in the market. Company prefer Lidl in term of getting discounts on product and services.
In terms of getting more brand awareness and effective approach. For that, company needs to
adopt more efforts and productive target approach in terms of getting customer satisfaction
approach (ZHANG, PITTS and KIM, 2017). Company brand strategy is offering quality product
as a low prices. Company also provides ethnic alternation product such as free globe, fair trade
brand etc. it helps to sustain in the market and enhance market opportunity growth. It provides
great opportunity to adopt new product diversification in the company atmosphere. Along with
that, they adopt market cheaper prices. On the basis of analysis, company adopts some of the
measure brand features which enhance the brand image of the company such as, retailer values,
discounts, low cost, cheaper rates, captive brands, convenience, cheaper rates, traditional, main
target market customers. On the other side, company targets families local residence, middle
upper class people. Company brand personality of the company make company more
competitive and effective. It is the leading market company in the UK market position. Another
main effective, process is that they maintained brand personality with the help to exist cost
effective preference and growth. On the basis of other research findings company enhance their
brand image on the basis of logo and tag line (Sheth and Sisodia, 2015). In order to overcome
from negatives perceptions current logo of the company represents a true and radical break with
the previous brand image. This brand logo represent a true and radical break with the previous
brand image. This brand shows the freshness and quality of the products. As per the tag line of
the company it shows that company product and services are more reliable and effective in terms
of effective nature of product. In order to exist brand image in the market company adopts post
purchase experience, pre -purchase experience and purchase experience. This approach helps
company to focus on core activities and helps to take core advantage with the helps of effective
process of working. In pre purchase experience they adopt marketing communication in order to
identify the customer needs and wants. This is the pre purchase experience for the customers in
order to grab the market satisfaction approach (Sheth and Sisodia, 2015). They adopt social
media platform to introduce new product and services with the help of blogs, twitter and
Facebook these are the resources through which Lidl connects customers with the brand. In post

purchase experience company adopts Corporate social responsibility and reinforce Lidle
proposed ethical positioning. It makes customers happy and satisfied with the company product
and services.
Pricing objectives strategies
Pricing strategies of the company is low price based product and services which is
affordable for every kind of customers. It helps company to make effective services which helps
to gain customer satisfaction approach (Sheth and Sisodia, 2015). Pricing strategy of the
company is most attractive features which gain company brand image in the market. It attracts
customer focus and market preference. They determine the needs and wants of the customers
which build effective bond between customers and company. Lidl also adopt discount rates on
the product and services which is the another attractive process of the company. It gives higher
satisfaction approach to company. Lidl is the discount provides services in terms to attract
customer attraction.
Retailing and distribution objectives and strategies
Retailing and distribution channel is very fast growing in the UK market. It is the most
prominent and expanding business firm which provides quality products. Lidl is the best
promising retailer which deals with so many dealers, customers in order to meet the needs of
customers. In UK overall Lidl market share is 3.5% at the beginning of 2015. Lidl; with different
retailers and provides goods and services to them at low level of prices. It is the another main
objectives of the company which may includes (Proctor, 2014).
Integrated marketing communications objectives strategies
7P's Marketing Mix
Marketing mix is the basic tool to analyse the significant issues. This helps company to
attain more important goals and objectives in order to meet the customer needs and wants.
Marketing mix includes product, price, promotion, place, physical evidence, people, process.
These marketing mix assist company to promote their sales revenue. It gives better opportunity
which encompass some services qualities which enhance the company brand image in the
market.
Product: Product of the company relates company with customers major product of the
company is quality, brand image, warranty, capabilities, facilitating, tangible, price, personnel,
physical environment, service delivery etc. Lidl having great brand image in the UK market.

Another, it is the most prominent supermarket retailer from being cheapest in the industry. The
products sold by the company are often very similar to the goods of other retailer or supermarket
stores is the most leading market (Iacobucci, Popovich, Bakamitsos, Posavac and Kardes, 2015).
It is the main marketing function which make company competitor and compatible. As they sold
their products at cheaper prices customer think that they sold products at cheaper prices.
Place: place relates with the location where company sales their product and services to
the end consumers. Location, accessibility, distribution, channels and distribution, coverage. In
terms of Lidl they have huge stores across UK and Europe. It depends on the company, location
where they provide goods and services to the consumers. Along with that, it gives great
opportunity to the company which brings new customers at new location. They have variety of
distribution hub across UK. And Europe that stores are maintaining a constant level of stock.
Lidl provides as possible goods and services in less possible time.
Promotion: promotion is the great channel through which company approach large
number of customer toward the company product and services. Promotion includes advertising,
personal selling, facilitating goods, tangible clues and process of service delivery. Lidl is the
another tool which influence the company services (Kumar, Keller and Lemon, 2016). Lidl adopt
low prices and high quality maintained in the market. Besides, they provide product at discount
rates it is the another main objective of the company. It gives quality of products which influence
company objectives. Promotions activities of the company should be creative and innovative in
terms to full fill the customer demand. Promotional activities helps customer to get to know
about the new product and services.
People: People relates employees and customers both are the effective and necessary for
the company. Employees are the essential part of the firm which contributes their large part for
the development of company profit. It makes good impression on the customer satisfaction. Lidl
provides high effective training and development programmes to maintaining the working
environment in the company (Hair Jr and Lukas, 2014). Company needs to make productive
environment in terms of performing better in the task.
Process: Policies, procedures, methods, customer policies etc. these are includes in
processes of the company. It is the kinds of services which influence company satisfaction
approach. Primary process of Lidl is purchase and sell the products and services at low prices.

Moreover, main objective of the company is to keep the all process safe and secure. Consumers
are not included in the process of Lidl (Totten and Cross, 2015).
Physical Evidence: It is the process of making furnishing, colour, layout, noise level,
business operations. The majority of the work is to get the best effective process of working.
Most of the majority stores of Lidl are laid out in a very linear and traditional manner. It is the
leading is the leading area.
Recommendations:
Lidl is the grocery retailer in the UK market which require more product and service in
order to sustain the existing market position. It is the most leading company which require lots of
information and challenges. It is kind of new challenging which influence company objectives or
growth. In order to identified the challenges and risk company may adopt effective growth and
target market in order to enhance the effective growth and challenges. Company should always
take care of avoiding things which spoil brand image such factors are competitors pricing and
product strategies (Proctor, 2014). This German company Lidl based on Low cost business
model which enhance the customer attraction and under cut the competition level. As per the
above discussion that due to low prices company may facing the customer issues of low quality.
Along with that, In terms of emerge with Tesco company gets great platform to build long-term
market growth. It is the kinds of new business opportunities and growth, this wining formula
gives opportunity to compete with leading four supermarket chains such as Asda, Sainsburry,
Morrisons and Tesco. In order to reduce the threat of week pounds company need to adopt some
steps to remove all misconception of the customers (Aldi and Lidl face threat from weak pound,
2018). Company may improves in marketing essentials in order to stable the market position and
brand image. Major key factor for success is attract customers by offering discounts on products
with great quality material. It provides great opportunity for future expansion goals. It gives new
development era. On the basis of Socio-demographic and behavioural approach company may
adopt new strategies and customer policies (Proctor, 2014). Besides, major factors of external
drivers which impact on the company. For that, company also needs to adopt competitors
analysis strategies in order to overcome from the uncertainties. This helps to make the effective
ways of working. Lidl having great brand image through which company may think to expand
their business services in other places as well.

CONCLUSION
From the above discussion, it can be concluded that. Marketing is the essential key factor
which enhance business operations and annual sales. Present report based on Introduction to
marketing which enhance the better services for Lidl. Moreover, it discussed about the
competitors' analysis, SWOT analysis, PESTLE in order to determine the best possible decision
making approach. It provides more great opportunity for the company in order to emerge with
Tesco. Besides, report also researched the market segmentation in order to target market
customers of the company. This helps to expansion in business functions. In order to measure the
company position report also analysed product description, brand image, retailing distribution
and Marketing mix of the company. It provides new opportunity and growth of Lidl. Naother,
major thing concluded that, the major attracting factor of the company is selling products at low
cost business model at best qulaity.

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