Marketing Mix and 7Ps of Marketing for Aldi

The assignment discusses the importance of marketing in organisational growth and success, highlighting the roles and responsibilities of a marketing manager. It also explores the elements of marketing-mix, which enables firms to perfectly amalgamate their product, price, place, and promotion variants. A detailed marketing plan for Aldi is provided, including a SWOT analysis and STP (Segmentation, Targeting, Positioning) plan. The assignment concludes with references to relevant sources.

MARKETING
ESSENTIAL

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Role of marketing and its interrelationship with other functions of business organization...4
Responsibilities and roles of marketing relate to organisation...............................................7
TASK 2............................................................................................................................................8
Marketing Mix of ALDI ........................................................................................................8
TASK 3..........................................................................................................................................12
Marketing-Plan.....................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
In today dynamic business environment where in there is tough competition in market
not only in terms of large no of competitors but also because even the customer today has
become quiet knowledgable and selective about goods and services they purchase (Berkowitz,
2016). Thus, marketing helps a firm to capture attention of its target audience by creating
relevant products and services to reach new potential customers and to retain its existing target
audience.
Aldi is one of the discounted supermarket chain which was established in 1913 with its
headquarters Germany. Aldi's main products includes daily necessary household products,
vegetables, dairy products, clothing range, beverages both alcoholic and non alcoholic and so on.
This project will discuss the various roles and responsibilities of marketing department
along with evaluating how it influence other function of business organization. Further in report
interrelationship of marketing function of Aldi with its other departments will be discussed to
analyse how it contributes in company;s success and growth. In later part of project a detailed
marketing plan of Aldi will be analysed besides giving synopsis about comparative study of
company's marketing mix strategies in relation to its competitors.
TASK 1
TO: Marketing Manager Aldi
FROM: Assistant Marketing Manager, Aldi
SUBJECT: Key roles and responsibilities of Marketing Department
Date: 13.06.2018
Role of marketing and its interrelationship with other functions of business organization
Marketing is a customer focused concept that involves tightly integrated efforts for
discovering and creating innovative products and services as per customers needs and
requirements with minimum cost so that company can attain customers satisfaction which will
ultimately reap benefits of high profits and strong hold on market share of the company.

Today, the needs, preferences, fashion, taste of customers changes so frequently in blink
of eye that it becomes critical yet quiet important for a business to cope up and manage these
demands in order to satisfy its target audience and to maintain and enhance its edge in market
(Blythe, 2012). For handling this crucial situation, it is essential for a form to monitor and
evaluate past and present market trends so as to predict likeable future changes that can occur
and to address unfulfilled wants and needs of consumers by introducing new and creative
products to get high sales volumes and maximum returns. Marketing is a vast concept that
involves a firm to undertake various activities including coordination with other functional
departments like HR, finance etc. in order to formulate best and most appropriate strategies,
products and services in accordance with different needs and aspirations of various consumers
(Brassington and Pettitt, 2013). Marketing helps a firm to communicate benefits and value of its
products and services by making use of various tools and techniques for promoting its products
such as advertising, direct selling, online marketing etc.
Marketing department of Aldi assist the company in enhancing its revenue, market share
and in its innovations by undertaking various roles and responsibilities such as formulating
various strategies, marketing plans by analysing past and present market environment and
various other functions that are related to conversion of raw material into delivering it to end
users. Mentioned below are some of the most prominent roles and responsibilities undertaken by
marketing department of Aldi:-
Market research- Marketing research formas the basic function of marketing function. It
involves gathering and analysing information and data related to customers taste, needs,
preferences, business rivals tactics and schemes, prevailing market trends, government policies
etc. with the help of various tools and techniques like survey, questionnaire, internet,
government portals and many more other sources (7 Functions of Marketing, 2017). The
marketing manger of Aldi evaluate this information to make necessary modification in its
existing products in terms on adding new features in it or to design an entire new product that
perfectly fits into customers specifications. Also it helps a firm to make alteration in its
marketing and other strategies so that it can remain ahead of its market contenders.
Monitoring and managing social media: In this era of digitalization, where in
everyone prefers to be techno friendly and make use of internet to carry out various activities
starting from shopping to paying bills, to entertain themselves social media can serves as a

useful option to gather information related to market scenario, customers, competitors and so on.
Also it can serve as an important, effective and attracting medium to make its customers aware
about its new products, various offers and discounts and other company related information.
Serving as a media liaison: Another important role of manager of marketing department
is to act as key interface between business and its target audience. Its has the responsibility to
represent company in various functions, act like a spokesperson on firm's behalf to address
complaints and questions.
Promotional Activities – Aldi adopts a very cost effective strategy for its sales
promotion spending negligible amount for its sales promotion. Sales promotion is concerned
with communicating the information , value and benefits related to a product or service offered
by a company by utilizing various attractive and innovative methods like advertising, publicity,
direct selling etc. (Cavusgil and et. al., 2014). This helps a firm to expand and diversify its
business by reaching potential target audience and capturing their attention towards the products
and services inducing them to buy it.
Setting up pricing – Another major function of marketing department of Aldi is to
prepare strategies related to setting price for its products. Aldi uses market penetration strategy to
for popularizing its new product and to enter and gain share in market quickly. It keeps prices of
its products competitive so that people of every income group can afford it. This benefits
company in increasing its brand image across world giving them advantage to diversify their
business around the globe in short span of time. To maintain its competitive edge on others Aldi
works with motive of providing quality products at lower cost.
Management of firm's Product and service- Product/Service management forms one of
the key responsibility of a marketing unit of Aldi which involves various activities of procuring,
processing,maintaining and improving a product or service mix in relation to changing customers
requirements and emerging market opportunities (Shaw and Director, 2012). ALDI keeps on
monitoring the changes occurring in business environment in order to ensure that it is not
lacking anywhere in catering its customers needs. Aldi by evaluating people tastes and
preferences provides various innovative products and try to introduce new technologies for
providing better services to its customers to attain their satisfaction. Aldi by maintaining an
effective and efficient channel of distribution make sure that goods are delivered to end users on
time reducing their waiting time. Also it provided good after sale services such as exchanging

product in case of its being a defective one, handling their queries and solving their doubts
patiently and so on. This induce customer's trust in the company and thus give benefit of mouth
publicity, friend and family referrals and built up positive brand image of firm.
Illustration 1: Marketing Functions
Source:(Different Functions of Marketing, 2018)
Importance of Marketing
Product innovation: By analysing about what are the actual needs and preferences of a
customers, what are the new and latest market trends, competitors strategies and other
information related to market environment marketing unit of a Aldi initiates product innovation
either by making necessary modification in existing product or by introduction an entirely new
product as per customers demand (Cooper, 2013). Through innovation ALDI can compete with
external factors.

Creating brand awareness : One of the major a role of marketing unit is to communicate
its target audience about company's product and services, its associated benefits and about its
value by adopting most appropriate tools and techniques for sales promotion. Thus, it helps in
attracting new customers and retaining old ones thereby contributing to company's growth and
profitability.
Relationship building: In order to maintain and enhance its market share firms like Aldi
needs to build up a strong customer relationship so as to gain consumers loyalty. Aldi by
ensuring that its products and services are customized as per its audience taste and
preferences,that goods are delivered on time without any delays and making sure that its after
sales services are up to the mark in handling customers queries and doubts works towards
achieving customer satisfaction thereby maintaining its trust and brand image in eyes of its target
group (Jones and Rowley, 2011).
Responsibilities and roles of marketing relate to organisation
For enhancing its growth and to attain high performance in its operations marketing unit
of Aldi collaborate with with other business divisions such as HR, finance, IT and R&D so that
work efficiency could be maintained leading to qualitative and innovate products and services
generating higher sales volumes and higher revenues. Mentioned below is description of
interconnection of marketing unit with other departments of a firm:
Marketing and R&D Department: Research and development department of Aldi
assist the marketing department by providing them with information, statics and other relevant
data related to customers buying behaviour, their demands, market trends, competitors tactics
etc. By analysing this information, comparing past and present data marketing department
introduces necessary alternation in its existing policies, strategies, processes and products or
introduce an innovation in these areas.
Marketing and Human Resource Development: Aldi been customer centric leading
discounted chain having its 10000 stores in 20 countries maintains a team of more than 1044000
employees who handles its operations. Thus, employees forms the cornerstone and point of focus
for Aldi as they serves as a source of knowledge, skills and capabilities utilizing which company
fulfil its objectives (Silver and et. al., 2014). Employees represents face of company for
customers as that are people with whom customers interacts,.Thus, to achieve customer
satisfaction it is of utmost importance for Aldi to have a team of dedicated professionals who are

knowledgable and qualified enough assist and handle customers doubts. HR department of Aldi
by implementing a marketing tools attract potential candidates both from external as well as
internal sources to apply for the job and select the most appropriate employee. Thus, by making
sure that marketing unit have right person, at right job profile with required capabilities and
skills HR department of Aldi hire talented personnel who assist in achieving objective of firm
both short and long in an effective manner.
Marketing and Customer Service Department: After sales services plays a vital role in
retaining present customers and to satisfy potential one who are making purchase with company
for the first time. business enterprise can earn higher profits by satisfying their target audience in
an effective manner. Aldi customer service unit tries to make it customers happy and satisfied
by providing them 24*7 assistance in handling their queries and doubts. Also to make it more
convenient for consumers to reach company executives Aldi customer service department are
making use of social networking sites where in consumers can send their queries and can get
instant reply (Lilly, 2014).
Marketing and operational department : Operational department of Aldi is mainly
concerned with managing and controlling various business activities such as converting
resources into finished goods, handling supply chain and distribution system and so on. By
working in close association with marketing department it get benefit of finding information
related to potential suppliers that are available in market who could provide required raw
material in comparatively reasonable prices. Further with these units work conjointly to prepare
and implement various effective techniques like TQM, inventory management etc. that assist in
improving quality of its existing products.
Marketing and Finance Department: The marketing managers of Aldi are in constant
requirement for economic resources for conducting planning, research and to evaluate
effectiveness of marketing strategies. Thus, it get aided by the finance department of Aldi that
provided requisite funds and prepare budgets for them so that marketing manager could
effectively carry out it activities within limited resources.
Company Policies: Marketing helps a firm like Aldi to get an edge over its business
rivals. It is because it aid company to modify its products/services in accordance to consumers
needs. Thus, marketing directly assist top management to formulate and fix various policies

related to price, promotion, distribution, manufacturing etc. so as to provide right type of
product at right price, at right place through right promotional strategy.
Marketing and employees: Marketing plays vital role in enhancing employees skills and
performance. For instance,in case of Aldi which is UK's fifth largest grocery chain, its sales and
revenue totally depends upon efficacy of its workforce. Therefore, by providing its employees
with current and accurate data and information related with organization such its annual
revenues, distinctive features of its new products and service in comparison to other substitutes,
upcoming offers, discounts etc. Thus, all these information enables staff to efficiently handle
queries of its consumers and to provide them viable solutions.
Thus marketing department is interrelated with various other functions of an Aldi to effectively
work towards its key elements such as research for which information is aided by R&D
department, strategy that are been based on findings of market research, planning and tactics
which is prepared with close discussion of various department managers and tactics
TASK 2
Marketing Mix of ALDI
Marketing mix of every company outs its customers into center of focus. In order to
attain an edge over competitors and maintain and enhance brand image marketing department by
tries to create a perfect blend in its marketing mix by producing right product, sold at right price,
in perfect place by using most appropriate and attractive promotional technique (Marketing Mix,
2016). Thus, by formulating a smart marketing mix strategies Aldi can achieve high
performance, productivity and profitability by attracting consumers and induce them to buy their
innovative products. Mentioned below its the comparative study of marketing mix of Aldi with
one of its leading competitor Lidl.
Basis ALDI LIDL
Product Aldi claims to offer a variety of
products ranging from
household goods to beauty
products, fruits and vegetables,
clothes, beverages etc. with high
LIDL deals in same product as
offered by other supermarkets
at cheap prices. The distinctive
feature of Lidl is that it offers
products in their original brand

quality at reasonable price in
comparison from other brands.
Also, it experiments with its non
foods products by modifying its
product line in accordance with
season.
names unlike Aldi (Wirtz,
2012).
Price Aldi follows unit price strategy
giving advantage to its
consumers to compare it with
other firms price. Having a
strong customers and large
market share Aldi gains
economies of scale in its
production leading to keeping
product quality high and prices
affordable. It various pricing
strategies like market
penetration, cost leader pricing,
psychological pricing enables a
company to attract new
customers and retain the old
ones.
Lidl created image of offering
private labels products at
affordable prices. Their have a
clever pricing strategy which
focuses on selling more at low
price level.
Place Aldi has a strong channel of
distribution. It has around
8000 stores in around 20
countries as well as its own
warehouses that helps
company to maintain its
visibility to customers and to
Lidl maintains a good regional
distribution centres cross UK and
around 10000 stores across
Europe where it provides quality
products at reasonable prices.

cater their needs on time
without any delays (Malhotra,
Birks and Wills, 2013).
Moreover it also well
maintains its online presence
through its web portals which
make it convenient for
customers to track down
products details and nearest
store location.
Promotion Aldi spend very negligible
amount on its sales promotion
and follows a cost saving
strategy. It extensively uses
print ,electronic and online
media to promote its brands,
communicate its offers and
discounts schemes to its
customers. It also make us of
email marketing and other
attractive promotional
techniques like “swap and
save”, “like brands. Only
cheaper” etc.
Lidl uses public relations,
integrated promotional
campaigns and other methods of
online, electronic and print
media for sales promotion.
People Aldi has a very smart and
convenient store layout which
reduces the requirement of
employees needed on every
floor to assist customers. It
Lidl pays quiet attractive salary
to its employees whose
performances are marked on the
basis of how fast and how many
items that they can scan in

has a proficient team of
employees who are well
trained and dedicated towards
their work as they are paid
well in accordance to their
capabilities and skills. .
shortest time. It provide its
employees with proper training
to make them proficient in their
tasks.
Process Aldi follows a very smart and
well coordinated store layout
which assist customers to to
easily find what they are
looking for. Also it stocks
limited quality brands which
prevent people in getting
confused and decreases their
selection time.
It primary process involves
buying and selling large quantity
of goods at lower prices. Lidl do
not involves customer in any of
its procedure or processes.
Physical Evidence Aldi is known for its simple,
standardized business process
and for its pricing policy. It
claims to provide 30%
cheaper products as compared
to any other brand and is the
only store to maintain same
price for groceries across
world.
Lidl stores follow a linear and
traditional layout design
assisting consumers to to have
easy access to find and purchase
products. It utilizes its brand
colours in its stores and its
surroundings to make it
convenient for them to locate it.
TASK 3
Executives Summary: The marketing plan will provide an overview of firm along with vision,
mission and objective of it. Further it will provide competitors analysis, internal analysis,

marketing mix strategy and marketing budget for Aldi. Also synopsis about various strategies
related to online marketing, referral , retention and increasing transaction price will be provided.
Marketing-Plan
Company Overview
ALDI is world renowned discount supermarket chain managing its operation in around
20 nations with more than 10,000 stores. Company deals in a wide variety of products
comprising household products, electronic appliance, beauty products, groceries, clothing range
and other non food items of high quality at reasonable price level (Mihart, 2012).
Vision and Mission Statement Aldi :
Vision: “ Top quality at incredibly low prices – guaranteed”. It aims at providing products by
following its ideologies i.e. huge savings, excellent quality, outstanding value, superb special
buys and buy with confidence (Papasolomou and Melanthiou, 2012).
Mission: Aldi mission states “ Simply Aldi” which describes its aspiration to follow its three
core values – simplicity, responsibility and reliability so as to provide its customers with top
quality products at affordable prices helping it to further expand its market position.
SWOT Aldi nalysis:
Strength
 Provide high quality products at
reasonable prices.
 It captures large market share in
Germany, operating around more than
2500 stores.
 Due to large customer base it has
benefit of economies of scales in its
production
 It keeps on modifying product line of
its non food items in accordance to
season (Peter and Donnelly, 2011).
Weakness
 Although being discounted retail chain
Aldi still has to increase prices its
certain product due to fall in pound in
order to maintain its profitability .
 Although Aldi has experienced an
increase in its growth rate but it stills
lacks behind in term of market share
from British supermarkets.
 Aldi is alleged to provide lower quality
products as people generally perceives
economic goods to be of cheap quality
 Aldi lacks in no of staff in its stores so
as to mange operations in case of
increased footfall Low customer

attraction
Opportunities
 Aldi requires to expand its operations
by capturing potential markets in
emerging economies like India .
 Company can also have potential to
diversify its business in UK as well as
Aldi currently operating 700 stores
aims at having 1300 stores by 2022
 With immense competition from it
leading business rivals like Lidl and
other big brands like TESCO, Walmart
etc. company needs to intensify and
spend more on its promotional
activities.
Threats
 High level of competition from other
supermarket brands.
 Aldi fails to provide a “complete
shopping experience” to its customers
under one roof .
STP Approach:
Segmenting Customers who are looking out to purchase household products and
grocery at affordable prices.
Targeting Family and household Groups.
Positioning Aldi is already gain popularity with its private labels. Having strong
base in Germany, company is now targeting other emerging economies
internationally.
USP Aldi's USP is its High quality products at affordable prices
 Pricing : Firm follows a distinctive combination of Psychological pricing scheme,
market penetration, unit pricing, competitive pricing and loss leader pricing strategies to
offer most reasonable products. This enables Aldi to remain competitive and get an edge
over its rivals.

 Distribution Plan: Aldi follows a selective distribution channel method where its
directly distributes products to its end customers through its efficient logistics and supply
chain management.
 Promotional strategy ; Aldi is renowned and popular among customers for its premium
products at affordable price that makes firm to spend minimal amount on its sales
promotion. However firm make use of print, electronic and online mediacomprising TV
commercials, leaflets, newspapers, emails and promotion though various social apps like
Facebook ,Twitters etc.
 Online marketing Strategy : Aldi should make use of Search Engine Optimization that
will assist firm to get its website placed on the top whenever particular keywords as
selected by firm will be searched by any customers around the world. Aldi could opt for
keywords like supermarket, retail store, discount market, affordable products, groceries,
general merchandise, lifestyle and retail, online shopping store etc. Also Aldi in paid
online strategies could opt for pay per click and ad retargeting strategies to attract
maximum visitors to its online website. Company should also intensive use of social
media websites such as Facebook, Twitter, Instagram etc. that will definitely help firm
to reach out large target audience. Aldi initially was a partnership firm between two German discount super market chains.
Also Aldi is having joint venture with Free Energy a local petrol retailing firm. Referral Strategy: Yes customer referral system should be adopted. It is because for
consumers it is easy to trust word of mouth of its friends, family or peers rather than what
company is communicating. Thus, it is provide large benefit to company . Also there is
should be some rewards points awarded to customers who refers company to someone as
it will develop their trust and loyalty towards firm. Strategy for Increasing Transactional Price: Aldi dealing in a wide variety of services
make use of Bundle pricing in some of its product areas such as in mobile segment.
 Retention strategies: Aldi is recommended to launch a loyalty program such as a club
cards to retain its consumers and to compete with its rivals. It is because as revealed by
loyalty specialist agency ICLP Aldi customers expect company to offer certain loyalty
program.
 Financial Projection:

Marketing budget
Particulars
1st
year
2nd
year
3rd
year
4th
year 5th year
Initial money 3000 6000 8000 10000 12000
Investment 13000 20000 25000 12000
Total 3000 19000 28000 35000 24000
Marketing outlay
Promotion 4000 2000 3000 4000 2000
sales publicity 4000 4000 5000 3000 3000
Direct selling 4000 2000 5000 4000 5000
Total 12000 8000 13000 11000 10000
Application of 7P’s to achieve marketing objectives Product: By providing variety of products and services with high quality but at
reasonable price Aldi is able to acquire large market share. Price: By following a collective pricing strategy involving aspects of unit price,
psychological pricing, cost leadership and market penetration strategies Aldi is to set
most competitive price that is affordable to every one.

 Place: By maintaining strong distribution channel and efficacy in supply chain
management Aldi is been able to establish around 8000 stores in 20 nations. Also by
launching its online website company is having significant online presence that enables in
capturing wide market share. Promotion: As Aldi offers high quality products at affordable price customers are
already well aware about the brand. Thus, company incurs minimum expense on its sales
promotion. However its promotional activities includes use of print, electronic and online
media apart from various discount schemes. People: Aldi employees more than 30,000 employees in UK and about 104,4000 staff
across its global stores. Thus Aldi maintains a proficient team who are being provided
with necessary training time to time to enhance their skills and knowledge about various
changes occurring in market. Process: By maintaining a well coordinated store layout having limited quality brands
Aldi facilitates its customers to shop easily reducing and by reducing their selection time.
 Physical Evidence: By maintaining brand image of having simple standardized business
process Aldi is been easily recognized by its customers. Also, its unique offering of high
quality at affordable price makes it popular and distinctive from its leading competitors.
CONCLUSION
The project undertaken concludes that marketing plays critical role in organisational
growth and success as it helps firm to formulate those strategies and manufacture those products
and services that are as per customers demands and aspirations. Moreover marketing manger
undertakes various roles and responsibility and coordinate activities with other department so as
to enhance efficiency of various decision undertaken related to product development,
modifications, policies etc. Further it discuss about elements of marketing-mix which enables
firm to perfectly amalgamate its product,price,place and promotion variants. Further, detailed
marketing plan of Aldi with SWOT and STP plan is discussed.

REFERENCES
Book and Journal
Online
7 Functions of Marketing, 2017. [Online]. Available through:
<http://smallbusiness.chron.com/functions-marketing-business-32399.html>.
Marketing Mix. 2016. [Online]. Available through:
<http://www.marketingteacher.com/marketing-mix/>.