Aldi Supermarket Marketing Strategies and Performance

The provided report is an analysis of Aldi supermarket's marketing strategies and performance. It details the company's mission, vision, strengths, weaknesses, opportunities, and threats, as well as its market approach through segmentation, targeting, and positioning. The report also outlines Aldi's marketing budget and controlling measures, providing a comprehensive overview of the company's marketing efforts.

Marketing Essentials

Table of Contents
Marketing Essentials ....................................................................................................................1
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P 1 Key roles and responsibilities of the marketing function....................................................1
P2 How roles and responsibilities of marketing relate to the wider organisational context ......3
Task 2 ..............................................................................................................................................5
P 3 Compare the ways in which ALDI applies the marketing mix.............................................5
Task 3...............................................................................................................................................9
P4 Produce and evaluate a basic marketing plan........................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................13
Books and Journals...................................................................................................................13

INTRODUCTION
Marketing is a crucial tool in a business which promotes is business through understand
the market trends that includes the customer demands which aid to build profit relationships,
profit driven through the making marketing strategies and quality to the customers(Baker and
Saren, 2016). A successful business have to realize the customer significance which makes a
business prosperous, to lead in the market it is necessary for an organization to put some efforts
to make a business strategies that pull the buyers to increase the selling power of a business, but
marketing lies on some elements that are core of marketing, which assist a business to achieve
triumphant. In this report, ALDI is a chosen organization which deals in retail sector, it is a
private firm founded in the year, 1993 by Karl Albrecht, Theo Albrecht. Now it is operated in
almost 10, 366 locations and in countries such as Australia, Austria, Belgium, China, Denmark,
France, Germany, Hungary, Ireland, Italy, Luxembourg, Spain, Switzerland, United Kingdom,
United States, etc.
Task 1
P 1 Key roles and responsibilities of the marketing function
Marketing function has an important role in business organization which helps to identify
the products that have the potential to success in marketplace, through promotional activities.
There are some fundamental functions in that are common in every business organization, it
includes marketing research, product plan, development process, promotion, sales, finance,
customer service, etc. These functions has several responsibilities that raise the organisation, that
consist of management strategies, marketing research, sales support system, product
development, finance team, distribution systems, human resource department, among all these
functions promotion is the heart of marketing. Along with the responsibilities marketing has
some key roles that establishes a bond with other departments that results in increased
business(Brady, 2014).
Marketing plays an prudent role in ALDI, it promoting products is its core function, it
prepares the strategies that pull the customer at the door, of the supermarket. Marketing
department draws an outline of powerful strategies that needed to implement with a
concentration so that can appeal to the buyers, encourage them to increase the purchasing. To
promote it products it uses to advertisement, in newspapers, television, and other print media
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sources, although in current time internet is also a wide media of for advertisement. There are
many techniques that builds a promotion coercive that brings increase sales. Along with the
advertisements there are some other roles and strategies that enhances the buyer power to
improve the profit of a business organization, for that it needed to determine the firms objectives
and goals to achieve(Chamorro-Mera, Mirandaand and Rubio, 2014).
ALDI is one of the biggest supermarket retailer which has the most common strategy that
is discount, it influences the customers easily to purchase a wide variety of products. A business
organization revolves around the goods and services which they provides to the public, with a
most interest that make them to purchase that intended product that have a quality. There are
several marketing function on which ALDI performs its activities and that bring the benefits to
the company, they are as follows-
Distribution – Distribution refers to distribute the task to each department which
involves in the business, what kind of techniques or methods can be adopt to accomplish the
goal and objective, which was predetermined. For an instance, ALDI has distinct sections which
implies marketing with fair effects and in a good manner that can be provides the things in
proper manner.
Finance – Finance is the most essential in every stage of an organization because every
state requires a amount to begin and end up the task, marketing department needs some budget
to start its campaign that influences the customers. Marketing also has different activities for that
it needed to gather some funds, that carry out strategies through a procedures to make an
impression.
Marketing Information - In marketing information, ALDI finds the facts where they
needed to improve from customers perceptions, the gathered market data will make them able to
know the demands of customers, and there accessibility to see whether the campaigns are going
on the right way. The previously determined demands will help them to gain profit, in precise
manner, because they know what kind of stuff customer demand for(Fazlollahtabar, Aghasi and
Forte, 2012).
Pricing – Establishing a price for the products that is offering by the firm, ALDI is
providing the goods and services with better quality, but labelling price accordingly is a big task.
It is necessary to attain the flexible price, so that customers can afford that, in competitive
advantage. Because price has an important role in purchasing habits to influences the customers.
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Promotion – Advertisement is a well – known element of promotions, ALDI utilizes the
advertisements in a specific manner that can lead a products features. Although, there are various
paid approaches to promote the goods and services, there are one of that is social media and
online campaigns that making the things popular(Fırat, 2013).
Selling – Marketing is a base to increase the sales, because making aware the people
about a product is important , until and unless the people does not know that they do not have
any information the product. So, after the information of products, marketing leads to selling that
means the products are display to outlets and customers make their decisions, to purchase.
P2 How roles and responsibilities of marketing relate to the wider organisational context
Marketing plays a vital role in organization, but along with that location and is also has
importance, cause the selecting a particular geographical region where it is the marketing team
putting up its efforts improves the profitability of business organization,marketing team provides
the information that help to boost up the selling through the collection the information about the
potential products which are desired by the population and that aid to attain goal of a business.
Besides the roles of marketing, it has some responsibilities to communicate with other
department within an organization, which is necessary because the interrelation in sections
provides the information that impacts on one another. ALDI comprises marketing techniques
which relates with the other sections of the firm, to extend the business and it also monitor the
requirements and execution of the activities that are needed to accomplish a task through out the
procedures. Monitoring and management is an example of a good management that is associated
with marketing department, its unity with other sections aid to provide the continue supply in to
market, and because of that it can fulfil all desires in the marketplace. Below are the necessity
that tells why a marketing team needs to collaborate with other departments(Forshier, 2012).
Human resource - Marketing section of ALDI requires to communicate with human
resources department, that needed to recruit the new employees, that works under sales force, so
that there is no hurdle to assist customer when they are looking for some specific product or
paying the bills at the time of checkout, and there is also some other sections which needs human
staff like finance to maintain the accounts. There are some other requirements of the staff such as
management of a supermarket, suppliers, and so on, who provides the services to the customers.
Product development – Marketing team communicates with product development to
ensure the quantity, which is going to manufacture with the aim to providing in market place,
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that helps to maintain the supplying the goods in market, so there is no over stocking and under
stocking problem occur, because marketing team renders exact information to the production
team, so that they will produces according to the demands, to reduce wastage and that will also
save the money(Gertner, 2011).
Administration and finance department -Marketing team have to stay in touch with
administration and finance of a company, ALDI is a big brand, so it must be careful to spend its
money. Marketing team makes a budget which is needed in different phases of marketing, for
that it have to send the document to the authorities who sanctions the amount and approval from
the governing body is mandatory, cause without their approval finance department will not allow
to spend money.
Customer service – It is true that ALDI is a one stop destination, despite of that,
customer may have some problems in some cases, for that there is a customer service department
where people can complain or ask their queries, and marketing section will get the information
from there and analyse the facts what people actually wants from ALDI. So that the things can be
improved in better manner, and there is no further implications in future and that can increase
market visibility.
Quality of Product – ALDI offers a quality product as that promised, because product
quality matters a lot, in order to satisfy the customers. Customer satisfaction is important for
every business, that leads to compete in market scenario.
Assessment of risk- Marketing team is working with the risk assessment team that
recognizes the existing risks in the market, so that they can find the solutions within time frame,
to implement successful products and services. If there are some risk occurs in the present time
then by using problem solving approach will be used to find out the solutions that can effectively
minimized the risks(Jones and Rowley, 2011).
Suppliers – Marketing team analysed market requirements then they convey the message
to the suppliers, to supply the goods as needed, so that overstocking can be trim and less
wastage. ALDI has so many suppliers as it deals in different kinds of products, its marketing
team identifies the needs of the people and then it interact with dealers, so that extra space will
not be covered to block the area which can be utilise in putting in some other kind of stuff.
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Task 2
P 3 Compare the ways in which ALDI applies the marketing mix
Marketing is operational functions that performs some activities that are practised to
make the people aware about the goods and services, in the market where sellers relies on the
potential buyers, to increase the sales. Sellers used to promote the products through a wide
variety of advertisements that impacts on firms existence(Joshi, 2012).
Marketing strategies includes marketing mix that involves 4 Ps that shifted to 7 Ps, that
consists a set of marketing tools, by blending all these tools a market response is generated, in
order to attract the people to enhance the purchasing power of customers. The marketing mix
consists of product, promotions, place, price, people, process, physical evidence, that are making
difference for different supermarket, here ALDI is comprising with IKEA, because both
companies are using same marketing mix strategies, but they have diverse influence, that are
described as -
Marketing Mix Tools ALDI IKEA
Product ALDI offers a huge range of
food products which stands at
the same level of other quality
brand(Kennedy and Parsons,
2014). The products which it
sells these sourced by the
selected suppliers and they are
abide to maintained quality of
the products that' why it
charges less from other
supermarkets. It also renders
the specialized beverages like
fresh fruit juices and
vegetables, health and beauty
products, clothes, stationary,
IKEA offers a huge range of
furniture for coffee tables, side
tables, TV solutions, DVD
storage, shelves, sideboards,
bookcases, sofa beds,
armchairs, leather sofas and
fabric sofas, as well as many
other products. There is a vast
variety of products so that
people can make their choices
and it is primarily focused on
at the tastes and needs of the
customers. IKEA brings
product to the local market
after researching the local
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Electronic products,
Household goods and Soft
tools. It keep experimenting
with products except food, it
changes its clothing collection
according to season, and it is
renowned for it best wine in
Germany, ALDI Talk and
ALDI Mobile.
culture and people's lifestyle. It
has a variety of styles and with
affordable prices. But it
maintains the quality of the
products, the raw material it
uses, is good, low pricing
never compromises with
qualitative products.
Price ALDI has a strong customer
relations sue to its less price,
that can affordable by anyone
with quality assurance, which
is not offered by the branded
competitors(Khan and Adil,
2013). It uses the unit pricing
strategies for groceries so that
customers can easily compare
with others. Market
penetration uses to introduce a
new product in market so that
it can easily enters to the
market, competitive price
helps to compete against rivals
and maintain the economies,
psychology pricing considers a
slight difference in rates so
that it can make an image in
customer mind.
When its comes to the pricing
IKEA is also a brand which
offers low price like ALDI, it
uses discounts . However, the
customers are satisfied with
the price what they are paying
against the quality, they are
getting. The products are
neither too expensive nor too
cheaper regarding the raw
material used in
manufacturing. It also saves
money on flat packaging for
shipping(Lehmann and et. al.,
2016).
Place ALDI group has more than IKEA presently serving in 28
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8000 stores across 18 countries
and every week a new store is
opened in Britain. To
maintain the cost it keep
layouts very simple for the
customers. ALDI acquires the
stuff in bulk from huge range
of suppliers and stored them at
warehouse, but with
maintaining quality, it cares
about to minimum disposal
while transportation of goods
and using environmental
friendly equipment(Lovelock,
2011).
countries with around 340
stores. Recently, it changes its
strategies to acquire its stores
in busy area, so that customer
can easily reach there to
purchase. It has smaller stores
inside the town that contains
limited reange of products,
whereas, the big stores at city
centre showcases a large
products. It online website also
offering a broad variety of
product which is helping to
grow higher from 2016, it
enhances the accessibility of
brand and for that it
established a pick up points for
the customers. It's e –
commerce model is available
in 14 countries, that improving
the convenience of the
products.
Promotion ALDI does not keep any
marketing department in
Germany, cause it claims to be
cost saving strategy. Thus, it
invests negligible amount for
promotions, rather to spend
money in promotional
strategies it uses such schemes
that influences customer's
IKEA uses all kinds of form
for promotions, as it is one of
the best destinations for
furniture, due to its popular
brand name, and pricing
structure(Malhotra, 2015). It
uses best promotions strategies
such as sales promotions and
trade promotions. It offers
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buying power, like 'Super
Buys' which is available only
the last stocks, and it is every
week organizes by the firm an
d it publishes the the news to
inform people, through it
'ALDI informs' newsletter.
discounts through coupons,
price discounts, festival
promotions, and other
gimmicks, it juices all the
marketing promotional
strategies to give the
advantages to their customers.
Process ALDI makes it product
findings very easy through its
sheer layout, that makes easy
selection for customers, that
reduces the number of
employees, which was
required to assist customers.
ALDI offers limited high
quality, and price so that
customer do not think about to
make decisions, it will save
their time. It also have large
barcodes and broader longer
conveyor belts to identification
and fast billing(Ogunmokun
and Tang, 2012).
The furniture made by IKEA
itself, it uses own wooden
furniture and wooden
components to adorn the
house. The customer step to
the store selects a products and
order that, collected it and
drive back to their place by
themselves. This is a part of
low pricing services.
Physical evidence ALDI is world renowned
brand in retail sector, and has
the simple business processes,
standardisation, and global
pricing. Approximately, 85%
of the stocks is provided for
households from the brands. It
IKEA is a business which
encompasses sustainability,
and many of its goods are
recyclable sue to woods, that
refers to green energy
solutions such as solar power.
It has very large stores, and
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is operated same price at
global level which offers
nearly, 30% off on
products(Ozuem and Prasad,
2015).
they all are situated out of
town and offer a huge
selection of furniture products.
Its well – known clients are
restaurant, its products are tend
to adorn the large car parking,
that offers a wide area to
move.
Task 3
P4 Produce and evaluate a basic marketing plan
Marketing plan consist of all those documents which is associated with marketing
strategies of an enterprise. This is very important to design a proper marketing plan for Aldi as
this would help them in taking correct decisions regarding investment, promotion and many
more. As Aldi is dealing with retail sector, they need to manufacture better quality of goods and
services in order to establish strong position in market. For doing the same, they need to consider
below written marketing scheme(Papasolomou and Melanthiou, 2012).
Mission of ALDI :
The aim or mission of refereed venture is to cater quality based merchandises to their
expected consumers at affordable prices. The main reason of doing so is to meet all desires and
request of users.
Vision of Aldi: The vision of the referred enterprise is to raise the purchasing power of
customers by providing them low price products.
Objectives of ALDI:
 To provide better quality of products and services to the customers for satisfying their
desired needs or wants.
 To become world's number one retail store by attracting number of customers and
increase brand value in well manner.
 To generate higher revenues or profits while running business at global level.
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STP of Aldi
In order to raise the total sales of an enterprise it is important that required level of
strategies are maintained so that sales volume can be maximised. Given below is the description
of how Aldi can increase its revenue:
Segmentation – In market there are different variety of customers and if they are divided
into subsets sharing common demands than their satisfaction level can be raised to a great extent.
By categorising the customers into small groups it can accordingly maintain the desired level of
standards for the customers(Rossi, Allenby and McCulloch, 2012).
Targeting – It is another technique of raising the total sales. in this a particular group of
market is focused and accordingly the marketing strategies and product related decisions are
taken. It is predetermined that what are the expectations of clients from a particular chain store
and hence some are made present for them. this way an effective connection also gets developed
among the brand and the work force. Aldi can focus on household products to attract the female
clients as it is a big group and can be influenced by providing them a range of variety.
Positioning – it is one of the most important activity for any enterprise to develop. By
delivering commodities of good standards and quality company can place the product more
effectively. Aldi is successful in doing so as customers are happy with the quality delivered by
the referred enterprise(Tripathi, 2013).
SWOT analysis of Aldi
SWOT analysis is a process through which different organisation gets to know about
their strength and weaknesses. It is important to evaluate the factors present within Aldi which
has their impact on business operations. This will help in creating an effective plan for the
referred enterprise. SWOT analysis of the referred enterprise is given below:
Strength – The major strong point of the referred enterprise is that it has achieved the
competitive advantage in its field. It is known for providing quality products in market at
reduced price which has helped in better establishment of the brand in the eyes of customers.
Range of commodities are made available under same roof which makes it easy for customers to
buy and hence their satisfaction level remains high. the major strength of this firm is that it
provides products at affordable prices which develops the purchasing power of customers. It is
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also doing well as Aldi has its stores in different parts of the world which shows that I have a
strong presence like in Germany it is having 2500 stores which is a good amount. In 2015 it
received award for being one of the best store in 2015 which further added its brand value and
helped in raising the goodwill of the firm which develops the total sales of the firm. As the brand
sales many of the items on its own name it has raised its worth in the eyes of customers and all
the quarries of clients are solved at the same time which shows that the firm has a strong
customer relationship(Baker and Saren, 2016).
Weaknesses – The major weakness which is faced by the referred enterprise is of
positioning itself in market. As Aldi is providing its products on comparatively les price
customers has made an image that this particular brand belongs for the lower class of people.
when a product is made available at reduced price it is considered as of low quality which is not
always a fact. It is necessary for this brand to develop a positive image as otherwise great loss of
potential customers will be there.
Opportunities – By raising the present standards of products it can capture a greater
market share as customers has made an image that Aldi deals in economic goods only. It can
further grow by exploring new areas like Africa, Asia etc. where it is not existing in present.
Threats – due to continuous dynamic business environment Aldi is prone to different
dangers. It is important that they are identified in advance so that accordingly corrective actions
can be taken. Due to the excess of margins present in the retail sectors more and more units are
becoming a part of this industry and hence can affect the total profitability of the firm(Brady,
2014).
Marketing mix
Under this organisation has to be more attentive as decision regarding each one of them
has a great impact on the growth of business. Hence it is important that they are taken with
maximum care.
Product – Range of variety is supplied by the referred enterprise which makes it effective in the
retail sector. It provides grocery and other item that has maximum demand in market.
Place – There are almost 8000 stores of this firm which shows that it has a good number of store
all around.
Promotion – Aldi do not use any promotional strategies rather it has own discount plans such as
'Super Buys' and swap and save.
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Price – Aldi has discount strategies like unit pricing, market penetration, psychology
pricing,etc., that causes to sustain its low price strategy(Chamorro-Mera, Miranda and Rubio,
2014).
Marketing Budget:
Aldi can consider an appropriate marketing budget which is requires
for promoting the business in the particular market. These are as
followings:
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 54000 15000 15000 26000 20800
Investment 20000 15000 16000 14000
Total 54000 35000 30000 42000 34800
Marketing
expenditures
Advertisement 10000 7200 6800 6500 6200
Sales promotion 2200 2000 5000 3000 9100
Direct marketing 7700 6500 2500 7500 3000
Total 19900 15700 14300 18000 18300
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Available balance 34100 19300 15700 24000 16500
Controlling: It is necessary that to review and check the entire performances in well
manner. So that better plan can be executed and implemented for ALDI. Manager have to
considers the several tools or techniques for solving any issues or problems in well manner.
CONCLUSION
This report is based on marketing essentials, that elaborates about the marketing factors
which are required to sustain in marketplace, every business uses to some marketing techniques,
that used to establish market. Marketing has some roles and responsibilities that produces the
sales to maximise the profit of the firm. ALDI is a supermarket retailer which deals in all kinds
of products like grocery, food products, attires, etc. The report is consists of its accessibility in
the market through making its relationship with other departments within itself, the technology is
used by itself has a major role to capture the market. It minimize the displays and maximized the
store front, so that people can easily find the place to purchase the products. It involves the
marketing mix that includes 7Ps that applies to capture the market. The mission, vision and
objectives, strength. weaknesses, opportunities and threats are described that needed to attain the
victory of a firm in order to reach at perch, which is desired for any business organization. Aldi
uses segmentation, targetting, and positioning to develop marketing strategies.
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