Marketing Essentials Report

This report examines the marketing strategies of Aldi, a leading discount supermarket chain. It analyzes the key roles and responsibilities of Aldi's marketing function, its interrelation with other departments, and its marketing mix strategy. The report also includes a detailed marketing plan for Aldi, outlining its vision, mission, SWOT analysis, and budget.

Marketing Essentials

Table of Contents
INTRODUCTION ..........................................................................................................................2
TASK 1............................................................................................................................................3
P1 Aldi : Key roles and responsibilities of the marketing function............................................3
P2 Interrelation with various functional departments.................................................................4
TASK 2............................................................................................................................................6
Marketing mix (7Ps) Aldi...........................................................................................................6
TASK 3 .........................................................................................................................................11
P4 Produce detailed marketing plan..........................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing forms the heart and soul for the success of a firm. Marketing comprises all the
activities that is related with producing, delivering and communicating about the products and
services of a firm so as to induce customers to make a purchase. In today's time marketing plays
a essential role in the growth and development of a firm by making its potential buyers aware
about its feature and befits of using it (Armstrong and et al, 2015 ).
Aldi is one of the leading discounted chain of supermarket which was establishes in 1913
with its headquarter base in Essen, Germany. It has around 10,000 stores in 20 nations which
generates it a revenue of around 30.5 billion euros in 2017.
This assignment will discuss about the key roles and responsibilities of the aldi's
marketing functions, further explaining their interrelation with various other functions of
organization. It will provide a comparative study of marketing mix strategy of Aldi with its
leading competitor TESCO . A basic marketing plan will also be explained .
TASK 1
P1 Aldi : Key roles and responsibilities of the marketing function
Marketing forms cornerstone in deciding success of a firm as it assists firm in catering
the needs and wants of a firm by providing them with products and services they aspires to gain
customers satisfaction. It is the efficiency of marketing department that stimulates its consumer
to buy their products or avail its services by capturing their attention by making use of various
tools and techniques of sales promotion for reaping in them the need to have that product. Thus,
it helps company to attain its mission, vision and goals in the most effective manner earning
higher profits and sales volumes. Also, it strives to retain its existing and capture new potential
consumers by maintaining long term relationship with them.
Aldi being 5th biggest grocery retail chain is having 70 new stores in UK. Thus, to
maintain and enhance its position, it is essential to monitor and analyse the frequent changes
occurring in micro environment comprising customers taste and preferences, competitors
strategy, prevailing tends etc. so that it can adopt necessary modification in its present products,
process, technology or to introduce innovation in them (Babin and Zikmund, 2015). Thus,
it ,leads Aldi to earn higher sales volume, high returns and to enhance its customers loyalty

towards the brand. Mentioned below are some of the most prominent functions undertaken by
marketing unit of Aldi :
 Monitoring and managing social media: With this age of digitalization where internet
has become essential part of human life and is taken as a medium to carry out various
activities. As today consumers have shifted to e-mode for getting all their life essential
tasks done comprising making a purchase to paying out bills, from entertainment to get
knowledge of world electronic media with its social apps serves as a valuable option for
Aldi's marketing unit gaining knowledge about its customers preferences, rivals tactics,
market scenario and other information on which it keeps a close watch and thus plan out
its next strategy based on it (Baker and Saren, 2016).
 Market Research: Market research forms one of the important functions of a marketing
department as it helps the company to know about demands and aspirations of its target
audience. Market research is a basically a collection of data and information conducts by
every firm to know about potential opportunity, threats and various other customer and
market related information. Aldi collects information by conducting surveys, filling up
questionnaires from people etc. and then analyse this data to take important decisions
related to its products for formulating action plans for reducing probable future risks.
 Promotion: Promotion forms an essential part of Aldi's marketing strategy which enables
it to diversify its market share and to attract new consumers. Aldi being a leading brand
make use of both electronic media comprising TV,online promotion(through social media
such as, instagram, facebook ,twitter etc.) and print media including newspapers and
magazines ads etc. to reach its target customer group and communicate them about its
products, latest offers and schemes
 Pricing: Another essential function of marketing department if Aldi is to take important
decision related to its pricing policy. Aldi being a discounted supermarket chain strives to
capture market share by providing its customers groceries and other general merchandise
of good quality at affordable prices (Enache, 2011).
P2 Interrelation with various functional departments
A business is an amalgamation of various departments whose coordination among
themselves is of utmost importance a firm to achieve for meeting out is set objectives within
specific timeline and with efficiency and maximum outputs. Amongst all the departments of Aldi

its marketing departments is the one that plays the major role in publicizing about products and
services it offers and add value to them. In addition to this it is also accountable for monitoring
the whole process of delivery of goods and services to its end users. To gain efficiency in
successfully conducting these activities and attain overall objectives of a firm with higher
productivity, this department works in close coordination and in collaboration with other
departments of a Aldi in order to reap higher profits by producing goods and services of high
quality. Mentioned below is description of interconnection of marketing with other segments of
a firm:
Marketing function and Human Resource Department- Marketing department requires
proficient personnel having good communication and interpersonal skills so as to persuade
customers to make a purchase (Gordon, 2012). Also they are requires to have well versed
information related to company's products and services in order to assist consumers while
shopping and also to efficiently handle their queries by providing viable solutions. Thus, HR
department of Aldi assist marketing unit by ensuring right professional working at right job
profile available at right time when he is required Also is formulates various policies, programs
and strategies for training and developing them,to retain them and motivate them to give their
best efforts for achieving firms goals.
Marketing function and Finance Department- To carry out its market research and
other promotional activities marketing department requires sufficient funds. Thus finance
department of Aldi helps marketing division in selecting most cost effective tools and
techniques that could be adopted to reach out its target audience and provide it with necessary
funds to meet of expense of its promotional activities.
Marketing function and R&D department : As there is frequent change in market
scenario in just a blink of an eye due to variations occurring in customer's needs ad wants,
technology, competitions strategy etc. marking unit of Aldi works with close association with its
R&D division which assist in providing data and information related to complete micro
environment on the basis of which it takes decision related to planning, designing a new
innovative product or to make alteration in existing one (Hair, 2015).

Marketing and Customer service Department- To enhance customer satisfaction and to
increase its brand image marketing and customer care departments complements each other
works. Its is because marketing department through surveys questionnaire collects information
about the lacking customers feels in their services an d forward it to customer service
departments to take required actions (Huang and Sarigöllü, 2014). On the other hand customer
service unit provides marketing unit about the feedback of customers related to company's
products which could be analysed by them to introduce necessary modifications or to innovate a
new one.
TASK 2
Marketing mix (7Ps) Aldi
IMPORTANCE OF MARKETING
Aldi being a global leading discounted chain is constantly being exposed to a number of
micro environment factors which makes its critically important for it to continuously monitor
and adhere by the changes occurring in its market scenario so as to enhance its brand image and
gain edge over its rivals by been proactive in identifying threats and preparing necessary counter
strategies or plan to deal with them (Leonidou, Katsikeas and Morgan, 2013). Thus, importance
of marketing in context of Aldi's marketing division could be sum up in mentioned below points:
Communication: It forms the base of marketing as it is related to making customers
knowledgable about the various products and services that a firm offers and its related benefits
buy adding value to them. Also , in reference to firm marketing departments works in close
association with all other division so that effective and necessary decisions could be taken on
various business matters reacted to product design , process, technology being used, innovation
etc. which all will help in attaining long term growth an development. \
Relationship Building: To maintain its market share and to build trust and loyalty of
consumers towards its brand marketing unit of Aldi provides goods and services as per
customers specifications with high quality at affordable prices. Also with working in association
with customer care team it tries to resolve all queries and doubts of them which help company to
gain customer's satisfaction .

MARKETING MIX
Marketing mix can be described as the perfect amalgamation of 7P's of a marketing that
is been utilized by a firm to formulate most appropriate strategy to for its brand promotion which
is expected to reap large market share or increase in sales volumes and profits of a firm
(Terpstra, Foley and Sarathy, 2012). Thus , Aldi strives to provide right product,at right time, at
right place by using best suitable promotional strategy. Mentioned below is the comparison of
marketing mix of Aldi with its on of the leading market contender TESCO:
Basis ALDI TESCO
SOURCE: (Marketing Mix, 2017)

Product ALDI is known for providing
most a variety of products
ranging from fresh fruits,
vegetables,beauty products,
electronic appliances and other
general commodities at
affordable prices.
TESCO offers a wide range of
products ranging from food to
beverages, to home appliances,
car products and other
segmented products.
Price Aldi having strong customer
base provides quality products
at affordable prices to them. It
follows unit pricing strategy
wherein people can easily
compare its groceries prices
with other brands. Also it
pricing strategies is a
combination of market
penetration, psychological,
competitive and loss leader
pricing where in its products
price comes out be cheapest in
intelligent manner by not
round off the digits. For
instance $3.78 instead of $4
TESCO follows cost
leadership strategy to provide
lowest priced products with
high quality by utilizing
economies of scale through its
efficient supply channel for
reducing its prices. In addition,
it runs programs like Brand
Guarantee to provide lowest
price of any branded product at
TESCO.
Place Aldi being one of the top
brands across globe maintains
around 8000 stores in more
than 18 countries and opens
new store in every one week. It
store layout is quiet simple and
ensures that minimum waste is
It has around 6900 stores in
more than 12 nations where in
it maintains large hyper stores
offering wide range of
products under one roof
(Lovelock, 2011).

generated in them. It uses eco-
friendly equipments in its
stores. Apart from physical
stores, Aldi also offers online
shopping service to its
customers wherein they can
check products details and
could their nearest store.
Promotion Aldi having an advantage of
large market share spend
negligible amount on its brand
promotions. It adopts
electronic, print, display and
online mediums comprising
newspaper, emails, TV ads etc.
to communicate it special
offers and super saver schemes
to its consumers. Also it
utilizes various other
promotional techniques
comprising “swap and save”,
like brands. Only cheaper’ and
so on to enhance its target
audience trust in its brand.
TESCO having good brand
images also centred its
promotional strategies based
on it. It uses TV ads,
hoardings, charitable events et
for its brand promotions. It
also provides various offers
like buy one get one, discount
point system, etc. to induce its
customers to make a purchase.
It also promotes its goods
online.
People Aldi store layout assist it to
have less employee to be
presented at each level. Thus,
in certain sense it has lower
customer services. However
company gives immense
TESCO been leading brand
employees a team of more than
480,000 professionals who
efficiently handles its
operations across world.
TESCO runs various

importance e to its employees
who are been offered higher
salaries than its competitors,
and their comfort is also taken
in to consideration by the
company. For instance unlike
any other store employee at
billing counter are giving
proper sat sr5rngemnt that
enhances their speed to scan
products much faster leading
to reduction in customer
waiting time.
employees centric programs
wherein they are provided with
proper training to develop their
capabilities and to motivate
them to work in cooperation
and coordination.
Process Aldi has one of the smartest
and most convenient store
layout that comprises various
segments making its easy for
its customers to select a
particular product (Martin,
Campbell and Harmsen, 2014).
Also as Aldi keeps limited
stock of top brands it reduces
the selection time of
consumers Another peculiar
feature of Aldi's process is that
each of its products have a
large bar codes that assists in
quick identification and fast
billing.
TESCO assists its customers
by its speedy billing services.
Also it provides facility of
ordering products online to its
customers. It pays special
attention in redressing the
issues faced by its customers
to enhance their satisfaction.
Physical Evidence Aldi is the a leading TESCO is one of the largest

supermarket chain that is
known for its simple business
process, standardised products
and affordable products. It is
known for providing 30%
cheaper goods with every day
lower price strategy across the
world. Most prominent feature
of Aldi is that it maintains
same price level of its
groceries in all its stores in the
world.
retailing brand having around
69020v stores in 11 countries
in world serving wide range of
products from groceries to
clothes and from petrol to
software which gives a
complete shopping experience
under one roof. Also it
acquires around 28% market
share making it 5th largest firm
in terms of revenues
generation.
TASK 3
P4 Produce detailed marketing plan
Marketing plan is blueprint that describes all the business activities involved in attaining
specific marketing goals within a specific time frame. It also include present market position of
the company along with analysis of its potential target ,market and details related to its
marketing mix strategy to be adopted to gain competitive edge and generate higher profits
(Menegaki, 2012). It helps management to communicate roles and responsibilities to each
employee and to provide them necessary guidelines to be followed to efficiently complete their
assigned tasks . Mentioned below is the marketing plan of ALDI :
OVERVIEW OF ALDI
ALDI , the 5th largest brand is a combination of two discount supermarket chain with an
around 1000 stores in 20 countries across the world. It has a product line of 1350 products
comprising groceries, home appliances, stationary, beauty products etc. available at affordable
prices (Ormrod, 2014). It has a team of 149,000 employees and around 1000 supplies that makes
Aldi a streamlined process brand giving timely services leading to earning revenues of around
$6.5 billion every year. ]
Vision and Mission

VISION of ALDI: “ To provide highest quality of product to its potential buyers at an
affordable price or cost.”
MISSION STATEMENT of Aldi: “ To revolutionize food and grocery industry with a
strategic business model. “
SWOT ANALYSIS
STRENGTH
 Aldi is 5th leading brand having large
market share
 It provide large variety of products at
lowest prices than other company to its
customers.
 Having economies of scale in its
production,it has benefit of low
operating costs
 It has market penetration in an around
20 nations across the world
(Papasolomou and Melanthiou, 2012).
WEAKNESSES
 Brand is alleged to provide low quality
products due to customers perception of
cheap products been of inferior quality.
 It lacks in its sales promotions
 Does not have much influence in other
global nations.
 Its market share is still lower than
leading brands.
OPPORTUNITIES
 Aldi to make its global presence strong
and effective needs to invest more on
its promotional activities to keep on
with growing market competition .
 Require to capture potential market in
fast developing economies like Asia
and Africa
 Company plans to increase its stores
from 700 to 1000 by 2020 and to create
4000 jobs in UK under its
diversification strategy.
THREAT
 It has to face high level of competition
from worlds leading supermarket
chains like Woolworth, Walmart
 Challenges like growing trend of
isolationism and Brexit uncertainties
that posses challenges to retailer like
Aldi (Pomering, Noble and Johnson,
2011).
Marketing Budget

It is prepared by Aldi's marketing manager to estimate budget related with its various
promotional activities
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 40000 15000 13500 20000 18000
Investment 20000 15000 20000 15000
Total 40000 35000 28500 40000 33000
Marketing
expenditures
Advertisement 8000 7000 7500 6000 6500
Sales promotion 2000 3000 3000 3500 7500
Direct marketing 8000 7000 4000 8000 3000
Total 18000 17000 14000 17500 17000
Available balance 22000 18000 14500 22500 16000
Implementation, Monitoring and Controlling

is To maintain its lead and to diversify its market share it is essential for business to
continuously monitor effectiveness of its marketing strategies (Silberschatz, Galvin and Gagne,
2014). Also it has to access whether plans formulated by Aldi is effect plan is effective enough
to attain the objectives of ALDI within specified time frame or not. It not corrections are require
to measure and formulate actions that improve overall efficiency of marketing plan or activities.
CONCLUSION
The project undertaken conclude that marketing forms the backbone of every business to
attain long term growth and development. To capture the attention of its target customer and to
induce sales marketing department fulfil various roles and responsibilities that helps a firm like
Aldi to provide products and services as per requirement of its potential buyers. Marketing
departments of Aldi to enhance effectiveness of its decisions collaborates its efforts with various
other departments of a firm. A detailed comparison of marketing mix strategies of Aldi with its
leading rival TESCO is presented. Lastly , marketing plan for Aldi is formulated.

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