Marketing Essentials Contents

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MARKETING ESSENTIALS Contents INTRODUCTION 1L TASK 11 Background information of organisation 1 Explanation of 4Ps and importance of extending marketing mix to 7Ps 1 Comparison of companies implementing marketing mix to achieve business objectives 2 TASK 26 Produce and evaluate a basic marketing plan in organisational context 6 CONCLUSION 9 REFERENCES 10 INTRODUCTION Marketing is referred to those activities and procedures which are performed by a company to advertise about their services or products in marketplace. Company is a renowned food retailer but

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MARKETING
ESSENTIALS

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Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Background information of organisation................................................................................1
Explanation of 4Ps and importance of extending marketing mix to 7Ps...............................1
Comparison of companies implementing marketing mix to achieve business objectives.....2
TASK 2............................................................................................................................................6
Produce and evaluate a basic marketing plan in organisational context................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Marketing is referred to those activities and procedures which are performed by a
company to advertise about their services or products in marketplace. It includes varying aspects
such as distribution, selling, advertisements, promotion so that sales can be enhanced and
company will achieve high revenues. Marketing include all those tactics which are needed by an
organisation to gain the attention of customers in a proper manner (Bačík, Štefko and Gburová,
2014). This assignment is based on ALDI which is a discounted supermarket chain,
headquartered in Essen and Mulhein, Germany. At present, company is successfully operating
more than 10,000 stores in around 20 nations. This report is going to cover the ways in which
organisation applies marketing mix to achieve their business objectives. Beside this, a marketing
plan is produced so that company can achieve their organisational goals in a desired manner.
TASK 1
Background information of organisation
ALDI is a Germany based supermarket company which operates in most parts of
European union. Beside this, company has a strong presence in US and Australia. Company was
founded in 1946 and co-headquartered at Essen and Mulheim, Germany. At present, organisation
have more than 4000 stores in Germany only and around 7600 stores in global context. Company
is a renowned food retailer but also sold other products which are not related with food..
Explanation of 4Ps and importance of extending marketing mix to 7Ps
Marketing mix is defined as a set of actions or tactics which are used by an organisation
to promote and sell their products in marketplace. 4Ps associated with marketing mix are price,
promotion, place and promotion.
Price: It is defined as a value that is put for a specific product. It is highly dependent on
the segment targeted, production cost, paying ability of market, demand-supply and some other
factors.
Product: It is referred to the item that company wants to sold to their customers. If a
product is not able to deliver good performance, other elements of marketing mix will not able to
achieve organisational objectives. Product which are offered by ALDI are food items, beverages,
sanitary and household products (Blythe and Martin, 2019).
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Place: It is defined as the point of sale. In each industry, main aim of place strategy is to
open outlets at those locations whether attention of maximum number of customers can be
grabbed. This will benefit the company in maximising their sales.
Promotion: This include all those activities by which a customer get acknowledged
about the services or products which are offered by an organisation.
All these elements of marketing mix influence each other so that business organisation
can achieve desired success. But there are some other elements which plays a vital role in
completing organisational goals and objectives in a proper manner. These elements are the part
of extended market mix. Without these elements, it will be difficult for ALDI to attain expected
outcomes.
Significance of extended market mix
Extended market mix is defined as the addition of three more elements in the existing
market mix. These elements are people, process and physical evidence. With the help of these
elements, it became easier for business organisations to achieve their goals and targets. In
context with ALDI, these aspects are discussed below:
People: These are those individuals which interact and communicate with the customers
so that product can be advertised, promoted and distributed in a proper manner. Beside
this, those individuals which manage supply chain, finance and other departments are
people in context with marketing mix of ALDI (Brassington, and Pettitt, 2013).
Process: It is the processes or system through which a product is delivered to the
customers. In context with retail organisations, they can either have an online or offline
delivery process.
Physical evidence: These are the elements of physical environment which are
experienced by the customers. For example, outlets, office or website of company are the
physical evidences.
Comparison of companies implementing marketing mix to achieve business objectives
Basis ALDI LIDL
Product ALDI offers affordable food and non-
food products to their customers which
Company is a supermarket chains for
the discounted products and positions
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are branded or have high quality.
Products which are offered at ALDI
stores are sourced from good suppliers
due to which satisfaction of customers
after using them is always high. Beside,
beverages and food products, company
also offers vegetables, fresh fruit, beauty
products, electronic and household
goods, soft tools, clothes etc. in terms of
food products, offering are same but for
non-food products company keep
experimenting and modify product line
as per the needs of customers. Beside
this, product line of ALDI includes
wine, ALDI mobile and ALDI talk,
Diskont-In, baby products etc.
itself as a budget shop for people from
all financial backgrounds. Company has
both in house and other brand products.
Main products offered by organisation
are vegetables, fruits, frozen items,
processed food, baby products, health
related items, cleaning and household
products, seasonal plants, flowers etc.
Product strategy of Lidl includes
providing regular world food themes.
This allow customers to enjoy wide
variety of products form globe.
price Due to low price and availability of
products at cheap rates, ALDI possess a
strong customer base. Products that are
sold under ALDI brand are priced
reasonable and there are different
policies which are used by ALDI in
context with pricing their products.
Company uses a unit pricing strategy for
groceries in which customers can easily
compare the products. For new products,
company uses market penetration
strategy in which products are priced
very low so that market shares for that
product can rise very quickly (Fırat,
As a discounter company, main focus
of company is on penetration pricing
strategy. This strategy includes
charging less amount for products and
hence selling more. For example,
basket of 20 item at Lidl stores is 9%
cheaper than the products available at
other stores. With the help of private
label products, LIDL reduce the
expenses of middle man which helps
them in cost saving. This is the reason
company is able to sell its services or
products for high profit margins. In
cases of high competition, company
adopts a competitive pricing strategy in
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2013). which prices of products are set
according to the prices charged by
rivals.
Place At present ALDI has more than 10000
stores in around 20 countries and in UK,
company opens a new store every
month. Layout of ALDI stores are very
simple and company collect all products
from suppliers in bulk amount so that
products needed by customers must be
available every time. Company tries to
maintain a regional appearance due to
which outlets of ALDI are named
according to the region in which
company is operating. Main countries in
which ALDI operates are US, UK,
Spain, Switzerland, Poland, Portugal,
Netherlands, China, Australia and other
European countries.
Company is a globalised brand which
has successfully represented itself at
worldwide. Company has two
headquarters, one is at Germany and
other in Virginia, US. Main outlets of
company are available in regions such
as France, Germany, Denmark, Italy,
UK, Austria, US and some other
European nations. Company has a well
maintained distribution channel. To
provide fastest access of products,
company have outlets close to their
warehouses and national distribution
centres.
Promotion Company have comprehensive
promotional strategies. As company
claim to follow cost saving processes,
ALDI invest less in advertising and
promotional tactics. In Germany,
company do not possess a marketing
department. In case of nations like US,
UK or Australia. Company use display,
print and electronic media to advertise
their stores. Beside this, company use E-
mail services to acknowledge their
In context with UK, at present
organisation do not possess any loyalty
scheme as they feel that their low prices
for standardised products are enough to
grab the attention of customers in a
proper manner. Company usually have
store promotions but as their products
are already low prices. They do not
provide further discounts. Promotional
tactics used by LIDL are print and
social media advertisement such as
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customers about new offers, products
and discounts. In this context, ALDI
uses both above the line and below the
line promotional strategy to increase
their sales and revenues.
newspaper, pamphlets, Facebook, TV,
radio etc (Khan and Adil, 2013).
Process Due to sheer layout of products offered
by company, it is easier for customers to
identify them even without any
assistance. This is the reason; company
needs few employees in their outlets to
assist customer base. Due to this,
selection time of products for customer
reduces and sales of company increase.
Products of company has large barcodes
so that they can identified quickly and
for fast billing company uses conveyor
belts. Also, company has an online
process to sell their products.
It includes employee discretion,
mechanisation, customer involvement,
policies, procedures etc. Main process
of company is to buy and sell maximum
products on low costs. Beside this,
company do not involve their customers
in procedure or processes of ALDI and
maintain their online and offline
process as per their conveniences.
Company prefer to have limited number
of products from high brands so that
customers can buy reasonable price
brands in more and more quantity.
People Company have less customer service
then its rival companies. This is because
workforce in ALDI stores do not assists
customers in selection of products.
Reason behind this is that products of
ALDI are properly divided into sections
due to which customers identify the
needed products in fractions of seconds.
Also, employees in ALDI are paid high
then other supermarket stores and
regular training is given to workers so
that they can work effectively.
Employees in ALDI are given attractive
salaries but they have to work very
hard. Quantity of items which are
scanned by an individual employees
decided their performance and
contribution to organisational success.
Beside this, workers of company are
given high training so that needs of
customers can be met in a timely
manner. At billing counters, workers of
company are seated unlike other stores,
due to which they quickly scan the
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products.
Physical
evidence
Company is popular at global context
for their simple business processes,
global pricing and standardised
products. More than 80% stocks of
company have item from home brand
and remaining stocks are from other
popular brands. Main physical evidence
in context with ALDI are their outlets,
stores, products from home brand and
official website (Mihart, 2012).
Stores of LIDL are designed and
themed in a very traditional or linear
manner. Due to this customers feel
comfortable while finding the products.
Brand colour of products offered by
company are blue and yellow. Due to
this, people easily identify their
products. Other physical evidence are
mobile app and online website of
company. Stores, warehouses and
outlets of company are also their
physical evidences.
Company can open more stores in distinct locations so that their customer base can increase
considerably. Beside this, company can use bundle pricing strategy in which products are given
in bundle so that they will be charged less as compared to individual products. By this, sales in
ALDI will increase considerably. Beside this, to gain advantage over rivals, company can use
psychological pricing in which a minor difference in the rate of products can grab the attention of
customers in a considerable manner. Also, giving regular training to employees will benefits
company in catering the changing needs of customers in a timely manner. All these aspects will
benefit ALDI in achieving their business objectives.
TASK 2
Produce and evaluate a basic marketing plan in organisational context
Marketing plan is a document which include important plan, strategies and tactics that can
be applied by company to achieve desired results. In context with ALDI, this plan is mentioned
below:
Overview of company: Company is a discounted supermarket chain based in Germany and has
a strong reputation in market for selling quality products in low prices. Main products which are
offered by ALDI are household essentials, sanitary products, beverages and food items. Due to
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their standardised services, company is sustaining a strong presence in global context and gains
competitive advantage over rival companies in a desired manner. Now company is planning to
introduce flavoured Lassi to grab more attention of customers (Muralidharan and Raval, 2017).
SMART objectives:
Specific: Company is focusing to raise the profit margin by 20% and market share of
company by 15% by offering branded products at low price.
Measurable: company measure their current performance by comparing it with last year
performance.
Assignable: Employees work under the leadership of leader so that assignable tasks can be
accomplished desirably.
Realistic: Manager is focusing on market share, sales ratio and profits so that firm can
achieve a strong position in marketplace.
Timely bound: to achieve targets, manager has estimated the time period of 6 months.
SWOT Analysis on New product:
Strength: Due to different flavours, products is going to be liked by most of the people
and it will increase sales of company in a considerable way.
Weakness: Demand for flavoured Lassi in cold seasons will be less.
Opportunities: Offering complementary products with flavoured Lassi will rise the sales
of ALDI products considerably.
Threat: competitors like Lidl are also offering wide product range in genuine prices.
STP: It is referred to the tactics in which a new product is sold in market after segmenting,
positioning and targeting it so that right customers can be reached without facing difficulties.
Segmentation: Company can segment its product either as demographic, psychographic,
behavioural or geographic segmentation. As Lassi is not a premium product and can be
purchased by every people, ALDI will segment on the basis of demographics so that
maximum people can buy their products.
Targeting: Company is going to target mainly teenagers and young people for their newly
launched flavoured Lassi.
Position: Company wants to position itself in a high place and introducing flavoured Lassi to
gain advantage over rival companies (Ogunmokun, and Hsin Tang, 2012)
(Pappas, 2017).
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Action plan
Product: Company is going to introduce a new product i.e. flavoured Lassi at their
outlets.
Place: Every outlet of company will have product available.
Price: ALDI can adopt different pricing strategies for flavoured Lassi like bundle
pricing, skimming pricing so that attention of customers can be grabbed in a desired
manner. This element will help in differentiating the products from one another
Promotion: It includes incentives, advertising, press reports, Direct marketing, contests
etc. so that Flavoured Lassi can achieve high sales.
Forecast
Cost: Cost for the production of new product is discussed below:
Particulars Amount ()
Marketing 100000
Workforce 100000
Equipments 150000
Raw materials 150000
Sales: Manager expects double digit sales for new product.
Profit: 20% profit increment is expected by ALDI in the market place.
Market share: Company expects 15% hike in market shares due to flavoured Lassi.
Control: Key performance indicator is used by ALD to check all the activities of the
organization. Here, company will measure difference in past and present performance so that
growth can be acknowledged.
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CONCLUSION
From above mentioned report, it can be concluded that marketing mix helps a business firm
in acknowledging their position and performance in marketplace so that an appropriate market
plan can develop which will benefits the organisation in attainment of their expected targets and
objectives in a timely manner.
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REFERENCES
Books and Journals
Bačík, R., Štefko, R. and Gburová, J., 2014. Marketing pricing strategy as part of competitive
Blythe, J. and Martin, J., 2019. Essentials of marketing. Pearson UK.
Brassington, F. and Pettitt, S., 2013. Essential of marketing.
Fırat, A. F., 2013. Marketing: culture institutionalized. Journal of Macromarketing. 33(1). pp.78-
82
Khan, M. N. and Adil, M., 2013. Data analysis techniques in service quality literature: Essentials
and advances. Serbian Journal of Management. 8(1). pp.95-112.
Mihart, C., 2012. Impact of integrated marketing communication on consumer behaviour:
Effects on consumer decision-making process. International Journal of Marketing
Studies. 4(2). p.121.
Muralidharan, K. and Raval, N., 2017. Six Sigma marketing and productivity improvement. A
Quarterly Journal of the National Productivity Council. 58(1). pp.107-114.
Ogunmokun, G. and Hsin Tang, E.C., 2012. The effect of strategic marketing planning
behaviour on the performance of small-to medium-sized firms. International Journal of
Management. 29(1). p.159.
Pappas, N., 2017. Effect of marketing activities, benefits, risks, confusion due to over-choice,
price, quality and consumer trust on online tourism purchasing. Journal of Marketing
Communications. 23(2). pp.195-218.
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