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Analyzing ALDI's Global Marketing Strategy

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Added on  2020/07/22

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This assignment involves a comprehensive analysis of supermarket giant ALDI's global marketing strategy. Students will examine ALDI's targeting strategies across its operations in over 18 countries with more than 18000 stores. The assignment requires evaluating ALDI's promotional activities such as print media and online marketing, along with their marketing strategy focused on providing quality products to meet customer needs. Moreover, students need to discuss the implementation of effective marketing plans and strategies, including evaluation processes for rectifying deviations or problems encountered during execution.

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Marketing Essentials

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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Roles and responsibilities of marketing function.............................................................1
P2. Roles and responsibilities of marketing relate to wider enterprise..................................3
M1: Roles and responsibilities of marketing..........................................................................5
M2: Importance of interrelationships between marketing and various function of enterprise5
D1: Analyse and evaluate the key factors of marketing function..........................................6
TASK 2............................................................................................................................................6
P3. Comparison of application of various elements marketing mix......................................6
M3: Evaluation of various tactics apply by enterprise...........................................................9
D2: Strategic marketing plan..................................................................................................9
TASK 3............................................................................................................................................9
P4 & M4 Marketing plan........................................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
.......................................................................................................................................................16
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INTRODUCTION
Marketing is an activity which is used to influence the interest and buying behaviour of
customers towards company's products and services through adopting various promotional
strategies. It is considered as an important tool which helps company in attracting new customers
and retain loyal customers. Through marketing the goods and services the company can be able
to communicate with their targeted customers and provide benefits to them by rendering quality
products and services as compared to what competitors are offering (Babin and Zikmund, 2015).
The main purpose of preparing this project report is to evaluate the roles and responsibilities of
marketing function which play an important role in achieving organisational set objectives. It is
essentially required for every company to formulate an effective marketing plan which helps in
achieving the success and growth of business and its products and services. Company named
“ALDI” which is a UK based firm that deals in offering grocery retail products is selected for the
purpose of preparing this report with reference to which various concepts associated with
marketing will be discussed.
TASK 1
P1. Roles and responsibilities of marketing function
Marketing refers to an important tool which is used to promote company's products and
services in order to attract large number of customers. The main objective of marketing is to
inform customers about company's product and services and its standard quality which helps in
enhancing the level of satisfaction of customers. If the company is successful in influencing
interest and buying behaviour of customers to purchase their product through adopting various
promotional strategies then it will help company to achieve growth and profitability for longer
period of time (Baker, 2014). Communicate through using promotional tools such as
newspapers, advertisement, magazines etc. enable the targeted customers to know about
characteristics of product. As ALDI company offers grocery products then it it essentially
required for them to inform customers about their product's quality along with their charging
prices through which customers able to decide whether they want to buy their products and
services or not. Therefore it is important for ALDI to have effective marketing management who
performs their roles and responsibilities in order to achieve organisational goals and objectives.
Such roles and responsibilities of marketing department of ALDI are explained as under:
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Product: Product is one which is offered to customers for satisfying their wants or needs
in an effective and efficient manner. Thus it is important for ALDI to offers quality product
which maximises the customer's satisfaction level (Batt, 2013). As there are many competitors
in market offering similar grocery product therefore in order to compete with them the company
needs to enhance the quality and features of their products as per the needs and demands of the
targeted customers which help them in getting large customers strength. For this the marketing
department has to make research which help them to know the taste and preferences of
customers and accordingly make changes in the features of their company's product.
Price: It refers to an amount of money which is charged by company from the customers
for their products. The price of products plays a crucial role in influencing the buying behaviour
of customers thus it is essential for ALDI to offers their products at an affordable prices to their
customers which help them in attracting large number of customers and attain competitive
advantage as well (SWOT Analysis, 2017). It is the responsibility of marketing department to first
identify the purchasing capability of customers and also analyse its competitors price of same
product and then accordingly fix the price of their product. This will help company in generating
huge profits as well as attain strong position in competitive market.
Selling: It is the process of transferring good to final customers without facing any
difficulties. The company needs to confirm that the customers should not faces any difficulties or
problems of purchasing their product and it can be only possible when they supply their product
to all nearby retail store on timely basis. The marketing department has to select appropriate
channel of distribution through which they can deliver company's product at right place at right
time.
Promotion: It is important activity which need to be performed by marketing department
with a motive of selling company's product to targeted customers (Chinn, 2017). The marketing
manager need to adopt various promotional tools which is effective in influencing the interest
and behaviour of customers towards company's product. As ALDI offers wide variety of
products in market thus it is essential for them to communicate its targeted customers about their
offering product. Through various promotional tools such as advertisement through newspapers,
pamphlets, TV ads etc. the customers may show their interest or willingness to purchase their
product. This will help company in attracting large number of customers and achieve competitive
advantage in competitive market world.
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Management Information system: It is important for company to carry out research
which help them to know about the taste and preferences of customers and thereafter makes
changes in products accordingly. For this the manager first need to analyse and store information
collected from research through using management software tools such as management
information system which direct them in formulating effective decision regarding development
of products. This will help company in fulfil customers desired needs and requirement which
maximises their level of satisfaction as well.
Financing: It is important for ALDI to have adequate financial resources in order to meet
the needs and requirements of targeted customers by supplying products to them at right time at
right place. The manager need to ensure about availability of funds which help them in
eliminating problems occurred during business operations (Desai, 2013). The needs and demands
of products may rises or falls in future therefore the company should ready to face such
situations by keeping adequate financial resources with them.
Distribution: It is the process of distributing company's products to targeted customers
without an delays. It is essentially required for company to motivate their suppliers to supply
company's products at right place at right time which help them in meeting needs and demands
of customers. ALDI need to first analyse channel of distribution and ensure about the delivery of
products to customers. If any delay happened in supplying company's products to final customers
then it will make bad impact on the company's image and goodwill through which they may lose
their loyal customers as well.
These all are the main roles and responsibilities of marketing management which need to
be perform in order to fulfil customer's needs and requirements through providing quality
products at an affordable price. Improving satisfaction level of customers through their quality
products and services enable company achieve profitability and sustainability for longer period
of time (The Marketing Mix 4P’s and 7P’s Explained, 2017). Thus the marketing manager of
ALDI need to carefully analyse competitors strategies and accordingly implement effective
marketing plan which help them in achieving desired goals and objectives.
P2. Roles and responsibilities of marketing relate to wider enterprise
There are huge competition in market world which brings difficulties for company to
influence and attract large number of customers and sustain in market for longer period of time.
Marketing plays an important role for company in achieving growth and profitability of company
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thus it is essentially required for making department to perform their effective roles and
responsibilities in order to achieve desired goals and objective of an organisation (Durand and
Barlow, 2012). They need to make effective marketing plan which help company to expand their
business operations at large. The roles and responsibilities of marketing department are
interrelated with each other which is discussed in brief as under:
Marketing function with operation department: Operation department is related with
manufacturing process of company. As the marketing manager is responsible to inform
customers about company's product and its features in such a way that will influence the interest
and behaviour of customers easily. But if market manager do not have any knowledge regarding
unique features or characteristics of products then he may face difficulties to present company's
products in front of the customers (Marketing Mix, 2017). Therefore it is essential for the
marketing manager to communicate and coordinate with operation department which help them
in understanding the benefits and features of products. Through acquiring information about
product the marketing manager able to convince the customers to purchase their company's
products and services.
Finance department with marketing function: The company need to have adequate
financial resource which allow marketing department to promote company's products all over the
world. The marketing manager can successfully adopting and implementing various promotional
strategies only when the company have sufficient financial resources. Therefore it is required to
utilize available financial resources at an optimum manner which help them in executing
business operation and marketing plan without facing any difficulties and problems. Thus
coordination and contribution of both finance and marketing department help company in
achieving their desired goals and objectives.
Sales and marketing function: They both are interrelated with each other. If the
marketing managers is successful in attracting large number of customer through implementing
various marketing plans then it will direct increase sales of company. This will also help in
generating revenue as well as achieve future growth of company.
Research and development department and marketing function: As there are many
competitors in market which provides tough competition to each other in terms of providing
quality product to customers (Forrester, 2010). Therefore it is necessarily required for ALDI to
carry out research and find out the taste and preferences of customers which changes frequently
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and thereafter using information collected from research provide an opportunity to fulfil the
needs and demands of targeted customers in an effective and efficient manner. The company
should focus on implementing some changes in their product as per the needs and demands of
customers which help them in attaining large number of customers.
Marketing department with human resource management function: Employee is
considered as the lifeline for company therefore it is essentially required for marketing
department to promote company's product that will enhance the interest and behaviour of
customers. The marketing department should avoid to promote those products which harms the
health of the customers. This will help in maintaining healthy relation ship with customers and
improve trust and loyalty of customers towards company and their products.
IT Department and marketing function: With the help of using efficient and advanced
technology the marketing manager able to reach to their targeted customers for the purpose of
marketing their company's product. ALDI can achieve expected sales only when they focus on
implementing changes in exiting technology and adopt advanced technology which enable them
to reach to their targeted customer and thus able to influence their interest and behaviour in
favour of purchasing company's product (Gummesson, 2011).
M1: Roles and responsibilities of marketing
Marketing play an essential role in influencing interest and behaviour of customers
towards purchasing company's product. This will help company in retaining loyal customers and
increase sales of company. The main roles and responsibilities of marketing department in ALDI
are related with product, selling, MIS, financing and promotion and need to be performed in such
a way that will bring positive output for company.
M2: Importance of interrelationships between marketing and various function of enterprise
Marketing and various function are interrelated with each other. For example the
manufacturing department can achieve success only when their manufactured products are
effectively promoted in the market in such an attractive manner that will easily influence the
customers to purchase their company's product. Similarly without using financial resource
marketing manager cannot adopt effective promotional strategies (Functions of marketing,
2017). Therefore the marketing department are much depended on the activities of various
department.
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D1: Analyse and evaluate the key factors of marketing function
Financing, Human resource management, operations and production department are some
key factors which contribute maximum in achieving growth and success of an organisation.
TASK 2
P3. Comparison of application of various elements marketing mix
Marketing mix refers to a concept under which different components are included like for
an instance product, price, place, promotion, process, people and also physical evidence. These
all components of marketing mix are used through the managers of ALDI business firm in order
to accomplish their aims and goals in an effective manner (Jones and Rowley2011). It is
necessary that for attracting large number of customers, ALDI company use this in an effective
manner. The different business organisations use same marketing mix components in the various
methods because their objectives are different from each other. There is a comparison among
marketing mix of ALDI business firm and also LIDL. Marketing mix involves 7Ps which are
applied in order to achieve their desired gaols and objectives. The marketing manager need to
adopt various promotional strategies in order to promote their manufactured goods to the
targeted customers. They need to first analyse the interest and behaviour of customers through
making research and accordingly implement effective marketing plan and strategy which help
them in building brand image and goodwill of company in consumer's mind. Therefore it is
important for company to apply seven(7) elements in order to attract large number of customers.
7P's of Marketing:
Product: It refers to the goods and services which are offered by company for their
targeted customers. It can be either tangible or intangible goods.
Price: It refers to amount which is charged by company from the customers on the
purchase of their product. Price factor make huge impact on the profitability of company and
therefore company need to set effective pricing strategy that will easily influence the buying
behaviour of customers towards purchase their product (KAUR, 2015).
Place: It refers to the location where the company's goods are available to the targeted
customers. It can help customers to find the product at nearby store without facing any
difficulties.
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Promotion: It refers to adverting the product through adopting various marketing tools in
the market which help customers to know about the features and benefits of products offered by
particular company.
People: It refers to the human resource which contribute their maximum efforts in
achieving growth and success of the company. They involve in the the process that starts with
manufacturing and ends with sale of products to targeted customers and selling the product to the
final targeted customers
Process: It refers to an activity which is performed to provide offered goods at market
place. This will help customers to get company's product easily without facing any problems
(Mitchell, 2012).
Physical evidence: It is the evidence which company make presence in the market. For
example through identifying logo, signs etc. enable customers to know about the company and
its products.
Comparison of marketing tools mix of ALDI and LIDL:
Basis ALDI LIDL
Product ALDI provides quality
products to its customers at an
affordable price. The company
ordered raw materials in large
quantity from the supplier
which help them in meeting
the needs and demand of
customers.
LIDL also offers same
products at cheapest price but
the only disadvantage is that
the Customers are pre assumed
that low price products carry
low quality due to which they
show less interest in
purchasing their product.
Price ALDI business organisation
has strong base because the
cost and quality of its products
as well as services are not
much high as comparison to its
competitors.
As the LIDL follows pricing
strategy in which they charge
less prices for their products
but due to charging less price
the customers believe that they
offers poor quality product
which creates negative impact
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on the sales of the company.
Place ALDI offered goods through
8000 stores situated in 18
countries. They have target to
reach to maximum number of
people across worldwide
which help them in creating
brand image and goodwill of
company.
LIDL has offered their
products by opening large
number of stores in different
countries such as Europe and
UK. Their stores are having
abundant level of stock which
help them in meeting needs
and requirement of customers
as quick as possible.
Promotion As ALDI offers brand
products to its customers
therefore they spend less
amount on promotional
activities as the customers are
rely on the company's name
and its products quality. They
promote goods only through
printing ads on newspapers
and newsletter.
LIDL follows pricing model
which help them in attaining
large customers strengths. But
they cannot offer discount on
their product due to large
number of retailers offering
similar products in the market.
People As ALDI store is big in size in
which they provides different
section of different goods
which help customer to select
goods they want to purchase
without influencing by
employees of ALDI.
LIDI need to implement
training programs to their staff
members so that they feel
motivated and fulfil customer's
neds in an effective and
efficient manner.
Process As there are difference
sections are made for different
products which allows
As customers think that less
price product carry low quality
through which they prefer
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customer to choose the product
on their own. Therefore
employees takes less
participation in influencing
interest of customers as
company is well known for
providing quality products.
other known brand product.
Therefore its staff members
need to take steps in order to
influence the interest of
customers to rely on their
company's product.
Physical evidence ALDI is a popular brand in
UK which can easily attract
large number of customers
through their company's logo.
They also charges same price
on their groceries product
through out world which
retains loyal customers.
The company uses different
colours which help the
customers to access their store
located at nearby places. This
will help them in attracting
large number of customers.
M3: Evaluation of various tactics apply by enterprise
In order to attain loyal customers the company need to use effective tactic such as using
good quality of raw material in manufacturing final product. ALDI should also focus on
conducting training programs to their employees which help them in communicating to its
targeted customers in an effective and efficient manner. This will improve the image and
goodwill of company in consumer's mind.
D2: Strategic marketing plan
ALDI need to make effective marketing plan which help in influencing interest and
behaviour of customers ton purchase their product. After analysing the taste and preferences of
customers the marketing manager need to adopt effective marketing strategies that will help
them in attracting large number of customers (Ogunmokun and Tang, 2012).
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TASK 3
P4 & M4 Marketing plan
Marketing plan is necessarily required to prepare by manager in order achieve desired
goals and objectives. Through effective marketing plan the company can able to direct its
marketing manager to execute marketing activities with the available resources in an effective
manner that will bring maximum positive result. There are various aspects which need to be
consider by manager while preparing effective marketing plan. Such aspects are as follows:
Vision:
The main objective of ALDI company is to provide quality products and services to the
targeted customers at an affordable prices which maximises the level of satisfaction of customers
as well.
Mission of ALDI:
The mission of the company is top maximise the level of satisfaction to their targeted
customers through offering quality products (Papasolomou and Melanthiou, 2012).
It is important for manager to do SWOT Analyse through which they get to know about their
accurate position in market.
SWOT Analyse
Illustration1. SWOT Analysis, 2017
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Strengths: ALDI offers quality and featured product to its customers at an affordable
price which maximises their level of satisfaction, it will help company in achieving growth and
profitability of company. Firm operated its business in different countries through which they
can attain large number of customers. ALDI has over 8000 stores across worldwide through
which their customers easily get their products without facing any difficulties.
Weaknesses: As ALDI charging low prices on their products due to which their global
present is not much effective. Customers has also wrong perceptions that low price products
contains low quality which makes negative impact on the sales of the company. Therefore it is
the responsibility of manager to communicate with customer regarding the quality of products so
that the customers show their interest or willingness to purchase their company's product.
Opportunities: ALDI need to focus on expanding their business in developing countries
in order to attain brand image and goodwill (Perreault, 2010). Asia and Africa are some
examples of developing countries on which ALID need to focus on in order to expand their
business. Firm also need to prepare marketing budget in order to promote their products across
worldwide.
Threats: As there are facing huge competitions from their various competitors such as
LIDL, Wait rose etc. through which the company faces difficulties in attracting large number of
customers. Changes in taste preferences of customers and government policies may also affect
the profitability and sustainability of company.
Goals and objectives of enterprise
The main objective of company is to provide quality products at an affordable price through
which large number of customers can easily attract towards their product. In order to achieve this
the manager need to put their maximum efforts in manufacturing effective and standard products
which helps in maximising the level of satisfaction of customers. The company should also focus
on identifying the customer's taste and preferences and accordingly implement some changes in
their product that fulfil the needs and requirements of targeted customers.
Segmentation, Targeting and Positioning:
Segmentation: It is related with dividing the customers into groups on the basis of their
needs and requirements through which company able to fulfil their requirements in an effective
and efficient manner.
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Targeting: It is related with targeting particular groups of customers in order to fulfil
their requirements by providing quality goods at an affordable price (Purvis, 2016).
Positioning: It is related with company's existence in market world. By offering quality
products at low price the company successfully achieve brand image and goodwill through out
the world.
Marketing mix of ALDI
Product: It refers to an item which the company engaged in producing. ALDI offers
groceries product carrying good quality to tie customers at an affordable price which can easily
attract large number of customers.
Price: As ALDI purchase raw material from supplies in bulk quantity in order to get
discount which will help them in providing their product at low cost to its targeted customers.
Place: It means the locations where the company are operated its business. ALDI has
operate its business in more than 18 countries and has over 18000 stores with help of which they
can provide its quality product to large number of customers (Rudden, 2016).
Promotion: It refers to an promotional activities which need to be adopted by company to
attract large number of customers. ALDI follow various promotional strategies such as print
media, online marketing etc. which help them to communicate with targeted customers about
their product.
Marketing strategy: It is important for company to implement effective marketing strategy
which will bring maximum positive result. ALDI need to provide quality products in order to
fulfil the needs and requirements of customers which help them in maintaining healthy relations
with customers.
Implementation: Implementation of effective marketing plan is essentially required by
company in order to achieve desired goals and objectives and it can be possible only when
company have adequate financial resources otherwise the company may faces difficulties in
implementing marketing plan successfully (Rhoads and Whitlark, 2014.).
Evaluation: The manager need to proper analyse the marketing strategy which help them
in identifying the deviation and problems occurred during execution of marketing plan. ALDIO
need to put their efforts in order to rectify such deviation through which they get positive and
effective result.
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CONCLUSION
It has been concluded as per the above report that marketing is an essential part of an
organisation in order to achieve desired goals and objectives. Effective marketing plan and
strategy enable company to improve sales and productivity of company. Through effective
marketing strategy the company can able to influence the interest and buying behaviour of
customers toward purchasing their product. Communication and coordination of marketing
department with various functions of management also play an effective role in achieving
predetermined targets in an effective and efficient manner.
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REFERENCES
Books and Journals
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Online
Functions of marketing. 2017. [Online]. Available through:
<http://smallbusiness.chron.com/functions-marketing-business-32399.html>.
Marketing Mix. 2017. [Online]. Available through:
<http://www.marketingteacher.com/marketing-mix/>.
The Marketing Mix 4P’s and 7P’s Explained. 2017. [Online]. Available through:
<http://marketingmix.co.uk/>.
SWOT Analysis. 2017. [Online]. Available through: <https://journal.thriveglobal.com/how-to-
complete-a-personal-swot-analysis-2f8769aebd5e>.
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