ALDI Marketing Strategies and Plan

The assignment delves into the marketing strategies employed by ALDI, a successful discount grocery chain. It examines each element of the marketing mix - product, price, place, and promotion - highlighting how ALDI leverages these factors to achieve its business objectives. A key focus is on ALDI's implementation of relationship marketing to build customer loyalty and foster long-term relationships. The analysis also covers the importance of effective implementation and evaluation in achieving marketing success.

Marketing Essentials

Table of Contents

INTRODUCTION
Marketing is an effective process in which manager of an organisation uses various tools
to increase customer’s awareness towards the products and services. By using this concept,
company easily increases their profitability level in the market place (Babin and Zikmund,
2015). Mainly, marketing is an effective action by which firms promote their products and
services to influence their customers. It includes selling, advertising and many more aspects
which help in increasing the profitability of company in market place. Along with this, marketing
department of business organization also plays an important role in satisfying customer’s
demand by providing them quality services. Basically, it is a broad concept for determining
needs and demands of market and also helps in promoting the services in front of customers.
Current report discussed about ALDI, which is the biggest grocery company in UK. They
operate their outlets in various countries to increase their customer base. In this, various roles
and responsibilities of marketing department are also mentioned. Along with that, various key
elements of marketing mix are discussed in this project which leads to attain the end goals and
objectives. Further, marketing plan of ALDI is mentioned in this assignment.
TASK 1
P1 Key responsibilities and roles of marketing function
Marketing is an important concept for every business organization for enhancing their
productivity level by promoting its goods and services in market place. Main aim of marketing is
to create customers’ needs and demands towards the company’s products and services which
leads to attain higher profitability level in an effective manner. Along with this, various
promotional and communication tools are also used by company such as newspaper, magazines,
advertisement and many more. By this, ALDI easily communicates with their customers and
provide them relevant information about products and services. Along with this, it is very
important for the business organization to effectively execute their roles and responsibilities of
marketing department to enhance their performance level (Baker, 2014). All these are as follows: Product: It is important for business organization because it is the final offering to
customers in order to satisfy their needs and demands. For attaining better results and
higher satisfaction of customers, it is important for ALDI to offer quality and features
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products and services as per their needs and wants. For attaining the same, marketing
manager undertakes an effective research to determine customer’s demand which may
lead to attain the set goals and objectives in an effective time frame. With the help of this,
company produces attractive products which contribute in organization’s success in
market place. Price: It is also important element, which known by monetary amount and charger by
company form their customers towards its products and services. So that it is important
duty for manager of the company to set right price of the final products because it
directly affect the overall success of the firm in market place. Basically, it comes under
manager’s responsibilities to set effective as well as affordable price to its products in
order to increase their profitability level in the most effective manner (Batt, 2013). Selling: It is also an important process in which products hand over to the final
customers. For influencing the customer’s demand towards the company’s products, it is
also essentials to make this process is more convenient so that they easily provide their
quality services to its customers. In this, marketing manager of company is responsible to
select an effective distribution channel so that they effectively deliver their products and
services near entire stores of customers. With the help of this, company attains better
results. Promotion: It is also an important activity of marketing department in which manager
uses various tools to communicate with their customers in order to enhance awareness
towards company’s products and services. With the help of this, company effectively
enhances their market share and also compete with their competitors in market. Along
with this, by using effective communication tools, ALDI invites a large number of
customers and also, increases their profitability level. MIS (Management information system): It is a process of information by which
company manages relevant information towards the customers and market (Chinn, 2017).
Along with this, manager of marketing department undertakes various researches to
gather as well as collect relevant information towards the market trends and customer’s
preferences. For attaining better results, manager uses various technologies to store data
which helps in taking future decisions towards company and its activities.
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 Financing: Proper fund is more important for the business organization because it helps
in executing operational activities of company. By sufficient fund, ALDI easily operates
their production process and produce feature products to their customers. Lack of
financial instrument form face various issues which negatively affect the overall
performance of the company (Desai, 2013). So that it is important duty of marketing
manager to keep enough financial resources to implement their activities which leads in
attaining end goals and objectives in appropriate time frame.
 Distribution: It is necessary for company in which company delivers their quality
products and services near the customers so that they will easily buy services in order to
satisfy their needs. By using effective distribution channels, ALDI easily delivers their
products at affordable cost which leads to attain better outcomes from its target
customers. With the help of this, ALDI attains competitive advantages from its rivals.
All these are important roles of marketing department of company. By this, ALDI
effectively executes all activities in order to satisfy customers’ needs and wants by delivering
quality services. For attaining better success, it is an important duty of marketing manager to
understand the importance of business activities to implement effective strategies in order to
invite a large number of customers. By this, company easily captures a large market share from
its rivals.
P2 Roles and responsibilities of marketing related to the organizational context
In today's, market various business organization who serve variety of products and
services to its customers at affordable cost, so that it is very difficult for company to invite larger
number of customers towards its products and services. In this market play vital role by which
company expand their business activities by taking better decision in effective manner (Diana,
2017). Along with this, company also offer quality services to its customers as compare to its
competitors in order to get strong place at market place. In this context, there are some roles and
responsibilities of marketing department which are interrelate with other organizational function.
These can be understood by some points are as follows: Marketing function with operation department: It is very important for business
organization because operation function is relate with production process in which
company produce quality products and services to its customers. With the help of this
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firm attain competitive advantage in effective manner and also enhance their performance
level at market place. For attaining positive outcomes, it is important for company to
maintain better coordination between operation department and marketing. Along with
this, as a marketing manager, have various information about products features in order
to invite number of customers. Thus, production process of the company can be execute
according to the customers demands. Finance department with marketing function: Financial resources is one of the
important component for business to execute entire operational activities (Durand and
Barlow, 2012). For attaining better results it is important for marketing department of the
company to execute their activities way in which manager should have keep adequate
financial funds. With the help of this manager of the financial department execute as well
as formulate an effective budget and also allocate proper funds to another department to
attain positive outcomes. Marketing department with sales: Under this, marketing and sale department are
interrelate with each other because marketing department produce their quality products
for inviting number of customers. By this ALDI easily enhance their profitability level by
offer quality services to its customers. It directly contribute in increasing effectiveness of
the sale department in effective manner. Marketing function with research and development department: In today's competitive
business environment, customers needs and demands are continuously changing. In this
research and development department play important role in undertaking various research
to gather all the relevant information about customers demand and requirements. By this
manager of marketing department easily introduce changes as per customers demand and
also improve their performance level in most effective manner. Marketing department with human resource management function: Workers are the
important assets for every business organization in which they produce quality products
to its customers and also communicate with their customers (Forrester, 2010). By this
they easily make strong relation with their consumers and attain their loyalty towards the
company. With the helps of this ALDI enhance their profitability level.
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 IT department and marketing function: Manager of marketing department undertake
various research for gathering as well as collecting relevant information of market trends
and customers taste. By this company influence their customers to buy its products and
services. Along with this, ALDI have to use effective and right technology to store entire
information in order to take right decision for future activities. With the help of this,
manager easily expand their business activities in effective manner and attain positive
outcomes in systematic way.
All these are related with another function of the business which leads in attaining the
competitive advantage in effective manner. By this company enhance their performance level at
market place and also create customers base. Along with this it directly contribute in overall
success of the company (Gummesson, 2011).
TASK 2
P3 Marketing mix to the marketing planing process to attain business objectives
Marketing mix is an vital concept for every company to attain set goals and objectives. It
include four basic elements like product, price, place and promotion. In context of ALDI, they
produce variety of products and services to its customers according to their demands which helps
in influencing them to buy company products and services. For attaining better results, company
have to advertise their products by using various tools and online platform which may lead in
inviting more and more customers. Along with this, it is also important for business organization
to follow elements of marketing mix in order to create customers base within the organization
(Jones and Rowley, 2011). As various company use these elements in different way which can
be understood by following points:
Basis ALDI LIDL
Product ALDI offer quality products at
affordable cost as compare to its
customers. In this they influence
its customers to buy its products
and services so that they easily
enhance their profitability level.
LIDI consider as an low-budget
retailer which provides same
products to make their products
available in their markets. Main
difference is they give products
with various name in their
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Along with this, company
purchase quality raw material
form best suppliers in bulk so that
they effectively offer their variety
of products at low cost.
supermarkets stores. As consumers
thought that cheap cost products
includes cheap quality as well as
they show low willing in buying
their services and products. It
destroy operations of enterprise on
a large scale (Mitchell, 2012). If
company is improving or
innovative, that help in producing a
new product or service to existing
once.
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Price As a famous brand, ALDI has
strong customers base in which
they serve quality products at
affordable cost. This will helps in
attaining competitive advantage
from its rivals. In addition of this,
ALDI use various pricing
strategies such as unit pricing
strategy, market penetration,
competitive pricing. All these are
helps in generating profitability
level at market place.
Available products at the stores of
supermarkets is of low cost which
help in attracting higher numbers of
consumers but certain consumers
are having negative perceptions that
manufacture lower quality of goods
by having their price of product at a
cheapest rates. Due to having a low
price it depends on customer
thinking for purchasing a particular
product from their stores.
Customers perception is higher
rates products are giving a good
quality of goods to them.
Place ALDI operate more than 8000
stores in various countries in
which the make more convenient
for its customers to consume
company products and services.
Along with this, ALDI also
produce their products in bulk
which offer from one place to
another warehouse. This will
reduce the wastage and at the
same time also use eco-friendly
tools and equipments within their
stores. This will aid in increasing
profitability level of the company
at market place.
LIDI are having stores at a larger
numbers in various countries like as
UK and Europe. Their are various
segments in the enterprise of
supermarkets which provides
various goods varieties and offers
(Papasolomou and Melanthiou,
2012). Its major objective is to sell
goods in a very short time as well as
for meeting their set targets. It is
important for business to balance
surplus cost of goods at
supermarkets stores with a help of
supplying goods at a period of time.
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Promotion ALDI invest less amount of funds
on their promotional activities
because they promote their
products through newsletter, by
sending direct mail to its
customers (Perreault, 2010). By
this they easily increase customers
awareness towards the company
offerings. Along with this, ALDI
use carious promotional activities
like display media, print,
electronic media and many more.
With the help of this company
easily enhance their customers
base by promoting their stores in
front of customers.
To promote their stores LIDL uses
many promotional techniques in
order to attract large number of
customers. Company applies
pricing model rather than loyalty
schemes available in United
Kingdom. Small retailers are
offering products at lower prices
which restrict LIDL to avail
discount on their products. This
highly impacts business and provide
low customer rate. Such problems
are to be overcome by LIDL in
order to enhance their market share.
People Employees are the more important
part for business organization to
attain positive results. In context
of ALDI, workers define their less
contribution in product selection
of the customers so that some
time they fails in inviting
customers within their company.
As a big retail company, ALDI
divided their different sectors in
which number of workers are very
low. For attaining better results,
ALDI provide on the job training
to its workers and also pay more
Employees in LIDL do not support
their customer at time of their
purchases and pay less attention to
them (Purvis, 2016). This creates
customer dissatisfaction and gives a
negative impact in their brains. It is
analyse that employees lack
motivation. Therefore, to perform
better LIDL offer attractive salaries
to its employees. Also, frequent
training programs can be given to
them to encourage their work
performance and improve client
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as compare to its competitors. By
this company easily enhance their
profitability level in effective
manner.
requirements.
Process For capturing larger market share,
manager of the company put their
best efforts to introduce their
outlets more attractive which
leads in inviting larger customers
and also enhance customers
purchasing power (Rudden,
2016). In addition of this, ALDI
products are having larger
barcodes which help customers in
which they easily identify
company products and services.
One major reason for reduction in
profitability and market share is that
LIDL offers unknown brand
products in low price. Customers
show less interest to these products.
As a result it is altering mind-set of
people because they believe that
LIDL delivers cheap products only.
Store must provide some branded
products too, for customers that are
status conscious (Swenson, Rhoads
and Whitlark, 2014).
Physical evidence This is one of the main element
which is required by the company
in order to deliver commodities to
their customers in an appropriate
manner. Other than this it includes
certain factors like transparency,
areas where their firms are
located, maintenance and many
more. all these aspects should be
kept in mind before introducing
any products. Stores of ALDI
situated in various locations is
providing them with 85% profit as
LIDL practices traditional manner
in reaching out to its customers. It
becomes easier for consumers to
find goods easily. Company
believes in accessibility, hence has
laid various colours such as yellow
and blue to indicate customers
about stores in their near by
location. It is important for LIDL to
understand customer need therefore
uses effective strategy to meet
customer requirements.
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they are selling their products in
cheap rates as compared to other
rival companies. This is helping
them in gaining market
advantages (Walliman, 2015).
TASK 3
P4 Marketing plan for ALDI
Marketing plan is an written document which prepare by the top level management of the
business organization . The main advantage of preparing this document is that, it define effective
path to manager at the time of executing marketing activities which leads in effectively utilizing
the entire available resources in effective manner. For making an effective marketing plan, it is
important for manager to consider all the aspected in systematic way which may lead in attaining
end goals and objectives (Functions of marketing, 2017).
Overview of the company: ALDI is biggest retail company in UK. They operate their
stores in approx 20 countries in order to capture larger market share form its rivals. The overall
turnover of this company is more than €50 billion. Basically, ALDI offer household products to
its customers as per their needs which helps in making them successful enterprise at market
place.
Vision of ALDI: It is a written document which define future position of the company
where they wants to see itself. To become a leading retail company in market place by delivering
features products and services to its customers is vision of ALDI. By this company take strong
place at market place from its rivals (Batt, 2013).
Mission of ALDI: It is also an important statement which help company to attain end
goals and objectives in appropriate time frame. To attain better satisfaction level of the
customers by providing them quality services is mission of ALDI. With the help of this company
enhance their profitability level at market place by inviting large number of customers in
effective manner.
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SWOT analysis: It is an important tool by which company determine its strength,
weakness, opportunities and threats. With the help of this company assess their current position
at market place.
Strength Weaknesses
 Positive brand image at market place is
one of the biggest strength of the
ALDI.
 They offer quality products at
affordable price to its customers.
 Operating cost of ALDI is very low
because they operate their outlets in
various locations.
 ALDI has strong presence in Germany.
 Size of the company is still small.
 Company offer low prices products
which is no more effectively for its
growth.
 Global presence of company is not
more effective.
Opportunities Threats
 ALDI has opportunity to expand their
business in Asia and Africa in order to
enhance their market share form its
rivals.
 Company also invest various funds in
promotional activities to attract lager
number of customers in effective
manner.
 Number of rivals in market place is also
threats for business organization.
 Some time ALDI fails in providing full
shopping to its customers at one
place(Baker, 2014).
 Changes in government policies and
customers demand is also threat for
ADLI.
Goals and objectives of ALDI: Objectives of the company is related with the end goals in
which firm wants to attain it in appropriate time frame. In this context, the main objective of
ALDI is to create customers base by retain them for long time period. This will enhance the
positive image of company at market place. For attaining the same, company put their strong
efforts to manufactures features and variety of products and services to its customers. With the
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help of this ALDI attain better satisfaction level by providing them quality services as per
customers demand (Chinn, 2017).
STP:
Segmentation: Under this, company define small groups from whole population and also
select any one. Along with this, company focus on those customers who are interested to buy
household products at affordable price. With the help of this company attain higher profitability
level at market place.
Targeting: The main target of ALDI is to determine the customers demand towards the
household products and services.
Positioning: Under this, company set their positive image at Germany and also put their
strong efforts in order to attain better image in international markets by delivering quality
services.
Marketing mix of ALDI:
 Product: It define features products and services which provide to the customers in
order to satisfy their needs and demands. In context of ALDI, they offer unique and
variety of products and services to its customers at affordable price. By this they
easily attract large number of customers.
 Price: In current market environment, ALDI offer very low prices to its customers.
By this company purchase effective raw material form its suppliers in which they
effectively offer variety of products to its customers at affordable price (Marketing
Mix, 2017).
 Place: Company operate their retail stores in more then 18 countries. In this company
offer variety of products to kits customers near customers so that they easily consume
its products.
 Promotion: Under this, manager of ALDI, use effective communication channels to
promote their products and services in market in order to influence as well as invite
large number of customers. With the help of this, ALDI create customers base in
order to attain competitive place.
Marketing strategy: For attaining the better results it is more important for ALDI to use
effective marketing strategy. In this they use relationship marketing strategy to promote their
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products and services in front of customers. Along with this, company tries to maintain positive
relation with their customers by providing them long term benefits which helps in retain them for
long time period. By this company easily capture larger market share (Babin and Zikmund,
2015).
Implementation: This step in one of the important which cover al the activities of
marketing plan. For attaining the positive outcomes, it should be effectively implement so that
ALDI easily hit their target and also attaining competitive advantage at market place.
Evaluation: It is last step of marketing plan, in which marketer effectively assess as well
as examine entire activities in order to enhance their profitability level. Along with this they also
reduce the chances of arising any kind of deviations.
Thus, all these are more important phase which make an effective marketing plan. In this
manager of ALDI implement in their business environment to attain higher success at market
place.
CONCLUSION
From the above mentioned report, it can be summarised that marketing is an important
concept for every business organisation to promote as well as sell their products and services to
its final customers. With the help of this company attain its end goals and objectives and at the
same time also invite larger number of customers by delivering them better quality services.
Along with this, the main advantage of marketing department is to effectively execute entire
business activities in effective manner which leads in increasing overall profitability level and
productivity also. Basically it provide various opportunities to marketer to include their
customers to consume company products and services. By this ALDI capture larger market
share form its rivals and take strong position at market place. Further, marketing mix is also help
company to attain competitive advantage by providing quality services to its customers as per
their demands. In addition of this, activities of marketing department also affect the overall
business operations by which manager take right decision for future purpose.
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REFERENCES
Books and journals
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