Marketing Management: Aldi's Marketing Campaign Analysis

This report evaluates Aldi's marketing campaign and analyzes its marketing strategies. It includes a market audit, marketing objectives, and a marketing mix analysis.

MARKETING
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Market Audit of Aldi...................................................................................................................3
Marketing Objectives of Aldi’s Marketing Campaign................................................................6
Marketing Mix.............................................................................................................................7
Proposals on improving customer service400...........................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
The term marketing management signifies the activities or strategies that are developed to
control the presence of the brand in the external environment in which it operates (Dandage,
Mantha, and Rane, 2019). The current report will evaluate the entire marketing campaign that
has been launched by Aldi for the period of twelve months and different aspects related to its
marketing strategies will be analysed and discussed. A Tows matrix analysis will be conducted
for Aldi in order to identify their opportunities etc., and based on that, Smart objectives will be
developed for the company. Laslty a marketing mix analysis will be done and then appropriate
recommendations will be made for the company in the report.
MAIN BODY
Market Audit of Aldi
The concept of marketing audit details the analysis of the current market situation where a
comprehensive and systematic analysis is conducted on the internal and external environment
prevalent in the current industry. Conducting a regular market audit is critical in developing the
relevant marketing objectives for a company that will assist in the ensuring the success of the
organisation or business (Dargahi, Darrudi and Zalvand, 2019). In order to perform a
comprehensive market audit for the company, the TOWS matrix can be used that will help in
addressing and evaluating all the relevant factors in a comprehensive manner:
TOWS Matrix: Similar to Swot Analysis, Tows Analysis helps in analysing not only the
strengths, opportunities, threats or weaknesses of an organization but also the combination of the
two aspects such as Weaknesses and Threats or Strengths and Weakness etc. For Aldi, the
marketing audit through Tows analysis can be conducted in a following manner:
Strengths
The major strengths of Aldi can be
categorised into following points:
 Lower Prices of the products.
 Extensive Supply Chain
development for Aldi.
 Excellent Financial Leverage
for the company.
Weaknesses
Following are the weakness of
the organisation:
 Perception of quality of
products as cheaper.
 Lack of strong online
presence of the products
or brand in the

competitive environment.
 Untrustworthy public
image.
Opportunities
Aldi has following
opportunities
available for itself
currently:
 Profit
generation and
turnover can
be increased
in existing
market.
 Company can
launch new
products and
new services
in the market. The expansion
of the number
of branches of
company.
Strength Opportunity(SO)
 The price of the Aldi
products is comparatively
much lower in the entire
retail industry and this gives
the most profitable
opportunity of increasing the
turnover in comparison to the
major competitors thus
improving company’s
presence (Černý, Vaněk and
Hubáček, 2018).
 Another major factor is that
the supply chain of Aldi is
very extensive and this
presents as opportunity to
launch newer products in the
market at feasible prices thus
increasing the target market.
 Due to the fact that the
financial leverage of the
company is stronger, this
implies that the company has
adequate funds to venture
into new markets with newer
products thus implying that
the company can easily
expand themselves.
Weakness Opportunity (WO)
 Quality is the major
aspect that Aldi needs to
focus upon and when the
quality of the products
will be improved, the
turnover and profit
automatically improves.
 Venturing in the online
markets can be a
profitable venture for the
Aldi company where they
can easily increase the
chances of creation of the
new market segment
specially for the elderly
customers in the
company.
 In order to improve the
untrustworthy image that
the company has
regarding its products, the
company can develop an
exclusive section in its
store where the products
of extremely good quality
or the ones of other
brands can be organised

so that they can
restructure their brand
image (MZ, SA and
Saliluddin, 2019).
Threats
In the current
scenario of Brexit,
there are some major
threats that are posed
to the organization:
 Tax laws can
change that
can affect the
operation of
the company
negatively.
 The
competitor’s
presence in
the retail
market has
increased
significantly. The economy
has become
unstable
which has led
to the
increased
risks.
Strength Threat (ST)
 The major advantage that
Aldi currently has is that
they can exercise their
pricing power i.e. the
cheaper prices can still be
used to generate increased
customer base and profits
accordingly.
 Since the supply chain is
already strong, in order to
minimise the risks in future
related to economic
instability, the company can
develop loyalty amongst the
suppliers, customers etc. in a
supply chain where it can
improve its presence over its
competitors (Kim, 2016).
 Even when the economy is
declining, the company can
maintain a good economic
performance and position by
maintaining the market
share. In order to do this,
they need to rigorously work
upon the strategies to be
Weakness Threat (WT)
 With the increasing rates
of taxes and taxes and the
perception of the
products as of the ones
belonging to cheaper
quality, the company can
enhance the overall
quality and overall, Aldi
can increase the quality
and public goodwill or
image.
 Additionally, venture into
expansion of online
markets can lead to better
performance levels as
compared to the
competitors because of
the cheaper pricing
strategies of their
product.
 The condition can
become favourable for
Aldi because in times of
recession, consumer’s
preference for cheaper
brands will increase thus

adopted during this volatile
period of Brexit effect.
increasing their own
profits and revenue
generation (Baker and
Saren, 2016).
Therefore, the analysis above concludes that Tows is an effective tool in identifying the
key opportunities and threats of Aldi in the existing market scenario and these can ultimately be
used to develop the marketing objectives for the entire organisation. Currently, the only major
area of focus for Aldi should be on the quality of the products that they sell to the public.
Marketing Objectives of Aldi’s Marketing Campaign
On the basis of the Tows analysis conducted above, the following marketing objectives can
be prepared for Aldi under the “Express Ourselves” marketing campaign:
Specific: The current objective under the “Express Ourselves” marketing campaign must be to
improve the quality perception regarding products and this can be done by improving the quality
of products and services given to existing market share (Chang, McAleer and Wong, 2018). By
improving the policies developed by the management of the company, and working on the
strategies developed to attract the targeted market under the “Express Ourselves” marketing
campaign, company can improve the perception within the designated time period of 12 months.
By developing a proper plan for every stage, the company can achieve the targeted objective of
improving the overall quality of the products and the presence of the company in the retail
industry. Collectively, this will also improve the sales figures and revenue generation of the
company as well.
Measurable: The Aldi Company through their “Expressing Ourselves” Campaign plan to further
maximise the sales of the company within the next 12 months. The intended campaign will
improve the perception of the consumers regarding the quality of the products that they are
selling and will also make them aware regarding the several brands’ products that they have in
their stores. Ultimately, this is expected to increase the overall sales of the company where the
Aldi expects to increase their market share by almost a 50% of the sales (Chitty, D'Alessandro
and Gray, 2019). The discounted pricing of their products along with the enhanced image
regarding goodwill will help the company to achieve the targeted objective of become a leading
retailer in UK outsmarting bigger retail giants specifically Tesco.

Achievable: Due to the wider range of products that Aldi currently holds and the cheaper pricing
strategy, the company has all the necessary resources required to develop and implement an
extensive pricing strategy where they can target the customer segment to achieve the targeted
share in the next 12 months (Chung and Low, 2017). Therefore, “Expressing Ourselves”
campaign has been launched in the current market conditions when the brand image of Aldi is
already well perceived and the chances of enhancing the goodwill regarding quality can further
enhance thus making the situation profitable for the company. Also, there is adequate availability
of the resources in the company currently that makes it feasible to achieve the targets that have
been set by the company to be achieved by the end of 12 months.
Realistic: The “Expressing Ourselves” Campaign is an extremely realistic campaign that tends to
make the customers aware of the quality products that they are selling and then also work upon
the removal of the ambiguity that surrounds the perception related to the quality of the product
(de Sabando and et.al., 2018). Through this campaign, the company will be able to work around
the overall image of the brand and this is a relevant and realistic campaign that has been
developed by the company.
Timely: The brand has set the campaign to be achieved within the next 12 months and this is the
appropriate timing because during this period of 12 months the company will be able to achieve
all its targeted objectives. In the initial three months, the company will launch various
advertisements targeting different products such as coffee, clothes, sweatpants etc. that have
been launched by the company. In the next three months, the company will ensure the
availability of the products that they have made people aware about and personal advertising and
promotional activities will be the key focus areas for them (Hua, 2019). In the third quarter, the
company will target their competitors by developing pricing strategies accordingly and in the last
quarter, they will measure the results of the strategies thus developed i.e. whether they have been
successful or not and then this will help in developing future strategies accordingly.
Marketing Mix
Marketing mix helps in collection and evaluation of all the key strategies that are essential
in order to position a brand competitively in the market and ensure that its availability is and
presence is implemented as desired in the objectives (Keegan, Rowley and Tonge, 2017). There
are seven major elements that are discussed under the marketing mix framework and these can
be categorised as following for Aldi Company:

Product: The products offered by Aldi majorly deal in the household retail range where grocery
items, household essentials etc. The range of the products is extremely well classified where the
company caters to different needs of the consumers and focuses on the development of the
product development and market expansion. Under the “Expressing Ourselves” campaign by
Aldi, the company will increase the awareness regarding their own products and the different
products that they sell of their own brands (Lichtenthal, Tzempelikos and Tellefsen, 2018). This
will help in increasing overall performance of the different products of the company in all the
outlets that the company holds and consequently development of better relationships with the
supermarket stores and outlets of that easy access of the products is possible.
Price: The pricing strategy that a company adopts is a critical aspect in determining the
marketing mix strategies of the company. Currently Aldi exercises penetration pricing and
discounting pricing strategies in the current context where they try to attract majority of the
customers by placing their product at a comparatively cheaper rate than their competitors. Under
the present campaign of “Expressing Ourselves” Aldi tends to improve its brand perception that
is associated to cheaper quality due to lower pricing and this leads to better development of the
pricing mechanism that is to be adopted that is linked directly to the perception of the company
in the period of next 12 months.
Place: Place basically signifies that how easily can a customer access the products or services of
the company i.e. what will be the availability of the products in the targeted market segment
(Obradović, Kostić and Mitrović, 2016). Currently, Aldi has a customer base that is spread all
over the world by their stores that operate in different locations spread all over the world.
Company has already targeted different segments by increasing their online as well as offline
presence in the market and this has led to the customers becoming increasingly aware of their
products and expansion strategies of the company. Under the “Expressing Ourselves” campaign
Adi plans to venture further into the online market where they can target older customers of the
company as well and this is to be achieved within the designated framework of 12 months.
Promotion: Promotion is another critical aspect where the marketing strategies that are adopted
by the company helps the company in identifying different channels that can be adopted in order
to increase the brand image of the company. Under the “Expressing Ourselves” campaign, Aldi
has increased the number of advertisements developed in order to increase the awareness, and
they have adopted social media marketing channels, YouTube, audio and video assistance etc.

that has helped them in achieving the targets set in the next 12 months of the company's
campaign (Samoggia, Bertazzoli and Ruggeri, 2019). This has already been proving fruitful and
will help in increasing the yield further in future by increasing the awareness and ultimately the
market share of the company.
People: The role of human resources in enhancing the quality related to the formation of
strategies related to business development is a very crucial aspect and this ultimately leads to the
increase in the customer base of the company. The staff hired in Aldi possess complete
knowledge related to the different products that are marketed by the company and additionally,
they are involved in a variety of trainings and development programmes where they are taught
how to address the needs of different customer segments in the market. Under the current
campaign, the company has enhanced multi skilling in their employees so that they can address
the diversified needs of the customers that have been targeted through this digital as well as
physical marketing campaign in the time period of 12 months.
Process: The process signifies the movement of the raw materials or the produced goods to the
distributers and wholesalers of the company (Sander, 2019). Aldi has a comprehensive supply
chain management programme where they make their products easily available to the customers.
The “Expressing Ourselves” campaign will help in further improving the processes as the
mechanisms of online feedbacks and grievances will also be added and this can help in
addressing the problems of the customers more quickly thus improving the overall quality and
quantity of products sold in upcoming 12 months.
Physical Evidence: The physical evidence signifies the presence of the company even after they
have sold their products. The after sale services of the company are excellent and the packaging
has also been keenly focused on where they have used different colours, icons and slogans for
identifying the products in a differentiated manner. The quality of the entire mechanisms has
been further improved for Aldi and they have started to develop extra facilities under the
“Expressing Ourselves” campaign.
Therefore, the analysis above of the marketing mix helps in ascertaining the appropriate
strategies for the company under the “Expressing Ourselves” campaign.

Proposals on improving customer service400
On the basis of the analysis done above related to the “Expressing Ourselves” campaign of
Aldi, some of the aspects that company can further work on in order to enhance the customer
service that they provide at the stores can be proposed in a following context:
Improvement of the feedback mechanisms: Currently Aldi not just simply needs to address the
problems that the customers are facing but they also need to increase the frequency of feedbacks
of the customers and identify or categorise positive and negative feedbacks received in a
company, and work upon such feedbacks. Additionally, negative feedbacks related to quality of
the products needs to be addressed very quickly and carefully because this will contribute
majorly in addressing one of the major goals of the campaign that is to increase the perception of
the public regarding the quality of products sold in Aldi (Siemieniako and Gębarowski, 2016).
Therefore, the major objective of the company under this campaign can be addressed by giving
greater emphasis to the feedbacks.
Integrating better IT technologies: Although Aldi is present on the online platforms and on
social media platforms as well, but the company needs to work upon the quality of such
platforms on which they have developed themselves. When there will be adequately trained staff
in the company who knows how to monitor the customer traffic on such platforms and also
understands the timing of the activities on such online platforms, than it becomes easier to target
specific customer segment. Aldi can specifically increase their market share by increasing the
number of older customers associated with the company (Kim, 2016). This will contribute
effectively in the success of the entire marketing campaign that Aldi is planning to launch for the
period of next 12 months.
Promotional Strategies: Although the promotional strategies that Aldi is currently adopting
under the designated campaign are already intelligently planned and cleverly sought yet there are
certain improvements that can be made by the company. For instance, portrayal of an old lady as
a woman who is confident about her coffee is a good strategy but additionally, the company also
needs to address the fact that the product solved by them is better than the one sold by their
competitors (Chung and Low, 2017). This should be done in correct manner i.e. the
specifications of the product need to be discussed in a detailed manner. This will help in truly
achieving the goals set under the marketing campaign efficiently using all the resources available
in the company.

CONCLUSION
The analysis conducted in the above report shows that the Tows Matrix analysis was a
critical aspect in the determination of the areas in which Aldi lacks and the areas in which they
needed to improve the operations further. It was identified that quality was one of the biggest
marketing barriers and this can be also used to conclude that the campaign “Expressing
Ourselves” of Aldi focused mainly on improvement of the quality perception and to reacquire the
lost market segment. The conduction of 7 P Analysis in the marketing also concluded that the
different factors are favourable for the company currently to launch better quality products and
since this is a peak factor, pricing is the best strategy than needs to be worked upon. Lastly, the
report also identified the potential approaches that the can now be developed in order to adjust
the brand position.

REFERENCES
Books and journals
Baker, M. J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Černý, I., Vaněk, M. and Hubáček, J., 2018. New approach to evaluate the TOWS matrix and its
application in a mining company. Journal of the Southern African Institute of Mining
and Metallurgy. 118(12). pp.1297-1303.
Chang, C. L., McAleer, M. and Wong, W. K., 2018. Big data, computational science, economics,
finance, marketing, management, and psychology: connections. Journal of Risk and
Financial Management.11(1). p.15.
Chitty, W., D'Alessandro, S. and Gray, D., 2019. Services marketing. Oxford University Press
Australia and New Zealand.
Chung, T. S. and Low, A., 2017. The impact of investor impatience and environmental
turbulence on myopic marketing management and stock performance. International
Journal of Research in Marketing.34(3).pp.660-677.
Dandage, R.V., Mantha, S.S. and Rane, S.B., 2019. Strategy development using TOWS matrix
for international project risk management based on prioritization of risk
categories. International Journal of Managing Projects in Business.
Dargahi, H., Darrudi, A. and Zalvand, R., 2019. Family Medicine Program in Iran: SWOT
Analysis and TOWS Matrix Model. Iranian journal of public health. 48(6). p.1140.
de Sabando, R. and et.al., 2018. The marketing orientation as a university management
philosophy: a framework to guide its application.
Hua, H., 2019. Mobile marketing management: Case studies from successful practices. CRC
Press.
Keegan, B. J., Rowley, J. and Tonge, J., 2017. Marketing agency-client relationships: towards a
research agenda. European Journal of Marketing.
Kim, N., 2016. Local Sport Development Strategy through Sport Development Model and
TOWS Matrix. International Information Institute (Tokyo). Information. 19(4). p.1209.
Lichtenthal, J. D., Tzempelikos, N. and Tellefsen, T., 2018. Journal positioning meta-issues as
evolving contexts: Organizational marketing at the crossroads. Industrial Marketing
Management.69. pp.40-52.
MZ, Z.H., SA, M.A. and Saliluddin, M.S., 2019. TOWS MATRIX OF ENVIRONMENTAL
HEALTH MANAGEMENT FOR FLOOD DISASTER IN MALAYSIA. International
Journal of Public Health and Clinical Sciences. 6(1). pp.1-21.
Obradović, V., Kostić, S.C. and Mitrović, Z., 2016. Rethinking project management–Did we
miss marketing management?. Procedia-Social and Behavioral Sciences.226. pp.390-
397.
Samoggia, A., Bertazzoli, A. and Ruggeri, A., 2019. Food retailing marketing management:
social media communication for healthy food. International Journal of Retail &
Distribution Management.
1

Sander, M., 2019. Marketing-Management: Märkte, Marktforschung und Marktbearbeitung. Utb
GmbH.
Siemieniako, D. and Gębarowski, M., 2016. B2B Relationship marketing management in trade
fair activity. Cambridge Scholars Publishing.
2