Marketing Management for Aldi in Indian Market

This paper outlines the marketing strategies adopted by Aldi while entering into the Indian market. It includes SWOT analysis, product strategy, segmentation, targeting and positioning strategy, pricing strategy, distribution strategy, promotional strategy, problem identification and solutions, and future management control and management system.

Running head: Marketing management
Marketing management
2018

Marketing management
Executive summary
Marketing strategy is essential to maximize profitability and expand business globally. Aldi is
one of the biggest growing and leading Retail Company which is providing consumer products to
the customers. The company has decided to grow and explore business in Indian market for
taking ample of growth and development. Situation analysis such as SWOT analysis is done by
the company before implementing the business in such country. Product strategy, pricing
strategy, distribution and promotional strategy also have been discussed in brief to achieve
desired goals and to attain competitive benefits. At the end, some suggestions have been given to
minimize risks and maximize profitability widely.
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Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
SWOT analysis............................................................................................................................................4
Product strategy...........................................................................................................................................6
Segmentation, positioning and targeting strategy........................................................................................6
Pricing strategy............................................................................................................................................8
Distribution strategy....................................................................................................................................8
Promotional strategy...................................................................................................................................9
Problem identification and solutions...........................................................................................................9
Future management control and management system.................................................................................9
Recommendations.....................................................................................................................................10
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11
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Marketing management
Introduction
The primary motive of this task is to provide a brief information about the marketing strategies
that are adopted by Aldi while entering into the Indian market. Aldi is a biggest brand in
Australia who offers retail and supermarket products to ample of customers around the world. In
today’s competitive world, the company has decided to flourish its business actions and
operations in the Indian market. Indian is a diversified and democratic country which is known
as republic of India. If Aldi expand business in Indian then it can take ample of growth
opportunities globally. The organic baby wipes product has been chosen in the task. The paper
outlines that how the company uses SWOT analysis and marketing strategies to overcome the
competitors in the foreign market. The future challenges and solutions also have been explained
in the task. briefly.
Aldi is a common and well know brand of two German discount supermarket chains with having
10000 stores in more than 20 countries. The company was incorporated in 1946 by brothers Theo
Albercht and Karl. It is noted that the firm has approx 2,500 stores in Northern, Western and
Eastern Germany (Aldi, 2019). In today’s modern era, the company offers various retail and
consumer products such as grocery products, bakery, fresh foo, Yougurt, String cheese, Red hot
deal, baby wipes and organics. ALDI focuses on the quality and prices of the products to attract
and retain various types of customers in the international market. Baby wipes products further
are offered by the company to attract female customers in the competitive market. By limiting
consumer choice and preferences, the firm has been able to save money in several ways (Jenkins
and Williamson, 2015). The organization keeps labor costs low to maximize the customers
across the globe. The core values of Aldi include honesty, openness, service, orientation,
fairness, and friendliness (Aldi, 2019).
SWOT analysis
It is stated that the company has decided to enter into the Indian market to earn more revenue and
uplift profitability globally. Therefore, various marketing strategies need to be used by the
company while entering into the new market. SWOT stands for strengths, weaknesses,
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opportunities and threats. SWOT analysis is done by ALDI to identify and analyze the
opportunities and threats of the market. The SWOT analysis for ALDI has been discussed below.
Strengths Weaknesses
 ALDI renders top quality of products
and services at reasonable prices.
 It provides ample of products portfolio
at its various stores.
 The company has a strong presence in
Germany with approx 2500 stores.
Thus, it can take various advantages in
Indian market (Mbaskool, 2018).
 Along with this, ALDI keeps the
operating cost low that helps the firm to
increase and enhance the profit margin
in the foreign market.
 It operates and manages business
operations in more than 15 countries
globally (Mbaskool, 2018).
 Aldi is relatively small as compared to
other companies.
 It sells low and cheap quality items or
products in the market.
 The company has not been able to
impact internationally because there are
only few chains stores in the market.
Opportunities Threats
 It has been analyzed that Aldi has to
invest huge amount in advertising and
promotion to enter into the Indian
market and to beat the competitors
globally.
 Expanding and exploring into growing
economies like Asia, and Africa etc.
 With the help of repositioning, the
company further could able to boost
and enhance its business activities and
operations widely (Grundy, 2017).
 The government policies, rules and
regulations may affect the business
margins and positions of the firm.
 Other retailers who have thousands of
different and unique SKU’s. This
threats can affect the business functions
and operations of Aldi in the Indian
market.
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Marketing management
Product strategy
It is stated that baby wipes are being sold by the company in the global market. Organic baby
wipes are free from toxic chemicals and it covers a host of reassuring standards. Thus, this will
help to attract female customers in the global market. These baby wipes would be very sensitive
and babies do have a better sense of smell (Grundy, 2017). The organic baby wipes also helps in
improving and enhancing the skincare and softness. These types of baby wipes would be used by
the mothers for new born babies. The organic baby wipes would help save the babies from
various skin problems. These types of wipes are multipurpose and females can use these wipes
for kids as like sanitizers. Thus, ALDI can attract female customers in the Indian market for
gaining competitive benefits and further it will help to meet the long term requirements and
needs of the business. The quality of organic baby wipes is excellent as compared to normal
baby wipes products (Parnell and Lester, 2008). Thus, the firm has decided to modify the baby
wipes while entering into the Indian market. The product strategy is essential to expand and
explore the business in the Indian market successfully and effectively. Along with organic baby
wipes, the company can also offers some other products in Indian such as almond milk, yogurt,
whole food and health and fresh food products. The products rendering by the company are
cheaper as compared to other brands thus it can boost profitability and market share in Indian
market. The production process and cost of the firm is controlled and managed by Aldi in a
hassle free manner. Non-food items are also stocked by the company such as toiletries and sells
musical instruments (Huang and Huddleston, 2009). It is analyzed that organic baby wipes
products will have to be introduced by the company at low prices in Indian market.
Segmentation, positioning and targeting strategy
The segmentation, targeting and positioning strategy is necessary to build a dynamic image in
the Indian market and to stand out over the rivalries globally. ALDI can use this marketing
strategy to attract wide range of customers widely. The STP strategy for ALDI is discussed
below.
Segmentation: ALDI segments its Indian market using various and innovative marketing
strategies.One of the significant strategies that used by the company is segmentation. It helps in
dividing the entire market into the different market segment. The segmentation is done by the
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company on the basis of demographic, geographic, physiographic and behavioral areas. In
demographic segmentation, the company can target mothers with babies ages 0-3. Here the
company can use segmentation by age and sex, they do this by showcasing commercial and
effective with mothers in stores (Najafizadeh, Elahi, Moemeni and Lotfi, 2012). The company
will also focus on the income level and social classes of users in demographic segmentation. The
organic baby wipes has been able to maintain large and dynamic segment just because they are
not expensive thus, middle and lower class people can also buy these products easily. Aldi will
focus on the quality and features of organic baby wipe to attract middle and lower class people.
In geographic areas, the company would analyze the locations and places in Indian market. It is
noted that majority of mothers are working in these days, thus the demand for baby wipes is
increasing day by day. The organic baby wipes are very sensitive and provide extra protection to
the babies (Sultan, Wong and Sigala, 2018).
Targeting: ALDI will target the young dads and mothers who are between the age group of 25-
35, which are having their first child. It has been analyzed that the company will identify and
analyze the needs, requirements and choices of middle and lower class people in Indian market
to increase and enhance the sale of organic baby wipes. The company has decided to promote
and encourage these products by using effective and dynamic advertisement and promotional
strategies. By using targeting strategy, ALDI will further able to fulfill its long term mission and
vision in the Indian market. Aldi sets the low prices of organic baby wipes to attract and retain
mothers who are from rural and urban areas (Burke, 2011).
Positioning: By using positioning strategy, ALDI could able to position itself as a brand in the
Indian market. The message of quality and product value still rings a bell in the eyes of the
customers globally. By informing and educating wide range of customers in Indian market, Aldi
can boost and enhance its brand position in the market. Positioning strategy helps in gaining
loyalty and trust among the customers in regards organic baby wipes. The positioning strategy is
suited for environment and atmosphere of the Indian market. In this way, segmentation,
positioning and targeting strategy would help Aldi to overcome the competitors in the Indian
market. With the help of competitive pricing policy, the key target audience will get the real
value of shopping from Aldi in Indian market. Along with this, refund policy can also be used by
the organization to understand and evaluate the needs, requirements and desires of the female
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Marketing management
customers in the foreign market. The refund shall be done on regular basis if the customers are
not fully satisfied with the products (Ekmekçi, 2010).
Pricing strategy
One of the significant and vital strategies that can be used by the company is pricing strategy.
This strategy helps the firm to distinguish its products from the competitors globally. There are
ample of strategies of pricing of organic baby wipes (Zielke, 2010). The ample of strategies
include competitive pricing, strategic pricing and market penetration. The strategy that can be
applied by Aldi in Indian market is competitive pricing. By using pricing strategy, the company
is able to provide products at low and cheap prices (Berman, 2015). It needs to offer great
leverage for negotiating the best possible prices for the products and services. Competitive
pricing strategy that is adopted by the firm helps in attaining ample of competitive advantages in
Indian market. The pricing policy that made by the company is to capture maximum market
share in the international market. Competitive pricing policy further helps the firm to be one of
the biggest supermarkets in India. This policy is simple and transparent to maximize female
customers (Grewal et al, 2010).
Distribution strategy
It has been reported from the various analysis that Aldi has separate distribution centers in their
operating countries. Thus, the company has to invest huge amount on the distribution channels
and centers in order to manage and handle their business in Indian market successfully and
effectively (Obitz, 2009). The company can use supply chain and logistics management to attract
capture maximum target audience in India. The suppliers need to keep the delivery roots short
and they can use best war housing techniques and methods for supplying the organic baby wipes
products to the customers across the globe. In order to distribute the products effectively, the
company has to appoint talented and skilled workforce at the stores. The qualified workforce
could able to understand and identify the needs, choices and preferences of the female customers
internationally.
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Marketing management
Promotional strategy
One of the vital and fundamental strategies that could be implemented by the company is
promotional strategy (Amato and Amato, 2009). In order to maximize its profitability, the
company has to increase and enhance the market share. The promotional and advertisement
strategies further will help Aldi to gain customer loyalty and trust. By using promotional
strategy, the company is able to increase and enhance the Awareness among the female
customers in the Indian market. The company can further use social media channels like TV,
internet and facebook to promote organic baby wipes in the Indian market. No company can
grow and expand business without using promotional strategy effectively and successfully
(Kimpel and Friedrich, 2015).
Problem identification and solutions
It has been analyzed that if Aldi enter into the Indian market then various problems could be
faced by the company. Competition is one of the biggest problems that can be dealt by the
company. The competitors include D-Mart and Reliance fresh that are operating and enhancing
the business in India carefully. Along with this, legal or regulatory risks also can be faced by the
company while entering into the Indian market (Turban and Wolf, 2008). The changing or
unpredictable regulations would affect the brand image of the firm adversely. Although, India is
a stable and effective democratic country but still various political risks will be entertained by
Aldi while operating business. The legal laws, policies and regulations can affect the financial
position of the firm in a large extent (Voigt, Buliga and Michl, 2017).
Future management control and management system
It is stated that Aldi can use various techniques and tools to measure and identify the future risks
and challenges in the competitive market. Pestle analysis is done by the company to identify and
evaluate the risks, challenges and threats of the market in near future. A market survey and
research is conducted to further eliminate and reduce the issues and challenges of the market.
Effective and dynamic planning is done by the company to analyze and evaluate the products,
policies and prices of the competitors. The company can further use an effective performance
management system to analyze and identify the skills, potential and performance of the
employees in the Indian market (Lce, 2018). The effective and unique performance management
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system is essential to identify and evaluate the performance and productivity of the employees in
a hassle free manner. Apart from this, porter five forces analysis is done to attain the rivalries
benefits in the international market (Amritt, 2018).
Recommendations
Some of the recommendations for Aldi have been detailed below.
 It is recommended that Aldi should focus on the dynamic and unique distribution and
promotional channels to cater organic baby wipes to the customers across the globe.
 Along with this, unique and effective business level strategies and corporate level
strategies shall be used to compete with rivalries in the Indian market.
 An effective and potential target market shall be identified and analyzed by the firm to
maximize the sale of organic baby wipes products in the international market.
 Political and legal system of India must be evaluated to handle and manage the future
risks and challenges.
 Talented and skilled should be appointed to attract and retain wide range of women in the
Indian market.
 Ansoff matrix is one of the significant strategies that shall be used by Aldi to penetrate
entire market globally.
Conclusion
It is concluded from the above mentioned analysis that Aldi is a well known Australian retail
company that provides ample of retail and consumer products to the customers across the globe.
The firm has decided to enter into the Indian market for introducing organic baby wipes for kids
carefully. Aldi needs to focus on the women customers to bring the organic baby wipes in India
so that they can maximize returns and revenue globally. The above analysis shows that how the
company uses marketing mix strategy to improve and enhance the products in the Indian market.
SWOT analysis and market survey are done by the company before initiating the business
functions and activities in the Indian market. Apart from this, future risks and challenges of the
market are identified and measured to expand and flourish the business internationally. At the
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end, some recommendations have been presented to maximize revenue and expand business in
Indian market.
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