Marketing Management: Aldi's Marketing TOWS and Customer Service Enhancement

This report analyzes Aldi's marketing management, TOWS analysis, marketing objectives, marketing mix plan, and customer service enhancement.

Marketing Management
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Abstract
Present report has been analyses about the marketing-management of Aldi firms. It
focuses on TOWS Report focuses on Marketing TOWS for Aldi and its marketing audit. It also
Determines marketing objectives for Express campaign. It focuses on marketing mix plan as well
as how Aldi can enhance their customer service levels.
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Table of Contents
Abstract............................................................................................................................................2
INTRODUCTION...........................................................................................................................4
Marketing TOWS for Aldi and its marketing audit ....................................................................4
Justify three marketing objectives for Express ourselves campaign ..........................................6
Examine marketing mix plan ......................................................................................................7
How Aldi can enhance their customer service levels .................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
Marketing management is a process where things can be done within an organized as
well as efficient manner. It offers efficient operation regarding marketing actions. It identifies the
opportunities as well as strategies for providing the opportunities within a profitable manner. It
also represents all the functions of the managerial within the field of marketing. Present report
focuses on Aldi as it is the common brand of supermarket chains as over 10,000 stores within 20
Nations. Its headquarter within Eseen ,Germany. Based in Germany, the chain was founded by
brothers Karl and Theo Albrecht in 1946 when they took over their mother's store in Essen.
Report focuses on Marketing TOWS for Aldi and its marketing audit (Cortez and Johnston,
2017). It also Justify three marketing objectives for Express ourselves campaign. Furthermore, it
examine marketing mix plan as well as how Aldi can enhance their customer service levels.
Marketing TOWS for Aldi and its marketing audit
Marketing audit refers to evaluating marketing plan, objective, current market activities,
etc. of an organisation. Through this, it becomes easy to analyse current market position and
identifying areas where improvement is required. Along with it, audit provide data and info
about market trends, customers needs, etc. Moreover, accordingly strategy and plans are
developed to strengthen market position (Cristobal-Fransi, Daries and Martin-Fuentes, 2020) .
For this there are several models which help in conducting audit (SWOT of Aldi, 2018).
Likewise, for Aldi TOWS model is used for it. It is explained as :
 Threats – Aldi faces a competition from the rivalries such as Best Buy,Walmart and
many more.
 Also in addition to this e retailers such as Amazon move into the online grocery as it
faced a potential threat .
 There is a technology that can be developed through competitors as well as the market
disruptor that can be serious threat within industry to the long duration of time.
 The demands regarding products is seasonal within nature as well as unlike the event
because of the peak season (Skorobogatykh, Malova and Agalarova, 2016). It
influence the profitability of the firm.
 Also day by day rising of raw material can be threat to the Profitability of ALDI.
 The regulation of the new environment under the agreement of the Paris ( 2016) as can be
threat to certain categories regarding product.
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 Laws of liability within different nations are several as well as ALDI can be exposed to
several liability claims that can be given to the change in the polices regarding market
(Homburg, Jozić and Kuehnl, 2017).
 Weakness – They are used to focus areas where there is a need of improvement. There
are some weaknesses regarding Aldi stores.
 They require more investment in technologies as it the given the scale regarding different
geographies the firm is planning to expand in it. Also Aldi has a greater amount of the
money to expand within Technology (Keegan, Rowley and Tonge, 2017).
 There are also various gaps within the range of products that can be sold by the firm.
There is a lack of choice that can gives the rivalries a foothold within market.
 Aldi requires very high level regarding productivity so that they can easily survive
within marketplace.
 There is also poor penetration within high -income groups (Cortez and Johnston, 2017).
Opportunities
 As per the new polices of the environment will create a level of playing field
regarding all players within industry as it focuses on the opportunity for ALDI to drive
the home as its advantages within new technology as well as gain market within the new
products.
 Economic upstick as well as increases the spending of the costumer. As after the
recession as well as slow growth rate is considered as an opportunity so that it can
capture new consumers as well as enhance its market share.
 The inflation rate brought more stability within market as it allows credit at low interest
rate to the consumers of Firm (Skorobogatykh, Malova and Agalarova, 2016).
 The development of market leads to the dilution of the competitors advantages as well as
allows ALDI to enhance its competitiveness compare of the other firms.
 Government also opens an Opportunity for the inventory of the products by the federal
government contractors and also the contractors of the state government.
Strength
As one of the leading firms focuses on its strength as well as allows to thrive within marketplace.
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There are the strength that are not only help to protect the market share within the current
market as well as also aids new market. Some of the strength of Aldi can be given mention
below.
 Aldi is a strong distribution as it can build a reliable distribution network that can be used
to reach the majority for the potential market. It also has a strong base of supplier
regarding raw materials that allows the firm to overcome of supply chain.
 Aldi has a strong free cash flows that gives resources within the hand of the firm to
broad into the new projects as well as generated goods through the creating of the new
revenues.
 ALDI has a strong base as it has to take the entry within new market as well as also
making the success It has leads to the expansion into the new assigned Task.
 Over the years as it has invested within building a consider as a strong brand as it can be
useful to broaden into the new types.
 They track the records by the acquisition and merger as they have the integrated number
of the technologies firm within the past few years regarding its operations .
 Aldi focuses on the low price strategy as they are capable of sold their products at lower
prices as it makes them highly successful within their business (Cristobal-Fransi, Daries
and Martin-Fuentes, 2020) .
 They provide a lot of discounts to their costumers so that they can win the support from
the consumers as this chain has a number of products that can be offered the rotational
basis by the help of the advertisement.
 They have the strong base regarding product mix and Aldi that takes up more than 25
percent to the total space as well as also gives the premium brands that can be
discounted , Thus the strength of the firm gives the highly differentiated products as well
as brands falls under each product category (Skorobogatykh, Malova and Agalarova,
2016).
Justify three marketing objectives for Express ourselves campaign
For every marketing campaign it is necessary to define certain objectives so that reason
behind campaign is justified. Also, the objectives set provide a direction of what activities are to
be done in the market. Moreover, it also enables in attaining overall goals and objectives of
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organisation. Similarly, it is important for Aldi to set objective of marketing campaign so that
they can grow and sustain for long term. Thus, they are defined as below :
Target high income group customers – It is the first objective of campaign where company
will try to attract high income group. this is because from above analysis it is identified that firm
weakness is poor penetration in these groups. So, they are not able to attract and retain them.
With help of this campaign, Aldi can target high income people. They will share details of
product and convince them to buy it (Lindgreen, Di Benedetto and Ritter, 2018). Besides that,
they will tell benefit of using such high quality product. Alongside, goal is to generate rise in
sales up to 13% from high class people. Also, there lies an opportunity in which by focusing on
premium services Aldi can target these people. In this way high class people will be attracted
through this campaign (Cortez and Johnston, 2017).
Build brand awareness – This is the second objective of campaign where focus is on building
brand awareness about premium products and services. here, Aldi will generate brand awareness
through use of social media, organising seminars, and attracting high class people. This is
because it will help in creating a positive image of premium products in minds of high class
people. With that it will be easy to generate awareness about those product qualities in market.
However, Aldi can compete with rivals such as Tesco, M&S, etc (Siemieniako and Gębarowski,
2016) . in segment of premium products. furthermore, short term goal is to convert 15% leads
into customers and increase customer base within UK and other cities.
Increase market share- it is the third main objective of Aldi marketing campaign. In this
company focuses on increases market share within UK. through this marketing campaign firm
will try to offer discounts, benefits, etc. to new as well as loyal customers. Moreover, by
providing new products and high quality services Aldi can increase sales and profits. In addition,
advertising and promotion can be done of this campaign so that more and more customers are
attracted (Skorobogatykh, Malova and Agalarova, 2016). In addition, by focusing on local
market within UK the firm can be enhance market share. Also, it will be beneficial for
organisation as they are already having a strong brand image in UK so they can easily increase
market share.
Examine marketing mix plan
A marketing campaign requires a proper plan so that goals and objectives are achieved.
With this it becomes easy to proceed in systematic way (Skorobogatykh, Malova and
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Agalarova, 2016).. For that a marketing plan mix plan is developed for Aldi Express ourselves
campaign. It is as follows :
Product – It is a reputable brands and also focused into the quality products as the quality of the
product can be maintained as well as offers the various varieties of food such as biscuits,little
Journey ,choco rice and many more. It has around inventory of 1350 products accompanied by
the items. They provide the products that are lower as compare to the other supermarkets. It
gives the stock of fresh vegetables and fruits,beauty products ,household goods as well as soft
tools. It is unable to change its food products but at the same time keep on experimenting with
the items that are non-food items. Such as in winters Aldi provides the warm campaigning gear
and snow gear thus it can change its products as per the change in season. It is also the largest
wine retailer within Germany as well as other products such as Aldi mobile in Belgium,
Germany ,Australia and Netherlands (Hüttner, 2018) .
Price -
– Aldi provides the low price and gives the high quality. It can offers such products that are not
available within market. It uses the Unit pricing strategy for groceries so that it is easy for the
consumers to compare its groceries with other groceries.
Market penetration- They also focused on the low prices regarding the new products so that they
can take entry within market as well as gain quickly (Siemieniako and Gębarowski, 2016) .
Competitive pricing – Within this case it gives the products to the consumers lower prices as
compare to its competitors.
Place- Aldi has around 8000 stores within 18 nations as well as roughly opens every store within
Britain in every week. It procures all the goods within bulk form different suppliers as well as
stores at their local warehouse. It also mentions that all the products' quality is maintained. It also
assures to maintain regional appearance as well as uses the environmental friendly equipment
within their store. While on the other hand Aldi also focuses on the online presence that enables
costumers to check the details of the product as well as tries to locate it to the nearest store
(Skorobogatykh, Malova and Agalarova, 2016).
Promotion – The promotion of Aldi within UK,Australian and UK makes the use of the
electronic as well as display media. It also use the electronic email marketing regarding the new
products and special buys. It can also gives the super buys offers. Within every week it can
communicate to the consumers by the weekly newsletter. It also uses techniques such as swape
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and save to make consumers switch to their brands (Cristobal-Fransi, Daries and Martin-
Fuentes, 2020) .
How Aldi can enhance their customer service levels
It is essential for Aldi to improve customer service so that they can be retained for long
term. the customer service include offering after sales services, taking feedback, etc. Besides
that, enhancing customer service will help in gaining loyalty and increasing customer base.
Furthermore, in order to survive in market for long term and compete with rivals it is necessary
for to attract and retain more customers. this will lead to rise in sales as well as profits. However,
there are many ways through which customer service level can be improved (Strategies to
improve customer service, 2018). They are described as :
Seek customers feedback –
This is the strategy which can be followed by Aldi. Here, they can take feedback of
customers and then on basis of that provide them after sales services. Also, by taking feedback it
will give insight to firm about the complains of customers regarding products quality, features,
value generated from it, etc. Moreover, through multiple ways customer feedback can be taken
such as e mail, survey, this ensures that issues are identified along with customer experiences.
Hence, it is easy to find out areas where improvement is required. In addition, seeking their
customer is also beneficial as it makes them feel that Aldi value them (Kotabe, 2020) . With
that, a relationship of trust is built. However, in this way customer satisfaction can be gained and
they are retained for long term.
Strength customer service team
Aldi can strengthen their customer service team. in this they can hire skilled and qualified
staff. this will enable in providing and maintaining high quality customer services. Alongside,
they can deal with customer complaints easily. thus, they will be able to communicate in an
effective way so that customer problem is listened and solved quickly. Moreover, the skilled staff
possess more knowledge about Aldi products, features, etc. However, firm can track
performance of customer service representative and then train them to deal with customers.
Furthermore, customer also feel delighted when they are treated in good way by employees and
are provided customer services in quick time (Lindgreen, Di Benedetto and Ritter, 2018).
Using CRM systems
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In recent era of technology there are many types of technology which is used and
implemented by various organisations. Likewise, in enhancing customer service, CRM systems
can be used in it. This is because it will be help in keeping records of customers and products
which they have purchased (Skorobogatykh, Malova and Agalarova, 2016). Along with it,
CRM platform ensure that each customer is on same stage and service quality standards are
maintained. besides that, system provide insight about customer needs, preference, and on basis
of it their individual experience can be enhanced. also, customer interaction can be increased and
strong relation are built. With help of system, customer complaints are recorded and Aldi make
sure that same mistake is not repeated again. It leads to gaining their satisfaction. apart from it,
CRM system can be used to provide customer services from anytime and anywhere.
Leverage multi channel service
It is also a method through which customer service can be enhanced. here, Aldi can focus
on leveraging multi channel services. through that, brand reputation can be boosted. However,
there are some practices that can be followed. For instance- use of mobile devices can be useful
in providing 24*7 customer support can be provided (Samoggia, Bertazzoli and Ruggeri, 2019).
It will be help in meeting their requirements. Besides, social media can be used for this purpose
as well. The gap can be reduced by providing solutions to customer problems.
So, these are the ways through which customer service levels can be increased. it will be
useful in solving their complaints easily. also, the areas can be identified where improvements is
required like product quality, features, etc . Besides, customer trust can be gained by offering
them high quality product next time if they face any issue in future. in addition in customer
service method certain changes can be made which will benefit in dealing with them in effective
way (Gaul and Baier, 2019).
CONCLUSION
From the above report it had been summarized that Marketing audit analyse current
market position developed to strengthen market position. Also competition from the rivalries
such as Best Buy,Walmart regarding products is seasonal influence the profitability require
more investment in technologies requires very high level regarding productivity poor
penetration within high -income groups. inflation rate brought more stability within market as it
allows credit at low interest. Aldi is a strong distribution has a strong base of supplier creating of
the new revenues. It focused on Target high income group customers Build brand awareness
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attracting high class people. Creating a positive image of premium products in minds of high
class people. Increase market share- increase sales and profits can be done of this campaign so
that more and more customers are attracted. Aldi focused on the low prices focuses on the online
presence tries to locate products to the nearest store. Aldi use the electronic email marketing and
many more. It also increases customer experience by Using CRM systems as well as Leverage
multi channel service.
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REFERENCES
Books and journals
Cortez, R.M. and Johnston, W.J., 2017. The future of B2B marketing theory: A historical and
prospective analysis. Industrial Marketing Management, 66, pp.90-102.
Cristobal-Fransi, E., Daries, N. and Martin-Fuentes, E., 2020. Sustainable Tourism
Marketing. Sustainability, 12(5), pp.1-4.
Gaul, W. and Baier, D., 2019. Marktforschung und Marketing Management: Computerbasierte
Entscheidungsunterstützung. Walter de Gruyter GmbH & Co KG.
Homburg, C., Jozić, D. and Kuehnl, C., 2017. Customer experience management: toward
implementing an evolving marketing concept. Journal of the Academy of Marketing
Science, 45(3), pp.377-401.
Hüttner, M., 2018. Marketing-Management: allgemein-sektoral-international. Walter de Gruyter
GmbH & Co KG.
Keegan, B.J., Rowley, J. and Tonge, J., 2017. Marketing agency-client relationships: towards a
research agenda. European Journal of Marketing.
Kotabe, M.M., 2020. Global marketing management. John Wiley & Sons.
Lindgreen, A., Di Benedetto, C.A. and Ritter, T., 2018. Past, present, and future business-to-
business marketing research. Industrial Marketing Management, 69, pp.1-4.
Samoggia, A., Bertazzoli, A. and Ruggeri, A., 2019. Food retailing marketing management:
social media communication for healthy food. International Journal of Retail &
Distribution Management.
Siemieniako, D. and Gębarowski, M., 2016. B2B Relationship marketing management in trade
fair activity. Cambridge Scholars Publishing.
Skorobogatykh, I., Malova, D. and Agalarova, E., 2016. Marketing management of sustainable
development of territories in Russia. American Journal of Applied Sciences, 13(2),
pp.152-162.
Online
SWOT of Aldi, 2018. [online] Available through : < https://www.marketing91.com/swot-
analysis-of-aldi/>
Strategies to improve customer service, 2018. [online] Available through : <
https://www.socialmediatoday.com/news/4-strategies-to-help-improve-your-customer-
service-standards/529799/ >
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