Enhancing Customer Service Level in the 'Express Ourself' Campaign
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This document discusses the TOWS analysis, objectives, marketing mix, and proposal to enhance customer service level in the 'Express Ourself' campaign of Aldi. It also highlights the importance of training, market research, and other strategies to improve customer satisfaction.
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MARKETING MANAGEMENT
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Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 Tows analysis..............................................................................................................................1 Objectives....................................................................................................................................4 Marketing Mix............................................................................................................................5 Proposal to enhance customer service level................................................................................7 CONCLUSION................................................................................................................................8 REFERENCES................................................................................................................................9
INTRODUCTION Marketing is the combination of different factor which looks at influence customer to buy the product of the company.Aldi is the common brand of two German family-owned discount supermarket chains with over 10,000 stores in 20 countries. This report explain TOWS analysis of organization and objective of Aldi. After that the report explains the marketing mix and proposal to achieve the objective and customer level satisfaction respectively in regards to new campaign “express ourself”. MAIN BODY Tows analysis TOWS analysis is the framework which is used in the organization to analysis the internal position of the business and trying to fix a relationship with different opportunity and threat which is present in front of the organization in long run of a business. INTERNAL FACTOR E X T E R N A L F STRENGTHWEAKNESSES OPPOUTUNITYBiggest strength of Aldi in the market is that they used to follow the low pricing strategy, which help organization in seeing good amount of customer toward thestoreofthecompany. Organizationishavinggood opportunitytoadoptnew technologysuchasautomation packagingtechnologyfromthe market. This will help company in saving the cost of packaging in the organization. This will help companyinstayingwiththe same strategy in the competitive market for longer period of time, Low profit margin is the biggest weakness of an organization, As Explained that organization used to sell their product at low price in theorganization,thiseventually used to has a greater impact on the profitmarginofthecompany. (Gottfriedamdet.al.,2018) Adoptingnewoperational managementtechnologyinan organization may help company in gettingcostadvantageinan organization. This may help Aldiin improving the profit margin of the companyaslowpricingusedto increase the customer base but at 1
A C T O R thiswillhelpcompanyin defendingthedifferent competitor challenges in future as well. Another strength of the Company is the Product mix of thecompany.Asorganization used to offer good variety of the product in the market to attract theeyeofthecustomer (KulshresthaandPuri,2017). Aldiishavinggoodsortof opportunitytoexpandtheir businesstonewmarketby expanding there business to new developing market, this will help companyinimprovingthe customerbase of the company andmayresultinenhancing profit margin of an organization. some point impact the profit margin ofthecompany.Opportunityof adopting new technology can help company in maximizing the profit for some level in the organization. Another marketing weaknessforAldiisthat organization is not able to attract the eye of thecustomergroup which belong to higher income group as a resultorganizationhasto compromisesomesortofprofit margin in the market. As a result expandingtheirbusinesstomany differentdevelopingmarketmay helpcompanyinseeinghigher incomecustomeralso.Asin developingmarket,customerfrom all the income group used to demand variety of different product in the market. THREATSAldi used to operate in highlycompetitivemarket.As there are many big organization which used to operate such as Asda and Tesco Plc.. As a result Aldi used to dealt with variety of different competitive force which differentorganizationusedto offer in the market. So it creates a goodsortofthreatforthe There are many different typeoflegallawsandregulation which need to be compiled in the operation of the business to carry out different outcome of the business. This eventually used to impact the efficiencyofthebusinessas organization is already facing good amount of competition in the market and also compiling different activity 2
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company to run the operation of the business in the market. As organization used to operate on the low pricing strategy it help organization in getting best result out of the market.. As this help company in attracting the eye of the customer toward the product of the company in the market. Thismayreducetheprofit margin of the business in long runbutwillhelpcompanyin managing the customer base of the company. Customer preference is anotherbigthreatforthe company, as it has been seen in the recent past that the customer preference of all the customer in the market used to change on the regular basis. At the same time as company is having good product mix in the market, it used to help organizationinenhancingthe levelofcustomerneedsand wants in an organization. As all thecustomerinthemarket alwayslooksforthedifferent variantproducttosatisfytheir need in the market. of the business with the legal laws andregulationwilleventually impact the efficiency of the business and also may impact position of the business in the competitive market (KowalikandKlimecka-Tatar, 2017). Another threat which is in front of the business is that market area coverage of the business is not that great in the domestic as well in theglobalmarket.Asaresult organization has to suffer in term of building as good as other company financialposition. So Aldi has to take corrective action to improve the marketareacoverageofthe company in long run of the business. 3
Objectives Objective 1: “To improve the customer base of the company by 25 percent in coming one year” As marketing audit of an organization shows that organization is able to maintain a good customer base but do not able to attract the eye of the customer falling in higher income range. For the same reason Aldi in coming one year will try to attract the eye of the same customer group and will look to improve the customer base of the company by 25 percent in coming one year. At the same time organization will also looks to maintaining the current customer base of the company in the market. As they can work as a good referral tool for the business to build good customer base of the company in the market(Datta, Ailawadi and Van Heerde, 2017). Objective 2:“To enhance the sales of the company by 20 percent in coming one year” Aldi is looking to improve the sales of the company. As marketing audit of the company shows that the organization used to operate with the strategy of low pricing strategy in the market, this eventually used to impact the revenue of the business in negative way in the organization. As a result to improve the revenue of the company organization is looking to improve the sales of the company. As the new campaign title i.e. “Express Our-self” Used to highlights that organization has made different efforts to express themselves in the product of the company to satisfy consumer need in the market. As organization will look to adopt new technology to improve the product mix of organization. This will eventually help company in offering better offering to consumer in the organization to satisfy there need in the market. Objective 3: “ To build good brand-awareness of the company in the market in coming one year” Aldi is looking to build good brand awareness of the company in the market. As marketing audit of the organization highlights the organization is dealing in highly competitive market. So it is very important for Aldi to build a brand-awareness in the organization so that all the customer in the market are aware about the different offering of the company. This will eventually help the company in getting competitive advantage in the market as if consumer in the organization are more aware about the different offering of the company they will eventually drive themselves to consume the product of the company. 4
Marketing Mix Marketing Mix is the model in the organization which used to identify the different element of marketing mix in the organization. In simple words it is the set of the marketing tool which can be used by the organization to achieve the marketing objective of the business (Marketing Mix, 2018). Product: Aldi has to make sure that they used to bring variety of the different changes in the product line of the organization. As objective of Campaign highlights that the organization is looking to improve the sales and customer satisfaction for the organization. Product of the company is the best option in front of the organization to achieve the objective of the business. As audit has also highlights that organization is already having good product mix, organization with the help of the new technology can develop a new product in the market or can brought innovation in the current product of the company to attract the eye of the customer toward the product of the organization. Organization also will look to bring more higher range product with improved quality so that they can also able to attract the eye of the customer base belonging to higher income level as in current scenario organization is not able to attract the customer from that group of customer base(Blut, Teller and Floh, 2018). This will also highlights the tag line of the campaign that we are expressing our-self with the help of the different offering of the company in the market. Price Mix:Aldi has to continue with the same pricing strategy in the market, as organization is getting good sort of result from that strategy in the market. As organization used to offer the product of the company in the market by keeping the price of the product at low. This eventually used to help the organization in getting competitive advantage. Aldi can also look to adopt screaming pricing strategy in an organization. In this strategy the organization has to make sure that they used to launch the new or innovative product in the market at the low price but after seeing the result of the product organization can increase the price of the product to maximize the profit margin in the organization. Promotion: Aldi in current scenario uses the domestic channel such as TV advertisement and News paper advertisement to promote the product of the company in the market. Aldi also uses the social media platform also. Aldi has to invest more number of resources toward promotion with the help of the social media platform. Reason behind the same is identified that as organization is looking to improve the brand awareness of the company. Social media 5
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platform will help the company in touching large number of customer together in the market as compare to the other marketing platform. As number of social media user is to good to be targeted by the company. Also Aldi will be promoting the product of the company with the help of the campaign tagline “Express Our-self” this will help company in passing on the another thing through which customer can recognize the product of the company in the market. Place:Aldi has to make sure that they used to target domestic market of the UK for the new campaign of the company “Express ourself”. Reason behind the same is that there is still a good market left for the organization to be covered in the domestic circuit as well. After seeing the result in domestic market, organization can look to enter into global market as well. Aldi should use direct as well as indirect channel to sell the product of the company, as it will help company in touching more number of customer in the market which will help the company in improving the sales of the company in long run of the business(Wu and Li, 2018). Packaging: Aldi also has to make sure that they used to adopt new technology in the organization for improving the packaging of the company. As Adopting new technology can help company in saving good amount of the cost by lowering down the cost of packaging in the organization. This will eventually provide good support to the company to offer the product at the lower rate in the organization, this will eventually help company in increasing the sale of the company as well. People: Aldi will be providing the training to the employee in the organization to improve the skill set possess by them to overcome the different difficulty faced by them in the organization. Generally organization will look to hire the employee with multiple skill set in the organization. Reason behind the same it will help company in saving recruitment cost of the company. Organization will also pay good sort of wages to the employee in the organization, so that they feel motivated in the organization to carry out different operation of the business. Physical Evidence:Aldi will be promoting the campaign of the company in the name and brand logo of the Company which is already being register with trademark agency. This will eventually help consumer in identifying the product of the company and also they will find it easy to distinguish between the product of the Aldi and other company. This will help company in achieving the brand awareness and sales objective of the business in long run. 6
Proposal to enhance customer service level There are many different ways through which organization can improve the level of customer service in the campaign “Express Our-self”. As customer service level is one of the biggest factor behind the success or failure of campaign in an organization.Some ways through which organization can improve level of customer service in the market are as follows: Training about market research: It is one of the best way through which Aldi can improve the level of customer service in an organization(Wilson and et.al., 2016). In this organization has to make sure that they used to provide good training to the employee in the organization about the way they can conduct the market research in the market. This will help the organization in understanding the need and wants of different customer in the market and on the basis of the same organization can plan different activity in such a way that it help organization in satisfying the need of the customer proficiently in an market. This will eventually help customer in getting what they want from the market. This will eventually help the company in improving the level of customer service level from organizational end. Better connectivity: It is another way through which organization can improve the level of customer service in the market. For this organization has to make sure that they are using both direct and indirect channel to distribute the product of the company in the market. This will eventually improves the level of customer service in the market. As customer of the firm will find it easy to get the product of the company at a go in the market(Xu and et.al.,2017). This will eventually help the company in enhancing the customer service which is provided by the company. This will somewhat impact the profit margin of the company in the long run of the business but will help the company in enhancing level of customer service in an organization. Aldi can join hands with the other small retailer in the market to sell the product of the company in the market. This will help the organization in getting good connectivity in the market to improve the customer service level in the organization. Product Variant: It is another way through which organization can improve the level of customer service in the organization. In this organization has to make sure that they used to offer the good amount of and good variant of product in the organization. This will eventually help the company in improving the level of customer satisfaction in the organization, as all the employee in the organization always looks to have a different variety of the product to satisfy need in the market. Reason behind the same is that product is the only element which used to represent the 7
offering of the company in the market. So providing good variant of the product in the market will eventually help the company in improving the level of the customer service for the Aldi. Value:Offeringgoodvariantoftheproductisnotenoughfortheorganization. Organization also has to make sure that they used to offer the value to the customer in the market. As all the customer always look to have a quality of the product in the market but at the same time at a price they can afford to buy the product of the company. Promotion: It is another way through which organization can improve the level of customer service in an organization. In this organization has to plan the different promotional activity of the business in such a way that it help company in communicating clear vision and mission of the company in the market(Cook, 2017). This will help company in getting good amount of trust from the customer side and also customer will find it easy to understand the different offering of the company in better way. This will help the company in improving the level of customer service level in the market. As customer are more clear about the product they are looking to consume in the market. Communication: This is the another way through which organization can enhance the level of customer service level in the organization. In this organization has to make the different decision in the organization to fix a good amount of communication with the customer in the organization. This will help the organization in getting better idea of the customer mind and also it will help the organization in building good trust with the customer. This will pass on the message to the customer that organization used to care about their need and wants in the market and used to plan different activity accordingly in the organization. CONCLUSION Above report summarized that organization is doing well in the market but in some area regarding expansion and profit margin company is lacking behind. To overcome the same report hassummarized the objective of organization and different action through which organization can overcome the same in the market. 8
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REFERENCES Books and Journal Gottfried, O amd et.al., 2018. SWOT-AHP-TOWS analysis of private investment behavior in the Chinese biogas sector.Journal of Cleaner Production.184.pp.632-647. Kulshrestha, S. and Puri, P., 2017. Tows Analysis for Strategic Choice of Business Opportunity andSustainableGrowthofSmallBusinesses.PACIFICBUSINESSREVIEW INTERNATIONAL.10(5). pp.144-152. Kowalik, K. and Klimecka-Tatar, D., 2017. SWOT-TOWS analysis as a planning tool of process improvement based on PDCA cycle in service enterprise.Zeszyty Naukowe. Quality. Production. Improvement. Datta, H., Ailawadi, K. L. and Van Heerde, H.J., 2017. How well does consumer-based brand equity align with sales-based brand equity and marketing-mix response?.Journal of Marketing.81(3). pp.1-20. Blut, M., Teller, C. and Floh, A., 2018. Testing retail marketing-mix effects on patronage: A meta-analysis.Journal of Retailing.94(2). pp.113-135. Wu, Y. L. and Li, E. Y., 2018. Marketing mix, customer value, and customer loyalty in social commerce.Internet Research. Wilson and et.al., 2016.Services marketing: Integrating customer focus across the firm. Xu, A and et.al.,2017, May. A new chatbot for customer service on social media. In Proceedings of the 2017 CHI Conference on Human Factors in Computing Systems(pp. 3506-3510). Cook, S., 2017.Measuring customer service effectiveness. Routledge. ONLINE MarketingMix.2018[ONLINE].Availablethrough: <https://economictimes.indiatimes.com/definition/marketing-mix>. 9