Marketing Management Process of ALDI: A Case Study

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This report discusses the marketing management process of ALDI, the largest supermarket chain in the UK. It includes the marketing TOWS, marketing audits, marketing objectives, marketing mix plan, and customer service improvement proposal.

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Abstract
This report includes the marketing management process if ALDI that is the largest
supermarket chain in UK and they serve the best practice to the customers by following different
strategies. This report includes the TOWS as to perform marketing audit and it is conducted by
the marketing consultant that provides the marketing campaign is as “ expressing Ourselves”.
The intensified marketing strategies will be developed in order to enhance the marketing
management of the company. It also covers the marketing mix plan that is developed to achieve
the set objectives of the company that is accomplished within the 12 months.
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Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Construct the marketing TOWS for ALDI, explaining the marketing audits.............................1
State and justify 3 marketing objectives that set for “ express ourselves” marketing campaign4
Outlines and examine the marketing mix plan that you propose in order to achieve these
objectives.....................................................................................................................................5
Provide proposal on how ALDI can improve their levels of customer service as a part of their
“ express ourselves” marketing campaign..................................................................................7
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Marketing management includes different planning, controlling, staffing, managing and
implementing of different strategies and tactics to satisfy the need and demand of the customers
in an easiest manner. Every individual business performs different strategies in order to generate
more profit thus they offers different products and services as per the requirements of the
customers (Armstrong, 2018). It is a discipline of an organisation that has a focus and
concentration of different activities that is performed in order to develop more sales and profit. It
helps the business to know about the several opportunities that is generated within the market
and provides accurate strategies to explore the market and converts that possibility into profitable
basis. This report includes the marketing management of ALDI that is the supermarket company
and a common brand two German families that works over 10,000 stores in 20 countries. It was
founded by Karl and Theo Albrecht in 1946 having a headquarter in Essen, Germany. ALDI is
an retain company that was founded in 10 July 1946 and that was splits into two parts in 1960
and renamed as Aldi Nord and Aldi Sud in 1962. ALDI deals with the diversified products as
like grocery and household essentials. ALDI has the subsidiaries named as Trader Joe's that is
the of Aldi Nord. ALDI is the common brand of two German family owned business that is
works over with 10,000 number of stores in 20 countries. The estimated turnover of the company
is approximately €50 Billion and it is founded by the two brothers and they took over the store
named as Essen that was their mother's store. ALDI Nord consist of different operations and it
includes 35 regional companies that works in 2500 number of stores in western, northern and
eastern part of the Germany. Whereas, ALDI Sud's operates their business in 32 regional
companies that is located in 16000 number of stores in western and southern part of the
Germany. ALDI Nord operates their business in Denmark, France, Portugal, Poland, Spain, the
Benelux countries whereas, ALDI Sud's operates their business in Ireland, Hungary, Great
Britain, Switzerland, China, Italy, Slovenia, Australia. There are different stores of ALDI that is
located in 11.234 number of stores and has measured the revenue of €53 Billion in 2010. They
have their own website named as aldi.com ALDI is the retail company that has the lowest price
among all the groceries leaders. The growth and success that has been measured by the company
is due to the contribution and the effective approaches that is used by the business in order to
attain the maximum market share. Due to the best management process ALDI is able to sale their
products with lower cost but manages their quality as well. ALDI always ensures that their
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products and services meets and covers the taste, quality and prices of the international market.
They also includes some of their farmers that provides the best and fresh fruits and vegetables
and it is more organic that is the major factor that attracts the large number of customers that
helps to develops more and more sales. This report includes the marketing TOWS of the
company that defines the marketing audits, marketing mix plan that helps to achieve objectives.
MAIN BODY
Construct the marketing TOWS for ALDI, explaining the marketing audits.
SWOT Analysis: It is an analysis that describes the internal strength and weaknesses of
the company that helps to gain high competitive advantage in effective manner. The SWOT
Analysis of ALDI is as follows as:
Strength ALDI has the strong distribution channel and also have a strong base of
suppliers that helps to maintain the supply chain and removes the bottlenecks
of the business. They have the strong brand portfolio that helps to maintain
consistency in the market.
Weaknesses The major weaknesses of ALDI is that they have to spend quite more in
technological advancement to develop the overall process in broader sense.
They also measure the limited success outside the business and have the gap
in the range of products that is offered by the company (Bagozzi, 2018).
Opportunities ALDI opens the new market for the customer as per the agreement with the
government and measures lower inflation rate that bring more stability in the
business.
Threat America trends has been shift towards the isolationism and it has negative
impact on the international sales and the new techniques that is developed by
their competitors. The new environmental regulation act of Paris
agreement(2016) is threat to some of the products of the company.
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PESTLE Analysis: It shows the macro-environmental factors that has direct impact on
the performance of the company and it is as defined below as:
( Source: What is pestle analysis. 2018)
Political Political status of the country is very much stable and ALDI follows all the
rules as like contract law, prohibit alcohol that all will be fulfilled by them.
The high taxation policies reduces the profit ratio of the company and trade
barriers also harms the company to maintain potential exports (Chang, 2018).
Economical ALDI takes a part to develop the economic values of the company as GDP
will be enhanced by the contribution of the company. Interest rate of the
company is high that provides support to the individual while investing.
Unemployment rate is high that creates more job and people work on lower
wage as well that decreases the cost of ALDI.
Social ALDI focus on demographic factors and target the women by providing them
make-up kit as and also promotes the products for the general public to gain
the advantage in niche market.
Technological ALDI needs to introduce more innovation as there competitors induces more
technological advancement and that has drastic effects thus company suffers
its more heavily.
Legal Company follows all the intellectual property law, distribution law, health and
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safety law and data protection law to gain profit in competitive edge.
Environmental ALDI manages the transportation of the finished goods to the raw material in
order to manage the environmental pollution. Company has contributed in the
endangerment of endangered species thus they face backlash from the public.
TOWS Analysis: It is a framework that interprets the assess, create, compare that all
based upon the different strategies that is adopted by the business. Where TOWS provides the
support to the company in order to match up their internal strength and external opportunities
that helps to develop the strategies called “ maxi-maxi” and enhances the working potential and
also formulates to make actionable tactics.
ALDI
STRENGTHS (S) WEAKNESSES (W)
ď‚· Strong distribution channel
ď‚· Diversification
ď‚· Skilled Workforce
ď‚· Strong Brand Image
ď‚· High priced Selling
OPPORTUNITIES (O) ď‚· Lower Inflation rate ď‚· Technological
Advancements
THREATS (T) ď‚· Unstable Political
Environment
ď‚· Decrease Economic
State
ď‚· Unfavourable
Regulations
Strengths-opportunities: ALDI has a strong distribution channel and have a strong base
of reliable suppliers that helps the company to overcome from the bottleneck of supply chains.
Whereas, ALDI doesn't work properly in financial factors and measure the limited success as
outside from the core business. Thus they manage their supply and become effective supplier
that helps to generate more finance (Chang, 2018).
Strengths- threat: In this company uses their strength to counter back the threats that is
developed in the market. ALDI has strong brand image and skilled workforce with diversified
product range. Whereas, the threat of the company are as unfavourable regulations and economic
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states that affects the brand image of the company. However. With the help of skilled labour
force companies tries to reduce the effect of threat and manage the modest regulation.
Weaknesses- opportunities: It defines the measure that is founded by the company in
order to measure its weaknesses and converts that into the opportunities. Technological
advancement that is adopted by the competitors is the biggest weaknesses of the company and
due to the high inflation rates company get the benefit while reducing the cost that attracts the
large customers base.
Weaknesses- threats: In this company reduces the aspects of weaknesses to counter back
the threats. ALDI has differ threats as like economic states and adverse effects of regulations.
Whereas, if they even try to reduce the price then also their performance get affected as because
of decrement in economic state.
State and justify 3 marketing objectives that set for “ express ourselves” marketing campaign
Marketing objectives helps the company to achieve its target in an effective manner and
helps to gain high competitive advantage for the longer period of time (Chernev, 2018). The
marketing consultant of ALDI has been asked for develop the 12 months campaign plan for
marketing named as “ express ourselves” and for that they have to develop certain objectives that
are as follows as:
ď‚· To enhance customer base by 25% within 6 months: To maintain the large customer base
it is mandatory for the company to provide the quality products to the customer on
continuous basis. While comparing it with the retail supermarkets it is needed that there
is continuous flow of goods and services within the market. The new campaign is
formulated by ALDI in order to enhance the base of customers within 6 months. This
target has been achieved when company performs different strategies to increase the total
revenues of the company. They also provides adequate knowledge to the employee for to
make an effective connections with the customers. It enhances the behaviour of the
customers by which they treat the customer with more calmness and resolve their issues
and queries with more softness.
ď‚· To develop more sales in the upcoming 12 months by 10%:
In this company tries to develop the sale on higher basis and make an positive
environment that helps to improvised the sale in particular period of time. ALDI spread more
awareness in the market about their different products and services by which customer could
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relate themselves with the company (Deepak, 2019). In order to achieve this aim company wants
to measure more growth and development. ALDI performs different function to achieve its
objectives in goals in an effective and efficient manner. As with the help of marketing campaign
detailed information about the products and services has been circulated in the market. As much
the people know about the different products of the company that develop much relatability and
connectivity in between the company and the customers. The strong relationship will be build up
that helps the company to develop more sales and profit within the upcoming 12 months.
ď‚· To increases the profit by 15% within the next 7 months:
The final objective that has been designed by the marketing consultant for the marketing
campaign is to increases the profit of the company that enhances the overall performance and
productivity of the business. For this ALDI uses more technological advancement with the usage
of digital platforms by which the large number of people get collected and target with the less
period of time (Ellram, 2019). By using this company try to generate more profit and higher
revenues as because ALDI controls and manages the large number of workforce that manages
and record the requirements and demand of the customers. It aid the performance of the company
as maximum people get to know about the offered products of the company and ALDI also able
to satisfy the need of the customers.
Outlines and examine the marketing mix plan that you propose in order to achieve these
objectives
Marketing mix is a tools that is used by the company in order to develop more sales by
analysing the required amount and quality that is demanded by the customers. It is the integration
of different functions that takes part while increasing the sales and profit of the company. There
are different components of marketing mix these as as place, price, product, promotion, people,
process and physical evidence. As AIDA has decided to process their business with the
intensified marketing campaigns with the tag-line of “Expressing Ourselves”. Thus the
management of ALDI performs marketing mix plan to attain their standardised objectives in an
effective manner. The marketing mix plan of ALDI is as defined follows as:
Marketing Mix Plan
Marketing mix
elements
Detailed analysis
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Product All the different items that is sold by the company to their customer are
considered as products. While scheming the overall process of marketing
campaigns the marketing consultant of ALDI ensures that customers will
always gets satisfied by the different products and services that is offered by
the company (Gregory, 2019). It is necessary for the company that people
must get use their products on continuous basis as it is the only reason behind
the success and growth of the company. If business wants to achieve the best
outcomes then they try to be perform all of their works and task in effective
manner. If company gains it s profit within the timely manner that it imparts
the long time success to the business. Market has a lot of different products
and it if company wants that there product get more profit in the market then
the always implies the innovation and creativity within the business.
Price It is the particular amount or rate that is charged by the company in return of
their products and services. The marketing campaign of ALDI that is
designed by the marketing consultant is most important for the company in
order to develop more sales. For this company performs pricing strategies in
which they offers their product with minimum price that attracts the large
customer base (Hua, 2019). Their are different techniques that is opted by the
company to dispersed more awareness in the targeted market about the
different offers and discounts that is served by the company to satisfy the
basic need of the company. ALDI uses competitive pricing strategies by
which they present their product with lower prices as compare to their
competitors or rivals like lidl, ASDA etc. In this company offers there
products with lower price as at the time of initials and then increases their
profit as per the increment in market share.
Place It defines the location that is chosen by the company and it is for to provide
more easiness to the customers by which they could easily reach to the stores
of the company. By considering this aspect company is able to open their
store in those places that is very much connected to the societies by which
people could easily get attracted towards the company. It provides more
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easiness to reach to the stores and if distance is very long then it disconnects
the connectivity between the company and the customers. Thus the centred
location of the supermarket help to develop more connectivity and larger
engagement.
Promotion It includes the different activities that is performed by the company to
promote their products and services on larger scale. It is the tactics of the
company that is applied to circulate more information in the market (Iankova,
2019). ALDI uses different methods of promotion like advertisement, sales
promotion, pamphlets, on time search etc. That all is performed by the
company to develop more sales by performing different activities to
improvised the sales and profit.
People It includes each and every individual that is connected with the company in
order to develop more sales and growth in the business. At the end of the day
customers are the one for whom the company perform all of their work.
ALDI understand and measures the requirement and demand of the
customers and then try to satisfy the need of the market by offering certain
products and services (Johnsen, 2018). Whereas, marketing consultant also
provides the concern about satisfying the need of employees and well as they
are the who relates with the customer and shares the values and beliefs of the
company in the market.
Process It is the overall process that is followed by the company in order operate their
different functions in an effective manner. The marketing strategies of ALDI
is formulated by marketing consultant in which operations will be performed
by making effective execution of all the resources. For this ALDI uses online
software's and computers will be used in order to record each and every
transactions of the company. Company also manage the bookings of the
customers and provides the better deliveries within the timely manner.
Physical
evidence
It is the designing or packaging of products and services that is served by the
company from their customers. As per to achieve higher advantage ALDI
designed their products and provides accurate shaping that grabs the attention
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of the customers. Company also collects the feedbacks from the customers
and then implies the changes as per the demand of the customers.
Provide proposal on how ALDI can improve their levels of customer service as a part of their “
express ourselves” marketing campaign.
It is very much important for all the business to ensures that marketing campaign will be
developed to improvised the level of customer services (Kotabe, 2020). Marketing consultant
designed the new campaign and proposed the proposal that is as defined below as:
Proposal
Strategies Details
Identifying needs
of customers
To improvise the satisfactory level of the customers ALDI need to take a
help of marketing campaign. It is very much necessary for the business to
identify the needs and demand of the customers as they are the one who
are the major factors that develops the sales and profit of the company. In
addition to this, ALDI performs different functions as from collecting the
feedbacks of the customers to analysing the change in market (Olson,
2018). It helps to develop more sales and profit as because the much
customer get know about the products and services of the company that
much they get attracted towards that and accept the services of the
company for the longer period of time. It is very much important for the
business to identify the need of customers and then fulfil that without
getting affected the quality of that. Thus it helps the company to achieve
high sales and more profit.
Taking timely
feedbacks
Feedbacks are the review of the customers that is been raised when
customer already measures and use the products of the company. It helps
a lot to the business because after that as per the need business changes its
operations and implements the certain change in their services. Thus
ALDI always takes the feedback from the customers as imparts the feeling
and positive connection between the company and customers and it also
generates the power of connectivity and belief that helps to maintain the
long term sustainability within the business. On the other hand marketing
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consultant also analyse that customers feedback are more important as it
implies the effectiveness of the company in the market. ALDI collects the
feedback from the targeted market and then performs different functions
to satisfy the need of the customers (Roberts, 2019). It bring more
satisfaction in the customers and their belief remains same and doesn't
change that helps to rendered the customers.
Staff training It is also very crucial for the company because at the end of the day
employees are the major aspects that balance each and every operations of
the company in an effective manner. If company wants to maintain
productivity that it is necessary that employees must be very much
modest and skilled that handles and manages every function in efficient
manner. While the marketing consultant has shown their concern towards
the employees and states that they must be get trained with the help of
certain training and development programs. By this ALDI is able to
manage their customers and all the function as from human resource,
marketing, financial in an sufficient manner.
Rewarding loyal
customers
These are those customers that remains with the company for the longer
period of time and always makes their presence in helps the company
while developing their sales and profit. The marketing consultant of ALDI
helps the company and states that they must provides rewards to their
loyal customers by which they always stick with the company (Sander,
2019). Company presents special rewards and bonus to their customers to
develop more sales.
Resolving all the
queries of
customers
It is the major function in which all the different queries, issues and
problems of the customers get resolved. ALDI ensures that customers get
better quality products in timely manner and their issues will be resolved
as much faster as possible. It brings the highest level of satisfaction in
between the customers that brings more comprehensive connection.
Paying attention
towards customer
It is also very much important in which company makes different steps to
build the strong customer relationship that improves the level of
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relationship
management
satisfaction. The higher authority of the ALDI performs customer
relationship management with the help of certain strategies. It further
helps the company to achieve its objective with more effectiveness.
Marketing consultant of ALDI performs all these functions to improves the satisfactory
level of the customers. Company is very much aware about the different aspects and change of
market in order to enhance the profit and net revenue of the company. This proposal will be used
to strengthen the large growth and customer base of the company.
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CONCLUSION
It has been concluded from the above report that marketing management is the overall
process that is used by the company to develop more and more sales and to enhance the
performance the company. The new designing of marketing campaigns is being introduced and
for this company conducts TOWS with the help of marketing audit. Furthermore, objectives of
the company will be achieved by formulation of marketing mix plan. In addition to this, different
ways to enhance the customer satisfaction as to express their campaign.
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REFERENCES
Books and Journals
Armstrong, G.M. And et. al., 2018. Marketing: an introduction. Pearson UK.
Bagozzi, R.P. And et. al., 2018. Marketing-Management. Walter de Gruyter GmbH & Co KG.
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.
Chang, Y., Wang, X. and Arnett, D.B., 2018. Enhancing firm performance: The role of brand
orientation in business-to-business marketing. Industrial Marketing Management. 72.
pp.17-25.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Deepak, R.K.A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
Ellram, L.M. and Murfield, M.L.U., 2019. Supply chain management in industrial marketing–
Relationships matter. Industrial Marketing Management. 79. pp.36-45.
Gregory, G.D., Ngo, L.V. and Karavdic, M., 2019. Developing e-commerce marketing
capabilities and efficiencies for enhanced performance in business-to-business export
ventures. Industrial Marketing Management. 78. pp.146-157.
Hua, H., 2019. Mobile marketing management: Case studies from successful practices. CRC
Press.
Iankova, S. and et. al., 2019. A comparison of social media marketing between B2B, B2C and
mixed business models. Industrial Marketing Management. 81. pp.169-179.
Johnsen, T.E., 2018. Purchasing and supply management in an industrial marketing perspective.
Industrial Marketing Management. 69. pp.91-97.
Kotabe, M.M., 2020. Global marketing management. John Wiley & Sons.
Olson, E.M. And et. al., 2018. The application of human resource management policies within
the marketing organization: The impact on business and marketing strategy
implementation. Industrial Marketing Management. 69. pp.62-73.
Roberts, J.H., Kayande, U. and Stremersch, S., 2019. From academic research to marketing
practice: Exploring the marketing science value chain. In How to Get Published in the
Best Marketing Journals. Edward Elgar Publishing.
Sander, M., 2019. Marketing-Management: Märkte, Marktforschung und Marktbearbeitung. Utb
GmbH.
ONLINE
What is pestle analysis. 2018. [Online] Available through :
<http://academicessayguide.blogspot.com/2018/04/what-is-pestle-analysis.html>.
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