Marketing Management Process of ALDI: A Case Study
Verified
Added on  2023/01/12
|16
|4533
|20
AI Summary
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.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Marketing Management
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Abstract Thisreport 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.
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
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 isthe 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 1
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
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: StrengthALDI 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. WeaknessesThe 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). OpportunitiesALDI 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. ThreatAmerica trends has been shift towards the isolationism and it has negative impact on the international sales and the new techniques that is developed by theircompetitors.ThenewenvironmentalregulationactofParis agreement(2016) is threat to some of the products of the company. 2
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) PoliticalPolitical 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). EconomicalALDI 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 highthat creates more job and people work on lower wage as well that decreases the cost of ALDI. SocialALDI 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. TechnologicalALDI needs to introduce more innovation as there competitors induces more technological advancement and that has drastic effects thus company suffers its more heavily. LegalCompany follows all the intellectual property law, distribution law, health and 3
safety law and data protection law to gain profit in competitive edge. EnvironmentalALDI 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) Strong distribution channel Diversification Skilled Workforce Strong Brand Image High priced Selling OPPORTUNITIES (O)Lower Inflation rateTechnological Advancements THREATS (T)UnstablePolitical Environment DecreaseEconomic State 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 4
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
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 ordertomeasureitsweaknessesandconvertsthatintotheopportunities.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: 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. To develop more sales in the upcoming 12 months by 10%: In thiscompany triesto developthe sale on higher basisand 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 5
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. 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 usingthis 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 intensifiedmarketingcampaignswiththetag-lineof“ExpressingOurselves”.Thusthe 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 6
ProductAll the differentitems that is sold by the company to their customer are considered as products. While schemingthe 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. PriceIt is the particular amount or rate that is charged by the company in return of theirproductsandservices.ThemarketingcampaignofALDIthatis 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. PlaceIt 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 7
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
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. PromotionIt 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 companytodevelopmoresalesbyperformingdifferentactivitiesto improvised the sales and profit. PeopleIt 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. ALDIunderstandandmeasurestherequirementanddemandofthe 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. ProcessIt 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 ofthe 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 8
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 StrategiesDetails Identifyingneeds 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 ofthe 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 oftime. It is very much important for the business to identifythe 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. Takingtimely 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 customersand 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 9
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 trainingIt 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 necessarythat 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 withthe 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. Rewardingloyal 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. Resolvingallthe queriesof 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. Payingattention towardscustomer It is also very much important in which company makes different steps to buildthestrongcustomerrelationshipthatimprovesthelevelof 10
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
relationship management satisfaction.ThehigherauthorityoftheALDIperformscustomer relationship management withthe 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. 11
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. 12
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.andKaravdic,M.,2019.Developinge-commercemarketing 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 themarketingorganization:Theimpactonbusinessandmarketingstrategy 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. InHow to Get Published in the Best Marketing Journals. Edward Elgar Publishing. Sander, M., 2019.Marketing-Management: Märkte, Marktforschung und Marktbearbeitung. Utb GmbH. ONLINE Whatispestleanalysis.2018.[Online]Availablethrough: <http://academicessayguide.blogspot.com/2018/04/what-is-pestle-analysis.html>. 13