Marketing Management: ALDI Company Case Study

This report is based on the case study of ALDI Company in respect to the marketing management. It includes TOWS analysis, marketing objectives, marketing mix plan, and strategies to improve customer service levels.

MARKETING
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TOWS Analysis of ALDI Company............................................................................................3
Marketing Objectives...................................................................................................................7
Marketing Mix Plan.....................................................................................................................8
Strategies to Improve Customer Service Levels........................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing management is defined as a process or an idea to target customer’s with
creative ideas and thought’s (Jibai, Alaaraj and Issa, 2018). Marketing management involve
creating, delivering and managing an idea of communication related to company’s product and
services to all potential customer’s of company. This report is based on the case study of ALDI
Company in respect to the marketing management. ALDI Company was established back in the
year 1946. Company operate its operations in retail sector. Karl and Theo Albrecht was the two
founder of the ALDI Company. Operations of company cater global services at more than 11000
locations worldwide. Henceforth, this report will project marketing audit of ALDI Company with
the support of TOWS analytical tool. Emphasis of this report will also on the suitable marketing
objectives in respect to the marketing campaign ‘Express Ourselves’ run by ALDI Company.
Marketing mix plan will also project for the 12 months of period. Furthermore, this report will
also analyse suitable strategies to improve the customer services of ALDI Company.
MAIN BODY
TOWS Analysis of ALDI Company
Internal analysis is defined as addressing different internal aspects of the corporate
organisation such as different strengths, weaknesses, opportunities and threats that enables
company management to achieve all objectives. In order to conduct marketing audit TOWS
analysis play crucial role.
TOWS Matrix External Opportunities (O)
 Market development
 Product development
 Government green
drive
 Brand repositioning
External Threat (T)
 Competition
 Increasing trend of
isolation
Internal Strength (S)
 Pricing
SO
 Effective pricing
strategies can support
ST
 Affordable pricing
strategy can cut the

 Diversified product
range
the market
development
opportunity.
 Entering into new
market with
diversified product
range.
 Give effective offers
to contractors
involved in grrn drive
initiative.
market competition
for company.
 Diversified product
range ad pricing can
support company’s
growth in isolation
period.
Internal Weakness (W)
 Poor employee
satisfaction
 Ineffective
penetration in upper
class
WO
 Brand repositioning
can improve
company’s presence
in upper class
category people.
 Improving
satisfaction of
employee will
address the product
development strategy.
WT
 Improving employee
satisfaction in order
to achieve high
efficiency to meet the
cusrtomer
expectation.
 Brand projection
based on the upper
class society will
improve the company
presence in upper
class society.
Threat of ALDI Company

Management of ALDI Company needs to face the following threats in order to operate
business operations.
Competition in market: Retail sector is considered as among the major competitive sector in
the business environment. Competition has been a huge threat for the ALDI Company as it
directly affect the sustainability and growth potential of company in the retail market across the
globe. Company management is facing competition from all the big corporate houses such as
ASDA, Marks and Spencer, Wall Mart and other big houses associated with the retail sector
(Wojciechowski and Hadas, 2018). Apart from big competitors company also need to compete
with local traders such as grocery stores, departmental stores all around the world. All the
competition company face directly restricts the sales turnover of the ALDI Company.
Increasing trend of isolation: Business environment is consists with unpredictability as the
market situation fluctuates all the times. In recent time isolations has also witnessed in
economies like America. Isolation has also witnessed recently due to corona virus that has
restricted the sales of the company not just in international market but also at the regional level.
Isolation has been a huge threat for all the corporate houses as it directly affects the purchasing
capacity of all the customers in society.
Opportunities of ALDI Company
ALDI Company has the following business development opportunities.
Market development opportunity: ALDI Company carry the huge opportunity for expanding
the current targeted market by opening new business outlets at new locations in retail sector.
Market development is consisted as the traditional approach to expand the current market share
of the company by catering new potential buyers by opening new outlets of company. Big brands
like ALDI Company also carry the goodwill that supports company to attract customers even in
the new locations by offering effective services and products.
Product development opportunity: Management of ALDI Company also carry the product
development opportunity. Product development opportunity aims to launch more retail products
in all existing markets company cater currently (Černý, Vaněk and Hubáček, 2018). Launching

new products will enables company management to expand the market share in all of its existing
markets.
Government green drive: Government in UK has initiated the green drive campaign that has
opened the business opportunities for the retail companies like ALDI to sale its products to all
federal government contractors. This is an effective market opportunity that can support the
expected growth rate of company.
Brand Repositioning: Repositioning is also an effective strategical tool company can utilise to
expand the growth potential of company. Company management can repositions its brand image
as an affordable brand to remove the existing brand image of cheap brand. Repositioning the
brand image will boost the existing sales revenue of the company in all of its current retail
market.
Weakness of ALDI Company
Following weaknesses can be associated with the ALDI Company.
Low margins: Retail outlets are consisted with low margin rates. Low margins directly reduce
the profitability of the company. Apart from effective sales turnover due to low margins
companies could not get able to improve the growth potential due to limited profitability share.
Poor employee satisfaction: ALDI Company is not known for its employee satisfaction. Low
employee satisfaction rate also impact over the sustainability of human resources in the
organisation. It also put negative effect on the efficiency of company’s employee’s.
Ineffective penetration in upper class: ALDI Company do not consist an effective brand image
in front of the high income group people in the society (Dhakal, Karki and Shrestha, 2019).
Brand image play crucial role in improving growth potential of company and due to ineffective
brand image company do not able to attract the upper class society efficiently.
Strengths of ALDI Company
ALDI Company consists with the following strengths.

Pricing: Pricing is consisted as the major strengths ALDI Company comprises with. Company
has projected itself as the discount store that enables customers to procure products at the
affordable price range. Company also cater effective discounts on some specific occasions to
expand the sales potential of company.
Diversified products range: ALDI Company caters with diversified product range that also
enables customers to meet the needs effectively. Diversified products choices also improve the
sales potential of company in target market.
Effective expansion process: The company has very effective expansion process, because
currently it has lots of supermarkets and stores in different countries. Top-level management of
company is still working on searching new market segment to more expand its business
operation in international retail industry.
Marketing Objectives
The marketing manager of company has decided to achieve three major marketing
objectives from this “Express Ourselves” marketing campaign. These three marketing objectives
has been discussed below;
To achieve large customer base through digital marketing: Currently marketing team of the
company has great opportunity achieve large customer base by implementing digital marketing
strategies in their existing marketing campaign (Ansari and Riasi, 2016). Nowadays, many other
companies or businesses are planning to gain huge advantage from this strategy of marketing. It
is too excellent strategy, because a company easily influence people through this. There are
social media marketing, affiliate marketing, web marketing etc. some major techniques within
digital marketing strategy. According to this strategy, marketing manager of should completely
be active on their social media accounts or handles like; Facebook, Instagram, Twitter etc. These
all social media platforms will give chance to company for promoting their products and services
at the large scale. In this case, marketing team should post some fancy video and image ads on
these platforms. This step will really provide a large customer base to company, because most
people are day or night using different social media platform. That’s why the company has
opportunity influence people at the large scale to sell own products and services in retail sector.

To increase profit by 10%: In “Expressing Ourselves” marketing campaign, the marketing
team will definitely use various productive marketing tactics and techniques. The company has
full opportunity to increase profit by 10% in new market segments through this marketing
campaign. All members of marketing team should try to build an effective relationship with
people in new market, because this factors always put positive impression on people. Existing
retail companies can give tough challenge to company in this new market segment, but if team
will use modern and new techniques and tactics in their campaign, then it will gain positive
results. The marketing manager always need to take some productive decisions to deal with
different situations and uncertainty. Reason is, many times uncertainty can negatively affect
existing marketing campaign. That’s why pre-panning and decision-making also plays great role
in each marketing campaign. Each business or company always faces many challenge when it
runs marketing campaign in any market new market (Varma and et.al., 2017). That’s why
marketing manager of company should hire some skilled and talented markers in their marketing
team. These highly skilled and talented employees or marketers will help to company for
developing some modern marketing techniques. These some steps of manager will contribute in
gaining increased profit in new market segments through this marketing campaign.
To achieve large market share: This is another objective of ALDI’s marketing team. The
marketing manager has decided to gain large market share in the retail industry from this
marketing campaign. This campaign mainly has included various innovative techniques which
will help to company to beat their competitors in retail industry. Currently there is very high
completion in retail industry. Many new entrants are coming in this sector day by day, so it is
necessary task too the company to gain or achieve very huge competitive advantage in this
particular industry. Team need to complete market research task in proper manner to achieve this
objective in decided time period. There is market research is another major function of the
marketing team, in which company is able to achieve each information of their competitors
through this function of marketing team. Currently many competitor retail companies of ALDI
are also taking many steps towards gaining large market share in retail industry. That’s why it is
necessary is to the company to make or develop some modern and effective marketing
techniques to beat these competitors in international retail industry. When marketing team will
use effective marketing techniques or tactics in this campaign, then it can easily achieve this
objective.

Marketing Mix Plan
The marketing team of company should consider this marketing mix plan in their
marketing campaign, because this plan includes a very productive marketing strategy called 7Ps
of marketing mix (Bokek-Cohen, 2016). This strategy mainly has included seven major elements
which will guide to marketing manager in their daily operations. There is product, price, place,
promotion, people, process, and physical evidence are those seven elements under 7Ps of
marketing mix strategy. These all elements of this strategy has been discussed below;
Product: The top-level management of ALDI has decided to launch chocolate cake product in
different market segments. It has decided to launch this product in both market segments, like;
existing and new. The company has decided to provide this product in its each authorised store
and supermarket. Upper management has many expectations from this product, because most
people in European countries are really like to buy this product. That’s why company has full
opportunity to gain huge profit through this product. It has focuses on providing this chocolate
cake product in proper quality as well, because top-level management of company completely
understand that, if company provide quality products to customers, then it will able to achieve
huge profit in retail industry.
Price: The top-level management should give the first priority to favourable pricing (Malshe and
Al-Khatib, 2017). It means, the company need to provide this product on cheap price to gain
effective results in the different market segments. It is necessary to company for beating existing
competitors in retail industry. Currently various price management strategies are available in
market which help to the company for setting prices of their products and services. For example;
competitive pricing strategy, it is a strategy which will support to ALDI to set a favourable price
of their that product, which it has planned to launch in different market segments. This is the
main step within this marketing mix plan which can contribute in company to attract lots of
customers towards brand.
Place: The company has decided to launch this product in some existing and in some new
market segments. There are existing market segments of company are Germany, United
Kingdom, Australia, United States, Belgium, Denmark, Austria etc. On the other side, new
market segments of company Iceland, Norway etc. Currently this company has very large market
share in existing markets. Top-level management of company has said, if company has

succeeded in earning huge profit from the product in these decided market segments, then its
marketing team will start to run their marketing campaigns in Asian market places (Srivastava
and Vul, 2017). This step under marketing mix plan will give opportunity is company for more
expanding their business operations in different market places.
Promotion: Promotion is another major element in this marketing mix plan. The company is able
to promote their products and services at the large scale though this step. Reason is, during
product promotion process, the marketing team of company will use different productive
marketing strategies in this process. Then, company can easily aware people about its new
product in various markets. In these promotional activities, the marketing team should inform
people about each feature of its product to customers. It is too necessary task to team to gain
attention of lots of people towards brand. Currently marketing team is able to use various
innovative marketing techniques in their product promotion process, like; social media
marketing, sponsorship, affiliate marketing, television advertising etc. These all marketing tools
can help to company for completing its promotion process in productive manner.
People: Without this element of marketing mix, the marketing team of company can’t achieve all
targets in decided time period (Iaia and et.al., 2017). Currently this company has an effective
workforce which day or night working in daily operations of ALDI. Top-level management of
company always takes various steps to provide specific training to their people or employees.
Through training, existing employees can easily improve or develop their own skills and talent in
workplace. On the other side, employees are also only people who always face many customers
in company’s stores and supermarkets. In this case, these employees play great role in increasing
level of its customer services.
Process: Process element within 7Ps of marketing mix is always guiding to companies or
businesses to for maintain distribution or supply chain in proper manner. According to process
step, top-level management of company should create a specific distribution channel to deliver
its product to their customers in systematic way. It is the only way to company for providing its
product in the fast manner to people of different market segment. The concept of process step
says each company should properly supervise their all operational processes. In this case, if top-
level management of ALDI will not supervise their all process in proper manner including

supply chain, then company can face many challenges in retail industry. That’s why this another
major element in this marketing mix plan.
Physical evidence: Physical evidence step of this marketing plan will support to company for
building an effective relationship with their customers (Jackson, 2018). According to this
strategy, the management of company should improve communication skills of their employees.
Reason is, when a customer wants to by a product or service, then it decides to go to any
supermarket or stores. In this case, if existing staff or employees of a store effectively interact
with customers, then customers feel valued by the company of that stores. That’s why this is
strategy is very helpful to the company for maintaining an effective relationship with their
customers. On the other side, a staff or employee of ALDI is always responsible to inform each
feature of that product customers, when they visit in its supermarkets or stores. A customer is
always has right to know about product in the market, so this step helps to company for
informing them each feature of product.
Strategies to Improve Customer Service Levels
Currently there are various productive strategies available to company. Top-level
management of ALDI can easily increase or improve its levels of customer service. Under
“Expressing Ourselves” marketing campaign, the company is highly required to improve these
levels to provide full satisfaction to their customers. It is too necessary to this company to protect
its core business in retail industry (Ahmadi, 2018). Some major strategies for improving existing
levels of customer service has been discussed below;
Provide feedback facility: The upper management of company should take some productive
decisions for providing feedback facility to their customer. On the basis of this strategy, the
company nee to provide a feedback form to their customers through different platforms, like;
social media, office website, etc. Then people or customers will able to share their point of view
about company’s products and services on these platforms. The company is able to provide a
feedback form to customers by offline sources too. For example; company can provide a paper to
customers, where it need to ask some questions about quality of own products and services from
customers. The company can improve quality of their products and services also through this
strategy. Reason is, customers are always able to give their opinions on different products and
services of company through feedback form, so at the end the company will able to produce their

products and services on the basis of customers’ opinions. That’s why this strategy will help to
company for improving existing levels of customer service.
24*7 Customer care services: This is the most important strategy to a business or company to
increase or improve levels of customer service (Ozuem and Azemi, 2017). Currently the
company is already providing this 24*7 customer care services to their customers, but not in an
effective manner. In this case, the top-level management should take some productive steps
towards improving their customer care services. If company has successfully improved these
services, then their customers can easily register their complaints through these customer care
services. The company necessarily need to develop these services to improve their levels of
customer service.
Quality products: Most people in the European countries are completely literate, they ready to
pay any cost for buying quality products and services. In this case, excellent quality of products
and services plays great role in increasing levels of customer service. Currently each person
wants to buy quality products and services, so company need to provide them the best quality
products. It is really productive strategy to increase or improve the existing levels of customer
services (Ismail, 2018). When a company or business provides quality products to customers,
then their customers have become full satisfied with that company. On the other hand, if once
customers become satisfied, then company’s levels of customer service will automatically
improve. That’s why the ALDI should follow this strategy to improve their customer service
levels.
Quick response: Quick response is another major strategy to the company for improving its
levels of customer service. Most customers are always like to visit in those supermarkets and
stores where existing staff or employees give response in few seconds. The top-level
management of company should provide a specific training to their employees. In training,
management need to inform actual value of quick and fast response to their employees. At the
end, employees will able to give quick response to customers in stores and supermarkets (Roy,
2018). That’s why this strategy is also contribute in improving company’s levels of customer
service.

CONCLUSION
It can be concluded that TOWS analysis is very helpful to the company for knowing their
major factors called strengths, weaknesses, opportunities and threats. Top-level management of
company can easily develop various innovative strategies by knowing these factors. Three
marketing objectives of company also has mentioned above, which this company is able to
achieve in by using different techniques. An effective marketing mix plan also has discussed
above which will provide some specific ways to company for increasing their existing profit
ratio. On the other hand, some productive strategies are also available for ALDI which will
support it to increase or improve its levels of customer service. The company has full opportunity
to gain large customer base through its “Expressing Ourselves” marketing campaign.

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