Marketing Management: Strategies for Aldi

This document discusses marketing management strategies for Aldi, a global retail organization. It covers topics such as TOWS analysis, marketing objectives, and marketing mix plan. The document also provides proposals for improving customer service levels.

Marketing Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Marketing TOWS in regards to Aldi and marketing audits in doing so......................................1
Three Marketing objectives for marketing campaign of “Expressing Ourselves”......................4
Marketing mix plan which is to be undertaken for achieving objectives over the period of 12
months..........................................................................................................................................6
Proposals related to the ways Aldi could improve customer service levels as part of the
marketing campaign...................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing management is considered as combination of all processes and techniques
which is used to develop and implement the marketing agenda. Marketing is important at every
place which helps to influence people and encourage them to buy products and services
accordingly. If a organisation is going to produce something new then it needed those activities
that inform people and increase the sale and profitability (Baker, 2016). With effective actions
and marketing activity company launches their offers, products, current products, develop
transportation and increase selling activity that can help to increase profitability. To understand
about marketing management, the selected organisation is Aldi that was owned by German
family and it execute practices in retail industry. It has over 10000 stores in 20 countries from
where people buy products at retail prices. This organisation have effective management plan
that uses to run intensive campaign with the name of “Expressing Ourselves” will start on June
01, and will last till July 30, 2021. Different topics are covered in this report such as
construction of marketing TOWS for Aldi, marketing objectives, marketing plan and proposals
to improve the customer services level.
MAIN BODY
Marketing TOWS in regards to Aldi and marketing audits in doing so
Marketing is considered as essential element which is important for running all activities
efficiently that helps to make higher profits and productivity. In business environment, it is
important for organisations to have strategic plans and objectives so plans can be formulated
according and run a business continuously. For this, analysis of environment and organisation
needed that helps to understand what need to do and what are action can be taken to improve the
organisational productivity. TOWS analysis is considered as a tool which is used by organisation
to know the real value and get suggestions to make planning further. TOWS analysis is a
matching internal organisational matrix that states strength, weakness, opportunities and threats
to an external environment. Such plans are pursued by company for the purpose of increasing
profitability by improving quality and profitability (Calder, Malthouse and Maslowska, 2016).
Market audit is considered as a comprehensive, systematic and evaluation method which is used
to analyse the market environment and encourages customers effectively. In Aldi organisation,
marketing manager are responsible to conduct market audit and get how it can improve its
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productivity and supply chain. With the help of this managers are able to find out a better
solution that can help to increase productivity. In this, manager evaluates, monitor and control
the marketing activities so threats and weakness can be converted in to strength. The internal
capabilities of Aldi organisation are defined as:
Strength of Aldi
 This is large size organisation that has wider size of product portfolio and
uniqueness and innovation characteristics.
 Such organisation is having global presence that uses social media and other sites.
 Following low cost structure and getting ides to provide low cost products with
better quality of products and services.
Weakness of Aldi
 In this super market is having huge amount of employee turnover due to
manager's pressure and changing continuous basis (Guenzi, P. and Storbacka, K.,
2015).
 It thrives low level of profit and mainly depends on sales of products and services.
 In market, there are many competitors of Aldi which are creating low
productivity.
 Such organisation selects locations to establish shopping centres which are
surrounded by low and medium income groups.
 Using discounted policy that may reduce profitability.
Opportunities of Aldi
 Strong command on people's demand and needs that help to become favourite
 Up gradation of existing technology for automating and increasing operation
process which helps to increase working capacity by reducing manual working.
 Continuously increasing population and customer base that is great opportunity
for organisation.
 Providing products and services at retail prices that attracts customers in wider
range effectively.
Threats of Aldi
 Innovation and development of competitors of Aldi that is creating major threat
for organisation and reduces profitability.
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 Changes in choices, taste, culture, tradition of people that create a demand of
latest product and services, be a threat for organisation.
 Instability in tax rates and government regulations that can be a threat for
organisation.
The TWOS analysis of Aldi organisation and market audits are as defined:
TWOS analysis is considered as a tool which is used to generate, distinguish and select
strategies for the future period, helps to increase effectiveness. The manager of Aldi conducts
such analysis that helps to run all functions effectively and complete the goals in certain period
of time. This is used to gain the information about how to prepare a marketing plan and will
execute them effectively so goals can be attain efficiently (Homburg Jozić, and Kuehnl, 2017).
The explanation about TWOS strategies are defined below as:
Illustration 1: TOWS Analysis, 2020
Source: TOWS Analysis, 2020
Strength/ Opportunities – This is effective strategy which is used by organisation to
increase the productivity and profitability by getting opportunities in relation to business. In this,
managers are responsible to utilises the strength of company by exploiting market opportunities
via executing market audit appropriately. This can be said as “Maxi – Maxi” strategy where Aldi
have high level of potentials and capabilities to run a business. This is used by selected
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organisation by considering environmental factor in order to grab opportunities and increasing
internal strength.
Weakness/ Opportunity – This is known as Mini – Maxi strategy in which managers
focuses on mitigation of weakness and exploitation of opportunities. This helps to grab the
opportunities and increase profitability. In Aldi, managers use this strategy to grab the
opportunity by bringing automation in operations and update technology effectively that satisfies
the customers.
Strength/ Threat: This strategy is said to an Maxi -Mini strategy which is used by
organisation to reduce the threats and increase strengths. In context to Aldi, managers focus on
this strategy and bring new ideas in their organisation that states how it can enhance its loyalty
by dominating rivals. This helps to avoid the competition and strengthen market share (Guenzi,
P. and Storbacka, K., 2015).
Weakness/ Threat: This is considered as Mini – Mini strategy which is used by
organisation to use weakness over threats. In this, the marketing manager of Aldi organisation
should provide training sessions which can reduce the staff turn over and technological effect. To
improving the development and motivation there is need to use new technology and leading
positions that help to capture market.
Three Marketing objectives for marketing campaign of “Expressing Ourselves”.
On the basis of findings, it has been overviewed that Aldi Company has significantly
expanded its arena by diversifying its strengths to operate effectively within its periphery. Along
with that to attain the target there exist certain weaknesses which has restricted the functioning of
entity in terms to attain predetermined determinates effectively. Some strengths of company
includes strong distribution network to thoroughly reach out wide geographical market in terms
to reach out wide potential market. Efforts are taken to maximise the level of satisfaction in
terms to transmit organisational offerings within stipulated time period. In addition to that, firm
comprises of low cost structure which is used to deliver offerings at nominal price range to
appeal the interest of customer. This technique helps to deliver high values to customer and
retain their interest. Such type of position assists Asda company to maintain unique positioning
and distinct its operations from other rivalries present in the market. On other side, some
weaknesses associated with the functioning of Aldi company includes high absenteeism and
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turnover rate due to the adoption of various changes. As company has to bear immense
expenditure in the training and development program which affect the profitability margin
offirmas well as performance of the employees. Along with that limited investment is made in
the technology as it is not easy for the manager of Aldi Company to constantly update new
technology as it involves huge effort, time as well as funds. So after considering these findings
the manager has set up some objectives for the marketing campaign which is “expressing
ourselves” that is designed to resolve the problems of company within 12 months.
 To minimise the chances of absenteeism rate by at least 25% within 7 month for which
proficient training and development sessions are provided to the existing employees where
they will get opportunity to update their knowledge and again advance talent as well as
competencies in order to maintain the profit (Keller and Kotler, 2015).
 To enhance overall profitability or the footfall of store by attest 25% within approximately 4
months by improving quality of product, effectively run promoting campaign and mitigate
the unnecessary expenditure as well as activities carried out by various platforms.
 To improve productivity of an organization by about 20%within upcoming 5 months for
which adequate amount of investment is done to install new technology that can improve the
production process of company. It further, helps to enhance the chances of job satisfaction in
terms to upgrade the quality of commodities as well as deliver viable information on time
(Mariani, Di Felice and Mura, 2016).
As Aldi company in eth subsequent years have maintained strong image by offer high values
to customer at discounted rates. This led the manager of target to target mass market which
perhaps increases profitability level by 15% within a specific tenure. This determines that the
objectives of an organisation are specificity, measurability, achievability, realistic which needs to
be accomplished within specific time bound. Preparation and application of all mentioned
objectives are incorporated by management team of the Aldi company to sustain build effective
customer base that are less likely to shift in any other brand. Moreover, promotional platforms
are designed to enhance market awareness which further sustain the sales of company by
effective designing marketing campaign. As the entity comprises of strong financial portfolio
which helps to offer effective training programme that groom the personality of staff and
generate immense amount of confidence which can motivate them perform their responsibility
with full zeal and interest. It can further lower down the absenteeism rate of company as it attract
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potential employees to become valuable asset of company. Prevailing marketing campaign is
designed between May 01, 2020 to April 30, 2021 to attract potential talents that have immense
knowledge in diverse areas like sales, marketing, research, administration and technology to
significantly run campaign and promptly accomplishing all overall objectives.
Marketing mix plan which is to be undertaken for achieving objectives over the period of 12
months.
Marketing mix plan refers to the imperative tool that is used by business in terms to
effectively building as well as executes marketing strategy in desirable manner. Marketing mix
comprises of various elements that help an organisation to effectively cope up within dynamic as
well as competing market. It comprises of mixture of ingredients which is used by company in
terms to carry out particular within specific market (Mehmetand Clarke, 2016). Herein, Aldi the
internal representatives like marketing team uses marketing mix tool in terms to effectively
understanding prevailing demands of customer and leverage eth advantage of preparing
marketing plan significantly. It comprises of elements like product, place, process, price, people,
promotion and physical evidence that help the manager to attain objectives which are determined
by the managers of an entity. The preparation of marketing mix plan for Aldi Company is stated
below:
Marketing mix
plan elements
Meaning In context to Aldi
Product Products or services are basically
the tangible or intangible
commodities which are the items
distributed by company in terms to
maintain preferable amount of sales
as well as profitability of company.
Each product has its own product
life cycle and the company carry
out immense functioning in order to
face challenges and maintain
growth phase of the commodities.
Aldi which is the part of the retail
industry offers diverse varieties of
products within one roof; currently
the company has around 1200
products which includes shopping
material, baby products, eatable
items, groceries utility items and so
on. It basically satisfies the
requirement of diverse types of
customers.
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Price Price is actually the amount which
needs to be paid by the user in
exchange of commodities which
they take from particular entity. It
signifies value of the commodities
as well as brand which needs to
psychologically satisfy customer
because it can only instigate them
to make final purchase decision
(Möller, and Halinen, A., 2018).
The manager of Aldi company have
effectively set competitive pricing
strategies due to the presence of wide
competition the discounted price
usually attract the people and help to
get supreme quality of product from
different sections. It probably attracts
the people belonging to different
classes including higher, middle as
well as lower class people of society.
Place Place is the geographical location
where the products are offered to
the customer. The vicinity needs to
be effectively designed in order to
get the white amount of the
customer and carry out the
functioning of business. Along with
that suitable channels need to be
pre determined by the manager to
carry out wholesale business, retail
business, maintain physical store as
well as carry out online business
successfully.
Aldi company being supermarket has
spread operation all over the globe
due to which it is recognised as one of
the largest companies in terms of
retail industry, it has approximately
10,000 stores with a diversified into
20 different nations. The company
focuses to built the brick and mortar
outlet and encourage strong presence
through online media to diversify
their operation within each and every
corner of their area.
Promotion Promotion is the communication
aspect which is designed for entire
market function to deliver vital
information about the offering to
the customer. It even involves
awareness about special offer; carry
Aldi company cover the mass market
through their strong promotional
technology for this it run various
marketing campaigns specially
through social media platform in
order to gain result at real-time. To
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out sales promotion to indulge
significant relationship with the
customer. There exist various
platforms to carry out the
promotion but the purpose of all
this platform is too widespread
detail information amongst
customer.
carry out market campaign like
“expressing ourselves” the manager
of company can use platform like
social media, print advertisement and
website of company to circulate all
the necessary articles.
Physical
evidence
Physical evidence refers to the
material elements that are reassure
consumer to carry out their sales
like it include the ambience, retail
merchandising and availability of
staff members that offer
convenience to customer and help
them to build memorable
experience.
The retail stores or the outlet of the
Aldi company includes physical
evidences like payment details, sitting
arrangements, standardization as well
as assistant of the staff. Along with
that formulation of online shopping
comprises of online merchandising
and user friendly website that help to
carry out purchasing conveniently.
People People are human elements that are
involved in carrying out
production, sales and as well as
delivery aspect by possessing
significant amount of qualification,
skill as well as ability which insure
wide amount of success.
Aldi company posses staff and
employees that are empowered
enough in terms to maintain the
atmosphere of an organisation by
effectively conversing with
customers, resolving their queries and
make enormous amount of efforts in
terms to attain the goodwill and
maximizes the chances of achieving
targets. It even include training
program that helps to retain the
existing employees by reenergize
them to attend the personal objective
significantly.
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Process Process reflects the sequence of the
activities which are designed from
the production till the delivery of
products. It helps to maintain the
smooth functioning of an
organisation and enhance the
satisfaction level of customer.
Some of the processes include
website User experience, time of
delivery, method of delivery,
customer support services and so
one (Skorobogatykh and et. al.,
2016).
Aldi company comprises of sheet
layout processes which enormously
help customer to easily find out the
commodities according to their
interest area as well as requirement.
The representative of company
maintains the huge quality of
products that are delivered at the
nominal prices. The huge quality
helps the customer to get required
products and avoid the chances of
shortage of inventory which finally
maximizes the profitability margin.
Proposals related to the ways Aldi could improve customer service levels as part of the
marketing campaign.
Proposals for the ways Aldi managers can improve customer service level as part of
“Express Ourselves” Marketing Campaign.
Customer service level is consider as system way which is used by organisation in order to
provide a satisfaction to customers. This is the percentage of event where products and
services are delivered according to customer needs and wants. It involves et of regulations
and strategies which helps to evaluate the performance of organisation. Aldi is a
supermarket chain in which managers are planning to run a intensive market campaign
with the name of “Expressing Ourselves” between the duration of 1 June 2020 to July 31,
2021. There are different ways through which a customer service can be improved by the
organisation:
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Level 1: Unacceptable – It is a customer services level which is related to bad services at
all level and it is unacceptable. To improve the customer service level, marketers needed to
adopt e-mail and online marketing strategy that will help to get feedback from customer's
side and make improvement in products accordingly.
Level 2: Basic – This states commodity and services which are mainly required by
customers and others. This is important for organisation to provide all basic needs with
good quality so products can be provide accordingly. In Aldi, managers needed to
understand the basic needs of people or customers then make plans to provide kind of
products so they feel good and customer service level can be improve.
Level 3 Supply chain: In this strategy the marketing manager of Aldi need to make plan
and system how their products can be reach up to customers so they can start to consume
and share their experience (Ying-Ping and Hu, 2016). Herein, managers of selected
organisation bring new technology and innovation in their supply process in upcoming
period so customer can get products easily and feel good.
Level 4 Trade mark: This is another important strategy which should be used by
organisation in order to improve the customer service level. In Aldi, organisation, manager
improve their customer service by getting trademark which helps to create brand image
and market share efficiently so productivity and profitability can be increase.
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CONCLUSION
From the above report it has been determine that marketing management is the process to
effectively implement significant amount of policies as well as strategies in terms to satisfy the
demand of customer. It involves preparation of definite programme that help an organisation to
effectively analyse external situation and according forecast situations in order to implement
predetermined business objectives. Application of TOWS analysis basically enables business
entity to overview strengths as well as opportunities in terms to develop the strategies and gain
immense amount of success. Moreover, marketing mix involve different elements that assist
company to analyse the situation and opt effective technique to significantly satisfy the demand
of customer. Therefore, efforts need to be taken in terms to improve the customer services by
effectively preparing marketing campaigns.
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REFERENCES
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