Marketing Management: ALDI Marketing Audit and Objectives
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This report discusses the marketing audit and objectives of ALDI, including SWOT analysis, TOWS analysis, and marketing mix plan. It also explores how to improve customer service level.
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Contents INTRODUCTION...........................................................................................................................3 TASK...............................................................................................................................................3 Audit.......................................................................................................................................3 Marketing Audit.....................................................................................................................3 SWOT analysis of ALDI........................................................................................................4 TOWS analysis of ALDI........................................................................................................5 Marketing Objectives.............................................................................................................6 Marketing Mix plan................................................................................................................7 How to improve customer service level.................................................................................9 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................12
INTRODUCTION Marketingmanagementisdefinedasaprocedureofeffectiveplanning,organising,and implementing, pricing, promoting & distributing goods as well as achieve in market with an objective to fulfil customer requirements and to attain desired goals within stipulated time period. For the present report, ALDI is taken into considerationDeepak, R. K. A. and (Jeyakumar, 2019). It was founded by Karl and Theo Albrecht in the year 1946 and at present it has around 12,000 stores globally which shows company has high market share within the market. ALDI mainly offers home essential products and quality grocery through its supermarket chain. In order to attract and aware more number of people about its offerings, the higher authorities of company is decided to conduct campaign of 12 months with a tagline “Expressing Ourselves”. Its managers decide the time period that is 1stMay 2020 to 30thApril 2021. The present discuss about marketing audit along with TOWS analysis of company. In addition to this, SMART objectives is developed for the extensive marketing campaign. Moreover, Marketing mix plan & strategies is discuss for improving customer service level of the organisation. TASK Audit It is defined as an independent as well as systematic examination of documents, books, vouchers, records as well as accounts of an organisation. This take place in companies in order to identify how far non-financial and financial disclosures are presenting fair concerns. Marketing Audit It is defined as an analysis & examination of marketing activities, objectives and goals that is set by companies. This audit is adopt to analyse the way in which marketing activities are planned as well as managed by an organisation(Bagozzi, 2018). Marketing audit help companies to gain an understanding about market trends and make improvements in their products and services. The higher authorities of ALDI uses SWOT analysis in order to examine its strength and weaknesses of the company. The SWOT analysis is defined below:
SWOT analysis of ALDI Strength: The Company offers high quality goods with an affordable price which attract more number of customers towards the company due to which ALDI earn higher profits. In addition to this, the strength of company is its high market presence as it has more than 11,000 stores globally. Another strength of company is it purchase raw materials in large quantity due to which company earn higher profit margins(Kotabe, 2020). Along with this, the key success of ALDI is its talented and effective staff members which offer quality service to customers which builds a positive image in market. Weaknesses: ALDI is at present small as compare to its rivals that is considered one of its major weaknesses. ALDI is not able to satisfy its staff members as they employees perceive that theyarenotgettinginputsaccordingtotheeffortstheyputintowardsattainmentof organisational goals. This create dissatisfaction and lowers down morale of employees due to which attrition rate of company is high. In addition to this, ALDI is not able to influence globally as compare to another international chains. Opportunities: The Company have the opportunity to enter into new product segment in order to increase its sales and profit level. ALDI can offer organic food as it is easily accept in market due to its high number of loyal customers. It is determined that company need to spent amount on promotion or advertising in order to remain in competition at marketplace. In addition to this, ALDI have the opportunity to enhance its business activities and operations in other countries such as Africa, Asia and may more(Hüttner, 2018). It will help company to strengthen market position and raise market share in a proper manner. The company can reposition its brand as affordable goods rather than cheap products so that sales and profit get increased in a proper manner. Threats: ALDI has competitors such as TESCO, Walmart, Best Buy and many more that has influence on overall profits and performance of the company. Along with this, Government policies & taxation have an effect on business margins due to which reduces its market share level. Another threat is its private label brand that can be tossed by well reputed brands within the market. Internal environment: Internal audit assist companies to evaluate internal controls that us corporate governance and accounting processes. By the assistance of this, companies maintain timely and accurate financial reporting and data collection. Internal audit assist in analysing
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problems & correcting any issue before they develop in an external audit(Gaul and Baier, 2019). The internal audit assist in gathering knowledge of current internal control process, testing on fieldwork, follow up with employees and preparation of audit report. TOWS analysis of ALDI TOWS analysis helps an organisation to identify threats, opportunities and then compare it with weaknesses and strength as well. In addition to this, it also help in developing effective strategic plan that assist company to raise its effectiveness and productivity. The managers of ALDI adopt TOWS analysis in order to develop plan and strategies for their coming marketing campaign. The framework is mentioned below: OpportunitiesThreats StrengthSO ALDI is a well settled brand in market which offer quality grocery & houseessentialsin market.Ithavethe opportunitytoenter intonewproduct segmentsuchas organic food as it can beaccepteasilyby customersduetoits high market reputation. ALDI has well settled supplynetworkand maintain good relation withsuppliersso companyhavethe opportunityto negotiatepricefrom ST Thecompanyoffer higher discounts to its customers in order to attaincompetitive advantage.Itmaybe threat for company as itprofitmarginis declined rapidly. ALDIcanenhance marketpositionby fulfillingneedsof customerand employees.Itraise productivityof employeesdueto which they work with fullpotentialtowards attainmentof organisational goals.
suppliers and gain high profit margins. WeaknessesWO Decline in the level of sales and profit can be maintained by offering organic and fresh food inmarketwhichis becoming a new trend in market. Thecompanycan emphasiseon supplying healthy food as it helps in resolving issues of liquidity and profitability(Meffert, 2019). WT The growth & sales of ALDI declines due to openingofdiscount and convenience stores in market. This threat canbereducedif companyclosetheir supermarkets and open more discount stores at marketplace. Marketing Objectives The main objective of conducting extensive marketing campaign of 12months that is “Expressing Ourselves” by ALDI is given below: To enhance sales by 15% in coming 8 months by creating or educating people towards quality products as well as service provided by company at global level. To accelerate 10% market share within coming 9 months by strengthening market position and reputation of company. To differentiate and develop value of goods in order to attain competitive advantage from its competitors prevailing at marketplace. Justification of Marketing Objectives To enhance sales by 15% in coming 8 months by creating or educating people towards quality products as well as service provided by company at global level:The aim of conducting
extensive marketing campaign is to reach maximum number of people which has a most impact on its overall sales as well as profit of the company. For this, company uses various promotional tools and social media applications like YouTube, Instagram, Facebook so that they educate people about the campaign and its quality offerings as well. With the help of this, the company can gain the opportunity and fulfil its objective to raise at least 10% sales in the coming 6 months. Moreover, its higher authorities ensure that campaign will surely help in attracting more number of people and help in earning higher profit for the company. To accelerate 10% market share within coming 9 months by strengthening market position and reputation of company:Another goalof the company is to strengthen market position of the organisation at marketplace. This can be achieved by developing positive brand image in the mind set of customers(Steenkamp, 2018). In addition to this, its marketing managers uses media vehicles and offer quality products which spread positive word of mouth of one customer to another people. If the products is positioned accurately, it help company to develop positive brand image that have directly influence on market share of ALDI. To differentiate and develop value of goods in order to attain competitive advantage from its competitors prevailing at marketplace:The extensive marketing campaign conduct by ALDI in order to develop value of its products in the mind of customers prevailing at marketplace. It assist them to attain competitive advantage and market place and reaches Company towards growth and development as well. This can take place if ALDI fulfil its promise which take place with its customers. In addition to this, it is important for company to maintain demand and supply of products as it help in satisfying customer requirements that leads to customer retention. It also assist company to attain competitive advantage and gain leading position in that particular industry. Marketing Mix plan Marketing mix is defined as a tool which is adopt by higher authorities of an organisation in order to target right market by its products and services(Grimmer, 2019). This plan includes tactics & strategies that is developed by companies in order to create awareness and promote products in the market. It mainly includes 7P’s such as product, place, price, process, promotion, physical evidence and people as well. It is important for an organisation to arrange all this elements in an effective manner as it assist in making decisions which is profitable and beneficial for the company. With the help of this tool, an entity can gain the opportunity to raise strength
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level and reduce its weaknesses in an effective manner. Furthermore, marketing mix plan assist in attaining competitive advantage which has a positive impact on brand image as well as reputation of the company. This will also help company to increase its sales and profit level that has a positive effect on overall market performance and market share of an organisation. The manager’s pf ALDI uses marketing mix tool with an aim to achieve objectives which is developed for extensive marketing campaign. This assist company to target right and potential customers which increase sales as well as profit level effectively. The elements that is 7P’s of marketing mix is mentioned below in context to chosen company: Product: It is basically an item that is offered by companies in market in order to develop value and fulfil requirements of customers. It is important for an organisation to offer product in market by identifying customer requirements and market trends then only a product can gain success and retain in market for longer time period(Lim, Jee and De Run, 2018). In context to ALDI, its higher authorities focuses on offering quality goods in market so that more customers can be attract which assist in raising loyal number of customers of company. ALDI offers household essential & grocery such as wine, fruits, beer, tea, biscuits, Choco rice and many more. In order to attain extensive marketing campaign, ALDI should maintain quality of goods & deliver it on time period to their customers. Price: It is an amount that is charged from customers by the companies in order to provide products and service. It is significant for an entity to identify price of its rivals and then set price of their offerings as it assist in attracting more number of customers and also helps in engaging customers for longer time frame. With reference to ALDI, the company follow competitive pricing strategy in order to sell it products as well as services at lower rates in market. With the help of this, the company is able to attract maximum number of people due to which it sales and profit level is increased rapidly (Bio, 2019). It also assist company to raise its market share and gain success in market in an effective manner. Place: It is termed as a location where people can easily purchase or access product and service offered by the company. This consist of distribution centres, transport, franchise and many more. In relation to ALDI, it has around 11,000 stores that shows high market presence of company. Before deciding the location of its outlet, the mangers of ALDI identify market visibility so that they can put store in right place. In addition to this, its higher authorities ensure that adequate parking space is available in front of stores so that customers can conveniently and
easily access to their shops. Moreover, the company mainly emphasise on keeping store ambience simple as it help in cutting down cost which has a positive impact on profits and performance of the organisation. It also enhance sales of ALDI that is one of its extensive marketing campaign objective. Promotion: Promotionismainlydefineasa mannerby which companiescreate awareness of their products & service in market. The marketing managers of ALDI uses promotional tools and social media applications like YouTube, Instagram and Facebook in order to reach maximum number of people at global level(Dogu and Albayrak, 2018). In order to promote offerings, ALDI will going to organise extensive marketing campaign and decided its tagline “Expressing ourselves”. This campaign will help company to increase their customer base level that has a positive impact on sales and profit of ALDI. Process:The ambience of ALDI stores is simple which assist in declining cost level of company. The layout of stores is easy as well as convenient for customers to find products quickly. In addition to this, company put barcodes on their products which help in giving fast billing service to customer. People: It is important for company to offer quality and on time service to customers and for this, ALDI provides training session to its employees which has a positive impact on their productivity and efficiency level. Furthermore, its design of stores is easy and customer can easily pick products as there is no use of any staff members. Thus, it decline cost of company and assist in earning higher profits in a proper manner. Physical evidence: The Company offers same price of groceries at all the stores globally. In addition to this, it provide 20% less rates as compare to the price charge by customers as ALDI purchase products in bulk due to which they have high profit margins(Hua, 2019). It raise sales of company that effect on its market position and market share in a positive manner. From the above discussion, it is determined that adoption of market mix tool assist companies to target right customer at right place and on right time as well. Moreover it also helps an organisation to attain their desired goals or objectives within specified time period. How to improve customer service level There are many ways that can be adopted by ALDI in order to make improvements in customer service are as follows:
Customer Feedback: It is important for companies to take feedback from customers after giving them services as it assist them to gain an insight of customer perception towards company product and also help in bringing positive change in the goods and services offered by them in market. It also helps ALDI to gain knowledge regarding customer taste and preferences so that they ca offer accordingly and retain in market for longer time period(Ziemba, Jankowski and Wątróbski, 2018). This will make customers feel valued and important to purchase product by ALDI and there is a spread of positive message from one customer to another customers which leads to increase in sales and profit of the organisation. Furthermore, it aid company to gain competitive advantage at marketplace and gain higher success in a proper and effective manner. Provide Training to customer service Team: By the assistance of training, ALDI can easily uplift skills and competencies of employees who give services to customers. It help ALDI to provide quality as well as on time service to customers which build positive image in the mind set of customers. This will create value of company in market that has a positive impact on its market share and revenue level. Moreover, training assist staff members to handle or deal with customers queries in an effective as well as proper manner. Giving training to customer service team occur cost to company but give higher returns in coming future which assist ALDI to reach on high position and gain success rapidly within the market. Using Advanced Technology: In this competitive world, technology is changing rapidly and influence on the performance and profitability of the organisation. Along with this, it also effect on purchasing behaviour of customer as they prefer to buy or consume those products and services which is new and innovative in market. It is important for ALDI to use advanced technology in its process so that quick and effective service is given to customers that helps in improving customer service level (Sander, 2019). Using of advanced technology assist ALDI to solve customer queries rapidly that leads to retention of user for longer time period or it may turn towards loyal customer for the organisation. Furthermore, it assist ALDI to not only improve service level but also earn higher profits within short span of time and compete with their in market efficiently and effectively. CONCLUSION From the above study, it is concluded that marketing plan includes overall actions as well as strategies which assist in achieving objectives on time period. By the assistance of market audit, it is easy for companies to identify market trends and customer requirements that leads to
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customer retention and satisfaction as well. Furthermore, marketing mix allows an organisation to target right as well as potential customers due to which a company can enhance sales and profit level in an effective manner. Moreover, there are various methods such as using advanced technology, customer feedback which assist companies to improve their customer service level.
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