Marketing Management: ALDI Marketing Campaign Analysis

This report provides a detailed analysis of ALDI's marketing campaign, including TOWS analysis, marketing objectives, and marketing mix plan. It explores strategies to increase market share, customer retention, and sales. The report also highlights the importance of product differentiation, pricing strategy, and customer service engagement in achieving these objectives. The analysis is based on ALDI's 'Express ourselves' marketing campaign.

MARKETING
MANAGEMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
TOWS Analysis of ALDI............................................................................................................1
Marketing Mix Plan of ALDI......................................................................................................4
Marketing objectives for 'Express ourselves' marketing campaign.............................................6
Customer Service Engagement of ALDI.....................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing management is a process of formulating strategies by assessing market factors
to increase the efficiency of business organization in the future. Marketing management provides
opportunities to evaluate available resources and exploit them according to benefits of business
firms to achieve objectives and attain core competency. This helps to understand customer
behaviour to increase efficiency of products and services to increase customer's satisfaction
level. This report has detailed study about marketing campaign of ALDI supermarket which is
having tag-line “Expressing ourselves”. ALDI is a supermarket chain which provides groceries
and household products to its customers. The main objectives of this report is to formulate
effective marketing plan for supermarket which is going to be held from 1st May 2020 to 30th
April 2021. This report provides marketing TOWS analysis of ALDI Company. Furthermore,
report analyses marketing objectives of marketing campaign to formulate marketing mix plan of
supermarket to identify the customer service engagement in company.
TOWS Analysis of ALDI
TOWS analysis helps to integrate internal strengths of business with external
opportunities to gain maximum results. TOWS help to analyse weakness to convert it into
strength to attain external opportunities. (Christofi, Leonidou and Vrontis, 2017). This analysis
will helps ALDI supermarkets to understand their opportunities and threats according external
environment to make effective marketing campaign by integrating strengths with opportunities to
gain objectives effectively. It helps to improve the efficiency of company and increase sales to
reach its objectives effectively.
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ALDI Strengths (S)
 Low pricing Strategies.
 Product
Differentiation.
 Strong Customer
Service.
 Large network of
Stores.
Weakness(W)
 Inefficient workforce.
 Low profit margins.
 High marketing costs.
Opportunities(O)
 Expanding in new
markets.
 Adopting innovative
technology in
marketing strategies.
SO Strategy
 Low pricing Strategies
can help ALDI to
expand in market
effectively.
 Product Differentiation
WO Strategy
 Providing Training and
development increase
customer efficiency to
improve marketing
activities and increase
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 Increase customer base. provides better
retention of customers.
 Strong Customer
Service help company
to increase customer
base and increase sales
effectively.
customer satisfaction.
 Low profit margins can
be resolved by
innovating products
which helps to increase
value of products to
gain better profits.
Threats(T)
 Threat of new entrants.
 Change in customer's
perception, tastes and
preferences.
 Substitute products.
 Marketing failure.
ST Strategy
 Implementation of Low
pricing strategy reduce
threats entrants.
 Product Differentiation
helps to reduce threat
of buying patterns of
customers.
 Strong network of
stores help to reduce
threat of marketing
failure.
WT Strategy
 Low profit margins
increase threat of new
entrants.
 Inefficient workforce
increases threat of
change in customer
tastes and preference
due to lack of proper
awareness by
employees.
 High marketing cost
increase threat of
marketing failure.
Strength-Opportunity
Low pricing Strategies can help ALDI to expand in new market effectively.
ALDI has a very effective low pricing strategy which helps to increase the sales. Low
Pricing of ALDI helps to increase customer base and motivate them to become loyal to company.
This helps ALDI to increase its market share and compete in high competitive market. ALDI
analyses that with low pricing strategy company can increase growth by expanding in new
market to increase number of customers and profitability. This also helps to motivate company to
increase products effectively.
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Product Differentiation provides better retention of customers.
ALDI is also having strong advantage from their product differentiations which helps to
retain customers. Company has all sorts of brand products which increases the options of
customers to buy. Company have identified the increase in usage of technology by customers
which will also helps company to develop effective system in stores to decrease the checkout
time and also provide better information about products. This will helps to increase the
efficiency of marketing campaign to increase and manage more customers.
Strong Customer Service help company to increase customer base and increase sales effectively.
ALDI also provides better environment for customers to purchase from its stores and
online stores as customers will be more comfortable at their home to purchase at their ease
(Mortimer, 2016). All stores are hygienic and also have systematic management which helps to
organize their store and decreases the efforts for customers to find products for long. By
developing online stores with new technology in company can increase customer satisfaction and
increase customer base.
Weakness-Opportunity
Providing Training and development increase customer efficiency to improve marketing
activities and increase customer satisfaction.
ALDI needs to adopt effective management which helps to provide training according to
skills required for each employee (Schwarzkopf, 2019). This will help employees to increase
their efficiency and make them loyal to company. ALDI also need to upgrade remuneration
policies to motivate employees and support company's objectives. This decrease cost to increase
productivity of company. This will help to improve customer service engagement to increase
sales and customer base of ALDI.
Low profit margins can be resolved by innovating products which helps to increase value of
products to gain better profits.
ALDI is known for its cheapest product prices which decreases company's profit margins.
This also results in frequent change in suppliers to keep the profit margins constant and decrease
cost of products. Company also mistreat suppliers and do not pay them in expected period which
also decreases reputation of ALDI in market. ALDI analyses that demand of organic and
environment friendly products have increased due to increase in health and environment
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awareness. This can increase the efficiency of business growth by proposing grants from
government on products which are environment friendly. This will helps company to decrease
their weakness and attain opportunities which helps to support marketing campaign in the future.
Strength-Threat
Implementation of Low pricing strategy reduce threats entrants.
ALDI uses Pricing strategy to attract customers and this also decreases the threat of
existing competition and help ALDI to increase their customer base effectively.
Strong network of stores help to reduce threat of marketing failure.
Large store network also helps ALDI to decrease the threat of marketing failure to due to
large customer base which help to support company to survive in competition effectively and
achieve its objectives.
Product Differentiation helps to reduce threat of buying patterns of customers.
Threat of Substitute products is emerging due to effective strategies of competitors in
market. ALDI has online services which can help to provide better services to customers.
Company also decreases its threat by improving quality of products and services by innovation.
This will help to motivate customers to be loyal to ALDI and increase sales.
Weakness-Threat
Low profit margins increase threat of new entrants.
Due to low prices products company is unable to attract upper social class customers in
their stores. Company is inefficient to reach high income level customers due to discount stores
which only attract low and medium income level customer. By terminating inefficient employees
and developing effective pricing strategy which provide high quality of products will help to
eliminate threats and weakness of ALDI.
High marketing cost increase threat of marketing failure.
Increase in income level of customers have provided an opportunity for company to
increase its strategy and attract new customers effectively (Lehrer and Schmid, 2019). Due to
increase in education level of customers it has also increased the demand in premium products
with more hygiene. With help of introducing new products which are premium and good quality
can increase the sales of company and also provide loyal customers with better profit margins.
This will reduce the Threat of new entrants is increasing in market by increasing marketing skills
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of employees and penetrate in market effectively. ALDI can use promotional strategy to increase
customer base and provide additional benefits with products to satisfy them effectively.
Inefficient workforce increases threat of change in customer tastes and preference due to lack of
proper awareness by employees.
Innovation of new products helps ALDI to decrease threat of Inefficient workforce and
also help to attract upper social class customers to increase customer base and profit margins
effectively. Company also can increase its promotion on social media which increases its
customers with low cost and provides better profit margins to support marketing campaign and
achieve objectives of ALDI.
Marketing objectives for 'Express ourselves' marketing campaign
The prime objective in this marketing campaign is increasing market share by 20%
in one year.. TOWS analysis company analyses low pricing strategies will help company
improve efficiency of products and services to gain high productivity to attain opportunity of
competitive advantage and improve market share effectively. Company also analyses by
adopting differentiation strategy it will help to improve number of customers to increase brand
value and achieve objectives of company in one year by marketing campaign. Products labelling
and packing will provide enough information about products and services which will help to
satisfy customers to enhance rand value of company in market. Hence, a proper product
awareness may help all present customers to better understand these supermarket products that
may eventually lead to a level of comfort, being developed amongst the public. It will also
increase recall value of the products offered by supermarket.
Second objective of the marketing campaign is to increase customer retention by
35% within one year through effective pricing strategy and improved quality services.
ALDI analyses that by providing online services to customers will helps to increase satisfaction
of customers from their home at their comfort zone. This will help to double the customers by
innovating and adopting new technologies which are customer friendly and easy to access by
customers. Company also need to improve the quality of current products by implementing
customer grievance form which will provide proper information to ALDI about issues and
problems to formulate effective strategies and resolve problems. This helps to improve the
efficiency of marketing campaign to increase the size of customer base. ALDI analyses
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expansion of stores in new market will provide better opportunities to increase number of
customers faster in limited time. It should be done in order to increase the overall sales of
supermarket with help of increased customer base. Company analyses opportunities by
innovating new products with company's strenght to formulate max-max strategy and increase
customer retention effectivley.
Third objective of this campaign must be to increase the sales by 20% in one year
through product differentiation by eco-friendly products. Recent involvement of world
leaders and public alike in talks regarding sustainable development has provided a necessary
shift in the markets worldwide. Widespread discussions on the topic of climate change and
global warming has led to even stricter environment regulations. Since there is a popular increase
in market share of eco-friendly products, it is in the best interests of this company to focus in
increased sales of these products in its stores. Furthermore, an increased government subsidies
on eco-friendly products have made these products a more economical option for retail stores. It
is evident that customers today are very much concerned about how products utilized by them
can influence environment around them. In modern times companies take their social
responsibility seriously, and are committed to bring about a change in their surroundings. ALDI
need to implement new eco-friendly products which helps to increase sales and profit margins of
company. Social media promotions and customer loyalty with help of satisfying them will help
company to improve sales in one year and increase productivity of marketing campaign
effectively. Customers are also interested in purchase of recycled and organic goods. Therefore,
it may prove largely economical for the company to increase the sales of these products to build
a progressive image in the society. The increased awareness about such products will lead to
increased customer base, resulting in overall profit in business.
Marketing Mix Plan of ALDI
Marketing mix planning is the process of integrating different combinations of strategies
which helps to increase efficiency to achieve objectives of business organization. This also helps
ALDI to become more efficient to succeed in marketing campaign (Chatterjee, 2017). Company
analyse the marketing plan with help of seven strategies to facilitate growth and profitability
effectively.
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Product Strategy
ALDI need to provide differentiated products in every segment to increase customer
retention and loyalty. This will increase customer base and improve sales of business
organization. Company need to adopt environment friendly products to increase the sales and
improve the customer awareness due to increase in health conscious customers and need to
protect nature. Product description and effective labelling will help to provide knowledge about
products and its benefits to increase its sales. This will also help to educate customers and
increase positive values for company's efforts (Azeem and et.al., 2019). This will help to
increase customer relation with company to increase touchpoints effectively. ALDI need to
increase Product innovation by better research and development teams which will also help to
increase customer base and facilitate effective sales to improve brand value to collect better
profitability. Attractive packing of products also helps to attract more customers and increase
popularity of company in market to compete in market effectively and achieve core competency.
ALDI should also provide additional warranties on products and delivery to increase customer
satisfaction.
Price Strategy
ALDI needs to provide a periodical discounts to loyal customers and also new customers
to increase sales and improve customer base effectively (van Rompay, Deterink and Fenko,
2016).
Company need to decrease the prices of those products which are very costly in market which
will helps to support company to improve its market share and reach its objectives to achieve
20percent sales from previous year. To achieve enhanced customer base company need to
provide better quality of products with lower prices. ALDI also need to provide extra product
features to its customers which will helps company to receive premiums and compete in market
with high margins. With help of offers like buy one get one free, ALDI will increase sales of
running products as well as non running products to reduce risk of expiry and increase sales with
lower prices.
Place Strategy
ALDI need to implement effective marketing channels which will allow company to sell
its product directly to customers and by online website. Company also need to distribute its
products to retailers. ALDI need to use expansion strategy to in capture market and increasing
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customer base. ALDI will implement the place strategy to increase market reachability as it will
help company to gain more information about customers in market to adopt eco-friendly
products to increase brand value of company. (Brinkley and et.al., 2019). Company should also
open stores on social media which will increase sales of company with cost efficiency. ALDI
also need to ensure marketers contact large suppliers and retailers which helps to target large
customer base and increase sales with great influential power.
Promotion Strategy
ALDI need to use promotion strategy to increase awareness about products which
company will sell in the future. This will helps ALDI to improve customer base and increase
sales by 20percent. ALDI is focusing on marketing campaigns to provide better quality of
services according to needs and wants of customers to satisfy them and increase loyal customers
in company. Company need to provide consistency in delivering same message to customers
about vision of company to increase value of customer's effectively. Due to changes in
environmental polices company also need to promote sales of eco-friendly products which help
to increase goodwill of company to attract more investors. ALDI will hire an influential speaker
which help to increase willingness of customers top buy products of ALDI and increase sale of
company to achieve objectives of company.
People Strategy
Customer services is essential aspect and ALDI need to implement its marketing
strategies which will also help to increase brand value and customer loyalty. Motivating
employees helps to increase their efficiency in achieving objectives. Motivation of employees
also increase retention and loyalty of workforce in company to improve productivity. Company
also need to provide training and development to employees which will help to increase
awareness of customers about new products and services to increase customer base.
Process Strategy
ALDI has adopted management information system to maintain its inventory in stores
this will also help to increase customer engagement with company by providing emails about
offers and discounts. Online stores will also help to provide home delivery to customers free of
cost. This will help to increase sales of company and provide better option for customers to
purchase household products. ALDI need to develop feedback information system to gain
information about issues which are faced by customers. This strategy also helps customers to be
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loyal and increase their satisfaction level effectively. Process strategy will help company to
determine the efficiency of activities which will be carried at time of marketing which will help
to increase customer base and facilitates sales of eco-friendly products effectively.
Physical Evidence
ALDI need to increase their presence in market my providing value for tag-line “
Expressing Ourselves”. Eco-friendly environment and products in stores will help company to
improve customer value against company vision and make them loyal to company (Mortimer,
2016). ALDI need to focus on customer satisfaction which in return will help to increase
customer base with help of mouth publicity by its loyal customers. Increase in customer
satisfaction will help company to increase its popularity which will support sales and increase in
customer base.
Customer Service Engagement of ALDI
Customer services engagement is a process which helps to integrate customer's feeling
with brand value which helps business to increase their sales and facilitate growth of business
firm. High customer services engagement helps to provide better quality of information to ALDI
to innovate and improve its products and services. ALDI will use differentiation and low pricing
strategies in Express Ourselves marketing campaign to motivate customers to buy eco-friendly
products. Eco-friendly products helps to increase customer services engagement due to positive
vision towards society. This also helps ALDI to increase customer base and sales of company.
According to Koval, (2018) increase in usage of social media can also help ALDI to
improve customer services level by promoting its products and services and providing effective
transparency to stakeholders. Transparency will help to increase creditability to increase capital
funds and support growth by investing in new markets to open new stores and increase its
network. ALDI need to use management information systems which will help to manage all the
issues of customers and resolve them effectively. New technology adoption will also need
effective employees which have proper skills and knowledge to access information to formulate
effective strategies and promote healthy working environment. Customer journey mapping
provides accurate information of customer's behavioural pattern in purchasing each product and
it also depicts touchpoints in company (Olson and et.al., 2018). ALDI analyses touchpoints and
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increases its productivity of activities to improve customer service engagement in marketing
campaign.
ALDI need to use in product messaging strategy to increase value of customer about its
products and services, this will also help to improve popularity of company and help to penetrate
in market effectively. Information about products are provides by text messages, emails, social
media post, newspapers which helps to increase customer engagement in company. This strategy
will help to target specific segmented customer for which product is most suitable.
ALDI also need to provide free sampling of new products to customers to understand the
quality and gain trust of customers to increase sales and promote product in market to compete
and achieve company's objectives. Free sampling will also help to attract more new customers
and increase aggressive marketing strategy to gain outputs in within short term. ALDI also need
to provide special treatment to its upper social class customers as they are more educated and
financial capable to increase sales of company (Mullakhmetov and et.al., 2016). Upper social
class customers are VIP customers of ALDI and company need to focus on providing effective
schemes and discounts to make them loyal to company.
ALDI has analysed to increase customer service level company have to take customer's
needs and wants as priority and provide them what they need. This technique also increase
customer satisfaction and increases product sales and market stability of company. It increases
customer base and size of brand in market attract customers from competitors. ALDI uses
content marketing to provide better information about company's activities and growth rate
which increase trust of customers and help company to attract customers. Company designs
customer content marketing which provides priority to existing customers of company which
improve values of customers to support company more effectively.
Effective employees' relation with ALDI will improve efficiency of employees to identify
external market factors which will facilitate in maximizing profitability and customer
engagement. ALDI need to adopt effective strategy by opening grievance forum online and in
stores to address their issues with products and services which make them dissatisfied (Folinas
and Fotiadis, 2017). ALDI will use systematic procedures to identify the cost of marketing
campaign so that company can minimize the cost and increase profit margins to increase
customer service engagement in company with better facilities.
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CONCLUSION
This report concludes that marketing audit of ALDI to which helped to understand factors
which deceases threats and weaknesses with help of strengths and opportunities of company. The
tag line of company helped to increase customer base with help of customer service engagement.
Report also provided a detailed assessment of marketing campaign strategies and techniques
which helped to increase customer base and improve sales of eco-friendly products according to
new government policies. Marketing strategy of ALDI provided effective information to expand
its business with new stores. Report also highlighted proposal which increased customer service
level in market. Customer engagement helped ALDI to increase business size and promote
effective quality of products and services.
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