Marketing Mix Strategies of Aldi and Woolworths

This assignment delves into a comparative analysis of the marketing mix strategies employed by two prominent Australian supermarkets, Aldi and Woolworths. It examines their approaches to product differentiation, pricing strategies, distribution channels, and promotional activities. The analysis highlights how each retailer targets specific customer segments and leverages unique marketing tactics to achieve competitive advantage in the highly saturated supermarket industry.

Running head: MARKETING MANAGEMENT
Marketing mix
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MARKETING MANAGEMENT
Comparison of Aldi and Woolworths marketing mix strategy
Marketing mix refers to the action and tactics that can be used after manufacturing the
product to the point that it is delivered to the customers. The 4p strategy is known to be the
product, place, price, promotion strategies that is done after the segmenting targeting positioning
of their products or services. The following is the detailed discussion of the product mix of two
supermarkets of Woolworths and Aldi (Wilson and Gilligan 2012).
Product
Woolworths are focused in offering quality and accessibility of their product. Healthy
and wholesome products are sold in the supermarket. In addition, Woolworths gives products
according their customers’ needs. They also offer their in-house branded products, which are
considered to be of their customers perceives quality. The success of this product strategy
depends upon the delivery performance of the company (Armstrong et al. 2015). This element
of marketing is most important part of market mix strategy. The quality assurance system of
Woolworths ensures the great value in their products as well as the limited service they given. In
addition, Woolworths dynamic capability in innovation is what gives them a strategic advantage
in the competitive positioning.
On the other hand, Aldi also offers its own branded products but their target segment of
customers consists of lower income group than Woolworth’s customers. Aldi in-house products
also maintain quality. Their products offerings are also have significant association with season.
Aldi offers various products that are of good quality and cheaper in comparison, which attracts
large customer groups (Wilson and Gilligan 2012).

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Price
Price refers to the value of the customers spending. The cost of production is the factor
that needs to be considered. Pricing strategies for Woolworths is very dynamic in nature and
changes with economic determinants, which change periodically. The promotional sale and
offers and discounts are in pricing offers people in their products purchase attracts the customers.
The discount and coupons help in widening the customer’s base of their company (Armstrong et
al. 2015). The innovation in pricing strategies adopted by the customers also helps in attracting
the customers. The retention strategy can also be developed by the value that they offer on their
pricing. The discount offers are helpful in attracting customers and in retaining the customers.
However, Woolworths believes in not only in pricing strategy, that attracts customers, the quality
always matters.
On the other hand, Aldi is known to offer cheaper price in products. They also go by the
unit pricing strategy. The combination of penetration pricing, competitive pricing and
psychological pricing strategy is also applied in Aldi. The low profit margin on the non-food
items that the company sells is very attractive for people in Australia (Shank and Lyberger
2014).
Place
Woolworths have many convenient stores located on the areas and accessible to
customers. Accessibility of the products is what this element of marketing mix strategies works
on. Choosing a strategic location is what makes the place factor works more properly (Shank and
Lyberger 2014). Woolworth’s online accessibility gives it more strategic advantage for

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convenience to the customers. Though the retail segments always takes into consideration the
strategic advantage of any location, the minimisation of waste at the time of transportation of
goods must be kept in mind. Woolworths is one among the competitor is global retail that does
take this factor into account.
On the other hand, the Aldi keeps its stores layout simple for customers. Easier
availability for their customers to purchase discounts based on the transportation. Online website
of Aldi is quite popular and also the convenient mobile app is available for their customers
(Grant 2016).
Promotion
The promotional activities of products are dependent upon the visibility of the company.
To make the promotional strategy is to make people aware of their products. Different consumer
schemes and loyalty programs can do it. Woolworth’s strategy of promotional activity is media
based advertisements. Billboard advertising in an area that are reasonably more popular than the
other are also communicated to the target market (Grant 2016). This communication medium is
known to be more effective than others are. Different product catalogue are also given to the
stores, which are point of sale for the company.
On the other hand, being working on lower profit margin, Aldi takes into account
different public relational method of advertising their product. Social media marketing is also
done for Aldi’ increase in communication with their customers for effective marketing strategies
(Helm and Gritsch 2014). The printed catalogue, magazine, and television is also used for
promotional activities for effective marketing communication.

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Reference
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Wilson, R.M. and Gilligan, C., 2012. Strategic marketing management. Routledge.
Grant, R.M., 2016. Contemporary Strategy Analysis Text Only. John Wiley & Sons.
Helm, R. and Gritsch, S., 2014. Examining the influence of uncertainty on marketing mix
strategy elements in emerging business to business export-markets. International Business
Review, 23(2), pp.418-428.
Shank, M.D. and Lyberger, M.R., 2014. Sports marketing: A strategic perspective. Routledge.
Proctor, T., 2014. Strategic marketing: an introduction. Routledge.