Critical Analysis of Aldi Australia: Marketing Strategies and Success Factors

Running head: MARKETING
Marketing
Name of the Student:
Name of the University:
Author Note:

1MARKETING
Table of Contents
a. Executive Summary:....................................................................................................................2
b. Introduction:................................................................................................................................2
c. Background of the Company:......................................................................................................2
d. Marketing Analysis:.....................................................................................................................3
i. The Nature of Aldi’s Marketing Strategy or Strategies since Beginning.....................................3
ii. Strategic Marketing Options of Aldi to Ensure Success in Australia throughout Next Decade. 5
Conclusion:......................................................................................................................................7

2MARKETING
a. Executive Summary:
The report aims at providing an overview of the critical analysis of Aldi Australia. The report
commences with the background information of the company. The report discusses the
marketing strategies of Aldi Australia through the application of the theoretical approaches. The
report also identifies the present scenario of Aldi and based on which provides marketing options
so that the company is able to maintain its success within the Australian retail industry. From the
report it has been found that Aldi Australia has tried to create quality brands for its products
along with maintaining a cost leadership strategy. The cost leadership strategy followed by Aldi
helps it in providing better profits for the organization and the team along with increasing the
market share and the sustainability of business. Besides, this also allows the company to generate
more capital and reduce competition within the market place .The report also shows that Aldi has
chosen a paid form of advertising for attracting audience. This has helped the producer in
increasing its sales. Advertising thus helps in increasing the demand of the products by reducing
price or induces the buyers to purchase increased an increased amount of product at constant
price. However, the second option holds true for Aldi where advertising induces the buyers to
buy more products at a price lower than the competitors. The report also discusses that in order
to remain successful in future, Aldi must form partnerships, stock products as per the demands
of the customer, have strong focus on retail, implement changes in the pricing policies, ensure
providing fresh food, adopt store format along with the adoption of environment friendly means.
In Australia, Aldi will continue to expand by opening new stores at every nook and corner of the
city. Hence, it will be vital for Aldi to accommodate the customer needs for growing categories
of organic produce, health foods and meat.

3MARKETING
b. Introduction:
The report aims at providing a critical analysis on the market situation of Aldi in
Australia. Aldi is a German supermarket chain that opened its doors to Australia in the year
2001. It is known for offering cheaper products in comparison Coles and Woolworth and gain a
greater market share in comparison to the competitors. This also helps the firm in gaining a
competitive advantage. Aldi is known to stock only 900 products compared to the other
supermarkets those stocks close to 50,000 products. Stocking fewer items allows Aldi to opt for
smaller stores and save in terms of utilities and rent since they get cheaper. The report provides
an overview of the marketing strategies of Aldi Australia through application of theoretical
approaches that involves a detailed market analysis and the strategic market options. The report
also puts across marketing options for Aldi for determining its success over the next decade by
depending on the circumstances that existed in the year 2019.
c. Background of the Company and Mission:
The operations of Aldi commenced in the year 1946 when Theo and Karl Albrecht took
over a German mother grocery store. With time Aldi became one of the largest retailers known
for the low prices. Aldi as the name represented stood for Albrecht and discount. In fact, the
retailer has been known for the strategy of every low pricethat ignored the multi buy offers. The
retailer is known for focusing on the own brands. As far as the international operations are
concerned, Aldi became known as Aldi Einkauf GmbH & Compagnie, which operated in France,
Denmark, Spain, Portugal, Poland, Great Britain, Ireland, Switzerland, Hungary, China, Austria,
Slovenia and Australia (Rice 2019). The retailer first opened it stores in Australia in the year
2001(aldi.com 2019) and had an extensive network across Eastern Seaboard. The retailer aimed