Assignment - Marketing Plan of Aldi

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Running head: MARKETING PLAN OF ALDI
MARKETING PLAN OF ALDI
Student’s Name
University Name
Author note
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1MARKETING PLAN OF ALDI
Introduction
ALDI is a discount supermarket chain based in German. The retail business
organization operates in two main groups including ALDI Sud and Aldi NORD. Both of the
groups operate independently within their specific market grounds. The business organization
offers high quality range of products and services at reasonable prices and ensures
considerable savings for the consumers. The mission and vision of the business organization
is to provide “top quality at incredibly low prices-guaranteed”. The business organization is a
combination of both market and sales oriented. In the past years, the company has grown and
expanded its business organization in the global market (Wood and Jobber 2016). However,
the company plans to alleviate its marketing strategies to boosts its sales and improve its
brand image. Therefore, the business organization plans to initiate a marketing campaign
“Expressing ourselves”. The purpose of this report is to formulate a marketing campaign plan
for ALDI supermarket. The report constructs a marketing TOWS analysis for ALDI. It
determines the strengths, weakness, opportunities and threats of the business organizations. It
formulates the objectives of the marketing campaigns over 12 month’s period. Further, the
report examines the marketing mix plan to be undertaken in order to attain the objectives over
12 month’s period. It provides recommendations to improve their levels of customer services.
Discussion and analysis
Marketing TOWS for ALDI
Strengths - ALDI has numerous strengths and capabilities. The business organization has a
strong distribution network which enables the business organization to reach to wide range of
potential market. The business organization has reliable distributors enabling the company to
overcome supply chain bottlenecks (Wood and Jobber 2016). The company has a wider reach
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2MARKETING PLAN OF ALDI
and has entered new marketing which ensures new revenue streams. This enables free cash
flow and good returns on investment and capital expenditure. Further, the business
organization has a strong brand portfolio which is extremely advantageous for the business
organization. It has strong portfolio of brands which enables the business organization to
expand into new category of products (Dib 2018). Aldi supermarket ensures automation of
activities which enables the business organization to cope with ups and downs in demand
conditions in the market. This brings consistency in quality products and services. The
business organization excels at keeping track of the records and integrating latest
technologies to build a reliable supply chain and operations (Dib 2018).
Weakness Being a discount supermarket chain, the profitability of the business
organization is below the average industry rate. The company also lacks financial planning.
The ash inflows and cash outflows are not managed efficiently (McDONALD,
M.A.L.C.O.L.M. 2016). The business organization also has a high attribution rate which
suggests that the organization needs to spend more on its training and development. Further,
the online delivery systems of the business organization are yet not effective as compared to
other competitors in the market (Mononen et al. 2019).
Opportunities – there are various technological developments and advancements, which is an
opportunity for the business organization to enhance its operations. Due to increase in
globalization, the business organization has the opportunity to open up new markets
(Mononen et al. 2019). There have been increases in customer spending thereby providing an
opportunity to capture new customers and increase its market share.
Threats – The emergence of Corona Virus is one of a major threat faced by Aldi. COVID-19
has a seismic impact on the operations of retail supermarket chains. It can affect the financial
performance of the supermarkets (Perlman 2020).. There have been labor shortages which
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3MARKETING PLAN OF ALDI
has been creating gaps in the supply chain. The valuation of the share prices in the recent
times has been squashed due to the uncertainly of Brexit, online disruptions and rise of
discounters amidst the chaos the COVID-19 (Perlman 2020). The stiff competition in the
market also threatens smooth operations of the organization.
TOWS Matrix
Strengths (S) Weakness (W)
Opportunities (O) Aldi has the capacity to
implement latest technologies in
the operations of the business
organization. The free cash flow
and string financial position can
enable the organization to grab
the opportunity of various
technological developments.
The prevailing opportunities
will help the organization to
overcome weakness. The
increased customer spending
and technological developments
will ensure higher sales thereby
enhancing its profitability.
Threats (T) The prevailing threats such as
stiff competition in the market
can be overcome by
implementing innovative
technology to enhance customer
experience. In the crisis
situation, the organization needs
to focus on efficiency while
ensuring that all the consumers
have adequate access to
consumer goods. Good service
to society will ensure good
Lack of financial planning and
ineffective management of
finance can be detrimental to
the profitability and smooth
functioning and operations. The
uncertainty of Brexit and
shortage of labors can affect the
operations and profitability of
the business organization
(Perlman 2020)..
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4MARKETING PLAN OF ALDI
reputation and brand image.
Marketing objectives for Aldi over 12 months
Objectives for next 12 months (Mononen et al. 2019)
Engage with the customers through the campaign of ‘Expressing ourselves’
promotions and extensive market research.
Building reputation and brand image by offering high quality products and customer
services
Improve customer satisfaction rate by 20%
Enhancing organizational profile by 20%
Enhancing operations by offering training and development opportunities to the
employees and the staffs
Reducing the cost of operations (direct and indirect costs)
Increase sales revenue of the organization by 20%
Key performance indicators (Pappas 2016)
Objectives KPIs
Customer engagement Number of customer surveys
completed
Increase in total number of reports
completed to determine the external
environment opportunities
Completion of market research
Enhancing brand image and reputation Total number of positive customer
response in periodic customer surveys
Percentage of people with brand
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5MARKETING PLAN OF ALDI
recognition
Number of brand loyal customers
Improve in customer satisfaction Number of customer complaints
Number of positive comments
Ratings by the customers
Enhancing organizational profile Number of customers with positive
brand image
Number of customers having positive
view about the organizational ethics,
safety and quality of products and
services offered.
Number of customer complaints
Training and development of employees Employee surveys
Ratings from the employees
Number of training session completed
Number of operations training
program conducted
Decrease in the rate of internal
injuries
Decrease in anti discrimination within
the organization
Reducing cost of operations Assessing the annual financial
statements of the company
Determining the ledger accounts i.e.
wages , cost of agent services , other
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6MARKETING PLAN OF ALDI
operational costs
Increase in sales revenue Assessing the annual financial
statements of the company
Revenue target - $ 10 million
Profit target - $ 1,500,000
Strategies to meet the targets and objectives of Aldi
Conduct customer surveys to determine the rate of customer satisfaction, number of
brand loyal customers (Pappas 2016).
Extensive market research by accessing the internal and external business
environment to determine the prevailing threats and opportunities
In order to build relationship with the customers, suppliers and other stakeholders,
Aldi will be maintain ERP (Enterprise resource management), CRM (customer
relationship management) systems and point of sale (POS) (Pappas 2016)
To support the employees, the strategy is to engage with the employees through
regular coaching, surveys, training (ethical, legal and operational). Training programs
need to be aligned with the overall operational goals and objectives of the business
(Voigt, Buliga and Michl 2017).. They will be given incentives for performance.
To reduce the operational cost of the firm, it will negotiate with the suppliers and
research on new suppliers. The company might search new distribution possibilities
such as direct channels of distribution (online). The company might focus on budget
and carry out the campaign as per the budgets (Voigt, Buliga and Michl 2017)..
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7MARKETING PLAN OF ALDI
In order to increase revenue and profitability of the business organization, extensive
market research to understand the needs and demands of the consumers. Employees
and staffs will be provided with sales training to increase efficient and boost customer
satisfaction rate (Pappas 2016). Effective marketing campaigns ‘express ourselves’
Marketing mix plan to attain the set objectives
The marketing mix strategies of the business organization determines the product strategy,
price strategy, place and distribution strategy that will be implemented by the organization in
order to attain the preset goals and objectives of the business organization (Voigt, Buliga and
Michl 2017)..
Product strategy – Aldi offers wide range of products and services including food products,
beverages, beauty products, electronics, soft tools and other consumer goods. The products
and services are altered and modified as per weather and season (Voigt, Buliga and Michl
2017).. Aldi is a discount supermarket chain that claims to offers high quality products and
services at a reasonable pricing. Effective suppliers are one of the biggest strengths of the
business organization, which enables the business organization to attain high quality products
sourced from selected suppliers (Brandes and Brandes 2019). The sourced products and
services will be branded by Aldi in order to have full control over the production and the
pricing. This will enable the organization to continue offering its products at a discounted
price as compared to other competitors in the market.
Price strategy – Aldi offers the products and services at a reasonable prices and discount
offers in order to retain old customers and acquire new customers. Aldi implements a unit
pricing policy for the grocery items (Ziyadat 2019). Due to presence of stiff competitors in
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8MARKETING PLAN OF ALDI
the market it will be beneficial for the organization to provide discounted offers to boosts
sales and revenue. The company also needs to understand the needs and demands of the
consumers and ensure that those demands and needs to meet through affordable pricing
strategies. The products need to be made available by the people at low rates without
compromising the quality to maintain loyal customers (Costa Webber et al. 2018). The
company also implements psychological pricing strategies such as $2.99 rather than $3.00
(Costa Webber et al. 2018). This difference positively impacts on customer psychology and
their decision making. Aldi is known for its great value and high quality products. This
enables the business organization to have a strong loyal customer. High quality products and
discounted rates have enabled the business organization to attain customer loyalty
(Suhartanto 2017). Hence this strategy is highly effective in attaining the preset goals and
objectives.
Place/ distribution strategy – The Company has a wide reach to new markets with its global
presence. The business organization is many retail outlets for the easy availability of goods
and services to the customers (Suhartanto 2017). Aldi has various stores and retail outlets in
around the world. It has more than 840 stores in UK and 1900 stores in 35 states in USA. The
customers can visit the retail outlets where the professional retailers and the staffs can guide
them through their shopping and enhance customer experience (Artto et al. 2017). Further,
the customers also have the opportunity to place their orders online through digital systems
and smart phones and pick up their orders from the stores. There are delivery opportunities
available for the customers, the orders products can be delivered to the doors of the customers
(Artto et al. 2017). Additional facilities are provided to the customers such as ‘Collect Plus’
as delivery options. These facilities will increase customer convenience and ensure customer
satisfaction, thereby meeting the goals and objectives.
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9MARKETING PLAN OF ALDI
Promotional strategies – The business organization will be mainly focusing on its marketing
campaign that is ‘expressing ourselves’ to reach out to the target audience and engage with
the customers (Ziyadat 2019). This campaign is primarily aimed to boost customer
experience and enhance its customer engagement to ensure its brand image and reputation in
the market. Other promotional strategies will be implemented by the business organization
such as social media marketing, website enhancing, customer surveys, and content marketing
to reach out to the target audience and increase its relationship with the customers (Brandes
and Brandes 2019). The business organization will be focusing on promotional methods such
as public relations, sales promotions and advertising along with TV and Newspaper
commercials to reach out to the customers. In order to improve its brand image and reputation
in the global market, it will be target mass audience (Brandes and Brandes 2019). The
campaign ‘Express Ourselves’ will be focusing on particular products. It will be increasing its
social media presence to engage with the customers such as Twitter and Face book in order to
initiate a two way communication. Aldi can interact with the customers through social media
platforms and encourage the target audience to participate in market research and surveys in
order to create better brand visibility (Brandes and Brandes 2019). Direct mails will be used
by Aldi to promote any discount or seasonal offers (Costa Webber et al. 2018). The official
website of Aldi can feature promotional message such as the new campaigns with additional
information.
Recommendations to improve levels of customer service
Enhanced customer service must be the core marketing strategy of Aldi; the business
organization must attain ultimate customer satisfaction as per the preset objectives and goals.
It is believed by Xu et al.(2017), that the customers respond quickly to the actions of the
business organizations rather than what is said to them. Therefore, customer service is vital
part of any, marketing campaigns. There is a positive relationship between customer service
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10MARKETING PLAN OF ALDI
and marketing campaigns. Gaining new customers and increase in revenue of the business
organization is dependent on the effectiveness of the marketing strategies and marketing
campaigns (Xu et al.2017). Effective marketing strategies with customer service can
strengthen the relationship with the present customers as well as retain old customers. The
customer service can positively impact the bottom line and also reduce the operational costs.
It can provoke effective marketing communications (Wilson et al. 2016). .
In order to enhance the levels of customer services, the marketing department of the
business organization will be engaging directly with the customers through emails,
telephones, social media platforms and on personal websites (Goodman 2019). This will
enhance personal experience of the customers and enable the business organization to
develop high level of loyalty among the customers. Effective customer service will enable the
business organization to attain the objective of elevating the brand image of the organization.
The business organization can take the advantages of technological advancements to enhance
the levels of customer service in the business organization (Menguc et al. 2017). Customer
service can be provided both online and offline. However, with internet connectivity, it will
be beneficial for the business organization to create an online customer service culture, as it
can increase the customer interactions with the company. These interactions with the
customers can represent the marketing opportunities (Shire, Holtgrewe and Kerst 2017). The
business organization needs to undertake the opportunities especially while providing
customer service on social media. This provides an opportunity for the business organization
to display the brand, its ethics and personality. These marketers must use their talents and
skills to convert the visitors into potential customers of the business organization. The
business organization is recommended to implement Omni channel customer service (Shire,
Holtgrewe and Kerst 2017). The reputation and brand image of the business organization is
highly essential to gain customer support and reviews. As per research and surveys, it has
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11MARKETING PLAN OF ALDI
been identified that majority of the consumers checks the online reviews of the brand or the
product before making a purchasing decisions. Therefore, it must be ensured that customers
provide positive comments on the WebPages (Shire, Holtgrewe and Kerst 2017).
The marketers need to focus on creating good customer experience. This will
increases the chances of gaining positive customer reviews from both online and word of
mouth. The marketing can be controlled by the customer service teams and ensure
trustworthiness of the business organization (Shire, Holtgrewe and Kerst 2017). Positive
customer experience is considered to be one of the most vital elements for the success of
marketing activities. Positive customer experience is said to be more influential as compared
to advertising and marketing. It is an opportunity for the business organization to deliver
emotional experience. The marketers must assess the feedback from the customer and make
necessary improvements (Gnewuch, Morana and Maedche 2017). This also helps the
business organization to understand the expectations of the customers. By fulfilling their
needs and demands, the business organization will be able to increase its sales by improving
its products and services. One of the most important aspects of social media campaigning is
to work fast, it enables the organization to connect with the customers quickly and voice their
experiences online (Menguc et al. 2017). The company can receive response from the
audience with 24 hours. The organization also needs to provide training and development to
the front line staffs as they represent he brand to the customers. The staffs and the employees
must be skilled and trained at conflict resolution and customer handling. They must have a
winning personality so as to ensure that they effectively handle the customers as well as the
negative comments. This must be properly addressed and turn them into loyal customers
(Kelloway and Myers 2019).
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12MARKETING PLAN OF ALDI
Conclusion
Therefore, from the above analysis it can be stated that Aldi needs to overcome the
threats and weakness by taking advantage of the prevailing opportunities and utilize the
strengths of the business organization to overcome the weakness and the threats from the
external business environment. The report has formulated the objectives for the business
organization and the key performance indicators which will be used by the organization to
measure the performance and effectiveness of the marketing campaign. The key strategies to
be implemented by the business organization have been stated in the report. These strategies
will help the business organization to meet the goals and objectives for the period of 12
months. Further, the report has marketing mix strategies for the business organization; it has
provided detailed description of the product, price, place and promotion strategies for Aldi to
as to meet the goals and objectives set for the organization. Lastly, it has provided detailed
recommendations and suggestions to improve the levels of customer service. It has been
recommended to enhance customer experience through online promotions and campaigns to
engage with the customers. The staffs and employees of the business organization must have
the skill and the knowledge the win the customers and deal with negative comments. This
will enhance business operations and help it to meet the preset goals and objectives.
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