Marketing Strategy and Application: A Comparative Analysis of Aldi and Tesco

This report examines the marketing strategies employed by Aldi and Tesco, two prominent retail giants in the UK. It delves into their respective marketing mix approaches, comparing their product offerings, pricing strategies, distribution channels, promotional tactics, and customer service. The report further analyzes the effectiveness of their marketing plans in achieving business objectives, highlighting key tactics and strategies that have contributed to their success. By comparing and contrasting these two companies, the report provides valuable insights into the application of marketing principles in the retail industry.

Marketing Strategy and Application
1

Contents
Introduction......................................................................................................................................3
PART A...........................................................................................................................................4
P3: Compare the ways in which different organisations apply the marketing mix to the
marketing planning process to achieve business objectives........................................................4
M3: Evaluate different tactics applied by organisations to demonstrate how business
objectives have been achieved.....................................................................................................7
PART B...........................................................................................................................................8
P4: Produce and evaluate a basic marketing plan for an organisation........................................8
M4: Produce a detailed, coherent evidence-based marketing plan for an organisation............12
D2: Design a strategic marketing plan that tactically applies the use of the 7Ps to achieve
overall marketing objectives......................................................................................................19
Conclusion.....................................................................................................................................22
References......................................................................................................................................23
2

Introduction
Marketing refers to the process of promoting and advertising the products of the company. This
enables the company to increase the sales of the products to a large extent and build an image in
the market. The success of the company depends on the effectiveness of the marketing plan
designed by the marketing manager of the company. Different companies follow different
marketing process and use different marketing mix strategies for attaining the set goals and
objectives of the business. In this report, comparison of the marketing process and marketing mix
of Aldi and Tesco plc will be made. Both the companies deal in the retail market and are situated
in UK. The marketing manager of Aldi needs to formulate an effective marketing plan which
covers all the aspects and would help the company to grow and develop in the market.
3

PART A
P3: Compare the ways in which different organisations apply the marketing mix to the
marketing planning process to achieve business objectives.
The marketing mix is the strategy adopted by every organisation for meeting the needs of the
customers and achieves the target goals and objectives. It is a process of identifying and
assessing the needs of the customers so that it can make the availability of those can be
effectively implemented in the organisation with the adoption of marketing mix strategy to
satisfy the customers and earn high revenue.
Elements of Marketing
Mix
ALDI TESCO
Product The products of the Aldi are
made in accordance with the
needs of the customers as the
desires of the customers are
fulfilled under this. The
products and its specification
are as per the needs of the
customers so that utmost
satisfaction is provided to the
customers (Blythe, 2012).
Tesco provides the customers with
those products that provide the
customers with those services that
provide them with utmost
satisfaction. The main motive of
the organisation is to avail high
profits in the organisation.
Price The prices of the products are
set as per the affordability of
the customers in the
organisation. The prices of the
products are fixed according to
the needs of the customers.
The price of the products of Tesco
is very high and no discount is
assured to the customers as it
[refers to earn high profits and
attracts those customers those who
can afford to purchase the products
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Discount is also provided to the
customers to make the
customers get attracted to the
services and products.
and services of the organisation.
Place Aldi produces it products at
those place where the
requirements of customers is
high. This leads to attraction of
the customers and make the
high level of production in the
market.
It produces and sells its products
mostly in the UK with the help of
local suppliers. This also makes
the local suppliers make the
customers get influenced by the
services that have been provided
by the organisation.
Promotion The promotion of the products
is made with the adoption of
advertisement techniques. The
promotion of the products is
made to make the customers get
attracted to the products and
services. This reduces the cost
of the products and services.
The promotion of products is made
with the adoption of new
technologies in the market. It helps
in attracting the customers those
who can afford the products at
high price. The promotion of the
products is made with the
development of advertisement
programs so that it can attract the
customers and earn high profits in
the organisation (Armstrong, et.
al., 2015).
Physical Evidence The records of the sales and
purchases have been made in
the organisation to meet the
requirements of the
This organisation keeps the records
of the customers to resolve the
issue that can take place in future.
The records of the customers and
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organisation. This help in
keeping the record of the
organisation that can be used
for the further acquaintance.
This also makes help in
increasing the number of
customers as their data and
information have been kept in
safety by the organisation.
purchase or sale of products and
services are saved online so that
the information and data of the
customers do not get lost and
loyalty of the customers to the
brand could be maintained.
People The people in the organisation
are made to be provided with
training so that it can identify
the requirements of the
customers that help in
production of the required
products and services that are
demanded by the customers. the
organisation consider the
human resources at its pivotal
part.
The organisation makes the
manpower of the organisation to
be provided with healthy
environment so that it can increase
the productivity in the
organisation. This help in
attracting the customers by the
employees.
Process The process adopted by the
organisation needs to be cost
effective so that it can attract
the customers and lead to
improve the production in the
organisation.
The process of the organisation is
made accordance to the customers
so that they ar provide with high
level of gratification with its
products and services in the
organisation (Babin and Zikmund,
2015).
6

7

M3: Evaluate different tactics applied by organisations to demonstrate how business
objectives have been achieved
Various tactics and strategies have been developed by the organisation for achieving the
objectives of the organisation and make it attain high profits. The tactics are-
Creating visions for the employees- The objectives and mission of the organisation need to be
made clear to the employees in the organisation. This help in creating a vision for employees in
the organisation. The production of the organisation gets increased with the involvement of
employees in the organisation (Bartlett, 2017).
Measuring the performance and progress- The performance of employees needs to be
evaluated on a daily basis so that it can develop the strategies that help in meeting the needs of
the customers. the employees are to be provided with training and development so that they can
make the effective utilization of their skills for improving their performance and its standard in
the organisation.
Communicating the objectives- Each and every employee in the organisation needs to
communicate to each other and they should be made known for the objectives they are
responsible to achieve in the organisation. This help in reducing the communication gap among
the employees and the needs of the customers can be easily evaluated. This achieves the targets
of the organisation and objectives can be easily communicated.
Monitoring the progress- The progress of the organisation and employees in the organisation
needs to be assessed timely so that it can make identify the areas that need to be developed for
achieving target goals in the organisation. The strengths and weakness of the employees are
evaluated so that they can be provided with the motivation that helps in reducing their weakness
and improve their efficiency. This increases the productivity of Aldi and leads to triumph its
target objectives (Rossi, et. al., 2012).
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PART B
P4: Produce and evaluate a basic marketing plan for an organisation.
A marketing plan is a written document designed by the company to outline the marketing
strategies as well as tactics. The marketing plan is designed for a particular and specific period of
time. It is a plan which includes all the aspects relating to marketing. The business becomes more
effective when an appropriate marketing plan is prepared and implemented by the company.
Marketing plan makes the entire marketing process easier for the company (Bayer, 2017). It can
also be defined as the roadmap which enables the company to successfully meet out the aims and
objectives of the business.
(Source: Bayer, K., 2017)
9

Importance of marketing plan
Marketing is an important function of the business which requires being highly focused on
getting effective results. A marketing plan gives all the details related to the marketing and is
important for the business in following ways:
 Marketing plan enables the manager to formulate new ideas and concepts for the business
and explains the ways in which productivity of the business can be increased.
 It helps the management to effectively achieve the desired goals and objectives of the
business.
 Marketing plan enables the company to analyse the market and identify the needs as well
as preferences of the customers and formulate strategies to meet them.
 It also enables the management to integrate and interlink all the activities as well as
functions within the organisation (Engelen and Brettel, 2011).
 The needs of the different target market are met with the help of the marketing plan.
 Effective marketing plan enhances the operations of the business and provides a
competitive edge to the company in the market.
 It enables the management to forecast the results of the operations and activities.
 It helps the company to set the prices of the products according to the prevailing
competition in the market.
 Marketing plan acts as a guide for the business.
10

Marketing Plan
Objectives The main objective of the company is to
promote and advertise the high-quality
products of the company in the market. It aims
at maximising its share in the market and
competes in the highly competitive business
environment.
Products Aldi Company provides products dealing in the
retail industry. It provides products of different
brands and of high quality which is the positive
point for the company.
Customers The target audience of the company are the
households which want the grocery products
and items (Garoufallou, et. al., 2013).
Competitors There is a high competition level in the retail
market. The main competitors of the Aldi
Company are Tesco, Asda, etc.
Positioning The company positions itself in the market by
creating a brand image in terms of providing
high-quality products at reasonable prices.
Pricing The prices of the products of the company are
set in accordance with the competitive prices
prevailing in the market. The prices of the
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competitor companies are analysed and the
prices are set accordingly.
Promotion Various promotional techniques and methods
are used by the company to promote and
advertise its products in the market. Example:
discount offers and other promotional tools are
adopted by the company.
Budget The budget of the marketing plan is set so that
all the activities and tasks are carried out
within the set limit. The approximate budget
for the marketing plan is around £ 40 m which
is set by the company.
Action plan The main activity to be performed by the
management will be mentioned so that
activities are planned and performed
accordingly. Action plan decides the timeframe
within the activities will be performed to attain
the actual goals and objectives (Akdeniz, et.
al., 2013).
12

M4: Produce a detailed, coherent evidence-based marketing plan for an organisation.
Executive summary
The marketing plan has been developed for the Aldi Company which will cover all the aspects
and elements of marketing. A marketing plan is an essential part of the marketing department
which enables the entire company to take effective decisions regarding every department. The
marketing plan includes the internal as well as external analysis of the business of Aldi and
provides an insight to the management regarding the current situation and future aspects. It also
enables the management to target the market and provide products accordingly.
Company overview
Aldi is a company which is situated in UK and deals in the retail industry. It operates 10000
stores across 20 countries. It is German-based Company and has become a company operating its
business on an international level with the help of its effective marketing strategies and plans.
Aldi is a large scale operating company which has many competitors in the market. The main
competitors of Aldi are Tesco, Asda, etc. The company earns around €50 billion from its
operations.
Current Marketing Situation Analysis
The analysis of the current situation includes analysing and identifying the current position and
situation of the company in the market and also analysing the factors which affect the operations
as well as functions of the business. It includes the following analysis:
A: SWOT analysis- It includes the overall examining of the situation on the internal level. It
includes factors which prevail within the business organisation and actions can be taken to
control them to get effective results. It includes the internal analysis i.e. strengths and weakness
and external analysis i.e. opportunities and threats.
Internal Strength Weakness
13

 Aldi has a good brand image and
a name in the market.
 The products are made available
to the customers at reasonable prices
which attracts a large number of
customers (Heckroodt, 2014).
 The costs and expenses of the
operations are low in comparison to
other companies.
 Operates its business worldwide.
 Large retail companies like
Tesco and Asda covers the identity
of Aldi.
 The company targets less
number of customers due to the less
availability of the products.
 Quality is considered to be
low in comparison to other retail
companies (Todar, 2014).
External Opportunity Threat
 The company can focus on
making investments in the
advertisements and promotions to
compete in the market.
 It has the opportunity to grow in
the markets of Asia, Africa etc.
 Companies having online
shopping websites can possess a
threat to the company.
 It cannot cater its products
to the individuals focusing on the
complete shopping experience
(Goldsmith, 2015).
 Suppliers are the risks
factors for the company.
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B: External analysis
For analysing the external environment, PESTLE analysis method is used which enables the
management to know the various factors prevailing in the outer business environment. They can
be explained as follows:
Political- The stores of Aldi are situated at locations which are having a favourable political
situation with a relatively low political conflict. The globalisation concept is adopted by the
government which acts as a supportive action for the company.
Economic- Brexit has imposed a huge effect on the currency of the country as a result of which
the customers and the individuals are willing to buy the products at reasonable prices.
Liberalisation enabled the company to reach out a large number of customers in different
markets.
Social- The demands and preferences of the customers are considered and the products are made
available accordingly. The company participates in the social activities, through which it is able
to build a good brand image in the market and gain a competitive edge (Chand, 2017).
Technology- The Company needs to follow the advanced and latest technology to compete in
the rapidly changing business environment. Self-service checkouts are required to be
implemented to save the time for the customers.
Legal- The involvement of the company in the legal matters have affected its brand image in the
market. For example, mislabelling of the particular product had created many problems for the
company.
Environmental- The Company makes sure that no harm is done to the environment due to its
activities and operations. It contributes its portion towards the betterment of the farmers.
15

Objectives
The main objective and aim of formulating and designing a marketing plan are to increase the
company’s reach in the market and cover a large number of customers. It also aims at
implementing latest and advanced technology for increasing the satisfaction level among the
customers (Lorette, 2017). The objective is to build a brand image in the market and provide its
cost-effective products to the customers. Strategies and plans are designed according to the set
objectives and aim for enhancing the business.
Strategy
The company formulates and implements effective strategies to enhance the performance of the
business. Marketing strategies are designed for promoting the products as well as services of the
company in the market. It includes sales promotion, internet marketing, maintain good public
relations etc. The company has adopted a strategy for the cost to build an image in the market in
terms of cost-effectiveness. The strategy is to analyse the competitors’ strategy and develop
differentiated products and make them available to the customers at reasonable prices.
Segmentation, targeting, and positioning (STP)
Segmentation- The Company has chosen the segment who wants the grocery products at
reasonable prices.
Targeting- The company targets audience which is willing to purchase grocery products at
competitive prices. The middle-class group is targeted to provide the products. The target
audience is mainly the households.
Positioning- Positioning is the process which includes developing an image of the company in
the customers’ minds. The positioning strategy of the company is to position itself as the retailer
selling its products at reasonable prices (Mind tools, 2017).
Tactics & Action
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The tactics which are used by the company are the adoption of the integrated promotional mix
patterns for advertising and promoting the products of the company in the market. High-quality
products at reasonable prices are the main tactics used by the company. Different channels are
used by the company to communicate with the customers. Actions can be taken to implement the
formulated marketing strategies to enhance the performance of the company (Mihart, 2012).
Action plan
Activities Start date End date Duration Description
Market research 1 March 2018 9 March 2018 9 Days The appropriate
research will be
conducted in the
market to collect the
relevant and required
information.
Identify the target
market
10 March 2018 14 March 2018 5 Days The company will
identify the target
market and will make
decisions regarding
the serving of the
products to the
targeted audience.
Develop the
products
15 March 2018 20 March 2018 6 Days After analysing the
needs of the target
audience the
company will develop
a range of the
products to be made
17

available to the
customers.
Set the pricing 21 March 2018 23 March 2018 3 Days The prices of the
products are set by
the management of
the company after
analysing the pricing
strategies of the
competitor
companies.
Promote and
market the
products
24 March 2018 28 March 2018 5 Days Various promotion
and advertising
techniques will be
used by the company
to promote the
products and increase
its share in the
market.
Control actions 29 March 2018 31 March 2018 3 Days The plans and
strategies will be
reviewed and the
actions will be
monitored, on the
basis of which the
control actions will be
taken.
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Budget
Budget is the plan in which all the financial resources are managed and allocated to each activity
of the marketing plan.
Investment area Total cost
Market research
Marketing cost
Product development cost
Implementation plan
£10 m
£ 15 m
£10 m
£ 5 m
Total cost £ 40 m
Control
Control actions are already planned by the administrator and the controller for reducing the
negative effects and making the marketing plan more effective and beneficial for the business.
The plan is examined and control actions are taken to get positive results from the correct
implementation of the marketing plan. Every activity of the marketing plan will be monitored so
as to ensure effective results and positive outcomes.
Conclusion
It has been summarised that marketing plan covering all the required aspects of promotion is
important for the business as it enables the company to take wise actions and decisions for the
betterment of the business. The overall marketing plan will enable the company to gain a
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competitive edge in the market and cover a large number of customers in different targeted
segments.
20

D2: Design a strategic marketing plan that tactically applies the use of the 7Ps to achieve
overall marketing objectives.
All the 7Ps of the marketing mix are designed and used by the company to promote their
products as well as services in the market and cover large customer base. The strategic marketing
plan with the application of 7Ps can be explained as follows:
Product The product is the main element which is
provided by the company to run its business in
the market. Aldi Company provides a wide
variety of grocery products of high quality to
the customers. The company aims at high-
quality retail products which attract large
number of customers. Products are required to
be in accordance with the customers’ needs
and demands.
Price It includes the cost which is decided by the
company for its products. The prices of the
products are decided according to the
competition prevailing in the competitive
business environment. The best prices are set
for the products so as to attract a large number
of customers. The company makes use of
pricing technique which is based on the cost
(MBA Skool, 2017).
Place The company operates its business in various
countries and has many retail stores across the
countries. Aldi makes use of different channels
for promoting and distributing its products to
21

the customers.
Promotion Various tools and techniques are used by the
company to promote the products in the
market. Internet marketing, sales promotion,
personal communication with the customers is
some of the techniques which are used by the
company to advertise and promote its products.
Promotion is the main element which is
focused on the management as it enables them
to enhance the performance of the business and
increase the profitability. Special discount
offers are developed for marketing the products
and attracting the customers (Howell, 2015).
People There are various employees and staff
members working within Aldi. Employees are
the key elements of the company as they play
an important part in performing all the
activities and operations of the business.
Effective and efficient employees give a
competitive edge to the company in the market.
The marketing department focuses on the
marketing and promotion of the products in the
market.
Process The company focuses on the process of
customer satisfaction. This focus enables the
company to make the customers available with
high-quality products and services and satisfy
22

their wants and demands. Aldi keeps a wide
variety of products of different brands which
enhances the product selection process of the
customers.
Physical evidence The company gives full support in case of any
issue with the product and solves the
grievances and issues of the customers in a
polite manner. This builds the image of the
company in the market. The products are
priced in the most cost-effective manner so as
to attract a large number of customers. The
positive points of the company are the
evidence which provide the company a
competitive edge in the market and ability to
focus on enhancing the performance of the
business (Bradley, 2017).
23

Conclusion
From the above report, it has been concluded that developing a marketing plan is an important
aspect of the development and growth of the business to a large extent. A marketing plan
provides a direction to the companies related to each aspect of marketing. It also enables the
company to make decisions regarding the future of the business and enables the management to
effectively handle the current situation of the business. Every organisation follows a different
marketing mix pattern so as to attain the business goals and objectives and achieve the desired
outcome. Aldi and Tesco are the retail-based companies in UK and have different marketing mix
patterns for attaining their set goals. Their main aim is to gain a competitive edge in the market
and enhance the performance of the business. Choosing the best marketing mix and preparing a
suitable marketing plan are the two most important aspects considered by the management of
Aldi and Tesco to make the business more profitable.
24

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