Aldi's Marketing Strategy in Australia

This assignment analyzes Aldi's marketing strategy and its success in the Australian grocery market. It examines Aldi's unique approach to operations, pricing, product selection, and branding, drawing on various sources including academic research, industry reports, and news articles. The analysis highlights key aspects of Aldi's business model, such as its focus on efficiency, low overhead costs, and private label products. Students are encouraged to evaluate the effectiveness of Aldi's strategy and its impact on the competitive landscape.

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Aldi’s Marketing Strategies
Name
Institution
Date

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Executive summary
This paper divulges on the marketing strategies that enable a company to maintain its
competitiveness in the market. It more specifically focuses on a grocer, Aldi which operates in
Australia and is based in Germany. The paper gives a brief description of the company citing
some of its unique aspects such as discounted prices. Aldi is a company that has maintained its
leading position due to its marketing strategies. However, it retention of this position may be
challenged by competitors with similar competitive benefits as Aldi’s. Nevertheless, it has a
number of options that it could utilize such as online shopping facilities.

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Table of Contents
Executive summary.................................................................................................................................2
Introduction.............................................................................................................................................4
Background to the company....................................................................................................................4
Marketing analysis...................................................................................................................................6
The Nature of Aldi’s Marketing Strategies since it began...................................................................6
Strategic Marketing Options for Aldi moving forward........................................................................7
Conclusion...............................................................................................................................................8
Bibliography............................................................................................................................................9

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Introduction
Marketing in straightforward definitions can be depicted as offering the correct item at a perfect
place at the opportune time and with a privilege price. In increasingly aggressive markets,
shoppers make decisions on what products they wish to buy and from what brands. For a
company to reach its corporate goals, it has to find out what buyers want and afterward recognize
the most ideal way it can utilize to satisfy these necessities and wants. The management experts
accentuate on the 4Ps of promotion which are frequently constitutes the marketing blend. These
4Ps are product, price, place, and promotion. A promotion mix is an imperative tool to influence
an effective promotion plan to realize an effective product offering. The four Ps of promotion
can help accomplishing the corporate targets of customer satisfaction, sales and profits. Building
a competitive edge through marketing strategies can be a challenge. Clear objectives should be
set as they are vital to the performance of the promotional activities and the effectiveness of the
marketing strategies. This paper explore Aldi Company in Australia, reviewing its marketing
strategies and giving recommendations and the new strategies it may incorporate.
Background to the company
Aldi, a global and privately-owned corporation, is a grocery general store chain with its
headquarters in Germany. The enterprise began in 1913 with a grocery shop in Essen, Germany
and venture in Australia in 2001 (Aldi.com.au. 2017, p.8). By 1960s this privately-owned
company was extended to 300 stores in Germany. At this point the enterprise was divided into
two, Aldi Süd based in Mülheim a der Ruhr and Aldi Nord whose headquarters is in Essen. The
business was divided over a difference on whether or not cigarettes should be offered in the
stores. These two associations now operate independently. The no-frills shopping for groceries
encounter concentrates on clients initially providing quality nourishment they're pleased to serve

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their family, responsive client benefit, regular low costs and a brisk and-simple shopping
knowledge with just four to five paths and every one of the essentials. The organization conveys
the week by week unquestionable requirements and display them in their planned dispatching
boxes to enable spare to time and assets to restock racks. Customers discover more than ninety
percent of some basic needs it offers are under the Aldi elite trademarks, hand-chosen by Aldi to
guarantee that its items meet or surpass the local brands on quality, taste and, obviously, cost.
That implies a customer doesn't need to stress over which ketchup brand or Greek yogurt mark is
ideal, in light of the fact that Aldi has extraordinarily curated the best item for them.
Furthermore, ALDI partners with a wide assortment of farmers, including some nearby
agriculturists to offer a wide assortment of new, in-season deliver, including natural fresh
vegetables and fruits. Many of Aldi's clients have consistently found that they can spare time and
cash without giving up quality (Wood, 2011, p. 77). At Aldi, these little differences are having a
major effect in the store and in customer pockets. Aldi has accomplished this through volume
acquiring. It concentrate on the most usually acquired basic supply products to facilitate the
shopping task for customers. This takes into account sizable rebates which are passed
specifically to clients. Also, it has exclusive brand products. Most of what shoppers find in stores
are select brand items. Tried in the Aldi Test Kitchen, these items taste the same or superior to
national brands and are upheld by Aldi's twofold assurance. Likewise, Aldi keeps away from
shrouded costs. The store avoids unnecessary services like keeping money, drug stores and check
cashing to save funds for its clients. Finally, each week, Aldi offers many nourishment and non-
sustenance items at great value that integrate entirety from miniature kitchen machines and
occasional items to cultivating tools and furniture (Ausfoodnews.com.au. 2016). These and other
marketing strategies have built Aldi a competitive advantage.

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Marketing analysis
The Nature of Aldi’s Marketing Strategies since it began.
The commerce philosophy by Aldi is to focus on essential ventures and avoid the unnecessary
with a specific end goal to give the clients most extreme conceivable investment funds (Dunford,
Palmer, and Benveniste, 2005, p. 12). Rather than broadening its opening periods like different
rivals in the Australia, all Aldi outlets work within restricted opening periods which appears a
clear vital intention. There are no additional services at all Aldi stores, for instance lottery
terminals, photograph booths, kids' play region, lavatory, currency trades, vacuuming services,
news operator, tobacco stands, a different client service counter or a bistro. This is because, for
Aldi, these facilities have expenses which would increase the end expenditure to the buyer. In
any Aldi store, there three to seven staff members who run the all the operations of the outlet
which is contrary technique to different grocery stores that have many staff members to provide
elevated requirements of client benefit. The firm has accomplished low costs while dealing with
employees’ turnover proportion. Such low employee levels also lower operating costs (Müller-
Lankenau, Wehmeyer, and Klein, 2006, p. 30).
The fundamental concept that influences Aldi's way to deal with work is the idea of limited
variety. The Aldi’s store estimated floor size is moderately small contrast with the adversary
merchants’ floor space. The standard Aldi outlet has a typical design with just four shopping
paths likewise the bundling and displaying goods methodology at Aldi is financially savvy.
Conversely, the stores by and large have free parking spots which draws in clients
fundamentally. Aldi incorporates the number of inhabitants in the region which ought to be more
than thirty thousand. Additionally, the stores should be accessible via good transport and should
be visible from highways (Dibb, and Simkin, 2011, p. 100).

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The sales theory of Aldi is selling products that match the quality of other brands in Australia.
Branded items have a lower operating margin. Aldi has embraced a tactic to offer products which
are proportional to brands. The key success objective for the enterprise is to attract buyers which
hinges on aggressive pricing. As a rebate grocery chain, aggressive pricing constitutes the core of
Aldi's selling ideology. Aldi relies on economies of scale. This implies, purchasing items in vast
amounts so it provides power for trading the most ideal value which enables Aldi to offer
competitive prices (Gupta, 2016, p. 66).
Strategic Marketing Options for Aldi moving forward
The Australian industry standouts among the most competitive and established (Armstrong, et al,
2014, p. 6). However, it dynamics change frequently. Notwithstanding Aldi's progress in
penetrating the Australian grocery market and assuming control over a large market portion, the
elements of regularly changing business world can impede its growth (Jokaroh, 2016, p. 18). The
Australian purchaser landscape is changing. These buyers predominately need great quality,
choices and convenience. They are informed, universally connected and willing to pay for brands
that they perceive to have a constructive outcome on society, with an inclination to feasible and
domestic production (Ibisworld.com.au. 2017). Also, Lidl, another rebate grocery store chain
which has a larger number of stores than Aldi around the world, has plans to venture in
Australia. Lidl has worldwide purchasing power, aptitude, and experience, yet offers even lower
costs to customers, similar advantages as Aldi.
In such vicious rivalry it is difficult to upgrade and grow a company's market share as well as
maintaining competitive advantages and strategies. Quality of products is a vital determinant of
how well the organization can retain and grow its market share. In this industry, additional
services and quality have a positive correlation with organization performance. Rationalizing

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along these comparable lines, quality enhancement increases competition among the leading
grocers (Euromonitor.com. 2017). Yet, there is a hazard related with that tactic as regular
fluctuations in the commerce methodology can prompt loss of grasp on the controlling and
monitoring of the corporation. Besides, Aldi should develop clear strategies on market targeting.
However, Aldi has an incredible scope in offering incentive services. Its internet shopping
facility is one such value adding services. Product delivery and online shopping are services that
can be effectively executed in this internet era as the other major grocery stores are using such
strategies.
Aldi should maintain its operational efficiency by enhancing its abilities that help its operations
regarding appropriate and legitimate usage of its asset maximization of the resources. The
uniqueness about Aldi is that they are particular as far as cost cutting so clients can buy products
at modest costs without bargaining the quality. Besides, Aldi is a unique discounted store seeking
to implement its cost leadership plan. It has used it to reduce the cost of the operation in running
the store. With a lot of alternatives available, low costs and great quality, consumer loyalty can
be an issue for the firm (Inside FMCG. 2016). Different point-based gifting frameworks and
loyalty cards can be acquainted to guarantee stability in market share retaining. The ‘swap and
save’ campaign can be upgrades to assist by redesigning the product framework (Hogan, 2017,
p.16). Presently, Aldi is demonstrating the value distinction on the daily papers and commercials
which ought to be shown on shopping receipts to advise the clients the amount they have spared
by shopping in Aldi.
Conclusion
Marketing strategies determine a company’s ability to survive, especially in a competitive
market. How well a corporation coordinates its resources to implement its marketing mix can be

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a source of competitive advantage for a company. Aldi, a multinational firm whose operations
are focused in the UK, Germany, and Australia among others. It operates in the grocery industry
that is currently undergoing dynamic changes in Australia. Aldi has managed to maintain
competitive strategies that has made it a leading company in its industry. It offers products at
relatively low prices and simplifies the shopping experience by maintain simple stores that are
easily accessible. However, as the environment changes, new rivals are venturing into the
Australian market. Lidl which has similar competitive advantages as Aldi could become a strong
adversary. Apart from maintaining its current strategies, Aldi could also utilize the internet to
offer online shopping options.

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Bibliography
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