Principles of Marketing: ALDI Pestle and SWOT Analysis

PRINCIPLES OF
MARKETING

Table of Contents
INTRODUCTION.......................................................................................................................3
Pestle analysis of ALDI......................................................................................................3
SWOT Analysis..................................................................................................................7
Recommendations........................................................................................................................9
CONCLUSION..........................................................................................................................10
REFERENCES..........................................................................................................................11

INTRODUCTION
The basic principles of marketing consist of product, price, place and promotion. Together,
these four principles are known as the 4 P for its marketing, and include the integration
of marketing. For a marketing strategy to be effective, the four components must be used
correctly. This report covers pestle analysis and SWOT analysis of the company and the
recommendations in relation with the threats and opportunities in the SWOT analysis. The
brand is common and owned by two families whose nationalities is German and who is
discounted supermarket chains. The company is a private company and the industry in which
they operate in is retail industry. They have more than 10,000 stores in 20 countries and the
turnover of the company is around € 50 billion. The company was founded by Karl and Theo
Albrecht in the year of 1946. Both of them are brothers and they took after the store their
mother had which was in Essen. In the year of 1960 they split the business into two groups
that changed and became Aldi Nord with its headquarters in Essen and Aldi Sud whose
headquarters was in Mulheim The mission statement of ALDI describes our aspiration to
continually set standards for food retailing and to further expand the market position of the
ALDI North Group. Simplicity, responsibility and reliability are the three core values
embedded in the mission statement. The vision of the company is to enable Australian
shoppers to live richer lives for less. All people, wherever they live should have the
opportunity to buy everyday groceries of the highest quality at the lowest possible price. To
put it simply, we offer our customers a smarter way to shop (Abbas, Zubair and Sarwar, 2018).
Pestle analysis of ALDI
Political Factors-
These factors affect the probability of survival of the company and impact on the
profitability of the company. This is because these types of factors are uncertain and there are
changes in the current political regimes in the decisions taken by the government. Sometimes
these factors not only affect the business of host country but also affect the business of other
countries in which the country is maintaining their operations. Company needs to consider
these factors before they invest into other markets.
 The stability of political factors in the concerned country over a period of time.

 The politicians of the country and their interest such as if or not they will interfere in
the business and lead to corruption, repercussions. This may lead the business to face
impeachments of government employees who work on high level.
 There are some laws such as contract law which strictly guides the company for what
they are allowed to do and what are the restrictions imposed on them. For instance
some countries have restriction on selling alcohol and some asks them to fulfill the
demand of specific condition (Alserhan, Althawadi and Boulanouar, 2016).
 It is necessary that the intellectual property is protected. For instance government of
many countries do not formulate policies for intellectual property of business which
makes the business loose the interest of many of the investors.
 The barriers regarding trade that the host country will help them to protect ALDI.
Many of the companies are affected by these barriers as many of the partners of the
trade will harm the exports.
 High level of taxation will demotivate the companies from earning high amount of
profits,
Economic Factors-
These factors are concerned with the level of inflation, condition of the economy and
rate of interests. These factors are concerned with the aggregate demand and aggregate
investment. These factors can either make a company profitable or make them incur a huge
loss. Before investing company must look for these areas.
 The system and process of the economy and it is required to be assessed that
monopoly, oligopoly is similar to a perfect system of economic competition.
 Growth of GDP rate will help the company to analyze how fast will the company grow
in the future.
 The rate of interest will reflect that how many individuals will borrow and invest in the
business. If the level of investment is high then the probability is more that the
company will achieve success.
 The efficiency of market on the basis of financial aspects will determine that how
easily the company will be able to raise capital from the market in comparison with the
demand and supply in the market (Bowie and et.al., 2016).