Social Marketing Strategies & Applications

This assignment delves into the concept of social marketing, examining its theoretical foundations and practical applications. It encourages students to critically evaluate the strengths and limitations of social marketing as a strategy for driving public engagement on important social issues. The analysis draws upon relevant academic literature and case studies to illustrate the complexities and nuances involved in implementing successful social marketing campaigns.

MARKETING PRINCIPLE
(A CASE STUDY ON ALDI, UK)
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Table of Contents
Introduction:....................................................................................................................................4
Task 1 – Understanding the concept of marketing:.........................................................................4
1.1 Elements of marketing process in ALDI:..............................................................................4
1.2 Evaluation of the benefits and costs of a marketing orientation for ALDI:..........................5
Task 2 – Using the concept of segmentation, targeting, and positioning:.......................................6
2.1 Micro and Macro-Environmental factors that influence marketing decisions of ALDI:......6
2.2 Proposing of segmentation criteria for those markets in which ALDI currently is not
operating:.....................................................................................................................................7
2.3 Targeting strategy for a chosen product or for a chosen service of ALDI:...........................8
2.4 Demonstrate how buyer behavior affects marketing activities in different buying situations
for ALDI:.....................................................................................................................................8
2.5 Proposing new positioning strategy for ALDI:.....................................................................8
Task 3 - Understanding the individual elements of the extended marketing mix in ALDI:...........9
3.1 How products are developed to sustain competitive advantage in ALDI:............................9
3.2 How distribution is decided to provide customer convenience in ALDI:.............................9
3.3 How prices are set to reflect ALDI’s objectives and market conditions:............................10
3.4 How promotional activity is integrated to achieve marketing objectives in ALDI:............10
3.5 Analyzing the additional elements of the extended marketing mix in ALDI:.....................11
Task 4 – Use of Marketing Mix in different contexts of ALDI:...................................................12
4.1 Plan and recommend marketing mixes for the two different segments in consumer
markets:.....................................................................................................................................12
4.2 Exemplify differences in marketing products and services to businesses rather than
consumers:.................................................................................................................................13
4.3 Show how and why international marketing differs from domestic marketing and show
how you could implement a marketing strategy to market abroad:......................................13
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Conclusion:....................................................................................................................................14
References.....................................................................................................................................15
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Introduction:
This report mainly deals with the diverse aspects related to one of the largest supermarket chains
in UK called ALDI. Many elements such as the marketing process, the organizational audit, etc.
of ALDI is explained in the report. The models that are used for this explanation are the SWOT
analysis, the external environment analysis, the criteria of company segmentation and the
positioning related to the marketing mix of the company (Jobber & Ellis-Chadwick, 2012). This
report also explains the difference of analysis between the international and domestic markets as
well as the difference between the consumer and business market.
Task 1 – Understanding the concept of marketing:
1.1 Elements of marketing process in ALDI:
The marketing process is considered as the total procedure by which many activities linked with
the marketing field are concerned. The process of marketing consists of various aspects and
stages and it also consists of various elements (French, 2010). The elements are a part of the
process, and it is followed one after another, and it fulfils the marketing process for the firm
ALDI.
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Situation analysis consists of scanning both the internal as well as external environment, and
thus, the financial audit of a firm like ALDI takes place. This is verily the first stage of their
process of marketing, and it is known as situational analysis (Armstrong, et al., 2014). For
understanding the external analysis of its consumers, finding out the competitive scenario is
necessary along with various other external elements such as the PESTEL analysis of the market.
The PESTEL analysis would mean the analysis of the organization based on the political,
economic, social, technological, environmental and legal implications of the location of the UK
towards ALDI.
The main organizational objectives of ALDI is to facilitate and maintain the competitive pricing
strategy for all its products and create a pool of customers (Wang & Pizam, 2011). All the
products of ALDI maintain the VRIN concept, which means, all the products are valuable, rare,
inimitable and non-sustainable. The employees of the organization are trained appropriately to
enhance the level of customer satisfaction. The last aim of the company is to promote the
business in an ethical manner.
The organization called ALDI also decides to offer value for money to every product for the
customers. There are some expectations of the customers in relation to the payment, which they
make (Ennew & Waite, 2013). The value of the product must have a link with the amount of
money they are paying. If the company concentrates only on the profit margin and reduce the
product quality, then the company might lose the valuable customers owing to the deterioration
in the value for money parameter.
The organization can only fulfill its objectives if it follows the marketing elements with a proper
precision. The marketing elements consist of segmentation, positioning, and targeting. ALDI
also focuses on satisfying the 7Ps of marketing in order to fulfill the organizational objectives.
1.2 Evaluation of the benefits and costs of a marketing orientation for
ALDI:
Marketing orientation is a newbie concept of orientation that is focused mainly on the
requirements of the consumers. In the previous days, there were diverse types of orientation like
the product orientation, the orientation of the production house and the sales orientation (Allyson
Dooley, et al., 2012). The production orientation deals with the production of finished goods of
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the firm whereas the sales orientation is dependent on the enhancement of sales because the sales
strategies are often not enough for satisfying the customers’ requirements. The product
orientation, on the other hand, indicates the development of new and innovative products in the
market.
Organization's marketing orientation's
ALDI follows the strategy of marketing orientation as its organization’s strategy and policies.
The policy is somewhat digital in nature, and it has changed over time with many customers
going digital and wanting to buy food products online (Corner & Randall, 2011). The concept of
digital marketing has come into ALDI since the year 1990. This digitalization of ALDI brands
has helped the promotion of brands in Italy.
Following are cost and benefits of market orientation:
Benefits:
 It helps in meeting consumer demands and expectations with efficiency and this
technique helps to Aldi to expand their businss in UK and outside of country.
 This strategy is also helps to organization to add value in it customers services and focus
in satisfying customers with high quality products.
Costs
 In order to make marketing orientation company have to conduct market research
which mainly includes high expenditure in research and development programs.
 Need huge capital and highly valuable resources so may increases prices of
products or services.
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Task 2 – Using the concept of segmentation, targeting,
and positioning:
2.1 Micro and Macro-Environmental factors that influence marketing
decisions of ALDI:
Both the micro and macro environmental analysis is very important for taking the proper
marketing decision of a company. The micro environment of a company is dependent on the
internal environment of a company including its strengths, weaknesses, opportunities and threats
whereas the macro environment of a firm is dependent on the external environment of the
company (Dann, 2010).
Micro factors:
The Micro factors are those factors which are related to internally to organization. Such
factors make impact on business operation through internally which generally includes
Suppliers, organization culture, organization's structure and employees etc.
First of all, the SWOT analysis of ALDI is given below:-
Strengths Weaknesses Opportunities Threats
ALDI claims to
provide top class
products at affordable
cost
The number of stores
is much smaller as
compared to other
bigger brands
The requirement is to
invest more money
into advertising and
branding
Cannot cater to those
shoppers who are
looking for a
complete shopping
experience
Strong presence
throughout UK with
many retail outlets
Due to the presence
of relatively fewer
chain stores, the
Expansion of the
stores is essential to
the market of Africa
Other retailers have
more strengths in UK
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brand did not receive
global acclaim
and Asia
Internationally has
more than 8000
stores all over the
world
Sometimes many
customers feel the
store has low-quality
product due to its low
price range
Private label brands
of ALDI can
sometimes be tossed
aside by other well-
established brands of
UK
Operates worldwide
in more than 15
nations
Macro factors
Macro factors are related to the external factors which are uncontrollable for the
organization. It mainly includes political, economical, social , technological and legal factors.
The macro environmental factors are also to be discussed in relation to ALDI. The macro
environmental factors include the political factor in Europe. After the exit of UK from the EU, a
huge amount of tax is levied on the business, which can serve as a threat to the competitive
pricing strategy of ALDI (Thoring, 2011). The stores cannot be just opened anywhere nowadays
due to global environment leagal factor. Also, the economic factor which includes situation
throughout UK is in turmoil due to the global recession. The social factor includes young
generation is more dependent on the elderly for money. This is the reason; the increase of prices
would be a bad idea keeping in mind to the macro business environment of ALDI. Technology is
also effective business of company in this it includes online websites and e mail marketing
which helps to company for expanding their business.
2.2 Proposing of segmentation criteria for those markets in which ALDI
currently is not operating:
Segmentation is process in which organization divides its market on the basis on different
types of variable such as income, geographical basis and demographic basis, age of customers.
The company is retail company and mainly conduct it business operation in UK, where retail
competition is very high. Aldi is focuses on making food items on low prices so they can
capture market. It can supply healthy meals and food items in those places such as Asia and
Africa.
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ALDI needs to separate those markets that have no direct connection with the main organization.
In order to do just that, a proper segmentation would be helpful. The segmentation is mainly
known as differentiating the market depending on several bases into various homogeneous
groups (Burt, et al., 2011). The homogenous groups should be a part of that culture based on
same kinds of preferences and tastes, and even some similar characteristics of behavior so that
some services and products can be available to those groups. In order to enter into those nations
like Asia and the African countries, ALDI requires segmenting the customers mainly on the
basis of demographics, which means the sex, age and profession of the customers should be
taken into account.
The supply of the products must be based on the demographics of a particular region. The
demographics help understand the culture and the demands pertaining to a particular place. Post
that; the products can be made cheaper in order to attract the customers as far as the market
demands are concerned.
2.3 Targeting strategy for a chosen product or for a chosen service of
ALDI:
ALDI can fix its target on the customers with dual income based family. It can supply healthy
meals and food items in those places. In the market of Asia and Africa, there are several people
who has no time to cook their meals because both husband and wife are office goers
(Gbadamosi, 2012). The age group of 25-40 can be targeted in order to make this brand popular.
Though there are some small differences between the developed and the developing countries,
yet several young and educated people are self-sufficient, and their number is growing over time.
The organization is using differentiated marketing approach in which they can make
Providing self customised product of food items. In this the company with the helps of
technological advancement they can target market in effective meaner. In this approach they can
use their online websites or use of social media through which they can target their market
easily.
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2.4 Demonstrate how buyer behavior affects marketing activities in
different buying situations for ALDI:
Following are the five stages of consumers behaviour which are as follows.
Need recontamination
There is variety of purchasing behaviour of customers in a retail store. The customers
vary in their choices like some customers have variety oriented purchasing behaviour, complex
purchasing behaviour, regular purchasing behaviour, and dissonance oriented purchasing
behavior (Gordon, 2011). so in this organization need to identify actual need by conducting
market research.
Information Search
The customers who seek the variety oriented behaviour do not go through a long process
of looking at items and select the one that directly matches with their list. So at this strage
consumers make search of different types of products by using social media or internet.
Evaluation of Alternatives
If these customers are not satisfied in any way, they purchase things even with more
varieties. Some products of ALD, like the grocery products all show this kind of purchasing
behaviour by the consumers. So the customers make evaluation of different types of products
and seeks to only that products which provide him higher level of satisfaction.
Purchase
The customers buy products at this stage. However, when the products are based on electronics
items, the customers’ perception are mainly very complex. Here, the company needs to brand
those products through advertisements.
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Post purchase Behaviour
The health products are always sold out of a dissonance oriented perception of the
customers. The customers are very apprehensive about a particular brand, and if it fails to meet
certain expectations, they just alter the brand (Allyson Dooley, et al., 2012). The marketing mix
strategy is the best applicable solution for the improvement of these products by conducting after
sales research.
2.5 Proposing new positioning strategy for ALDI:
The new strategy is related to the offering new type of product which is food items for
the individuals. The pirces of this products is considered as low so familie and UK people can
take advantages of it. It also helps to organization to take advantages competitive business
environment.
The new positioning strategy of an organization is very helpful to create brand awareness of the
product among the consumers. If the company proposes to provide a healthy meal for the
customers, it also needs to be very health conscious about the product. The positioning strategy
of ALDI should be based on the time decreasing factor for those families who are dual income
based mainly in Asia and African countries (Bang & Joshi, 2008). In the families of working
couples, cooking of meals is a very weird proposition, and maximum women tend to go away
from it. However, an outside meal increases the health concern for the families. The positioning
strategy of the organization can discuss the details of healthy food stuff, and its benefits to the
prospective customers.
In order to make effective and successful marketing strategy, 7p's analysis can be
conducted. Main aim to conducted this analysis, ALDI has responsibility to develops their
understanding towards internal operations. It includes following elements that encompasses at
7p's:
Product
Product of the chosen business is determines as quality, brand name and cheapest
supermarket retailer. The main competitive advantages of ALDI is based on their products and
services.
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Price
Price is also effective element of marketing which demonstrate value of product and
services. In this aspect, ALDI is using competitive pricing strategy which assist to make value of
product and services in supermarket. The company is using cheap price for particular product
and services.
Place
ALDI has various outlets in UK and Europe and many other countries. It assists to make
effective results in different areas. In addition to this, they are also serving their operations and
function in online and offline stores. In this aspect, they can easily provide variety of products
and services across the nation and outside the boundaries.
Promotion
There are various strategies that can be used by ALDI for promoting their products and
services. It includes advertisement, personal selling, sales promotion and publicity by the
company. In this aspect, they can easily store promotion at very low prices.
People
In order to make effective results and outcomes, there are various people perform their
function and participate in the business. There are various elements such as personal training,
commitment, incentives, appearance, and interpersonal behavior etc. which assist to grow
procedure of the enterprise. In this aspect, employees manager and many other people support to
ALDI for promoting products and services at international market.
Process
In respect to follow process, it includes different aspects such as policies, procedures,
discretion and customer involvement. Consumers are not involves in any process and procedure
of ALDI but they have power to produce effective results.
Physical evidence
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Physical evidence includes environment, furnishing, color, layout and facilitating goods.
In this aspect, majority of ALDI stores are determining in linear and traditional manner. This
will assist to findings goods through customers. Hence, they can easily access to purchase and
leave it carefully.
Task 3 – Understanding
the individual elements of the extended marketing mix
in ALDI:
3.1 How products are developed to sustain competitive advantage in
ALDI:
Idea generation,
ALDI has achieved a huge competitive advantage by developing best quality products using the
VRIN criteria. All the products are valuable, rare, inimitable and non-sustainable.
Idea screening
The bringing forth of other competitive products are bringing forth massive advantage, and
benefit to the company as compared to other retail stores in the UK of the same kind (Brown, et
al., 2012). As it is a huge supermarket, ALDI has introduced different products to satisfy the
basic requirements of consumers.
Concept development and testing
`At this stage free sample of products are distributed among individual and conduct market
research for the same.
Marketing strategy
Customers have the option of purchasing the products both offline and online.
Development
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The chief product of this business is food. It has many products related to beverages,
grocery products and like. Other facilities are offered in ALDI such as the product recalls,
manuals and various other methods to satisfy the customers.
Business analysis
At. this stage retail company make analysis of its products by conducting market research.
Test marketing and Commercialization.
This increases the overall adoption rate of the product among the consumers. This
particular approach can truly work out in increasing the product range and popularity of ALDI.
3.2 How distribution is decided to provide customer convenience in
ALDI:
The brand ALDI mainly adopts two kinds of distributors for the marketing of their products such
as the online setting and the wholesaler. The wholesalers would perform the direct sales of the
items from different stores while the online setting allows the customers to buy stuff online by
sitting at their home (Cant, et al., 2009).
Alternative distribution
The supply chain of ALDI is quite succinct, and so, it allows the line of production to be quite
beneficial. ALDI controls all the suppliers with the help of a proper ERP software and latest
technical assets. Various stores are opened every now and then throughout UK in order to
promote the products in a proper manner.
Promotional drive
In order to the escalation of the ease of access for consumers, ALDI manages all the
distribution channels online. The online management helps the consumers to get the delivery of
the products by sitting at their home. They can also browse through the newly launched products
of ALDI, which provides this store an advantage over other retail stores.
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3.3 How prices are set to reflect ALDI’s objectives and market
conditions:
Method of pricing
The second P of the marketing mix of a particular product is its pricing strategy. ALDI
has a competitive pricing strategy of offering products at much cheaper rates than the existing
market. The objective of this stratgey is that it helps to organization to gather market
This creates a positive image in the minds of customers (Burt, et al., 2011). Another
feature of ALDI is to increase brand awareness by spreading through word of mouth or by
advertisements the marketing strategy of cheaper products. However, some posh customers
opine the products that has a very low price are low quality products. Nevertheless, such opinion
are never taken for granted by ALDI Company because the economic condition, and other macro
environment of the business is not suitable to increase the product price at this stage.
Pricing is very important element which assist to attract customer towards the business
operations. With the help of pricing strategies, the company can make their own marketing goals
and objectives. Different types of pricing is determining as follows:
Premium pricing
This pricing strategy is establishes through ascertain objectives effectively. In this aspect,
ALDI is setting their product price higher than the competitors. This strategy is used to make
something unique for product that attracts customers.
Penetration pricing
In this type of pricing strategy, the company can capture market share with enter at low
price from competitors. It is the best method to attract various customers. It also frames ideas
that create awareness and get people to try the products.
Economy pricing
Economy pricing is familiar with effective results which describes for organization which
based on strategy. ALDI is food store so that they can setting their price as per their economy
advantages.
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Skimming pricing
The chosen business has significant competitive advantages to enter in new place with
design skimming strategy. In this way, maximum revenue can be gain that make advantages
before offering similar products and its alternatives.
Psychological pricing
Psychological pricing strategy is used by marketers to establish their own products. It
makes the big difference between actual product and another substitute.
3.4 How promotional activity is integrated to achieve marketing
objectives in ALDI:
Promotion
The increase of customer awareness is directly related to the brand promotion of the
particular product (Brassington & Pettitt, 2013).
Promotional mix
The promotional activities of ALDI are done by advertising the various products over
TVs, radios and internet advertisements. Internet advertisements are mainly popular nowadays
owing to the effect of globalization. The optimization techniques on the internet websites can
also be used for marketing the products in a newbie market.
Reason of promotion
The fourth important P of marketing is the promotional function of ALDI. In a new
market, the brand promotion of ALDI should definitely be integrated in order to achieve the
product popularity.
Integration
promotional strategy is sometimes used by ALDI to demonstrate its benefit to the
consumers. It would help to increase the demands of the product mainly in the Asian and the
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African market. Increase of demands for the existing products also make a very good position in
the market through word of mouth promotion strategy. Therefore, a proper positioning of a
product is also dependent on its promotion.
3.5 Analyzing the additional elements of the extended marketing mix
in ALDI:
The additional elements of the marketing mix of a particular product are its people, physical
evidence, and the process, which are given below:
Process:
The process of ALDI is made in such a manner that all the consumers can achieve a better
purchasing experience. The customers can get the option of purchasing the products by sitting at
home online, or they can come to any retail store of ALDI for buying the products. So, there are
two options open for the customers (Bang & Joshi, 2008). The easy payment option is available
for the customers, and the technology has become quite advanced both online and inside the
supermarket, which proves a considerable achievement on the part of ALDI.
Physical Evidence:
Physical evidence is a big factor in the marketing mix of a particular company, and it helps to
create an impression on the minds of customers related to the products and services of a
particular company (Cant, et al., 2009). The supermarket store of ALDI does not require too
much effort to gain the physical evidence pertaining to the stores because most of the stores are
well-decorated, and all the stores would give a very good impression about the entire company.
More emphasis is also paid on increasing the size of the stores in order to make it less noisy
because the increase of noise inside the stores can make it difficult to purchase items for the
customers.
People:
Another important aspect of the marketing mix additional elements is the people of a particular
store or the employees in other words. The employees of ALDI including the store managers are
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very well-equipped in professional etiquettes (De Mooij, 2013). The supermarket stores are
completely adept at handling all sorts of customers including the stubborn and the rude
customers. The training for customer satisfaction is given to every staff after they join the
organization. This helps create a good brand image of ALDI in all respect.
Task 4 – Use of Marketing Mix in different contexts of
ALDI:
4.1 Plan and recommend marketing mixes for the two different
segments in consumer markets:
Aldi can concentrate on Fat-free snacks products in the UK market, and for that, the company
may segment two different types of the market segment. One market segment is the young
generation including college students and the school kids including the teenage group. For
targeting the school kids and the college students, Aldi needs to segment their market based on
demographic segmentation and psychographic segmentation (Gordon, 2011). Another market
segment that has been chosen by Aldi is the age group of 25 to 40 years of people who from
working professional. While segmenting both of the segments the marketer has used both the
demographic segmentation especially, the age group of people and also the Psychographic
segmentation which is based on the lifestyle of the people. Age of the consumers is major factor
while selecting the fat-free snacks segment in the market because, the young generation mainly
prefers to have the snacks items than the older generation (French, 2010). Secondly, the lifestyle
segmentation has also become vital because in UK society the value of healthy food products has
taken its own importance. UK customers have a greater level of education and awareness
regarding the healthy products. The government of the country is focusing on the issue of the
healthy proposition, and laws and regulations are also inclined within the framework of the
organisations.
Market A Market B
Market A is the school and college goers:
here the age group which comes under
demographic segmentation has been taken
into account.
Market B is the Psychographic segmentation
through which the company Aldi can choose
young working professionals within the age
group of 25-40 years and who are aware
regarding the healthy food.
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You may use a table here.
4.2 Exemplify differences in marketing products and services to
businesses rather than consumers:
Consumer market Producer market
The consumer market is difficult to
understand because to get success in this
market it requires to understand clearly the
consumer behavior of each and every
individual.
Producer market possesses a distinct feature
and understanding the producer’s market is
also difficult because analyzing the trend the
business customers are necessary over here.
In consumer market, the vast and long
distribution network are required, and in this
case, numerous middleman within the
distribution network can be present.
In producer market, the distribution network
is small as the direct supply of products are
possible in this market.
Purchasing decision making of products and
services in consumer market depends on
various variables including, the quality of the
products, the advertisement, and branding of
the products, the pricing everything.
Here in the producer’s market, the purchase
decision-making process depends mainly on
the commitment and Business to the business
relationship among both of the firms. The
other factors like price, quality also matters.
There is a huge difference in the pattern of
sales in the consumer market and in producer
market. In the consumer market, the sales
happen ion frequent basis. Frequent sales and
purchases are occurring in the consumer
market, and the proportion of sales is less in
this case.
In the producer market, one time sales happen
and once the deal takes place the sales relation
starts. The sales decision are renewed within a
period of time, and that depends on the
agreement.
Prices are more in the consumer market as
small amount of deals are happening
Prices are less because bulk products are sold.
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4.3 Show how and why international marketing differs from domestic
marketing and show how you could implement a marketing strategy to
market abroad:
International trade
International trade refers to the business in the international markets. For example, if a
UK Company goes into an international market to expand its business it would be called as
international trade (Armstrong, et al., 2014). International trade can be made in various ways,
including exporting, licensing, subsidiary, partnership, etc.
Domestic trade
On the contrary, domestic trade is said to the business which concentrates within the
boundary of the home country. For the purpose of expansion the business owners goes into the
international market.
International market Domestic Market
The International market contains the barriers
of trade. Most of the country though have
implemented many policies in relation to the
free trade, but in practice, there are still many
hindrance present for the international
companies for operating in the market.
The domestic market is free government
barriers to trade. Most of the country’s
government support the growth of the
domestic companies in their market.
Tastes and preferences of international
consumers are different and thus, operating in
the international market is more difficult.
As the company operates in the known
market, the tastes and preferences of the
consumers are well known.
Conclusion:
ALDI is a big supermarket in UK, and it is mainly an Italy-based supermarket chain. It has
departmental stores and distributors all across Europe. However, it didn’t quite become
successful in spreading towards the Asian and African market (Brassington & Pettitt, 2013). The
lack of budget is the main problem, and also the distance becomes a big factor in spreading this
business on international horizons. Marketing is the root cause of the development of a particular
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company. That is the reason; the marketing analysis of the product is done to improve everything
related to the product and its development. Several tools and techniques like the marketing mix,
SWOT analysis, etc. are used to explain it in detail.
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