Analyzing ALDI's Marketing Essentials: Roles, Plan & Responsibilities

This report provides an in-depth analysis of ALDI's marketing essentials, focusing on the roles and responsibilities of its marketing function within the broader organizational context. It examines how ALDI applies the marketing mix (product, price, place, promotion) to its marketing planning pro...Read More

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Roles and responsibilities of the marketing function of ALDI........................................3
TASK 2............................................................................................................................................5
P2. Roles and responsibilities of marketing related to wider organisational context.............5
TASK 3............................................................................................................................................9
P3. Comparing the ways in which ALDI applies marketing mix to the marketing planning
process to achieve business objectives...................................................................................9
TASK 4..........................................................................................................................................13
P4. Produce and evaluate a basic marketing plan for an organisation.................................13
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................17

INTRODUCTION
Marketing is the process that helps the producer to determine needs, wants and desires of
the customers and converting them into goods and services as per their requirements to generate
higher profits along with attaining customer’s satisfaction. It is a continuous process that puts its
customers into main focus with the ultimate aim to capture their attention by using marketing
mix- product, place, price and promotion for creating, exchanging plus satisfying the objectives
of consumers as well as of the company. This project is based on analysing marketing essentials
of ALDI, which is one of the world's largest privately owned chain of grocery supermarket with
its base in Germany. It has approximately 8000 discounted stores worldwide in around 15
countries. This report focuses on roles and responsibilities of ALDI's marketing function which
contributes in its growth and development along with company's basic marketing plan. A
comparative study of ALDI with one of its biggest competing retail stores Lidl will reveal
uniqueness of ALDI in applying its marketing mix in relation to its market competitors.
TASK 1
P1. Roles and responsibilities of the marketing function of ALDI
Marketing is the fundamental function of a company that helps a manager in analysing and
determining its relation the environment in which it operates including its customers and
competitors (Dibb and Simkin, 2013). The motive of any firm is to capture the attention of its
target audience by providing goods and services that satisfy their needs and with it to gain higher
profits. To accomplish this objective it becomes critical for a firm to carefully imply its
marketing functions to focus on it customers requirement and then moulding its products and
services accordingly so as to make them available with their desired goods and services. These
functions are marketing functions are product/service management, pricing ,marketing-
information management, distribution, promotion, and selling. In order to achieve its objective of
selling its products and services by convincing the buyers to purchase their products and to boost
up customers sales ensuring right product at right time available at right place through a best
suitable sales promotion staretgy it is essential for business to maintain coordination among these
functions monitoring that they compliment and assist each other without facing any problem.

Aldi being one of the market leader in supermarket lays special focus in balancing its market
functions (Lamb, Haia and McDaniel, 2011). By efficiently coordinating its marketing functions
this retailing firm provides a wide range of quality products at reasonable prices to its customers.
All the activities and strategies of marketing revolves around the product they are offering to its
clientele. Mentioned below
are different kinds of marketing functions that ALDI needs to perform :-
Marketing information management : To make decision related to current and future
market strategies business requires information related to ongoing market treads, customers taste
and preferences ,competitors strategies etc. Marketing information involves collecting ,
analysing and disseminating information in order take market related decisions. ALDI consider
this function as prominent as it helps the firm to gain knowledge about the demands and
preferences of its buyers on the basis on which Aldi formulates its marketing strategies. This
information becomes extremely beneficial for a company leading to gaining higher profits as
they can produce goods and services according to the preferred quality and quantity reflected in
information analysis (Mettler and Guiberteau, 2011). This functions can be extremely useful for
Aldi at time of festivals as firm through marketing information management can introduce new
products as per customers specifications.
 Product and service management:- This function is of great significance as it includes
evolving , maintaining and refining a product and service according to the available
market opportunities. It execute and controls the entire product life cycle process
including generating new product development ideas, upgrading or enhancing the
existing product or withdrawing product from market. Aldi give special attention in this
function . For which it conducts various market surveys to ascertain consumers neds and
preferences , to know its upcoming competitors and to have an idea about new entrants
in the market .
 Pricing :- This function is associated with maintain a price level that is not too high for
customers to be enable to afford it and also not too low for a company to not earn
significant profit. It is a critical decision to be made by a firm as it directly effects the
sales and production of a company. Aldi whose motive is to provide large quality of
goods and services as reasonable price to its customers weights pricing decision function
very high in its marketing strategy (Chiego, 2018). It make sure to set it price at a such

level where it is affordable for its customers to ready buy the offered products and the
company too can have a competitive edge of earning higher profits with economies of
scale.
 Distribution:- This function includes moving,storing and transferring goods and services
from owner to end users by using different promotional tools such as advertising, sales
promotion and publicity. Aldi utilizes a perfect blend of different sales promotional tools
including combination of above the line and below the line promotional strategy,use of
print and electronic media , website and social media promotion etc. to capture the
attention of larger number of audiences.
 Selling: It deals with providing customers with the products and services they demanded.
It includes evaluating what a customer intends to get and then maintaining a
communication with them so as to influence and convince them to purchase the products
and services which a company offers (Lovelock, 2011). The core aim of ALDI is to sell
as a large quantity of quality products lower than any other supermarket within a specific
time frame.
TASK 2
P2. Roles and responsibilities of marketing related to wider organisational context.
Marketing is a broader concept then selling, it should work on promotions,
advertisements, personal relation management and so on. It encompass the whole business
activities. Marketing manager of an organisation are concern and responsible for marketing
work.
Operations management/production
Production and operations management are defined as the process which converts the
input into output as per pre-determined pattern of the company activities. This department
ensures that demand meets with the supply at market place. It produces the product in accurate
number according to customer’s needs and wants. Production and operation department not only
produce the product or services but also ensures the quality check, storage and availability of
product in customer hand at right time at right place (Lipsman, A. and et. al., 2012).
Operations are a primary activity for a supermarket grocery store. Business that wants to
be successful needs to have a leading operating model. Aldi staff plays very important role in

this model. Aldi put a sustained focus upon how to develop best operational staff to ensure that
organisation fit to embrace the significant future developments that are expected and to excel in
customer service. Aldi views operations with the appropriate level of importance; it supports an
ambition to create a world-class operating environment, which consists of people, process,
technology and organization (Brassington and Pettitt, 2013).
It is likely that the marketing department will set deadlines that may stretch the
capabilities of the production department. Marketing department coordinates with the production
department about the quality and durability of product. Since the product is one of the P’s of
marketing mix it is necessary that the product should be as per the quality stated in marketing of
product.
The product is at the core element of the business behind the existence of an organisation
at market place. company should be done time to time improvement in existed product. These
improvements are according to the customer need as well wants. This approach should be more
pro-active and less reactive. To ensure this both marketing and production departments should be
updated about their customer preference which change very fast. Better the coordination between
production and marketing department higher the chances to keep customer satisfy. Marketing
department also keep eyes on competitor (Jones and Rowley, 2011).This helps production
department to maintain the product features better than competitor.
Finance department:
Finance department is considered as blood in organisation. The importance of finance can
be understood by the presence of the finance department even in a small organisation in order to
achieve firm goals and objectives. According to convention approach it is said that finance is the
reason of the existence of any business.
Finance department ensures the smooth working of organisation. Ensure that resources
are available at right time with accurate number at right place. It ensures the long term financial
health of the organisation is very important to run all business activities in an effective manner. It
allows budget and funds for different work and ensures that ROI is generated with each task.
Every business looks for growth and future possibilities (Durmaz, 2011). To get competitive
advantage and growth in business marketing department do research. These researches are based

on past trends and future possibilities in order to complete this research marketing department
needs fund.
Apart from competitor and growth the next dimension is expansion of business. Business
expansion is done to capture market, increase sales volume and making brand more powerful and
strong. To expand any business organisation has to do research and promotion in different
market.
Marketing has to understand the need and culture of different geographic area. There should be
adequate budget to meet the needs for research, promotion and distribution (Mihart, 2012). In
this context the marketing department coordinated with finance department to get the budget as
per the standard of finance department.
Human Resource Management:
Human resources management department is responsible for the workforce in an
organisation. It recruits, motivates, train and develop employees. Human resource management
focuses on following area, including:
 Recruitment
 Performance appraisal and benefit
 Training
 Organization development
A company needs to gain loyal customer to achieve good number of sales, but getting top
talent attract towards the company is equally important for long term success. Right
recruitment and development of employees ensures the long-term success of the company as
they become productive resource for the organisation.
Following are point that describes the relation of marketing with Human resource
department:-
Organisation Branding: The word "branding" describe about the visions of market research
reports, company logos and product positioning meetings. People want to work with an
organization that has good reputation with strong vision and mission statement. In current
economic climate it is important to the personality of company to people.
The strong work of marketing department in marketing research, positioning and brand name
the stronger is organisation branding. This highly depends upon that how marketing department
establishes the organisation in the market.
Attracting the Right Talent:

The secret to attracting the people you want and need: align your HR strategy with your
business plan. The Job title and job description should be in line with the business plan. This
enhances the productivity and performance. Create a clear set of expectation in the mind of
Employees hence increases job satisfaction. This leads to low employee turnover and saves
organisation resources.
Keeping People Happy
One rule of marketing is that promise what you can deliver. If product quality is not as
per the standard and expectation of customers all organisation efforts will become a waste.
Similarly, if organisation promises a work culture that it cannot offer, it damages employee
morale. The HR policies should be according to the marketing plan and Vision, mission and
value statement.
Keeping Up With Change:
In management it is said that only change is constant. Good organisations recognize change
and capitalize it as an opportunity. This efficiency of using change as an opportunity depends on
the efficiency of marketing team. As the market changes the employee expectation also changes.
The organization should be aware of these changes and employee expectation. Organization
should be on the top of trends, but organization should also know the employee welfare work of
the competitor. The organisation should have knowledge about the working culture of field.
TASK 3
P3. Comparing the ways in which ALDI applies marketing mix to the marketing planning
process to achieve business objectives.
Marketing mix is a complex set of actions or strategies related to 4P's and 7P's that an
organisation strives to adjust in a right combination to cater the needs and wants of its customers
along with earning optimum profits for a company. The marketing mix serves as an integral part
in formulating and implementing marketing strategies for any business unit. It includes all
elements that have an impact on a firm’s efficiency to produce, successfully launch and create an
image of its product plus services in the market. Aldi is one of the biggest supermarket stores
gives main stress in planning its marketing mix with the aim to produce a distinctive blend of
right product, to be sold at right price, at a right place by using most apt methods of promotion.
Mentioned below is a comparative study of Aldi with its leading competitor and Lidl.

Marketing mix tools ALDI
Product Aldi provides food products with
quality in affordable prices to its
customers. Apart from stocking food
items like fresh fruits and vegetables
Aldi also deals in non- food
products including health and beauty
products, clothes, stationery,
electronic products, household
goods as well as soft tools. The
distinct feature of Aldi is it
specialised in its own branded label
which helps in controlling cost of its
products
Lidl being one of the largestand
cheapest grocery retailer stores in
Europe is the biggest competitor
of Aldi. Products offered are
indistinguishable from that sold in
other stores. The distinct feature of
Lidl is it provides an opportunity
to it consumers to experience a
large variety of products from
across the world.
Price Aldi's strategy of offering quality
products at competitive price has
lead it to maintain a solid consumer
base. Aldi enjoys economies of
scales which it achieves by buying
large volume of its products at
negotiable prices from selected
suppliers. As price line is affordable
for consumers they too buy in bulk
leading to decrease cost of its
production.
This company follows a smart
pricing strategy. It being a private
label brand cuts down the
middlemen commission leading to
reduction in its overall cost. Their
focus is on penetrating price I.e.
low pricing but high selling to its
consumers
Place Aldi has a plethora of stores across
UK with an estimate of
approximately 8000 stores in 18
countries around the world. The
main focus of Aldi lies in
The firm excels in regional
distribution centres delivering
quality product across UK. It has
over 650 Lidl stores and more than
10000 stores across Europe.

positioning its stores in the centre
location giving it proper visibility
for its customers to reach it.
Promotion Aldi makes use of cost saving
strategy and invests very negligible
amount in its promotion activities. A
combination of above the line and
below the line promotional strategy
is used. It pays special focus for
economic efficiency of all its
promotional tools which includes
clever using weekly newsletters for
communication its super buys offer
apart from extensively using print
media, ads commercial etc. to
attracts its consumers.
This organisation make use of
integrated promotional schemes
through TV campaigns, social
media ,website promotions etc. to
help its consumers to be aware
about all its present and future
offers.
People An efficient public relations is
requisite to create a positive
exposure to media. Although Aldi
has secured record coverage but its
stores lacks customer services for
which it is critically important for
the company to adopt strategies that
delegates and divide task among
employees so as to enable them to
specialised in their field of work
leading to providing better customer
services.
Lidl has very well-coordinated
Public Relations and sales
promotion system. The company
needs to lay down high training
standards to develop its employees
speed to scan fast so that
customers don't have to wait
much.
Process Aldi firm has very carefully
designed the layout of its stores

consisting of separate sections
having limited brands’ category with
high quality and affordable prices
which forbid customers from getting
confused reducing their selection
time.
Marketing planning process:
It is critical for any organization to prepare and implement an effective and efficient
plan as it contributes to its growth and success. It consists of systematically preparing strategies
related to pricing, selling and distribution goods and services that a company produces by using
best suitable tools of sales promotion (Siricharoen, 2013). Following are the steps which are to
be followed for preparing a better marketing plan :
Analysis: This is the first step of planning process which is associated with analysing the
internal as well external market competencies which is essential in determining the market
trends and to identify the available business opportunities .
Planning: This phase is associated with preparing a rough draft or blueprint related to a
firms selling and distribution strategies. It serves helpful for the management in taking decisions
related to price of its products, to set budgets, determine tools and methods of marketing mix etc.
Implementation: Implementation phase is the area of action where all the planning is put
into action. It includes putting all your startegies and plans together for achieving organizational
objectives. This phase should be carefully executed and monitored so as to avoid any
overlapping of activities (Lehmann and Bengart, 2016).
Controlling: It happens to be the last and the most critical stages of marketing plan. It
initiates with the execution of the formulated plan and involves activities of marketing that
requires continuous monitoring so as to check any deficiencies and to take corrective actions in
case of any loophole or lacking is detected. It is basically a comparison of actual performance
with the desired performance and rectifying any errors in between so as to ensure the successful
implementation of the plan which ultimately contributes in timely achievements of organization's
objectives.

TASK 4
P4. Produce and evaluate a basic marketing plan for an organisation.
A marketing plan is a business document outlining your marketing plan and tactics. It's
often focused on a specific period of time and covers a various marketing-related details, such
as costs, aim, objectives, goals, and action steps. The marketing plan develop marketing strategy
in order to achieve set objective in given time frame. The plan is the blue print of whole business
activities which company to complete in an effective manner.
ALDI marketing plan:-
Executive Summary: Aldi is popular global discount supermarket chains thus run their
business activities in eighteen countries around 10,000 stores in the world, including Australia.
Until 1960, the two brothers split these chain into two separate groups that were Aldi North and
Aldi South. Both of business operations are the world’s largest privately owned company (Dibb
and Simkin, 2013). Company are able creating excellent value for their customers through the
highly quality products and services with a cheap price. The company is entering in Australian
market. The marketing plan of the Aldi are as follows:
Target Customers: A target market is a broader group of potential customers defined by
ranges. The target market may need to be broken down to a specific target customer should
company’s management decide to customize their marketing efforts at market place. firms have
target their potential customer is the person thus identified as most likely to purchase products as
well services (Lamb, Haia and McDaniel, 2011). This is a segmented portion of companies target
market, as they identified certain aspects of this individual. These all components might include
a specific age instead of a range, a specific income level versus a large income types, and the
reasons these customers are most likely to purchase firms products and services in order to
satisfy their needs and wants. Some important factors are demographic define as income and
lower income groups, Geographic area- sub-urban and rural people, psychographic- environment
friendly packaging and locally produced fruits and vegetables, behavioural mean customer those
want good quality product at a cheap price and many more.
Unique Selling Proposition: A unique selling proposition is a concept that distinguishes
a product from its competitor, Like High quality, less price and brand new product. A USP could
explained as “what you possess competitor don’t. “In order to beat the competition the unique
selling proposition should be different and strong. Aldi offers its customer a better and
convenient way to shop. Aldi support to environmental friendly business. ALDI claims to give
its customers healthy and quality product as of branded product at cheap rate.

The best part of the Aldi is that it sales customers a wide range of product with quality
assurance and at low Price. Aldi focuses at giving maximum possible savings to its customer.
Pricing and Positioning: Price is the value of a product that is a result of calculation and
research. A pricing strategy considers all factors like: competition, quality and customer
segment.
ALDI gives a good quality product at less price which gives ALDI a strong customer
base and also competitive advantage over others. The various policies used by ALDI are:
• Unit pricing Strategy: ALDI uses unit pricing strategy for groceries so that the customers can
easily compare. ALDI uses per unit price strategy so that customer can easily rely. It also shows
the transparency of company.
• Market Penetration: For the new product ALDI uses aggressive prices and charges very less
from customer so that the customer buys the product and product capture the market,
• Competitive Pricing: In case of tough competition, It prices are lower than competitor and
keeps the price AR=AC. The left profit is forwarded to customers.
• Psychological Pricing: Customer perception about product/brand is everything in this
competitive era, ALDI has placed it price in smart way like, $3.78 instead of $4.
• Loss leader pricing: ALDI believe in foot fall, higher the footfall higher the sales that is why
ALDI offers non-food product at very cheap rate, so that customers buy grocery items and make
money from that. The low price of non-food product is tactics to attract the customer at store.
Positioning: Position in marketing stands how a customer perception abut product. How does a
customer perceive a product? What does a customer think about product? The image of the
product in customer mind is the positioning of product.
In order to create a different image from its competitor Aldi has introduced a new brand
proposition –Good Different- . The new positioning focuses on new brand positioning which
differentiates ALDI from its competitor and help organisation to grow more.
The brand wants that Australian understands that ALDI is offering a low price at highest quality.
The pricing and positioning strategy of the aldi is synchronised and create a clear image in the
mind of customer.
Distribution Plan: In marketing business strategy and market position refers to the
consumer's perception toward firm brand or product. Market positioning refers to the process of
establishing the company image or identity in customer mind, so that consumers perceive it in a
certain way.
A distribution channels are enables to sell to their customers in geographical areas or
market sectors where company cannot reach which affect firm profitability. Managment of Aldi
can choose their channels from a number of distribution, including wholesalers, retailers,

distributors and the Internet. ALDI procures all the products as well services in bulk from
various vendors and they are ensuring about their product quality. (Lipsman, A. and et. al.,
2012).
Company are ensure minimum waste disposal while transportation of goods at work
place and uses environmental friendly equipment in its store which help to develop healthy
environment.
Evaluation of marketing plan: Marketing plans serve as the blueprints for your company's
sales strategy. Understanding how to judge whether your marketing plan is delivering the best
possible results can save you time and money and help ensure the success of your business
(Brassington and Pettitt, 2013).
Market Share: ALDI has been a key point of contention amongst the Australian grocery
industry for several years. This is of no surprise, considering ALDI’s Australian market share
increased by nearly 7% over the past eight years, with consumer numbers growing five times as
quickly as its major competitors.
Market Position: ALDI has become top 10 grocery stores in Australia. With the new
positioning it estimates give up approximately $6B in sales annually to the discount retailer.
CONCLUSION
Form the above report it is concluded that Marketing plays an important role in
establishing relationships between customers and the organizations offering to the market.
The marketing function is also tasked with branding of the organization, participation in
publicity activities, advertising and customer interaction through feedback collection. A
marketing plan is a outlines the specific actions you intend to carry out to interest potential
customers and clients in your product and/or service and persuade them to buy the product
and/or services you offer. Marketing manager play important role at work place in order to
achieve firm goals and objective in given time frame.

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