Strategic Marketing Plan for ALDI's New Product Launch

This paper presents a strategic marketing plan for ALDI's new product launch, Refresher - a mix of Beetroot and watermelon juice. The plan includes an analysis of the current business conditions, marketing objectives, competitors, and marketing mix of the plan. The SWOT and VRIO analysis have been conducted to identify the strengths, weaknesses, opportunities, and threats of the company. The PESTLE model has been used to analyze the market and competitor's analysis. The 4 Ps of marketing mix and NPD procedure have been discussed in detail.

STRATEGIC MARKETING
PLAN
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Table of Contents.
INTRODUCTION...........................................................................................................................3
MAIN BODY................................................................................................................................3
Current business...........................................................................................................................3
Marketing objectives...................................................................................................................6
Market and competitor’s analysis................................................................................................6
Strategic marketing approach......................................................................................................8
4 Ps of marketing mix and NPD procedure.................................................................................9
RECOMMENDATIONS...............................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
A strategic marketing plan refers to the procedure of formulating a business and
marketing strategy which outlines the objectives and goals of business and the methods through
those goals will be achieved (Fuertes and et.al., 2020). It explains the responsibilities of persons
and timelines to carry out a specific business plan. ALDI is a common brand of discount
supermarket chains run by two German brothers. It is retail company who have stores in more
than 20 countries. The products of company include supermarkets, convenience stores,
superstores and hyper markets.
The purpose of the paper is to develop a strategic marketing plan for product launch
ALDI's new product which is Refresher- A mix of Beetroot and watermelon juice in the market.
The scope of the plan is to analyse the current business conditions, marketing objectives,
competitors and marketing mix of the plan. However, the limitations of plan include limited
availability of information and data on the company chosen. In the report a business plan for
ALDI will be created which will provide various approaches and marketing mix of the
new product to be launched.
MAIN BODY
Current business
About chosen company-
ALDI is a leading supermarket chain in Australia which is privately held by two brothers
named Theo and Karl Albrecht. The company is considered as one of the top competitors in the
food industry. The company operates under limited assortment stores and hard discounters in its
grocery business. Through offering limited customer choices the company is able to save money
in various ways. ALDI hold the stock selection at its outlets to approximately 500 items only.
Most of these goods are packed grocery and dry goods. Most of the products of company are
sold under private labels ad some products are made exclusively for their chain. The company
works closely with manufactures to design its products which are cheaper to transport, sell and
stock. ALDI only stocks the national brands to highlight the discounts of its own products.
The company provides free shopping bags which are a huge attraction for its customers. The
company does not believe in maintaining the attractive locations for its stores instead it
purchases second rate locations for its outlets to reduce costs. Main focus of ALDI is customer
fists and high quality food.
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SWOT Analysis:
SWOT analysis is used to analyse the internal factors which have the potential to affect
business and performances (Elavarasan, and et.al., 2020). The SWOT analysis of ALDI is as
follows:
Strengths: Strengths are the factors or elements in which companies excel. These factors
can help the companies to build competitive advantages over its competitors in the market. The
strengths of ALDI are its discount stores. The consumers are attracted towards ALDI more than
other retail stores so, the company can provide huge discount variations for new product
Refresher which is a mix of Beetroot and watermelon juice. Consumers of ALDI are very loyal
towards company and provide huge support to the company. Company can use this strength to
offer new product to increase its customer base and customer loyalty.
Weaknesses: Weaknesses are the factors in which companies lack behind. These factors
hinder the growth of the company and results in low productivity (Wang-J and Wang- Z, 2020).
The weaknesses of ALDI includes low margins. Because the company provides huge discounts
on its products, the profit generations from those products becomes low. This can impact the
sales of its new product which is Refresher. Low profit margins means that consumers will
expect the new product i.e. Refresher Beetroot and watermelon mix juice on a low price. This
will increase the costs and reduce the products of new product offered. Also, the product offered
is usually for middle class an upper class which makes it penetration in high income groups low.
Opportunities: Opportunities refer to the external factors which the companies can use
from growth and survival in the industry. These factors help the companies to develop and
generate a wider customer base. As ALDI's Refresher Beetroot and watermelon mix juice
product will be positioned as an essential product and daily use products, the company is likely
to receive a positive impact of sales. This is a great opportunity for the company to grab and to
develop its business. It can offer huge discount to attract customers. The sale of new product on a
global platform is also an opportunity for the company to grow its markets on a global level. The
company has received good response UK market which means it can expand its business in the
UK market too.
Threats: Threats are the factors who have potential to harm the company and its businesses.
Threats if not managed properly can impact the businesses (Abdel-Basset,Mohamed and
Smarandache, 2018). Food industry have huge competition. There are many companies which
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offers heathy juice products. The businesses have expanded globally which provides a variety of
options to customers to choose from. This makes availability of substitutes easy. The easy
availability of substitutes can harm the sale of ALDI's Refresher Beetroot and watermelon. The
entry to new firms is also very easy which means many new companies can come offering the
similar products. With no barriers which increase the competition even more. Intense
competition is huge threat to the business of ALDI. Technologies also provides economies if
scale to the companies which means if the competitors constantly upgrades their technologies
they can offer cheaper products to customers.
VRIO analysis-
In corporate world, there are several forms of strategic frameworks and models available
that utilized in the context of many companies, whether it is small or large. Here, in regard to
Aldi, VRIO analysis as internal environmental analysis model is used, because it helps to
identify and analyse the capability and efficiency of chosen supermarket that had established its
venture into Australian retail industry (Ariwibowo, Saputro & Haryanto, 2021). This concept is
applied in a table format below;
Resources Value Rare Imitation Organized
Brand awareness Yes Yes No Yes
Access to Cheap
capital
Yes No Yes Yes
Global and local
brand existence
Yes Yes Yes Yes
Customers
retention
capability
Yes No Yes Yes
Effective
management and
capability to
retain & acquire
skilled candidates
Yes No Yes Yes
Brand extension
strength
Yes No No Yes
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According to above table of VRIO model, it has been identified that there are many
resources exist that management within Aldi may utilize to gain competitive advantages in term
of introducing new product that is Refresher which is a mix beetroot and watermelon juice. All
the resources of company are categorized into two sections such as tangible and intangible. For
example, organization is capable to utilize its own physical stores, in order to satisfy customers’
needs and retain them for long time period. Furthermore, in term of intangible asset, it may
utilize social media channels to generate excellent brand awareness, to promote new product and
to gain the attention of new customers, who are taking interest to purchase health food items.
Aldi may also use skills and knowledge of its skilled and talented employees to retain and
acquire target market as audience, through which management may obtain benefits in term of
increasing number of sales. It may do so by launching new product such as Refresher. All these
resources are valuable for supermarket as it may help to increase its profitability and productivity
as well as contribute to gain competitive advantages.
By generating excellent brand awareness firm may obtain sustainable competitive edge,
which is not an easy opportunity or benefit that a company may imitate as it is quite rare that
organizations may successfully generate awareness about their ventures effectively.
Marketing objectives
Without developing clear and appropriate aim or a vision, it is impossible for marketer of
Aldi to take any single step towards development of marketing plan. Here following objectives
are;
 To generate new product awareness in Australian market by 70% within 20 days
 To increase the number of Refresher as Beetroot juice mix with watermelon sales in
market by 80 within 3 months.
 To gain competitive advantages within 4 months
 To increase profitability up to 60% within 1 year.
Market and competitor’s analysis
For purpose of market analysis, PESTLE model is applying in the context of Aldi, which
help to identify the potential factors in Australian market, where firm may seek to launch new
product.
Political factor-
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Changes related to any political factors such as trade policy, tax rate, political stability
and instability, etc. may put direct impact on current and further activities of companies. In case
of retail industry within Australia, where Aldi has established its venture, political stability is one
of those external forces that is in favour of organizational sector growth and success. As
Australia is a politically stable, peaceful and prosperous nation. It may drive the attention of
company towards introducing new product in 2022 and expand venture with that.
Economic factor-
Fluctuations related to economic factors such as inflation rate, economic growth,
unemployment rate, etc. put direct impact on sales and productivity of organizations whether it is
large or small. In the context of Aldi, stable economic progress may put positive impact on
organizational success and progress, in term of permitting customers to purchase quality
products and services, exchange of money. This factor may affect positively in term of
increasing sales, productivity and profitability after launch of Refresher.
Social factor-
Changes related to customer’s preferences, market trends, etc. may impact on selling and
production operations of sectors. For example, in recent time veganism trend may put direct
impact on retail industry within Australia, as it may contribute to increase the sales and generate
revenue of Aldi because it operates under this sector and attempt to satisfy the needs of
customers by offering product according to trend like Refresher, which individual customer will
prefer to buy and refer other to do so.
Technology factor-
Technology advancement may also put positive impact on sales and success of Aldi, in
term of driving the attention of marketer towards promoting new product by using advance
digital technologies such as social media. This factor allows them to reach at international
market and across national boundaries, where many people are tending to buy healthy, tasty and
budget friendly goods, which they continually purchase and promote after obtaining appropriate
satisfaction that is valuable and beneficial for supermarket growth.
Legal factor-
Change related to employment laws and business regulations may put negative impact on
success of company as it is not possible for legal team to comply new terms within short term
duration, just because of that firm may feel pause in its existing plans. This impact is not more
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than few time as management may attempt to deal with this change and make everything
possible to overcome this situation, which is quite important for brand extension.
Environmental factor-
Customers and Australian government concern related to environmental safety may
emerge as biggest opportunity for Aldi, because it may already take initiative to become a
sustainable brand in retail industry by reducing its carbon foot print and using recyclable raw
materials to pack new product such as Beetroot juice mix with watermelon. The efforts and
activities of this company may help to build strong brand image in market, which contribute to
gain competitive edge and be competitive in sector.
Competitor analysis-
This concept is defined as process of identifying key rivals that operate in same market or
sector, where chosen brand may run its venture (Li, Q. & et.al., 2021). By referring to
competitive analysis framework, it can be identified that Woolworths, and Coles are the two
biggest rivalry brands in market, because they are capable to give touch competition to company
and decrease its sales.
Strategic marketing approach
Segmentation-
For purpose of selling new product, marketer may take approach to select specific
segmentation strategy to segment target customers. They may utilize demographic, behavioural
and psychographic segmentations strategies, which enable them to identify potential consumers
and develop plan to offer them new Beetroot juice mix with watermelon by considering their
needs, requirements and expectations towards retailing brands like Aldi, who may offer quality
products to its potential and valuable buyers.
Targeting-
Organization and its marketing manager may take decision to utilize undifferentiation
targeting tactic, according to that they attempt to produce and provide a single product to
everyone, without making any differentiation between target market. They may target all for a
new Beetroot juice mix with watermelon.
Positioning-
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For product and business positioning purpose, marketer may use social media channels,
which allow them to generate the awareness about both and set influencing position in current
Australian market.
4 Ps of marketing mix and NPD procedure
Marketing mix is one of those organizational concepts that encompasses varied elements in
term of 4 and 7ps that put direct impact on sales and success of a company. Here, 4Ps of
marketing mix applied in the context of Aldi, which attempt to produce and sell new product that
is Beetroot juice mix with watermilon (Jedin & Balachandran, 2021). Through this first element
of this model, firm may apply the procedure of new product development that may provide its
venture benefits in term of giving tough competition to other brands that exist within Australian
market.
Product-
The main source, through which supermarket may become more successful and progress
is a product, as it helps it to increase and build wider customers base by focusing on development
and production of goods. In order to grow rapidly and always stay top during competitive
business environment in retail industry, organization may take initiative to innovative something
new in term of food product. It may consider and implement as well as follow all the stages of
NPD, according to that its management effort to collect or generate may ideas with the help of
skilled and creative employees. They may then choose specific idea such as Refresher Beetroot
juice mix with watermelon, to retain and gain the attention of more customers in bulk, which
company may launch in 2022. After the stage of idea selection, its time when manager and other
stakeholders take next step that is production, testing, and final launch as commercialization. In
short, the completion of new product development process may bring many benefits, which are
valuable rare and inimitable.
Price-
Another element that Aldi and its management may utilize to become number one retail
brand in the Australian market and across the nation is its pricing decision. They may choose low
pricing strategy, just to make assure that everyone in market may able to purchase Refresher, that
no other brand in recent time may offer (Understanding the Marketing Mix Concept – 4Ps,
2021). This pricing tactic may enable firm to attract people the most, who seek to buy and eat
healthy products just to look fit and stay healthy forever.
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Place-
The most importantly, Aldi may concentrate on distribution channels, where individual
customer may reach and purchase products according to their needs, without facing any issue to
reach at that location. In term of place, it may take initiative to start selling new Beetroot juice
mix with watermelon via existing outlets where management may set specific section and place
all the boxes, and packets of new product, which capture the eye of customers and make them
able to purchase that, without paying too much for that as they are pocket friendly.
Promotion-
Along with above actions, implementations and initiatives, firm and its marketing section
may take approach to create the best and most influencing marketing content, which people may
watch and take instant decision to purchase a new product. For purpose of that, marketer may
utilize social media as digital advertising and holdings as traditional marketing methods, which
make promotion much easier for them and bring a lot of benefits in term of increasing sales that
is also important for company to maximize.
RECOMMENDATIONS
Aldi and its management may obtain unexpected benefits via producing, selling and
promoting their juice (Refresher) as new product. They may do so by following possible
suggestions and these are;
 Marketer of chosen supermarket can analyse proximity as a close relationship between
their company and target customers. It can help them to determine reason behind their
strong bond and loopholes, due to that some consumers switch to other companies in
retail industry for purchasing their products and taking pleasure of services offered by
brands.
 Another approach that they can take into their consideration is development of VRIO
format, which allow firm to identify valuable, rare, imitate and organized resources that
marketer, management and production department can utilize to gain competitive
advantages. It can be helpful to make brand competitive in term of providing and selling
Refresher that in the recent time individuals prefer to purchase and also do the same in
the future.
 They can take effective approaches and strategies into their consideration, for example
Blue Ocean tactic (Priilaid, Ballantyne & Packer, 2020). This strategy is simultaneous
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pursuit of lost cost and differentiation to open up a new location and produce a product
according to emerging demand of customers. According to this strategy, firm can focus
on accepting innovative concepts and concentrate on procedure of new product
development, which help to drive their sales above the expectations of stakeholders.
 Aldi and its marketing section can take varied or specific product life cycle tactics into
their consideration. For example, rapid and slow skimming as well as rapid penetration.
Organization can utilize rapid penetration tactic, according to that it can launch a new
product at a low price with effective promotion, which in return provide benefits in term
of gaining attention of customers, increasing profits margin and productivity (Dmitrijevs,
2020).
CONCLUSION
On the basis of above discussion, it has been concluded that organization has successfully
and effectively promoted its new Beetroot juice mix with watermilon in Australian market, by
systematically using social media marketing channels along with traditional advertising
approaches. It has increased the productivity and profitability level, by conducting practices after
analysing current market situation in term of determining external factors that has impacted its
venture in negative and positive manner. From above analysis, it has been discussed that with the
help of competitors and market analysis, management has developed effective marketing plan
even better than their rivalry companies, by including valuable elements into that such as pricing
strategy, place and promotion. Along with above outcomes, they have also gained the advantages
of competitive environment by producing innovative and healthy Beetroot juice mix with
watermilon that currently customers have considered as healthy snack and preferred to purchase.
Moreover, by summing up above study, it has been summarized that by following the suitable
suggestions, company has also obtained the benefits of new product success in market in term of
increasing number of its sales within Australia.
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Online
Understanding the Marketing Mix Concept – 4Ps. 2021. [Online]. Available Through: <
https://www.cleverism.com/understanding-marketing-mix-concept-4ps/>
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