Marketing Essentials: Comparing Marketing Mix and Producing a Marketing Plan

This document discusses the marketing mix and its role in achieving business objectives. It compares the marketing mix of different organizations and provides insights into producing a basic marketing plan. The document also includes a SWOT analysis, Porter's Generic strategies, and STP analysis.

Marketing
Essentials
1

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................3
P3 Compare the marketing mix of different organisations in planning process to achieve
business objectives.................................................................................................................3
TASK 3............................................................................................................................................7
P4 Evaluating and producing a basic marketing plan for an organisation.............................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
.......................................................................................................................................................12
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INTRODUCTION
Marketing in the world of business refers to the advertising, publicity and sales
techniques perform within the organisation (Baines, Fill and Page, 2013). The marketing
activities begins after the product or service is designed, produced and is ready for sales and
delivery. All marketing efforts are focused in identifying, analysing and satisfying the customers
needs, wants and desire. Hence, all the activities are carried out in such a way that they
contribute to the success of business(generating profits) with customer satisfaction. The
organisation chosen for this report is ALDI. The company was founded by brothers Theo and
Karl Albrecht in year 1913 in Germany as the leading grocery store chain. ALDI has established
its brand image in market and is a top competitor in the global retail food industry. The report
covers following topics that are key roles and responsibilities of the marketing, how these roles
and responsibilities relate to the organisation, the way in which organisations apply the
marketing mix in the planning process to achieve its goals and producing a basic marketing plan
for an organisation.
TASK 1
(Covered in Presentation)
TASK 2
P3 Compare the marketing mix of different organisations in planning process to achieve business
objectives.
The marketing mix refers to the set of activities that a company uses to promote its
products or services in the market (LEHTINEN and MÄKINEN, 2012). The marketing mix is
commonly known as Seven P's of marketing. These seven P's are: product, price, promotion,
place, physical evidence, positioning and people. As needs, wants and desires of people changes
regularly on frequent bases, one should continually revisit these 7 P's to make sure that they are
on track in respect of market.
To understand this concept better, let's analyse marketing mix of ALDI and Sainsbury.
Basis Aldi Sainsbury
Product ALDI provides affordable food Sainsbury has a wide offering
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products to the customers that
are of the same quality as other
brand products. The company
source its products from
selected suppliers and then
branded as their own products.
Other than food products and
beverages company also deal
in fresh fruits and vegetables,
beauty products, clothes,
household goods and
electronic products.
for its customers as it looks
after developing new products
and enhancing the existing
range of products. The
company has 2 formats,
supermarkets and local
convenience store, in which
offering certain % of its own
brand products with other
basics like food, stationery,
etc.
Price The company has a strong
customer base as it is offering
cheap price products which
aren't available with the
competitors. The use of
various pricing polices such as
unit pricing strategy(using this
strategy so that customers can
easily compare), competitive
pricing(using this strategy in
case of high competition to
pass the benefit to the
customers) and loss leader
pricing(using this strategy to
bring customers to stores by
offering products at cheap
prices) to maintain its position
and brand image in the market
Sainsbury is focusing on
providing the customers 'the
value for money' and for that
maintains the quality of
products and services ensuring
customer retention. The
company is using competitive
pricing policy in selecting
strategic price points to best
take the long team market
advantage over the
competitors. Also use the price
discrimination policy to obtain
a premium price of products as
it positions itself in the high
end market.
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place.
Place Aldi has established its
presence in more than 18
countries worldwide and keep
its stores layout very simple
for customers to have
minimum costs (Nguyen, and
Simkin, 2012). The company
acquire all the products in bulk
and ensure minimum waste
disposal while transportation
and uses environmental
friendly techniques in its
stores.
Sainsbury has established its
presence in global market as
largest chain of supermarkets.
In addition to this company
offer home delivery services to
customers and few stores
operate 24*7 hour to provide
easy to the customers.
Promotion In order to maintain its cost
saving strategy company
invests negligible amount in
promotion activities. Aldi uses
a newsletter called 'Aldi
informs' on weekly bases to
inform customers regarding
the offers and discounts which
is handed over to them in
stores or by direct mail or
newspaper. For promotion
activities company is
extensively using email
marketing.
The company is using two
types of strategics for
promotion that are ATL(above
the line) and BTL(below the
line) to draw customer
attention and build its brand
name. In case of above the line
company uses broadcast media
like television and radio to
communicate its corporate
image to the public. Where as
in case of below the line
promotion it uses database
marketing, sales promotions
and packaging activities. They
are using earn points on each
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purchase, concept to increase
its sales and build customer
loyalty.
People Aldi offers low customer
services in comparison to
competitors as staff members
do not assist customers in
product selection (Pappas,
2017). This is because they
have designed the store layout
in such a way with proper
sections to reduce the number
of employees. They use quick
scanning products to make the
billing process much faster
than others. They pay much
higher salaries to its
employees then that of
competitors and also provides
on the job training to its new
staff members.
The company has a good mix
of professionals and trained
experts who are aware of the
sensitivity of consumer
behavior. New staff members
are trained on the job to satisfy
customer needs as company
always give first preference to
its customers.
Process The company uses sheer
layout to provide easy to
customers in understanding the
company system as customers
generally select the products
on their own and this has
reduce the need to assist the
customers.
Sainsbury has made it
convenient for customers to
shop online with its click and
collect service. The company
has made changes in its
delivery slots and pricing
which has lead to raise in order
numbers and has instilled
customer loyalty (Pike, 2015).
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Physical Evidence The company globally known
for its simplest business
processes, standardizations and
global pricing. It provides
comparatively low price
products and maintains the
same price for groceries in all
stores worldwide.
Sainsbury is using excellent
marketing strategy for its
products using physical
evidence. It is using different
store designs and shelves
layouts in order to address
various needs of the
customers. The customers are
satisfied with the quality of
services provided by the
company such as the baskets
and trolleys ensures good
shopping experience.
From the above table it is studied that Aldi is offering products at affordable prices with
good quality where as Sainsbury is providing its products comparatively at higher prices. Both
the companies are operating at international level where Sainsbury is providing 24 hours services
to its customers. Aldi company is not sending much on the promotional activities rather than
focusing on increasing its stores and product range. Where as Sainsbury is sending its huge
amount in promotional activates to attract the customers. Aldi is following simple store layout to
provide convenience to its customers at stores where as Sainsbury is using online and offline
platform to sell its products in marketplace.
TASK 3
P4 Evaluating and producing a basic marketing plan for an organisation.
A marketing plan refers to a blueprint that outlines a company's over all marketing
strategics and efforts. It is a comprehensive document that outlines implementation of company's
marketing strategy and use of resources to achieve objectives.
SMART objective
SMART objectives refers to a blueprint which allows managers and staff members to
create, track and accomplish short and long term goals and objective (Pike, 2016).
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The SMART objective is to introduce 'Hand dryer' in the existing market within 1 year in
order to increase profit margins by 20%.
 Specific- To introduce 'Hand dryer' in the existing marketing and targeting the existing
audience.
 Measurable- The measure of the SMART objective is to have quantitative measure that is
to increase the business profit margin by 20%.
 Achievable- The point of a target is to challenge and motivate the departments and staff
members to accomplish a task.
 Realistic- The objective set by the company is realistic and attainable in nature with
proper functioning of departments.
 Time bound- The objective need to be achieved within one year in the existing market.
SWOT Analysis
SWOT refers to strengths, weaknesses, opportunities and threats. SWOT Analysis is a
technique which is use by every organizations and businesses to assess themselves on these four
parameters.
Strengths
 The product would be able to survive in market because of the low pricing that they are
able to give to the customers.
 The company enjoys high level of customer support as they offer wide range of choices
at affordable prices.
Weaknesses
 Due to low prices quality will suffer, hence create a lot of dissatisfaction among the
existing customers.
 Low pricing strategy will lead to poor penetration in high income group as they don't
prefer shopping from discounted places.
Opportunities
 Preference for customers: The needs of the customers are increasing and are willing to
pay premium for services thus stores can charge higher by offering better quality
services.
Threats
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 Competition- Aldi is facing a lot of competition from other companies such as Walmart,
etc and also from e retailers such as amazon, etc leading into potential threat from them.
Porter's Generic
A companies position within its industry describes whether company's profitability is
above or below the industry averages. There are three basic type of competitive advantage(cost
leadership, differentiation and focus) which helps in determining the strategies and competitive
advantages to the company (Simkin and Dibb, 2013).
Cost leadership
As the main focus of the company is to provide low cost products to its customers, hence
able to become low cost producer in its industry.
Differentiation
Coming up with a new range in market with affordable price is a unique position
company is considering to meet the needs and wants of customers which will ultimately lead to
accomplishment of objectives.
Focus
The generic strategy of focus company is using to identify the narrow competitive scope
within industry. The two variants of focus strategy are:
 First is cost focus that is providing a cost advantage to its target segment.
 Second is differentiation focus, to determine the differentiation in its target segment that
is difference between focuser's target segment and other segments in the industry.
4P's of Marketing Mix
Marketing mix of ALDI explains the marketing strategies such as pricing, advertising and
distribution strategies they are using to increase its brand image and profitability.
Product
Company is already dealing in wide range of products and introduction of new product in
the market will lead to increase in sales volume and customer satisfaction.
Price
Aldi has a strong customer base as they focus on providing cheap price and good quality
products to its customers. The unit pricing strategy provides facility to customers to compare the
product with that of others and low prices for new product will help in gaining market share
quickly.
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Place
The company is spread worldwide with large number of stores in different countries with
simple store layouts to minimise costs for the customers (Pike, 2016).
Promotion
The company is using comprehensive promotional activities in marketplace to attract the
large customer base. Aldi is majorly using Email marketing to inform all its customers about
offers and new products.
STP Analysis
STP refers to market segmentation, targeting and positioning of products and services of
company in the marketplace where this analyse help in identifying best market which is fit and
suitable for products.
Segmentation: The company is dealing in grocery products which people are looking to
purchase at competitive price.
Target Market: The company is targeting malls and big office units.
Positioning: to provide the customers with more sustainable products by providing
private labels which have the same quality as other brands.
PESTEL Analysis
The PESTEL analysis is conducted in order to know about the external factors which
might effect the functioning of business,
Political Factor: Mostly company is operating in Europe and USA, so at present they are
free from conflicts and war type situations that is free from high level of conflict and political
susceptibility.
Economic Factor: The inflation in the grocery market has increased due to which prices
got high. The company is discounted supermarket, so customers will move to its products as they
are providing comparatively cheaper products.
Social Factor: Due to increase in wage rates the company is able to provide better living
standards to its employees.
Technological Factors: The company is turning towards adopting latest technology in its
business system in order to provide efficient services to its customers such as computerise billing
system, cashless transactions and self service checkouts.
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Environmental Factors: The company is regulating its production activities to minimise
its pollution and waste. Moreover providing support to local producers and ensuring their
sustainability.
Legal Factors: The company is following all the legal rules and policies of government
as a result it is free from legal disputes.
Monitoring and Controlling
These activities helps in collecting, measuring and disseminating the performance of
employees within the company and trends to forecast the requirement of resources and
accordingly takes corrective actions.
Evaluation
From the above study it is consider that current market conditions are favourable for the
company to introduce its new product in market. As company has successfully established its
brand name in market place, so it won't face much difficulty in launching new product as it is not
require to conduct promotional activities for product.
CONCLUSION
From the above study it has been concluded that ALDI has a distinct approach to the
retail sector that has given a competitive advantage to them in this marketplace. It's unique
balance of marketing mix has enable it to provide high quality products at the lowest possible
price. The company is able to provide value and good experience to its customers. These Seven
P's of marketing mix helps in analyzing and optimizing the business of the company. The
company is known for its low prices and simple store designs as it limits its store sizes, and
focuses on efficiency to lower labour costs.
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REFERENCES
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