Elements of Marketing and Interrelationship with Other Functional Units of ALDI

This report evaluates the key elements of marketing and the interrelationship between marketing and other functional units of ALDI. It also discusses the difference in marketing mix between ALDI and ASDA.

MARKETING
ESSENTIAL

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Key elements of marketing ....................................................................................................3
P2.1 Role and responsibilities of marketing................................................................................4
P2. Interrelationship between marketing and other functional units of ALDI............................5
P3.1 Marketing Mix.....................................................................................................................7
P3.2 Difference in marketing mix of ALDI and ASDA..............................................................7
P4 Strategic Marketing plan.......................................................................................................11
CONCLUSION..............................................................................................................................15
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing involves activities that helps organizations to promote its products and
services to customer through several medium such as advertisement, door to door promotion,
templates, publicity (Paurva, 2019). The marketing play great role in the pandemic situation of
COVID-19 as the manager took all the necessary step in order to minimize the risk. The Brexit
become a big issue for UK market the marketing help organization to resolve this issues.
Marketing help to define and manage the brand also help to monitor the activities of
organization.
The Aldi is retailer of Germany this organization is founded by two different families
having more than 10,000 stores in more than twenty countries. Aldi have its headquarter in
Essen, Germany. This report is evaluating the elements of marketing which are influenced by
Brexit and COVID-19 situation. The respective role and responsibility that marketing have in
this contemporary issues. Interrelation of marketing function with other functions. Further it will
determine the different strategies applied by Aldi to achieve its objectives (Blythe and Martin,
2019). The comparative marketing mix of Aldi and one of it's competitive to achieve their goal.
MAIN BODY
P1 Key elements of marketing
The marketing is very vast term, which involves all the elements for successful marketing plan.
The main elements are product, price, place and promotion. To minimize the risk of Brexit and
COVID pandemic the Aldi is focusing on elements of marketing.
Product: The Aldi is having lots of product range to attract customer's in the market majorly the
company offers foods, beverages, bakery, health and beauty and other grocery item are main
item, yet they are influenced by the Brexit and pandemic period as the people who were earlier
preffered the goods of Aldi in UK are now chosen less because the government have changed the
roles and regulation in that the product are imported in a particular limit through UK. The Aldi
also sell lots of products with its own label brands. The companies' manager is focusing on
Safety measure after this pandemic situation of COVID-19 customers are more aware about the
safety, and they check this in their chosen product (Chatterjee, 2017).500

Price: Basically the product which are sells by Aldi are at cheaper price and quality is also good
as compared to its competition. The co-interrelationship between marketing and other functional
units of ALDI
Place: The Aldi makes such a distribution channels which provide its product at every part of the
nationally and internationally. The company is making products available for customer's to
purchase. The company is having lots of stores in 19 countries across the world. As after the
pandemic time of COVID-19 people are not able to buy the goods of Aldi but manager make
another strategy to sell its product. They are started online selling of their products with safety
measure which can satisfy individual needs for customer's. After the Brexit the company face
several issues to transport their goods to UK as the government have imposed different policies
and limitation on import and export of goods and services.
Promotion: The company is using different type of promotional activities but after the pandemic
period for COVID-19 the company is using more use of digital methods to promote its goods and
services in the international market. The Aldi is using social media and its website to promote as
the stores and personal promotion are being stopped. The Aldi is using comprehensive way to
promote its product in international market. The company is mostly using TV ads to create good
image in the mind of people of EU as well as other nations in the world.
P2.1 Role and responsibilities of marketing
The Aldi is a multinational retailer company providing its product throughout the world. The
marketing manager of Aldi is creating various strategies to reach its pre determined goal and
objectives (Laczniak and Murphy, 2019). Manager also keeps inspecting the market to grab
opportunities that arise in the market for the business. There are different roles and
responsibilities of a marketing manager :
Listening to buyer needs: The manager main aim is to listen to its customer's so that they can
know about the preference of customer's. As manager make strategies for marketing and for that
they need to get closer to its customer's and check the needs. It is the task of marketing
department to receive the feedback. The company is using two different channels of receiving
feedback. The intrinsic channel involve surveys to grab the required information and externally
the action performed that are needed to understand the needs of user in a way that audience get
convert in customer's. As in the pandemic situation of COVID- 19 the customer's of Aldi needs
more safety measure with their require product. In Brexit the customer's need that their preferred

product is available when they are in need of that as UK have been existed from EU market so
the Aldi have to make available the goods to UK people.
Defining and managing your brand: it is work of marketing manager to explain the brand as
well as its products to the people and potential customer's in the international market. The
manager also show where they stand in the market so that audience can get the knowledge about
the company with its product quality. The company marketing manager is regularly managing
the marketing activities for promoting the products and services. In the pandemic period of
COVID-19 the manager is trying to minimize the risk and trying to manage the activities of
marketing.
Monitor competition and track trends: The marketing of Aldi played a vital role to analysis
the latest trend which is being running in the market. With the help of marketing function the
company can monitor the competitive positioning of the company. To avoid the mistakes the
marketing the manager should make analysis of its competitive companies. The company can
also make use of marketing to avoid the risks which are being arises due to contemporary issue
Interrelationship between marketing and other functional units of ALDI
Work and brand value: The marketing of Aldi help to develop a specific branding value of its
product and brand in the international market. Basically any brand show the respective feeling
that is product gives to its customer's. Interrelationship between marketing and other functional
units of ALDI
The marketing department is responsible for the different work of the organization. After
the Brexit situation the company is facing issues related to creating the better brand value in the
mind of potential and new customer. In the time of COVID-19 the brand value is reduced as the
people are not able to consume the product but after some time the manager make affords and
modified its distribution chain so that its brand image get improved.
P2. Interrelationship between marketing and other functional units of ALDI
The profitability of business is highly dependent on the marketing department of an
organization. The overall responsibility of increasing market share and growth in revenue for the
organization is totally upon the marketing department (Kirova, 2017). With the help of effective
and efficient marketing plan, the organization is able to satisfy the relationship with their
consumers as well as the organization. The primary function of marketing department of ALDI is

to listen needs and wants of the customers. By making a healthy relationship with the customers,
ALDI can understand the diversified needs and wants of the consumers.
To design an efficient marketing plan, the department needs to receive customers
feedback at regular intervals which helps them to analyse the changing and current situations and
require coordination with finance department which includes major financial dimensions. Cost
incurred and profit units are expressed in monetary terms and budgets needed to implement
strategies are all important components of marketing planning. Major marketing decisions are
dependent upon and should be viewed as investment decisions. The linkage between marketing
and finance departments is not only limited to the use of financial inputs but also involves capital
requirements, cash flow analysis, credit and other financial policies required marketing input.
The link between marketing and production department of ALDI is a two-way process.
Production capabilities determine the actions of the marketing department because ultimately the
marketing department promote the products which are produced by the production department of
the organization. Operations include various other activities such as warehousing, packaging and
distribution of products. Production is a place where goods and services are generated and
prepared. And thus marketers need to sell products and services that are currently in stock or can
be made within the time limit by the production department of ALDI.
The connection between marketing and human resource department is also includes
important aspect as the HR department helps to recruit marketing assistants for the company
which helps in selling and promoting the products and services offered by ALDI (Slater, Hult,
2018). HR helps the marketing department to assist at interviews and support marketing heads to
make effective job offers. HR managers also has been used by the marketing managers of ALDI
at the time of training.
The association between marketing and research & development department also plays
a vital role in the functioning of activities within the ALDI. The research and development
department should be driven by the marketing concept. Needs of consumers or potential
customers should be fundamental to any new research and development in order to fulfil needs
and wants of the customers in order 500 to deliver products which provides complete satisfaction
to the consumers. The research and development department managers collects the reviews of
customers from the marketing department as the marketing managers are fully aware about the
current and innovative trends running the market space and followed by the clients. So, they

provide the feedbacks related to desires of customers and then the R&D department work
accordingly to meet the expectations of the clients.
P3.1 Marketing Mix
Marketing mix are the set of actions that an organization uses to promote its brand,
product or services in the market space. Marketing mix elements make up the business plan for a
company very effective and can give it great success. And if handled in wrong ways might lead
to take long time to recover the situation. This process needs a lot of understanding, market
research and consultation with experts. ALDI uses a combination of above the line and below the
line promotional strategies with a focus on its brand image. Organization focuses on balanced
marketing mix to meet the needs and wants of the customers. For company, increase awareness
and improve brand recognition, increasing demand, Highlight the superiority of products and
services. These activities use as above the line promotional activities however, below the line
promotional strategies includes using a range of activities such as social media advertising,
targeted email customers, 3rd party endorsements public relations, media relations and corporate
social responsibility as well (Pomering, 2017). The customer analysis of Aldi consists of both
men and women in the mid and low level income groups. As, the brand is famous for its offering
of good quality of products and services with competitive low prices.
P3.2 Difference in marketing mix of ALDI and ASDA
Elements ALDI TESCO
Product Organization provides goods
which are sourced from
selected suppliers and are
branded as their own to have
full control over price and
production which is ultimate
reason to serve the customers
with low price products with
high quality. In winters, ALDI
provides snow gear and warm
TESCO provides wide range
of products which includes
food products along with
financial services. Company
also offers free music
downloads services as well.

camping gear, thus modifying
its product line as per season
and also known as largest
retailer of wine in Germany.
Price ALDI has strong customer
base due to his cheap price
strategies and quality of goods
that has been offered by the
company to their consumers
which are not available with its
competitors.
Tesco also attempts to
maintain lower price as
possible without reducing the
quality of its products.
However, company uses a club
card system in order to serve
discounts to their consumers.
This is the price promotional
strategy of the company. The
major difference among both
the companies is that Tesco is
not providing self branded
products to their customers.
Place ALDI group has more than
18000 stores in around 18
countries and approximately
opens its new store every week
in Britain. Company procures
all the products in bulk and
then store them at local
warehouses along with the
surety of quality of products.
Organization keeps its store
layout very simple to have
minimum costs for the
customers. ALDI ensures
Tesco is headquartered in
chestnut, England. Company
offers both the channels to
distribute its products and
services with the help of online
as well as offline. Company
focuses more on online
channels and make use of
small offline stores for easier
accessibility. Thus, company is
not in favour to set up more
stores or outlets in physical
format in the market space for

minimum waste disposal while
transportation of goods and
services. Company also has
online presence which allows
customers to check products
online as well.
the consumers.
Promotion ALDI claims its promotional
activities to be cost saving
strategy and according to
them, company invests
negligible amount for
promotion and even does not
have a marketing department
in Germany. Company offers
some 'Super buyer' offers
which are only available till
stock lasts and changes every
week. Organization offers such
coupons over to customers in
stores or reaches them via
email or newspaper. ALDI
initiates number of PR
activities along with projects
concerning corporate social
responsibilities.
TESCO provides lot of
exclusive offers to its
customers. Company provides
offers like 'buy one get one
offers' 50% discount, etc.
Additionally, company uses
club card services for
discounts. TESCO is able to
provide such kind of discounts
because the company focuses
more on online services rather
than offline stores which helps
to reduce the investment of the
company.
People ALDI put store layout in a
very thoughtful manner where
everything divided into proper
sections which helps to assist
customers in product selection
Approximately, 420,000
people work in Tesco.
Company has great number of
customer assistants who plays
a vital role in the success of

in efficient manner along with
lower need of employees
required on every floor. ALDI
pays its employees higher than
TESCO and provide on the job
training to their employees as
well.
the organization. Tesco also
invests in job training and
developments programs but
many analysts argue that
company fails to motivate its
young employees or workers
(Thabit, Raewf, 2018).
Process Company's store layout makes
product finding very easy and
thus requires less number of
employees because the
customers are able to select the
products on their own.
Company keeps limited
number of high quality of
products with nominally priced
brands to prevent customers to
getting confused. The stores
include larger barcodes for
quick identification and longer
conveyor belt for fast billing.
Tesco also focuses on
processing customers order
such as in offline stores
customers pick up their
products and go to customer
assistants for billing the
products. The facility of self-
service machines are also
available for consumers to
make the payment system easy
and effective.
Physical Evidence ALDI is known worldwide for
its simplest business processes,
standardization and global
pricing. Approximately, 85%
of products in their stores are
from home brand. Company
provides 30% cheaper
products than their
competitors. It is the one and
Tesco focuses on easy
reachability of stores as their
stores are easy to navigate with
all products well categorized
which helps the customers to
find their products. The
website of Tesco is also
attractive and very easy to
operate.

only store which maintains the
same price throughout the
world.
P4 Strategic Marketing plan
The marketing help to implement the strategies that manager has made to achieve its end
goal. The marketing plan involves a complete view of marketing department of Aldi and its
advertisement goals. As in the contemporary situation of COVID-19 and Brexit various
measures has been taken by the organization in order to sustain their image in the competitive
environment (Hollensen, 2019). Strategic marketing planning includes setting goals and
objectives, analysing internal and external factors, product planning, its implementation and
tracking of progress occurred.
Business Plan
Advantages
 Determines demand for product
 Identify needs and wants of customers
 Identifies new product areas
 Identifies potential customers
Disadvantages
 Identifies weaknesses in business skill
 Creates unrealistic financial projects
 Can lead to faulty marketing decisions
 Identifies weaknesses in overall
business plan
SWOT Analysis
Strengths
 Strong distribution network
 Reliable suppliers
 Good returns on capital expenditures
 Strong brand portfolio
 Superb performance in new market
Weaknesses
 The profitability ratio and net
contribution % of Aldi are below the
industry average.
 Financial planning not done properly.
 Limited success outside core business.
 High attrition rate in workforce.
 Need more investment in new
technologies
Opportunities Threats

 Lower inflation rate
 Opening up of new market because of
government agreement
 New technologies provides opportunity
to the company
 Government green drive
 Economic increase in customers
spendings
 Rising pay level and increased price of
goods might create pressure on
company.
 New technologies developed by
competitors
 Intense competition
 Liability laws in different countries
 New environment regulations after
Brexit
Porters five force model
 Competitive rivalry (High): The competition in the retail industry is relatively high as
Woolworth, Coles and Walmart are some major competitors of Aldi.
 Threat of new entrants (Medium): The requirement of large establishment and capital
investment acts as entry barrier in this industry.
 Bargaining power of suppliers (Low): Suppliers are always looked for retailers with the
largest orders and are more than happy to provide on discounts. Therefore, suppliers are
in no position to influence the market prices of products or force them to sell on higher
price.
 Bargaining power of buyers (High): The retail store industry operates and revolves
around selling goods at the minimum cost as much they can. This gives great bargaining
power to buyers.
 Threat of substitutes (High): All the retailers and giant supermarkets also sell the exact
same products which leads towards the threat of substitute as a higher threat (Gürel, Tat,
2017).
PEST analysis of ALDI
ALDI pest analysis examines the different external factors which includes political,
economical, social and technological which impacts the business of the organization which
highlights the external scenarios which impacts the brand image (Alava, Mu, 2018).

 Political factors: Any conflicts between the countries would impact the sustainability of
the company as ALDI is a supermarket chain with stores around 20 countries. After
Brexit the prices of fresh goods arises and also increases the scope of selling increased
priced goods at discounts will force customers to shift from the competitors to
discounters like ALDI which more or less give advantage to the company. However, the
organization faces threat from weakening the value of pound and due to which a price
war going on between the supermarkets in the UK which had become a major reason of
the drop in the profit margins of the company. Economical factor: After Brexit, increased supermarket discounting has led to reduce the
price of the goods which has made it more difficult for the Australian reserve bank to
cope up desperately from the situation of inflation. Due to increased demand of ALDI,
various competitors like Morrisons has to close their stores while ASDA and Sansberry
announced there merger. Social factor: Currently, ALDI is among the highest paying supermarket in the UK
which provides higher wages to their employees. Higher wages automatically increase
the better standard of living within the society. The company is able to provide proper
health facilities and food arrangements to the society. The organization believes in giving
their customers a feeling of complete satisfaction and pleasurable experiences. Company
believes in providing goods at the lowest price and not giving emphasize on ambiance of
the stores.
 Technological factor: Being a supermarket chain, ALDI needs to be updated in terms of
technology in order to enhance customer services. Customers nowadays require fast
services rather than standing in queues outside the stores. So, in order to fulfil the current
needs and demands of the society, the organization approach their clients with the help of
technology in terms of approaching them with the help of social media platforms. The
organization provides various payment services to ease the efforts of the customers while
purchasing the items from ALDI whether online or offline (Sudari, Tham, 2019).
Objectives
 Achieve 10% increased organic food revenue contribution within two years.

 Acquire 50,000 new organic food lovers as customers this financial year at an average
cost per acquisition of £30 with an average profitability of £5.
 Increase the average order value of organic food item sales to £50 per customer.
 Increase active customers purchasing of organic items at least once a quarter to 200,000
in a marketplace.
Segmentation, Targeting and Positioning
With its effective practices and competitive prices, company has targeted the middle income
group customers worldwide and position itself as the most economical retail outlet which offers
products at 30% cheaper price than its competitors for organic food products as well with its no
frills strategy and effective discount options targeting both men and women equally (Camilleri,
2018).
Tactics
Marketing mix of ALDI Product: ALDI introduces new organic food items into their business activities because
in the current pandemic situation the health awareness among customers has been
increased drastically. So, after taking into consideration the health point of view,
company wants to opt for new organic range into there offered products. Price: ALDI uses unit pricing as well as competitive pricing strategy so that customers
easily compare the prices of products to encompass the benefit of it. In organic food
products also, company will use competitive pricing strategy in order to sustain their
market position (Prentice, Wang, 2019). Place: ALDI has more than 8000 stores in around 18 countries. So, the organic food
range will be available at all the stores of the organization so that customers can easily
able to purchase the products. Apart from offline stores, the products will be available at
online sites as well to make it convenient for customers to purchase items in such
pandemic situation.
 Promotion: In order to promote organic food items the company will follow certain
measures in order to aware the customers about the advantages of the usage of such items

through various modes of advertising such as social media, digital marketing, traditional
marketing, etc.
Budget
Expenses Cost in £
Raw material 3000
Staff 1500
Training and development of staff 300
Transportation 200
Advertising 1500
Marketing and sales 1500
Public relations 600
Venue 1000
Miscellaneous 400
Total £10,000
Action
The manager of ALDI distributes the work in efficient way i.e. according to the skills and
talents of individual employee to make this plan successful in every term. As company wants to
introduce organic food items due to increased awareness of health among customers specially in
the present Covid scenario. For such kind of introduction of new range of food items the
company have to hire highly skilled and knowledgable candidates who have proper knowledge
of organic food items along with its usage and advantages in the life of consumers (Rana, Paul,
2020). Due to which the company is able to educate the customers who are not that much aware
about the organic products. So, with the effective actions and measures taken by the firm, the
managers will able to run the business plan effectively.
Control

On the basis of various information technologies the managers of ALDI tries their
maximum to evaluate the performances of the employees that whether the planning is running
towards the correct direction which will achieve goals and objectives of the marketing plan or
not. And according to that corrective measures has been taken by the managers and necessary
changes has been done by them if required (Wang, Kajungiro, 2019).
CONCLUSION
From the above report it has been concluded that marketing plays a vital role in
development and future enhancement of the organization. In this report it has been analysed the
evaluation of elements of marketing which are influenced by covid situation. This report
describes the marketing plan of ALDI in order to introduce new organic food items in their retail
stores with effective marketing strategies. Description of marketing mix differentiation also
taken to be considered in the above study which helps the organization to evaluate their measures
whether they are effective in this competitive world or require some necessary improvements.

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