Marketing Plan for ALDI Expansion

The given assignment involves creating a marketing plan for ALDI's expansion to increase profits. The plan includes developing products and services, strategy implementation, and promotional activities. A budget of $2500 is allocated for various activities such as product development ($1000), promotional activities ($1500), and evaluation ($500). The marketing function plays a vital role in attaining organizational goals and objectives. The marketing mix consists of 7Ps (product, price, place, promotion, people, process, and physical evidence) to develop strategies.

UNIT 2
MARKETING ESSENTIALS
Course: HND in Business
(Level 4)
Academic Year: 2018-2019

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Explain the key roles and responsibilities of the marketing function....................................1
P2 Explain how roles and responsibilities of marketing relate to the wider organisational
context..........................................................................................................................................3
LO 2.................................................................................................................................................4
P3 Compare the ways in which organisation applies the marketing mix to the marketing
planning process to achieve objectives........................................................................................4
LO3..................................................................................................................................................7
P4 Produce and evaluate a basic marketing plan.........................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In every organization marketing department plays a significant role in achieving aims and
objectives. It helps in growth of business in different markets. The department roles are spread
into wider context. They are responsible for performing many functions such as advertising,
developing new products and plan, etc. in today’s modern world marketing has become more
direct and personal. It focuses on creating customer value and managing CRM. This report will
show roles and responsibility of marketing and its interrelationship with different departments. It
will also describe how marketing mix is applied in planning process. At last it is discussed how
marketing plan is developed and executed. For present report organization selected is ALDI. It
belongs to retail sector and operates all over the world.
LO 1
P1 Explain the key roles and responsibilities of the marketing function
Every business requires its products and services to be marketed. For this they require an
effective marketing strategy. Marketing is a concept of identification of customer needs and
developing products to fulfil them. It also includes advertising and promoting products through
various mediums and generating more sales to remain competitive in industry for long term.
Marketing also include branding management where efforts are made to maintain brand in
market. Organisation overall growth is dependent on marketing function (Chernev, 2018).
Generally, there are five core concepts that include production, product, selling, marketing and
societal, these all emphasis on growth and development.
Digital marketing- It has emerged as new trend in which focus is on advertising through social
media.
Green initiative- Companies are focusing in promoting green initiative in which they spread
message of keeping the environment clean and safe.
There are several steps in marketing process that is as follows:
 Analysing opportunities- This is first step in which companies identify opportunities in
the market. It is done by finding out competitors, needs of people, etc. moreover, huge
amount of data and information related to trends, customers, etc. are evaluated and
analysed. With help of it a complete package of products are designed and then changes
are made in it. Opportunities are beneficial for long term growth and survival of
company.
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 Selecting target market- It is most crucial step in which target market is selected. This
has to be done in precise way as it can impact on marketing plan to a great extent
(Nieminen, 2017). In this STP is done to identify how market will be segmented and
product is positioned.
 Developing marketing mix- After selection of target market marketing mix is prepared
this process consumes a lot of time as each and everything is elaborated in proper way.
Here, 7 P’s are addressed and mentioned in proper way.
 Control – At last control measures are developed so that plan can be controlled and
monitored. It ensures that plan is properly executed and goals and objectives are attained
in given time. Moreover, results are compared with set goals so that changes are done
while developing next one.
A marketing manager must play different roles. They are different responsibilities as well
must be followed by them:
Collecting data and information – the data and information collected gives an insight about
needs of customers. Marketing department gathers data from different markets so that needs can
be identified (Soboleva, Burton and Khan, 2015). The data is also analysed to obtain information
about market condition and sales of each product in units. Alongside this, manager must identify
current trends in market and change in taste and preference of society.
Developing products and services- It is the core function of marketing in which they develop
products and services of different markets. It is done by collecting and analysing data. The
overall design, features, packaging, etc. of product is identified. For this, coordination is done
with research and development department. Marketing function defines product features and
specifications and how it will be designed. ALDI develops products for different market as per
customer needs.
Strategy development and implementation – This is also a crucial function of marketing in
which strategies are developed and implemented. The strategies are integrated with
organisational overall goals and objectives (Withey and Panitz, 2015). Marketing department
coordinates with finance to get funds for implementation. It is also responsible for monitoring
and evaluating results. The strategy is developed for long and short time period and differs
according to market size, product, etc. Generally, the main aim of every business is to expand
operations in different countries so that more profits can be generated.
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Advertising and branding – This function also comes under marketing. Their role is to
advertise goods and services in markets through different sources. It is done by following several
medium of communication. Products needs to be advertised so that awareness in created among
people. Marketing manager suggest activities through which it is done. ALDI does effective
branding through ads, posters, etc.
P2 Explain how roles and responsibilities of marketing relate to the wider organisational context
Marketing function not only performs above mentioned role but is also responsible for
many other functions. This is because it is the duty of marketing department to sale product or
service in the market so that goals and objectives are attained (Kennedy and Parsons, 2014). It
has a wider role in context of organisation. Manager must develop strategies and implement
them in proper way. Their role is not just to promote but to run operations in smooth way. This
helps in increase in market share and sales. The wide roles are given below:-
Maintaining quality – Here, manager ensures that the quality of product is maintained. It is
done by developing some standards through which goods are manufactured. Also, manager
implements those standards and provide training to employees.
Pricing – Every product has its own price that is decided and given by marketing department.
The pricing is done on basis of some factors like quality, features, etc. Marketing manager do
pricing of different products. They have knowledge about consumer buying power and market
condition. In this way they set price of goods accordingly.
Identifying demand and supply- It is also a role of marketing where they have to determine
demand and supply of markets (Dudu and Agwu, 2014). Further, information is communicated
to production unit for producing goods. It is crucial to identify demand so that supply is fulfilled.
Moreover, it ensures balance is maintained between demand and supply.
Marketing interrelates with other department is various ways. They must communicate in
order to perform different operations. It is useful for overall growth and development.
Finance - finance unit allocates budget to execute strategy. The availability of resources gives an
insight to how much extent strategy can be implemented.
HR department - HR must hire employees for selling goods in market. A proper workforce is
required to perform different roles in marketing function.
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R&D department- R&D provide precise data and information. It is analysed by marketing
manager. This gives an overview on what type or changes must be made in product features
(Dioko, 2016).
Sales - Manager must coordinate with sales unit so that facts and figures can be obtained on how
much sales are predicted and in what time. Furthermore, is shows results of which product sales
in highest and lowest and in which market.
The importance of marketing is it helps in creating customer value. Through it, sales are
increased and revenue is generated. In addition, effective marketing benefits in branding and
creating a positive image in mind of people. With help of its organisational goals and objectives
are attained. ALDI belongs to retail sector and there is stiff competition in industry. Hence, they
must continuously engage in marketing activities in order to retain their customers. Apart from it,
company provide variety of goods to people, so they can recognise it easily and differentiate with
another company. It creates a distinct image in mind of customers. The company market value is
developed by marketing department. Without doing effective promotion it is difficult for ALDI
to create awareness in market. By collecting data, business decisions are easily taken. Marketing
provides a base for it. It shows company what to produce and sell. It acts as generation of new
ideas so that people taste and preference can be changed, this rise living standard of society.
Marketing helps in transfer and movement of goods from one to another. The customers,
wholesalers, etc. distribute goods by specifying needs and preferences of people.
Conclusion – It can be concluded that marketing function play many roles and responsibilities. It
analyses market condition and accordingly develop products. Besides this, promotional strategies
are developed and executed. The data and information gathered by R&D is analysed to
determine needs of people. Marketing must interrelates with other department like finance, HR,
etc. to ensure smooth flow of operations.
LO 2
P3 Compare the ways in which organisation applies the marketing mix to the marketing planning
process to achieve objectives
Marketing mix is a concept in which organisation uses 7 elements or P’s in order to
achieve their goals and objectives. It includes an entire plan and strategy through which ALDI
can expand in different market or segment. An organisation uses marketing mix in order to
compare with another. Basically, it is highly used in retail sector due to intense competition.
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ELEMENTS ALDI TESCO
PRODUCT ALDI is a reputed in UK and
provides a high-quality product to
their customers. It offers variety of
goods ranging from baby products,
poultry goods, wine, etc. this attracts
many people. it offers kinds of home
goods includes bike accessories,
stylish furniture, etc. (Marketing mix
of ALDI. 2018)
For example – ALDI products are
grocery, home goods, etc.
Tesco is UK leading retail chain
organisation. It offers wide variety of
products that include clothing,
electronics, etc. also, it is having sub
brands in cuisine and food sector. It
is bigger than ALDI and operates at
large scale.
For example tesco goods are
clothing, electronics, etc.
PRICE There is a tough competition in retail
sector. ALDI properly identify needs
of customer and then set price. They
have considered middle class people
in developing pricing policies. It has
adopted competitive pricing policy.
It does not focus on high pricing
strategy. This enables them to gain
trust of people and retain them.
For example – it focuses on low
pricing
Tesco pricing strategy focuses on low
class people. Due to this, they enjoy
huge customer base. It uses a club
card system in which points are given
to customers on each purchase
(Perera and Perera, 2018).
For example - They have adopted
price promotional strategy.
PLACE ALDI is supermarket chain that is
expanded in many countries. The
products are available in their outlets
in high streets, malls, etc. it is easily
recognised by people.
For example -Most stores are in small
Tesco stores are expanded in all over
world. It distributes goods in two
ways i.e. online and offline. The
company is having six different
offline type that are Tesco extra,
express, superstore, etc. this makes
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cities. It has led to gain strong and
loyal customer base.
easily accessible to people.
For example -The stores are highly
located in big cities. It gives access to
people to visit and purchase products.
PROMOTION ALDI promotes their goods through
effective strategies. It uses social
media platforms to attract people.
Moreover, it organises campaigns in
festive seasons for promotion
(Hossain and Rahman, 2017).
For example- ALDI uses PPC, SEO,
and method for promotion. It displays
posters, holdings, etc. within store to
attract people.
Tesco uses various sources to
promote their goods and services. It
is having own website that makes it
easy to advertise and attract large
number of people.
Furthermore, loyalty programs are
organised to attract people. Company
sponsor many events for promotion.
For example- tesco promote in on
social media, events, etc.
PEOPLE A high reputed image of ALDI
reflects its organisational culture. The
staff of ALDI treat customer well.
They assist and guide people in
shopping. Moreover, there is proper
communication in solving queries.
For example- ALDI staff wears
company cloths with logo
Tesco is having a highly trained and
experienced staff. They deal with
customers in respectful way. sales
assistants organise programs like
colleague privilege card, etc.
For example- tesco staff treat
customers with respect.
PROCESS ALDI is having a transparent process
through which it interacts with
stakeholders.
For example- customer can pay
online at store.
The company process is to retain
their customers by keeping them
happy. Their problems are solved
quickly and effectively (Barreto,
2015).
For example- Order taken online are
processed fast and delivered within
24 hours.
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PHYSICAL
EVEIDENCE
ALDI operates through physical
stores and outlets that are easily
visible to people.
For example -ALDI stores give an
attractive view to customers.
Its physical evidence can be stated
with their stores established in high
streets and malls. It is easily seen by
people far away.
For example- tesco stores are large
and easily visible.
The marketing mix helps in attaining goals and objectives in specified time period. It can
differ from business, but the basic concept is same. The 7 P’s describe structure of products and
how it relates identifies activities done.
LO3
P4 Produce and evaluate a basic marketing plan
A marketing plan helps in attaining goals that are developed by management. It consists
of different elements that provide a brief overview of how goals will be achieved. ALDI also
requires a plan which is as follows: -
Executive summary
The plan will describe the goals and objective that must be achieved by ALDI. It also
shows internal analysis of company. Moreover, marketing mix is described that gives overview
of 4 P’s. In addition, plan contain basic marketing tactic of STP. At last some measures are
described that shows how plan will be controlled and monitored and what is budget required for
implementation.
Company overview
Aldi is a partnership firm between two German retail chain supermarkets operating in
more than 20 countries. It was founded in 1960. It offers a large variety of products of grocery,
food, household articles, etc. the company is having almost 2500 stores in all over the world.
Aims and objectives
 To maximise sales and profits in UK by 15% in next five year.
 To develop products for each segment of people.
Mission- Best of the rest
Vision – Shopping designed to save
SWOT analysis
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Strengths –
 It has high level of customer support that makes it easy for ALDI to enjoy large market
share.
 ALDI is having a good product mix that allows customer to select from it. In addition, the
brands are available at discounted price (Chernev, 2018).
 The major strength of ALDI is pricing strategy that offers low prices to every customer.
The daily basis products as compared to other companies are having low prices.
Weakness
 Due to its low prices ALDI profit margin is very low. Thus, they are highly dependent on
sales volume for generation of revenue.
 Due to long working hours, there is poor satisfaction among employees working in
ALDI. Thus, employee retention rate is less.
 ALDI most of the products prices are low, so it has not been able attract high class level
of customers. Therefore, company still needs to make improvements in their products.
Opportunities
 ALDI can develop products for high class people. It will enable them to increase their
customer base in different segment (Nieminen, 2017)
 It can offer new and high-quality services to people. this will enable in gaining their
satisfaction and retaining them
Threats –
 There might be entrance of new companies in market. Due to this competition can rise in
retail sector.
 Frequent change in taste and preference of customers resulting in use of substitutes
Marketing mix
Product – the company is currently operating in UK. In order to expand they will provide new
products to high class people. Alongside goods, high quality and new services will be offered by
ALDI to them. It will include packaged food and drinks, etc. this will help in fulfilling their
needs and entering in new market.
Price- As Company follows competitive pricing strategy for middle class segment. Similarly,
they will do same thing in it. But here, a little margin will be left as prices set are low as
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compared to competitors. Also, after sales services will be provided free of cost so that more
people can be attracted.
Place – In order to sell goods, ALDI have their own stores. For it, company will place new
products in physical store but in separate segment (Withey and Panitz, 2015). With help of it,
customers can easily differentiate segment.
Promotion- the promotion will be done through various sources. ALDI will use digital
marketing in which social media sites; content, video marketing will be implemented. Besides
this, company will display poster in their stores as well.
STP
Segmentation – ALDI will segment market on basis of developed countries. The products
developed will be available in different countries but focuses on cities where large population
belongs to high class.
Targeting - after segmentation, target audience is selected. ALDI will target high class people
who living in those countries. They will be offered goods and services. By this, goals and
objectives of company are achieved.
Positioning – it refers to creating a positive image in mind of people. ALDI will position
products by giving demo pieces to people. They will also display benefits through which positive
image will be build in minds of people.
Control and evaluation
It is very necessary to ensure that plan is implemented in proper way. For this there are
certain control measures taken by ALDI manager (Kennedy and Parsons, 2014). The results of
plan will be evaluated with set standards. The satisfaction level of customers will be measured by
taking their feedback and reviews. Furthermore, the amount of sales figure will be measured
every month.
Therefore, by following the above control measures it will be ensured by ALDI manager
that marketing plan is executed in systematic way.
Budget –
The overall budget required for marketing plan will be $3250. The distribution is as
follows:-
Activity Budget
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Raw material purchase $250
Development of products $1000
Promotional activities $1500
Evaluation $500
The budget if for expansion of ALDI market to earn more profits. it will help in carrying
out activities that are required to implement marketing plan. In budget resources are allocated on
basis of their role in plan. High funds are required in promoting products so that more people can
be attracted. And for product development $1000 is allotted.
CONCLUSION
It is concluded that marketing function plays a vital role in attaining organisation goals
and objectives. They perform various functions like collecting data and information, developing
products and services, strategy development and implementation, etc. roles of manager in wider
context is related to generating sales, profits, etc. business uses marketing mix that contains 7 P’s
like price, product, place, etc. in order to develop strategies. The marketing plans consist of
elements through which goals are achieved.
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REFERENCES
Books and journals
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Dioko, L.D.A., 2016. Progress and trends in destination branding and marketing–a brief and
broad review. International Journal of Culture, Tourism and Hospitality Research. 10(1). pp.5-
13.
Dudu, O.F. and Agwu, M.E., 2014. A review of the effect of pricing strategies on the
purchase of consumer goods. International Journal of Research in Management, Science &
Technology. 2(2). pp.88-102.
Hossain, M.S. and Rahman, M.F., 2017. Tools of online marketing. International Journal of
Science and Business. 1(1). pp.1-7.
Kennedy, A.M. and Parsons, A., 2014. Social engineering and social marketing: why is one
“good” and the other “bad”?. Journal of Social Marketing. 4(3). pp.198-209.
Nieminen, R., 2017. Key elements of outbound and inbound marketing: Digitalization in the
world of marketing.
Perera, G.R. and Perera, I., 2018. Influence of Social Media Marketing on the Brand Image
of Organizations in the Hospitality Industry of Sri Lanka. In Media Influence: Breakthroughs in
Research and Practice (pp. 371-383). IGI Global.
Soboleva, A., Burton, S. and Khan, A., 2015. Marketing with Twitter: Challenges and
opportunities. In Maximizing commerce and marketing strategies through micro-blogging (pp. 1-
39). IGI Global.
Withey, J.J. and Panitz, E., 2015. Finding Appropriate Content for Training in Marketing
Management: Implications for Business School Curricula. Journal of the Academy of Business
Education. 16. p.192.
Online
Marketing mix of ALDI. 2018. [Online] Available at: <
https://www.marketing91.com/marketing-mix-of-aldi/> [Accessed on October 2018]
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