Aldi Australia's Marketing Strategy Analysis and Future Options

This report provides a comprehensive marketing analysis of Aldi Australia, examining the company's strategies since its launch in Australia in 2001. It delves into Aldi's cost leadership approach, market segmentation, and competitive positioning, including a SWOT analysis. The report also explores marketing options for Aldi, such as digital marketing strategies, customer service improvements, and fortress defense strategies to maintain its market share against competitors like Coles and Woolworths. The analysis highlights the importance of adapting to the dynamic market environment and leveraging various distribution channels. The conclusion emphasizes the significance of marketing analysis in formulating effective strategies to achieve business goals and maintain a strong brand image, especially in the supermarket industry. The report also provides a detailed overview of the company's vision, mission, and market segment.

MARKETING
ANALYSIS

EXECUTIVE SUMMARY
The purpose of the preparation of Aldi market analysis is to analyse the marketing
strategy that was adopted by company since its launched its store in Australia. It demonstrate the
effectiveness of company that how effectively it leverage its various distribution channel and
gain the monopoly by reducing the competition rate. Along with this the objective of report is to
determine the best possible strategy that can be adopted by company and can use to future in
order to cope up with dynamic environment or the external factor that can affect the functioning
of business.

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Background of the Company......................................................................................................4
Market Analysis..........................................................................................................................4
CONCLUSION................................................................................................................................8
REFRENCES...................................................................................................................................9

INTRODUCTION
Marketing analysis refer to the business plan which is prepared to present the information
of dynamic market in order to maintain the attractiveness within the specific industry. It is done
with the purpose to formulate best possible strategy and run the business by considering the
internal and external factors of business (Malhotra, 2012). It basically help out different types of
businesses whether it is start up or looking to expand the existing market. For the better
understanding of report Aldi company has been selected which consist of supermarket chains
that is expanded in various countries. This report cover topics like marketing strategy adopted by
Aldi company since it was launched along with the appropriate theoretical approach. Further,
define the marketing options for the success of the organisation are covered in this report.
MAIN BODY
Background of the Company
The company chosen for the completion of this assignment is ALDI which was founded
in the year 1946 by two brothers named Theo Albert and Karl. It was world's first discount store
whose headquarter is in Essen, Germany. The company provides their customers with different
types of products and services such as food and beverages, household essentials and many more
in order to satisfy the needs and wants of their customers. The company expanded their business
to Australia in the year 2001 and had build its presence in over 500 stores in Australia. The
company is also counted in top 10 retailers operating in Australia. Within a short period of time,
this company is able to influence not only the perception but also the quality of private label
goods with the quality of products and services provided by ALDI. Therefore, it has achieved
enormous growth and expanded the business rapidly in global market which even pressurize
other competitors to bring significant changes to improve the quality of product and lower down
the price significantly.
Market Analysis
1. Marketing strategy adopted by Aldi Australia since beginning
Aldi covered the Australian market in 2001 and experienced the enormous growth by
becoming the market leader due to their low cost strategy that helped company to gain
dominance. Thus, with the presence of company in Australia give tough competition to the major
competitors named Coles as well as Woolworth who were forced to lower gown their price. The

company basically follows growth marketing strategy since the beginning where it sell huge
volume of product which lead to fragmentation of company within existing market. The
supermarket stores of the Australia has gained the huge market share by widening the customer
base successfully. This lead to the increase in market opportunity by enhancing the market
attractiveness and conducted price war (Simkin and Dibb, 2013).
Market strategy of Aldi Australia
Vision: The vision of company is to reach out every corner of the world in order to
supply day to day grocery items of highest quality but at cheapest rates.
Mission: The mission of company is to maintain the image of company by providing
different variant to the customer at impossibly reasonable rates.
Market Segment: Aldi Australia in order to compete with other highly recognised
competitors like Coles launched its business with the strategy to cover broad market due to
which it took the advantage of its economies of scale. This helped the company to cover huge
amount of local residence by making significant marketing programme and offer customer
discounted product as well as mid range of organic items.
Positioning: Aldi Australia has set low price in relation with their competitor which has
helped them to positioned as low cost market player selling high quality product. This has help
the company to differentiate them amongst the competitor which has finally gained huge
recognition and build brand positioning worldwide (ALDI contributes to the Australian economy.
2019).
SWOT Analysis
Strength
The company has successfully created
economies of scale in order to expand business
and carry out cost leadership in order to
facilitate the whole market successfully
(SWOT analysis of Aldi. 2018).
Opportunity
Capture the market via digital media and
enhance their product line by addressing the
need of all people like ageing population in
order to continuously expand the market share
of company.
Weakness
Limited sales of home brands as most of the
customer explore the store to carry out their
grocery shopping.
Threat
As other competitor also follows the same
strategy which can be a threat to company.
Apart from this changing preferences of

customer like unpackaged product can be
difficult for the company to fulfil.
Porter's Generic strategy: It include different marketing strategy that is adopted by
company in order to gain profitability and achieve competitive advantage within long run (Pérez
Mesa and Galdeano-Gómez, 2015). These strategies are defined below:
Cost leadership: Here firm set low prices for their offering in order to cover the broad
market which increases the sales of company and enhances their profitability ratio. Further, the
company can only adopt this strategy if they have efficient logistics and capital so that they can
invest in technology that will finally bring down the cost of company.
Differentiation: As per differentiation the marketer adopts unique strategy or add
different attribute in the product that act as a Unique Selling proposition of company. This
strategy assist the company to gain the attention of customer for which they can even charge
premium price (Rambocas and Gama, 2013).
Focused strategy: The main difference between other two strategies and this is that it
cover niche market. It understand the market dynamics and generate brand loyalty either by
targetting the geographical market with adequate specified product or low cost to cover the
market effectively.
Therefore, Aldi Australia primary started their business only with grocery products
focuses to expand their resources and offer supreme quality product in order to achieve the long
term sustainable development for which it focused on expansion by adopting cost leadership
strategy.
2. Marketing options for Aldi
Aldi Australia is considered as a market challenger where initially the company has small
market share that is around 11.1 % in comparison to their competitors like Coles and Woolworth
who were the market leader and hold share of 37.3% and 31.6% respectively. Thus, in order to
beat the competition company had the objective to attract the existing as well as potential
customer in order to capture the repeat purchases. Thus, the company enhanced its position by
adopting low price or cost leadership strategy in order to cover whole market (Dietrich, Rundle-
Thiele and Kubacki, 2017). Along with that it focuses to offer high quality product as customer
can comprise in price but not in quality, so by keeping this in mind company offer the place to

customer where they avail the utility item at a very reasonable price (Armstrong and et. al.,
2014). Additionally, with the help of digital media and traditional media the company promoted
its brand and reach out to the potential customer. Hence, this is the existing strategy of company
that result into 50% saving in the leading brands as well as approximately 22% on the private
labels. Therefore, based on the existing strategy the company has various options which are
defined below that can assist the firm to plan for the future:
Digital marketing strategy: This is one of the widely used strategies which need to be
constantly used by Aldi company in order to enhance the online consumerism. As most of the
people beat men and women work outside so they have become more prone to technology. Thus,
by using this platform the company can offer value to customer and enhance its presence by
reaching out to each and every people successfully (Wilson and Gilligan, 2012). It can benefit
the company in several ways like they can get the result at real time, compare their performance
with the competitors and prepare customised advertisement to encourage the customer to take
action. Therefore, the company can use various sources like email marketing, affiliated market,
search engine optimisation as well as website to drive the traffic of customer and increase the
sales effectively. Like, it has been analysed that recently around 91.23% of their click is
generated through search engine which is unpaid as customer itself searches for the company.
Hence, there are various other driving factor that need to be paid attention by company to
enhance its growth successfully.
Customer service support: It is vital for the Aldi company to work on the customer
service support as most of their competitor are better in this segment. So in order to cater the
forecasted demand of customer it is vital for the company to address the remedies of their
customer and mitigate the chances of dissonance in order to bind long term relation with
customer (Ahmed and Rafiq, 2013). For this Aldi Australia can provide training and
development session to their customer on regular basis which will help them to groom their
knowledge and enhance their capabilities. Along with that this method will help the employee to
develop certain traits like persuasion skill or listening skill which is used to carry out their
functioning effectively.
Fortress Defence Strategy: In order to cope up with threat of existing as well as new
entrant who adopt the similar type of strategy and come with grocery market of low budget Aldi
company can implement Fortress Defence Strategy. This strategy is basically adopted by the

market leader in order to maintain their dominant position and strengthen the market share
successfully. Under this technique Aldi Australia need to strengthening their distribution channel
and encourage the repeat purchases by either enhancing the quality of product or by lower down
the price (Simkin and Dibb, 2013). Further, the company has always concentrated to reduce its
price then the competitor and diversify its brand constantly like within Australia there are over
three hundred fifty stores of company that cover the local resident effectively.
Therefore, these are some of the marketing strategy that need be maintained by Aldi
Australia even in future to cope up with the competition and retain its leading position. Although
the company has always taken preventive measure due to which it has expanded its brand to
various countries and gain long term sustainable development.
CONCLUSION
From the above report it has been concluded that Marketing analysis help the company to
determine several factor on the basis of which company can implement most suitable strategy.
This is used by most of the organisation to reach out potential buyers and converting them into
the real customers. To fulfil the vision and mission of company Aldi Australia can effectively
implement the most suited strategy that can help the company increase its market share and
maintain the brand image. As by being the market leader in supermarket store the company can
leverage their profitability and gain competitive advantage.

REFRENCES
Books and Journal
Ahmed, P. K. and Rafiq, M., 2013. Internal marketing. Routledge.
Armstrong, G. and et. al., 2014. Principles of marketing. Pearson Australia.
Dietrich, T., Rundle-Thiele, S. and Kubacki, K., 2017. Segmentation in social marketing.
Springer Singapore:.
Malhotra, N. K., 2012. Basic marketing research: Integration of social media. Boston: Pearson.
Pérez Mesa, J.C. and Galdeano-Gómez, E., 2015. Collaborative firms managing perishable
products in a complex supply network: an empirical analysis of performance. Supply
Chain Management: An International Journal. 20(2). pp.128-138.
Rambocas, M. and Gama, J., 2013. Marketing research: The role of sentiment analysis (No.
489). Universidade do Porto, Faculdade de Economia do Porto.
Simkin, L. and Dibb, S., 2013. Marketing essentials. Cengage Learning EMEA.
Simkin, L. and Dibb, S., 2013. Marketing essentials. Cengage Learning EMEA.
Wilson, R. M. and Gilligan, C., 2012. Strategic marketing management. Routledge.
Online
ALDI contributes to the Australian economy. 2019. [Online] Available
through:<https://www.aldiunpacked.com.au/Article/May-2019/Making-a-Good-
Difference-how-ALDI-contributes-to-t>
SWOT analysis of Aldi. 2018. [Online] Available through:<https://www.marketing91.com/swot-
analysis-of-aldi/>