MKT00720 Marketing Report: Analyzing Aldi Australia's Strategies

This report provides an in-depth analysis of Aldi Australia's marketing strategies, examining their approach since their launch in Australia. It explores their target market, competitive pricing, promotional strategies, and unique selling propositions. The report delves into Aldi's positioning as a discount supermarket, focusing on their private-label brands, limited product selection, and cost-saving measures. It also discusses their current strategies, including the "Good Different" strategy, and analyzes their effectiveness in the competitive retail market. Furthermore, the report assesses Aldi's use of the BCG Matrix and distribution channels. The report offers recommendations for future success, emphasizing the importance of adapting to changing consumer preferences and maintaining a strong competitive edge. The provided analysis is based on the student's work and is available on Desklib, a platform offering AI-based study tools for students.

Running head: MARKETING
MARKETING
Name of the Student
Name of the University
Student Name

1MARKETING
Introduction
The main aim of this paper will be to discuss about the marketing strategies that are
used by the organization of ALDI Supermarket since its inception in the region of Australia.
Along with it, the marketing options which can be recommended to the organization to
remain successful in the next decade or so. It has been found in the researches that a unique
marketing strategy is very much important in this global competitive market in order to gain
the competitive advantage of the rival organizations along with maintaining the revenue
generation of the organization from the areas where they are operating in the region of
Australia.
Overview of the Organization
The organization of Aldi is a normal brand formed by two discount supermarket
chains which are owned by two German families, which operates in more than 20 countries
and possess more than 11,000 stores. It belongs from the retail industry and the products
which are sold from the different outlets of Aldi in the places where it operates are food,
beverages and essentials from household items. The organization was established in the year
of 1946 (ABC News 2019).
Current Strategies
According to the study on the current strategies followed by the organization, it has
been found that they have made the middle-income group as their major targeted group, and
positioned themselves according to the needs and demands of the people who belong from
that group or segment. They has successfully positioned themselves as the most economical
store specialized in retail segment, from where people used to get the products at a rate of

2MARKETING
30% lower prices from that of the normal market places. It is not even been matched by the
globally known organizations of Walmart (Pechey and Monsivais 2015). Aldi has targeted
both women and men in order to sell their products from the retail stores. From the mission
and vision statements of the business entity of Aldi, it is clear that the management of the
organization is clearly focused at delivering the top quality products to the end customers at
the lowest rate possible, which is guaranteed by the management of the organization. They
possess a clear and simple business philosophy along with some guiding principles, through
which it can be said that they are fully focused on selling of the products from their retail
outlets at a very low rate, which helps to enjoy a competitive edge over its rival retail chain
outlets. The higher authority of the organization follows and maintains some ideologies,
which are excellent quality of products, terrific special buys, huge savings for the customers,
purchasing of products with full confidence and getting outstanding value from the purchased
products along with good customer service from the employees of the organization of Aldi
(Ausfoodnews.com.au 2019).
Apart from all these, the organization is globally well known for maintaining the low
prices while selling their products along with the policy of bring-your-own-bag, availability
of shopping carts with a rate of 25% deposit which is returnable and aiming on the private
labels. The follow a strategy of maintaining the low price throughout the whole world , and
that is, limiting the most of their products to private-label brands, along with keeping a
limited selection of products in their retail outlets that are present not only in Australia, but
also on the other parts of the world as well (Wu et al 2015). Aldi is also famous for opening
of their retail outlets for a specific period of time only, apart from maintaining a small outlet
comprising of limited number of products and cheaper prices rates are helping them to enjoy
he competitive advantage over its rival companies and forcing them to reply back to the
strategies followed by them. The competitive organizations like Walmart, Penny-Market,

3MARKETING
Lidl, Netto, Save-A-Lot and others are facing tough competition by the kind of strategies that
are followed by Aldi (Schmid et al 2018).
According to the strategies followed by the organization of Aldi, it can be said that the
Australian market of the brand has started to shift in the star category of the BCG Matrix,
which helps to assess the strategic position of the brand portfolio of a particular business
along with its ability or potentiality (Mortimer 2016). This segment is given to those brands
which possess the best market share in the areas where they are running their businesses and
generating the most possible revenue from that place. Sustainability in this category will
allow the organization to move into the cash cow category, mainly till that time when the
growth of the market starts to decline, and this is the scenario which is faced by the
organization of Aldi in the region of Germany. By following the BCG Matrix, Aldi is
successful in following the potential strategies of build, hold, harvest and divest. By
following all these strategies, the organization has successfully achieved a healthy amount of
market share in the region of Australia, and is able to hold or sustain their places in the highly
competitive retail market place. Another important strategy which needs to be followed by
the retail organizations are distribution channel. Aldi successfully followed the selective
distribution channel after their launch in Australia, as personal assistance is required for some
customers who are willing to purchase the products from the retail outlets of Aldi. Push
marketing techniques are also followed by the management of the organization, where they
are directly offering the end products to the end customers at a very cheaper price (Bhasin
2019).
Competitive pricing is another major procedure which is followed by the organization
(Mortimer and Grimmer 2018). The organization, as discussed earlier possesses the power to
sell high quality products at a much lower rate. This is possible as the organization purchases
in bulk but only a selective number of brands, which allows the management to sell the

4MARKETING
products in such lower prices. Coming to the promotional strategies, they follow both above-
the-line and below-the-line strategies, as they are the brand which are globally known.
Different methods of promotional strategies are followed by the organization in order to
attract the global customer base along with retaining the old customer base of the business
house. Due to the advancement of technology in the global market place, social media
promotional strategies is widely recognized by Aldi, along with carrying on different kinds of
humorous advertisements both on radio and television platforms. Part from all these,
discounts has been another successful promotional strategy that is followed by the
organization of Aldi in order to attract new people to their retail outlets as well as retaining
the old customers who frequently visit their places to purchase from the limited number of
brands that are available the outlets at a cheaper price (Bhasin 2019).
New Strategies
It is widely accepted that the ever-changing tastes and preferences are forcing the
organizations from different sectors to adopt new strategies to adopt with the innovative ways
to sustain in this highly competitive market place. Aldi is no exception to that and due to
these changes in the market place, the management of the organization has announced a
completely fresh business strategy, and labeled them as “Good Different” (strategy 2019).
Through the implementation of this strategy, the organization will be able to maintain the
pressure on the competitors and this should followed by them as a promise, along with
aiming on the differences maintained by them, which helped then to differentiate from the
traditional supermarkets. The new strategy will involve all aspects of running a retail outlet,
and they are sourcing of the products, maintaining a healthy relationship with its suppliers
and providing good customer experiences, all of which will help Aldi to maintain the leading
position in the market places in Australia. They are also spending a hefty amount on changing

5MARKETING
the formats of their outlets throughout the region of Australia, and are also expanding their
reach in the regions of Western and South Australia, for the very first time (Pulker et al
2018).
The management has decided to perform something different after spending 16 long
years in the region of Australia, which will differentiate them from the normal traditional
supermarkets. The decision will allow Aldi Australia to perform in a unique way, and will
provide vale to the customers who will visit their retail outlets and maintaining a cordial
relation with them, along with the suppliers and employees of the stores in regular basis
(Price 2016). All these will help Aldi Australia to maintain its unique and leading position in
the competitive retail market place of Australia. Their unique selling proposition of selling
then items at cheaper price will be followed by the management, which will be maintained on
permanent basis and will allow the customers to save both their money and time. This will
help the organization to maintain its unique characteristics in the market place and serve their
customers in a different but positive way. The new strategy will involve all aspects of running
a retail outlet, and expansion in the regions of South and Western Australia has already
helped the business entity to enjoy the competitive advantage and provided the strengthen to
go with the newly implemented strategy with more power and advantage (Tan et al 2018).

6MARKETING
References
ABC News. (2019). The secret to Aldi's success is choosing what not to do. [online]
Available at: https://www.abc.net.au/news/2018-08-02/aldi-supermarket-coles-woolworths/
10065018 [Accessed 23 Sep. 2019].
Ausfoodnews.com.au. (2019). Aldi announces new business strategy | Australian Food News.
[online] Available at: https://www.ausfoodnews.com.au/2017/05/15/aldi-announces-new-
business-strategy.html [Accessed 23 Sep. 2019].
Bhasin, H. (2019). Marketing strategy of Aldi - Aldi Marketing strategy of. [online]
Marketing91. Available at: https://www.marketing91.com/marketing-strategy-of-aldi/
[Accessed 23 Sep. 2019].
Mortimer, G. and Grimmer, L., 2018. Love them or loathe them, private label products are
taking over supermarket shelves. The Conversation, (19).
Mortimer, G., 2016. ALDI gives suppliers, as well as shoppers, greater choice: Retail
expert. Journal of the Home Economics Institute of Australia, 23(2), p.39.
Pechey, R. and Monsivais, P., 2015. Supermarket choice, shopping behavior, socioeconomic
status, and food purchases. American journal of preventive medicine, 49(6), pp.868-877.
Price, R., 2016. Controlling routine front line service workers: An Australian retail
supermarket case. Work, employment and society, 30(6), pp.915-931.
Pulker, C., Trapp, G., Scott, J. and Pollard, C., 2018. Alignment of supermarket own brand
foods’ front-of-pack nutrition labelling with measures of nutritional quality: An Australian
perspective. Nutrients, 10(10), p.1465.

7MARKETING
Schmid, S., Dauth, T., Kotulla, T. and Orban, F., 2018. Aldi and Lidl: from Germany to the
rest of the world. In Internationalization of Business (pp. 81-98). Springer, Cham.
strategy, A. (2019). ALDI reveals new business strategy - Retail World Magazine. [online]
Retail World Magazine. Available at: https://retailworldmagazine.com.au/aldi-reveals-new-
business-strategy/ [Accessed 23 Sep. 2019].
Tan, P.J., Corsi, A., Cohen, J., Sharp, A., Lockshin, L., Caruso, W. and Bogomolova, S.,
2018. Assessing the sales effectiveness of differently located endcaps in a
supermarket. Journal of Retailing and Consumer Services, 43, pp.200-208.
Wu, J.H., Neal, B., Trevena, H., Crino, M., Stuart-Smith, W., Faulkner-Hogg, K., Louie,
J.C.Y. and Dunford, E., 2015. Are gluten-free foods healthier than non-gluten-free foods? An
evaluation of supermarket products in Australia. British Journal of Nutrition, 114(3), pp.448-
454.