Detailed Analysis of Aldi Australia's Marketing Strategies

This report provides a comprehensive analysis of Aldi Australia's marketing strategies, examining its approach to consumer behavior, market positioning, and competitive advantages. The analysis begins with an executive summary and introduction, followed by a company background and an in-depth look at Aldi's marketing strategies from its inception. The report explores Aldi's low-cost pricing strategy, its impact on consumer buying decisions, and its positioning within the Australian market. It also analyzes the effectiveness of Aldi's "Super Buys" promotion. Furthermore, the report provides strategic marketing options for Aldi's future growth, including customer loyalty, product differentiation, and the use of technology. The report concludes with a summary of key findings and references. The report is based on the provided assignment brief, requiring an analysis of Aldi Australia's marketing strategies, and incorporates relevant marketing theories, frameworks, and research to evaluate their effectiveness. This report is a valuable resource for students studying marketing, providing real-world examples and practical insights into strategic marketing practices.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note

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a. Executive Summary
In the respective paper, it can be seen that the strategy of marketing plays a vital role in
refining growth-related operations of the company in a positive manner. In the case of Aldi,
the main attractive aspect was related to the low-cost pricing strategy that has helped the
company in improving their effectiveness in gaining competitiveness. Besides, there are
different strategic marketing options which can be incorporated by the company that will be
adequate for them in attracting the substantial market share. As to improve their international
presence in the market, there can be differentiation and cost leadership approaches adopted
by Aldi to enhance their growth.

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Table of Contents
a. Executive Summary...............................................................................................................1
b. Introduction............................................................................................................................3
c. Company Background............................................................................................................3
d. Analysis Related to Marketing...............................................................................................4
i. Analysis of Nature of Strategy of Marketing of Aldi From Beginning..............................4
Consumer Buying-decision Aspects..........................................................................................5
Positioning Strategy of Aldi Australia...................................................................................5
ii. Options Related to Strategic Marketing for Aldi moving forward....................................6
e. Conclusion..............................................................................................................................7
f. References...............................................................................................................................9

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b. Introduction
In the present corporate atmosphere, the marketing of the unique products as well as
services are of crucial importance in satisfying the individual needs of customers and achieve
competitive advantage as well (Varadarajan 2015). Marketing is considered to be the
essential aspect to business prospects, and it is considered to be the critical procedure in
investigating, endorsing as well as the marketing of the goods. It is useful for advertising to
support the business, brand along with offerings (Akdoğan and Altuntaş 2015). The aim is to
identify the role of supermarket Aldi in the competitive market, the nature of the selling
policies of Aldi from incorporation time suitable for generating strategic options related to
marketing.
c. Company Background
Aldi is considered to be the product of two leading superstore chains in eighteen
countries with 10000 stores as well as the revenue of the company was approximate 50
billion pounds. The company has been incorporated by German brothers named Karl and
Theo Albrecht in the year 1946. There were two splits in the supermarket chain, which
includes Aldi Nord and Aldi Sud, wherein the headquarters are at Essen and Mulheim
appropriately (Aldi.us 2019). The respective two stores operate independently in different
geographical locations that are considered to be the privately-owned organizations. There has
been an increase in profits which has been gained is $53 billion till 2018. There are different
products sold by Aldi that comprise food, drinks and household essentials for meeting the
diverse range of individuals such as housewives or the working individuals.

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d. Analysis Related to Marketing
i. Analysis of Nature of Strategy of Marketing of Aldi From Beginning
The main aim of the marketing strategy adopted by Aldi is to minimize the costs
related to the product which are sold by them. The top-level management, along with the
subordinates, decided that there should not be any inclusion of the public relations or
advertisements for the public. However, the company has been able to keep the promise to
provide the different customers with the other kind of products that are unique and meet the
demands of the customers in a positive manner (Assimakopoulos et al. 2017). The thinning of
the marketing budget by 0.3% of the entire amount of revenues of the company helped in
reducing costs. Additionally, the "Super Buys" is the option introduced by Aldi that keeps
changing every week as per the availability of the products w on Wednesdays and Saturdays,
Figure 1: Market Share of Aldi in Australia
(Source: Assimakopoulos et al. 2017)
Besides, the ethos of saving costs of Aldi Supermarket that is followed by employees.
The employees are trying to follow the same culture wherein, in many instances, they turn off
the fairy lights when there is enough light. Therefore, it is evident that Aldi reduces the

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expenditure on the promotional aspects through impressing the different cost-effective kind
of strategies on the employees and their culture, which will be useful (Kolk 2016). The
diverse selling strategies of Aldi which are being utilized by them help in achieving
competitiveness.
Cost-Leadership- Aldi is considered to be the market leader by offering different
customers with the products at the lowest possible prices, and it makes them competitive. The
company tries to satisfy the diverse needs of customers at a low price due to highly
minimized operations costs along with low costs related to transportation by making various
products available in the store (Gomes, Sousa and Vendrell-Herrero 2017).
Consumer Buying-decision Aspects Adopted by Aldi
While purchasing the different items from Aldi Australian Supermarket, it can be seen
that the prices offered by them is low that attracts the different customers suitably. The
various advertisements which are being provided by Aldi Australia regarding the super buys
attract the customers, and it helps them in receiving high-quality products at cheaper rates
(Kotler et al. 2018). Aldi is one of the leading supermarket brands in the entire country,
wherein it makes it easier for consumers to decide which product is best for them. There are
different scenarios wherein various customers in the Australian market are reluctant for
purchasing the products from Aldi as they fear that the quality may be low.
In such a scenario, Aldi Australia tries to convince the customers with promotional
events that makes the customers feel safe that the products are of the high quality in
comparison to Woolworths. Additionally, Aldi Australia provides the customers with
different brands under one roof that makes it easier for customers to make their final choice.
The final stage is the post-purchase decision which is followed by Aldi Australia, which is
related to generate feedback from customers. The policies of the company make sure that

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when the customers have problems with the products, it is ready to exchange or pay back the
money to customers and improve their experiences.
Figure 2: Consumer decision-making Process
(Source: Kotler et al. 2018)
Differentiation- The central aspect of Aldi is to satisfy the different needs of
customers through providing differentiation in the various tasks which are performed by
them. Aldi tries to target the multiple individuals from middle and lower-income groups,
wherein the quality of the products is the first and foremost criteria. It should be followed as
it can be enhancing the effectiveness of the company (Hunt 2015). Aldi has been capable of
gaining competitiveness against the other competitors like IGA and Woolworths through
offering customers with high quality products at the lower prices. The differentiation
involved the creation of proper uniqueness of the various kinds of products and created value
for customers appropriately (Kennedy, Kemper and Parsons 2018).

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Positioning Strategy of Aldi Australia
Besides, Aldi has been suitable in positioning themselves in the Low Price and High-
quality Products Segment that has been successful in managing their growth. As compared
with other competitors in Australian market such as Coles, Woolworths and IGA Grocery
Store, Aldi is the most effective supermarket which has been capable of gaining substantial
market share and achieve a high level of profitability.
Figure 3: Positioning Map of Aldi
(Source: Created by author)
ii. Options Related to Strategic Marketing for Aldi moving forward
The different strategic marketing options for Aldi in moving forward include the
following aspects that will be beneficial for them in improving their competitiveness in the
market.

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The primary strategy related to marketing of Aldi needs to mainly focus on the
upkeeping of the loyalty of the customers in the market. The company needs to sell and
provide various products to the existing customers are more comfortable, and it will be
assisting them in improving their market share. However, it is continuously needed for Aldi
to target new customers in the market which will be requiring a lot of efforts for making them
stay with the firm, and they will be considered to be loyal customers of Aldi (Lockrey 2015).
There are different kinds of marketing options available for Aldi, which is required to be
incorporated by them for improving their growth prospects which will ascertain their
effectiveness in the firm.
The most vital approach of Aldi needs to be the satisfaction of customers which will
be delivered by them is through providing excellence in products and services. Aldi needs to
ensure that the strategies that are being incorporated by them are appropriate, which will help
them in integrating the competitiveness in the tasks which are performed by them. Moreover,
there can be the inclusion of the24*7 customer help desk beneficial in solving the different
queries as it will efficiency-related enhancement and growth prospects of the business
(Parnell, Acikdilli and Doyle 2017). It can include the robotic services that can solve the
queries of the clients within the specified time limit.
On the other hand, there are various kinds of activities that will help improve the
process of production and gain more profitability in the marketplace. There are diverse
secondary activities which are needed to be incorporated by Aldi in enhancing the market
share (Pauziah and Mulyana 2018). The excellent process relationships related to
procurement can assist in achieving the different affordable resource related management for
the operations related to business through hiring the available kind of workers in various
departments.

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The proper, efficient and effective management of the knowledge regarding the
business can be done through the appropriate inclusion of the different technologies that are
suitable for achieving the strategy of marketing. The proper planning regarding the planning
and quality of the products sold by the business will be appropriate for the growth strategies
of the company (Richardson, Choongand Parker 2016). Additionally, Aldi needs to employ
the different competent staffs who will be able to understand the concerns of customers, and
it will be helpful for the company in edging out against the other competitors. It can be
inclusive of the proper adoption of the non-bureaucratic method of management; it will be
helpful for them in dealing with the customers in a suitable manner (Varadarajan2015).
e. Conclusion
Therefore, from the complete analysis, it is concluded that the strategy related to
marketing of Aldi is entirely grounded on the saving of operative costs that have been
suitable for them in gaining the substantial market share in the economy. Additionally, it was
being found that Aldi does not spend much on public relation and other advertisement
activities that have been suitable for them in achieving the competitiveness against the other
competitors. There is an introduction of the self-check-out system that will be suitable for
Aldi in managing the substantial market share in the market. The strategy related to
marketing includes the fact that the organization does not spend much on the promotional
events and provide the customers with high excellence products at a lower price than
enhances their effectiveness.
Aldi requires to observe the philosophy of shopping of the customers, and there can
be offerings of the products at the premium pricing strategy. It can be suitable for enhancing
the experience of the customers and cover the excess costs concerning the products ideal for
refining their presence in the market in comparison to other competitors. The proper

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maintenance of loyalty for different customers is the other aspect that required to be
introduced that will be sufficient for the customers in the market.
f. References
Akdoğan, M. Ş., andAltuntaş, B. 2015. Covert marketing strategy and techniques. Procedia-
Social and Behavioral Sciences, 207, 135-148.
Aldi.us 2019 ALDI Grocery Stores - Quality Food. Everyday Low Prices (online) Retrieved
from https://www.aldi.au [Accessed on 216th September 2019]
Assimakopoulos, C., Antoniadis, I., Kayas, O. G., andDvizac, D. 2017. Effective social
media marketing strategy: Facebook as an opportunity for universities. International Journal
of Retail and Distribution Management, 45(5), 532-549.
Gomes, E., Sousa, C., andVendrell-Herrero, F. 2017. International marketing
agility. International Marketing Review.
Hunt, S. D. 2015. The theoretical foundations of strategic marketing and marketing strategy:
foundational premises, RA theory, three fundamental strategies, and societal welfare. AMS
review, 5(3-4), 61-77.
Kennedy, A. M., Kemper, J. A., and Parsons, A. G. 2018. Upstream social marketing
strategy. Journal of Social Marketing, 8(3), 258-279.
Kolk, A. (2016). The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business, 51(1), 23-34.
Kotler, P., Keller, K.L., Ang, S.H., Tan, C.T. and Leong, S.M., 2018. Marketing
management: an Asian perspective. Pearson.

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Lockrey, S. 2015. A review of life cycle based ecological marketing strategy for new product
development in the organizational environment. Journal of Cleaner production, 95, 1-15.
Parnell, J. A., Acikdilli, G., and Doyle, J. D. (2017, September). Nonmarket strategy,
marketing capabilities, and marketing strategy in Turkey. In British Academy of Management
annual conference.
Pauziah, P., andMulyana, M. 2018. Formulation of The Green Marketing Development
Strategy for the Body Shop Botani Square Bogor. In the International Conference on
Accounting and Management Science (p. 171).
Richardson, P. S., Choong, P., and Parker, M. 2016. Social Media Marketing Strategy:
Theory and Research Propositions. Journal of Marketing Development and
Competitiveness, 10(2).
Varadarajan, R. 2015. Strategic marketing, marketing strategy and market strategy. AMS
review, 5(3-4), 78-90.