BUS101: Aldi Australia Marketing Strategy and Plan Analysis Report

This report provides a comprehensive analysis of Aldi Australia's marketing strategies, focusing on its competitive advantages within the Australian grocery market. The report begins with an executive summary and introduction, providing background information on Aldi's origins and expansion. It then delves into a marketing analysis, exploring Aldi's corporate and business-level strategies, including its low-cost approach and effective distribution channels. The report examines market concepts, marketing planning, target audience segmentation, targeting, and positioning. A detailed discussion of Aldi's marketing mix, including product, price, place, and promotion strategies, is also included. Furthermore, the report analyzes future industry factors, such as promotional strategies and integrated marketing communications, including affiliate marketing and internet advertising. The report concludes with a summary of Aldi's market presence and strategic competitive advantage. It relates real-life experiences to core marketing theory to determine Aldi's effectiveness.

MARKETING STRATEGY & PLAN
Running Head: MARKETING PLAN & STRATEGY 0

MARKETING PLAN & STRATEGY 1
Executive summary
The primary purpose of this report is to analyse Aldi’s strategies with compare to competitors
with moving forward. This empowers Aldi to pass saving on its customers by cost-cutting
methodology. The exact leverage with the sustainable competitive advantage avoids direct
competition. Marketing analysis of Aldi consist of corporate and business strategies with the
identification of marketing activities. This report concludes strong market presences with a
strategic competitive advantage with the low cost.

MARKETING PLAN & STRATEGY 2
Table of Contents
Executive summary...............................................................................................................................1
Introduction...........................................................................................................................................3
Background of Aldi...............................................................................................................................3
Marketing analysis................................................................................................................................3
Strategy.............................................................................................................................................3
Market concepts.................................................................................................................................4
Marketing planning...........................................................................................................................4
Information on marketing..................................................................................................................4
Target audience.................................................................................................................................4
Segmenting, targeting and positioning...............................................................................................5
Segmentation.................................................................................................................................5
Targeting.......................................................................................................................................5
Positioning.....................................................................................................................................5
Marketing mix...................................................................................................................................5
Product..........................................................................................................................................6
Price...............................................................................................................................................6
Place..............................................................................................................................................6
Promotion......................................................................................................................................6
Future industry factors (Promotional strategy with integrated marketing communications)..................7
Affiliate marketing (Value networks and marketing channels with managing services of the brand)7
Advertisement on the internet (Creativity and presentation of an idea).............................................7
Conclusion.............................................................................................................................................8
References.............................................................................................................................................9

MARKETING PLAN & STRATEGY 3
Introduction
This report outlines the strategies of supermarket chain Aldi. This is divided into two sections
that are the background of organization and marketing analysis. This first section provides a
brief history of the organization. This second section analyzed the marketing strategies of
Aldi. This discussion also covers the recommendation on the marketing tactics for the future
development of the organization in the marketplace.
Background of Aldi
Aldi is the world biggest privately owned organization. This is a chain of a supermarket of
grocery with the base in Germany. Aldi is the abbreviation of Albrecht. It has started a
business in 1913 through a food outlet in the town known as an Essen in Germany (Anderson
& Broad, 2016). In the 1960 business of family expanded to 300 outlets in Germany. At that
time business of an organization is divided into two groups known as an Aldi Nord with main
office in Essen and Aldi Sud through main office in Mulheim a der Ruhr. Business of
organization separated within a deviation on to vend cigarettes in outlets or not. Both
organizations operated independently to each other. At the international level, Aldi Nord
operated in Denmark, Belgium, Portugal, France, Poland, and Spain. Aldi Sud is serviceable
in Hungary, UK, USA, and Australia with over a total of 8000 stores (Aldi, 2016).
Marketing analysis
Strategy
The strategy of an organization is important in fluctuating market (Berman, et al., 2014). This
provides a clear direction with the operations that deliver directions on operations that restrict
business level actions. This is essential to hold a corporate level strategy and reflected in
goals and objectives by developed strategies and environmental factors. The corporate level
strategy consists to deliver high-quality products within the reduced price. It is achieved by
the range of practices within lower overhead costs. The business-level strategy of an
organization is focused on business unit singular objectives within the competitive tactic they
operate under a way in which sources deployed to gain objectives. This organization
successfully competes within the Australia grocery trade simultaneously prominent low-cost
market like adopting tactics to compete for retail giants like Woolworth and Coles.
Organization capitalizes on strengths by maintaining a good place in the industry of grocery
of Australia. Large backing allows gaining effective distribution channel that cover
Australia’s extensive locations by lowering cost over economies of scale. This presents the

MARKETING PLAN & STRATEGY 4
effective resource allocation to gain the corporate strategy to keep quality at a low price by
maintaining resource and implement quality to control from suppliers by lowering cost by a
streamlined business model. The corporate level strategy of organization proactively
aggressively and aimed within the analyzer culture and allowed to benefit by core
competencies of simplicity and effectiveness. Increased private label products by established
distribution frameworks provided the ability to neglect risk, allocate resources with continued
growth in Australia. Marketing strategy is effective to reflect over business strategies and
managed to communicate by its position within the marketplace as a communication strategy
by a commitment to provide a lower cost to a broad target (Elliott & Cameron, 2014).
Market concepts
The concept of market and marketing concept is defined as an increased volume of sales that
resulted in an increasing number of fragmentation and competitors of existing marketplace
segments (Pleshko & Heiens, 2011). Grocery and supermarket industry of Australia has
experienced a growth of 4.1 percent over the last years.
Marketing planning
Marketing planning is an aggressive and proactive strategy that an organization uses to
defend a large market share (Smith, 2015). It includes expanding in many segments to seizure
a large amount of customer group and achieved by introduced new brands or product line.
Product line expansion gets by Aldi through exceptional buys program that goods extending
from electronics to garments are vended in aggregation with each day grocery items a market
prices.
Information about marketing
This marketing creates many opportunities for the organization to operate that include
increased value towards probability and market share gains to decrease price competition
(Peter, 2014). The attractiveness of the market generate risks for prevailing firms like the
probability of overcrowding, entry of superior competitors, the threat of development or
transformational product innovation.
Target audience
Target Audience of Aldi consists of both men and women with the medium and lower-
income group. The organization is famous to offer quality products at low price crowd with a
thrifty mindset that are regular customers for the brand worldwide. It has positioned itself as
an economical retail outlet that offers product thirty percent cheaper than competitors with

MARKETING PLAN & STRATEGY 5
no-frills strategy and unmatched discount by men and women in low middle-level income
group and thrifty markets globally.
Segmenting, targeting and positioning
Segmentation
Organization designs products and promoting programs to catch a range of sections within
the wider market like selling basic products at discount, mid-range of products like specialty
goods and organic produce (Thirkell & Dau, 2018). The organization can distinct segment of
the market by offerings. Organization falls around in many segments with the opportunity to
consistent within the mission statement to state that they target all people. It adopts a niched
strategy to serve a particular segment within the trade to avoid straight competition from the
main players like Coles and Woolworths. This organization did it by looking for to serve a
specific segment by offering specialized benefits.
Targeting
Targeting is the organizational ability of Aldi uses a differentiation strategy. This focuses on
product price and buyers mentality with the purchasers to distinguish its brand and product
from emerging and existing rival organization of the industry. Organizational management
targets customer that buys a daily usable household product for the parents of kids and
family. They like to purchase the product at a low price to customers to persuade them to
change to another retail brand with Aldi to fill the daily needs of customers.
Positioning
This organization is positioned about main competitors like Woolworths, Coles, and IGA on
the perpendicular axis like price, and point is importantly lower than its competitors. Many of
the researchers have identified that average a bag made up of twenty-eight products and this
organization labeled product was $ 26.56 low-priced than Coles and 31.72 fewer than private
labeled goods. This organization is on par with IGA regarding customer’s service both of
business have limited staffs with the customers' services relatively low compared to
competitors that have workers in each section of outlet to support consumers. These aspects
help to deliver a unique position in the market by effectively differentiating them from
competitors. The strategy of pricing has given twelve product of the year award in 2016.
Marketing mix
Marketing mix places at the heart of each organization (Pollack, 2013). This is often referred
towards the four Ps. This includes making a unique balance of the correct product vended at

MARKETING PLAN & STRATEGY 6
the exact price within the right place by using the most appropriate promotion methods. This
is a critical set of variables and each trade will be different. This organization focuses on to
provide high-quality goods that are a low-priced alternative to famous brands (Gibbs & Gill,
2011). Marketing mix of Aldi’s focuses on:
Product
This is a very reputable organization that focused on serving a qualitative product to
customers. This offers products with variety in house trademarks like Elevation, Little
journey, Choco rice, never any, and so on. The organization offers guarantees to refund and
replaces money if it is unsatisfactory.
Price
The market of a customer is competitive as customers have a great choice (Khan & Tanvir,
2016). The organization identifies the requirements of customers to take appropriate steps to
meets requirements and demands by suitable strategies of pricing. It has been determined that
an organization offer goods of regular use at a low price without comprising quality and
maintains the loyalty of customers. It holds a competitive pricing strategy to sell goods at
lower amounts than competitors.
Place
Chain of the supermarket of Aldi is spread by many parts of the globe. It has more than
10366 stores in 20 nations like UK, US, Poland, Italy, Australia, and so on. It defined as no-
frills stores that present products at a discounted rate. The organization focuses on visibility
by a minimum count of thirty thousand people with accessibility as a significant fact to reach
the store easily and comfortable by public transports. It also adequate to parking spaces for
the customers that are not harassed.
Promotion
This is a global brand and to sustain impact globally uses many methods to communicate
with customers (Paknsave, 2018). This belief in generating and initiating interest by lead the
consumers to its outlets. It has adopted below the line and above the line, tactics to lure in
consumers by a focus on operations like save & interchange and like brands. It targeted mass
audiences to build an emotional connection with audiences. Leaflets with print circulated in
outlets within stores. Advertisements Posted in billboards, magazines, newspapers. Offers
with season discount are an important part of promotional actions by maintaining customer
loyalty.

MARKETING PLAN & STRATEGY 7
Future industry factors (Promotional strategy with integrated marketing communications)
As per the Aristotle persuasive methods of promoting, there are three prototypes of
advertising like ethos, pathos, and logo (Voelker, et al., 2017). In these scenarios, the logo
exemplary will be more appropriate for Aldi authority. Logo exemplary is more than style of
the advertisement, the advertisement content put an important impact on the purchasing
behavior of customers. Advertisement can be emotional, funny, and serious as the subject and
content of the advertisement affect purchaser and shape behavior significantly. This area is
considered by the structural authority of Aldi by designing the advertisement tactics of Aldi.
It has embraced all possible marketing strategies for brand marketing. There are following
market tactics that can be embraced by managerial authority to stimulate organizational
growth. These tactics will be helpful to beat the rival organizations and maintain
organizational competitive advantages.
Affiliate marketing (Value networks and marketing channels with managing services of the
brand)
This can be embraced by authority of Aldi. This strategy of business is useful for the vendors
to get vast disclosure in front of a larger audience base. This is recognized that internet is
cast-off by a large number of persons around the world to build a career. It also relies on
webmasters to promote the product to the targeted viewers (Gielens & Grant, 2019). This will
be accountable to encourage the name of the brand and products in front of its audience by
channel. A large number of individuals will become alert of the purpose and deal of Aldi that
may lay a positive effect on organization sales margin. One of the famous virtual shopping
stage Amazon uses technology to promote the brand at a large scale. A large number of
webmasters and vloggers discuss product and amount of Amazon on its channels that provide
high exposure to the organization.
Advertisement on the internet (Creativity and presentation of the idea)
This can be evident that pop up of advertisements while surfing the internet (Ododo, et al.,
2014). This is an effective promotional tactic that can be useful for the authority of Aldi to
meet the desired target. This has been witnessed advertisement on the internet has put an
important impact on the edge of profit of organizations. Authority of Aldi can ask towards
technical section to design that advertisements to strain the attention of customer’s at large
number. Many platforms will allow the authority of Aldi to give an advertisement. For
example, this is often marked that famous dominos fast-food chain practices internet strategy
to indorse new offers by targeted customers. Dominos technical team pays devotion to the

MARKETING PLAN & STRATEGY 8
actions of its targeted spectators on social media and customs the information to present an
internet-based advertisement to them.
Conclusion
The organization has a position in the grocery outlet industry by proposing a distinctive
market offering that is dedicated on high-quality product at low prices. It has strategies to
regularly expand its market share by a broad market tactic. The usefulness of marketing tactic
is evident that organization communications have been constructing positively to increase the
overall image of the brand by continue growth of market share. Aldi as market leader
positioned itself as a low-cost grocery industry can defend its position by a competitive
advantage by its distribution network to achieve economies of scale. Continuous along by its
marketing strategies with corporate tactic deliver high quality at low-slung price within
penetration in the market by capitalizing on the greater value.

MARKETING PLAN & STRATEGY 9
References
Aldi, 2016. ALDI History - ALDI Australia. [Online]
Available at: https://corporate.aldi.com.au/en/about-aldi/aldi-history
[Accessed 06 09 2019].
Anderson, J. & Broad, S., 2016. Australian Competition and Consumer Commission.
[Online]
Available at: https://www.accc.gov.au/business/industry-codes/food-and-grocery-code-of-
conduct/supplying-to-retailers-or-wholesalers
[Accessed 15 09 2019].
Berman, B., Ergen, A. & Bozkurt, F., 2014. The implication of Marketing Strategies.
International Journal of Research in Business and Social Science, 03(03), pp. 37-47.
Elliott, G. R. & Cameron, R. C., 2014. Marketing Analysis With Strategies. Journal of
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Gibbs, H. & Gill, A., 2011. Factors influence Market. Journal of Business Management,
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Gielens, K. & Grant, R. M., 2019. The Effects of Strategies. Journal of Marketing and
Business, 09(01), pp. 47-98.
Khan, R. & Tanvir, S., 2016. Products of an Organization. Journal of Strategic Management,
19(05), pp. 27-85.
Oddo, C., Mulholland, G. & Turner, J., 2014. Supermarket Shelves. Journal of Business
Ethics, 38(07), pp. 129-962.
Paknsave, C., 2018. Marketing Mix Analysis. Journal of Business Management, 08(02), pp.
102-108.
Peter, M., 2014. KPMG. [Online]
Available at:
http://www.kpmg.com/uk/en/issuesandinsights/articlespublications/newsreleases/pages/the-
future-of-the-grocery-sector-in-the-uk.aspx
[Accessed 15 09 2019].

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Pleshko, L. P. & Heiens, R. A., 2011. Approach Towards Market Orientation and Related
Marketing Strategy Concepts. Academy of Banking Studies Journal, 10(01), pp. 119-133.
Pollack, S., 2013. Marketing Mix. Journal of Business Ethics, 26(05), pp. 89-94.
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Thirkell, P. C. & Dau, R., 2018. Performance And Success. European Journal of Marketing,
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