Report on Aldi Australia's Marketing Strategies and Effectiveness

This report provides a comprehensive analysis of Aldi Australia's marketing strategies, focusing on its entry into the Australian market in 2001. The report examines Aldi's approach to cost leadership, differentiation, and market entry strategies, analyzing how these strategies have contributed to its competitive advantage. It delves into Aldi's marketing mix, including product, pricing, and place strategies, and discusses the importance of customer service. The report also explores Aldi's promotional strategies, including advertising and social media usage, and assesses its strategic marketing options, such as market entry, customer service improvement, and other activities. Furthermore, the report highlights the significance of cost reduction and market research in Aldi's marketing approach, and concludes by suggesting future strategies for expansion and maintaining a strong brand image. The report draws on relevant marketing theory and research to evaluate the effectiveness of Aldi's strategies.

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Marketing

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Contents
Introduction...........................................................................................................................................2
Background of the company..................................................................................................................2
Nature of Aldi marketing strategy.........................................................................................................2
Marketing strategies used by Aldi.........................................................................................................3
Strategic marketing options used by Aldi..............................................................................................4
Other activities......................................................................................................................................5
Conclusion.............................................................................................................................................5
References.............................................................................................................................................6

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Introduction
In the recent time, competitive has increased to a great extent that tends to offer the huge
number of choices to the customers. Several trends have also occurred in the business
environment due to e-commerce, diversification of workforce, as well as technological
advancement. These factors required the firms to carry the effective marketing strategy in
order to gain the better competitive advantage (Išoraitė, 2016). Due to this, several
organisation are using the customer relationship strategy in order to maintain the long-term
relationship with their customers. Aldi has worked on several marketing strategies in order to
work effectively in the market. By undertaking several marketing theory, it is proved to be
effective by working on several number of concepts (Shaw and Shaw, 2019).
In the report, discussion has been carried on the marketing analysis of the Aldi by discussing
on the strategic marketing options available for moving further. The discussion starts with
explaining the background of the company followed by its marketing strategy and further
marketing options. Different marketing options are provided to the company that will furtehr
help it in its future growth.
Background of the company
Aldi is well known German based supermarket. It is one of the best supermarket chains with
the name Aldi Nord and Aldi Sud. The small business of these two groups has been now one
of the successful companies. Aldi has over 9000 stores in 18 countries. In Australia, it has
started its chain in the year 2001 in Sydney. Aldi has come up with the discount approach in
the market so that customers get attracted toward it. Aldi has now around 100 years of great
experience in the retailing business. It has also effectively utilised the corporate social
responsibility in order to build something better for the organisation (Voigt, Buliga and
Michl, 2017).
Nature of Aldi marketing strategy
When Aldi entered into the market, it has taken into account the several marketing strategies.
In the starting, Aldi has adopted the product, pricing, and place. With the help of such
strategy, Aldi has given the concentration on investment in order to provide the customers
with huge amount of saving. At the starting, Aldi has only three to eight staff to work in its

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entire shop that has proved to be unique strategy in comparison to several other supermarkets.
Aldi marketing strategy is required to support the concept of cost minimization (Cacciolatti
and Lee, 2016). Aldi also have very low budget in its revenue of the organisation. Due to this,
Aldi do not spend too much amount on the public relation but also help the customer with
super buys so that customers also get some benefits weekly on their grocery shopping.
In addition to this, the culture of Aldi is also made in the support of cost saving. The
competent and skilled staffs of Aldi also help it in completing this aspect. Staff members are
this much helpful when lights are seen unnecessary blowing then they tend to off the lights.
The entire practices of Aldi depicts that Aldi is effective make use of the cost effective
tactics. This further helps it in reducing the expenditure. As a result, Aldi is able to gain the
higher value (Semuel, Siagian and Octavia, 2017).
Promotional strategy was also the part of Aldi marketing strategy. Several promotional
strategies are used that includes the advertising of its brand. It is done by ensuring the
comparison of its brand. This advertising concept is directly linked with the behaviour theory.
This marketing strategy is also allowing the Aldi to create several advantages for the
company. In the present, Aldi as an effective retailer tends to make use the effective social
media. Aldi has also established its two segments in its marketing strategy. This strategy
directly helps it in attracting the customers toward its brand. Positioning strategy is being
used as the long-term strategy for creating the competitive advantage for the business. In
every marketing strategy, Aldi has always followed the principle of responsibility,
consistency, and simplicity (Pisano, 2017). The use of several promotional tactics will aware
the customers regarding new products as well as changes in the services. The use of several
promotional strategy put the brand in customer’s mind for too long time.
Marketing strategies used by Aldi
Aldi use several marketing strategies in order to gain the competitive advantage over its
rivals. The strategies used by Aldi ensure that it is above the competition. Due to this, it is
also able to achieve the revenue with the higher quality perspective. Some of the marketing
strategies used by Aldi is as follows:
 Differentiation focus strategy: It is true that the proper understanding of the customer
satisfaction is linked directly with the firms’ capability to offer differentiation product at the

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premium price. Aldi tends to target the middle class people whose buying can be control by
the element of price irrespective of considering the product quality. Similarly, Aldi is also
able to gain the competitive advantage from its competitors such as Tesco. This is achieved
by making use of the higher quality products at the reasonable prices. This combination of
Aldi also helps it in gaining the superior value from the customers. Differentiation is also said
to be creating the product uniqueness for developing the value over its competitor products.
In this way, this strategy will help the organisation in creating competitive advantage as
compare to its competitors. Organisations who tend to follow this strategy is able to grow and
beat the competition in effective manner.
 Cost leadership: this marketing strategy ensures the selling of goods at the low cost.
By using this strategy, business organisations are able to gain the higher revenue and thereby
competitive advantage. The major philosophy of Aldi is to offer the products at low price.
Due to this reason only, Aldi is able to sell the product at too low price as it has minimised it
cost in the transportation and operation. Aldi related to the store design uses another cost
management strategy. In this regard, Aldi uses the simple designing of the stores. This
concept of Aldi also helps in eliminating the system of queue. This system of long time wait
is eliminated by the check-off system to build the effective working at the organisation. by
considering all these aspects, it is clear that the company is offering products at the lower
prices in order to beat competition. Cost leadership strategy proves to be quite helpful if it is
followed effectively. The application of cost leadership several benefits to the company
(Sullivan, 2018). In the recent time, customers attracted to buy the products in bulk so that
they can gain discount. Therefore, cost leadership strategy assist the company in providing
products at low cost so that they get attracted toward the product and always ensure their
purchasing from one store.
Strategic marketing options used by Aldi
 Market entry strategy: it is most significant strategy that helps in sustaining the
loyalty on the side of customers. This strategy proved to be helpful as compare to discover
some new customers. For ensuring this strategy in effective manner, it is quote significant to
regularly obtain the new customers. However, it requires the higher investment to create
loyalty on the side of customers. It can effectively enter into new market by effectively
searching the market. Aldi can do effective research and development before entering into

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any new market. This will ensure the smooth functioning in the operation of Aldi (Todorova,
2015).
Some of the areas can be include by Aldi which are as follows:
 Improved customer service: the major purpose of the Aldi is to improve the customer
service by using effective marketing strategies. several effective strategies must be required
to put in place by the Aldi in order to ensure that it provide the competitive advantage by
considering the issues also. It is also seen that Aldi is great organisation that considers the
several innovative services to the clients. Complaint box system can also be used that will
solve the major problems of the customers (Tulung, 2017). Customers have several problems
that they cannot share due to lack of management. In this way, when customers will be
provided the complaint box, it will be easy for them to share their ideas and problems with
the organisation.
Other activities
Aldi can also use several other activities in order to improve its production process.
Procurement, human resource as well as technological advancement are some activities
included in the secondary activities. These activities tend to form the marketing strategies of
Aldi. It can also ensure the proper resource management by ensuring the proper procurement
processes by strengthening the HR efforts in order to attain efficiency. Aldi can also make
effective use of the technologies in order to facilitate the information and knowledge
management. This is the most significant aspect of the marketing strategy of Aldi. In the last,
infrastructure services can also be considered that will support the processes such as quality,
planning as well as top executives.
Aldi can also ensure low cost products by ensuring the proper value of the resources. It can
also hire the efficient and skilled employees that will further help in fulfilling the customer
expectations. This is the reason every retailing industry is giving emphasis on providing
discount. It also provides the necessary information to the public by making effective use of
its ability. In the recent time, customers are demanding the fresh food due to the increasing
shift toward the healthy diet. Due to this, it is suggested to Aldi for providing the fresh food
to the people so that customers get attracted toward its stores for daily purchase. Store format
is also one such significant aspect where Aldi can ensure the improvement. An effective and
excellent strategy is required to be undertaken by Aldi for achieving the competitive
advantage over the competitors (Tidd and Bessant, 2018).

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Conclusion
From the above discussion, it can be concluded that Aldi mainly give emphasis on the cost
reduction strategy under its marketing strategy. However, it has invested too less amount in
the marketing. Due to this, it does not believe in making too much investment on maintain the
public relation. Every week, it provides the opportunity to its customers for making super
buys at its stores. Aldi does this sale for long time till its stock not finish. This is also
included in the major part of the marketing strategy of Aldi that helps it in gaining huge profit
from the regular sale of its product. aldi also do the proper market research in order to know
the changing demand or expectation of its customers. In future, it can gain the competitive
advantage by expanding its operation in several other emerging economies. Due to its strong
brand image, it will be easy for the Aldi to establish its name in the market and attract
customers.

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References
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Shaw, H.J. and Shaw, J.J., 2019. Corporate Social Responsibility, Social Justice and the
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organizational change. UK: John Wiley & Sons.

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Determinants Of Entry Mode Choice. Jurnal Aplikasi Manajemen, 15(1), pp.160-168.
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