Southern Cross University: Aldi Australia Marketing Analysis Report

This report provides a comprehensive analysis of Aldi Australia's marketing strategies, examining their approach since entering the Australian market in 2001. It delves into Aldi's cost leadership and differentiation strategies, exploring how these tactics have contributed to its success. The report evaluates Aldi's marketing practices, analyzing consumer decision-making processes and competitive advantages. It also discusses strategic marketing options for Aldi moving forward, including recommendations for enhancing customer service, developing new products, and leveraging social media. The analysis is supported by relevant marketing theories and research, aiming to provide a thorough understanding of Aldi's market position and future growth prospects. The report concludes with a summary of key findings and recommendations for continued success in the competitive supermarket industry.

Running head: MARKETING
SOUTHERN CROSS UNIVERSITY
Marketing Management
Student Name: Muddasani Rahul
Student ID No.: 23201284
Unit Name: Marketing
Unit Code: MKT00720
Tutor’s name: Janne
Assignment No.:
Assignment Title:
Due date:
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Declaration:
I have read and understand the Rules Relating to Awards (Rule 3 Section 18 – Academic Misconduct Including
Plagiarism) as contained in the SCU Policy Library. I understand the penalties that apply for plagiarism and
agree to be bound by these rules. The work I am submitting electronically is entirely my own work.
Signed:
(Muddasani
Rahul)
Date:

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a. Executive Summary
The strategy related to marketing is considered to be the main aspect which helps in
increasing the overall sales and increase the competitive advantage in the market. In the
current business environment which is competitive, it can be seen that Aldi has been
following the cost leadership and differentiation aspects that play a vigorous role in managing
effectiveness of company appropriately. In addition, it can be seen that there are different
recommendations which have been provided such as proper customer service which helps in
managing the effectiveness and growth prospects of the company suitably.

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Table of Contents
a. Executive Summary 1
b. Introduction 2
c. Background to the Company 2
d. Marketing Analysis 3
i. The Nature of Aldi’s Marketing Strategy or Strategies since it began 3
ii. Strategic Marketing Options for Aldi moving forward 4
e. Conclusion 6
References 7

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b. Introduction
Marketing is defined as the aspect which assists in offering the right kind of product
at accurate place at correct time along with correct price. In present business environment, the
marketing strategy helps in development of the different products and services with potential
of best profit-making objective (Zhangand Wang 2019). The strategy related to marketing
assists in discovering the different areas which are affected through organizational growth
and it therefore, helps in creation of the organization plan for catering the needs of the
customers. The main purpose of the report is to understand brief history of Aldi in the United
Kingdom market, the second aspect helps in analyzing the different strategies related to
marketing adopted by Aldi from the time they have started their business and the last section
deals with the strategic marketing recommendations which will be suitable for their future
aspects in the United Kingdom market.
c. Background to the Company
Aldi is the common brand of the two German family oriented and owned discount
supermarket related chains wherein there are more than 10000 stores in more than 20
countries. The organization was originated in the year 1946 along with founders includes
Karl and Theo Albrecht and it is headquartered at Essen, Germany (Aldi.us 2019). The
different products which are sold by the company includes food, beverages as well as
household items and essentials which helps in meeting the different needs of the companies
suitably. The revenue which has been earned by the company include €53 billion till the year
2018 (Aldi.us 2019).

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d. Marketing Analysis
i. The Nature of Aldi’s Marketing Strategy or Strategies since it began
Aldi Supermarket is one such company which has been successful in using the
strategy related to marketing that solely aims in minimizing the cost of the different products
for their customers. The business does not employ amount on public relation aspects,
however they offer the selective Super Buys Offer which is available to the customers till the
stock lasts (Morgan et al. 2019). The culture related to cost savings is the main culture of
Aldi and such kind of attitude is present among the employees. The different employees
prefer to switch off the lights whenever they see the day light. From the overall analysis, it
can be seen that Aldi Supermarket does not believe in promotion of the products, on the
contrary, they prefer to adopt the strategies which are cost-effective and it will be suitable for
the growth of the company appropriately (Papadas, Avlonitis and Carrigan 2017).
Aspects of the Decision-Making of Consumers in Aldi
In comparison to the other competitors which are present in the market of Australia, it
can be seen that Aldi has been successful in providing the similar kind of products and
services suitably. However, the decision-making aspects of the customers are different as
they feel like they can receive the low quality products and it can be difficult for them in
achieving same kind of products. However, Aldi Supermarket convince the different
customers by creating survey through which the viewpoints of the customers can be known
and it can make the customers feel that they are receiving the same products at a cheaper
prices. There are different options such pay back for the customers that helps them in
returning the items which are not liked by them which can be done post purchase.

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Figure 1: Consumer Decision-Making
(Source: Kotler et al. 2015)
As to be different in the crowd of the different competitors which are present in the
market, Aldi has been able to utilize various strategies related to marketing which are suitable
for the growth prospects and achieve competitive advantage. The employment of the Aldi
Supermarket includes the following:
● Differentiation
● Cost Leadership
● Cost Focus
● Differentiation Focus

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Cost Leadership- Aldi Supermarket tries to offer the different products to the
customers at the lowest prices due to the minimal kind of costs related to operations which
has made the company suitable for meeting the different demands of the customers
appropriately (Kotler et al. 2015). The stores of Aldi are simple and the company has been
successful in introducing the self-check-out system which has been proved to be suitable for
attracting large number of customers in the market effectively.
Moreover, Aldi has been successful in positioning themselves as “Low Price and
High Quality” segment which has been effective for them in attracting large group of
customers from different income groups. There are different other competitors present in
Australian market which includes IGA grocery store and Woolworths which are performing
well, however Aldi has been able to increase their share in market due to the low cost and it is
being preferred by the middle income group individuals.
Figure 2: Positioning Map
(Source: Created by Author)

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Differentiation- It is the other aspect which is followed by Aldi through analyzing the
different requirements of the customers and offering them with the similar aspects and culture
of shopping. The differentiation aspect which is followed by Aldi is the fact that the middle-
class customers are the main wherein they try to offer them with the different products which
are of high quality along with cheap pricing strategy (Katsikeas et al. 2016). The main
competitive advantage which has been gained by the company is the fact they have been
successful in offering the similar kind of products and services to the customers at a cheap
price and meet the demands of the customers thoroughly. The product uniqueness is the main
approach which is being followed by the company and it has been able to be successful in
competitive business environment as well (Hamilton 2016).
ii. Strategic Marketing Options for Aldi moving forward
In case of Aldi Supermarket, the main aspect which needs proper focus is proper
maintenance of loyalty among the new customers in a cheaper manner which will be suitable
for the growth of the company in the competitive business environment. As Aldi offers the
same quality products like Coles or Woolworths, however at cheaper rates, the similar aspect
is required to be followed by attracting and targeting the new customers and make them loyal
towards the company as well.
Firstly, Aldi needs to improve and enhance the customer service through generating
excellence in the services which are being sold by them. As to become the competitive in
comparison to the other firms present in the market, there can be inclusion of the proper
survey forms that can be distributed to the customers through emails which will be suitable
for managing their effectiveness and it will be beneficial for them in attracting a large number
of customers which will make the companies incredible in nature (Dwivedi,Kapoorand Chen
2015). There should be proper availability of 24*7 services for the different customers as it

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will be enhancing the effectiveness of the company and there can be introduction of more
new customers for Aldi Supermarket as well.
In addition, Aldi needs to invest in the development of the new products wherein the
main reason is related to development of the more discounted products against the different
strategies which are new for Tesco and keep up their competition in the market of United
Kingdom (Felix, Rauschnabel and Hinsch 2017). There are different services such as
infrastructure of the company, technological advancements along with proper human
resource management which can be the most suitable way to achieve the competitiveness and
improve their growth-related prospects (Dangelicoand Vocalelli 2017). In order to satisfy the
different requirements of the customers in the market, Aldi needs to recruit proper and
effective staffs which will be satisfying the needs of the customers and it will be competing
fairly against the other competitors.
From the analysis of the different strategies which can be adopted by Aldi, it can be
seen that they have been successful in producing and selling the similar quality items for their
customers through application of the low-cost method and it has been beneficial in enhancing
the brand image and goodwill of the company (Cacciolatti and Lee 2016). There can be the
campaign of “Swap and Save” which can be taken be taken further through upgradation of
system of the software which can be suitable for informing the customers personally and it
can be suitable for attracting the different customers suitably. In the era of social media, it has
become easy for the companies to offer the different products to customers as per their choice
and the surveys which has been collected accordingly. In managing the aspects through social
media, there can be introduction of the different approaches which can be upgrading system
and meeting demands of customers thoroughly (Atwaland Williams 2017).

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e. Conclusion
Therefore, it can be inferred that the main marketing strategy of Aldi has been based
on the reduction of the costs of the different products which are being sold by them to their
customers. In addition, Aldi do not incur any amount on the public relation related activities
as their main focus is on satisfying the different customers and improving their experience
while shopping at Aldi. There are different Super Buys offer which are being made available
by Aldi for their customers on a weekly basis and it keeps on changing and it is applicable till
the stock lasts.
Additionally, Aldi tries to meet the different demands of the customers through
focusing mainly on the quality of the products as it is the main theme which is been managed
by the company and it is suitable for the effectiveness of the company in a suitable manner.
On the other hand. There are different recommendations which are being available to the Aldi
includes the fact the proper service provided to the customers is the most suitable approach
which needs to be followed by them and it will be enhancing their effectiveness in
comparison to the other competitors such as Tesco.
Aldi needs to know the different kinds of demands of the customers as it will be
gained through understanding the culture of shopping of customers and increase their
profitability. Aldi needs to understand the shopping culture of the different customers which
will be helpful for them in shaping the prices as per their demands and charge premium prices
that will be helpful in differentiating the products and services which are being delivered to
them. In overall aspect, it can be concluded that cost leadership and differentiation are the
two major approaches which are followed by Aldi and it has been of huge success for the
growth of the company for improving their business-related operations and achieve the
competitiveness in the market.

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References
Aldi.us 2019 ALDI Grocery Stores - Quality Food. Everyday Low Prices (online) Retrieved
from https://www.aldi.us [Accessed on 27th August 2019]
Atwal, G. and Williams, A., 2017. Luxury brand marketing–the experience is everything!.
In Advances in luxury brand management (pp. 43-57). Palgrave Macmillan, Cham.
Cacciolatti, L. and Lee, S.H., 2016. Revisiting the relationship between marketing
capabilities and firm performance: The moderating role of market orientation, marketing
strategy and organisational power. Journal of Business Research, 69(12), pp.5597-5610.
Dangelico, R.M. and Vocalelli, D., 2017. “Green Marketing”: an analysis of definitions,
strategy steps, and tools through a systematic review of the literature. Journal of Cleaner
production, 165, pp.1263-1279.
Felix, R., Rauschnabel, P.A. and Hinsch, C., 2017. Elements of strategic social media
marketing: A holistic framework. Journal of Business Research, 70, pp.118-126.
Dwivedi, Y.K., Kapoor, K.K. and Chen, H., 2015. Social media marketing and
advertising. The Marketing Review, 15(3), pp.289-309.
Hamilton, R., 2016. Consumer-based strategy: Using multiple methods to generate consumer
insights that inform strategy.
Katsikeas, C.S., Morgan, N.A., Leonidou, L.C. and Hult, G.T.M., 2016. Assessing
performance outcomes in marketing. Journal of Marketing, 80(2), pp.1-20.