MKT00720 Assignment: Evaluating Aldi Australia's Marketing Approach

This report offers an analysis of Aldi Australia's marketing strategies, examining their effectiveness since the company's launch in the Australian market. The study delves into Aldi's adoption of marketing strategies, focusing on its initial approach and recent adaptations. The report highlights the significance of Aldi's low pricing strategy and limited product range in capturing a substantial market share in Australia. It explores the marketing mix, promotional activities, and the implementation of the AIDA model. The analysis also considers strategic marketing options for Aldi moving forward, such as home delivery services and online shopping experiences, to maintain its competitive edge in the Australian market. The report references various sources to support its findings and provide a comprehensive overview of Aldi's marketing practices.

Report on Aldi Australia
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Executive summary
This study aims to analyse the marketing strategies used by Aldi. The study firstly considered
the adoption of the marketing strategy by Aldi after its inception in the Australian market
then the study considered the marketing strategy that are recently adopted by Aldi. Study
found that low pricing strategy and the fewer product storage are the strategies that has aided
Aldi to capture strong hold in the Australian market.
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Table of Contents
Introduction................................................................................................................................4
Background of the company......................................................................................................4
Marketing Analysis....................................................................................................................5
The Nature of Aldi’s Marketing Strategy or Strategies after its inception............................5
Strategic Marketing Options for Aldi moving forward..........................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9
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Introduction
After the inception of a company, marketing tools are adopted because it is believed that
these tools help the company to sustain in the market and capture a considerable amount of
the market share. Marketing strategy thus regarded as the game plan for a business that aids
the business organization to reach its consumers and transforms these consumers into
potential customers of the organization. According to the study of Kotler et al., (2015), it can
be observed that marketing strategy are the ones which reflects the value of the company and
hence this marketing strategies can be considered as the backbone of the company. However,
it is also to be noted that with time the marketing strategies of the companies changes and are
devised according to the forces of the market (Armstrong et al., 2018). This particular
assignment on marketing will show how marketing strategies are utilized by a company. The
company that is selected to be analysed is Aldi and the market upon which Aldi serves is
Australia. This report thus will show marketing strategies that are utilized by Aldi in the
international market of Australia.
Background of the company
Aldi is a retail supermarket that is operating around 20 countries across the globe. The
organization is a German based organization and the head quarter is located in the Germany.
The min products with which the company deals with are identified as the household
essentials, food and beverages thus it can be said that company deals with only the consumer
products. Back in 1946 company came into business and the founders were Karl and Theo
Albrecht. However, in 1960 company divided into two parts one is Aldi Nord and the other is
Aldi Sud. Company till date is operating in 11,234 locations with 10,000 stores into
operation. The revenue till 2010 shows that company has generated a revenue of 53 billion
(Aldi.com.au., 2019).
In Australia, Aldi Sud is responsible for its operations. In 2001, Aldi opened its first store in
Australia and the store was opened in the popular city of Australia Sydney (Cameron et al.,
2015). After its opening in the Australian market the company grew much rapidly and
extended its operations in the other major cities of Australia. In Australian market, 536 stores
of the company are serving the Australian population and as per the reports of retail industry
of Australia, Aldi occupies a considerable place in the retail industry.
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The vision statement of Aldi Australia shows that the company wants to enable the Australian
to lead a richer life and for this company believes that a buying opportunity should be
provided to all and highest quality of products should be available at the most reasonable
prices.
Marketing Analysis
Marketing is basically a planning that enables an organization to sustain in the market in the
long run (Biswas and Rana, 2018). For an organization it is very essential that feasible
marketing strategies are designed because this marketing strategy will decide the future of the
organization (Souza-Monteiro and Hooker,2017). The significance of attaining feasible
marketing strategy is very high because this marketing strategy helps the organization from
several aspects (Sever, 2015), if some of the aspects are to be discussed it can be said that
marketing strategy aids the organization to gain competitive advantage. Proper brand
recognition along with attraction of new consumers is also part of the marketing strategy.
Now considering the marketing strategy of Aldi which is a German based organization it can
be observed that the organization after its inception in the Australian market managed to gain
success and all this success achieved by the company is due to proper devise of the marketing
strategy. Australian market is an international market for Aldi but with proper marketing
strategies the company rooted its base in Australia strongly.
The Nature of Aldi’s Marketing Strategy or Strategies after its inception
In spite of being an international company Aldi developed a strong brand image in the
Australian market and all this happened due to unique marketing strategy devised by the
company. Aldi is a company that always look for opportunities in the international market
and in Australian the company after its inception have managed to occupy a large market
share. Aldi believes that for creating a long-term relationship with the Australian shoppers a
availability of high quality product and services is the key.
Marketing mix adopted by Aldi
Aldi after operating in several nations has gained rich experience about the requirements of
the market. After entering the Australian market Aldi adopted a marketing mix which is
developed by the company by considering feasible combination of product, price, place and
promotion. Company adopted the reasonable process strategy at the Australian market and
for this company provide high quality products a lowest price and this strategy made Aldi to
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stand alone as compared to its competitors in the Australian market. Thus, it can be said that
by adopting reasonable price strategy Aldi already managed to gain competitive advantage
over its competitors. Now considering other strategy by Aldi it can be observed that
appropriate promotional activities also aided the company to gain attention among the
shoppers of Australia. Like Brands is pone such promotional activity by Aldi which was
specially designed to attract customers. Finally, it can be observed that Aldi mainly
concentrated upon the core activities of the business and kept aside the diversified portfolio
form of the business.
Balancing mix by Aldi
Aldi which is foreign based company suitably utilized the balanced mix for meeting the
requirements of the Australian customers. Company after its inception in the Australian
market selected the suppliers with utter significance and this strategic move e by the company
was initiated because by adopting this move company managed to provide products to the
consumers at the reasonable process. Company after the adoption of this strategic move
attained economies of scale and this was possible because large base of customers was
captured by the company (Merrett, 2019). Aldi after its inception thus have given much
importance to its suppliers because company believed that suppliers are the main backbone of
the company and because of the right selection of suppliers Aldi gained a heavy place in the
market of Australia.
Implementation of AIDA model
Aldi implemented the AIDA model of marketing for promotion purposes and this model
adopted by the company because company was planning to create an awareness among the
customers and attract them towards the company so that they desire to purchase products pf
the company.
Value proposition by Aldi
Aldi while selecting its stores for the operations of the company considered the factors which
are:
 Location of the store which is accessible by the consumers
 Demography of the area and the information about the people’s shopping behaviour
 Parking space availability
 Well connectivity between the store and the transport
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Aldi while designing its product bundle have selected the most popular products among the
Australian and this kind of strategy was implemented by Aldi because company wanted to
reduce the inventory costs. Thus, in order to attain operational efficiency company targeted to
store fewer products and these products were selected depending upon the size, tastes and the
variations.
If the promotional activities of Aldi considered during its initial years in Australia it can be
observed that the company utilized advertising platform like TV, leaflets, newspaper mostly.
The company used the TV commercials to promote its brand and the tagline of the
commercials were low prices as compared to its competitors (Sultan, Wong and Sigala,
2018). Company further used the Swap and Save message through the advertisement that
attracted more customers in its purview and these customers started to buy products from
Aldi because they realized the fact that they actually are saving in their purchase.
Thus, from the above marketing strategies that were implemented by Aldi it can be observed
that company captured a large market share by beating the strong existing players in the
Australian retail market (Grimmer, 2019). The main marketing strategy that enabled Aldi to
sustain in the international market of Australia and base its foundation in the market are the
adoption of the low pricing strategy and the involvement pf the limited product range.
Strategic Marketing Options for Aldi moving forward
Aldi managed to create strong base in the Australian market but due to presence of the strong
market players in Australia, Aldi have to involve other marketing strategies along with the
low pricing strategy. It can be observed that Aldi has low pricing strategy as compared to its
competitors but still it cannot beat the competitors in the market and the core reason behind
this is the huge number of loyal customers of these organizations (Jie and Gengatharen,
2019). Thus, it can be suggested to Aldi that it should devise its marketing strategy to pose
threat to oust competitors in the market.
In order to move forward and hold stronger base in the Australian market, Aldi has devised
its marketing strategy and the most eye-catching features of this are discussed below:
 Home delivery services is one of the marketing strategies that Aldi has started in its
operational bundle because nowadays this home delivery services are in high demand
(Boyer et al., 2018).
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 Online shopping experience for the customers, along with the development of modern
technology online shopping has gained much importance among the shoppers and
almost all organization has adopted this strategy to sustain in the market (Ashley and
Tuten, 2015). Aldi has also implemented this online shopping feature in its
management and this online shopping strategy by company has been introduced to the
market in the form of company’s online websites and the mobile based application.
 Aldi is a company that believes in serving the customers and this is the reason in order
to provide great importance to its customers have introduced the loyalty card system
which has came into action in the form of membership card (Bărbulescu, 2018).
Conclusion
The above report upon the analysis of the marketing strategy by Aldi show that company
after its inception in the Australian market managed to sustain because of the proper adoption
of the marketing strategies. From the analysis further it can be concluded that low pricing
strategy and fewer product storage are the main marketing strategies that aided Aldi to sustain
in the market. However, the study have also showed that in order to move forward in the
Australian market , Aldi has introduced some of the marketing strategies which are devised
considering the modern lifestyles of the shoppers.
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References
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Available at: https://www.aldi.com.au/ [Accessed 22 Sep. 2019].
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Bărbulescu, O., 2018. MARKETING STRATEGIES USED BY RETAILERS ON THE
INTERNATIONAL WINE MARKET. Bulletin of the Transilvania University of Brasov.
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Biswas, M.R. and Rana, M.S., 2018. Importance of the Application of Marketing Strategies
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Boyer, S., Carr, J., Loomis, S., Prothero, M., Street, Q. and Chen, J., 2018. Could Aldi
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Cameron, A.J., Sayers, S.J., Sacks, G. and Thornton, L.E., 2015. Do the foods advertised in
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Grimmer, L., 2019. Disrupting the giants: How independent grocers respond to the
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Distribution (pp. 13-24). Woodhead Publishing.
Jie, F. and Gengatharen, D., 2019. Australian food retail supply chain analysis. Business
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Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G., 2015. Marketing. Pearson
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Merrett, D.T., 2019. The Making of Australia's Supermarket Duopoly, 1958–
2000. Australian Economic History Review.
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Sever, I., 2015. Importance-performance analysis: A valid management tool?. Tourism
Management, 48, pp.43-53.
Souza-Monteiro, D. and Hooker, N., 2017. Comparing UK food retailers corporate social
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