Marketing Analysis and Plan for Aldi: Coursework Report

This report provides a comprehensive marketing analysis of the Aldi company, examining its key roles and responsibilities within the marketing function, and how these relate to the broader organizational context. The analysis includes a comparison of Aldi and Lidl, focusing on their use of the 7Ps marketing mix to achieve business objectives. The report culminates in the production and evaluation of a basic marketing plan for Aldi, incorporating tools such as PESTLE, SWOT, and STP analyses. The introduction sets the stage by emphasizing the importance of marketing in business, particularly for a retail company like Aldi, and outlines the objectives of increasing market share. The report explores Aldi's marketing department's role in customer relations, promotional strategies, market research, and internal marketing, detailing how these activities contribute to business expansion and customer acquisition. The comparison of Aldi and Lidl examines their product offerings, pricing strategies, distribution channels, promotional efforts, customer service, and operational processes. Overall, this assignment offers a detailed overview of Aldi's marketing approaches and strategies.

MARKETING
ESSENTIALS

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 The key roles and responsibilities of the marketing function for Aldi company..............1
P2 How roles and responsibilities of marketing relate to the wider organizational context. .3
TASK 2............................................................................................................................................4
P3 Compare ways in which Aldi and Lidl use elements of the marketing mix (7Ps) to achieve
overall business objectives.....................................................................................................4
TASK 3............................................................................................................................................7
P4 Produce and evaluate a basic marketing plan for Aldi......................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is become one of the very important part of any business organization which
aims to design various marketing strategies and organizes different programs to understand
marketplace and customers’ needs. In corporate world, marketing managers owes accountability
to create values for customers and thereby drive maximum turnover and contribute towards
business profitability. Aldi is a retail company established on 23rd, June 1913 and it is located in
Germany. The operations of Aldi consist of Aldi Nord's 35 individual regional companies with
about 2500 stores in western, northern and eastern Germany and Aldi suds 32 regional companies
with 1600 stores in western and southern Germany. The current report aims at presenting detailed
marketing analysis of Aldi which target aim of is to increase their market share all around the
world. The assignment also will examine the roles and responsibilities of its marketing activities.
Lastly, marketing plan will be constructed for the firm by applying various tools like PESTLE,
SWOT and STP.
TASK 1
P1 The key roles and responsibilities of the marketing function for Aldi company
The aim of marketing function of Aldi company to increase their market share in all
around the world by providing good quality products and services to their customers and offers
them innovative ways of shopping which attract customers. The marketing department of Aldi
plays a crucial role in expanding business and thereby achieving the business goals. The
marketing department of Aldi deals with customers, investors, and others and always try to keep
good image of company (Dibb and Simkin, 2013). The duties and responsibilities of marketing
function for Aldi are as follows:
 Conducting marketing programs and campaign management for those products and
services which are need to be focus this is done to promote and to increase sales of
products and services.
 Promotional tools: For conducting programs and campaigns tools and material is
required to be produced which help in promoting products. These tools and materials
include description of products and services. If there is any change in products and
services the tools and material is needed to be updated as per changes in product and
services. For examples: The website of Aldi is the only place from where customer can go
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to get information about the company and companies products and services. So the
websites should include all content about company and its products and services.
 Marketing through social media: Marketing of Aldi company is also done on social
media platform. This the duty to monitor and to manage the social media pages and
accounts and be careful about posts related to Aldi company.
 Internal marketing: Internal Marketing of company is equally important as external
marketing (Lamb, et.al., 2011). The employees of companies must know about the
company and also must know about products and services company is producing.
 Help companies executive to face media: This is duty of marketing managers to act as a
spokesperson of company or helps the executives to face media by guiding them that how
to respond the questions asked by media person.
 Research of market place and customers: To understand the needs of customers and
opportunities the market and customers research is very helpful. In this research the
nature, etc. of market and customers is included.
 Appointment of agencies and vendors to produce marketing tools: This also duty of
marketing to select and manage agencies and vendors who are producing and creating
marketing tools or materials which supports in marketing functions. These vendors or
agencies includes ad agencies, print vendors, web providers, etc.
The marketing plays an important role in development and expansion of businesses in
many ways such as:
 Large number of customers: Marketing plays a important role in increasing the number of
customers of Aldi globally. Marketing functions includes the development of marketing
tools and materials which helps to promote products and services in market which attract
more customers to purchase more products of Aldi.
 Good quality products at lower prices: This help companies in producing improved
quality of products (Malhotra, et.al., 2013). The marketing research is done by an
organisation to understand customers needs that they want good quality products at lower
prices.
 Create good reputation: They help in developing the reputation of Aldi in market globally.
Marketing of products and services of Aldi creates its reputation in market.
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P2 How roles and responsibilities of marketing relate to the wider organizational context
Now marketing is not only a department of a company but it is a part of organizational
process in which entire company take part. The marketing function plays important role
improving business performances in following ways:
 The marketing strategies helps in understanding needs of customers and create such
marketing tools which attract them to purchase the products and services of Aldi which
increase sales and revenues of Aldi (McDaniel, et.al., 2012). Sales performance improves
with help of advertising at different platform.
 These help company to understand market and customers by which they can increase there
market share. With help of effective marketing strategies they can cover huge market
share.
 The market research is key responsibility of managers which identify different market
opportunities. So these opportunities can be grab by company.
 The market research is also help company to understand the strengths and weaknesses of
there competitors which help them in protecting there existing businesses and also help in
winning over there competitors.
 Marketing help in understanding the needs of customers which make Aldi to produce
those products and services which fulfil demands of new customers or new preferences of
existing customers. To retain customers innovations is regularly done.
 The marketing roles helps Aldi to grow there business as per needs of customers. They
make changes in there as per changes take place in marketplace (Wirtz, 2012).
 The marketing help in improving communication between Aldi and their customers with
the help of Aldi website and social media pages. This direct communication with
customers help in building trust of customers.
 It also helps in promoting there products among there employees by communicating the
product details to there employees. So there employee should know what they are
producing etc. Aldi also take suggestions from employees which motivates them to work
hard.
 The profitability of company is also increases by using this marketing strategies.
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 Good quality products at lower prices: This help companies in producing improved
quality of products. The marketing research is done by an organisation to understand
customers needs that they want good quality products at lower prices.
 Create good reputation: They help in developing the reputation of Aldi in market globally.
Marketing of products and services of Aldi creates its reputation in market. Marketing
help Aldi to give answers of media questions and in that also show positive side of Aldi
(Pike, 2015).
 Different events, seminars, etc. organizes by Aldi also help in improving there
communication.
TASK 2
P3 Compare ways in which Aldi and Lidl use elements of the marketing mix (7Ps) to achieve
overall business objectives
Aldi and lidl marketing mix elements are used to achieve different business objectives.
(Source: Marketing theories - the Marketing Mix from 4 PS to 7 PS, 2015).
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Illustration 1: 7 'p' marketing mix

 Product: Aldi provided good quality product with low prices. Aldi sold the private brands
or local farmer's product which can control and expand there production as per needs and
reduces cost. This the main reason for lower prices of Aldi. Aldi not only provide food
products but also experiments with non food products such as health and beauty products,
clothes, stationery, electronic products, household tools and others. In Germany, Belgium,
Austria Aldi has mobile network operator called Aldi talk and Aldi mobile. Aldi aims to
increase there ranges of products and also to increase there market share. By lower prices
they can increase there number of customers and by wide ranges of products can grab
huge share of market. On the other hand Lidl is also a supermarket or competitor of Aldi
which produce similar products. Lidl use different brand names products in there stores.
They are also sold the products at cheaper prices but prices are higher than the prices of
Aldi (Jones and Rowley, 2011). They need the best quality products to ensure that they are
sourced ethically. They work with different organisations includes Red tractor, the rain
forest alliance and the marine stewardship council. The company produces household
products to baby care to wines and other non food products. It has less range of products
then Aldi.
 Price: Aldi uses such policies which offers them high quality products at lower prices.
The policies use in Aldi is unit pricing strategy by which consumers can easily compare,
market penetration it changes low prices for new products so it can gain profits,
competitive pricing, psychological pricing, loss leader pricing in which they products non
food items at lower prices and attract customer to stores and made then to buy groceries as
well. Such pricing strategies help Aldi in reducing or lowering there prices. On the other
hand lidl is uses pricing strategies which reduces there prices but not less than compared
to other Aldi prices. They take payments before customers so they can leave the stores
quickly so prices to save prices. Lidl pricing strategies are different from Aldi marketing
strategies.
 Place: Aldi has 8000+ stores in 18 countries and opens new stores in Germany or
European countries per week. Aldi purchase products and services from local producers
and stores them in warehouses and ensures quality of products. They also take care about
transportation cost, ensures minimum wastage and use environment friendly products. The
onloine stores are also presents which help customers to know about products and about
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location of stores while lidl has number of stores in UK and Europe in which they operate
different segments of supermarket industries. To maintain the level of stock in the stores
of there are varieties of distribution channels across UK and Europe.
 Promotion: Aldi invests very less amount in promotional strategies to saves cost. They do
not have marketing department in Germany. They only offers ''super buys'' offers to there
customers which changes every week and information related to which given to customers
through newsletters (Forshier, 2012). They also use the promotional techniques like 'swap
and save' to make customers to change there brands and 'like brands only cheaper' to build
trust of customers. In other hand lidl; considered as more promotional than Aldi. They use
EDLP for non food items. Lidl fulfil demands of customers faster than others.
 People: Aldi has less customer services as there is less number of workers employed to
reduce cost. There employees are only seated at billing counters to take payments from
customers. They quickly scan products which increases sales. They pay high wages to
there limited employees and provide them training. But in lidl gives employment to more
workers to satisfy customers or to attend more customers to increase sales. They also
organize training program mes with high standards for there employees.
 Process: The selection time is very less in Aldi stores there as they limited numbers of
high quality products with lower prices. As they have fewer employees in company it
reduces cost of products (Babin and Zikmund, 2015). Aldi put the size of bar codes large
so it can be easily identified also use border longer conveyor belt for fat billing which
saves there time as well as customers time. On the other hand in lidl there primary process
is followed to purchase and sale products at lower prices. There no power of operations
given to customers.
 Physical evidences:In aldi 90% of stacks are from local farmers and the other are of
established brands. They provide cheaper products than other while in lidl stores there
traditional methods are used so customers can easily purchase and leave. They use there
brand colours, yellow and blue to know customers that there any lidl store in near.
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TASK 3
P4 Produce and evaluate a basic marketing plan for Aldi
Marketing plan is a document that outlines a business advertising and marketing efforts
for coming years of Aldi company. Marketing plan for Aldi is very important and its evaluation is
also done to ensure profitability of business.
Marketing objectives:
 Aldi has to increase there sales by 15% at the end of this financial years.
 The main aim of aldi marketing is to increase there market share. There aim is to increase
market share for 'like brands'.
 Marketing of Aldi is to build good image of supermarket and to generate customers trust
and loyalty in Aldi.
 The objective of marketing strategies is to ensure the quality of brand is equal to quality of
established brands.
 There objectives also includes that should use environment friendly and ethical tools and
materials of promotions (Simmons, 2013). It should not affect sentiments of customers in
any way.
Aldi's Marketing mix strategies:
 Place : Aldi should have to open there stores in the location which has large number of
customers. The place should be as per the nature of products produced by Aldi. The place
should not any extra shops like lottery terminals, dry cleaning shops, etc. this will increase
end cost to customers. Aldi's competitors stores are available for 24 hours, 7 days and 365
days so they have to make plans for such problems (Jones and Rowley, 2011). Aldi is
small store in comparison to there competitors so they don't need large space which
reduce there place cost.
 Prices : They should have to employee less number of workers so they pay less which
limits the cost. Such reduction in cost because of small size and fewer employees will
ultimately reduce the prices of products or services to customers. Aldi is a discounted
retail chain which provides discounts to there customers which attract new customers to
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there stores. Aldi produces good quality products at reasonable prices wghich also attract
customers.
 Product : Aldi should aim to produce new range of products which are usually different
from grocery items in the stores attract customers. These should be limited in numbers and
temporarily available in the stores which gives great deals to there customers. These
products are promoted with help of posters in the stores for upcoming weeks.
 Promotions : Different advertising techniques should be used to promote the products
and services. Aldi can organize blind taste experiments among shoppers to proof that
products of there stores is also liked by those customers that preferred well known brands.
This advertisement method help Aldi to speak about there brand quality and with low
prices. They also attract customers by analysing how much they save if they use there
products (Bennett, 2010). Aldi can also print brochures per week to distribute it in stores
or out of stores to people living around there stores. They can also use social media
platform and there website to promote there products and services. The social media and
website directly connect Aldi to there customers. They can also provide vouchers to those
customers who recommends Aldi to others on social media etc.
 People : Aldi is run by number of people from sales staff to there directors. They should
have to employee right person in there company so they work hard for Aldi.
 Processes : Aldi must have to follow a process to deliver there services to customers. So,
the proper process is to be followed for any working of organization. The Aldi must use
those process which gives benefits to customers.
 Physical evidences : Aldi provides physical products to there customers. There must be
physical evidences for sales to customers (Forshier, 2012).
To make effective marketing plan there is need to analyse market with the help of PESTEL and
SWOT analysis:
PESTLE analysis of Aldi
This is the most important tool which evaluate the external environment of Aldi (Yüksel, 2012).
This not only provides understanding of market but also considers as the basis to defines the
activities of organization which is to be perform to achieve organizational goals.
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Political
 There are no threats to Aldi's operations from wars and conflicts. There major stores are
located in Australia, U.S.A., China, which are free from conflicts.
 Germany is most influential countries of Europe and after Britain leaves Europe
uncertainty of European firms increases this can create difficulties to Aldi's operations.
Economic
 Due to the effect of Brexit the prices of imported goods rises which worked in favor of
Aldi as they are discount chain market.
 Inflation increases which reduces purchasing power of customers but it is also favorable to
Aldi as it is the discounted supermarket. The people opposed to eat at restaurants and like
to eat at home could rise Aldi sales (Babin and Zikmund, 2015).
Socio -culture
 Aldi pays higher wages to there employees in compared to there competitors this will
result in better standard of living to there workers and them to eat good food, better health
care facilities etc.
 Aldi take initiative to teach children in UK to have healthy eating habits.
Technological
 Aldi is yet to adopt such technologies which provides there customers quick and efficient
services so there customers not need to wait in queues.
Environmental
 Aldi used to stock their products from local British farmers and producers to support local
producers and ensures there sustainability of local areas.
Legal
 There many scandals takes place in UK which effects Aldi but in 2016 Aldi also found
themselves in legal dispute as a result of misrepresenting there sales of herbs, olive is
found in oregano products (Jones and Rowley, 2011).
SWOT analysis of Aldi
Strengths:
 Provide quality products (15 things to buy at ALDI & five to avoid, 2016).
 Discounted supermarket chain
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 2500+ stores in Germany and 8000+ stores globally with operations over 15 countries.
 Low operating costs
Weaknesses
 Small size of business as compared to competitors.
 Sometimes treated as a cheap and low quality stores
Opportunities
 More marketing strategies to be establish to beat competitors
 Expansion of business in growing or developing economies (Jackson, 2003) like Africa,
Asia.
Threats
 Huge competitions.
 Private brands of Aldi can be tossed away by big or established brands.
STP approach
Segment: Customers are looking out to purchase groceries at competitive markets. Product
differentiation is used to develop differences in products and services from there competitors.
Aldi has 95% of private labels and provided low prices products.
 Demographic : This includes people with lower incomes and those who have less income
to spend.
 Geographic : this covers the people of rural areas and suburban areas.
 Psycho graphic: it is not concerned with product range or after sales services but
concerned with environmental friendly packaging and locally produced fruits and
vegetables (Yao, 2006).
 Behavioural: customers need good quality products at a low prices they don't need
branded products.
Targets groups : The target groups of Aldi is households. Generally household includes all age
groups of people (Baxter, 1993). They targeted public from where they get best prices for there
groceries and can also get new customers (Papasolomou, I. and Melanthiou, Y., 2012). Cheap
groceries attract more customers.
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