Marketing 301 Report: Evaluating ALDI's Competitive Strategies

This report provides a critical evaluation of the marketing strategies employed by the supermarket retailer ALDI. The analysis delves into various aspects, including the marketing environment, target market identification, segmentation strategies (demographic and psychographic), and product positioning. It examines the factors influencing product positioning, such as price, packaging, and promotion. Furthermore, the report assesses ALDI's marketing tactics, including Porter's Five Forces analysis and product differentiation strategies. The conclusion synthesizes the key findings, emphasizing the importance of a well-defined marketing plan for ALDI's continued success. The report references key marketing concepts and academic sources to support its analysis.

Running head: Marketing 301
Marketing 301
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Executive Summary
The main purpose of writing the particular report is to critically evaluate the various
marketing tactics used by big supermarket retailer ALDI to compete. This various strategies are
used by ALDI to market their product. The market is widely spread throughout all the parts of
the world. ALDI founded in the Country Germany. It an American Beverage corporation having
its headquartered in Atlanta. Its product portfolio consists of various items which are required for
day to day usages are available in the supermarket.
The marketing plan formulated by the company helps them to reach among the top
brands. The company brings in product which is innovative and serves the customers with
quality and quantity, packaging, advertising for sustainability in this market.
To conclude it can be seen that ALDI has trusted brands which serve all the people.
ALDI is focused on making various strategies so that it becomes easier for the customer to make
a choice in the market for their product from the supermarket.

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Table of Contents
Introduction......................................................................................................................................3
Marketing environment...................................................................................................................3
Description for target group or target customer for ALDI..........................................................3
Targeting strategy............................................................................................................................4
Type of segmentation..................................................................................................................5
Positioning of the Product...........................................................................................................5
Factors involved in positioning the product................................................................................6
Marketing tactics.............................................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
Marketing strategies used by all the retailers to grow in the industry. ALDI is one of the
leading retailers spreading all over the World. The management and the director make business
plan and strategies and these helps the companies to become successful and also to establish and
improve or increase the profit from the business. The main intension in this report is to analyze
how ALDI gained the largest position in the industry as a retailer in the International Business
market. Originally the supermarket store was founded by the brothers Karl and Albreht.They had
their headquarters in Essen and thus have more than 8000 stores Worldwide. The marketing
objective of ALDI is to provide high quality products to the entire customer. Thus ALDI ensures
to sell those products to the consumers which they regularly need with a low cost. (Armstrong et
al,.2014)
Marketing environment
In the marketing environment of ALDI, it is seen that there are five things price, product,
place, promotion and the people which is important for marketing. The most important element
in the strategies made for marketing the product is the price of the product and the position and
placement of those products in the market place. Advertising also plays a vital in the promotion
of all the products in that supermarket. The pricing of product sold in the supermarket ALDI is
done by the management and they decide it taking into consideration the market and the place
where it is sold, the price of those products is based on competitor pricing. This strategy helps
the company to sell product at a reasonable price thereby helping the company to attract more
and more consumers towards their brand (Arnold,2016).

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Description for target group or target customer for ALDI
Most of the companies are aware that “customer is the king of the market” which has
eventually changed the perception that was earlier “customer will accept whatever he is given”,
this change helped to changed the mindset which led to the opening up and usage of the word
“P” which is called the promotion. Their strategies for promotion helped the company to achieve
goals. Promotion is a huge term and it is linked with ‘advertising’. The target group is the
consumer preferences for need of regular need of product (Brown & Dant, 2014).
Targeting strategy
The target market for the supermarket ALDI is the lower income earners who do not have
huge earnings. They target on selling their products in the rural place. ALDI gives the best value
for the products and for their groceries so that they are able to gain the feedback of the new
customers. ALDI focuses on both the market, the primary target market which includes the
people who will directly buy the product or service of the company (Steenkamp, 2017). Another
market is the secondary target market which means that the customers have the potential to buy
now or in the near future or to tell someone else to buy.
The focus is on the customers who want to buy their everyday requirement for the
products under one roof. The primary market is someone who buys the products and they get the
greatest revenue from the primary market. The secondary market is the buyers who are buying
the products at a higher rate. ALDI is spread over in more than 8000 stores for their local nature
of their business; this will help in getting a unique and exceptional position which helps the
company to get economic vitality in the remote communities all around the world (Chernev,
2015).

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Type of segmentation
Figure 1: Pattern of Segmentation
Source: (Leon & Marriaga, 2016)
The demographic variables for the Companies are the income, education, and marital
status and the gender, age, and stages of life which will help the company to be able to
understand how a consumer influences the decisions of purchase.
In order to help in the determination of psychographic segmentation, ALDI is focused on
serving high quality products at a low cost. ALDI is focused on selling all the grocery products
to the consumers. Thus this helps the consumers to meet their day to day requirement (Metzger,
2014).

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Positioning of the Product
Positioning means that the position of the product in the market and its stands or where
the brand ALDI positions their brand and comparing them with their competitors in the market
and their perception in the consumers mind. ALDI was founded by the brothers who have made
a strong position in the market and have a brand value (Mehta & Dixit, 2016).
Factors involved in positioning the product
a. Price: The price is a important factor and the shares of ALDI is sold and have a high
price. In order to be dominant, the company ALDI has set a low price. The price strategy
is important so that the company is able to attract the consumers. The greatest
disadvantage in having a low price is that the competitors also reduces the price thereby
there is a advantage in the reduction of price (Moriarty et al,.2014).
b. Packaging: It is quite different from other brands as they move their product not by
placing individual items, but they place stock by hand build forklift which is a effective
way for transportation.
c. Promotion: Promotion is achieving awareness in the products, which they are trying to
achieve in the World. This promotion mix comprises of special offers which is used to
promote liquor production.
d. Differentiating: The symbol of the brand is very important for the sales of the product in
the supermarket (Ododo, Mulholland & Turner, 2015).
Marketing tactics
Analysis from Porters Five Forces: Porter’s five forces are used so that the companies
remain competitive in the market. In this retail market, the competition is high and there are low

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threats to entrants and this means that the companies have difficulty in entering the market
(Steenkamp, 2017).
Product Differentiation Strategy: Through the strategy of differentiation, it is helpful for
the company is able to stand out so that it is able to be creating something new for the products
of the same type of category. ALDI will be advertising and making marketing strategy, this helps
the leader to be different in the different retail companies (Wrigley & Lowe, 2014).
Conclusion
In order to include the marketing plan which a simple and plain document .It involves a
lot of documents where there is information and research and the skills and effort. Hus in order
to conclude all the companies which is able stand in the market, the companies make different
business and market and product so that there is product development and price setting,
promotional efforts, and distribution matters. In order to make efforts in developing the business
plan and thus there is growth in the business.ALDI makes the marketing plan which helps the
business to grow.

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References
Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson
Australia.
Arnold, V. (2016). The development of an international marketing strategy for ZEVIA on the
Soft-Drink market in Germany.
Brown, J. R., & Dant, R. P. (2014). The role of e-commerce in multi-channel marketing strategy.
In Handbook of Strategic E-Business Management (pp. 467-487). Springer Berlin
Heidelberg.
Chernev, A. (2015). The marketing plan handbook. Cerebellum Press.
Leon, E., & Marriaga, D. (2016). Utilizing entrepreneurs’ cultural capital as marketing strategies
in the restaurant industry.
Metzger, K. (2014). International Management Analysis of ALDI.
Mehta, R., & Dixit, G. (2016). Consumer decision making styles in developed and developing
markets: A cross-country comparison. Journal of Retailing and Consumer Services, 33,
202-208.
Moriarty, S., Mitchell, N. D., Wells, W. D., Crawford, R., Brennan, L., & Spence-Stone, R.
(2014). Advertising: Principles and practice. Pearson Australia.
Ododo, C., Mulholland, G., & Turner, J. (2015, November). Can Discount Pricing Be A
Comeptitive Brand Strategy? An Evaluation of Aldi. In International Conference on

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Marketing and Business Development (Vol. 1, No. 1, pp. 241-251). Bucharest University
of Economic Studies Publishing House.
Steenkamp, J. B. (2017). Global Marketing Mix Decisions: Global Integration, Not
Standardization. In Global Brand Strategy (pp. 75-109). Palgrave Macmillan UK.
Steenkamp, J. B. (2017). Global Brand Strategy: World-wise Marketing in the Age of Branding.
Springer.
Wrigley, N., & Lowe, M. (2014). Reading retail: A geographical perspective on retailing and
consumption spaces. Routledge.

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