Marketing Report: Aldi UK's Environmental and SWOT Analysis

This report provides a comprehensive analysis of Aldi's marketing strategies within the UK retail sector. It begins with an introduction to Aldi's business, vision, and mission, followed by an examination of the internal and external factors influencing its performance. The environmental analysis explores political, economic, social, legal, technological, and competitive factors impacting Aldi. A SWOT analysis is conducted to assess the company's strengths, weaknesses, opportunities, and threats. The report identifies marketing, management, and product-related issues faced by Aldi, such as ineffective marketing plans, lack of technological adoption, and a limited product range. It highlights the impact of Brexit, changing consumer habits, and competitor activities. Finally, the report concludes with recommendations for Aldi, including the adoption of current marketing tools and digital technologies to improve its marketing and production processes, and enhance its competitive advantage.

PRINCIPLES OF
MARKETING

Table of Contents
 INTRODUCTION AND BACKGROUND
 MAIN BODY
 Environmental analysis
 SWOT analysis of Aldi
 CONCLUSION AND RECOMMENDATION
 REFERENCES

INTRODUCTION AND
BACKGROUND
 The current report is based on Aldi company, operate business in UK retail sector.
 The purpose of this presentation is to determine the external and internal factor affect
Aldi business.
 The aim of this study is to examine issues and factors, and explain recommendations
after analysing the organizational environment.
 The vision of Aldi is to allow consumers to live richer lives for less.
 The mission of company is to continually set standards for food retailing and expand
market position all over the world.

Environmental analysis
Internal factors in organization-
Marketing issues-
 Aldi faces marketing and position problems, due to ineffective marketing plan they cannot be able to build their
lead in consumers mind.
Management issues-
 Another issue faced by firm due to not utilizing technology for operations, that affect business growth within
food retail industry in UK.
Product issues-
 As compare to other brand, Aldi have smaller range of goods along with this they face issues poor management,
they cannot be able to utilize technology in food production system.

External factors
Political factor-
 High levels political vulnerability and conflicts after Brexit threaten sustainability of Aldi negatively, because
its stores are located in Europe, China and other nations which affected due to EU exist from UK.
Economic factor-
 As an impact of Brexit, prices have risen in United Kingdom and pound has dropped, people cannot be able to
purchase costly products that directly impact on Aldi profit margin.
Social factor-
 Changes in consumers life styles and other demographic trends that have potential to be threats for
businesses.
 One of the factor that affecting Aldi is shift to healthier eating habits by many customers, they reject sugary

CONT.
Environmental factor-
 Concern of government and customers towards environmental safety can put pressure on Aldi to
take participation in corporate social responsibility take effect current business plans of company.
Legal factor-
 Aldi face few legal problems with its employees in UK, due to unstructured and worst employment
arrangements.
 Changes in employment law put high pressure on organization management to make changes
according to laws.
Technological factor-
 Technological advancement affect Aldi production and marketing strategies, its
competitors adopt advanced technologies that gain consumers attention more than Aldi.

Competitor information
 Aldi is one of the most popular organization in food retail sector, there are number of
competitors available in market who give tough competition to firm.
 TESCO is one of its biggest competitors, they sell range of products with better quality
and affordable prices.

SWOT analysis of Aldi
Strength-
 Aldi company are able to sustain in market because of low prices, they give low cost products to its
consumers that help to retain them with purchasing.
Weakness-
 Poor marketing strategies and less focus of management towards this activity can affect brand
awareness and its reputation in market.
Opportunity-
 To enhance practices and increase productivity, organization will utilize the latest technologies and
get the opportunity to gain competitive advantages with it.

CONT..
Threat-
 Current competitive business environment within UK food retail industry, posses
threaten situation for Aldi.

CONCLUSION AND
RECOMMENDATION
 From above analysis, it has been summarized that Aldi face issues in different areas
such as marketing, products and management.
 In order to overcome these problems Aldi recommended adopting current marketing
tools and digital technologies that they can use for marketing and production purpose.
 By adopting technologies they can sustain for long and gain competitive benefits more
than its competitors.

REFERENCES
 Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing. Pearson UK.
 Kilpeläinen, T.O and et.al., 2019. Multi-ancestry study of blood lipid levels identifies
four loci interacting with physical activity. Nature communications. 10(1). pp.1-11.
 Otieno, E., 2018. Aldi Market Report. GRIN Verlag.
 Syahid, C.N., Alizar, A.M. and Nikoyan, A., 2015. Influx Policy Recommendation: An
Integrated Strategy through Sustainable Livelihood Approach. Humanities & Social
Sciences Reviews. 3(2). pp.64-69.