International Marketing: A Report on ALDI's Market Entry in India

This report identifies India as a potential international market for the German company ALDI. It provides a background of ALDI, including its low-cost, efficient, and standardized business model that focuses on value, quality, and convenience. The report includes a PESTLE analysis, highlighting political, economic, social, technological, legal, and environmental factors relevant to India. It also defines the target market, focusing on demographics and spending habits, and conducts a Porter’s Five Forces analysis to assess the competitive landscape. The report concludes that ALDI has significant opportunities in India due to its deep discount strategy but faces a highly competitive market. Geographic segmentation and leveraging India's favorable technological environment are recommended. The report references various sources to support its analysis and recommendations. Desklib provides this and many other solved assignments for students.

MARKETING IN AN
INTERNATIONAL
ENVIRONMENT

INTRODUCTION
 The purpose of the report
is to identify an
international market for
German company ALDI in
India.
 The new international
marketplace is researched
with respect to background
of the company in the
parent country and by
presenting a macro
environment analysis and
competitor analysis is
developed for ALDI.

BACKGROUND OF THE COMPANY
 ALDI founded in 1961 in
Germany has successfully
been on the market with an
annual sale of 10 billion
dollars.
 ALDI's increasing popularity
in the UK comes from their
enhanced service providing
nature and the ability to have
staffs engaged.
 The three main factors that
ALDI has able to offer to
satisfy the customer is Value
of the product, quality and the
convenience.

CONTD…
 ALDI has followed a model of low
cost efficient, standardised business.
 The secret is the ability of the
company to maintaining lower
handling costs, lower Stock Keeping
Unit and the narrower range of
products with quality.
 The domestic success in the market
has been from the ability of the
company to provide high quality
products with a narrow focus and to
keep handling costs low by offering
customer value, quality and
convenience.

MARKET SELECTION
 Brands: The brands of the organisation
are Groceries, Liquor and recipes are
the main products and services that are
offered by the organisation.
 Strengths: The strength of the
company is the company's ability to
adeptly maintain their handling costs
and sustain the stock keeping unit
(SKU).
 Weakness: Uniform discount strategy
model is a weakness for the
organization since it is perceived as a
low cost strategy that has cheap quality.

PESTLE ANALYSIS
 Political Factor: The World Bank
governance indicators are supportive of
investment in India with the three
indicators such as government
effectiveness, political stability and
regulatory quality.
 Economic Factor: Labour costs in India
are identified to be cheap and less cheap
than developed counterpart countries.
 Social Factor: Social media has fared in
India signify that there is a significant
inclusion of social media in the
development of global share of Indian
population on social media.

CONTD…
 Technological Factor: technological
investment towards digitalisation is significant
in India.
 Legal Factor: Labour laws in the legal realm
are considered to be more important than
other factors in the development of the
organisation. The understanding on labour
laws gives us an opinion that it is more
pertinent for ALDI to incorporate technology
standards in the organisation through the
development of its labour.
 Environmental Factor: An analysis on how
the supermarkets in India function gave an
understanding that customised operating
strategies are being followed by supermarkets
in India.

TARGET MARKET CONSUMERS
 The target market in India will be centred on elements such
as gender, race, age and occupation.
 Indian grocery market is the world's third largest, it is
understood that the sales have peaked to more than 400
billion dollars.
 This mainly is significant considering the population and
the increased spending ability exhibited by the population
in India.
 The growth percentage of modern grocery retailing has
peaked to a significant percentage of 17 since the last year.
 Lifestyle characteristics have indicated the increased
spending of the customer towards the grocery and
supermarket.

PORTER’S FIVE FORCES COMPETITOR
ANALYSIS
 Bargaining power of suppliers: Bargaining power of suppliers
is high since they find restocking and filling demand as a task.
 Bargaining power of buyers: Costly world chains around the
world have found it difficult to set up a supermarket chain in
India considering the stringent rules placed by the government
pertaining to changeable FDI rules.
 Threat of substitutes: Supermarkets and hyper markets in India
are considered to have increased sophistication with the
development of Star Bazaar, Big Bazaar and Amazon among
other retail stores accounting for a major output in the economy.
 Threat of New Entrants: The threat of new entrants is
considerably low considering the high cost investment for any
business.
 Rivalry among competitors: The rivalry is high among the
existing competitors.

CONCLUSION
 ALDI has significant opportunities
for development and operation in
India considering its deep discount
strategy. The macro analysis reveals
that it is feasible for the operation of
the supermarket chain in India and
the micro analysis reveals the highly
competitive market condition for
ALDI.

RECOMMENDATION
 Geographic segmentation is
recommended for the organisation.
 The analysis has revealed the increased
female customer spending and likeness
to reduced costs.
 With the favourable technological
factor in India, ALDI can successfully
use its cost cutting strategy and stock
management strategy in India.

REFERENCES
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CONTD…
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