Marketing Essentials Report: Aldi's Strategy and Plan Analysis

This report provides a comprehensive analysis of Aldi's marketing strategies and operations. It begins with an introduction to marketing essentials and the role of marketing functions, detailing profit maximization, brand promotion, market expansion, and the importance of market research. The report then explores the roles and responsibilities of marketing within Aldi, including identifying customer needs, conducting market research, advertising and promotion, and ensuring organizational growth. The interrelationship of marketing with other functional units like finance, HRM, and production is also examined. Furthermore, the report compares Aldi's marketing mix with that of Asda, focusing on product, price, place, promotion, people, process, and physical evidence. Finally, it presents a marketing plan for Aldi, including an executive summary, market analysis, objectives, strategies, and evaluation.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION......................................................................................................................................3
Lo 1.............................................................................................................................................................3
P1. Roles and responsibilities of marketing function.......................................................................3
P2. Roles and responsibility of marketing in organizational context..............................................5
Lo 2.............................................................................................................................................................7
P3. Comparison of ways by which various organization applies their marketing mix..................7
Lo 3...........................................................................................................................................................10
P4. Evolution of basic marketing plan..............................................................................................10
CONCLUSION........................................................................................................................................16
REFERENCES........................................................................................................................................17

INTRODUCTION
Marketing Essentials refers as advertising, sales and publicity techniques that
are used to earn higher profitability in a business. Marketing of any product is being
done after it is ready or produced to sale. Marketing is done to increase the sales of the
company. The good marketing strategy helps to build brand reputation in customers
mind. The Study is based on Aldi.
The report will covers key responsibilities and role of marketing function. It will
clarify how responsibilities and roles are related with organization. It will analyze how
marketing functions are interlinked with functional units of an organization. Furthermore,
study will cover the way by which various organizations apply their marketing mix for
achieving their business objectives. It will produce a marketing plan for the chosen
organization.
Lo 1
P1. Roles and responsibilities of marketing function
Overview of Aldi Company
Karl and Theo Albrecht's mother was the founder of this company, this company
was founded on 10 July 1946 in Germany as a small general store and then it started
expanding all over the world. The company is now working in more than 20 countries,
and with more than 10000 stores. The company opened his first store outside the
country in Sydney in 2001 and is rapidly growing, and yet it has to open stores in
Australia and some other continents (8 things you never knew about Aldi, 2018).
Key roles and responsibilities of the marketing functions
Profit increment - The first and most important fact about the marketing is profit
maximization. For instance early Aldi Company as a multiple branches all around the
world with ample of workers (Perreault, 2018). Due to diversification of the business all
over the world a company is able to grab big portion of market and share in profit. Profit

is essential for growth and survival of the organization in competitive market for long
period of time.
Sustaining in the market - According to a number of researches in the field of
business to groom the competitive markets without advertisements it is impossible to
survive (Henríquez, 2018). So if an organization needs to survive into the market then it
must advertise its products into the Marketplace otherwise the goodwill for reputation of
the company will not increase in the market rather can be damaged. Aldi
 Promoting brand - Another very important function of marketing is brand
promotion; the branding strategy is one of the most important aspects of market
that helps the customer in easily identifying the brand. The Aldi Company needs
to give a unique brand name which must be brief to its stores which will be
helpful in expanding and diversifying the business all over the world.
 Market expanding - Due to rapid growth in the Global market or international
market a business unit is in need to diversify its business on the basis of changes
in the business environment whether internal or external like economical,
technological, legal, political and social. So the business engaged in retailing like
Aldi needs to diversify it's business after proper analysis of changes in the
market. The changes will be helpful in increasing the profit and reducing the cost
as the company will be able to use latest technologies and the changes will be
favorable.
Introducing new stores - The introduction of latest technologies opens the door of
growth and expansion but the growth is in two ways, diversification and expansion
(RancatiGordini and Capatina, 2016). The companies like Aldi are not in need to
diversifies the business but are in more need to expand the number of stores which can
make the work of grabbing a big share in market easier.
Importance of marketing research - The market is full of opportunities and threats but
a company should not neglect the threats instead must analysis them and be prepared
for them. Also the company like Aldi needs to analyze the business environment which
can be helpful in various ways; also the company can take the first mover advantage

and can grab a bigger share. But it also analyzes the upcoming threats which will be
helpful and framing plans and policies according to those threats (SHUKLA, 2016). By
deeply analyzing the market the company will also be able to identify its strengths and
weaknesses.
P2. Roles and responsibility of marketing in organizational context
Marketing helps the business to achieve its respective task and objectives by
creating an effective plan. The different roles and responsibility of marketing in case of
Aldi are as following:-
 Identifying customer’s needs:- Marketing department listens to the needs of its
clients and receive the feedback of its customers in order to make effective
strategy for fulfilling the same. There are some internal and external channels
with the help of which feedback of customers are taken that is by creating
surveys or with the help of social networks. This helps Aldi to have a better
understanding of actual needs of its customers.
 Market Research:-The role of marketing is to conduct market research with
respect to their offerings. This helps Aldi to determine their target market and
work effectively for maximizing the sales of the business (Najafi-Tavani, Sharifi
and Najafi-Tavani, 2016).
 Advertising and promotion:-Another major responsibility of marketing at Aldi is
to advertise and promote the business offerings with the help of ad campaigns
that includes powerful images and phrases with the help of which customer can
get attracted easily. There are different mediums such as TV, video, internet etc.
with the help of which marketing managers can promote its different products
and services (Clow, 2016).
 Ensures organizational growth and reputation:- Marketing is having its
responsibility to retain its potential customers and works to increase the market
share by satisfying the customers beyond their expectations.
 Sales:-Marketing plays a very important role for the business that is to generate
sales of the products and services that Aldi is offerings to its customers. It is a

very complex process and marketers have to pitch its potential customers by
making them familiar with different benefits of these offerings (Steger, 2019).
Interrelationship of marketing and other functional units of organization:-
Marketing is having an important interrelationship with different functional units of
Aldi and is as following:-
 Marketing with Finance department:-The marketing and finance department is
having an effective interrelationship as they both depend on each other for
various business functions. Marketing department work closely with finance
department in order to ensure an adequate budget so that different research and
promotional activities can be conducted for the business. Finance department
works to ensure that the marketing department is able to operate its all activities
within the financial capability of Aldi.
 Marketing and Human resource management:- Marketing department is
having an interrelation with HRM in order to have staff that is having required key
skills and knowledge. This helps the business for its new product development
and meeting the required production targets. HRM works to recruit and train
potential staff so that they have effective knowledge in hand for promoting and
advertising their offerings. On the other hand marketing department helps HRM
to create value of firm in eyes of people so that potential candidates apply for the
job role (Olson and et.al., 2018).
 Marketing and Production department:-Marketing works closely with
production department in order to ensure that an adequate research is been
conducted for satisfying present and future needs of the customers. Marketing
department sets a dead line and production department works to develop the
respective products on time in order to bring competitive advantage to the firm
(Setiaji and Umi, 2019).

Lo 2
P3. Comparison of ways by which various organization applies their marketing mix
Introduction of organizations
Asda
Asda is supermarket retailer firm. The company is founded on 19 February in
1949 by Peter and Fred Asquith. The headquarters of firm situated in Leads, West
Yorkshire in England. The parent company of Asda is Walmart. Asda stands for
associating diaries. It is general merchandise.
Aldi
Aldi is renowned supermarket chain whose business is spread all over the world.
The company is founded by Karl and Theo Albrecht on 10 July 1946. Its headquarters
are situated in Essen, Germany. The company deals in the products of food such as
vegetables, fruits, fresh products such as meat, fish, wine, beer etc. The company also
has home furnishing products.
Comparison of organization by applying marketing mix
Basis Aldi Asda
Product Aldi provides healthy food
products that seize
customer’s hearts. It is one
of the largest supermarket
chain that sales retail
products. They generally
offer fresh products to their
consumers to retain them
for long basis.
The company is selling
groceries and merchandise
products. It also sales
financial services to its
clients.
Price The stores of Aldi offers
lower prices on food
products but not on other
Asda sale its products at
reasonable price so that
they can attract large

essentials. Aldi sales its
products at lower price and
customers are more
focused on savings rather
than convince (Caragher,
2016).
number of customers. One
of the tagline of Asda is
save money live better.
Place Aldi operates from 11234
locations all over the world.
Total number of stores is
1900 and also planning to
expand their business more
in US.
The company has in total
560 stores across the world
but in comparison to Aldi It
is less in number. The Asda
stores are Jam packed and
helpful to provide useful
services.
Promotion Aldi don’t spend as much
amount on promotion of its
products. They don't have
any separate department in
Germany. They do
promotional activities such
as launching super buyer’s
offers to its customers in
supermarkets. By giving
attractive discounting price
they grab customer’s
attention. They also have
weekly newsletter named
as Aldi informs. This they
handed to their customers
in stores itself or have mail
them. The company also
uses a marketing strategy
Asda do promotion of
products by newspaper,
media channels and
newspaper in order to
provide customer a
familiarity about their
product (Akbar, Omar and
Wadood, 2017). Various
techniques have been used
by the company to increase
their sales such as sales
promotion. Buy one get one
free such type of offers are
very common in the
company. The company
has also engaged in
sponsorship with SportsAid.

which is swap and save
that makes customers to
switch from their brand and
helps the Aldi to gain
competitive edge.
People Aldi people include
customers, suppliers,
government, communities
and stakeholders (Baker
and Magnini, 2016). Aldi
pays 90% of total health
care costs on their
customers.
Asda have in total of 16000
people working in their
company. They give off the
job and on the job training
to its employees in order to
develop them at every level
stage. They commit to pay
their suppliers in just 14
days. There believe is that
together they can grow
more.
Process Aldi gives sheet layout that
makes product offering
even more easy.. Hence,
customers feel suitable to
select the product by their
own. The company has
larger barcodes that asses
the customer in fast billing
(Baker and Saren, 2016).
Asda is encouraging to its
customers to use
environmental friendly
bags. They told people to
take bags from their home.
Physical Evidence Aldi is known as renowned
brand all over the globe.
This is the only store that
maintains same prices all
over the globe for
The company has stores
and equipment that shows
their physical evidence. In
addition they have website,
logo and brochures

groceries. The company
provides items from their
home brand which is nearly
85% of their own and
remaining is other
recognized brand.
(Charlesworth, 2020).
Lo 3
P4. Evolution of basic marketing plan
Marketing Plan for Aldi
Executive Summary - The study had covered a marketing plan for Aldi. The company
had launched a new product which had called as "Organic Aloe gel sanitizer." This
product had been made by natural extracts. This marketing plan had contained mission,
vision, objectives and goal of company. It had covered segmentation, targeting and
positioning of product. Moreover, it had conducted Swot analysis of Aldi to identify
current opportunities and threats. It had Carried Marketing mix of newly launched
product. Marketing budget has been made. Lastly measures had been given for
evaluation and control.
Aldi vision and mission statement -“Simply ALDI describes the simplicity,
responsibility, and reliability which are the three core motives and are achieved not only
with maintaining standard but also with customer value".
Aldi Objectives and Goals - The main goal of the company is to satisfy the customers
about the quality and quantity of the product they purchased and at the lowest possible
price. Also one of the goals of the company is to use only natural ingredients as far as
possible.
Business strategy
Meaning – It refers to the overall game plan for reaching to the expectations of the
consumers and then turning them into customers of the product or service that company
provides. A marketing strategy consists of customer value, key brand messaging,

targeting customers, etc. There are three types of marketing strategies that are -
 Market penetration - It refers to the successful selling of a product or service in
a target market. It is measured in the terms of amount of sales volume of a good
or service compared to the whole target market of that product (Hanlon, 2019).
Market penetration is known as the key for the growth of the business. This
strategy includes selling the existing products or services to the existing market
in order to obtain high market share.
 Product development - It is a strategy which is based on developing new
products or modifying the existing ones so they appear new, and while offering
those products will increases the attention of customers. These strategies comes
out when there is very little or no opportunity for new growth in a company's
current market. New product development helps in removing the all drawbacks in
the old products.
 Diversification - Diversification is a corporate strategy to enter into the line of
new products or product and new services which will enable the company to
enter into new competitive market if the company is not growing so much in the
existing market. This notion of diversification depends upon the subjective
analysis of the new market and new product. Diversification can in many types
such as brand extension, increasing number of branches, coming with new
product and changing the target market or expanding the target market.
The Aldi company will choose the product development market strategy and this is
because of current trend as the Corona virus disease is spreading, so the company is
going launch organic sanitizers to ensure the safety of people. This product is made
according to the need and requirements of the customer on the basis of current scenario.
SWOT Analysis of Aldi company -
Strengths
 The company has lowest possible price which helps them to survive for a long
period of time.
 The strong ecosystem of the company is one of its biggest strengths as discount
stores are always popular among the consumers.

 High level of customer support works as a strength as the company offers
numerous offers and discounts which attracts the customers.
 A strong product mix establishes a strong base for the company as having a
reputable brand name, pricing policy and promotion techniques makes the
company popular.
Weakness
 Low margins is one of the biggest weakness that is responsible for overall loss of
the company, as the company provides the product at very low price to the
customers this makes the margin very low.
 Poor employees satisfaction is also a weakness as the subordinates are not
satisfied due to lack of healthy working environment and income makes them
dissatisfied with the organization (Stern and Porr, 2017).
 Poor penetration as the stores like Aldi generally provides the discounts and
other offers to high income groups and other groups remains dissatisfied with the
firm.
Opportunity
 The taste and preferences of the customer are changing and growing day by day
which opens the door of first mover advantage for the company and company
can introduce the new product according to grab a big share in the target market.
 Heath awareness is increasing day by day and the company is also starting the
organic production which will be a big opportunity for it (SWOT Analysis, 2020).
Threat
 Competition in the market is considered to be one of the biggest threats that
reduce the customer count of the company. The companies are always in the
search of the opportunity to decrease the customer’s count of the company.
 Also as the trust of the customers for the companies is decreased due the
current spreading of Corona virus disease.
Aldi STP
 Segmenting - It refers to identifying the market to be segmented, identification,
selection and application on the basis of segment selected and development of
profiles. There are two approaches to segmenting a market - a discovery

approach or an analytical approach. Each approach is appropriate to the type of
business and market they are selecting (Fill and Turnbull, 2019). The Aldi
Company must select the segment will more number of health conscious people
as the organic products of the company be most suitable if sold to them. The
segment which the company is choosing must be according to the product they
produce.
 Targeting - It is a process of identifying the most appropriate segment after
analysis each segment, usually the one more profitable for the business is
selected. Also choosing which target market will be best depends upon the
product or service that the company is offering to the consumers. The Aldi
Company will target the market with efficient and potential consumers as poor
sections of the society will not be able to afford the product. Also selling the
product to financially weaker sections with higher discount will not be beneficial,
although there would be a separate counter for them.
 Positioning - positioning is the final process, and one of the most important
stage from business prospective. In this stage the business must assess its
competitive advantage and position itself in the consumers mind on the top.
Overall positioning will provide better value than competitors and communicate
this difference in the most effective way to the consumers (Critchley, 2018). The
company is in an advantageous position that the Aldi Company was the first to
realize the need of organic sanitizers, and can grab a big share as, no other
company is thinking this way and can maintain a group of potential customers.
The company is now enjoying the benefits of first mover advantage.
Marketing Mix
 Product - Aldi is going to launch its new product named as "Organic Aloe gel
sanitizer". This product comes with combined power of natural ingredients such
as Aloe Vera and leaves and Hazel oil. It includes natural extracts such as garlic,
onion and rosemary oil. These ingredients are very rich antioxidant which surely
kills the germs. This helps to protect the skin with properties of natural cleansing
 Price - The Company has used Penetration pricing strategy in which in beginning
the price of this organic Aloe gel sanitizer is very low and later on they increase

its price. It simply means that once they attract large number of audience by
lowering the prices and later on when good customer base has been established
they increase its price. Basically in the beginning the price of this sanitizer is
reasonable (Wilson, 2017).
 Place - Currently this product will be available on official website of Aldi later on
this sanitizer will be available on all the stores of US and UK by the time COViD-
19 influence gets reduced. Once this product has worked in market than later on
it will sale to other countries.
 Promotion - The promotion of this product will be done by Google ads and on
official website of the company. The social media users also have increased.
Thus, the company also does social media promotion so that they can attract
large number of potential customers. In addition to it company will also give
advertisement on mass media.
 People - The people for Aldi are the suppliers and stakeholders in this high time
of Corona virus. Mainly this people have been focused because stakeholders are
the one who do investment to introduced new product in the market. On the other
hand without suppliers this product will not be able to deliver on customers door
steps.
 Process - This Organic Sanitizer will be sale in the recycle bags to the
customers so that it will reduce the harm on environment. By this company also
promotes sustainability development as well as not go against the community
guideline (Nirschl and Steinberg, 2018).
 Physical evidence - Company's brand value, logo and stores itself is a physical
evidence. In addition the physical evidence will be the customer’s order codes
and billing details which will be shown on official website of company while
delivering products on online basis.
Budget for organic sanitizer is as follows -
Description Budget Actual
Marketing research 50 45
Social media advertising 30 28

Mass media advertising 150 150
Website promotion 20 18
Recruitment on freelance 45 40
Recruitment on full time 10,000 9,000
Total 10,295 9281
Evaluation and control - The company will do evaluation by asking customers about
regular feedbacks. They check customer’s feedback and then do improvement in their
products (Folinas and Fotiadis, 2017).

CONCLUSION
It has been summarized that Marketing Essentials refers as doing promotional
activities and use of sales techniques in order to increase the profitability in the firm. It
comprises of marketing mix elements which are crucial to launch a new product in the
market. It has been determined that Aldi also have to advertise and promote its stores
to earn higher profits. It can be said that there is interrelationship between marketing
function and its functional units like HR, Production and Finance. It has been evaluated
that Aldi marketing mix strategies are better in comparison to Asda but it is also a threat
in near future for the firm. Marketing plan has been made for Aldi as firm has launched a
new product named as Organic Aloe gel sanitizer. It has been concluded that this
product surely gave competitive advantage to the company.

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8 things you never knew about Aldi, 2018. [Online]. Available through: <
https://www.insider.com/facts-about-aldi-2018-6>

SWOT Analysis, 2020. [Online]. Available through:<
https://www.mindtools.com/pages/article/newTMC_05.htm>