Aldi Australia: Analysis of Marketing and Management Strategies Report

This report analyzes the marketing strategies employed by Aldi in Australia to maintain its market position and expand its business, particularly in South and West Australia. It focuses on differentiation and positioning strategies, along with online marketing techniques, to adapt to changing consumer needs. Aldi's 'Good Different' marketing approach and consistent low pricing are highlighted as key factors in its success. The report examines Aldi's background, marketing analysis, and strategic marketing options, including the application of the marketing mix. It discusses how Aldi has leveraged its cost-effective layout, promotional campaigns, and sales promotion strategies, such as club cards and buy-one-get-one-free offers, to build brand loyalty and influence consumer behavior. The report concludes that these strategies, especially the pricing advantage, have enabled Aldi to gain market share and create a sustainable presence in the competitive Australian retail environment, while also expanding its operations.

Running head: MARKETING AND MANAGEMENT
Marketing and Management
Name of student
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Executive summary
The main purpose of preparing the report was to analyse the different marketing
strategies that could help Aldi in Australia to sustain in the market and ensure the expansion of
business in South and West Australia. The strategies used in the context of the report had been
differentiation and positioning strategies along with the online marketing strategy that had helped
in keeping pace with the changing needs of customers in the Australian market. The “Good
Different” marketing technique and consistency in keeping the prices of products lower had
further helped the company to stay ahead of other competitors in business. This would also make
the organisation function successfully in the future and move towards a vision of becoming more
profitable and capable of gaining competitive advantage in business.
Content

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s
Introduction......................................................................................................................................5
Background to the company............................................................................................................5
Marketing analysis...........................................................................................................................6
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Introduction
The report is developed to focus on the various important aspects of marketing and
marketing strategies that have been used by Aldi in Australia to sustain in the business
environment by generating more sales revenue and gaining competitive advantage in business.
The report will start with a brief explanation of the company background, conduct the market
analysis and then develop marketing strategies accordingly to remain competitive and profitable
within the business environment. The business organization offers products and services at lower
prices, and thus the focus has been on price reduction related to the marketing strategies. This
will not only help the company to spread awareness among customers regarding the products
made accessible but can even create a good brand image, thereby influencing consumer buying
behaviours as well (Aldi.com.au 2017).
Background to the company
Aldi in Australia is one of the major private retail stores that has remained successful as
one of the global discount supermarket chains in Australia. It has more than 10,000 stores in
more than 18 countries worldwide, and the company has experienced a gross turnover of more
than €50 billion. It was founded by two brothers named Theo and Karl Albrecht and had started
its business operations from the year 1913. The company manages good marketing strategies to
attract a large number of customers and ensure that their needs and requirements are fulfilled as
well. Once it opened its first store in Australia in the year 2001, it had not only contributed
largely to the community and ensured growth in the economy but also had improved the
condition of local business, people’s needs were fulfilled, and more employment scopes and
opportunities had been provided (Beneke et al.2012). The company has delivered good quality

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products at very low prices on a consistent basis, which has enabled customers to keep visiting
the store repeatedly and this increased the sales generated revenue too. The company managed to
work closely with the farmers, suppliers, manufacturers and developed healthy relationships with
them so that they could deliver good quality raw materials and resources. The farmers in
Australia have been provided with better opportunities, and this has reduced the level of
competition in the market as well as made the processes more simplified and convenient
(Gellynck et al. 2012). Aldi manages the flow of income by proving security to the
manufacturers while the company wants to expand its business in Southern Australia and
Western Australia for enhancing the volume of production and keep the demands and
expectations of the consumers fulfilled with ease and effectiveness.
Marketing analysis
To survive in the competitive business environment, it is essential for Aldi in Australia to
ensure that the consumers’ choices are influenced regarding their purchase of products and
services. It is important to determine the things that consumers need to make choices regarding
purchases because it will not only accomplish the business goals and objectives but can keep the
customers satisfied as well. A proper marketing strategy is implemented after analysing the
market conditions to understand the clear goals and objectives and manage effective promotional
activities for attracting and retaining customers (Huettl and Gier 2012). The shopping experience
at Aldi is somewhat different from what the customers have experienced till that time. Though
the company offers products at relatively lower prices, still few problems were faced by the
customers such as the use of cash for managing the coin-operated trolleys within the
organization, stocking up of the products at lower prices in addition to the other popular brands
in the supermarket and display of alcohol within the supermarket (Hutt and Speh 2012).

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Nature of Aldi’s marketing strategy or strategies since it began
Aldi is considered as a reliable and establishes discount supermarket chain that focuses
on the investments done as well as control the costs in business with efficiency. The marketing
strategy has allowed Aldi in Australia to prioritize on the investments made and make the
consumers gain the most of the savings through the purchase of good quality products and
services. Aldi is comparatively smaller than the size of its competitors in business such as
Woolworths, JB Hi-Fi, etc., which maintains a cost-effective layout to manage the packaging and
products display strategy effectively. To enhance brand reputation, the promotional strategies in
business have been followed to maintain equal quality of the products that are similar to the
products presented by rivals in business (Kitapci et al. 2013). The advertising of the "Like
brands" helped spreading awareness among the consumers regarding the quality of products
delivered and the value for money obtained as well. This promotional campaign served as an
effective marketing strategy to engage the target customer segments and influence their buying
behaviours too.
With the help of marketing strategies, Aldi, Australia has managed to gain trust and
loyalty among the stakeholders in business and has influenced the consumer behaviours of
buying as well. The company's taglines and statements have promoted diversity within the
workforce and have even strengthened the traditional competitive advantage in business as well.
This has helped the retail discount supermarket to communicate the messages and information to
the consumers and make them aware of the kinds of products and services delivered and how
those can bring value as well as fulfill their needs and requirements efficiently. During the period
of Christmas, the retail chain supermarket has also resulted in major savings of cost and the use
of print and media advertising have increased since then (Leake, Vaccarello and Ginty 2012).

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Another effective marketing strategy that has been embraced by the company is the sales
promotion strategy where club cards are provided to customers based on which, they can collect
points on each of the purchases made. The discount supermarket chain also offers gifts including
Buy one get one free promotion to boost the sales for a particular range of products and services.
Another sales promotion technique has been the cooperation with manufacturers to manage the
supply of posters, display stands, hoardings that can make more people aware of the products
and make them purchase those frequently from Aldi, Australia. Among all these marketing
strategies, the utilization of pricing advantage strategy is the most effective way to make up more
than 20 percent of the discount supermarket brands. The buying behaviours of consumers have
changed from time to time, and thus price reduction is an effective marketing strategy to appeal
the customers and grab more market share from Woolworths and other retail brands in Australia
(Li and Kannan 2014). The marketing strategies implemented by Aldi in Australia have
influenced the process of delivering the highest quality of products and services at a much lesser
price. The major components of the low pricing of products related to the marketing strategy
include an exclusive range of products by various brands, limited range of products, focus on
what the customers want and apply the price change policies to keep up with the changing
behaviours of customers in the Australia market segments. With the technological advancements,
the online marketing strategies have helped in delivering messages and information regarding
products to the customers easily and allow them to buy the products and services online through
secured payments (Liu and Zhang 2013).
Strategic marketing options for Aldi moving forward
A new business strategy to focus on the marketing techniques has been applied at Aldi,
Australia to move forward successfully and generate more new and existing customers as well.

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The new strategic marketing technique introduced by the company is termed as “Good
Different” which can not only make the organisation survive in the immensely competitive
business environment but will also evaluate the differences between the stores that are set up and
the other traditional supermarket chains all over Australia. According to the manager of Aldi, it
is quite evident that this strategic marketing option will strengthen the key areas of business and
improve the relationships with various stakeholders in business such as suppliers, customers,
investors or shareholders, etc (Miquel-Romero et al. 2014). From the various evidence, it has
been found that the company has gained more than 10 percent of the total amount of
expenditures of the supermarket. Aldi in Australia, to make the marketing strategy successful,
has invested a lot of money to improve the infrastructure of stores and create new formats of
stores for ensuring successful expansion in the Western and Southern Australia. Based on the
responses provided by Tom Daunt, the Chief Executive officer of Aldi, Australia, it could be
understood that after 15 successful years of operations of the company, the company wanted to
expand its business operations in South and Western Australia (Owolabi, Adeleke and Abubakar
2013).
The marketing mix strategy can be applied to determine the wide range of products
available in the market, assess the prices of those, places where those are available and how the
company promotes its products and services to attract new customers. The differentiation of
products strategy has also proved to be useful for Aldi to enter new markets and deliver
extraordinary and great value to its customers, thereby creating good relationships with the
customers, suppliers and support staff too. It also encapsulates ALDI’s business model and will
ensure the supermarket continues to set itself apart from competitors as it expands in Australia
(Payne and Frow 2013). The major thing that differentiates the company products from the

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products of other companies is the lower price at which the products are offered. The unique
focus on permanently keeping the prices of products and services lower has further helped in
saving both money and time for the consumers. Aldi has a market share of 4.2 in Southern
Australia and 3.1 percent market share in Western Australia. Therefore, these strategic marketing
options could enable Aldi to succeed in the future and influence the buying behaviours of
consumers in different Australian market segments too (Peñaloza, Toulouse and Visconti 2013).
Conclusion
The focus of the report was to analyse the strategies and marketing options that could
help in fulfilling the needs and requirements of customers and identify clear goals and objectives
for ensuring good promotional activities. From the report, it could be understood that Aldi,
Australia had been operating in Australia for more than five years and wanted to expand its
business operations and processes in South and West Australia as well. The marketing strategies
included the sales promotion strategy, online marketing strategy and promotions based on new
products to make people aware and influence their buying behaviours too. The positioning and
differentiation marketing strategies could help the company to move forward and create a
sustainable place in the competitive business environment. The marketing mix strategy had been
used as well to analyse the current market scenario and work accordingly to keep the customers
satisfied.

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References
Aldi.com.au. (2017). Discount supermarket offering smarter shopping - ALDI Australia. [online]
Available at: https://www.aldi.com.au/ [Accessed 20 Sep. 2017].
Beneke, J., Hayworth, C., Hobson, R. and Mia, Z., 2012. Examining the effect of retail service
quality dimensions on customer satisfaction and loyalty: The case of the supermarket
shopper. Acta Commercii, 12(1), pp.27-43.
Gellynck, X., Banterle, A., Kühne, B., Carraresi, L. and Stranieri, S., 2012. Market orientation
and marketing management of traditional food producers in the EU. British Food
Journal, 114(4), pp.481-499.
Huettl, V. and Gierl, H., 2012. Visual art in advertising: The effects of utilitarian vs. hedonic
product positioning and price information. Marketing Letters, 23(3), pp.893-904.
Hutt, M.D. and Speh, T.W., 2012. Business marketing management: B2B. Cengage Learning.
Kitapci, O., Taylan Dortyol, I., Yaman, Z. and Gulmez, M., 2013. The paths from service quality
dimensions to customer loyalty: An application on supermarket customers. Management
Research Review, 36(3), pp.239-255.
Leake, W., Vaccarello, L. and Ginty, M., 2012. Complete B2B online marketing. John Wiley &
Sons.
Li, H.A. and Kannan, P.K., 2014, February. Attributing conversions in a multichannel online
marketing environment: An empirical model and a field experiment. American Marketing
Association.

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Liu, Q. and Zhang, D., 2013. Dynamic pricing competition with strategic customers under
vertical product differentiation. Management Science, 59(1), pp.84-101.
Miquel-Romero, M.J., Caplliure-Giner, E.M. and Adame-Sánchez, C., 2014. Relationship
marketing management: Its importance in private label extension. Journal of Business
Research, 67(5), pp.667-672.
Owolabi, O.O., Adeleke, Y.S. and Abubakar, K., 2013. Technology Enabled Customer
Relationship Management in Supermarket Industry in Nigeria. American Journal of Industrial
and Business Management, 3(2), p.222.
Payne, A. and Frow, P., 2013. Strategic customer management: Integrating relationship
marketing and CRM. Cambridge University Press.
Peñaloza, L., Toulouse, N. and Visconti, L.M. eds., 2013. Marketing management: A cultural
perspective.
Yin, Y., Pei, E. and Ranchhod, A., 2013. The shopping experience of older supermarket
consumers. Journal of Enterprise Information Management, 26(4), pp.444-471.