MKT00720 Assignment: Marketing Strategy Analysis of Aldi Australia

This report provides a comprehensive analysis of Aldi Australia's marketing strategies. It begins with an executive summary and table of contents, followed by an introduction that outlines the report's objectives, which is to analyze Aldi's marketing strategies in the Australian market. The discussion section offers an overview of Aldi, detailing its origins and expansion into Australia. It then delves into a marketing analysis, examining Aldi's vision of providing high-quality products at lower prices, its market-oriented strategy, and its focus on own-brand products. The report discusses Aldi's pricing strategies, competitive advantages, and communication channels. Furthermore, it explores Aldi's marketing strategies since its inception, including its cost-conscious approach, smaller store formats, and the AIDA model. The report also examines Aldi's differentiation focus strategy. The report concludes with strategic marketing options for Aldi moving forward, recommending above-the-line and below-the-line promotional activities, e-commerce techniques, customer feedback mechanisms, loyalty programs, and employee training. The report concludes that Aldi has been successful in the Australian market due to its high-quality products at competitive prices and a customer-centric approach.

Running head: MARKETING STRATEGY ANALYSIS OF ALDI AUSTRALIA
MARKETING STRATEGY ANALYSIS OF ALDI AUSTRALIA
Name of the student
Name of the University
Author note

1MARKETING STRATEGY ANALYSIS OF ALDI AUSTRALIA
Executive Summary
The significant objective of the report is to present the analysis of the strategies of marketing
used by Aldi Australia. The organization is recognized among the major supermarket chains
operative in Australia. In this respect the company must strategize efficient means to reach
out to a larger base of consumers so as to increase its performance and profitability. The
major marketing strategies adopted by the organization in the past will be discussed along
with the evaluation of certain strategies that can be taken up for the future advantage of the
company. In conclusion it has been mentioned how the various strategies adopted by Aldi
Australia like the maintenance of high quality in its products and provisions for competitive
pricing, aids the organization to remain competitive in the market and gain the trust and
loyalty of the customers.

2MARKETING STRATEGY ANALYSIS OF ALDI AUSTRALIA
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Overview of the company......................................................................................................3
Marketing Analysis................................................................................................................4
The Nature of Aldi’s Marketing Strategy since it began.......................................................5
Strategic Marketing Options for Aldi moving forward..........................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8
Appendix..................................................................................................................................10

3MARKETING STRATEGY ANALYSIS OF ALDI AUSTRALIA
Introduction
Marketing strategies refer to the decisions and planning undertaken by a business
organization in order to present its products and services to the prospective consumers (Baker
2014). This also entails the identification of the target groups to which these products and
services can be sold. The main objective of the report is to identify the strategies of Aldi in
the current market situation of Australia so that it can gain an advantage over the rival
companies that are present. It will additionally aid the company in gaining a competitive
advantage in the Australian retail industry so that it can earn a better amount of profit. The
report will highlight the major marketing strategies that needs to be taken up by the company
so that it can help in the maximization of sales and therefore its profitability. The report will
provide a comparison regarding the strategies that has been taken up since its launch and the
strategies that will help the company in becoming successful over the years in the Australian
market.
Discussion
Overview of the company
The company opened its first stores in the year 1913 in a small German town by the
name Essen and the service store gained popularity at a faster rate in the German markets due
to the attractive prices and services that it provided to the customers (Corporate.aldi.us 2019).
The company first launched its outlets in Sydney in Australia and it did not advertise
regarding the products and services that were being provided. The company mainly focused
on selling the local brands instead of the national brands so that the prices can be kept low
that would help in attracting more number of customers (Corporate.aldi.com.au 2019). In the
year 2003, the company had opened its chain in many of the Australian markets and was able

4MARKETING STRATEGY ANALYSIS OF ALDI AUSTRALIA
to gain popularity because of the high quality products that were being offered to the
customers at a competitive price.
Marketing Analysis
The main vision of the company is to provide superior quality of products at lower
prices so that it can result in better savings for the customers. It also guarantees better value
by providing special buys to the customers so that they can be confident of the products that
they are purchasing.
The company follows sales and market oriented strategy so that it can result in higher
amount of revenue generation (Cameron, Sayers, Sacks and Thornton 2015). The orientation
of the market allows the company to provide a diverse range of goods so that it can meet the
current and future demands of the customers. They try to understand the demands and needs
of the customers, which allows them in developing the strategies to meet their expectations.
The company offers own brands to the customers so that it can help them in
controlling the process of production and cost (Aldi.us 2019). It also offers non-food items
such as stationery, electrical goods, clothing range, beauty products and soft tools.
The pricing of the products are kept at a competitive level so that it can attract more
number of customers (Ball et al. 2015). This is due to the fact that the company enjoys a
higher level of bargaining power over its suppliers that allows them in selling the products at
very low prices (Latif and Parker 2014). Another important pricing feature is that the
company offers limited choices to the customers regarding the products so that they can be
able to purchase it at a lower cost.
The company is physically located in all the major places of Australia so that it can
result in attracting more number of customers (Battersby and Peyton 2014). It maintains a
proper level of communication channel so that the customers are given information about the

5MARKETING STRATEGY ANALYSIS OF ALDI AUSTRALIA
products and prices that are being offered to them. This also allows the company in gaining
proper information regarding the products that are available in the market.
The organization provides ‘Super Buys’ to the customers every week so that the
products can be promoted as well. This allows them in clearing their stocks, as the products
are offered at very low prices.
The Nature of Aldi’s Marketing Strategy since it began
Since the main focus of the company is to sell their products at low prices, the
employees within the organization are taught to be cost conscious. This has allowed them in
reducing the costs to a great extent wherever possible. They are also focused in improving
their level of economy by understanding the details of the products. This allowed them in
achieving the minute details of the products so that it can be improved with new ideas and
solutions. The shops of the company are relatively smaller compared to the other
supermarkets. This allows them in saving up the overhead costs and gain maximum profit
from the sale of products.
The company also used to follow the AIDA model (see appendix Figure 1), which is
awareness, interest, desire and action so that it can result in understanding the needs of the
customers and providing them the products at low prices (Hassan, Nadzim and Shiratuddin
2015). The utilization of this model allowed the company in initiating the awareness among
the customers so that they are interested and show the desire in purchasing the products. This
leads to the ultimate action of purchasing the product. This method of communication has
helped the company in promoting the goods and services that are being offered in the
Australian market.
The company also follows the differentiation focus strategy, as the target customers
are from middle class who are more concern of the prices of the products rather than the

6MARKETING STRATEGY ANALYSIS OF ALDI AUSTRALIA
quality (Banker, Mashruwala and Tripathy 2014). The organization is able to attract them by
providing higher quality of products at cheaper prices so that it can create better value for the
price that is being paid by the customers. They also offer special discounts on the product,
which allows them in gaining a competitive advantage over the other firms that are operating
in the market. The discounts given to the customers allows them in increasing their level of
profits due to more number of goods being sold.
Strategic Marketing Options for Aldi moving forward
The company needs to follow above-the-line promotional activity so that it can result
in increasing the level of loyalty among the customers by communicating the necessary
messages. This will allow the company in disbursing the information that are related to the
price and quality of the products (Blakeman 2018). This method of promotional activity will
allow the company in increasing the level of awareness with respect to the brands that are
being offered so that the demands of the products can be increased as well.
The company also needs to use below-the-line promotional channel so that it can gain
maximum of the customers. This promotional tactic will allow the company in increasing its
availability in the social media so that the level of communication with the customers can be
enhanced. Taking proper feedback from the customers who are active on the social media
platforms such as Twitter, Facebook and Instagram will allow the company in developing
their products and services in a better way so as to suit their demands (Trainor, Andzulis,
Rapp and Agnihotri 2014). The customers will also be aware of the new products that are
company is offering in the market along with the price so that they can compare it with other
brands and purchase the better quality products.
The use of proper e-commerce techniques will enable the organization to reach the
customers who are located far from the stores present in Australia. This will enable them in

7MARKETING STRATEGY ANALYSIS OF ALDI AUSTRALIA
expanding their customer base so that the level of profits can be increased to a great extent.
The customers need to have an option to provide feedback for the goods and services that
they are purchasing from the company so that it can enable the organization in developing the
goods according to their needs and demands. This will also result in gaining the trust of the
customers so that they become loyal to the products that are being offered. The use of loyalty
programs and bonuses need to be encouraged within the stores, which will enable the
customers in enjoying a greater deal of discounts after repeated purchases.
The employees need to communicate with the customers so that it can help them in
assisting and gaining proper feedback regarding the products that are being offered. This will
also enable the company to have a friendly approach towards the customers so that they can
be assisted in buying the right kind of products. The employees also need to be given training
so that they can understand the needs and provide proper feedback to the company on a daily
basis from the customers so that it can help in developing the products.
Conclusion
Through the analysis of the aforementioned aspects, it can be concluded that Aldi has
been running successfully in the Australian market due to its better quality of products that
are being offered at a cheaper price. This has resulted in gaining more number of customers
and increasing their level of profits as well. The company creates a positive value among the
customers by offering them greater discounts on the products that are being purchased. This
has also resulted in gaining the trust of the customers, which has resulted in repeated
purchases. The company is conscious regarding the overhead costs and tries to minimize it so
that it can gain maximum profits by selling the goods and services.

8MARKETING STRATEGY ANALYSIS OF ALDI AUSTRALIA
References
Aldi.us (2019). Quality Brands | ALDI US. [online] Aldi.us. Available at:
https://www.aldi.us/en/grocery-goods/quality-brands/ [Accessed 22 Sep. 2019].
Baker, M.J., 2014. Marketing strategy and management. Macmillan International Higher
Education.
Ball, K., McNaughton, S.A., Le, H.N., Gold, L., Ni Mhurchu, C., Abbott, G., Pollard, C. and
Crawford, D., 2015. Influence of price discounts and skill-building strategies on purchase and
consumption of healthy food and beverages: outcomes of the Supermarket Healthy Eating for
Life randomized controlled trial. The American journal of clinical nutrition, 101(5), pp.1055-
1064.
Battersby, J. and Peyton, S., 2014, June. The geography of supermarkets in Cape Town:
Supermarket expansion and food access. In Urban Forum (Vol. 25, No. 2, pp. 153-164).
Springer Netherlands.
Blakeman, R., 2018. Integrated marketing communication: creative strategy from idea to
implementation. Rowman & Littlefield.
Cameron, A.J., Sayers, S.J., Sacks, G. and Thornton, L.E., 2015. Do the foods advertised in
Australian supermarket catalogues reflect national dietary guidelines?. Health promotion
international, 32(1), pp.113-121.
Corporate.aldi.com.au (2019). About ALDI - ALDI Australia. [online] Corporate.aldi.com.au.
Available at: https://corporate.aldi.com.au/en/about-aldi/ [Accessed 22 Sep. 2019].
Corporate.aldi.us (2019). ALDI History | ALDI US. [online] Corporate.aldi.us. Available at:
https://corporate.aldi.us/en/aldi-history/ [Accessed 22 Sep. 2019].

9MARKETING STRATEGY ANALYSIS OF ALDI AUSTRALIA
D. Banker, R., Mashruwala, R. and Tripathy, A., 2014. Does a differentiation strategy lead to
more sustainable financial performance than a cost leadership strategy?. Management
Decision, 52(5), pp.872-896.
Hassan, S., Nadzim, S.Z.A. and Shiratuddin, N., 2015. Strategic use of social media for small
business based on the AIDA model. Procedia-Social and Behavioral Sciences, 172, pp.262-
269.
Latif, S. and Parker, D., 2014. Supply chain and logistics: An Australian perspective.
Management Services, 58(1), pp.20-26.
Trainor, K.J., Andzulis, J.M., Rapp, A. and Agnihotri, R., 2014. Social media technology
usage and customer relationship performance: A capabilities-based examination of social
CRM. Journal of Business Research, 67(6), pp.1201-1208.

10MARKETING STRATEGY ANALYSIS OF ALDI AUSTRALIA
Appendix
Figure 1: AIDA MODEL
Figure 2: ALDI STORE IN AUSTRALIA

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Figure 3: COMPETITIVE PRICING AND DISCOUNTS GIVEN IN ALDI