Marketing Management Report: An Analysis of Aldi's Strategies

This report provides a comprehensive marketing analysis of Aldi, a German discount supermarket chain. It begins with an introduction to marketing management principles and their application to Aldi, followed by a market audit including a TOWS analysis to assess Aldi's strengths, weaknesses, opportunities, and threats. The report then outlines SMART business objectives, including increasing sales, footfall, and positive customer reviews, with detailed explanations of each objective's criteria. A key component is an examination of Aldi's marketing mix, covering product, price, place, promotion, process, and people strategies, tailored to achieve the set objectives. Finally, the report delves into measures of customer satisfaction, concluding with a summary of the key findings and recommendations. The report is structured to provide a thorough understanding of Aldi's marketing efforts and strategic planning.

Marketing
Management

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Market audit of Aldi...........................................................................................................................3
TASK 2.......................................................................................................................................................6
P2 Finding and setting smart business objectives....................................................................................6
TASK 3.......................................................................................................................................................8
P3 Marketing mix of Aldi........................................................................................................................8
TASK 4.....................................................................................................................................................10
P4 Measures of customer satisfaction...................................................................................................10
CONCLUSION.........................................................................................................................................12
REFERENCES..........................................................................................................................................13

INTRODUCTION
Marketing management connotes the planning, directing and controlling the procedure of
promotion and advertisement of specific product or service by a business enterprise. In this
report, principles and concepts of marketing management is applied on Aldi. Aldi is a German
discount supermarket chain. It is a family business split in two parts Aldi Nord and Aldi Sud. It
was founded in the year 1946 by two brothers Karl Albrecht and Theo Albrecht. The report
includes the statement and justification of marketing objective according to SMART model. The
report covers explanation of principles and common practice of marketing audits. The report also
includes assessment of Aldi competitive position using TOWS matrix. The report contains
marketing plan of 12 months (Kotler, and et. Al., 2018)
.
TASK 1
P1 Market audit of Aldi
Marketing Audit
Marketing audit is an analysis of internal and external marketing environment of business
enterprise. It comprises of all elements of marketing such as strategy, tactics, positioning, target

market, advertisement media and pitching process. It is used to find out the areas of
improvement, loophole in marketing plan, issue and recommended plan of actions.
TOWS analysis
TOWS analysis is performed to understand the external threats and opportunities that
come with the existing internal weaknesses and strengths. These factors are thoroughly studied to
create a marketing framework that produces the best results when implemented at Aldi(Keegan,
2017)
.
TOWS matrix of Aldi
Aldi Strengths Weaknesses
1. Effective utilization of
the channels
2. Brand position
1. Research and
development
2. Less diversified team
Opportunities 1. Online presence-
updated website
2. E-commerce
3. Social media
4. Seasonal deals
Threats 1. Competitors
2. Online media
3. Suppliers
1. New entrants
2. Exchange rates
Strengths: Aldi uses the marketing media channels wisely. It sends promotional emails, posts
regularly on social media accounts, engage in public relations activities. Among the sea of strong
competitors, Aldi positions itself as a brand that provides high quality products in fewer prices
than its competitors. It also uses advertising campaign strategies like ‘Like Brands’ to attract
prospective customers (Deepak, and Jeyakumar, 2019)
1. .
2. Weaknesses: Aldi is investing less than recommended resources on the research and
development. It is important to understand the needs and desires of the audience to before
exposing any product promotion in front of them. Any strategy that is not based on the
expectations of the audience end up as failure wasting the time and the money of the

brand. Most of the team members working at Aldi are the native citizens. Audience
observes and form perception about a brand. This brand perception helps in determining
the brand loyalty in customers. Audience is more likely to shop in an environment where
they feel inclusive and respected.
3. Opportunities: the internet is a contemporary medium for marketing. It has never been
this simple and economic to reach to the audience. It gives an opportunity to send the
message across a wide audience as well as keep a check on what audience thinks of the
brands and the experience they have with the brand. It’s a two way media with endless
possibility for creativity. The world is changing and online shopping has a very important
role to play in it. In todays fast pace world, the customers want as much ease as they can
get in terms of saving time and energy. More and more brands are adapting to e-
commerce. There is an opportunity to introduce and promote Aldi’s e-commerce along
with its traditional services. Aldi uses a variety of social media channels like Facebook,
twitter, YouTube and Pinterest. Everyday new viral worthy content is generated on social
media. Aldi can take the advantage of first-on-the-matter strategy to increase the posts
circulation among the audience. People are likely to expect deals during the holidays like
thanksgiving, Christmas, etc. With the sales being the maximum during the holiday
season, Aldi can take the opportunity cross sell its products with lucrative deals. This
approach can be beneficial in observing the admiration towards each product and their
success in the sales (Shaw, 2016).
4. Threats: Retails stores such as Walmart, Best Buy, etc. play as strong competitors
against Aldi. These stores are higher in the fight for maximum market share. In addition
to the convention retailers, brands like Amazon are gradually moving to acquire Aldi’s
current and potential audience. There are more people on the internet than ever. Similar
brands promoting the same services online come with a threat of the message being lost
in the clutter. However, this is assuming if the strategy is similar to that of the similar
brands. A number of suppliers have reduced in the previous years, increasing the
bargaining power of the remaining suppliers. This could lead to the increase in supply
acquisition cost which affects the overall profit affecting the marketing budget. the
services provided by brands such as Aldi are less likely to become obsolete thus
attracting new entrants in the industry, these new entrants serve as a threat to the market

share and are to be considering while creating exclusively creative marketing strategies.
Along with selling locally, Aldi also has business across the border while the supply still
being local. This transaction however profitable has a risk of being affected by exchange
rates and other global economic events.
Explanation of four quadrants
1. Strengths-Opportunities: As Aldi is good in digital marketing of their products
which shows that IT infrastructure of firm is very good therefore it can also
leverage the opportunity of dynamic and interactive website. Aldi good
positioning as provider of good quality commodities in fewer prices will
definitely bring success in electronic commerce.
2. Strengths-Threats: Aldi effectively utilizes marketing channels which bring a
balance between revenue and advertisement expenditure. Company is beating
competitors with its effective marketing activities. Bargaining power of suppliers
is increasing but Aldi strong positioning would discourage suppliers to withdraw
their supplies (Homburg, 2016).
3. Weaknesses-Opportunities: Organization can create questionnaire and circulate
in social media in order gain insight of consumers taste and preferences.
Customer relationship with employees is not good. It can be improved by offering
deals to customers in special occasion.
4. Weaknesses-Threats: Company does invest sufficient money in research and
development. Thus threat of new entrants can become severe. Firm is required to
invest money in R&D. Organization needs to combat threat of fluctuating
exchange rate.
TASK 2
P2 Finding and setting smart business objectives
SMART Business Objectives

SMART business objectives are specific, measurable, achievable, and relevant and time
bound. SMART is an acronym of five words. Aldi supermarket chain is required to drive
objectives from above TOWS analysis. The three SMART marketing objectives of Aldi are
given below:-
1. Aldi supermarket is aiming to increase its sales by 30% within the tenure of one year.
2. Firm second objective is to increase footfall in the stores by 20% with the period of 6
months (Bagozzi, and et. Al., 2018).
3. Company want to increase positive customer reviews by 50% within the tenure of 12
months.
SMART criteria objectives:-
Explanation of first objective
As Aldi supermarket chain is aiming to increase its sales by 30% within the tenure of one
year therefore company will focus on pitching consumers. Objective is specific because it
emphasis on selling maximum number of products to customers. It is measurable because firm
can maintain record of number of sales happens throughout the year. It is achievable because
organization can achieve desired increment in sales by little extra effort. It is relevant because
increase will enhance growth of the company. It is time bound because firm is firm have to
complete this mission in one year (Quelch, 2017).
Explanation of second objective
Organization second aim is to increase the customer visits in physical stores of Aldi
supermarket chain. The objective is specific because it emphasis on attracting large number of
customers to the store no matter whether they purchase product or leave bare handed. It is
measurable because managers of stores can measure the number of prospective customer visiting
the store on regular basis. It is achievable because firm can accomplish this goal by posting
persuasive advertisement or by giving seasonal deals to attract more customers. It is relevant
because boost in footfall will enhance brand equity and profitability of the organization. It is time
bounded because deadline has been set of 6 months.
Explanation of third objective

Company third objective is to increase the positive customer reviews by 50%. It is
specific because firm will emphasis on maximum customer satisfaction. The objective is
measurable because marketers can calculate average rating and quantity of positive reviews on
the third party website. It is achievable because organization can achieve this objective by
delivering good quality products along with good after sales services. It is relevant because
increasing word of mouth publicity will encourage other people to buy that product thus sales
will accelerate. The goal is time bounded because company needs to accomplish it in one year
(Järvinen, and Taiminen, 2016).
TASK 3
P3 Marketing mix of Aldi
Marketing Mix
Marketing mix is a package which contains all marketing element of a product of the
company to make sure that right product will reach to right place in right price. Marketing mix
compose of seven components which are product, price, place, promotion, physical evidence,
people and process. Marketing mix of Aldi for attainment of set objectives is given below:-
Product: It refers to the goods and Services Company is delivering to their potential
customers. It is often concerned with the strategy company is adopting relating to the product.
Product of the Aldi is its services that company is offering in form of supermarket. Firm is
providing all the materials of household needs to customers under one roof. The strategy that
organization will utilize to accomplish the desired objectives is to make proclaimed one day of
week as the cheapest day on which all the products would be sold on heavy discount (Foroudi,
and et. Al., 2017) (.
Price: It connotes the price on which company is selling its core product. It mainly
defines pricing strategy that firm is using to lure customers. It can be market penetration, price
skimming and premium pricing. Aldi supermarket will sell its products on competent prices.
Organization will use competitive pricing strategy. Price will be low enough to increase sales
and boost footfall. It will eventually help in gaining positive reviews. Thus brand equity of the
product will increase. Corporate image of the company would also enhance.

Place: It implies the place where customers avail the product. In case of Aldi product and
services will be available in the existing supermarket. Company had been established their stores
in heart of the city. Sales unit are easily visible to public because of crowded location. People
can buy groceries from supermarket located in the market area (Johnsen, 2018).
Promotion: Company will advertise their services on online and offline channels. Firm
will use digital means of marketing. Aldi will launch ‘Express Yourself’’ campaign. Campaign
will be customer centric. Organization will concentrate on fulfilling the desires of customers.
Campaign will launch on social media mainly Facebook and Instagram. Aldi will advertise their
goods and services on social media, search engine marketing, mobile marketing and YouTube
commercial. Organization will promote its products on newspaper, hoarding, banner and
billboards in offline platform.
Process: It refers to the procedure of delivering products to the final customers. It is often
related to supply chain system of the particular business enterprise. Aldi is a supermarket chain
and operate in retail segment of supply chain system. It sells other company’s products to large
number of customers. It aggregates the commodities of different companies and sell them to
customers. It caters to the domestic needs of final consumers. Company purchase goods directly
from the factory and sell them to customer in cheap prices. There is no wholesaler in between.
Firm purchases grocery items in very large quantity and sell them to customers in small units.
Bulk purchases and elimination of middle man make business very lucrative (Möller, and
Parvinen, 2015).
People: It refers to the employees and labours involve successful closing of sale. This
component of marketing mix is concerned with the customer handling process of employees. For
the achievement of desired SMART objectives Aldi is required to provide training and
development to workers of the stores. Company will conduct a training programme in which
sales trainee will enhance their soft skills. Firm needs to make employees proficient in customer
handling.
Physical Evidence: It implies the proof of product existence. Physical evidence of Aldi
service will be the unique of catalogue and brand logo. Catalogue and logo of the brand will be
unique design and structure which provide an aroma of weekend shopping.

TASK 4
P4 Measures of customer satisfaction
Importance of retail customer serviceGreat customer service leads to customer
satisfaction which then leads to customer loyalty.Customer service in this sector includes
everything that can help the customers have a great experience with the brand. Right from one on
one interaction with the customers to carefully observing their buying patterns falls under smart
customer service. However great the products and the services are, if the customer services
offered by the brand is not up to the mark the customers are likely to switch brands. Pleasant
shopping experience and good customer service is appreciated as much as the core products or
services offered.
Apart from the team members who wear the tag ‘how may I help you?’, every single person
associated with the brand must adhere to the established customer service standards. The driver,
the gatekeeper, the checkout person, the stocking personnel, the managers, the CEO all have the
equal responsibility into making the brand more likable and trustworthy (Hüttner, 2018).
To form anoutcome oriented customer service strategy, it is important to understand the current
perception of the customer about the brand. While analyzing the same one must try to find the
answers to the important questions like, what do the customers associate the brand with? How
loyal are the customers when in comes to other similar businesses? How would the customer
define the brand if they were asked to personify the brand? How often do they interact with this
personified brand? What are the most appreciated aspects according to them? What are the most
disliked factors associated with the brand? And the list goes on. It is also important to recognize
in what medium do the target audience engage themselves the most- social media, television,
newspapers, etc.
To provide the most thoughtful services to the customers it is important to think like the
customers. The above mentioned questions can help in creating the strategies that solve
customers existing problems rather than just blindly exposing them with unserviceable
promotions.The data can be collected through the methods of surveys, observation, feedback,
social media engagement, website visits and sales.
Once the planned strategy is executed it is also important to track the key performance indicators
for future reference as well as to apply any changes it may require. Some of the important key
performance metrics to acknowledge are average sales, application of coupons or deals offered,
average daily traffic count, average buying time, most sold products and the time period during
which the most sales are observed.
Proposal for improvement in customer service

Compassion, patience and consistency: Employees is required to keep their mind calm
while dealing with annoying customers. Customer will do cross questioning with workers and do
lots of chats. Employees must know the art of dealing with them and render the similar level of
service all the time.
the weak points of services. Company is required to take measures to overcome weaknesses.
Firm needs to highlight the good points mentioned in feedback as testimonials to attract more
customers.
Acknowledge reviews: Company is required to give reply to all negative reviews. They
should apologize for negative reviews. Firm needs to write thank you for positive reviews given
by customers.
Sales promotions: Firm can improve its customer service by sales promotions.
Organization is requires to give discount voucher, loyalty cash back, reward points and so on.
Company needs to retain customer by giving discount coupons that can be redeemed only in Aldi
supermarket.
Product placement: Grocery items should be arrange in very systematic manner. All
products should be in the reach of customer hands. All the should be kept separate. Commodities
should be visible in the eye of consumers.
Multiple counters: There should be more than one point of sales counter so that
customer would not stand in a long queue.
Flexible payment options: There should be multiple payment options in the stores.
Company should accept debit card, credit cards, wallet, Unified Payment Interface along with
cash. There should be flexibility in payment mode.
Social media analysis: It is essential to keep an eye on the likes and dislikes of
customers. Firm should post social media campaign. Marketers should use social media analytics
to look into the insight of consumer taste and preferences. They should analysis the demography,
geography and psychographic segmentation of prospective customers. Demography includes
income, age, gender, occupation, life stage and education. Geography includes the regions and

areas. Socio cultural segmentation covers culture, values and belief. Lastly the psychography
includes mindset, lifestyle, likes and dislikes.
Corporate Social Responsibility: Firm needs to keep aside some portion of money on
charitable purpose. Organization should proclaim that some portion of its profit will spend in
corporate social responsibility. Aldi would invest in CSR activities such as poor children
education and nature conservation. Company will donate 2% of profit in charity which brings a
sense of moral satisfaction in customers. Thus customer will purchase more and more products.
Customer satisfaction will boost significantly. In this way company improve its customer
service.
CONCLUSION
From the above file it has been concluded that company have some strengths from
which opportunities can be leveraged. Company have weaknesses which should be
overcome. Opportunities can reduce weaknesses strength can combat threats.
Company set three smart objectives. Marketing mix plays crucial role in success of
the firm. Firm can improve customer service in several ways.