Marketing Report: ALDI's Strategies, Plan, and Analysis

This report provides a comprehensive analysis of ALDI's marketing strategies, focusing on the key roles and responsibilities of marketing functions within the company. It explores how these functions, including distribution, financing, market research, pricing, product and service management, promotion, and selling, relate to ALDI's context and contribute to its competitive advantage. The report examines the application of the marketing mix, comparing ALDI's approach with that of a product-based company, highlighting the importance of the 7Ps in the service industry. Furthermore, it includes a discussion of ALDI's marketing plan, evaluating its effectiveness in achieving business objectives and addressing aspects such as product lifecycle, pricing strategies, distribution channels, and promotional techniques.

Marketing Essentials

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Explaining the key roles and responsibilities of the marketing functions............................1
1.2 Explaining how roles and responsibilities of marketing relate to the ALDI's context..........2
TASK 2............................................................................................................................................4
2.1 Comparing the ways in which different organisation apply the marketing mix to the
marketing planning process to achieve business objective.........................................................4
TASK 3............................................................................................................................................6
3.1 Producing and evaluating the basic marketing plan for ALDI.............................................6
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The marketing world is now more focused on directly to the customer and making the
market wider. Moreover, the field of marketing incorporates understanding of the industry,
bringing all the new products to the activity and developing the new markets as well. The
essentials of marketing include all the points which are important for the success of the
organisation. The basic techniques of marketing, include promotion, branding, positioning
and finding the customer. The present report is based on ALDI which is the leading retail
global discount supermarket chain of UK. In this, report will shed light on the roles and
responsibilities of the marketing related functions associated with the business unit. It plans
out the market in which it has to reach out by applying the marketing mix strategies. It also
entails the manner in which ALDI evaluates and produces basic marketing plan for the
supermarket.
TASK 1
1.1 Explaining the key roles and responsibilities of the marketing functions.
Marketing functions include the purpose of performing the market research,
producing the market plan according to the latest market structure and developing the product
more like the market wants it. Marketing activity plays a vital role in establishing the
relationships between the customers and the organisation. In the business unit, the top level
management develops marketing strategies that needs to be used by the organisation for the
attainment of success (Berkowitz, 2016). Today, almost all the organisations are having their
marketing departments which interacts the most with the customers and public know about
company by them only.
ALDI’s marketing function starts with researching the market which let them know
what the demand of the public is and needs to be done by marketing team. Then they all
develop the existing product according to the market research done. Then the organisation
gets the financing from the different means that are investment and loan or by the personal
finance as well. As lot of money is required to develop the existing product or bring a new
product in the market. Fixing of the price is another task of the marketing team as they need
to know the financial structure of the surrounded areas of the set marketplace. Price refers the
value of the product or service which the company is producing or at what value will it sell
the product.
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Further, another marketing function includes doing promotional activities such as
advertising, direct marketing and telemarketing which in turn helps in enhancing customer
base for the product. Moreover, the role of promotion is to reach out to more and more
customers in the new market by allowing them to know about the product the company is
having. Packaging and the shipping of the product is also necessary by making them
available to all those marketplaces where the company needs to sell the product. The
packaging of the product should be such that the customer gets attracted towards it by
looking the product (Mishra, 2016). Now after promotion the product is ready to be launch in
the marketplace so the marketing team would distribute the product in the set markets for the
sales of the product or service. This helps the organisation to increase the demand and supply
of the product and services by maintain the quality and the quantity of the product.
The most important part of marketing function is of selling the product to the
consumer. Selling of the product is essentials to make profits from the product made by the
company. Selling is always done for the exchange for money it generates the revenue for the
company in return of the fund invested. Sales of the company depend upon the above
maintained all the marketing functions without promoting the product in the market the sales
can't be increased. After selling the product, it is also important for the company to take
feedback from the customers. Through this, company can know what changes needs to be
made at in the product for raising demand as well as productivity and profitability. For
undertake feedback, the company can use the tool of survey and nowadays digital surveys are
of more use to the company.
1.2 Explaining how roles and responsibilities of marketing relate to the ALDI's context.
With the motive to develop sound customer base and for gaining competitive edge
over others ALDI lays emphasis on undertaking marketing practices or functions (Mishra,
2016) Hence, marketing functions of ALDI includes distribution, financing, market research,
pricing, product and service management, promotion and selling. All these functions are
highly significant which in turn develops responsibilities for ALDI to help it sells the product
and making profits.
 Distribution- the word distribution means the sell out or to make the product available
to the customer. Distribution plays the role of providing right goods to right consumers.
As ALDI is having many of its retail outlets all over UK so it provides the goods to its
consumer directly without using the intermediaries between them. Distribution help
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ALDI by both increasing and diversifying the supply and the demand of the goods and
the services and maintain the quantity of the product.
 Financing- finance is providing the funds or capitalizing the enterprise by the means of
investment, loans or by the personal capital as well. ALDI uses the financing to grow
the market, to develop the product, advertising of the goods and services in the market
making and the day to day payments to the suppliers are some of the areas where ALDI
use the finance (Mishra, 2016). The role of financing department is to grow ALDI’s
business and without it, they can't perform the functions in the way they want. ALDI
uses finance to develop effective strategies of marketing. In ALDI, finance also plays the
part of offering alternative methods of payments as loans and crediting to the customers.
 Market research- It focuses on doing regular study of market such as what are the
trends going on in the market. By market research ALDI can know its customers very
well where it is in terms of ascertaining their realistic needs and demands. ALDI has its
own team of market researchers who do this work of researching of the market and find
out the potential customers of its available product and service. Market research play the
role to develop the market of ALDI by selling those products which a customer requires
in that particular area.
 Pricing- This tool of marketing function which help ALDI to sell the product at a fix
rate to the customer it determines the market success and profitability of the product. As
ALDI is having many competitors in the same market so it faces the price competition as
well from them. ALDI must keep the most affordable price of the products so that the
customers can purchase them.
 Product and service management- ALDI needs to manage the product and the
services of the organisation and this is also important role of marketing function. By
marketing ALDI identifies the opportunity to extend the product range and also to launch
existing products into new markets. The after-sale service of ALDI is also included in the
service management of same products.
 Promotion- Such activity or function helps the customers of ALDI to be aware of
what new products the company has launched in recent times. ALDI uses promotional
techniques like advertising, direct marketing; telemarketing and the public relations with
the motive to communicate with customers (Pike, 2015). More customers can be
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attracted by promoting the product in the market by ALDI and thereby they would be
able to attain higher margin.
 Selling- By all the above marketing functions ALDI can now sell the product to the
ultimate customer. Marketing of ALDI support sales by generating the more leads for the
sales team to follow up. ALDI is having the largest sale in the market of retail industries
of about 5% of total sales (Pike, 2015). As by selling only ALDI can make profits and
can grow ore in the market. Selling determine the company's ability to increase the
customer range in the marketplace.

TASK 2
2.1 Comparing the ways in which different organisation apply the marketing mix to the
marketing planning process to achieve business objective.
Marketing mix is the most important part of marketing planning as it help the
company to achieve the set goals or objectives. Marketing mix is the factors which can be
controlled by the company to influence the consumer to purchase the company's product and
avail the services offered by them. It is putting the right product in its correct place, at the
accurate time and at the most affordable price. These are most suitably used in the product
based industries of the market. But for the service based industries the best people selling the
product or service, by promoting the service or product in the foremost way and the physical
presence of the outlet is also of utmost importance (Mishra, 2016). These things help the
company to target the marketplace for its product or service.
The product industries generally consider the concept of traditional marketing mix
which include the 4P's i.e. price, place, product and promotion. While the service industry
takes up three more P's including the price, place, promotion and product which are physical
evidence, people and process as well and known as modern marketing mix. ALDI being the
service based company consider all 7P's and then plan the marketing strategies to achieve the
business goals. But ABC company is the product based company and is considering only the
4P's which are place, product, promotion and price for the business strategies. All are
explained below.
1 Product- this include both product and service of the company. The product is the physical
item which is built or produced or sold by the company to satisfy the need of the customer or
consumer who consume the product (Brassington and Pettitt, 2013). ALDI and ABC produce
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the product which has a certain demand for it in the market if not having the demand then
there is no use of selling the product. The product which ALDI is selling have the certain life
cycle that include the growth phase (when the product is launched in the market), the
maturity phase (when the product has been settled in the market and gaining profits) and then
the sales decline phase (when the product is almost in the last stage and will soon be out of
date).
2 Price- it is the value in terms of money of the product offered by ALDI and ABC or the
cost which will incur by the customer to buy the product. It also refers to the sacrifice the
customer will make to purchase the given product. This generally set the implication of the
company's revenue as after this only ALDI and ABC will be able to measure the performance
(Malhotra, Birks, and Wills,2013). The pricing strategies include market penetration, market
skimming and the neutral pricing. price is very important component of the marketing plan
by determining the profit and survival of both ALDI and ABC.
3 Place- place is defined to as direct and indirect channels to market it is the geographical
distribution which would include the retail or wholesale outlets. It is the physical location
where ALDI and ABC carries out business or the distribute the product of the company.
Place would be convenience for the customer to go and buy the product . The different
distribution strategies which are intensive distribution, exclusive distribution, selective
distribution and franchising.
4 Promotion- it comprised of the elements like sales organisation, relations with the public,
advertising and promoting sales. By promotion ALDI and ABC can boost up the brand image
of the products offered by them. Promotion mainly refers to as the marketing communication
and also include the message strategies used by them. Advertising is the best tool for
promotion which generally include the paid ads on television, radio, print media and now
internet advertising as well. As ALDI and ABC prefer online marketing more than compared
to offline one just like all the other company's nowadays.
ALDI and ABC both of them are using the product, price, place and promotion tools
of the marking mix and achieving the profits but as ALDI being the service based industry it
is also using the physical evidence, people and process as a tool. The 7P's instead of the 4P's
are of much influence to the company as it look after more criteria and the scope is till the
extent of the people working in the organisation (Akbar, Omar and Wadood, 2017). As in the
service industry it is important to have the physical evidence of ALDI without which the
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company will not work. For their customer the customer service is also of much importance,
the treatment of the employees in a good manner directly increases the profit of ALDI. The
system and the process of ALDI also affect the execution of the service provide by ALDI.
ABC does not use all these marketing mix so the customer base of it is limited and also effect
the sales of the product as compared to ALDI.
TASK 3
3.1 Producing and evaluating the basic marketing plan for ALDI
Executive summary
Marketing plan is broad document that outlines the business advertising and
marketing efforts for the coming year. It is a full proof plan that an organisation makes to
achieve the profits for the given year it involves the accomplishing the specific marketing
objectives (Bona, 2017). It includes the such as market objective, segmentation targeting
positioning, then doing the SWOT analysis, market mix, key performance indicator and
competitors. ALDI is planning to launch energy drink in the market and for that it need to
plan first to be able to sustain in the market with so much other competitors.
Marketing objectives
 To enhance market share by attracting more customers.
 To increase the sales of fresh juice by 25% in the upcoming quarter.
The market objective of ALDI is to grow and sustain in the market with the help of
energy drink which will be coming in the market. The goal is to make more and more profits
and to develop the product in other segments as well. With the desired goal ALDI will be
able to remain in the market and to also grow. The objective will not be just limited to the
segment of youngsters who generally prefer the drink but also to them who want to remain
fit. ALDI for the sale of energy drink will do the segmentation of the market into to whom to
sell the product and whom to not. ALDI will divide the market it into segments of customer
who will buy the products or it will target its customer (Pappas, 2017). ALDI will split the
market into the groups who having same characteristics as others. Hence, by placing
emphasis on such specific group of people ALDI would become able to achieve success.
SWOT analysis
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ALDI will be using SWOT analysis to understand in a better way the market
segmentation and also the customer. SWOT analysis means the strengths, weakness,
opportunity and the threats of the company (SWOT Analysis of ALDI. 2017).
 Strengths- it means what are the plus points ALDI is having and how to improve
them in a better manner. Strengths of ALDI include marketing skills which it uses or
the innovation of any product or service.
 Weaknesses- Disability of ALDI in relation to differentiating the product and service
from competitors is considered as weakness (Iancu, and Maier, 2017). The location of
the business also is a matter of the weakness of the company.
 Opportunity- Company has opportunity to expand in the emerging market and
thereby gets benefit from it. Merger or joint ventures can also be the given
opportunity to the firm.
 Threats- the biggest threat is of entry of new competitors in the given marketplace or
the price wars between the existing competitor. They must be having more quality and
innovative products with them for that ALDI also needs to cop-up.
PESTLE analysis
PESTLE analysis of ALDI is also considered while making the marketing plan of the
firm. Moreover, it indicates external factors that have high level of impact on business
position and performance. PESTLE analysis includes the political, economic, social,
technological, legal factor and the environmental factors affecting the business objective.
 POLITICAL FACTOR- After the 2015 UK election the changes were made by the
imposition of shared parental leave (2015) as continues discussion about the extension
of the paternity leave (El-Ansary, 2006). This resulted in the economic impact on
ALDI and the risk increased that the staff would take the company to the tribunal if
not provided the leave.
 ECONOMIC FACTOR- the world was facing the great recession of 2008 that would
be changing the buying behaviour of the customer from supermarket to the low-cost
grocery stores. Thus, economic factor affecting the growth of ALDI to a great extent.
 SOCIAL FACTOR- As UK is filled with ageing people. Thus, firm is required to
offer suitable products or services to such population and thereby get higher benefits.
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TECHNOLOGICAL FACTOR- Now, there is a trend of online and mobile shopping
which is a threat to ALDI as more and more people are attracted towards it.
Marketing strategiesSTP approach
Segmentation
Four bases of segmentation includes demographic (age and income), geographic,
psychographic (personality characteristics and lifestyles) and behavioural (occasion)
(Camusio, 2011.). Demographic include the age and income factor which means that
which age group will mostly prefer the energy drink. As ALDI would be targeting the
young group of the community to sell the energy drink. Psychographic will include
personality characteristics and the lifestyles of the individual or the target market. Energy
drink will be most suitable for the people who want to remain fit and healthy whether of
young age or any other age group. Psychographic segmentation depends mainly on the
lifestyle of the people rather than of age or income.
Targeting: it will target that form of customer who certainly are interested in energy drink
in the morning breakfast.
Positioning: ALDI want to position itself always on the top of the market always and to
be the leading retail outlet
Marketing Mix
Marketing mix also is important to be done by ALDI before the launch of energy
drink in the market. The marketing mix include the all 7P's price, place, promotion, product,
physical evidence, people and process.
 Product- ALDI is planning to introduce energy drink which will boost up the energy
of the people.
 Price-Setting the price of energy drink will be depended upon the targeted market of
ALDI as it has targeted the youngsters group so the price will depend on them. ALDI
know that the youngsters generally are not price conscious so will keep the price
according to them (Fritz, 2013). And also, will consider the price of the available
competitors as they will also affect ALDI's growth in energy drink sale.
 Place-Energy drink will be made available by ALDI in all its retail outlets so that
everyone can get the drink whether segmented by ALDI or not.
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 Promotion- would likely be through online advertising as the youngsters are the
group who are active there. ALDI will also be using other promotional tools like T.V
advertising, radio, print media etc.,
 People- the staff recruitment their training and the development be of main concern of
the management. The staff should know how to hand the complaints of the customer
and how to avoid service failures they must manage the service failures. The
interaction between the customer and the staff also be effective.
 Process- it is the set procedures and flow of activities by which the service is
delivered from the employee to the customer this process is most important. ALDI
should maintain the standard of the quality of process followed by it and its staff.
ALDI can also track the service performance of the team and analysise the default
then rectify them at their own level.
 Physical evidence- all the people involved in the sale of the products at ALDI should
have the full knowledge of the outlets products (Sheehan, 2010) . The employees
should treat all the customer in a very good manner the environment of the store must
be healthy. The management of the team also to be really organised for the smooth
function of ALDI.
For a company like ALDI which have many competitions in the market it is necessary
to define and look over the core competency of the business to help the company grow in
such tough competition. Competency include all the ability of ALDI to do something
successfully and efficiently. Core competency may be defined as the harmonized collection
of the aggregate resource and power which will separate ALDI in the marketplace. Core
competency of ALDI result in the special techniques and the skills which will deliver the best
value of product and service to the customer (Berkowitz, 2016). Core competency always
fulfils three criteria like:
 Providing the potential access to the wide variety of marketplace.
 Significance in the contribution that will perceive the customer and benefits of the
end product and service.
 It will be difficult by the competitors to make out core competency.
It defines the strength by providing the base from where ALDI can grow and lay
down the opportunity in the market and giving the best to the customer. As focus on the price
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and the quality of product and service is the core competency of ALDI. And for regulating
the price ALDI follow strategies that will ensure the price off products and service. Like
having the limited stock but of high and good quality offering these products at a competitive
price.
For the growth and development of ALDI it is important to see who all are the
competitors in the market, what are they doing to do better and how can ALDI compete with
them in the long run competition. For knowing the toughness of the competition, it is
essential that ALDI know its own core competency. The competitors of ALDI are TESCO,
ASDA. Lidl, Netto they all are having the same type of core competency as it is having. But
as ALDI is having the brand image in the market and always provide the wide and the best
range of product which are still lacking behind in the competitors ALDI.
CONCLUSION
From the above it has been concluded that for the company's better performance one
best marketing plan is of utmost importance which will include the strategies, targets, the
marketing mix, the roles and the responsibilities of the management all are equally essentials.
As ALDI uses the marketing planning to achieve the objective also analyses its strength,
weaknesses, business opportunity and the surrounded threats. ALDI identifies the roles and
responsibilities of the marketing function to grow and sustain in the market. Also, the
segmentation of the product that it launches is of importance for the promotional activities
related to the product Receiving the feedback from the customer after selling the product can
help the company to get more market share from the other competitors. Meanwhile, the rules
and the regulation set by the government can affect the sale of any product and the society
also influence ALDI.
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