Marketing Functions, Mix, and Planning for ALDI - Report

This report provides a comprehensive analysis of the marketing functions within ALDI, a global supermarket chain. It delves into the roles and responsibilities of marketing professionals, examining how marketing is interlinked with various organizational departments such as HR, IT, Sales, Finance, and R&D. The report further explores the application of the marketing mix (product, price, place, and promotion) by comparing ALDI and LIDL, evaluating the different marketing tactics employed to achieve company objectives. Finally, it culminates in the production and evaluation of a basic marketing plan, designed to cover all elements of the marketing mix. The report highlights the importance of marketing in creating and maintaining a strong brand image, satisfying customer needs, and driving profitability.

MARKETING
ESSENTIAL

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1Role and responsibilities of marketing function-...............................................................1
.........................................................................................................................................................5
P2 Roles and Responsibilities of marketing inter-linked with organisational context...........6
M1 Roles and responsibilities of various marketing function ...............................................8
M2 Relationship between marketing and various organisational department .......................9
D1 Critically evaluate the element of marketing function and how they are connected with
other department of organisation ...........................................................................................9
TASK 2............................................................................................................................................9
P3 Marketing Mix of ALDI and LIDL...................................................................................9
M3 Evaluate different tactics of marketing used in order to achieve company's objectives12
TASK 3..........................................................................................................................................12
P4 Produce basic Marketing-Plan........................................................................................12
M4 Produce detailed marketing Plan ..................................................................................15
D2 Design marketing plan that covers all elements of marketing-mix................................15
CONCLUSION..............................................................................................................................15
REFERENCES .............................................................................................................................16

INTRODUCTION
Marketing is a process which involves buying and selling of goods and services. It
involves 4 P's of marketing which includes product, price, place and promotion. Good are the
tangible products which are offered to the consumers (Berkowitz, 2010). Prices means the the
cost the customer pays for the various goods. Promotion means the different activities to promote
the product. This process involves various integrated marketing communication channels which
helps in promoting of the company which includes advertising, sales promotion, personal selling,
online marketing, public relations, publicity etc. This report is based on ALDI which is global
supermarket chain that mainly deals in providing discounted products to its target customer.
The assignment discusses about various functions of marketing and its roles and
responsibilities in all departments of company. Project talks about the comparison of methods of
applying the marketing mix to accomplish the business goals and objectives. Report discusses
about evaluating the market plan of the company so that firm can satisfy the consumers. This
helps organization in maintaining the good brand image in mind of customers.
TASK 1
P1Role and responsibilities of marketing function-
Marketing refers to various methods and procedures to promote various products of
company. Process involves good manufacturing, production activities with optimum utilization
of resources (Different Functions of Marketing, 2018). This means creation of good and
innovative products with minimum cost. It also includes coordination in various departments
such as human resource, finance, operations and other so that they can produce best goods which
can satisfy customers. They evaluate needs and wants of different consumers and accordingly
produce products. It uses various promotional functions such as advertising, sales promotion,
online marketing, publicity, word of mouth etc. This helps in satisfying the customer needs and
thus increases the profits of company. Different roles and responsibilities of AALDII towards
marketing function is described below-
1. Marketing Information System - It is the process of data gathering, evaluating and
distributing information of marketing so that managers can take relevant decisions
related to product and promotion (Blythe, 2012). Marketer research professional
identifies needs, wants and choices of customers and gives the information to the
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manager of ALDI company. This helps managers to to take relevant decisions such as
creating products according to requirements of customers and promotion of product.
They make plans and procedures to create unique and innovative products which
satisfies the customers. So through it customers can happy and satisfied. This helps in
increasing more revenues of company. So thus organization can create unique position in
the market.
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2. Product and service management - ALDI company tries to manage the goods and
services so that it increases satisfaction level of consumers. Firm make different products
according to needs and preferences of customers. They provide delivery of these goods
in time so that it reduces waiting time of consumers. Company provides various unique
and innovative products through which customers are attracted towards the goods. It
uses various delivery channels to sell the product top customers in less time (Clow and
James, 2013). Firm solve the problems of customers and can exchange the product if
there is any defective goods. This helps in removing doubts from customers and they
give reference to their friends , relatives. This helps in maintaining positive image of
organization in front of consumers.
3. Marketing research - Company evaluates the marketing environment in which it
evaluates the demand of customers and other activities. Firm assess the needs,
preferences and other requirements of different consumers. It also checks the
competitive activities including the price and quality etc. Then after gathering these
information and evaluating them organization can make change in the plans and
programmes. Managers tries to set the price and quality according to the consumers.
They also focuses on the promotional activities such as advertising,sales promotion and
other methods to promote the products. This helps in retaining the existing customers
and can generate new consumers. This helps in increasing the reputation of the company.
4. Financing – Company can manage the sources of funds from internal as well as external
sources. Firm tries that there are no dues left to be paid to big business and entrepreneurs
.This helps in maintaining positive image of company in front of customers as well in the
industry. Managers tries to make good quality of products with least cost. They evaluates
that production and manufacturing department produces products with low expenses of
resources (Desai, 2013). Thus it increases the productivity by reducing the wastage. So
firm can generate more profits in shorter period of time. Thus firm can maintain unique
position in the industry and gives strong competition to other companies.
5. Pricing – Company uses Penetration pricing in which products are offered at lower cost.
Thus it retains existing customers and can gain new consumers. This strategy is done to
promote products in nation as well as in international. Through this method they can
capture many people worldwide (Dibb and Simkin and Hauer, 2011). So this helps in
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increasing reputation of brand in front of all consumers and in the industry. They can
expand and diversify their business in shorter period of time. So due to this it can earn
more profits and can maintain a distinctive position in the market. Thus it organization
can maintaining competitive edge on others
6. Promotion – It is the method of promoting the goods through different methods.
Organization follows segmentation, targeting and positioning strategy. To reach to a
particular group they use of various promotional methods such as advertising,
publicity,sales promotion and online marketing. They created different websites of
company and also do promotion through various applications. So thus many people
become aware of brand in less time. This helps in expansion and widening of the
business. It captures many customers and thus generates more profits. These consumers
give reference to their relatives. So thus it increases the reputation of the business. Thus
it can create a unique position in the market and can give strong competition to other
firms.
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(Source: Different Functions of Marketing, 2018)
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Illustration 1: Marketing Function

P2 Roles and Responsibilities of marketing inter-linked with organisational context
The heart of every organisation success depends upon how they promote their product in
the market place. Marketing umbrella generally comprises of public relation, sales, advertising
and promotional techniques (Jones and Rowley, 2011). The concept of marketing assist business
enterprise in determining the needs and wants of their target customer so that they can fulfil them
effectively. In the absence of marketing, company may offer product and services in industry,
but none of the buyers would know about it. Thus, it become essential for every business concern
to marketing their goods or services so as to inform and attract them. It is not only useful for
promoting the products but it is also beneficial for different departments of ALDI namely
finance, human resource, IT, customer service, research and development etc. Mentioned below
are the detailed explanation of how marketing is inter-related with various departments of
organisation are as follows:
1. Marketing and Human Resource Development: The success and growth of an
organisation rely on the skills, knowledge and competency of their workforce. The main
role of HR Manager is to hire talented personnel who assist in accomplishing the
objective of firm both short and long in an effectual manner. ALDI needs to attract large
number of customer in order to achieve higher sales leads, thus an urge for hiring skilled
and competent personnel arises. HR Professionals knows that employees are normally
considered as the internal customers who contributes significantly in yielding higher
profitability ratios for them. HR Manager of ALDI uses marketing tool so to stimulate the
interest of large number of candidates so that they can apply for vacant position available
in ALDI. The referred company is mainly recruiting people via both Internal and
External Sources. They are operating their business practices on global platform which
makes easier for them to hire personnel internally. ALDI believes that in order to meet
the requirement of target customer it is important to satisfy their employees first as they
are the one who directly deals with them (Lamb, Hair, and McDaniel, 2011). Moreover
the company focuses on hire people that tend to stay for longer duration. They are
promoting current opening via social media, print media and digital media.
2. Marketing and Information Technology Department: In order to take the advantage
of higher competitive edge its is important for an organisation to adopt advance
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technology in their business practices. In today's era, buyers wants to create a relationship
with brands that retain overtime. This relationship does not mean value that product or
services created but they want to trust the brand in context of standing on their values.
And this is not only affecting customers but affecting the employees as well as they need
an inspiring reason that motivates them to work (McDaniel and Gates, 2012). Advance
and Innovative Technology has given more power to consumers in terms of gathering
information about the product or services before going to purchase it from stores. Taking
the advantage of technological advancement, ALDI has launched its mobile application
which makes easier for target customer to select and add items in the cart which
ultimately saves their time and energy. Apart from that, the company has modified its
production process that results in saving the overall operating cost. They are also
promoting their products by the taking the help of social media platform.
3. Marketing and Sales Department: Both sales and marketing is inter-linked with each
other. Company makes product and services in order to earn revenues and with the help
of marketing they transfer it to the end consumer. Higher lead generation often results in
yielding higher revenues and profits and that is only possible with the help of marketing
concept as it deal in attracting large number of customer towards the product and services
of particular enterprise. ALDI'S Sales department act as an intermediary between
customer and production. Generally buyers discuss their review or feedback related to
product with sales manager. They further pass on this information to manufacturing
department and they modify the product as per client's requirement. With the assistance
of different promotional methods, sales manager can forecast the demand for particular
goods and services that aid production manager to produce goods as per the demand in
order to avoid low inventory turnover.
4. Marketing and Finance Department: Marketing and finance are referred as two
essential pillar on whom the entire revenues and profit of firms depends (Mihart, 2012).
The term finance concerned with practicability of project in terms of profit or cost
whereas on the other hand marketing deals with lead generation, advertising, publicity
etc. Without marketing, the company is unable to aware customer about their product
which results in low sales and it further result in minimising the profit. Thus, in order to
avoid such situations it is recommended to promote product and services in an effective
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manner. Being a private firm, ALDI is arranging their most of their funds via equity and
for this marketing plays a crucial role as it advertise about the firm's goodwill among
various shareholders.
5. Marketing and Research and Development (R&D) Department: It has been figured
out that R&D is referred as new marketing tool as it instantly respond to buyer's
behaviour and reaction towards product and services and then modify goods if necessary
as per the requirement of buyers (Papasolomou and Melanthiou, 2012). Almost 85% of
people is having minimum account on social media platform that taken as an advantage
by ALDI. It assist in getting information related with changing needs and desire of target
audience. The referred firm offers their product at discounted rate. With the help of R&D,
ALDI identify the thinking of customers in terms of goods available at cheaper rate.
6. Marketing and Customer Service Department: A business enterprise can earn higher
profits by satisfying their target audience in an effective manner. Companies manufacture
goods and services as per the changing needs and desire of customers. It has been
believed that with the help of marketing, ALDI is able to understand their clients in a
better way. They can easily identify their likes and dislikes that keeps on changing
frequently. Apart from that ALDI is providing 24*7 assistance in terms of handling the
queries of customer. As now a days, if person has an issue or query related to the product
they simply ask on social networking sites. Even ALDI's mobile app is answering the
questions of customers (Silver, 2015)(Wrenn, and Loudon, 2012). In-fact the company
has its own separate team that works on monitoring social networking pages and mobile
app and providing instant reply to its clients that result in retaining them for longer period
of time.
M1 Roles and responsibilities of various marketing function
The concept of marketing used by business enterprise in order to stimulate the interest of
customers and convince them to buy their products and services. Marketing environment deals
with the changing needs and desire of target customer. It is mainly categorise as Internal and
External. Both the factors affects the functioning of an enterprise in an effectual manner. It is
very essential for the company in Various marketing function such as Marketing information
system, market research, financing, promotion, marketing planning etc. aid in accomplishing
both long and shot term objectives in an effectual manner. With the help of different marketing
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function, companies can determine the needs and wants of target audience that keeps changing
frequently. Further it assist in promoting firm's goods and services by using various marketing
channel such as print media, digital media and social media.
M2 Relationship between marketing and various organisational department
Marketing Function Organisational department Relationship
Research and Development HR Department Marketing assist in managing
the functionality of different
departments of organisation
namely human resource.
Promotion Sales Department Each department uses the
concept of marketing in its
own way. They uses
marketing tool so as to aware
customer about the current
opening in the respective
company.
The success of organisation depends upon how well they promote their product and
services among potential buyers (Swenson, Rhoads and Whitlark, 2014)., finance, research and
development, sales and customer service.
D1 Critically evaluate the element of marketing function and how they are connected with other
department of organisation
According to Hauer, (2011) Marketing can be defined as an action of selling goods and
services in the market-place including advertising and marketing-research. Various Functions of
marketing assist in gathering information about the potential buyers concerned with their likes
and dislikes. It is also beneficial for different department of organisation as well. For instance,
R&D Team is taking the help of marketing function in order to collect the data related with
changing needs and desire of customers.
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TASK 2
P3 Marketing Mix of ALDI and LIDL
Marketing-mix can be described as set of various elements that influence the buying
behaviour of target audience. It mainly consists of price, product, place, promotion, physical
evidence, process and people. Here the two chosen organisation is ALDI and LIDL. The
marketing mix of these two companies are as follows:
Basis ALDI LIDL
Product ALDI is offering food products
at an affordable range to large
number of customer. These
products are mainly sourced
from suppliers and then
branded as ALDI's product.
However, the company keeps
on changing and experimenting
with their non-food products.
LIDL is offering the same
product as other super market
does. The only difference is
they offers product with
different brand names. In-fact
they company is offering
similar product as ALDI i.e.
they are offering grocery and
household product to its target
customer.
Place ALDI is operating their
business practices all across the
globe. Currently the company is
having 8000 stores in more than
18 countries. It has been figured
out that almost every week a
brand new store opens in
Britain.. Other than its physical
presence, they have their own
website as well mobile
application.
LIDL is operating their
business practices mainly in
Europe and UK. They also
operate in various segments of
supermarket depending upon
the country in which they are
dealing in. Their business
model focuses on delivering
goods in minimum time-frame
and also ensures that high level
of inventory is maintained
throughout the year.
Promotion ALDI is spending negligible The company is promoting
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amount for advertising their
products in the marketplace. In-
fact in their home country the
company is not having
marketing department. In
countries like UK, Australian,
US they do promote their goods
via print media, social media
and electronic media.
their product mainly via store
promotion. These promotion
techniques mainly include
offer like one on one or buy
one get one free. The firm does
not have any loyalty schemes
because they believes that their
discounted prices are enough
to attract the large pool of
customers. But with changing
world scenario, the company is
now focusing on using social
media platform in order to
attract the large pool of
customers.
People Employees of ALDI does not
assist customer in selection of
product, thus saving time and
energy of both customer and
employees.
LIDL is attracting their
workers by providing them
attractive salary's and better
training and development so
that they can effectively fulfil
the requirement of target
audience. This motivates their
employees and retain them for
longer period. Thus promoting
loyalty of employees.
Physical Evidence ALDI has gained the popularity
for simple business practices,
global pricing and
standardization.
The majority of their store
layout is traditional and linear.
This assist customer in finding
the product of their choice in
easy and simple manner. This
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often results in saving the time
and energy of both worker and
buyers. Employees can utilize
their spare time in any other
productive activity such as
putting barcodes on products.
Price ALDI possess strong customer
ground as they offer higher
quality product at cheaper price
in their own name which rivals
firms are not doing. And for its
non-food items, company is
following the strategy of loss
leader pricing which attracts
large number of customer by its
discounted price.
LIDL is having smart pricing
strategies that gives them the
benefit of higher competitive
edge. They are mainly offering
their product at cheaper or
discounted rate. They have
created image of offering
private labels products in the
eyes of customer.
Process ALDI is famous for its sheer
layout which makes easier and
simple for customer to find
product as per the needs.
The main process is to buy and
sell products as many as they
can on best possible cheaper or
discounted rate. Just like,
ALDI, the referred firm is also
not involving customer in any
of their procedure or
processes.
M3 Evaluate different tactics of marketing used in order to achieve company's objectives
Marketing-mix can be defined as a set of tactics used by an organisation to promote its
goods and services among potential buyers. It compromises of 7 elements namely product, price,
place, physical evidence, process, promotion and place (Thomas, 2011). Marketing acts a
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pathway through which company achieves its both long and short term objective effectively and
efficiently.
TASK 3
P4 Produce basic Marketing-Plan
Company Overview:
ALDI is a leading supermarket chain that offers products to large number of customer on
discounted or cheaper rate as compared to any other supermarket. The company is currently
operating in more than 18 countries with over 10,000 store all across the globe (Wirtz, 2012).
They mainly deals in providing product food and non-food items to its target audience.
Vision and Mission Statement:
Vision: To alter the grocery and household sector with specific business model that aims at
providing products of best quality at discounted rate.
Mission: Guarantees top quality of goods at lower prices.
STP Approach:
Segmenting Customers are looking out to buy grocery or household product at
competitive rate.
Targeting Households Groups
Positioning They have gained the popularity of private labels, thus enabling
customer to imagine that they are buying products of high quality.
Competitor Analysis:
Their main competitor is LIDL, ASDA
Marketing Budget:
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 3000 6000 8000 10000 12000
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Investment 13000 20000 25000 12000
Total 3000 19000 28000 35000 24000
Marketing outlay
Promotion 4000 2000 3000 4000 2000
sales publicity 4000 4000 5000 3000 3000
Direct selling 4000 3000 4000 3500 4500
Total 12000 9000 12000 10500 9500
Controlling and Monitoring:
At this step, company monitors that all proposed activities and task are carrying out in an
effective manner or not. If not, they develops corrective actions in order to correct or eliminate
those errors so as to avoid any future contingency or uncertainty (Stephenson, 2014). This stage
ensures whether the activities frame by marketing manner are effective enough or not for
accomplishing long term objectives.
Marketing Mix
7P's of marketing Description
Product: Referred firm also deals in fresh vegetable and
fruit, beauty and healthy products, stationary,
clothes and household products.
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Place: They layout of their stores is simple. They buy
product in bulk quality and store it in their
warehouses
Price: For its food items they have usually adopted
unit pricing strategies that enables their
customer to distinguish their products from
rivalry firm.
Physical Evidence: This the only grocery store which maintains
standard price for all their product all across
the globe.
Promotion: They mostly promote their product via “Super
Buys” offers which lasts till the availability of
last piece of stock or inventory.
Process: The company puts large barcodes on its
products which makes easier the process
product identification.
People: This is mainly possible because of its
systematic store layout which makes easier of
person to find the product of their choices.
SWOT Analysis:
Strength
 Serve best quality of goods
 Strong market presence in Germany
with more than 2500 stores.
 Operating cost is low
 Offers product at discounted or cheaper
price.
Weakness
 Relatively small market presence in
other countries as compared to rivalry
firms.
 Negative view point of customers in
terms of low rated product possess bad
quality.
 Low customer attraction
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Opportunities
 Need to spend more in promotional
activities.
 Can expand their business practices in
the developing economies like Asia,
Africa etc.
Threats
 High competition level.
 Does not cater “complete shopping
experience” to its customers .
M4 Produce detailed marketing Plan
The foundation of marketing plan is its marketing strategy throughout the year. It is a
document that mainly outlines business marketing and advertising efforts for the coming year. It
describes the tactics or strategies concerned with accomplishing firm's objective within provided
time-frame. It provide information related with its vision and mission, marketing mix, STP
approach, budget, monitoring and controlling etc. Its main purpose is to provide direction
towards attaining business goal in most prominent manner. With the help of marketing plan, the
company can easily identify its strength, weakness, threats or opportunities.
D2 Design marketing plan that covers all elements of marketing-mix
According to Ormord, (2014) Marketing Plan blueprints the future marketing and
advertising strategies of the company. This document assist the company to deal with future
uncertainty in an appropriate manner. Moreover, it describes how the company is aiming to hold
the advantage of higher competitive edge by effectively using all the 7 elements of marketing
mix together and prepare long term strategies that serve as a base for retaining customer for
longer duration.
CONCLUSION
As per the above mentioned report it can be concluded that the concept of marketing
plays vital role towards the organisational success and growth. It enables the company to
stimulate the interest of buyers and attract them towards their product and services. With the help
of marketing tool, business enterprise can gain competitive edge in the marketplace over their
rivals. Elements of marketing-mix enables the firm to promote their brand in an effective and
efficient manner as it influence the customers buying or purchasing decision. Marketing
umbrella generally comprises of public relation, promotion and sales that aid in accomplishing
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business target and goal within the specified time-frame. Marketing Plan generally outlines the
entire marketing and advertising efforts for the future period. With the help of marketing plan,
organisation can strategically make decisions concerned with future goals in an effective manner.
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