B.A. Business Studies: ALDI Marketing Management Audit Report

This report presents a comprehensive marketing audit of ALDI, focusing on its 'Expressing Ourselves' campaign. It begins with an introduction to marketing and the company background, followed by a detailed marketing audit. The report includes a SWOT analysis to identify ALDI's strengths, weaknesses, opportunities, and threats, providing insights into its competitive position. It then defines SMART marketing objectives for the campaign, outlining specific, measurable, achievable, relevant, and timely goals. The report analyzes ALDI's marketing mix, encompassing product, price, place, promotion, people, process, and physical evidence. Finally, it addresses customer service, offering recommendations for improvement. The report concludes with a summary of key findings and recommendations to enhance ALDI's marketing effectiveness and achieve its objectives.

B.A. in Business Studies
<ALDI- Marketing Management Audit>
Level 4 – Marketing and Management

Table of Contents
1.0 Introduction................................................................................................................................1
1.1 Background of Company .................................................................................................1
2.0 Task 1.........................................................................................................................................2
2.1 Marketing Audit.....................................................................................................................2
2.2 SWOT Analysis.....................................................................................................................2
2.2.1 SOWT Analysis for ALDI..............................................................................................2
3.0 Task 2.........................................................................................................................................6
3.1 Marketing Objective..............................................................................................................6
3.2 Marketing Objectives for ALDI............................................................................................8
4.0 Task 3.........................................................................................................................................9
4.1 Marketing Mix.......................................................................................................................9
4.2 Importance of Marketing Mix...............................................................................................9
4.3 Marketing Mix of Aldi.........................................................................................................10
5.0 Task 4.......................................................................................................................................12
5.1 Customer Service.................................................................................................................12
5.2 Recommendations for Improvement of Customer service for Aldi....................................13
6.0 Conclusion...............................................................................................................................14
References......................................................................................................................................15
FIGURE 1 SWOT ANALYSIS (THOMPSON, STRICKLAND, GAMBLE AND PETERAF, 2019) 3
FIGURE 2 SWOT MATRIX (SWOT ANALYSIS, 2020) 5
FIGURE 3 SMART OBJECTIVES (ALEXANDER, 2007) 7
FIGURE 4 MARKETING MIX (KOTLER, ARMSTRONG, HARRIS AND HE, 2019) 10

1.0 Introduction
Marketing is an essential part of all the business organisation. It is one of the core functions.
Marketing is the way through which the needs and wants of the people that identified and
satisfied. Marketing management is the way through which all the activities of the marketing are
maintained (Kotler, Armstrong, Harris, and He, 2019). In the following report, as Marketing
Consultant, a marketing campaign for the Aldi will be prepared, which name is 'Expressing
Ourselves.' The duration of the campaign is 12 months. The marketing environment of Aldi will
be audited. SWOT analysis will take place, which will demonstrate the internal and external
factors of Aldi. After that, the primary objectives of the 'Expressing Ourselves' campaign will be
acknowledged. The targets will be SMART objectives.
1.1 Background of the Company
Aldi is one of the leading retailers in the U.K. Founded in Essen, Germany, in 1946. Karl and
Theo Albrecht are the two brothers who founded it by taking over their mothers' shop. Its
headquarters is at Essen, Germany. It is in the 5th position as the top retailers of the U.K. based
with 8.1% market share (U.K.: supermarket market share 2019 | Statista, 2020). It has more than
11000 stores in more than 20 countries.
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2.0 Task 1
2.1 Marketing Audit
Marketing is unique to the core tasks of every organisation. Philip Kotler, who is known as the
father of the marketing defined marketing as the process which satisfies the need and wants of
the people by exchanging goods and services with its monetary value. The entire marketing
process consists of some specific activities. Such as determining customers' needs and desires,
preparing the offering to satisfy the requirements of the clients, communicate the offering, and
analysing the competitors (Kotler, Armstrong, Harris and He, 2019).
To execute the marketing process, Aldi needs to develop a marketing plan, and a market audit is
an essential part of a marketing plan. Marketing audit represents a detailed, systematic study,
review, and understanding of the company marketing environment. It also analyses priorities,
objectives, tactics, concepts for recognising the problematic areas and opportunities. It proposes
an action plan to enhance the marketing efficiency of the company (Groucutt, Leadley and
Forsyth, 2004). There are many marketing Audit tools available for Aldi to use, such as SWOT
evaluation, PESTEL examination, Porter's five forces model (Baker, 2001). The SWOT analysis
used to audit the market of Aldi to help it develop a marketing campaign 'Expressing Ourselves.'
2.2 SWOT Analysis
SWOT analysis is one of the standard tools used by the manager to analyse the situation. It
provides a framework to determines strengths, weaknesses, threats, and opportunities of an
organisation which indicates the competitive position of a company and helps to prepare the
strategy based on the findings (Thompson, Strickland, Gamble and Peteraf, 2019). It analyses the
inside and outside factors of the company to determine the current and future potentials. Using it,
Aldi can overcome the challenges and identify the new opportunities to pursue. One of the
significant objectives of SWOT analysis is to assist the company in making the decisions.
2.2.1 SOWT Analysis for ALDI
SWOT analysis of Aldi given below:
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Figure 1 SWOT Analysis (Thompson, Strickland, Gamble and Peteraf, 2019)
Strengths:
 Aldi has one of the most influential retail distribution networks of the U.K., which helps
it to reach all the potential markets.
 Over the year, Aldi not only strengthened its distributor network but also made it supply
chain stringer. It has a mighty chain of suppliers of raw materials who help it to
overcome any supply chain problem (Aldi SWOT Analysis, 2020).
 Aldi is well-reputed in the U.K. and other countries, which helps it to get the customers
over the competitors. In the last couple of years, it won numerous awards, such as
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Moneywise Best Value Supermarket 2019, GHI Food Awards 2019, Mother and Baby
Awards 2019, Loved by Parents Awards 2019. (ALDI - Awards and Endorsements -
ALDI UK, 2020).
 The overall growth of Aldi is more than any other competitor, such as Tesco, Asda,
Sainsbury. It captured more market share than any other competitor.
Weaknesses:
 Aldi mostly provides value for money products as it is a discount retailer. However, due
to competitive pricing, it must reduce the price at a level where its margin gets incredibly
low and makes more dependent on the sale volume.
 Although the market growth of Aldi is high, its overall market share is still lower than the
other top four industry giants. The market share of Tesco, Sainsbury, Asda, Morrisons,
and Aldi is respectively 27%, 15.4%, 14.9%, 10.1%, and 8.1% (U.K.: supermarket
market share 2019 | Statista, 2020).
 Aldi is a leading retailer in the U.K. However, it is struggling in other countries and
facing challenges outside its core products and business.
 The employee turnover rate is higher than the average industry turnover rate at Aldi.
Opportunities:
 There are many Aldi's products which considered as the best alternative to high-end
products. Most of them were beauty and alcohol products. Aldi can keep making those
products which will create new opportunities for the company (ALDI SWOT Analysis |
Top ALDI Competitors & USP | Brand Analysis | MBA Study. Learn. Share., 2020).
 Overall customers' need and propensity to spend is increasing. Using this, Aldi can
increase its market share by offering new and premium range products to the customers.
 Using technologies can help Aldi to improve its services also it can reduce the job
pressure on the employees.
 Most of the stores ignore higher-income people. Aldi can create a different segment for
these customers with premium quality products and services.
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Threats:
 The growth of online shopping is possessing a threat to retailers. World's leading retailers
such as Walmart, Amazon has been taking over the grocery market of the world. This
created a danger of losing market share to these companies (Aldi SWOT Analysis, 2020).
 Other retailers who are behind Aldi in total market share, such as the cooperative, Lidl,
Waitrose, are growing at a high pace. If this continues, Aldi will end up losing its
position.
Figure 2 SWOT Matrix (SWOT Analysis, 2020)
SWOT Matrix
These are the strategies Aldi can use in its 'Expressing Ourselves' campaign
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S-O Strategies: Using S-O techniques, Aldi will explore the opportunities by using their
strengths. It will pursue the opportunities which it will be able to support by its advantages
(SWOT Analysis, 2020).
W-O Strategies: The weakness is the internal factors of the Aldi. It will be most desirable for
Aldi to minimise its weaknesses. So, it can overcome its shortcomings by pursuing its
opportunities.
S-T Strategies: The threats are external factors that can damage the operation of Aldi. That is
why Aldi must reduce risks. It can use its strengths to reduce its exposure to external threats
(Thompson, Strickland, Gamble, and Peteraf, 2019).
W-T Strategies: These are the most defensive strategies Aldi can take. Aldi can make strategies
to avoid internal weaknesses to make it vulnerable to external threats and cause loss.
3.0 Task 2
3.1 Marketing Objective
Marketing objectives are the outcome that the organisation wants to achieve from its marketing
activities. The purposes prepared, along with the overall organisational and corporate goals.
These objectives are the guidelines for the marketing team of the organisation. The managers
direct the groups according to the purposes and provide necessary information to review and
support them (Kotler and Keller, 2015).
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Figure 3 SMART Objectives (Alexander, 2007)
SMART Objectives
Specific, Measurable, Achievable, Relevant, and Timely objectives, in short, are called SMART
objectives in short (Alexander, 2007). The managers can use this tool can use to plan and achieve
goals. SMART purposes described below.
 Specific: The objectives of Aldi should be adequately defined. It must not contain
anything which will make it difficult to understand and make it ambiguous (Herridge,
2020).
 Measurable: The objectives should be made in a way so that the progress of the
company towards the goal can be measured from time to time.
 Achievable: The goals should not be impossible or unattainable. The company must set
its objectives by keeping its ability in mind (Alexander, 2007).
 Realistic: The objectives must not make, which sounds like a dream. The goals must be
within reach of the company and relevant to the organisational strategy (Thompson,
Strickland, Gamble and Peteraf, 2019).
 Timely: The well-constructed objectives must make on time. It should contain a timeline
with the starting date and the date within which it must achieve.
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3.2 Marketing Objectives for ALDI
These are the SMART objectives for Aldi's 'Expressing Ourselves' campaign, which it will try to
achieve.
1. Now Aldi is in the 5th position in the U.K.'s retailing market with an 8.1% share. Its
closest competitor is Morrisons which market share is 10.1% (U.K.: supermarket market
share 2019 | Statista, 2020). With the new 'Expressing Ourselves' campaign, Aldi will
reach the 4th position in the market by increasing market share by 4% and gain market
share of more than 12% within 1st April 2021
2. Aldi will develop an omnichannel presence with the 'Expressing Ourselves' campaign. It
will enable us to provide products and services simultaneously to the customers using
more than one channel. Using the Omnichannel, the customer will be able to shop and
communicate with Aldi simultaneously. Due to the increasing contagion Coronavirus, it
favoured by the customers to stay home go to the stores at that moment. Omnichannel is
the best way to serve the customer by online channels (Remain at home: instructions for
households with possible Coronavirus (COVID-19) infection, 2020).
3. Due to Brexit, it has become challenging to do business with other European countries. It
also made it challenging for retailers from other countries to carry on its operation in the
U.K. The price of the pound decreased in comparison to other countries. That is why the
products from the U.K. are looking cheap (Inman and Davies, 2020). Aldi will use this to
expand its business in other countries. Aldi has an operation in more than 20 countries
now with more than 11000 stores (Aldi Group - Company Profile, Information, Business
Description, History, Background Information on Aldi Group, 2020).
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4.0 Task 3
4.1 Marketing Mix
An essential part of every marketing plan is the marketing mix. Also known as the 7Ps of
marketing. The marketing mix is the set of actions which the business organisation uses to
identify the customer's need, offer a product to that need, and promote the products to the
customers. Product, price, place, promotion, physical evidence, people, and process (Kotler,
Armstrong, Harris and He, 2019).
Figure 4 Marketing Mix (Kotler, Armstrong, Harris and He, 2019)
4.2 Importance of Marketing Mix
The marketing mix is essential for Aldi for the following reasons:
1. The marketing mix helps the organisation to prepare all the elements of the marketing
mix in the way that each part is compatible with the other. For example, the price of the
products of Aldi should be consistent with the placement of the products. The marketing
mix provides a chain that helps to create a bond among the elements of the mix.Marketi
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