Aldi's Marketing Management: TOWS Analysis, Objectives & Strategies

This report provides a comprehensive analysis of Aldi's marketing strategy, focusing on its TOWS analysis, marketing objectives, and marketing mix. The TOWS analysis evaluates Aldi's internal strengths and weaknesses alongside external opportunities and threats, providing a strategic framework....Read More

MARKETING
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Tows analysis..............................................................................................................................1
Objectives....................................................................................................................................4
Marketing Mix............................................................................................................................5
Proposal to enhance customer service level................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing is the combination of different factor which looks at influence customer to buy
the product of the company. Aldi is the common brand of two German family-owned discount
supermarket chains with over 10,000 stores in 20 countries. This report explain TOWS analysis
of organization and objective of Aldi. After that the report explains the marketing mix and
proposal to achieve the objective and customer level satisfaction respectively in regards to new
campaign “express ourself”.
MAIN BODY
Tows analysis
TOWS analysis is the framework which is used in the organization to analysis the
internal position of the business and trying to fix a relationship with different opportunity and
threat which is present in front of the organization in long run of a business.
INTERNAL FACTOR
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STRENGTH WEAKNESSES
OPPOUTUNITY Biggest strength of Aldi
in the market is that they used to
follow the low pricing strategy,
which help organization in seeing
good amount of customer toward
the store of the company.
Organization is having good
opportunity to adopt new
technology such as automation
packaging technology from the
market. This will help company
in saving the cost of packaging in
the organization. This will help
company in staying with the
same strategy in the competitive
market for longer period of time,
Low profit margin is the
biggest weakness of an organization,
As Explained that organization used
to sell their product at low price in
the organization, this eventually
used to has a greater impact on the
profit margin of the company.
(Gottfried amd et.al., 2018)
Adopting new operational
management technology in an
organization may help company in
getting cost advantage in an
organization. This may help Aldi in
improving the profit margin of the
company as low pricing used to
increase the customer base but at
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this will help company in
defending the different
competitor challenges in future as
well.
Another strength of the
Company is the Product mix of
the company. As organization
used to offer good variety of the
product in the market to attract
the eye of the customer
(Kulshrestha and Puri, 2017).
Aldi is having good sort of
opportunity to expand their
business to new market by
expanding there business to new
developing market, this will help
company in improving the
customer base of the company
and may result in enhancing
profit margin of an organization.
some point impact the profit margin
of the company. Opportunity of
adopting new technology can help
company in maximizing the profit
for some level in the organization.
Another marketing
weakness for Aldi is that
organization is not able to attract the
eye of the customer group which
belong to higher income group as a
result organization has to
compromise some sort of profit
margin in the market. As a result
expanding their business to many
different developing market may
help company in seeing higher
income customer also. As in
developing market, customer from
all the income group used to demand
variety of different product in the
market.
THREATS Aldi used to operate in
highly competitive market. As
there are many big organization
which used to operate such as
Asda and Tesco Plc.. As a result
Aldi used to dealt with variety of
different competitive force which
different organization used to
offer in the market. So it creates a
good sort of threat for the
There are many different
type of legal laws and regulation
which need to be compiled in the
operation of the business to carry out
different outcome of the business.
This eventually used to impact the
efficiency of the business as
organization is already facing good
amount of competition in the market
and also compiling different activity
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company to run the operation of
the business in the market. As
organization used to operate on
the low pricing strategy it help
organization in getting best result
out of the market.. As this help
company in attracting the eye of
the customer toward the product
of the company in the market.
This may reduce the profit
margin of the business in long
run but will help company in
managing the customer base of
the company.
Customer preference is
another big threat for the
company, as it has been seen in
the recent past that the customer
preference of all the customer in
the market used to change on the
regular basis. At the same time as
company is having good product
mix in the market, it used to help
organization in enhancing the
level of customer needs and
wants in an organization. As all
the customer in the market
always looks for the different
variant product to satisfy their
need in the market.
of the business with the legal laws
and regulation will eventually
impact the efficiency of the business
and also may impact position of the
business in the competitive market
(Kowalik and Klimecka-Tatar,
2017).
Another threat which is in
front of the business is that market
area coverage of the business is not
that great in the domestic as well in
the global market. As a result
organization has to suffer in term of
building as good as other company
financial position. So Aldi has to
take corrective action to improve the
market area coverage of the
company in long run of the business.
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Objectives
Objective 1: “To improve the customer base of the company by 25 percent in coming one year”
As marketing audit of an organization shows that organization is able to maintain a good
customer base but do not able to attract the eye of the customer falling in higher income range.
For the same reason Aldi in coming one year will try to attract the eye of the same customer
group and will look to improve the customer base of the company by 25 percent in coming one
year. At the same time organization will also looks to maintaining the current customer base of
the company in the market. As they can work as a good referral tool for the business to build
good customer base of the company in the market (Datta, Ailawadi and Van Heerde, 2017).
Objective 2: “To enhance the sales of the company by 20 percent in coming one year”
Aldi is looking to improve the sales of the company. As marketing audit of the company
shows that the organization used to operate with the strategy of low pricing strategy in the
market, this eventually used to impact the revenue of the business in negative way in the
organization. As a result to improve the revenue of the company organization is looking to
improve the sales of the company. As the new campaign title i.e. “Express Our-self” Used to
highlights that organization has made different efforts to express themselves in the product of the
company to satisfy consumer need in the market. As organization will look to adopt new
technology to improve the product mix of organization. This will eventually help company in
offering better offering to consumer in the organization to satisfy there need in the market.
Objective 3: “ To build good brand-awareness of the company in the market in coming one
year”
Aldi is looking to build good brand awareness of the company in the market. As
marketing audit of the organization highlights the organization is dealing in highly competitive
market. So it is very important for Aldi to build a brand-awareness in the organization so that all
the customer in the market are aware about the different offering of the company. This will
eventually help the company in getting competitive advantage in the market as if consumer in the
organization are more aware about the different offering of the company they will eventually
drive themselves to consume the product of the company.
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Marketing Mix
Marketing Mix is the model in the organization which used to identify the different element of
marketing mix in the organization. In simple words it is the set of the marketing tool which can
be used by the organization to achieve the marketing objective of the business (Marketing Mix,
2018).
Product: Aldi has to make sure that they used to bring variety of the different changes in
the product line of the organization. As objective of Campaign highlights that the organization is
looking to improve the sales and customer satisfaction for the organization. Product of the
company is the best option in front of the organization to achieve the objective of the business.
As audit has also highlights that organization is already having good product mix, organization
with the help of the new technology can develop a new product in the market or can brought
innovation in the current product of the company to attract the eye of the customer toward the
product of the organization. Organization also will look to bring more higher range product with
improved quality so that they can also able to attract the eye of the customer base belonging to
higher income level as in current scenario organization is not able to attract the customer from
that group of customer base (Blut, Teller and Floh, 2018). This will also highlights the tag line of
the campaign that we are expressing our-self with the help of the different offering of the
company in the market.
Price Mix: Aldi has to continue with the same pricing strategy in the market, as
organization is getting good sort of result from that strategy in the market. As organization used
to offer the product of the company in the market by keeping the price of the product at low. This
eventually used to help the organization in getting competitive advantage. Aldi can also look to
adopt screaming pricing strategy in an organization. In this strategy the organization has to make
sure that they used to launch the new or innovative product in the market at the low price but
after seeing the result of the product organization can increase the price of the product to
maximize the profit margin in the organization.
Promotion: Aldi in current scenario uses the domestic channel such as TV advertisement
and News paper advertisement to promote the product of the company in the market. Aldi also
uses the social media platform also. Aldi has to invest more number of resources toward
promotion with the help of the social media platform. Reason behind the same is identified that
as organization is looking to improve the brand awareness of the company. Social media
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platform will help the company in touching large number of customer together in the market as
compare to the other marketing platform. As number of social media user is to good to be
targeted by the company. Also Aldi will be promoting the product of the company with the help
of the campaign tagline “Express Our-self” this will help company in passing on the another
thing through which customer can recognize the product of the company in the market.
Place: Aldi has to make sure that they used to target domestic market of the UK for the
new campaign of the company “Express ourself”. Reason behind the same is that there is still a
good market left for the organization to be covered in the domestic circuit as well. After seeing
the result in domestic market, organization can look to enter into global market as well. Aldi
should use direct as well as indirect channel to sell the product of the company, as it will help
company in touching more number of customer in the market which will help the company in
improving the sales of the company in long run of the business (Wu and Li, 2018).
Packaging: Aldi also has to make sure that they used to adopt new technology in the
organization for improving the packaging of the company. As Adopting new technology can help
company in saving good amount of the cost by lowering down the cost of packaging in the
organization. This will eventually provide good support to the company to offer the product at
the lower rate in the organization, this will eventually help company in increasing the sale of the
company as well.
People: Aldi will be providing the training to the employee in the organization to
improve the skill set possess by them to overcome the different difficulty faced by them in the
organization. Generally organization will look to hire the employee with multiple skill set in the
organization. Reason behind the same it will help company in saving recruitment cost of the
company. Organization will also pay good sort of wages to the employee in the organization, so
that they feel motivated in the organization to carry out different operation of the business.
Physical Evidence: Aldi will be promoting the campaign of the company in the name
and brand logo of the Company which is already being register with trademark agency. This will
eventually help consumer in identifying the product of the company and also they will find it
easy to distinguish between the product of the Aldi and other company. This will help company
in achieving the brand awareness and sales objective of the business in long run.
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Proposal to enhance customer service level
There are many different ways through which organization can improve the level of customer
service in the campaign “Express Our-self”. As customer service level is one of the biggest
factor behind the success or failure of campaign in an organization. Some ways through which
organization can improve level of customer service in the market are as follows:
Training about market research: It is one of the best way through which Aldi can
improve the level of customer service in an organization (Wilson and et.al., 2016). In this
organization has to make sure that they used to provide good training to the employee in the
organization about the way they can conduct the market research in the market. This will help
the organization in understanding the need and wants of different customer in the market and on
the basis of the same organization can plan different activity in such a way that it help
organization in satisfying the need of the customer proficiently in an market. This will eventually
help customer in getting what they want from the market. This will eventually help the company
in improving the level of customer service level from organizational end.
Better connectivity: It is another way through which organization can improve the level
of customer service in the market. For this organization has to make sure that they are using both
direct and indirect channel to distribute the product of the company in the market. This will
eventually improves the level of customer service in the market. As customer of the firm will
find it easy to get the product of the company at a go in the market (Xu and et.al., 2017). This
will eventually help the company in enhancing the customer service which is provided by the
company. This will somewhat impact the profit margin of the company in the long run of the
business but will help the company in enhancing level of customer service in an organization.
Aldi can join hands with the other small retailer in the market to sell the product of the company
in the market. This will help the organization in getting good connectivity in the market to
improve the customer service level in the organization.
Product Variant: It is another way through which organization can improve the level of
customer service in the organization. In this organization has to make sure that they used to offer
the good amount of and good variant of product in the organization. This will eventually help the
company in improving the level of customer satisfaction in the organization, as all the employee
in the organization always looks to have a different variety of the product to satisfy need in the
market. Reason behind the same is that product is the only element which used to represent the
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offering of the company in the market. So providing good variant of the product in the market
will eventually help the company in improving the level of the customer service for the Aldi.
Value: Offering good variant of the product is not enough for the organization.
Organization also has to make sure that they used to offer the value to the customer in the
market. As all the customer always look to have a quality of the product in the market but at the
same time at a price they can afford to buy the product of the company.
Promotion: It is another way through which organization can improve the level of
customer service in an organization. In this organization has to plan the different promotional
activity of the business in such a way that it help company in communicating clear vision and
mission of the company in the market (Cook, 2017). This will help company in getting good
amount of trust from the customer side and also customer will find it easy to understand the
different offering of the company in better way. This will help the company in improving the
level of customer service level in the market. As customer are more clear about the product they
are looking to consume in the market.
Communication: This is the another way through which organization can enhance the
level of customer service level in the organization. In this organization has to make the different
decision in the organization to fix a good amount of communication with the customer in the
organization. This will help the organization in getting better idea of the customer mind and also
it will help the organization in building good trust with the customer. This will pass on the
message to the customer that organization used to care about their need and wants in the market
and used to plan different activity accordingly in the organization.
CONCLUSION
Above report summarized that organization is doing well in the market but in some area
regarding expansion and profit margin company is lacking behind. To overcome the same report
has summarized the objective of organization and different action through which organization
can overcome the same in the market.
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REFERENCES
Books and Journal
Gottfried, O amd et.al., 2018. SWOT-AHP-TOWS analysis of private investment behavior in the
Chinese biogas sector. Journal of Cleaner Production. 184. pp.632-647.
Kulshrestha, S. and Puri, P., 2017. Tows Analysis for Strategic Choice of Business Opportunity
and Sustainable Growth of Small Businesses. PACIFIC BUSINESS REVIEW
INTERNATIONAL. 10(5). pp.144-152.
Kowalik, K. and Klimecka-Tatar, D., 2017. SWOT-TOWS analysis as a planning tool of process
improvement based on PDCA cycle in service enterprise. Zeszyty Naukowe. Quality.
Production. Improvement.
Datta, H., Ailawadi, K. L. and Van Heerde, H.J., 2017. How well does consumer-based brand
equity align with sales-based brand equity and marketing-mix response?. Journal of
Marketing. 81(3). pp.1-20.
Blut, M., Teller, C. and Floh, A., 2018. Testing retail marketing-mix effects on patronage: A
meta-analysis. Journal of Retailing. 94(2). pp.113-135.
Wu, Y. L. and Li, E. Y., 2018. Marketing mix, customer value, and customer loyalty in social
commerce. Internet Research.
Wilson and et.al., 2016. Services marketing: Integrating customer focus across the firm.
Xu, A and et.al., 2017, May. A new chatbot for customer service on social media. In
Proceedings of the 2017 CHI Conference on Human Factors in Computing Systems (pp.
3506-3510).
Cook, S., 2017. Measuring customer service effectiveness. Routledge.
ONLINE
Marketing Mix. 2018 [ONLINE]. Available through:
<https://economictimes.indiatimes.com/definition/marketing-mix>.
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