Marketing Essentials Report: ALDI's Strategies and Evaluation

This report provides a comprehensive analysis of marketing essentials, using ALDI as a case study. It begins with an introduction to marketing concepts and then delves into the roles and responsibilities of marketing functions, emphasizing strategic planning, marketing information systems, consumer analysis, market research, advertising, promotion, and brand equity. The report then examines how marketing functions relate to the organizational context, including the interplay with production, finance, and human resource departments, as well as business-to-business and business-to-consumer relationships. The core of the report compares the marketing mix elements (product, price, place, promotion, people, process, physical evidence) of ALDI with those of TESCO, highlighting pricing strategies and consumer loyalty. Finally, the report evaluates ALDI's marketing plan using the SOSTAC model, covering situation analysis, objectives, strategy, tactics, action, and control. The report draws on various marketing concepts and models, providing a detailed understanding of marketing principles and their application in a real-world context.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Roles and responsibilities of marketing functions.................................................................1
P2 Roles and responsibilities of marketing relate to organisational context..............................2
TASK 2............................................................................................................................................4
P3 Comparison of marketing mix to marketing planning process .............................................4
TASK 3............................................................................................................................................9
P4 Evaluation of marketing plan.................................................................................................9
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing essentials are elaborated with the use of advertising, taste and preferences are
analysed of consumers and the quality that are provided to the consumers are detailed in this
report. The marketing department coordinates their relation with the other staff of ALDI
organisation is detailed in this report (Armstrong and et.al., 2015). With the use of sostac and
swot pestle analysis and also focusing on marketing strategies and tools of 7p's are considered in
this report. The evaluation is provided on plans of market considering to ALDI is detailed in this
report.
TASK 1
P1 Roles and responsibilities of marketing functions.
There are major roles and responsibilities that are performed by marketing manager for
the benefit of organisation. It is very crucial to manage the market by following the process of
planning till the execution of various needs and concepts of marketing. The involvements of
pricing, promotions, distribution and sales can be termed as concepts of marketing or marketing
concepts. These concepts help the manager to target audience at large to achieve the objectives
of organisation (Huang and Sarigöllü, 2014). The following are the roles and responsibilities of
marketing that are detailed in this report as follows.
 Marketing strategies: This is the basic and initial organisational role and responsibility
that manager performs by framing strategies, planning for the organisation. The needs of
organisation and target of consumers should be well determined to know about the needs
and to provide the services accordingly. The planning and strategies creates the effective
balance by distributing the network effectively and efficiently. The performance is well
coordinated for fulfilling the needs and demands of consumers.
 Marketing information system: The information should be provided to consumers
regarding various factors like planning, product, modifications and implementations and
the techniques to control the strategies of market (Liu and et.al., 2017). The distribution
network plays a prominent role to grab the proper knowledge of market which results in
effective performance.
 Analysing taste and preferences of consumer: The marketing team of ALDI enables
the organisation with knowledge regarding the taste and preferences of consumer which
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enables the department of production to produce goods and services that meet the
demand of the consumer.
 Research of market: One of the prominent role is performed by marketing team of
ALDI with the help of market research is effective execution and fulfilling need of
consumer (Fan, Lau and Zhao, 2015). The research of market conditions enable the
manager to act accordingly. It also provides knowledge about the substitutes that are
already exist in market and enables the manager to compare the price, product, quality
and know the best out of it. With this knowledge manager can also modify the products
accordingly.
 Advertising: The another important factor is advertising as it enable the consumer to
know about nuances in production of product that are going to be distribute in market.
Effective advertising promotes the products in the minds of the consumer with positive
effects.
 Promotion: After accomplishment of production process the focus is given by marketing
team of ALDI for promoting products and services (Tomczak, Reinecke and Kuss,
2018). With the special arrangements and launch of product hits the minds of consumer
with positive results to purchase it. There are various techniques and tactics that are
performed by the marketing team of ALDI for effective performances that result in
positive response from consumers. The promotion must be such impactful to change the
minds of the consumer.
 Monitoring environment of market: By performing all the roles and responsibilities, the
another crucial factor is knowledge about environment of marketplace. The marketing
team of ALDI acquired the knowledge of market by knowing about the flow of goods
and services and the quality that are served and demanded by consumers. This knowledge
enables marketing team to make modifications and implementations in case if needed.
 Brand equity: The name of ALDI creates curiosity among the consumers as, they know
about the quality of goods and services that are provided by them. Therefore, marketing
team of ALDI enables the consumer to make aware about the new generation of product
with its launching details (Pavlou and Stewart, 2015). Here, also the reputation of ALDI
gets increased and creates a strong value brand among the consumers.
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P2 Roles and responsibilities of marketing relate to organisational context.
Marketing is the important factor that are performed by marketing team of ALDI as, it
encompasses the whole organisation. For the long and effective running of organisation they
have to meet and fulfil the needs and demand of consumer. By maintaining some planned
strategies and efficiently performing in terms of coping with the other departments of
organisation desired results can be achieved b y ALDI. The following are the departments that
are performs efficiently with marketing team (Hanssens and et.al., 2014).
 Marketing and production department: The marketing team of ALDI enables the
production department with knowledge of current state mind of consumers. This current
position provides the production department to perform accordingly by producing goods
and services in the premises of ALDI. This production department also focus on taste and
preferences while producing products to meet the expectations of consumers. The
relationship between marketing team and production department should be smooth and
cooperative to accomplish the desired results by providing goods to consumers.
 Marketing and finance department: The marketing team of ALID perform effectively
with the help of finance department as funds are the crucial thing that are used for
processing of work. Without funds and capital marketing manager cannot effectively
perform. The department of finance provides budget to marketing manager or team as per
their needs in searching of details and knowledge of consumers or market current
conditions. Also, the marketing team performs their functions with in the provided budget
which enables the finance department to manage the affairs of organisation. As, they
have to generate funds to other department of organisations also, for the purpose of
production till the execution of goods (Bahadir, Bharadwaj and Srivastava, 2015).
 Marketing and human resource department: For the skills and staffing levels,
marketing team of ALDI maintains positive relation with human resource department as
they help in research and developing new ideas by effective staffing of trained and skilled
employees also, targets of production are concluded and creation of ambitious competent
team takes place. This can be possible if the human resource department effectively takes
part in recruitment and selection process.
 Marketing and sales department: To make the product reach to the consumers the sales
department plays and vital role in organisation. They effectively take part in distributing
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the products and services to the consumer. Sales department decides about the price of
the product which enables the organisation to earn decided profit accordingly (Helm and
Gritsch, 2014).
 Business to business: The relationship between two business apart from commerce are
termed as business to business. In this business individuals are not involved and business
is performed on wholesale basis. Variations are made while selling as they are not sold to
individuals and consumers are also excluded.
 Business to consumer: In this, goods and services of ALDI are sold directly to
consumers apart from retailers. Transactions are taken place directly between the
business to consumers.
 Marketing process: PR Smith's SOSTAC enabled ALDI marketing team with
beneficiary performance while executing. The sostac is a model for planning with
excellence.
Situation: ALDI got known about the situation of being position.
Objectives: ALDI well understood the aims and objectives that are to be performed.
Strategy: The tricks and strategies are set for achievement of results in terms of better.
Tactics: The application of method of strategies are known which affect positively to get that.
Action: Plan of execution is coordinated for the betterment of marketing team.
Control: The decided activities are executes and controlled accordingly.
TASK 2
P3 Comparison of marketing mix to marketing planning process
Marketing mix : To increase the sales, various strategies are performed and used by the
ALDI organisation to create awareness among the public is known as marketing. Whereas,
marketing mix is the crucial part of marketing plan (Sinapuelas, Wang and Bohlmann, 2015).
All the elements that are crucial are taken into consideration are termed as marketing tools that
helps the ALDI that to improve the strategies and execution of products effectively which
involves product, price, place, promotion, people, process, physical evidence. The following are
the marketing mix that are detailed below in this report with comparison to TESCO.
Marketing mix
tools
ALDI TESCO
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Product With the help of marketing mix food
products are produced and provided to
consumer at affordable prices comparing to
other organisation. As they produce
themselves the cost of production is
effectively managed and controlled by
ALDI and sold to the consumers at very
cheap prices comparing to other super
markets. Also, the stock of beverages and
health products are managed effectively
with including products like clothes,
stationery and electronic products and many
more, which encouraged the consumers to
remain sticking to ALDI instead of any
other supermarkets. Also, they are the
largest retailer of wine in germany.
TESCO is a supermarket in
UK deals with the variety of
products from household,
accessories, electronics, food
and beverages, clothings etc.,
with the help of marketing mix
organisation achieved success
with certain tactics and
strategies. TESCO also
expanded itself in online
marketing, with providing
them free delivery of goods
and services at their door step
of consumers and providing
free downloads of music
around 40,000 of goods that
displayed in retail stores. Also,
different choices are provided
to consumers with substitutes
of brands, local productions
and food in international
cuisine.
price Consumers are ALDI are loyal due to the
cheaper price of the product with maintaining
high quality, as the competitors of ALDI
organisation does not provide the same
(Gabriel, and Lenin, 2016). There are certain
pricing policies that are opted by ALDI
organisation to attract the consumers at large.
The pricing policies are unit pricing strategy
by which groceries can be compared by
Comparing to other
organisation TESCO
concentrates in maintaining
low price for the product even
if they undergo loss. They are
not profit oriented as other
organisation. They focus more
on the satisfaction of the
consumers by which they can
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consumers easily. Then market penetration
which charge low price for the products that
are new in the market which gains large in
terms of increase in quantity product.
Competitive pricing: by this ALDI buy goods
at large to sell in lower prices to the
consumer for their benefits (What is PR
Smith's SOSTAC® marketing planning
model and how do you use it, 2016).
Psychological pricing: a very little
differences in pricing are generated
compared to other organisations which
attracts the minds of consumer. Very
intelligently the price is managed by
minimum difference for attracting the
consumer at large. Last is loss leader
pricing: For the attention of consumer ALDI
concentrated on offering cheap prices that
helps in generating more new consumers
including the existing one's and they can
make up foregone profits.
gain profit in terms of selling
more products and services at
low price. The economies of
scale are measured by
TESCO's happy consumers
and they run the premises
effectively without changing
the quality and price of the
goods and services. The
consumers remain loyal as the
low price for the quality based
product are made available
which encourages the
customers to purchase goods
and services from TESCO.
This method and technique of
organisation lead the others to
remain behind with success
(Mintz and et.al., 2016).
place There are approximately 8000 stores in
almost 18 countries. Not only this, every
week ALDI is commencing a store in Britain.
To provide the services to consumer at
minimum cost the layout of store is
maintained simple. With managing the
warehouses bulk of products are stored
effectively and quality of product is
maintained. Also, online facilities are
provided by which consumers can access the
There are variation in
channels of supply that are
processed by TESCO
comparing to other
organisations. The stores are
spread widely across nations.
The channels of distribution
are online and offline as well
provided to the consumers as
per their demand. The forum
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details and availability of product in the
nearest store (Festa and et,.al., 2016).
of offline has six different
stores in the name of TESCO
and so on. The difference is all
the consumers doesn't get the
expectations fulfilled and
TESCO cannot open store sat
every lane in society. Hence
smaller stores are made for
easy operations.
promotion Cost saving strategy is claimed the amount
is invested for the purpose of promotion by
which marketing department are avoided
with investing in promotions out of which
ALDI earned lots of profit with effective
communication about the products and
services of ALDI (Kraak and et.al., 2017).
With the help of marketing
mix promotion are made by
TESCO for the products
provides low price which is the
biggest advantage, as it is
different from the chains of
super market. In order to gain
maximum profit for the
product the cost of the brand
are reduced to attract the
consumers in terms of
promoting products by means
of advertising on television,
sponsorship is arranged, also
events are conducted that
focusing on charity and
discounts are provided to get
the focus of consumer. This
promotion process also add
new consumers with existing
consumers.
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People Consumer service of ALDI is low comparing
to competitors as there were absence of
employees in the super markets. For the
purpose of billing ALDI perform transactions
through computers by scanning which
discourages appointing employees. As the
need occurs ALDI has to provide training for
the employees in terms of bringing
effectiveness in performance (Bathmanathan
and Rajadurai, 2017). By this way the sales
are made faster ultimately resulting in
increase in sales.
With the help of assistance in
sales success is greatly
performed by TESCO. The
loyalty of employees and
contribution of effectiveness
brings out the result. The
loyalty of employees and
consumers are gained by
TESCO as they bare the loss to
provide quality based products
to consumers.
process The number of employees are reduced due to
the processing is simplified with tracing of
barcode of products which brings the
effectiveness in billing and employees do not
create hindrance in terms of waiting for
terms. And the price of brands reduce the
confusions among consumers while selecting
products. For the quicker identification of
products ALDI maintains the barcode for the
product (Patil and Bach, 2017). The products
with high quality are maintained with limited
price which makes the smooth processing of
organisation also consumer has variety of
products with their close substitute and
differencing in prices helps in providing
comparison ion terms of weight, quality and
quantity.
The processing are done
offline as the barriers are nit
created by weak network or
any other issues. The products
are rendered online as well as
offline. With the help of
skilled and trained employees
rapid processing are done by
meeting the needs of the
consumer. Which also enable
the organisation of TESCO to
handle the employees and
consumers effectively by
focusing on the issues and
barriers in performance of
services. Rapid billing services
are provided for the
satisfaction of consumers and
the happy consumers perform
8

loyalty towards TESCO by
buying products and services
from them. The process of
advertising, branding of
strategies and analysis of
market conditions with
knowing the current affairs of
market are processed
effectively and efficiently.
Physical
evidence
Up to 85% of stock are managed by ALDI
with their own products while other 15% are
stored with recognised brands. Globally, the
business is maintained simple with
standardization and pricing globally. This
standardization enables to sell the products
with 30% by selling in the same price
throughout the 18 countries where stores are
located (Marketing and its relationship with
other business activities, 2018). Also, the
groceries are maintained throughout the
world which helps in covering marketing
mix.
There are many competitors to
TESCO but the amount that
are spent on these stores are
needed on polish. The stores
are maintained clean and
hygiene which enables the
consumer to get attracted. The
products are very easy to find
and navigate as the stores
details are provided both
online and offline. The
products are stored in such a
way by which the need of the
consumer can be fulfilled.
Also, consumers find very
easier form to operate. Offers
are provided ad store if well
coordinated and maintained
by protecting and allocating
the financial resources of
TESCO (Ofosu, 2016). For
removing hindrance and issues
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in terms of searching products
and services the website is also
provided to the consumers by
which they can operate
effectively and efficiently.
TASK 3
P4 Evaluation of marketing plan.
The marketing plan can be evaluated in terms of elaborating SWOT, PESTLE analysis,
objectives of marketing, mission and goals of marketing, marketing strategies, marketing
program monitoring and measurement techniques are detailed in this report as follows (Khan,
2014).
Mission: Aldi has mission to grow their operations and functions to reach all areas of
global market. Furthermore, they also determine activities to deal for qualitative products and
services.
Vision: Furthermore, the company has mission to increase their number of physical store
to deal with successful operations and functions. In this context, Aldi ascertained their operations
to increase number of customers from global market.
Number of sales: In addition to this, number of sales in 2015 is 11.5696 billion pound. In
all over the world, the company deals with 7600 stores so that their sales continuously increasing
in systematic manner.
Income and expenditure: In the UK, Aldi get high loss which fall around 17% in the
year of 2016. The enterprise stated that fall in operating margin create appropriate results in
systematic manner. Investing new stores and distribution centre geared for future growth in
positive context. Supermarket also responding to shoppers demand that develop number of items
from 1500 to 1800.
Target market: Aldi target their customers on the basis of demographic characteristics.
Therefore, it includes several elements such as gender, age, education, occupation, socio
economic status, etc. On the basis of attitude, the chose organisation contains health and fitness,
food, family and home, etc. (Aldi Customers Profile, 2018).
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Promotional tool: In order to promote functions and operations of Aldi, it can be stated
that there are different consideration included to promote effective results. For instance,
advertisement, social media promotion, etc.
SWOT analysis
 Strength: The strength of ALDI is quality based products are served with low prices and
successfully running of 2500 stores with low cost for operations.
 Weakness: Not wider than other brands, with few chains of stores impact globally and
also, low quality items are provided.
 Opportunities: Increase the investments to promote the organisations and also expand
into developing countries.
 Threats: Consumers may not get complete shopping experience, as other retailers have
different sku's at large. Private label brands can be tossed away by strong brands.
PESTEL analysis:
 Political : ALDI is situated across nations in case of financial crisis the political factors
of different nation may affect the ALDI at large. Political conditions influence the
organisation at large, which puts greater and negative impact on jobs of well being.
 Economic: Financial crisis lead to unemployment and uncertainty in conditions of
economy. This also influence the factors of production, demand and cost of production
and increase or decrease in demand.
 Social: Demographic changes lead to social and cultural factors influence negatively by
changing in ages fashion, trends in the society have impact of ALDI organisation as it is
located globally (Aghaei and et.al., 2014).
 Technological: New adaptation in techniques and technologies or modifications that are
to be made have an impact on ALDI organisation. Adoption of wireless devices or
electronic shelf labelling are the examples for it.
 Environment: The danger that cause to planet in terms of natural calamity or forces are
termed bas environment factor that highly affects the ALDI organisation.
 Legislative: Changes in the rules policies and procedures of nation as per law has and
wider impact on the ALDI organisation as it is situated across the nation. The law focus
on the overall benefit of the society which impacts the organisation negatively.
Marketing budget
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Aldi consider their operations and functions to develop profitability and productivity with
using different tools and techniques. In this regard, company has prepare marketing budget to
gain more effectiveness at workplace. The company requires £850 to implement their new plan
in the enterprise. It increases significant advantages to develop more effectiveness. With the help
of this amount, tools and software consider in appropriate manner. It supports to lean plan with
increasing sales of the company. Furthermore, target plan consist with 3-4% of top line revenue.
Main goal of the organisation with implementations of this aspect used to attract customer to
look and increase moderate growth goals.
Income and expenditure for Aldi's marketing plan
Income Amount
(£)
Expenditure Amount (£)
Cash in hand on 1.04.17
Cash at bank on 1.04.17 as per
bank pass book
Subscriptions
Investment interest
Sale of old furniture
Donation
Legacy
100.00
150.00
250.00
200.00
100.00
30.00
20.00
Purchasing of raw material
Other expenses
Taxes
Rent of go-down
Travelling expenses
New furniture purchase
Advance payment
Salary
Refreshment expenses
Purchasing of new machinery
Telephone expenses
Misc. Expenses
Cash in hand on 31-03-18
Cash at bank on 31-03-18 as per
pass book
100.00
120.00
150.00
90.00
80.00
20.00
30.00
20.00
80.00
40.00
50.00
10.00
30.00
30.00
£850.00 £850.00
Marketing objectives: The important roles performed by objectives of marketing for the
effective and smooth functioning of ALDI organisation (Dagevos, 2016).
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 ALDI should focus on increasing sales of the organisation which improves the efficiency
as well.
 Brand of ALDI s hould be made aware between the society so that consumers can go for
the products of it.
 New products and services can be launches with the improvements in base of the
consumers.
 New consumers should be targeted to make aware of the products and services which
impacts the other in terms of positively.
 A high focus should be made on increasing profit by increasing sales of the product.
 Relationship between the employees and management should be effectively maintained
also the relationship between the consumer should be explored at large.
 Enhancement should be made in the relation with stakeholder by communicating
effectively by meeting the expectations accordingly.
 The markets that are located nationally and internationally should be explored by
effective and efficiency while functioning
Corporate objectives: the objectives of the corporate are,
 Maximising profit : The profit is the primary focus that are taken into consideration in
corporates to fulfil the objectives (Davari and Strutton, 2014). The benefits of the clients
and employees are not taken into consideration as they follow the objectives with profit
based.
 Increasing market shares: Shares of the market are increased for the sufficient
performance of business organisation. As, ALDI takes into consideration by reducing the
prices in order to earn more profits of organisation. The shares of the market should be
increased to met the objectives of business this are performed by corporate objectives.
 Improving services: The quality of services are increased with improvement. In order to
earn huge profit the organisation should focus on providing benefit to their clients by
meeting their expectations (Salam, Inam and Awan, 2015).
Mission and goals of marketing: The goals and missions of marketing are taken into
consideration for the smooth and successful running of ALDI organisations. With a vision of
what want to achieve and statement of general how effectively the mission will be achieved.
Aslo the core values and strategies and action plans should be well functioned.
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Marketing strategy-
The Aldi's is taking initiatives in relation to framing of marketing strategies after
conducting the proper analysis of its environment in market. With the help of proper formulation
of strategies the enterprise is able to have increment in sales, growth and profit ability of
business enterprise.
Sales This firm is having global advantage in market
being the leader it is having large sale volume.
The Aldi's is having 726 stores in UK. They
have captured the market share by 6.9%. in
order to have increment in sale of firm they are
using effective marketing channels so that they
are able to compete with the rivalries of this
entity in market.
Growth The Aldi's is focusing over to have long-term
growth in market by working effectively with
its stakeholders. With the help of diverse
product range they are able to capture the high
amount of market share. By doing this kind of
the activities the firm became able to capture
14% share in market.
Profitability With the help of using of effective marketing
strategies this entity is able to have increment
in profits of business enterprise. By having
increment in budget for advertising this firm is
able to have increment in sales so that they are
bale to derive large amount of profitability in
market.
Marketing program- This term is defined the outline in relation to deal with key resource of
market so that they with the help of this each function can be framed effectively. This is
14

coordinated in order to achieve the set objective of firm. It can be framed in the following
manner are as-
 Social media- With the help of this the Aldi's is able To promote their product so that
wide range of customer are able to see it.
 Advertisement- This is also effective in order to aware customer about the product in
market. This tool is able to cover the large part so that they are able to deal with the
function of marketing effectively.
 Print- By giving information about the products in magazines the customers are able to be
aware about the commodities available in market.
Control and evaluation procedure
This is continued process and it is need to be taken in order to evaluate the process of
firm in effective manner. There are following techniques with the help of which the firm
performance can be measures are as-
 Internal forces- This function begin with the identifying internal factors of firm. In this it
can be known as that how asses of the company need to be develop in relation to expand
firm abilities.
 External forces- in this the strength and weakness is need to be analyzed so that proper
action can be taken towards it.
 Measuring performance- with the help of this evaluation technique the firm is able OT
measure it performance and take effective control plan if there is need to cope up with the
function.
 Correcting performance- In this it is very essential to find out the gap between actual and
planned performance. If there is any deviation than it is essential to find out the reason
and to adopt better strategy so that firm is able to capture maximum market share.
CONCLUSION
To promote ALDI organisation successfully the essentials of marketing tools played an
crucial role that are detailed in this report. The roles and responsibilities of marketing team in
ALDI are detailed in this report with the strategies for promotion are provided. The team of
marketing efficiently performed roles and responsibilities with the sales department, finance and
other staff related to production process are detailed in this report (Lorenzo, 2017). Apart, from
this comparison of ALDI and tesco in marketing seven p's are detailed in this report.
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