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

This report provides a comprehensive analysis of ALDI's marketing strategies, focusing on the key roles and responsibilities within the marketing function and their relationship to the broader organizational context. The report delves into the application of the marketing mix, comparing different approaches and evaluating their effectiveness. Furthermore, it includes the creation and evaluation of a basic marketing plan tailored to ALDI's operations. The introduction highlights the importance of marketing in promoting products and services, particularly in the context of technological advancements and increasing consumer engagement. The report examines various marketing concepts, including production, product, selling, marketing, and sociality concepts, and their relevance to ALDI's operations. It further explores current and future marketing trends, such as the use of digital platforms and targeted advertising. The report also outlines the different marketing processes, including situational analysis and market segmentation, and the roles and responsibilities of the marketing department in developing strategies, conducting research, developing products, and managing communication. The analysis extends to the interrelation of the marketing department with other departments, such as human resource management, finance, information and communication technology, and production development. The report concludes with an overview of the key elements of marketing, their impact on ALDI's success, and how ALDI can continue to attract its customers.

Marketing Essentials

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain the key roles and responsibilities of the marketing function....................................1
P2 Explain how roles and responsibilities of marketing relate to the wider organisational
context.........................................................................................................................................5
TASK 2............................................................................................................................................6
P3 Compare the ways in which a company applies marketing mix............................................6
TASK 3............................................................................................................................................8
P4 Produce and evaluate a basic marketing plan\.......................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In present time social media, video and TV advertisement is the biggest platform which
is used to promote the products and services and in future it can be more attractive due to
technological advancements. A business always seeks to increase its sales and marketing plays a
crucial role in it. Marketing can be defined as an action of promoting and selling products or
services through conducting marketing research and advertising. The firm develops interest
among the customers towards goods in order to raise their purchasing power so that the company
can gain profit. This report is based on ALDI which is originated in Germany. It provides a huge
range of food, beverages, sanitary articles and house gold goods. Therefore, the report is based
on roles and responsibilities of marketing and its functions, comparison of marketing mix
strategies between two organizations. In addition, it also covers marketing plan of the company
which is required to control the activities (Aaboud and et. al., 2017).
TASK 1
P1 Explain the key roles and responsibilities of the marketing function.
ALDI is one of largest discount supermarket chain which has over 10,000 stores in 20
countries. This is serving in various countries along with United Kingdom, United States and
Australia. Marketing concepts develops a strategy that satisfies the customers’ needs and
requirement. Through analysing their needs, it establishes such policies that can increase firms
sales and maximises it profit in order to gain the competitive advantage. ALDI is advertising its
products among its customers. Company is promoting its goods to increase the sales and raise
the revenue. People should know about the existing and new products because if they do not
have any information then they will not be able to buy the goods. In order to increase the sales
ALDI should gather the information about the requirements of the products in order to develop a
specific product that can satisfy the needs of customer. If company do not have any information
about the expectation of people, then they can't be capable to supply products to prospect
customers which has value for them. This is the core concept of marketing to cater the
information about the products requirement then promote it among the people. So that they can
purchase goods and increase the profit of the company. There are five marketing concepts that
are mentioned below -
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(Source : Concepts of Marketing, 2018 )
Production concept – ALDI should offer the products which are widely available because
people prefer to purchase cheap products. It is operation oriented like manufacturing cost which
consists of raw material, machinery, labour, etc. In order to sale products ALDI should supply
low cost production goods which can attract the customers in an effective way. As production
concept is based on the maximum availability of low cost product so that people can buy that to
increase the profit of the company. Similarly, ALDI should offer a huge range of products which
can be frequently use by customers. Through providing such kinds of products the company can
raise the profitability.
Product concept – It can be seen that people favours to the quality and innovative
features of the goods. They wanted to get more benefits from a wide range of new kinds of
products. It converts them to be more loyal towards company because ALDI is offering then
innovative products that has various advantages.
Selling concepts – In order to raise the sales of products ALDI needs to aggressively
promote the products through promotional strategy. It is encourages sales of company through
attracting customers.
Marketing concepts – It refers to focus in the prospect customer needs and
requirement determining a target market where ALDI can provide a better products than its
competitors. Thus, marketing concept implies to attract customers through establishing brand
image among their rivals such as Morrisons and Tesco. Customer attracts towards the strong
appearance of company image and it increase the profit of the firm (Babin and Zikmund, 2015).
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Illustration 1: Concepts of Marketing

Sociality concepts – In this concept, ALDI emphasizes on the needs and wants of
potential market to deliver the best suitable products which satisfies requirement of people.
Current and future trends of marketing – In present time, ALDI is aggressively
promoting their products through various mediums such as TV, print media and internet
platforms such as social media, text message marketing, emails, video advertisements, etc. This
is attracting a huge pool of customer towards goods. As much as the technology will develop
more there will be need to create strategies to target individual group. There will be some
specific technology that help to access products and services easily.
Overview of the different marketing processes – ALDI needs to follow a process in a
specific direction in order to provide customer contentment. There are some processes that are as
given as below -
Situational analysis – It is a process to research about target market that needs to provide
customer satisfaction because it is crucial to analyse their requirements. But before conducting a
research the ALDI should also analyse its capabilities that it can operate the functions in an
effective way. In order to do so the firm needs to analyse the its internal and external
environment that influences its operations. As the company needs to analyse the environment in
which the business needs to be survive like the political issues, economic issues and so on.
Market segmentation – It is used to divide the potential market in sections so that ALDI
can conduct an effective research to identify the needs and requirement of different customers.
There are various kinds of segmentation that can be define as follows -
 Geographic segmentation – In this the research team divides the market according to their
geographic areas. It helps ALDI to identify the requirement of people in a certain location
such as people would like to consume coffee in cold places whereas the cold drinks has a
wide consumption in hot regions. Thus, it caters information about the people according
to their location. (Baines and Fill, 2013).
 Behavioural segmentation – It analyse the behaviour of the people to identify their
purchasing nature. If they have a high income then they can purchase luxury products and
it is beneficial for ALDI. As customers have the potential to buy quality products that
have special features and they can also pay premium price for it.
 Demographic segmentation – This is used to identify customer needs and requirement
according to the age, race, religion, gender, family size, ethnicity, income, and education
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of the customers. For an example, if there are lots of small children then ALDI should
provide variety of children products because it has a value in the market which attracts
the people towards the store. If company is offering the goods according to the adults
then it will waste of money. As kids products can help to gain profit and competitive
advantage in the present market. (Baker and Saren, 2016).
Roles and responsibilities of marketing functions
There are various roles and responsibilities of marketing department that can be define as
follows -
Strategies – Marketing section is responsible to develop the strategies that can attain the
objectives and goals of ALDI. For an example, it needs to develop strategies to open a new store
in new location. In order to do so, the organization needs to analyse the factors that can achieve
success in potential marketplace. They need to determine the policies that can be beneficial to
gain profit in the organisation.
Research and development – It is one of the core function of marketing department.
The marketing team conducts research to know the preference, choice, lifestyle and purchasing
behaviour of the prospect customers. So that they can plan the strategies that can raise sales of
products and goods. For an instance, if ALDI is going to open a new store in the market then it
should recognise the requirement of people that can satisfy the customer needs through availing
the products. (Banerjee, 2013).
Product development – The marketing department works with product development it
analyse the market conditions and provide information to them. So that they can improve the
existing products and supply the amended products in the market to grab the opportunities in the
marketplace. It is essential function of marketing because people always wanted to get quality
product that can it provides an opportunity to ALDI to offer improved and new goods in the
market.
Communication – Marketing team plans the campaigns to promote the products and
services of ALDI among its potential customers. They caters the information about the people a
prepare a budget for the promotion that includes advertisements, emails, content and press
release. The core objective of communication marketing is to provide information to the
customer about the launching a products and store in the marketplace.
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P2 Explain how roles and responsibilities of marketing relate to the wider organisational context.
ALDI has various departments which are all interrelated with the marketing section. It is
essential for the company that it monitors the market situation to gain the profit. The interrelation
of marketing department with other sections are described below -
Human resource management – Marketing team organizes various campaigns to
promote the products of ALDI in the marketplace. It needs task force to manage the marketing
activities at that time it provides the information to the HR manager that it has a requirement of
employees. Then, manager prepares a job description to the people through social media
websites so that desired candidates can apply for the job role. After getting the information
aspirants can apply for the job and manager can select the appropriate candidate according to the
requirement of marketing department (Braslow, 2015).
Finance department – As marketing team requires the funds to carry out activities.
That's why it needs to connect with finance department which will provides money to marketing
section in order to run the activities in a smooth way. For an instance, ALDI needs to promote
the products through TV advertisement so the marketing team needs to collaborate with the
finance section which provides funds according to the budget.
Information and communication technology – The marketing caters information about
loyal customers of ALDI and then this information is provided to ICT. So that, they will spread
out information about the weekly discount sale among customers through emails, newsletters
and text messages. The people will get attracted towards this promotional activities and reach to
the store for purchasing and it increases the profit of the organization (Caporaso and et. al.,
2010).
Production development – Marketing department monitors the present marketing
conditions and provides information to the production development. As it is crucial to watch
current preference, choice and lifestyle of the customers. So that it can provide the information to
improve products according to the needs and requirement of people. It is essential for ALDI to
identify the requirement of the goods that needs to produce according to market demand. It saves
the manufacturing and supplying cost of the company because the goods will be available when
it needed by the people. On the other hand, ALDI also provide some new products to people
according to the interest of the people because it will attract them towards store.
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Administration – It refers to the top management of the ALDI that can be CEO or
chairman of the company. They are responsible to take any decision in the favour of
organization. Therefore, marketing department needs to propose a budget and marketing plan in
order to promote products in an effective way. It is essential to take the permission of senior
management. As without their approval marketing department cannot conduct its activities and
not able to get the funds from finance department.
Hence, all of these departments are interrelated with marketing section that works in
collaboration to achieve the objectives and goals of ALDI. (Chamorro and Miranda, 2014).
TASK 2
P3 Compare the ways in which a company applies marketing mix
There are 7 marketing P's which plays a vital role in marketing mix because it specifies
the right combination of factors that can influence customers. ALDI and TESCO are the two
retail competitors and both of these adopted marketing mix but it has a different value for them.
Marketing mix can be compare for the both of the organization as -
7 P's ALDI TESCO
Product ALDI offers a huge range of
products such as fresh food, bakery,
drinks, household, health & beauty,
pet care, and whole foods. It
delivers the best quality products
with its private label brands. The
organisation guarantees that it can
return the money if its home
products like Rich tea biscuits,
Little Journey, Elevation, Simply
Nature, Choco rice, Fit & Active
are unsatisfactory.
TESCO provides a variety of
products including food, clothing,
electronics, financial services and so
on. It offers it products through
offline and online (Clow and James,
2013).
Place It is supermarket chain which is
spread across the globe. The
organization operates in
As it renders products through 6,809
stores in the world. It has six different
types of stores such as Tesco Express,
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approximately ten thousand, three
hundred and sixty-six outlets in
around twenty countries including
United States, United Kingdom,
Switzerland, Spain, Portugal,
Poland, etc. It keeps its stores
simple so that customer does not
need to bare the high cost of the
products. ALDI opens its outlets
according to the population where it
can gain easy visibility. Accessible
place is most crucial for the firm
because the people should reach
towards the store easily. It also
ensures the adequate parking space
so that customer should not come
across the problems.
Tesco Extra, Tesco Metro, Tesco
Compact, Tesco Homeplus and Tesco
Superstore (Cohen and et. al., 2010).
Price ALDI sales its products on various
pricing strategies like marketing
penetration which charges the low
cost of new products to enter in the
market. It also has competitive
pricing to charge the low cost of
products from its rivals. Strategic
pricing refers to sale the product on
high cost due to the quality of
goods.
The organisation is focused on cost
leadership and that's why it offers low
cost products without compromising
with the quality (Cua and Reames,
2013).
Promotion It also use various promotional
activities. ALDI adopts above the
line and below the line marketing
The company uses advertisements and
club boards where customer gains
points and they can redeem it to get
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strategies that allures the people
through Swap and Save and Like
Brands. So that customers can
attracts towards the products.
discount on shopping (Dioko, 2016).
People It does not need to hire a high
taskforce because it has arranged
the store section-wise. That's why
people can find the things easily
and it reduce the need of human
resources.
It has approximately 4,60,000
customer assistants that plays in an
important role in the success of
organization.
Physical evidence This organisation is renowned for
its business process, standardization
and global pricing. As it sales the
products on lower cost across the
world.
The stores has a logo and colour that
discriminate its stores so that people
can identify the outlets easily.
Process ALDI offers a high customer
satisfaction through maintaining the
quality of the products and
processing practices like checking
out. It also reduces the waste to
keep the environment safe.
It has standardized activities that
accomplishes specific task such as
people pick their products and pay the
bill at customer assistants. In addition,
they can also use self service
machines to clear the payments.
TASK 3
P4 Produce and evaluate a basic marketing plan
There are various activities that are needed be conduct effectively and to attain this it
needs to prepare a marketing plan which is described as below -
Vision – ALDI provides a huge range of products that has some value to the customers.
The core purpose of the organisation is to provide customer satisfaction and gain profitability on
the basis of quality of their products (Harris and Schwartz, 2010).
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Mission – The growth of ALDI is based on the building efficiency throughout the
business activities.
Objective – The core purpose of ALDI is to provide wide range of quality products that
satisfies needs and requirement of potential customers (Hoványi, 2013).
STP
Segmentation – ALDI is conducting a research through to dividing prospect market to
in order to analyse needs and requirements of the people on behalf of their age, race, religion,
gender, family size, ethnicity, income, and education. Therefore, company can offers a huge
range of products as per their requirements in a particular location.
Targetting – ALDI is targetting to the all female customers in order to increase
profitability of the firm. As it firm is offering a huge range of households products that can be
purchase by all income groups. As the feminine customer can increase purchasing with low cost
products.
Positioning – The company is using aggressive promotional strategies through social
media, video, print media and so on. So that it can establish a brand image in the new market and
grab the attention of prospect customer to raise the profitability.
SWOT
It defines strength, weaknesses, opportunities and threats of the ALDI which is
mentioned as below -
Strength
 It offers a wide variety and quality products to the customers.
 ALDI has strong presence in Germany with its 2500 stores.
Weaknesses
 This organization is still small among its competitors.
 Sometimes it is regarded as cheap quality of the products due to its low cost price.
Opportunities
 ALDI needs to invest in the advertisements to gain the competitive advantage.
 It can expand its business in the growing economies like Asia and Africa.
Threats
 Government policies and tax can impact on it business.
 Its private label brands cannot attract people in effective way (Jain, 2013).
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Marketing Budget – It is needed to control the marketing activities in an appropriate
manner -
Marketing budget
Particulars
1st
year
2nd
year
3rd
year 4th year 5th year
Initial fund 20000 3000 4000 4100 15800
Finance 17000 16000 15900 4200
Total 20000 20000 20000 20000 20000
Marketing
expense
Publicity 8000 7000 8000 5000 7000
Sales publicity 1000 3000 2000 3000 2000
Direct
marketing 3000 2000 2400 2000 1500
Internet
marketing 5000 1000 2800 1800 2000
Social media 2000 1000 1000 2000 1000
printing 500 700 500 300 550
Events 1000 1000 1000 1000 1000
Total 20000 15700 17700 15100 15050
CONCLUSION
From the above report it can be concluded that marketing plays a crucial role in a
business because it encourages customers to purchase goods. Therefore, it needs to promote
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