Comprehensive Analysis of Aldi's Marketing Strategies and Principles

This marketing report provides a comprehensive analysis of Aldi's marketing strategies. It begins with an introduction to marketing principles, followed by an examination of the elements of the marketing process and the benefits and costs of a marketing orientation. The report then delves into the influence of macro and micro-environmental factors, segmentation criteria, and the impact of buyer behavior on Aldi's marketing activities. It explores targeting and positioning strategies, product development for competitive advantage, distribution and pricing strategies, and the integration of promotional activities with marketing objectives. The report also discusses the marketing mix for different segments, the differences between B2B and B2C marketing, and the differences between international and domestic marketing. The report concludes with a summary of the key findings and insights into Aldi's marketing approach.

MARKETING PRINCIPLES

TABLE OF CONTENTS
Introduction .....................................................................................................................................4
Task 1 ..............................................................................................................................................4
1.1 Elements of marketing process.............................................................................................4
1.2 Benefits and costs of marketing orientation..........................................................................6
Task 2...............................................................................................................................................6
2.1 Influence of macro and micro environment factors .............................................................6
2.2 Segmentation criteria............................................................................................................7
2.4 Impact of buyer behaviour on marketing activities...............................................................8
2.5 Positioning strategy ............................................................................................................10
Task 3.............................................................................................................................................11
3.1 Development of products for sustaining competitive advantage........................................11
3.2 Distribution strategy ...........................................................................................................11
3.3 Pricing strategy....................................................................................................................12
3.4 Integration of promotional activities with marketing objectives........................................12
3.5 Additional elements of marketing mix................................................................................13
Task 4.............................................................................................................................................14
4.1 Marketing mix for two different segments..........................................................................14
4.2 Difference between B2B and B2C .....................................................................................14
4.3 Difference between international and domestic marketing.................................................15
Conclusion.....................................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Marketing is the fundamental social process which is evolved within a society for the
purpose of meeting needs and demands of consumers (Armstrong and et.al., 2014). Apparently,
behind every great company, there is an exceptional marketing strategy that manages all the
fundamental aspects of marketing. The present research study has been made on Aldi which is a
leading global discount supermarket chain. The business operates in European market with
around 10,000 stores in more than 18 countries. It comes under the category of world’s largest
privately owned companies with the market share of around €53 billion. Thus, in this context
researcher has stated all the elements of marketing process.
Along with this description, information is also included regarding environmental factors
that affects marketing and business decisions of Aldi. Furthermore, in the study researcher has
mentioned impact of buyer behaviour on marketing decisions of Aldi. All the elements of
marketing have been used in prominent manner in the current study. Difference between
international and domestic marketing has been stated in the subsequent study. Aldi has been
focused towards customer orientation approach in which the business entity emphasizes on
delivering prominent services to the customers; hence in this respect several marketing and
promotional strategies are discussed.
TASK 1
1.1 Elements of marketing process
Aldi has been emphasizing on marketing process for the purpose of promoting the
product at market place and also assists the business entity to aware people about the availability
of products (Foxman and Dobscha, 2015). In the below section, the main elements of marketing
process are discussed:

Figure 1: Elements of marketing process
 At the initial stage, Aldi has to identify the needs and demands of customers. This
identification assists the business entity to bring appropriate products at the market place
(Domegan and et.al., 2013).
 Secondly, the entity conducts market research in which the current situation of market is
ascertained. This is also significant for the purpose of knowing the competitors and their
strategies (Janssen and et.al., 2013). Through this, internal and external business
environment of Aldi can be identified.
 Afterwards, the situation analysis, Aldi develops marketing strategies and procedures for
promoting and positioning the products effectively in the market. This is also useful for
grabbing attention of customers.
 All the elements of marketing mix are required to be included in the business practices so
that prominent and requisite products can be developed (Converse, 2013).
 It is also essential for the business entity to conduct direct monitoring and controlling so
that loopholes can be ascertained. Moreover, new things can also be added in marketing
strategies of Aldi in respect of facilitating improvements.

1.2 Benefits and costs of marketing orientation
The process of marketing orientation is beneficial for Aldi in many ways such as it helps
in focusing on market scenario which enhances business capability aspects. Through the process,
better services can be delivered to the clients and as a result, client satisfaction aspects can be
encouraged (Nicholson and Oliphant, 2014). Constant improvement can be facilitated with the
help of market orientation process as through this Aldi can analyse market terms on regular
basis. The procedure is also beneficial for Aldi because it assists in understanding changing
needs and preferences of customers. Hence, Aldi can manage the customer base as well as
satisfaction level in effective manner.
However, on the contrary, the process is cost effective as well because too much
emphasis on market analysis could reduce business efforts in other areas. This can also consume
time and other resources; thus business entity has to augment their efforts in different fields
(Strydom, 2015). Moreover, this can also lead the business entity to emphasize more on
technological facets so that new improvements can be facilitated in the business practices. Use of
advanced technology can assist Aldi to increase the product line; however this can also enhance
burden of employees in different contexts (Domegan and et.al., 2013). Thus, from the discussion
it is evident that market orientation process has several advantages and disadvantages.
TASK 2
2.1 Influence of macro and micro environment factors
External environment auditing of Aldi (PEST analysis) Political: Political situation of UK is stable; therefore Aldi is getting support from the
political norms and legislation. However, at the same time Aldi’s performance is highly
influenced by the political and legislative conditions of European Union.
 Economical: The economic condition of UK is stable; however there is still
unemployment prevailing in the economy. Aldi needs to show great concern towards
economic factors because they are likely to influence demand, cost, prices and profits.
Thus, Aldi is badly affected by recession in the UK food market which are exposed to
market concentration risks (Heidt and Quazi, 2013). Social: Changes are prevailing in the needs and demands of customers; hence social
aspects creates more competition for Aldi. In this respect, Aldi has adopted new practices

and strategies for the purpose of amending the product line. For example- organic food
products have been introduced by the business entity for the purpose of meeting social
obligations (Converse, 2013).
 Technological: Technology seems to be the most important aspect under the business
environment and Aldi has been getting huge impact from the same aspect (Steinberg,
and Greene, 2015). In response to this, Aldi needs to focus on use of new tools and
techniques for delivering appropriate services to the clients.
Internal environment auditing of Aldi (SWOT analysis)
STRENGTHS WEAKNESSES
 Affordable and inexpensive products
 Good quality products
 Strong presence in Germany
 Huge customer base
 Minimal advertising
 Improper focus on technology
 Unavailability of alternatives
 Confined facilities in payment of
services
 No global impact
OPPORTUNITIES THREATS
 Opportunity to improve customer base
 Opportunities of expansion and
diversification in growing economies
like Africa and Asia
 Proper investment in advertisement
could lead to business promotion
 Huge competition from existing
brands
 Inadequate focus on growth
opportunities
 Lack of efficient personnel could lead
to business issues and challenges.
2.2 Segmentation criteria
Management of Aldi can make use of market segmentation strategies for targeting
specific group of consumers. The communities in the supermarket can be arranged as per the
needs of the buyers (Kotler and Armstrong, 2013). It will aid in selling products of the enterprise
in an effective way to a large consumer base.
Demographic segmentation :- It can be done and specific products of the supermarket
chain can be arranges in a systematic manner. Advertising and promotion of the business can
also be designed by targeting specific clients. In this segmentation technique differentiation is
done on the basis of age, sex, gender and education level of the buyers (Kotler and et.al., 2015).

Geographic segmentation :- Supermarket stores of the company are located in diverse
market areas of the nation. This segmentation criteria can be used and buyers can be targeted on
the basis of geographic criteria and it consist of dividation on the basis of nation, regions and
cities (Lilien, Rangaswamy and Bruyn, 2013). Specific strategies can be used for attracting
consumers in diverse market areas and it will aid in selling commodities as per the needs of the
buyers.
2.3 Targeting strategy
various types of products are sold at supermarkets of Aldi and market targeting strategies
can be formulated for selling the products of the organization. Differentiated marketing strategy
aids in developing specific marketing mixes for appealing to a large market segment. High sales
volume and profits can be gained by making use of this technique (Brown, Browne and Browne,
2015).
Particular segment can be targeted by designing advertisements in an attractive manner
and brand promotion of the product can also be done by making use of this technique (Foxman
and Dobscha, 2015). Concentrated targeting strategy can be used for selling products of the
supermarket chain to several different market segments. It is vital to develop specialize
marketing mix for targeting specific group of consumers (Strydom, 2015). Research and
development department of the company can minimize its expenditure and cost for doing
advertisements and brand promotions can also be reduced my making use of concentrated
targeting strategy.
2.4 Impact of buyer behaviour on marketing activities
Behaviour of consumer changes due to several reasons and in various situations and that
typically has a direct impact on marketing activities of Aldi. In the below mentioned section, the
impact of buyer behaviour is being discussed: Complex buying behaviour: At the time of getting any product and service, consumer
usually conducts a lot of market research (Cummins, Loe and Peltier, 2016). This assists
the consumers to get appropriate products as per the choice and it also have a direct
impact on consumer buying behavior. Consumers usually prefer to get advice and
opinion from the experts prior buying any products.

 Variety seeking behaviour: In this buying situation, consumers seeks for variety so that
suitable products can be purchased. Since, Aldi has range of products and services;
therefore consumers can look for variety of products while buying food items (Sheth,
and Sisodia, 2015). In this sort of behaviour, consumer usually changes their preferences
according to the available options and varieties. At the same time, it leads to several
changes in the business scenario; hence Aldi also has to extend the product line for
retaining more customers.
 Dissonance and Habitual buying behaviour: In this buying situation, consumers prefer
to get those products which they get on regular basis (Kotler and et.al., 2015). Hence, in
this condition, potential and loyal customers of Aldi could assist the business in retaining
the profit level.
Thus, from the discussion it is clear that different buying situations impact marketing
decisions of Aldi and this also changes market scenario in many ways.
Figure 2: Categories of buying behaviour
(Source- Janssen and et.al., 2013)

2.5 Positioning strategy
Management of Aldi can adopt effective strategy for proposing new positioning for a
selected commodity of supermarket chain. It supports in gaining consumer loyalty and brand
awareness for the products can also be created by making use of this method (Domegan and
et.al., 2013.). There is positive link between market segmentation and product position and both
supports in achieving required objectives of the enterprise (Simpson, 2013). Positioning for the
products of supermarket chain can be achieved by designing attractive advertisements.
Television and radio adds can be developed in which information about products of the company
can be provided to the consumers. Printed advertisements can be given in the local newspapers in
which discount schemes offered by the company on its various products can be described
(Kleinaltenkamp, Geiger and Plinke, 2015). These strategies will aid in gaining brand promotion
of the enterprise. Marketing experts of the venture should provide proper directions and support
to the subordinates so that the positioning strategy can be implemented in an appropriate manner.
TASK 3
3.1 Development of products for sustaining competitive advantage
Competitive advantage is becoming the major objective of every business entity and in
order to achieve this, organizations are paying more attention towards marketing management
(Jobber and Ellis-Chadwick, 2012). In this respect, Aldi is accentuating on Product Development
Strategy where in the business entity enhances the product line through adding new and
competent products and services. New products are introduced at market place with range of
attributes (Vincze, 2015). This is essential for persuading number of customers towards the
products of Aldi. Chiefly, transformations are observed in food products in which organic
products are added in the product list.
Apart from this, Product Differentiation Strategy is also adopted by Aldi for the purpose
of differentiating the products and services with that to competitors. This is yet another technique
for achieving competitive advantage (Armstrong and et. al., 2014). Moreover, Aldi also focuses
on changing the pricing strategies so that customers can be attracted towards the services. This is
significant for reducing customer switch over to other brands. Thus, under this strategy,
discounts, schemes and other benefits are being delivered to the customers. Henceforth, all these
efforts enhances customer base of Aldi.

3.2 Distribution strategy
It is assertive that a proper distribution channel should be developed for selling the
products of the Aldi enterprise. The Distribution term is used for defining movements of goods
from producers to the consumers (Janssen and et.al., 2013). Logistics department of the
enterprise play a significant role in ensuring transfer of goods from one place to another. The
management of supermarket chain should ensure availability of the necessary commodities in the
stores so that delivery to the consumers can be ensured (Russell-Bennett, Wood and Previte,
2013).
The technique of intensive distribution can be adopted for assuring availability of
products in its outlets. Online and offline methods can be used for selling the goods of the
company. IT experts should be hired for designing website of the company and it will support in
selling the commodities of the corporation through online mode. Retailers and wholesalers
should be trained properly so that they can effectively work for distributing the products of the
enterprise (Converse, 2013). Record keeping work also needs to be done effective so that
appropriate delivery of commodities can be ensured.
3.3 Pricing strategy
Aldi company should use effective pricing strategies for selling the commodities of the
supermarket chain. Various types of strategies can be adopted for setting the prices of specific
products (Gordon, 2013). Penetration pricing strategy can be used for targeting higher and lower
income group buyers. In this method initially cost of the products is kept low so that buyers can
easily avail the products without worrying about the price. When the brand gets established and
loyalty of the purchasers is gained than prices are increased. Initially when the prices are kept
low high volumes of sales can be done as more number of consumers will purchase the products
of the organization (Burchell, Rettie and Patel, 2013). It will support in recovering investment
cost of the organisation.
The enterprise should keep its production and operation cost lower so that it will become
easier for selling the goods at reasonable cost. People who belong from higher and lower income
groups will become capable for purchasing the commodities at a lower price. Various advantages
can be reaped through penetration pricing strategy and it includes development of goodwill
among the consumers (Hair and et.al., 2012). They become loyal towards the products and prefer

attributes and features offered by the product. It supports in creating good will among the
consumers and also aid in controlling and minimizing operational cost of the enterprise.
Competitive advantage can be achieved by the business and sustainable development is also
ensured by making use of this strategy.
3.4 Integration of promotional activities with marketing objectives
Promotional strategies of the enterprise can be integrated in an effective mode for
achieving the marketing objectives of the organization (Huang and Rundle-Thiele, 2015).
Promotion is done for increasing brand awareness of the products offered by the Aldi
supermarket chain. Positive public relations can be maintained for ensuring growth and success
of the organization (Burchell, Rettie and Patel, 2013). Sales promotion activities of the company
needs to be developed in an efficient mode so that required goals of the enterprise should be
completed. Advertising of the company which is done through television and radio programs
should be attractive and designed properly for targeting specific group of consumers.
Use of social networking sites can also be taken for reaching to large consumer base, it
provides medium for doing promotions of the business in a cost effective mode (Allred and
Addams, 2013). Customer representatives of the enterprise should be trained properly so that
they can make proper interaction with the buyers and sell the products of the organization.
Marketing department should formulate effective strategies after doing careful analysis of market
conditions. It will aid in identifying requirements of the buyers and firm will become competent
enough for delivering products as per the needs of the buyers.
3.5 Additional elements of marketing mix
Marketing mix elements aid in achieving common interest of the business and
appropriate strategies can be formulated for selling the products of the enterprise (Grönroos and
Gummerus, 2014).

Target market area can be captured and brand positioning for the products of the Aldi
firm can be achieved by properly setting elements of marketing mix. The extended elements are
as follows :-
People : Human resource of the Aldi are considered as most impotent asset of the organization.
Management takes several initiatives for enhancing skills and competency of its staff members.
It supports in proper utilization of capabilities of the employees and also aid in making
improvement in their overall personality (Armstrong and et.al., 2014). Customers of the business
are significant and their opinions and requirements should also be considered while setting the
marketing strategies.
Process : Systems and operational processes of the Aldi enterprise should be properly designed
so that required objectives can be achieved in an effective mode. Management people should do
proper monitoring of overall functional processes so that required objectives of the business
could be accomplished in a proper way (Kotler and Armstrong, 2013).
physical evidence : Outlets of the Aldi venture should be designed and decorated in an attractive
mode so that attention of the consumer could be gained. Brand awareness and effective
promotion can be achieved by making use of this technique (Lilien, Rangaswamy and Bruyn,
2013). It will also support in gaining consumer loyalty and effective presence can be made in the
market place.
Illustration 1: Extended marketing mix
(Source- Kumar, 2015)