International Marketing Management Report: Aldi's Strategies

This report provides a comprehensive analysis of Aldi's international marketing strategies. It begins with an executive summary and introduction, followed by a literature review of marketing management concepts, including the marketing mix, marketing plans, and the application of theory. The report then delves into Aldi's marketing model, including SWOT analysis and the Ansoff Matrix. It examines elements involved in consumer analysis and brand management. The report concludes with recommendations and a conclusion, supported by references. The study focuses on Aldi's approach to global marketing, examining how they use various marketing tools and models to generate revenue, increase profit margins, and maintain a competitive edge in the international market. The report highlights Aldi's strategies for product, price, promotion, and place, as well as their approach to consumer segmentation, targeting, and positioning. The report also covers the marketing mix, including product, price, promotion, place, packaging, people, and physical evidence. The report analyzes Aldi's marketing plan, and the application of theory to their business practices, emphasizing their focus on product quality, promotional activities, and customer interaction.

INTERNATIONAL
MARKETING MANAGEMENT

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................4
Literature Review-.......................................................................................................................4
Application of Theory..................................................................................................................6
Marketing Model ........................................................................................................................8
Ansoff Matrix...............................................................................................................................9
PART 2..........................................................................................................................................11
Elements involved in consumer analysis...................................................................................11
Brand Management ...................................................................................................................12
CONCLUSION AND RECOMMENDATION.............................................................................13
REFERENCES..............................................................................................................................15

EXECUTIVE SUMMARY
International marketing includes companies in making one or more marketing elements
and mix decision across national boundaries. Global marketing management include procedure
of planning, conception, promotion, executing and distribution of products and services create
exchanges that satisfy consumers. It processes accountabilities for identifying, satisfying and
anticipating target market needs, thus it also considers focusing on wants of people at global
level and orienting business towards activity of offering that satisfaction.
The current report is based on Aldi supermarket company. They used different marketing
tools in order to generate revenue and increase profit margin while operating business at
internationally. By using different marketing tools and models in developing new goods
organization gain attention of its consumers that increase its profit margin rather thane before
and helps to sustain for longer period. It has been summarized that Aldi achieve their business
objective by adopting marketing methods, they effectively gain attention of new consumers
while operating globally and manage their marketing activities after analysing the business
environment.

INTRODUCTION
The present report is based on Aldi company, it is one of the most common brand of two
German family owned supermarket chains with more over 10,000 outlets in 20 nations. The
reason for choosing this organization is availability of data in context of business marketing
activities and tools that they can use to promote services and products at global level. Firm does
not offer full online grocery goods ordering service in UK, they sell spirits and wine as well as
range of clothing, DIY and garden equipment online for home delivery. It is considered as UK
fifth biggest supermarket. Company launched in Great Britain in 1990, when it opened their first
store there in Stechford, using wholly owned English registered firm of Aldi stores Limited.
This study justified some aspects of marketing management, include advertising,
branding, customer relationship management, copywriting, event planning, internet marketing
and direct selling. It refers to directing, controlling, planning and organizing all the activities
which facilitates exchange of things.
Literature Review-
Marketing management concepts
As per view of Park and Tran, (2018) marketing is the procedure of satisfying wants and
needs of consumers and management is the process of directing, planning and controlling
different activities of company. Marketing management is the activity of analysing,
implementing and controlling of programmes designed or developed to bring about desired
exchanges with target consumers for purpose of common and commercial gain. It depends
heavily on coordination and adoption of product, price, place and promotion for achieving
response. On the other side Priem, Wenzel and Koch, (2018) highlighted that business discipline
which is centring on specific application of marketing methods and management of company
selling resources and activities is known as marketing management concept. It focuses upon
physical and psychological element of merchandising, manager of marketing section is
responsible for influencing timing, level and composition of consumers demand. While
psychological components centring on discovering wants and demands of people and changing
patters of purchasing behaviour. Physical factors is focusing upon fulfilling those demands
purchase better goods design, channels of distribution and other activities. This concept
determines marketing objectives that may be short or long term and need a appropriate approach,
it has to be in coherence with set of objectives and aims of company. The fundamental objective

of marketing management in context of business is to increase consumer base, maximize clients
satisfaction, organization profitability through increasing number of sales.
Marketing mix
In view point of Pomering, (2017) marketing mix refer to the set of tactics or actions
taken by firms in order to promote their brand or specific product within marketplace. It impacts
positively in attracting people towards purchasing products, it is the main objective of marketing
mix components for setting promotional budget measures and objectives. The significance of
each element depend on firm and its activities as well as competition. It means product,
promotion, distribution and pricing strategies to carry out and produce exchanges as well as
achieve target consumers. Aldi's unique balance of marketing mix make them able to provide
high quality of goods, own branded products at cheapest possible price (Dubey, 2019). In
increasingly competitive markets, people have greater choice over where they purchase their
services or products, for company to meet their business objectives, it has to find out what
consumer require and then determine the best way in which it can satisfy these wants. Creating
competitive advantages will be difficult, a unique and different marketing strategy with clear
objective is important to assure effective promotional action. By using marketing mix tools like
4Ps organization gain better results as increase profitability and productivity. Firm adopt the
suitable products' strategy in their marketing mix. The produce quality goods for target market
which is totally different from other brands at base of price.
Marketing plan
According to Hajdú, (2017) marketing plan is operational document that outline a
promotional strategy that firm will implement to generate profit and reach their target consumers.
It is created in context of Aldi company, to launch their new product is stain proof white jeans
and generate its awareness among large number of customers within marketplace, it defined the
main objective of business. Organization want to provide its consumers with goods they buy
regularly and assure that those products are of the highest possible quality at low costs. Different
types of tools variable that can use by company to support marketing analysis. 7Ps of marketing
mix is one of the best tools that used to support marketing analysis. It brings and simplifies
together different concepts of selling into one, making advertising easier to do and organize.
Organization can use 7ps of marketing mix tool in order to analyse market within their marketing
plan which is quite beneficial for them as it help to achieve their objective. Bohari, Hin and

Fuad, (2017) contradict that SWOT analysis is the best techniques that support to internal
analysis under marketing plan. It helps to identify strength, weakness, opportunities and threat
and then make plan to reduce weakness and threat.
Application of Theory
Marketing Management Concept
ALDI has looked at the two concept before deciding the new product of the company.
The first concept is the Product concept, product concept of the business hold that the company
will be looking or favouring the quality, innovative feature product in the market. As result
organization has decided to bring new product in the market which will be developed with the
help of the new technology in the market. This will eventually help the company in getting better
result.
Another marketing concept which has been looked by ALDI in the market is that
consumer in the market, will not purchase the product of the company unless good amount of
efforts or promotional activity are not performed in the organization. As a result ALDI has
decided to use more than one promotional tool to promote the product of the company in the
market (Palmatier, 2018).
Marketing Process
ALDI will be using STP has a process to plan different marketing activity in the organization.
Process of marketing are as follows:
Segmentation: ALDI will be segmenting the group of the customer in the market on the
basis of the Age, gender and feedback. The reason behind the same is that the product of the
company is gender base product.
Targetting: ALDI will be targeting the segment which will include the customer of age
between 15-35 year men. Reason behind the same is that, this is the segment which used to have
good demand of the product which company is looking to offer in the market (Olson and et.al.,
2018).
Positioning: To position the product of the company in the market the organization will
be using the combination of promotional tool. ALDI will be using social media marketing and
newspaper advertisement as two promotional tool to promote the product of the company.

Marketing Strategy
The strategy which will be used by ALDI to promote the product of the company in the
market, is to interact with the customer (Loo and Leung, 2018). This is the primary strategy
which will be used by organization, in which organization will be in contact with all the
customer to known the feedback of the product and on the basis of the same will be bringing the
require change in the product of the company.
ALDI also will be using the alternate strategy in the organization to promote the product
of the company in the organization. In this strategy company will be offering a good sort of
discount to the customer who will be purchasing the product of the company in good bulk. This
will help the company in selling the product more quickly as compare to the other marketing
strategy.
Marketing Mix
Product: Aldi is looking to launch their new products that is stain proof white jeans. This
product will be developed with the helped of the new technology which is procured in the
organization. This product will be produced in six different size, so that organizations able to
attract the good number of the consumer in the market, toward product of the company.
Price: Aldi will be using screaming pricing method in the market as a primary pricing
method of the organization. In this pricing policy organization will be keeping the price of the
product at lower rate in the starting stage of product. After that organization will be increasing
the cost of the product in the market.
Promotion: ALDI will be promoting the product of the company with the help of using
combination of the promotional tool in the market. Organization will be using the combination of
social media marketing and news paper advertisement as a promotional tool to promote the
product of the company in the market.
Place: ALDI will be selling the new product of the company in the domestic market of
United Arab first. After seeing the result of the product company will be deciding whether to sell
product at global level or not. Organization will be using both direct and indirect distribution
channel as the channel to sell the product of the company in the market. As company will be
selling the product of company at their store as well as on other retailer store as well (Abdul-
Hamid and et.al., 2017).

Packaging: ALDI will be using the recycled raw material from the market to package the
product of the company. This will help the company in satisfying the social responsibility of
business as well. Organization will be packaging the product in two layer. First will be the
primary packaging, which will be done of the plastic wrapper and secondary packaging will be
the box.
People: ALDI will be hiring new employee in the organization to carry out the different
operation related to the new product launching. Also organization will be giving training to the
employee in the organization. Organization will also give good amount of wages to employee to
carry out operation of the business.
Physical evidence: ALDI has their name and logo register and they will be using the same in
different promotional activity of the organization. This will eventually help consumer in
differentiating the product of the company with the competitor company product in the market.
Marketing Model
SWOT ANALYSIS
SWOT Analysis is the tool which is used to ascertain the internal position of the business. This
tool used to show the strength, weakness of the company and opportunity and threat which is
present for the company in the market (SWOT Analysis, 2017).
Strength
Goodwill: It is biggest strength of the company, as company in the market is able to earn
a good sort of the name due to the quality of the product which is offered by the company in the
market. This will eventually help the company in getting new customer at the time of launching
of new product.
Financial Position: Aldi is also having very good financial position in the market, As
ALDI in past has earned good sort of profit from the market. This eventually help the company
at the time of adopting or procuring new resources in the organization (Gürel and Tat, 2017).
Weakness
Profit margin: Company has to sacrifice good amount of profit margin to be competitive
in the market. As ALDI used to dealt in heavily competitive market, this eventually affect
productivity of the business.

Employee Turnover: It is another weakness for Aldi, as it has been seen that there is
good sort of employee turnover in the organization in the recent past (Ervural and et.al., 2018).
Opportunity
Expansion: There is good opportunity in front of Aldi to expand there product line by
introducing new product. As good financial position of the business will help the company in
getting support for the same.
Technology: Also there is good opportunity for the business to procure new technology
in the organization to carry out different operation of the business. This will eventually improves
the efficiency and productivity of the business in the organization.
Threat
Competition: Competition is one of the biggest threat in front of ALDI. As explain that
organisation used to operate in highly competitive market, it is one of the biggest threat for the
organization. As they have to plan different activity in the organization by looking at the
competition in the market.
Legal policy: There are many different type of legal policy which has to be followed by
the organization in the long run of the business. This eventually used to affect the efficiency of
the work in the long run of the business.
Ansoff Matrix
Ansoff Matrix is known as strategic planning technique or tool that is used to develop a
framework. This framework is used by the senior manager and marketers to improve the future
growth of company in the target market. Aldi Uk is about to launch a new product in market
place. There are different processes can be used by company to launch their new range of stain
proof jeans in the market place (REZAEI, KHAVARIAN and GHAFURZADEH, 2016). These
strategies can be explained with Ansoff matrix. There are four strategies are suggested in this
model. The selection of the strategy depends on what kind of product organization is launching
in market. The type of market place is important in this process. The strategies that are suggested
in Ansoff Matrix are- market penetration, product development, market development and
diversification. This are most common strategies that are used by organization for future growth.
Market Penetration
This strategy is used by the company to improve their sales in existing market. In this
strategy company uses its products in existing market to improve its market share. There are

different processes can be used in this process. For example decreasing price of product to attract
new consumer, company also can improve their marketing and promotion strategy to attract
more consumer and by acquiring a competitor in current market can help to improve market
share.
Product Development
This is all about introducing new product in existing market. In the product development
strategy more intensive research need to be implement by company to develop new range of
products. Some process can be used to introducing new product to the market place. By making
investment in research and development process new product can be easily developed in
organization. Product of other competitor can be acquired and relevant changes can be made in
order to develop new product for existing market place. Strategic partnership also can be formed
in order to develop new product with knowledge of two different organization. This is one of the
best suitable process that can be used by Aldi UK to gain growth and development in existing
market. This will be easy for organization to make better strategy for known customer and target
market. The better customer information, knowledge of market place and previous experiences
can be used to develop and grow business succcessfully.
Market Development
This strategy focuses on process to enter a new market using their existing product. This
can be considered as geographical expansion of company with new customer segment and
region. This is one of the best strategy for organization to they are able to utilise technological
resources efficiently. This process can be improved by targeting new consumer base, expanding
business regionally and expanding in international market (Gurcaylilar-Yenidogan and Aksoy,
2018). This is how by regional and international expansion organization can improve their
business in the future.
Diversification
Diversification strategy is used by organization where they can enter a new market with
new product. It is one of the most difficult for organization to make effective strategy to get
success in new market with new product. The level of risk is too high in this process. There are
different strategy can be used in this process which are- by developing new product that is
related to the current product of organization. In other strategy organization can start completely
new product to gain higher benefits.

PART 2
Elements involved in consumer analysis
Consumer Affect and Cognition
There are different things that can affect the consumer behaviour. Their behaviour have
different shades which are dislikes, Priorities, values and Morals. The opinion of consumer is
most important for an organization. The consumer behaviour is one of the most dominant and
influencing factor for organization. This can force the organization to make drastic changes in
their products and services to meet their targets in the target market.
Consumer cognition can be explained as misidentifies or unacknowledged influence of
experience on consumer that is related to judgement. These are two different things where
consumer affect can be defined as feeling and responses of customer and cognition can be
explained as mental thinking of customers (Chiang, Chen and Ho, 2016). These are two element
of consumer analysis. Affect and cognitives are produced by cognitive systems and these
systems are highly interconnected to each other. Both customer affect and consumer cognition
influence each other. This both factors are need to be studied by the organization to make better
impact on their performance in the target market.
Consumer Behaviour
Consumer behaviour is a term used to describe the approach of customer's while taking
procurement decisions related to the company's products (Haugtvedt, Herr and Kardes, 2018).
Consumer behaviour is among the crucial factor involved in consumer analysis as it reflect the
decision making process of the consumer’s in respect to buying company's products. Consumer
behaviour reflect various aspects of consumer's such as need, demands, expectations, desire and
other crucial elements involve in buying decision of consumer. Current trend and fashion is also
considered as reflective tool of consumer behaviour. Management of Blentec analyse about the
target consumer's expectations and needs after assessing the consumer behaviour in the target
market.
Consumer Environment
Consumer environment is considered as the business environment in which customer live
and take buying decisions in respect to different products and services. Various business
environment factors such as micro, macro environmental factors influence the customer's
decision making process (Ertz, Karakas and Sarigöllü, 2016). Volatile consumer environment

resulted into increased competition for company in the market. Consumer environment also
create an impact over consumer expectations as if the customer environment is volatile it will
entertain to different choices for the customer's in the market. Environment assessment related to
the consumer drives the decision making process of the company towards launching the new
products and also to upgrade the old products in process to sustain in the market. Blenditic is also
witnessing the high level competition because of the consumer environment and it also guides
the management to identify the needs and demands of the customer's based on the consumer
expectations.
Brand Management
Brand management is an analytical tool to analyse about the market presence of
company's products in the market (Molinillo and et.al., 2017). Brand management also involve
planning and designing the strategies to improve the market presence of the brand in the target
market.
Management of Blentec is planning brand management with the use of Aaker's Brand Equity
Model. This model will enable the management to cover all the basis in respect to customer's,
market and other factors that will effectively improve the market presence of Blentec.
Aaker's Brand Equity Model
David Aaker has provided the brand equity model that effectively enable the company
management to manage the brand. Aaker model is well dynamic model as this model cover
various aspect of brand management such as brand loyalty, brand awareness, perceived quality,
brand association and proprietary assets. Brief analysis under the Aaker model will provide a
suitable framework to the management of Blentec to frame the suitable brand management
strategy.
Brand Loyalty: Brand loyalty depict the customer loyalty towards the brand. Brand loyalty
involve all the target customer's of Blentec that has been sustainable for the longer period.
Marketing team of Blentec frame suitable marketing strategies to improve the brand loyalty by
maintain the customer base for longer period (Kernstock and Powell, 2018). Marketing team
channelise marketing campaign over all the effective marketing channels like social media,
internet, television, YouTube and other effective channel to improve or sustain the brand loyalty.
Brand loyalty provided significant benefits to Blentec management like reduced marketing cost,

effective trade leverages, diminish competitive threat. Brand loyalty also result into improved
customer base.
Brand Awareness: Brand awareness is depicted as the popularity of brand. Blentic is a well
known brand and that reflect the brand awareness about the company. Marketing channels play
the huge role behind improved brand awareness as it effectively impact over market presence of
Blentec. Brand awareness improved familiarity of customer's. The major advantages Blentec
entertained is the brand awareness has improved the sustainability of customer's.
Perceived Quality: Perceived quality is an effective tool of brand management that also enable
the management to sustain the customer's. Perceived quality is denoted by providing quality of
products to meet the customer's requirements and expectations. Various components also play
the crucial role like quality of products, brand position, price, availability and brand extensions.
All the components involved in perceived quality effectively influence the buying decision of
customer's.
Brand Association: Brand association is specified as the term through which the brand is
recognised in the market. Brand association is more like a market segment of Blentec.
Components associated with brand association involve information retrieval, drive purchasing,
attitude of customer's and number of brand extension (Powell, 2017). All such components
improve the brand presence in the market.
Proprietary Assets: Proprietary assets is also a crucial aspect of brand. Proprietary assets
involve patents, copyright, trademarks, trade secrets and other associated intellectual property
right with the Blentec. All the components involved in proprietary comprises to from a unique
identity of company and brand in the target market.
CONCLUSION AND RECOMMENDATION
After going through the above report it has been summarized that there is good sort of
market for introducing new stain proof white jeans as a product in the market for ALDI. At the
same time it has been recommend to the organization that organization has to adopt new
technology to develop new jeans in the market. As technology which is used by organization is
not that updated to produce new jeans in the market.
It has been also summarized from the report that as company is using the selling concept,
organization has to make sure that they used to invest good amount of financial resources toward
the promotional activity of the organization. The reason behind the same is that as customer

group of the company will be situated throughout the nation. Organization has to take help of
mass marketing activity so that large number of consumer can be attracted at once by the
organization.
It has been also summarized that the organization has to dealt with large number of the
competitor in the organization. As a result it has been recommend to the organization that they
used to regularly keep eye on the different policy of the competitor in the market. As
organization has to make sure that the policy which is made by them in the organization are good
enough to overcome the different challenges offered by competitor.

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