Analysis of Aldi's Marketing Objectives and Strategic Direction

This report provides a comprehensive analysis of Aldi's marketing objectives, encompassing its mission, vision, purpose, and values. It delves into the organization's strategic direction, situational analysis, and legal/ethical requirements. The report includes a SWOT analysis, evaluates previous marketing opportunities, and assesses marketing performance against targets. It identifies potential marketing opportunities such as email marketing and pricing strategies, evaluating their viability, cost-benefit analyses, and risk assessments. Furthermore, the report examines the alignment of these opportunities with organizational goals and their impact on the current business and customer base. Finally, it outlines both short-term and long-term marketing objectives and includes a risk management strategy, concluding with a summary of the findings and recommendations.

Developing Organizational Marketing
Objectives

Table of Contents
INTRODUCTION...........................................................................................................................1
Organization's mission...........................................................................................................1
Organization's vision..............................................................................................................1
Organization's purpose...........................................................................................................1
Organization's Value..............................................................................................................1
Organization's Strategic direction and targets........................................................................1
Situational Analysis................................................................................................................1
Legal and ethical Requirements of Aldi.................................................................................2
Strategic Direction of Aldi.....................................................................................................3
Impact of Strategic directions on marketing activities...........................................................3
Evaluation of the effectiveness of previous marketing and positioning strategies................3
SWOT Analysis......................................................................................................................3
Evaluation of previous marketing opportunities undertaken by the business for profitability4
Evaluation of marketing performance against previous objectives, targets to identify critical
success factors, and areas for improvement...........................................................................4
Identify potential marketing opportunities and analyze these marketing opportunities for
viability and potential contribution to the business................................................................4
Assessment of external factors for each marketing opportunity............................................5
Cost-benefit analyses of each marketing opportunity............................................................5
Risk and opportunity assessment for each marketing opportunity.........................................5
Assessing how each marketing opportunity are aligned with organizational goals...............6
The impact on current business and customer base for each marketing opportunity.............6
Develop marketing objectives................................................................................................6
Ensuring the marketing objectives (developed above) are aligned with the forecaste needs of
the business and market..........................................................................................................6
Ensuring marketing objectives are compatible with organization strategic objectives and
direction..................................................................................................................................7
Ensuring marketing objectives meet ethical and legal requirements:....................................7
Documentation of both short term and long term marketing objectives...............................7

Document a risk management strategy that............................................................................7
Ensure pitching (promoting) marketing objectives to your group and consider feedback given
................................................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
The report deals with Aldi which is one of a largest retail company at global level. The
study helps to understand objectives of marketing and describe company's mission, vision,
purpose, value and strategic direction. It also describes situational analysis, legal and ethical
requirements which are needed for business and by using SWOT analysis, report describes its
internal environment that affect company. Further it presents marketing objectives and
documents of risk management strategy.
Organization's mission
The mission of Aldi is to provide best quality of products to poor who cannot afford to
shop and it also supply employment at all over world.
Organization's vision
Aldi's vision is to alter Australian shoppers so that they live richer lives and people
should enjoy the opportunity to buy groceries at affordable price with highest quality.
Organization's purpose
Company's core purpose is to provide value and best quality to their customers by means
of fair price as compared to rivals so that they enjoy shopping (Solomon and et.al., 2014).
Organization's Value
Aldi is based upon three value chain i.e. simplicity, consistency and responsibility. Such
as the store in Australia are simple in design and all stores are similar to each other so that they
create consistency and all employees must know their responsibility.
Organization's Strategic direction and targets
Aldi recently uses 'Good different' strategy in Australia to maintain pressure on
competition and its strategic direction is basically focused on its mission so that it helps to raise
its profit. Company wants to target every region so that it reaches up to a global level (Katsikeas,
2014).
Situational Analysis
Collaborators analysis Aldi mergers with Nord and Sud in order to improve company's
efficiency.
Further by taking help of Kohl's, Aldi change the entire store in
order to attract wide range of customers.
1

Competitive analysis Competitive analysis is help to evaluate what other rivals
company provide products and services to their customers such
that Aldi has many rivals which are Walmart, Kroger, Procter and
Gamble.
Environmental
analysis
The company faces tough competition with its rivals such that it
offers plenty of price discounts in order to attract wide range of
customers (Environmental analysis, 2018). Thus, it impacts their
suppliers and also keep monitoring this company is growing or
not.
Market analysis and
market measurements
Aldi is a global level company which operates 8000 store in
world wide (Lee, Kozlenkova and Palmatier, 2015). Such as
Aldi Nord operates in Denmark, France, Spain etc. and in US it
has 1600 stores as of 2017.
Productivity or
profitability analysis
Total turnover of a company is keep increases that shows that
company can easily expand its business at world level.
Legal and ethical Requirements of Aldi
Legal Requirements: As per ADMA direct Marketing Code of Practice provides
protection to their customers in terms of legal entitlements. Aldi must follow Discrimination law,
employment act, Data protect Law in order to keep all personal data confidential. Further
Copyright laws, Defamation law, Consumer Act, Anti- discrimination Legislation which strictly
prohibits all discrimination based on caste, gender, religion etc. So, it is quite essential for Aldi
to follow all legal laws in order to reduce gap between community (Sargeant and
MACQUILLIN, 2016).
Ethical Requirements: Aldi must adopt ethical practices such as environmental
sustainability or fair trade in order to use this as a selling point and to promote their business.
Recently, Aldi pushes Australian suppliers towards ethical standards to meet out all customers’
needs and requirements by offering products at low price and it also have CSR policies.
2

Strategic Direction of Aldi
In order to expand and reach at global level, Aldi renovates its existing stores and open
new big shop in order to attract wide range of customers. It also uses variety of promotional
activities to reduce its weakness and it helps to achieve goals of a company. To improve
customer’s reliability and retain clients, Aldi also introduces loyalty cards for their regular
customers.
Impact of Strategic directions on marketing activities
Marketing activities such as introduction of loyalty cards for their customers will help to
raise company's sales and by using promotional activities that directly influence customers as
rewards. All the strategic directions are creating positive impact upon market activities and
towards success of company (Gowreesunkar, Séraphin and Morrison, 2018). By using strategic
directions such as promotional tools, company raises its sales which directly impact upon
company's profit and which further help to improve business's market activities.
Evaluation of the effectiveness of previous marketing and positioning strategies
Aldi uses low cost strategy to attract customers and raise their profitability in order to
gain customer base because it have best quality of products to offer. That is why, company's
profitability and productivity will be improved and using different promotional tools will also
help to attract wide range of customers that further aid to increase productivity.
SWOT Analysis
Strength:
 Company has strong customer base and it provides low range of products to them.
 Has strong ecosystem.
 Aldi has great saving as its pricing strategy is quite different from others.
 Have wide variety of product portfolio in its every store (Thomas and Thomas, 2018).
 More than 1,00,000 people are employed at world level.
Weaknesses:
 Aldi is a small company as compared to others.
 There is need to improve company's employee satisfaction such that by providing
rewards.
 Due to negative publicity, its image will be spoil in market.
 Sometime store maintain cheap and low quality item that affect customers choice.
3

Opportunities:
 In order to beat competition, Aldi needs to invest more in advertising.
 Can expand its business in Africa, Asia
 by re- positioning, company can sustaining its brand rather than offer cheap products
Threats:
 It did not complete shopping experience to their shoppers
 Policies related to government and tax will affect company's margin (Tuten and Mintu-
Wimsatt, 2018).
 Faces tough competition with Walmart and Amazon.
Evaluation of previous marketing opportunities undertaken by the business for profitability
Marketing opportunities of success can be accessed by terms of viability. Such that, Aldi
start introducing loyalty cards in order to raise company's overall performance and with the help
to promotional activities, it start attract variety of customers towards them. To raise its
profitability, it also uses benchmark as a key indicator that helps to identify its potential gain
which can be made by marketing opportunities.
Evaluation of marketing performance against previous objectives, targets to identify critical
success factors, and areas for improvement
Aldi stands 5th position in Australia and to evaluate marketing performance, SWOT
analysis will help such that there is need to improve employee's satisfaction level and by
reducing the expenses on newspaper advertisement, company can easily save its cost cutting
power (Olson and et.al., 2018). In terms of target, Aldi also uses email marketing activity
because business predicted that 60000 people uses this while only 20000 uses newspaper
vouchers. So company must be cost effective and product oriented. Thus it proves that e-mail
marketing is a critical success factor for the term of promotions.
Identify potential marketing opportunities and analyze these marketing opportunities for viability
and potential contribution to the business
 Email- Marketing: if Aldi uses email marketing as a merchandising opportunities then it
will definitely help to enhance company's profitability. Such that by reducing the cost of
expenditure on promotional tools it will help to contribute in company's overall income.
4

 Pricing opportunity: To increase sales and profit, Aldi also uses differentiation pricing
strategy in order to make money or to meet all goals. Using low price strategy as a market
opportunity, contributes towards profit for a business.
Assessment of external factors for each marketing opportunity
 For email marketing, it directly affects from technological external factors such
that by coping with new latest technologies, company will raise its profitability
(Camilleri, 2018).
 For pricing opportunity, it directly affects from economic external factors such
that as inflation rate and recession of country increases, the buying power of
customers decreases. As a result, company's profitability will affect adversely.
Cost-benefit analyses of each marketing opportunity
 Cost benefit analysis for email marketing opportunity will create positive impact upon
company's overall performance. Because Aldi uses variety of promotional tools and
instead of using those, email marketing will be used in order to reduce cost of expenses.
Further this also helps to increase activity scope by cutting the extra of expenses
(Rossiter, Percy and Bergkvist, 2018).
 For pricing channel as a marketing opportunity, there is a good scope of low price
products and people will also enjoy low cost benefit. By low price cost, company will
also take better decision which further help in profit maximisation.
Risk and opportunity assessment for each marketing opportunity
Risk:
 Email marketing appear to be at low risk because it helps a company to provide better
opportunity and there are less chances of loss occurring. As Email marketing is protecting
company for extra expenditure therefore, there is low chances of risk.
 For pricing channel, there may be low and high chances such that if company provide
low range of products to their customers then there is chances of low risk as it helps to
maximize profit. While on the other side, if there is a chance to increase country's tax rate
5

then it also affects products inversely and it becomes risky for a firm (Ashraf and Bhalla,
2018).
Opportunities:
 Email marketing is a good opportunity for company because it helps to reduce extra cost.
 Pricing is another good opportunity because it helps to raise company's overall
profitability.
Assessing how each marketing opportunity are aligned with organizational goals
 Marketing opportunity such as email helps to maximizes profit because it reduces
the extra expenses and due to this opportunity will directly contribute to
organizational goals. By presenting all products through email will help to
increases sales therefore it helps to attain company's objectives (Thomas and
Thomas, 2018).
 Through pricing strategy, Aldi will presents all their stocks at least price which
helps to raise company's sales and this will be more beneficial at the time of sales
by advertising with 40% off in present products prices. Therefore, it helps to
attain defined goals of a company.
The impact on current business and customer base for each marketing opportunity
 By email market opportunity, it creates positive impact upon current business and also
enhance customer base because it reduce all extra expenses and as a result, profit
maximizes (Tuten and Mintu-Wimsatt, 2018).
 By pricing strategy also it helps to creates positive impact upon current business specially
in end of the season. Such that low cost and high quality will helps to gain customer base.
Develop marketing objectives
Marketing objectives for Aldi is to provide high quality of products at low price in order
to improve brand perceptions such that increases sales by 20% and must be effective that will
help to contribute to growth and expansion.
Ensuring the marketing objectives (developed above) are aligned with the forecasted needs of the
business and market
Aldi's main objective is growth but current marketing goal is profitability and it will be
more suitable combination when profitability ease as growth (Olson and et.al., 2018). For long
6

term forecast business needs growth, Aldi needs to set up new system which helps to maximizes
profit. To keep up these activity for long term will helps to facilitates the business future needs.
Ensuring marketing objectives are compatible with company capabilities
These marketing objectives are matched with company capabilities such that it helps to
maximizes profit by ensuring growth opportunities and as a result it will help to promote its
business by using advertisement (Camilleri, 2018).
Ensuring marketing objectives are compatible with organization strategic objectives and
direction
Aldi's main marketing objective is to enhance profitability with company's growth and it's
effectiveness and success of marketing project to make sure that these objectives are compatible
with Aldi's strategic direction in order to raise profit.
Ensuring marketing objectives meet ethical and legal requirements:
All marketing objectives are met with legal and ethical requirements such as it follows
codes of practices, provides products to all religion, health & safety of workplace personnel. Aldi
also abide with legal and ethical terms in order to retain customer base (Rossiter, Percy and
Bergkvist, 2018).
Documentation of both short term and long term marketing objectives
Short term – for 6 months
Marketing objectives Outcomes Tenure
Sales and promotion Can be achieved at end of the
season because it helps to increases
sales up to 10%
6 months
Long term – for 2 years
Marketing objectives Outcomes Tenure
Pricing To raise profit for a company 1 year
New product To meet out customers satisfaction 1 year
Document a risk management strategy that
7

Identified risk Likelihood
(certain, most likely,
less likely, unlikely,
uncertain)
Consequences
(low, medium ,
high, extremely
high)
Risk mitigation
strategies
(action taken to
minimise the risk)
Advance
technologies
certain Medium Cope up with every
new technologies.
Decline in
economy
Less likely low Low pricing strategy
with high quality
Customer
boycott
Less likely Medium Produce products as
per the needs of
customers
Competitors
certain Medium Vary pricing strategy
as per market needs.
Ensure pitching (promoting) marketing objectives to your group and consider feedback given
Group Marketing objectives Feedback
Stakeholders Growth and expansion, profit
maximisation
Gives positive feedback and suggest
develop new marketing strategies
and promotional tools to raise
profitability (Ashraf and Bhalla,
2018).
Employees Growth and expansion, profitability Provide positive response regarding
marketing objectives and ready to
cope with new strategies which will
be develop in a company.
8

CONCLUSION
By summing up above report it has been concluded that Aldi has strong financial position
and has a brand image in market. By developing best marketing objectives and strategic
direction, company will enhance their customer base and will help in its growth. Report also
concluded that by identifying risk, company must take proper actions to overcome this because
this help in future growth.
9

REFERENCES
Books and Journal
Ashraf, T. and Bhalla, A. S., 2018. Marketing Mix Strategies: A Case Study of Jammu &
Kashmir Cements Ltd. ZENITH International Journal of Business Economics &
Management Research. 8(3). pp.96-105.
Camilleri, M. A., 2018. Integrated Marketing Communications. In Travel Marketing, Tourism
Economics and the Airline Product (pp. 85-103). Springer, Cham.
Gowreesunkar, V. G., Séraphin, H. and Morrison, A., 2018. Destination marketing
organizations: Roles and challenges. In The Routledge Handbook of Destination
Marketing (pp. 16-34). Routledge.
Katsikeas, C. S., 2014. Journal of International Marketing: Objectives, Challenges, and the Way
Forward. Journal of International Marketing. 22(1). pp.1-4.
Lee, J .Y., Kozlenkova, I. V. and Palmatier, R. W., 2015. Structural marketing: Using
organizational structure to achieve marketing objectives. Journal of the Academy of
Marketing Science. 43(1). pp.73-99.
Olson, E. M. and et.al., 2018. The application of human resource management policies within
the marketing organization: The impact on business and marketing strategy
implementation. Industrial Marketing Management. 69. pp.62-73.
Rossiter, J. R., Percy, L. and Bergkvist, L., 2018. Marketing communications: Objectives,
strategy, tactics. SAGE.
Sargeant, A. and MACQUILLIN, I., 2016. Marketing for nonprofit organisations. In The
Marketing Book (pp. 555-576). Routledge.
Solomon, M. R. and et.al., 2014. Consumer behavior: Buying, having, and being (Vol. 10).
London: Pearson.
Thomas, M. K. J. and Thomas, M. T., 2018. A Study on Awareness of Digital Marketing
amongst Students in Twin Cities.
Tuten, T. and Mintu-Wimsatt, A., 2018. ADVANCING OUR UNDERSTANDING OF THE
THEORY AND PRACTICE OF SOCIAL MEDIA MARKETING: INTRODUCTION
TO THE SPECIAL ISSUE.

Online
11

Environmental analysis. 2018. [Online]. Available through: <https://studymoose.com/%EF%BB
%BFstrategic-analysis-of-aldi-essay/>.
12