Report on Strategic Retail Marketing and Promotions at ALDI

This report provides an in-depth analysis of ALDI's strategic retail marketing and promotion techniques. It highlights the company's use of cost leadership and differentiation strategies to gain a competitive advantage and increase market share. The report discusses how ALDI focuses on offering low-priced, quality goods and services, purchasing stock in large quantities, and enhancing the customer shopping experience. Recommendations are made based on the analysis to help ALDI maintain and improve its strategic approach to retail marketing and promotions. Desklib provides students access to solved assignments and past papers.

Strategic Retail Marketing and Promotions

Strategic retail management and promotion
Executive summary
In this report the emphasis will be given on the strategies which are taken into
consideration by ALDI. In the first phase of the report the emphasis will be given on the
retailing strategies in which the discussion will be made on generic competitive strategies. It has
been analyzed that company considered cost leadership strategy and differentiation strategy so
that it can be easy to grab the large market share in the competitive market. It has been seen that
company is known as the leader of the market as products which are offered to the customers are
low in price as compared to the other competitors in the market. Differentiation strategy is also
related with the services which are different from the competitors present in the market. In the
last phase the recommendations will be made on the basis of the entire analysis. It is important
for the company to focus on the strategies so that growth can be attained in the market.
ALDI Porter Generic Competitive strategy
The porter generic competitive strategy considered by the company is “cost leadership
strategy” in which the company focuses on the broad market by creating the competitive
advantage of low cost. The company also showcases the typical qualities of the leader like
selling no frill goods and services. But these products are sold with the characteristics that are
accepted by the customers. It has been seen that company focuses on offering goods at low price
if comparison is made with the competitors present in the market. It has given growth in the
company and due to this the company attain large market share (Berman, 2015).
It has been seen that company consider cost leadership strategy so that it can be easy to
grab the market share. The customers purchase the product where price of product is low. So, the
focus of the company is to keep to prices low so that customer’s satisfaction can be enhanced. It
has also been seen that services which are offered to the customers are cost effective (Chatterjee,
2017). The company also purchases the stock in large quantity so that cost can be maintained. By
purchasing large quantity of products it can be easy for the company to offer products at low
price to the customers. The company also offers free shopping bags and encourages the
customers to bring their own bags at the time of shopping (Steenkamp, 2017).
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Strategic retail management and promotion
Differentiation strategy is also one of the strategies which are considered by the
company. It has been seen that company focuses on offering quality goods to the customers. The
differentiation strategy which is considered by the company is related with the low price and
high quality products which focuses on the current loyalty of the customers. The brand loyalty
which is maintained by the company helps to survive in the competitive market. The main
differentiation strategy is related with the shopping experience which is enhanced of the
customers when they purchase the products from the outlets (Mortimer, 2016).
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Strategic retail management and promotion
References
Berman, B. (2015). How to compete effectively against low-cost competitors. Business
Horizons, 58(1), 87-97.
Chatterjee, S. (2017). Two efficiency-driven networks on a collision course: ALDI’s innovative
grocery business model vs Walmart. Strategy & Leadership, 45(5), 18-25.
Mortimer, G. (2016). ALDI gives suppliers, as well as shoppers, greater choice: Retail
expert. Journal of the Home Economics Institute of Australia, 23(2), 39.
Steenkamp, J. B. (2017). Global Brand Strategy: World-wise Marketing in the Age of Branding.
Springer.
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