Marketing Strategy Analysis of Aldi Discount Supermarket Case Study

This report provides a detailed marketing strategy analysis of Aldi Supermarket. It begins with an executive summary and company background, followed by an in-depth examination of Aldi's marketing mix, including price, place, product, and promotion strategies. The analysis explores how these stra...Read More

MARKETING STRATEGY ANALYSIS- ALDI DISCOUNT SUPERMARKET CASE STUDY 1
MARKETING STRATEGY ANALYSIS OF ALDI DISCOUNT SUPERMARKET
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MARKETING STRATEGY ANALYSIS- ALDI DISCOUNT SUPERMARKET CASE STUDY 2
Executive Summary
This report below explores the marketing strategy employed by Aldi Supermarket. Aldi
Supermarket an international company that deals with groceries. The main purpose of the report
is to elaborate more on the Aldi’s marketing strategy analysis. The analysis of the company
marketing strategies encompasses the strategies that have been adopted by Aldi from the time of
its operation. The report also discusses other best options which can be adopted by the
organization to achieve its success. Finally, the report recommends that for Aldi to maintain its
competitive advantage should motivate its employees.

MARKETING STRATEGY ANALYSIS- ALDI DISCOUNT SUPERMARKET CASE STUDY 3
Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Company Background.....................................................................................................................4
Marketing Analysis..........................................................................................................................5
Price Strategy...............................................................................................................................5
The Place Strategy.......................................................................................................................6
Product Strategy...........................................................................................................................6
Promotion Strategy......................................................................................................................6
Relation of the Strategies to the Theories, Models, and Research..................................................7
Current Marketing Standpoint.........................................................................................................7
Suitable Marketing Strategies..........................................................................................................8
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

MARKETING STRATEGY ANALYSIS- ALDI DISCOUNT SUPERMARKET CASE STUDY 4
Introduction
This report aims to analyze the importance of marketing strategies in an organizational
setup. Particularly, this report will analyze the marketing strategies applied by ALDI
supermarket which is among the leading discount offering supermarkets. Apart from the low
price strategy, the report will also elaborate on other marketing strategies option that can be
initiated by adopted by the supermarket. Aldi is a supermarket that was founded by the family of
Albrecht; their first store was opened in Germany in 1961. Its headquarters are in Batavia. Since
its operations, the company has opened over 1600 branches in the thirty-five states. It has a total
of 25000 employees. The huge high workforce managed by the Aldi Supermarket can be
attributed to its positive growth.
The company great progress has been contributed by its robust and effective marketing
strategies (Aldi, 2016). Besides aiming for higher profits and business growth, the other main
objective of every organization is to ensure that it satisfies the needs and the wants of its
customers. The satisfaction of the customers is deeply rooted in marketing activities applied by
the company. In fact, marketing it is the backbone of every organization, and therefore, it has
become the ingredient that will result in the success of every business (Furrer et al., 2012, p.
163). Marketing helps by ensuring that the need of the target consumers is met. Secondly,
marketing is the only activity that will ensure that company realizes revenue by making as many
sales as possible. The success of Aldi Supermarket is greatly tied to effective marketing
strategies by ALDI. This has placed the supermarket to be the leading position. In the following
discussion, this report will explore, establish and analyze the marketing strategies behind the
success of Aldi supermarket.
Company Background
Aldi is a private company comprising of two companies which are Aldi Nord and Aldi
Sud. The company business activities are concentrated in Germany as well other regions of the
European Union. It is a company in the groceries industry whereby due to its progression it was
labeled as the Germany’s most an aggressive expansionary supermarket. It comprises of a
hundred grocers who are under operation which is clean, price friendly and also quick in services
offered. Findings reveal that Aldi is the leading private company in globally. This research has
supported the survey that was carried out and ranked Aldi Supermarket number eight among the

MARKETING STRATEGY ANALYSIS- ALDI DISCOUNT SUPERMARKET CASE STUDY 5
stores in the world of all retailers (Mullin, 2015). On the company performance aspect, the
organization has announced its plan of growth in the next five years and is hoping that by 2018,
it will have opened more 2000 stores. This strategic plan will more than 10,000 job
opportunities. In March 2016 the company promised to open their sore in California and by July
the same year, they had opened more than 25 stores. Analyzing from the Aldi’s starting point to
its current position, it is evident that the customer has been focusing on expanding its marketing
activities to claim a large market share.
Marketing Analysis
In business, marketing is the fundamental part of the company anticipating to operate in
the foreseeable future (Adams, 2017). Business success will be largely determined by its
marketing strategies (Olenski, 2017). Similarly, Aldi Supermarket recognizes the importance of
the effective market, and therefore, it has established and utilized marketing strategies for the
benefit of both the company and the customers. The company operates with the philosophy of
acquiring and the same time engaging in activities that will retain the customer. The common
and effective marketing strategies practiced by the company include price strategy, the place
strategy, product strategy and promotion strategy.
Price Strategy
One of the philosophies of Aldi is to ensure that this gives maximum savings to their
customer through discounted prices and provision of high quality products. The company pricing
usually based on 13 percent of the price incurred during procurement, 2 percent for the logistics
and 5 percent for other expenses. Unlike its competitors who extend their working hours, this
does not apply to Aldi, instead its carries out its operation during its working hours which is 11
hours every day. This practice is evident almost in all the Aldi Supermarket stores. The company
is very keen on working hours because the facilities used in business operations bear the cost
which could be used to terminate the customer's cost. Additionally, there are 3 to 7 members
who run the operation in the groceries. However, this is a different case in the company’s mother
supermarket store which involves a large number of employees in running the organization
(Schaulis, 2017). This enables Aldi to achieve a payroll that is low towards their sales turnover,
and as a result, there is a reduction in their prices. According to Lutz (2015), the Aldi success is
widely associated its price strategy.

MARKETING STRATEGY ANALYSIS- ALDI DISCOUNT SUPERMARKET CASE STUDY 6
The Place Strategy
The place strategy enables the companies to reach all target markets efficiently and
effectively (Kartawinata & Wardhana, 2015, p. 71). The Aldi Supermarket employs this
approach to limit the assortment activities in their stores. Usually, the Aldi Supermarket stores
are relatively small when compared to other stores bared by other supermarkets. Their floor
space is 650m by 100m. Their store's layout bears only four aisles. The company displaying
strategy appears to be effective regarding cost. The stores bear some parking space for its
customers. This is also a strategy of attracting customers. The study also reveals that when Aldi
is selecting a site for their store, the take into account of the area population which is expected to
be 30000 and above (Gupta, 2016). In addition, they ensure that their stores are visible and are
located near the main road to enhance the accessibility.
Product Strategy
The Aldi’s selling philosophy appears to be different from that of others; this is because
the products which have been branded have less operational profit. However, Aldi engages in the
selling of the products which are equal to the brand. Aldi being a retail chain business, it lays
emphasis their core price competition philosophy. Therefore, in order to sell their products at
discounted prices, the company engages in buying products in large quantities to bargain for the
best price that will enable them to sell at a price affordable to their customers (Fitzpatrick, 2015).
Aldi Supermarket engages in availing different products to their customers every week. The
company customers’ are usually excited by the availability and also the affordability of products.
In order to promote the products, they use posters to give the customers ideas of the products
which will be availed.
Promotion Strategy
Among the strategies adopted by Aldi, its promotion strategies appear to be unique. This
is because there is a correlation between its brands and the promotion techniques. The company
promotion approach is based on the notion that their brands are equal in terms of quality to other
existing brands. For example, Heinz tomato (Mckeown, 2015). This type of promotion enables
the company to focus promotion activities on quality of their products and also the value it has
towards money. The company also uses humor in their advertisements to convince their target
market.

MARKETING STRATEGY ANALYSIS- ALDI DISCOUNT SUPERMARKET CASE STUDY 7
Relation of the Strategies to the Theories, Models, and Research
The Aldi stores have progressed effectively in its marketing strategies thereby taking the
largest market share in Germany amongst other countries. It is clear that model being applied by
Germany retailers provide room for success. Through the internationalization of the various
concepts which had been brought into use in the retail market of Germany have facilitated to the
supermarket success. The marketing strategies are largely linked to internationalization theory
(Manfred & Julia, 2012). The internationalization approach has not only led to high turnovers but
also to relative cost to the penetration of the market externally. This has helped the company to
save costs associated with entrepreneurship risks and products’ distribution.
Current Marketing Standpoint
Currently, the main objective concerned with marketing is to ensure that the company
reaches many markets in the international arena. Their main emphasis will be focused on
providing products that are of a higher quality to their customers to maintain continuous
purchasing behavior. This will be accompanied by producing products and services that are
equivalent to the money value of their customers. Another marketing strategy is to offer their
products to customers at affordable prices. Besides, the Aldi Supermarket is currently
supporting the environment, the nutrition, and health. The company does this by ensuring that
their products reach in the remote regions as well engaging in business activities that are friendly
to the environment. They are also concerned with the elderly whereby they avail them with the
affordable products. The Aldi's performance strategies seem to be competitive and are
accompanied by implementing a method that will enable it to survive in the competitive market
(Gale, 2017). The competitive advantage of Aldi Supermarket is associated with the strategy of
product differentiation and effective business operations.
From the analysis of other marketing tools such as the PEST analysis, it evident that Aldi
is largely concerned with its business environment. This evident from the fact that, the company
assess its environment and recognizes negative environmental impact as it arises. For example,
Aldi Supermarket strategies to take care of factors such global recession which motivates
customers to buy products that are not expensive but are of high quality. In the event, this occurs
Aldi engages in attracting their customers through extensive promotion activities.

MARKETING STRATEGY ANALYSIS- ALDI DISCOUNT SUPERMARKET CASE STUDY 8
Suitable Marketing Strategies
For Aldi to be assured of success, it can initiate the strategy of selecting its policies
effectively; this is because for every organization to run smoothly, the rules governing them must
be effective to enhance the management functions. They must also ensure that they pay high
wages to their workers, this is because fair compensation usually motivates the employees to
work towards the success of the organization. This means that the company employees will be
encouraged to take part in the marketing of the company brands. The company should also
delegate responsibility in order to capture the commitment of the employees towards the overall
business operations (Dunford et al., 2012, p. 22). The company should get workforce in order to
create a continuous progress. Having embraced the above strategies, Aldi will be able to remain
at the leading position despite the stiff competition in the market.
Conclusion
The retail supermarket industry in Australia is turning out to be very competitive and also
concentrated. Despite the stiff competition, Aldi Supermarket has been able to show a
continuous growth. The success has been associated with its marketing strategy whereby the
company has employed strategies that are unique from their competitors. Aldi has also engaged
in product differentiation, a strategy that has enabled their products to have the largest market
share. In conclusion, the Aldi's effective marketing strategies that comprise provision of products
of high quality, products at lower prices, and the elimination of unnecessary functions and the
establishment of many stores in different parts of the world are creating long-term relationships
with their customers.

MARKETING STRATEGY ANALYSIS- ALDI DISCOUNT SUPERMARKET CASE STUDY 9
References
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[Accessed 16 September 2017].
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Concentrated and Highly Competitive Market, Sydney: Macquarie University.
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correspondence on marketing performance—. Journal of Strategic Marketing, 5(1), p. 161–183.
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Kartawinata, B. R. & Wardhana, A., 2015. Marketing Strategies and Their Impact on Marketing
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Research, 4(2), pp. 69-74.
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[Online]
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[Accessed 15 September 2017].
Manfred, T. & Julia, W., 2012. Comparing the Strategies of Shop Operation Internationalization
of Limited-line Grocery Discount Stores by Aldi and Lidl. [Online]
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MARKETING STRATEGY ANALYSIS- ALDI DISCOUNT SUPERMARKET CASE STUDY
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