Marketing Essentials: Aldi vs Tesco Marketing Mix Analysis Report

This report provides a comprehensive analysis of the marketing strategies employed by Aldi and Tesco, two prominent supermarket chains. It begins by defining the roles and responsibilities of the marketing function within an organization, emphasizing its importance in customer relations, finance, and human resources. The report then explores how marketing relates to the wider organizational context, examining the interrelationships between marketing and other key departments like production, HR, finance, and sales. The core of the report focuses on a comparative analysis of the marketing mix of Aldi and Tesco, delving into their product offerings, pricing strategies, distribution channels, and promotional activities. Finally, the report concludes with an evaluation of a basic marketing plan for Aldi, identifying key strengths and areas for improvement. The analysis draws upon academic research and real-world examples to provide a practical understanding of marketing principles in the retail sector.

Marketing Essentials

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Roles and responsibilities of the marketing function........................................................3
M1...........................................................................................................................................5
P2 Marketing relate to the wider organisational context for the chosen scenario..................5
M2...........................................................................................................................................6
D1...........................................................................................................................................6
TASK 2............................................................................................................................................6
P3 Marketing mix of Aldi in comparison to Tesco................................................................6
M3.........................................................................................................................................10
TASK 3..........................................................................................................................................10
P4 Produce and evaluate a basic marketing plan for the chosen organisation.....................10
D2.........................................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing is referred to be an approach through which a business promotes its products and
services in the target market. The marketing function is not confined to promotion of products as
it also includes market research and advertising (Aaboud and et. al., 2017). The marketing has
become crucial function in an organisation as it is identified to be an approach through which
communication with consumers can be established. The managers and leaders in an organisation
have been directing their efforts to launch a successful business campaign which will helps an
organisation in reaching unmatchable position in the market. Aldi is the common brand of two
discount supermarket chains with over 10,000 stores in 20 countries, and an estimated combined
turnover of more than €50 billion. In order to achieve growth, it needs to innovate its present
working system. This assignment focuses on marketing activities which have been carried out by
the Aldi. It is a supermarket chain operating in the market of the United Kingdom. The
marketing function will be explained along with its interrelation with various other functions of
an organisation. The use of marketing mix in context of organisation will be carried out along
with identification of right strategy for the business.
TASK 1
P1 Roles and responsibilities of the marketing function
The concept of marketing is defined to be performance of business which results in
transfer of ownership of goods and services of an organisation. It can also be defined to be
primary function of an organisation which is assures that there is ideal fulfilment of needs and
expectations of customers in the ideal manner. This definition focuses on the social and
economic aspects of marketing and makes sure that consumption needs of prospects are supplied.
The major roles and responsibilities which are being carried out by the marketing function are as
follows:
Customer: The primary role which has been catered by the marketing function is to make
sure that needs and demands of the customers are being fulfilled (Aad and et. al., 2012). The
marketing manager in this feature plays a crucial role and makes sure that suitable market
research is conducted and leads to identify distinct expectations of consumers which are not yet
being served by the company. The marketing efforts which are undertaken by an organisation

assures that value offering are being supplied to consumers which is being rewarded with
customer loyalty and repetition of sales.
Finance: The marketing activities which are undertaken in an organisation helps in
enhancing the financial capacity of the firm. Through the process of marketing the referred
enterprise identifies the future demand of cash and communicate same to the concern
department. This way the finance section takes it decisions accordingly and smooth functioning
at the work place.
Human Resources: To carry out the day to day operations of Aldi in effective manner it is
important that the work force which is employed by the enterprise is efficient. For same
marketing is of great help. Management concern for this division ensures that it uses appropriate
mode of advertisements to attract the capable candidates to apply for vacancies in business
(Babin and Zikmund, 2015).
Producing marketing and promotional materials – this is one of the most important role
performed by the marketing department in Aldi. It ensures that the strategies of promotion are
constructed in a manner that it can highlight the core products of the firm in which Aldi is
dealing in. apart from this the latest process are produced which can have competed with others
and can help enterprise in achieving competitive advantage.
Monitoring and managing social media – These days to bring improvements in own
products it is important that customers feedbacks are recorded as they are relevant and help much
in growing. The marketing department takes care of this and does timely audit of the comments
that are posted on the networking sites about the brand and its various services. Reaction to same
are given by solving quarries if there is any and adopts the advice if found to be productive for
business.
Produce inside organisation interaction – To keep the employees happy and informed it is
required that they are delivered with the quality information about company’s profile, vision
mission etc. For this purpose, again marketing department plays an important role as it
communicates with the work force through different medium like newsletter and marinating the
work force updated (Baines, Fill and Page, 2013).
Competition – There is close rivalry in the retail sector and in order to compete it is of
great importance that high quality of products is delivered in the market so that they are prefer
over the others. Apart from this it is also crucial that Aldi maintain the latest product line so that

no potential demand in market is missed. For same marketing department plays an important role
as it investigates the trends in market and gives the relevant information to the production team
of company. it further does the work accordingly and help in capturing greater market share.
M1
A marketing manager performs a range of functions and roles like developing the
marketing strategies and plans. Customer needs are identified by the officials of promotion
department so that accordingly the strategies can be planned and hence the productivity of
business is raised. It monitors the different factors that can influence the business and its
operations.
P2 Marketing relate to the wider organisational context for the chosen scenario
In the above discussed matter it was identified that marketing lays an important role in Aldi by
performing range of functions. The role of this referred division is not just limited to itself but is
also elated to the wider organisation context (Baker and Saren 2016). The interrelation between
different departments of an enterprise leads towards achievements of the organisation goals and
objectives. Planning is done in a way that required assistance is given by each section to one
anoter so that together they can do full capacity utilisation of the resources all other to each
section of business. This can be understood through the following discussion in more details:
Marketing versus production – To produce in right quantity it is important that the
production department is communicated with right information so that accordingly they can plan
their future proceedings. Marketing department does the research of present situation and collect
data for the estimated sales which are possible in the future. This way accordingly the required
amount of stock is maintained and hence over and under stock situations are avoided.
Marketing versus H.R – To recruit effective work force it is important that proper
marketing of the present vacancies is done so that accordingly the work force apply for the same
job. Only if the marketing department will choose the right mode of promoting brand quality
applications will be received.
Marketing versus finance – In the given enterprise both finance and promotion section are
interlinked though their function is entirely different. Funds are required by the marketing
department in order to carry out its distinct roles and same are allotted by the cash division.
request is made on time by the marketing head which helps the financial section to plan
allocation if funds. Apart from this there are different sources of raising capital for business and

also there are range of options in the market where investment can be made and profit can be
earned. This work of identifying best suitable option is done by the marketing department as
through evaluating the surroundings it suggests the best possible option for business. This way
the productivity of financial department is raised and business leads towards growth in the long
run.
Marketing versus sales – It is one of the most interlinked departments of any enterprise. in order
to achieve the sales targets it is important that effective mode of promotion is used as it ensures
maximum sale. There are different options through which costumers can be reached and
informed about the new or existing products. With the help of different alternatives to market the
product Aldi does it sales and marinating continuity in the flow of revenue in business. apart
from this the selling department also needs to have the data about the market response as how
customers have reacted to the products of firma and again this information is provided by the
advertising section (Banerjee, 2013). The officials of promotion department interact with the
market and collect relevant information and further provide same to the sales section. It helps in
developing the total sales in long run and hence productivity of business is improved.
Marketing versus production – To do the manufacturing of right quantity of products it is
important that true demand in market is communicated to the production team so that they
accordingly plan their work. Marketing department by doing research of surroundings gather the
data regarding how much is demanded by the costumers and what level of quantity can be sold in
the present market conditions. This way the marketing department helps organisation to grow
and expand in the coming time (Braslow, 2015).
M2
In order to maintain continuity and raise the productivity of an enterprise the
interrelationships between the different departments with marketing function is of great
importance. It assists with the required information and data which is crucial and helps each
section to use the resources to their full capacity. It has a strong interrelationship with other
important departments of the referred enterprise like finance, human resource etc.
D1
According to Caporaso,and et. al., (2010) marketing is playing a number of different
functions in Aldi in order to market products in the market. for same it is taking assistance of
financial department as through this it receives funds to carry out its important activities. It does

the market research so that the production team is provided with the knowledge of what is best
for them and how through using the distinct modification modes the demand for existing firm
can be raised. It uses the concept of marketing mix which included deciding upon the product
price place etc. so that the best decision is taken in their context.
TASK 2
P3 Marketing mix of Aldi in comparison to Tesco
Marketing mix is an important tool through which an enterprise can take its various
decisions and can hence achieve the competitive advantage. It includes those factors which play
an important role in the success of any business and hence necessary that decision regarding each
are taken with care. Every different enterprise has its own way of doing judgements of marketing
mix elements and they influence the productivity as good decision may help business to grow in
long run. Both Aldi and IKEA has its own way of using the concept of marketing mix which is
discussed below:
Product – This is the main component of the referred concept. It is important that the decisions
regarding selection of best product is done so that the enterprise can achieve success and growth
in the long run. Aldi is known for delivering economic goods in market which helps it in raising
the total sales value (Chamorro-Mera, Miranda and Rubio, 2014). It claims that the product
provided by it are of equal quality which are offered by other in the same brand supported with
controlled value of same. Apart from this it does effective selection of suppliers who deliver the
raw material at reduced price and also very choosy with the choice of supply chain as all these
factors helps the firm in controlling its total cost of the business. Apart from food products it is
dealing in other varieties also which shows that it is attracting the customers with the wide range
of variety which is at comparatively lower cost and can be afforded by different segments of
society. Aldi keeps on modifying its product line by exploring the seasonal opportunities which
further add more revenue to the enterprise. This is different in case of Tesco. The product offered
is of comparatively less quality in comparison to Aldi.
Price – This is the most sensitive area which has its great impact on the profit margins of the
enterprise. It is important that company offers its products on a value which is widely acceptable
by all and has the capacity to compete others in the same field. Aldi is very much effective in this
segment. It maintains the lower cost without doing any compromise with the standards of the

offerings which makes it a superior brand (Clow and James, 2013). The strategies formulated for
price fixing in this enterprise are market penetration, psychological pricing, loss leader pricing
and competitive one. It attracts customers with the lower price of a particular segment and this
way it influences them to buy other commodities too by creating a demand for same. As all the
different variety is made available under the same roof it is easy to influence the customer to go
through other essentials too and hence the overall sales are increased. apart from this through
psychological pricing it motivates the customer that the value it’s paying is worth spending.
Prices are fixed in an intelligent manner like $3.78 instead of $4. It makes a huge difference in
the minds of customers. Thereafter it offers a new launched product at a very low price which
makes it easy to enter in the market and gain a good share. The prices of Tesco store products are
high in comparison to Tesco. They keep their profit margins high. it uses the system of club
cards to provide advantage to its various service users.
Place – This is essential that to earn higher returns business take effective judgment choosing the
right location for operating its business. Aldi is having 8000 stores that are spread in 18 countries
and is still planning further new stores in distinct locations of Britain. The layouts are kept
simple so that total cost of the firm is kept low (Cohen and et. al., 2010). Whereas the stores of
Tesco are huge and fancy which adds further additional cost to the Tesco products and making
them costly. It is sized on an average area of 1000 sq. metres which are managed using effective
work force.
Promotion – It is the department through which the product is introduced in the market
and it is important that effective strategies are formulated for same so that maximum market
share is covered. Aldi believes on saving the marketing cost so that the same amount can be used
in other productive areas. Use of promotional tools are used in only those areas where they are
actually required. Offers are given at times when clearance of stock is the main motive and for
same advertisements are given on the newspapers and other platforms which are not much
expensive and can deliver better results to the firm whereas Tesco promotional tools are
different. It invests much on promotion and uses different tools like television, social media print
media hoardings and promotional events etc.
People – To carry out the day to day operations of business it is required that effective
human resource is recruited and are treated well as only than the desired results can be achieved.
Aldi provides an effective working conditions to its work force which helps

Physical evidence – To promote sales it is important that the layout and physical appearance of
the of the stores are kept attractive. Tesco products are well labelled and are supported with
proof which makes the products offered more authenticated. Aldi follows very simple process to
keep the business operations less complex. Home brands are given more share in the total variety
of products which are offered to the public. Efforts are given towards keeping the price of
different commodities constant at global level which further differentiates both Aldi and Tesco
(Cua, Reames and Chai, 2013).
Process – The sheer layout of Aldi is simple which makes it easy for clients to make their
purchase. Consumers are given with less power as their involvement in business process is not
much high. Whereas on the other hand in Tesco customers are well treated as it employees
higher amount of work force which is capable of giving the desired level of customer services.
Basis Tesco Aldi
Product Food, clothing, electronics and financial
services
Fresh fruitlets and vegetables, Health and
beauty products, Apparels, Stationery,
Automated products, domestic goods and
Soft tools.
Place Online and offline
6900 stores in 11 countries
8000 stores that are spread in 18 countries
Price high Low
Promotion Hoardings, ads and other social events Above the line and below the line
promotional strategy is used by the
management.
Physical
evidence
It uses common logos, labels and specific
colours to provide an evidence to clients.
It maintains the same product price for all the
groceries throughout the world.
People More than 480,000 work force has been
appointed by Tesco in 11 distinct market
areas.
It has appointed less employees as its
strategy is to be more particular with the
allocation of different products at distinct
places so that customers can help themselves
in doing the selection of what they want.
Process It is focused that least changes are made in It has an effective plan of raising its sales

the code of conduct and service feature is
used to its full capacity (Dioko, 2016).
using the concept of effective placement of
distinct products in a way that the time
duration between selection of items can be
reduced.
(Figure 1Comparision between Tesco and Aldi)

M3
In order to achieve the goals and objectives of the business a proper plan is formulated
which includes the mission and vision of the enterprise. Different strategies like targeting and
SWOT analyses of business will be done that helps in identifying the possible measures can be
taken to increase the present scale of sales.
TASK 3
P4 Produce and evaluate a basic marketing plan for the chosen organisation
Executive summary - In order to expand and achieve the desired goals and objectives it is
important that effective marketing planning is done so that the resources invested in distinct
areas gives their maximum results and full capacity utilisation of same are maintained. There are
distinct factors that needs to be evaluated well in advance so that the expected results are
achieved in the long run.
Vision and mission – Vision is the belief with which a particular enterprise carry out its
daily operations. The referred enterprise is very clear. It focuses on raising the quality of
products supported with huge savings. Outstanding value of products is maintained which assist
it in improving the total market share.
Situation analyses – In order to evaluate the efficiency level of referred enterprise internal audit
can be done. It is a process through which the strong and weak areas of business are identified
which further assist in taking the different decisions for the firm (Harris, Schwartz and Brownell,
2010).
Strength Weaknesses
– The most important and effective area of the
referred enterprise is that it is using the store
areas very effectively by keeping the layout
simple and easy for its customers. As the
distinct sections are made for variety of
products costumers do not find it difficult to
get what they want. It further reduces the need
of more man power through which much cost
is saved. Thereafter another strength with this
– though Aldi has a range of strength but same
suffered due to few weak areas too. As the
referred enterprise is known for delivering
goods at cheap price it is considered as of low
quality by those customers who judge the
standard of offerings against the value charged
for same. It has not expanded its operations on
scale at which it can compete the other big
brands in same field and therefore suffer a loss

unit is that it delivers cost effective products
which creates own demand in market and this
way it achieves the competitive advantage. The
promotional tools used by the firm are less
expensive which assist in using the save cost in
other productive areas. By maintaining good
quality of items it has created a different image
in front of the customers and has achieve
consumer loyalty which contribute in the
growth of business in the long run. Aldi is
having a very strong presence in German and is
earing higher returns from that part of the
world.
of distributed demand. The range of products
in which Aldi is dealing in is less than
compared to Tesco and Sainsbury which makes
it less demanded in their comparison. Lastly,
the biggest weakness of this unit is that it
spends very less on marketing which is one of
the most important aspect for growth.
Opportunities Threats
As discussed above Aldi is having very less
promotion activities it should concentrate more
on same and develop the advertising so that it
can attract more customers and can generate
revenue in the long run. It can explore to the
developing countries like India where there is
immense population and welcomes economic
products with great spirit. This way can
achieve the economies of scale. Apart from this
even in the domestic country it can expand its
market shares by raising the total number of
present stores. It can adopt the strategies from
Tesco for instance having express stores by
developing its total work force as this will have
major contribution in raising the present sales
(Business Essentials Information Session,
Due to change in the external surroundings it is
possible that the operations of business do get
effected. Any unfavourable political change
may affect business by effecting its
profitability as through this restriction further
increases. Apart from this a new entry in the
same field may also raise pressure on Aldi to
maintain their minimum range of sales.