ALDI and TESCO: A Comparative Analysis of Marketing Mix Elements

This report provides a detailed comparison of the marketing mix strategies employed by ALDI and TESCO, two prominent retailers. The analysis covers the 7Ps of marketing: product, price, place, promotion, people, process, and physical evidence. The report examines ALDI's approach of offering high-quality, own-brand products at low prices, utilizing cost-saving promotional tactics, and maintaining a simple store layout. It contrasts this with TESCO's broader product range, club card discounts, and online and offline distribution channels. The report highlights differences in employee management, store layout, and customer service processes, concluding that while both companies compete using similar strategies, ALDI's focus on organic products and cost-efficiency gives it a competitive edge. The report also includes references to academic sources supporting the analysis.

MARKETING ESSENTIAL
ALDI

INTRODUCTION
• Set of actions or tactics that a company uses to promote its brand or product in
the marketplace.
• ALDI is a well-known retailer store who offers great quality and value for
money services to its customers.
• ALDI makes numerous promotional methods for effective marketing of their
goods and services.
• It often uses TV and newspaper as advertising source to reach customers.
• This presentation includes the marketing mix comparison between ALDI and
TESCO to illustrate each element of marketing mix strategy in detail.

MARKETING MIX COMPARISON
BETWEEN ALDI AND TESCO
PRODUCT
ALDI TESCO
Organization provides goods
which are sourced from selected
suppliers and are branded as
their own to have full control
over price and production which
is ultimate reason to serve the
customers with low price
products with high quality. In
winters, ALDI provides snow
gear and warm camping gear,
thus modifying its product line
as per season and also known as
largest retailer of wine in
Germany.
TESCO provides wide range of
products which includes food
products along with financial
services. Company also offers
free music downloads services
as well.

CONTD.
PRICE
ALDI TESCO
ALDI has strong customer base due to
his cheap price strategies and quality
of goods that has been offered by the
company to their consumers which are
not available with its competitors.
Tesco also attempts to maintain lower
price as possible without reducing the
quality of its products. However,
company uses a club card system in
order to serve discounts to their
consumers. This is the price
promotional strategy of the company.
The major difference among both the
companies is that Tesco is not
providing self branded products to
their customers.

CONTD.
PLACE
ALDI TESCO
ALDI group has more than 18000
stores in around 18 countries and
approximately opens its new store
every week in Britain. Company
procures all the products in bulk
and then store them at local
warehouses along with the surety
of quality of products.
Organization keeps its store layout
very simple to have minimum
costs for the customers. ALDI
ensures minimum waste disposal
while transportation of goods and
services. Company also has online
presence which allows customers
to check products online as well.
Tesco is headquartered in chestnut,
England. Company offers both the
channels to distribute its products
and services with the help of
online as well as offline. Company
focuses more on online channels
and make use of small offline
stores for easier accessibility.
Thus, company is not in favour to
set up more stores or outlets in
physical format in the market
space for the consumers.

CONTD.
PROMOTION
ALDI TESCO
ALDI claims its promotional activities
to be cost saving strategy and
according to them, company invests
negligible amount for promotion and
even does not have a marketing
department in Germany. Company
offers some 'Super buyer' offers which
are only available till stock lasts and
changes every week. Organization
offers such coupons over to customers
in stores or reaches them via email or
newspaper. ALDI initiates number of
PR activities along with projects
concerning corporate social
responsibilities.
TESCO provides lot of exclusive
offers to its customers. Company
provides offers like 'buy one get one
offers' 50% discount, etc.
Additionally, company uses club card
services for discounts. TESCO is able
to provide such kind of discounts
because the company focuses more on
online services rather than offline
stores which helps to reduce the
investment of the company.

CONTD.
PEOPLE
ALDI TESCO
ALDI put store layout in a very
thoughtful manner where everything
divided into proper sections which
helps to assist customers in product
selection in efficient manner along
with lower need of employees
required on every floor. ALDI pays
its employees higher than TESCO
and provide on the job training to
their employees as well.
Approximately, 420,000 people
work in Tesco. Company has great
number of customer assistants who
plays a vital role in the success of
the organization. Tesco also invests
in job training and developments
programs but many analysts argue
that company fails to motivate its
young employees or workers.

CONTD.
PROCESS
ALDI TESCO
Company's store layout makes
product finding very easy and thus
requires less number of employees
because the customers are able to
select the products on their own.
Company keeps limited number of
high quality of products with
nominally priced brands to prevent
customers to getting confused. The
stores include larger barcodes for
quick identification and longer
conveyor belt for fast billing.
Tesco also focuses on processing
customers order such as in offline
stores customers pick up their
products and go to customer
assistants for billing the products.
The facility of self-service
machines are also available for
consumers to make the payment
system easy and effective.

CONTD.
PHYSICAL EVIDENCE
ALDI TESCO
ALDI is known worldwide for its
simplest business processes,
standardization and global pricing.
Approximately, 85% of products in
their stores are from home brand.
Company provides 30% cheaper
products than their competitors. It is
the one and only store which
maintains the same price throughout
the world.
Tesco focuses on easy reachability of
stores as their stores are easy to
navigate with all products well
categorized which helps the
customers to find their products. The
website of Tesco is also attractive and
very easy to operate.

CONCLUSION
• This report has been illustrated the concept of marketing mix.
• From the above report it has been concluded that both the companies are competitors as both are
focusing on almost same strategies and pricing method.
• However, there are some major differences occur between both the companies which led the ALDI
towards the effective introduction of their organic products within the market space.

REFERENCES
• Alrubaiee, L.S. And et. Al., 2017. Relationship between corporate social responsibility and
marketing performance: the mediating effect of customer value and corporate
image. International business research. 10(2). Pp.104-123.
• Blythe, j. And martin, J., 2019. Essentials of marketing. Pearson UK.