In-Depth Analysis of Aldi's Marketing Mix and Strategic Approaches

Aldi, a prominent discount supermarket chain founded by Karl Albrecht and Theo Albrecht in Germany, operates over 10,000 stores globally with a turnover exceeding €50 billion. The report delves into Aldi's marketing mix, emphasizing the four P's: product, price, place, and promotion. Aldi offers competitively priced products similar to its competitors but ensures quality control by sourcing from selected suppliers. Their pricing strategies include unit pricing, market penetration for new products, and psychological pricing. Aldi maintains a vast store network across 18 countries with unique and simplified store management techniques, reducing customer costs. Additionally, they engage in strategic promotions through seasonal discounts and media marketing while leveraging their online presence to inform customers about offers. The report concludes that Aldi's innovative strategies in various sectors allow it to maintain competitive advantage primarily through effective pricing and promotion tactics.

ENGLISH SKILLS

Table of Contents
Aldi and its Marketing Mix..............................................................................................................1
REFERENCES................................................................................................................................3

INTRODUCTION
Marketing mix is the process of putting right product or combination of product in
the right place, at the right time and at the right place. It consists of 4 p's in condition of
manufacturing company and 7 p's in service industry that are product, price, place,
promotion, physical evidence, people and processes. To identify the importance of
marketing mix in the organisation, Aldi have been selected and the report includes the
marketing mix of the Aldi.
Aldi and its Marketing Mix
The company is common brand for the discount supermarket chain which is
having more than 1000 stores in the 18 countries in the world. It is founded by two
partners that are Karl Albrecht and Theo Albrecht, and headquartered in Germany as well
as having turnover more than €50 billion (Steenkamp, 2017).
Marketing mix
Product: They serve affordable food products of the same quality at which its competitors
offers. They source their products from the selected suppliers and then brand as that
product as own. Ultimately they have control over the production and distribution of the
goods. They price their products lower than compare to the other supermarkets. They
mainly work in the food category but they also deal in the other sectors such as fresh fruits
and vegetables, beauty and health products, stationary, cloths, soft toys, household goods
and electronic products. They never change on their food products but continuously make
experiment on their non food products. They also offer warm-camping gear and snow gear
in winters, thus modify their goods as per the season (Datta and van Heerde, 2017). They
also have mobile virtual network in the Australia, Belgium, Netherlands and Germany
with the name Aldi Mobile and Aldi Talk as well as they have gas station in Austria where
they have more than 66 card operators for gas service.
Price: The company have strong customer base because they offer products at the low
rates as well as they offer those products also which is not available to its competitors.
They focus on three pricing strategies that are as follows:
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 Unit pricing: They use unit pricing for their grocery sector so that customers can
able to compare with the other brands (Steenkamp, 2017).
 Market penetration: They charge low price for their new products so they can
able to attract large customer for their new goods.
 Psychological pricing: if there is minor difference in the price, it will create huge
different in the mind of customers, they price their products in the intelligent
manner such $4. 78 instead of $5
Place
Aldi have more than 10000 stores in the 18 countries and a new store open in
every week in the Britain. They maintain their store in unique and simple way so that they
charge very low cost from their customers (Hamzah and Sutanto, 2016). They
manufacture their products in bulk from various suppliers and local warehouse. They are
also having online presence which help consumer to see product availability with the
different prices.
Promotion
They do not need have more expenses on marketing their products as they always
provide some discount to the customer according to the season which is a good promotion
activity. They also use print, display and electronic media in the UK and US to promote
their stores and products. The use email marketing to inform customers about different
offers they made (Datta and van Heerde, 2017).
CONCLUSION
It can be conduced form the report that Aldi exist is varieties of sectors such as
grocery, food items, cloths, soft toys etc. and they serve these products in very reasonable
cost so they can able to gain competitive advantage on the basis of their pricing strategies.
They use very innovative promotion strategies such as print and electronic media to
market their products which helps them to attract large numbers of customers.
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REFERENCES
Books and Journal
Hamzah, S. B. and Sutanto, J. E., 2016. The Role of Marketing Mix (7P) for Consumer Buying
Decision Pastry Cake in Malang City.
Datta, H. and van Heerde, H.J., 2017. How Well Does Consumer-Based Brand Equity Align
with Sales-Based Brand Equity and Marketing-Mix Response?. Journal of Marketing.
81(3). pp.1-20.
Steenkamp, J. B., 2017. Global Marketing Mix Decisions: Global Integration, Not
Standardization. In Global Brand Strategy (pp. 75-109). Palgrave Macmillan UK.
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