Holmes Institute HI5004 Marketing Management: ALDI Tactics Report

This report analyzes the marketing tactics employed by ALDI, a German supermarket retail chain, to compete in the global market. It examines ALDI's marketing mix, focusing on the 4Ps: product, price, place, and promotion. The product strategy emphasizes affordable, branded food items and the potential for expansion into non-food categories. The pricing strategy highlights ALDI's low-pricing and penetration pricing tactics, including unit pricing and psychological pricing. The place strategy discusses store location, warehouse facilities, and adapting to local preferences. The promotion strategy emphasizes the need for increased advertising and communication through various channels to inform customers about offers and discounts. The report references several academic sources to support its analysis and concludes that effective implementation of these tactics will provide ALDI with a competitive advantage in the retail market.

Running Head: ALDI
ALDI Marketing Tactics
Report
System04104
5/17/2019

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Marketing Tactics of ALDI
The main strategy of ALDI is to provide quality products on low prices to its customers.
ALDI is a giant supermarket retail chain store of Germany and operates its retail business in
most of the European countries and in Australia as well. There are large numbers of
competitors such as Woolworths, LIDI, Wal-Mart, Safeway etc. in the retail market that gives
a strong competition to Aldi. To face the competition Aldi needs to develop a strong
marketing tactics that helps it to survive in the retail market.
Marketing Mix strategy of ALDI to face the Tough competition in the Market
Marketing mix of Aldi covers the 4Ps (product, price, place, and promotion) and helps to
analyse the company. The Aldi needs to develop following strategies according to its
marketing mix:
1. Products: Aldi needs to provide affordable food products to its customer. The quality
of the products should be branded. Aldi should focus on reliable suppliers that provide
best quality products and raw material. The Aldi have power to manipulate the pricing
of products because of its own labelling and branding facilities (Kamaladevi, 2010).
This feature of the company allows it to charge low prices for its product in compare
to other competitors. However, apart from the food items the company can also focus
on beverage products, health and beauty products, clothes, and electronic and other
household items, fresh vegetables, and stationery etc. The company should try to
experiment with non-food items as well and should provide these products on low
prices with high quality. Aldi is known for its wine products in Germany but the
company should focus on other beverage products and modify its products according
to the seasonal demand of customers (Bolton, Shankar, and Montoya, 2010).
2. Price: Aldi is known for its low pricing strategy. The penetration pricing strategy of
the company gives competitive advantage over other competitors. Although, the
company can charge unit pricing strategy for its grocery products so it helps the
customer to compare the price. In case of high competition, Aldi should charge low
prices in compare to its competitors. To implement this low pricing strategy and for
penetration pricing strategy, Aldi can buy the products in bulk which enable the
company to buy products from supplier on a bargained price. However, the company

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can also use psychological pricing tactics in which company can provide a minor
difference in the price that leads to a greater impact in the mind of customers (Glanz,
Bader, and Iyer, 2012). For example, $3.99 instead of $4.
3. Place: Aldi should focus on expansion its business in all every big cities and should
open its stores in those areas where operating cost will be low. It will help the
company to charge minimum cost for the products and it also helps to reduce its
operational cost. Aldi should also focus on its warehouse facilities. Aldi should buy
the raw materials and finished goods from the suppliers in bulk and should store it in
near warehouse (Vandevijvere, Waterlander, Molloy, Nattrass, and Swinburn, 2018).
It helps the company to reduce the transportation costs. Apart from this, if Aldi uses
environmental friendly equipment in the stores it will help to create a positive image
of the company in the mind of local people (MacMahon, Smith, and Lawrence, 2015).
Aldi should also consider the local taste and preferences in its stores. For example, it
should name its stores on the local language that attract local people towards the
stores.
4. Promotion: Promotion tactics is the crucial factor of any marketing strategy. It has
been seen that Aldi spend very low amount on its branding or promotion. However,
the company does not keep any marketing department in Germany (McNeill, 2012).
However, to face the competition and make aware people about the new products and
services, Aldi should focus on proper advertising and promotion strategy. Aldi should
communicate about its offer, rewards, and discounts on the products to the customers.
It can be done through local newspaper, radio channels, and TV channels. Aldi can
also inform its customers through mail or social media channels about its low pricing
strategy, available discount on products, and what benefit it provides to its customers
after shopping in Aldi stores. It can also communicate about the available stocks and
offers, such as offers available till stocks or buy one get one free etc.
Aldi can implement these tactics in its marketing strategies (in 4Ps) which will definitely
provide a competitive advantage to the company over its competitors.

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References
Bolton, R. N., Shankar, V., and Montoya, D. Y. (2010). Recent trends and emerging practices
in retailer pricing. In Retailing in the 21st Century (pp. 301-318). Springer, Berlin,
Heidelberg.
Glanz, K., Bader, M. D., and Iyer, S. (2012) Retail grocery store marketing strategies and
obesity: an integrative review. American journal of preventive medicine, 42(5), pp. 503-512.
Kamaladevi, B. (2010) Customer experience management in retailing. Business Intelligence
Journal, 3(1), pp. 37-54.
MacMahon, A., Smith, K., and Lawrence, G. (2015) Connecting resilience, food security and
climate change: lessons from flooding in Queensland, Australia. Journal of Environmental
Studies and Sciences, 5(3), pp. 378-391.
McNeill, L. S. (2012) Sales promotion in the supermarket industry: a four country case
comparison. The International Review of Retail, Distribution and Consumer Research, 22(3),
pp. 243-260.
Vandevijvere, S., Waterlander, W., Molloy, J., Nattrass, H., & Swinburn, B. (2018). Towards
healthier supermarkets: a national study of in-store food availability, prominence and
promotions in New Zealand. European journal of clinical nutrition, 1.