Marketing Report: Analysis of Lidi in the UK Grocery Retail Sector

This report provides a comprehensive marketing analysis of Lidi within the UK grocery retail market. It begins with an introduction to the importance of marketing planning and its influence by internal and external factors. The main body of the report covers various aspects of Lidi's marketing activities. Task 1 involves conducting market research, including SWOT and PESTLE analyses, competitor matrix, Boston Consulting Matrix and Ansoff matrix. Task 2 focuses on determining customer segmentation for Lidi. Task 3 describes the 7 P's of marketing mix and their relevant approaches. The report concludes with a summary of findings and references to the sources used. The analysis considers Lidi's strengths, weaknesses, opportunities, and threats within the competitive landscape of the UK grocery retail sector, including key competitors such as Tesco, Morrison's, and Sainsbury's. The report aims to provide insights into Lidi's strategies and market position.

INTRODUCTION TO MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
1. Conducting marketing research on current UK Grocery retail market...................................3
PESTLE analysis- ...........................................................................................................................4
TASK 2............................................................................................................................................8
Determination of which segments of Lidi will provide higher yield of customers. ..................8
TASK 3 ...........................................................................................................................................9
Description on the 7 P's of marketing and its relevant approaches. ...........................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The effective planning is one of the essential elements in order to develop and ensures
about marketing objectives. Without proper planning, activities can be inappropriate. The
internal and external factors can influence the overall activities of marketing.
Under this, it is essential to understand the main ethical issues that how an enterprise
provide products to customers and perceived by them and it can affect the success to an
enterprise (Wilson, McCabe and Smith, 2018).
The present report will focus over activities of Lidi, as it is the main competitor of
TESCO and Lidi works as Grocery retail market in UK. current UK grocery retail market. In
addition to this, it covers following aspects such as identification of specific areas for products;
customer segmentation and 7 P's Marketing Mix model to target identify segments. The main
competitors of this organisation are Morrison, Sainsbury’s and Tesco. The main aim is to provide
the depth insights about the each activities of an enterprise.
MAIN BODY
TASK 1
1. Marketing Research on current UK Grocery retail market
In order to conduct market research activities on the effective phase, it is essential to
cover following things as SWOT, PESTLE, Competitor matrix, Boston consulting Matrix and
Ansoff matrix.
SWOT Analysis-
SWOT analysis is helpful to measure and understand strengths and weaknesses. With the help of
this, an enterprise gets help to develop and formulate strategies that will be helpful to deal with
organisational activities.
This is defined in the following manner -
Strengths-
1. In this, strong organisational structure allows the firm to sell its products at incredibly
lower rates.

2. Under this, there are number of stores in the entire UK, and it giving the great exposure
to its customer by prioving variety of products..
3. This enterprise is having strong online presence and selling.
4. It is having almost 10000 stores across the Europe so it can be said that it is plasying
major role in relation to attract the wide number of customers.
Weaknesses
1. This firm is relatively small as comparison to other brands.
2. The major weakness of this firm is having large number of rivalries. Thus, it affects the
whole activities in large manner.
Opportunities-
 This enterprise works to capture strong hold in European markets.
 This firm is taking various activities in order to have expansion into growing economies
like Africa, Asia etc.
 With the help of innovation, this firm is able to have large expansion (Bernstein, 2018).
Threats-
1. In this, the expansion of international brand will work as to have enhancement in increase
competition.
2. Affordable rates of products so that they can able to compete with other retail chain
stores presents in UK.
3. One of the major threat under this is to bring changes as per the conditions of market or
it is time consuming and costly process. \
Competitors-
The one of major competitor of this brand is as are Tesco, Morrison’s and Sainsbury’s.
PESTLE Analysis-
It is essential to determine PESTLE analysis of Lidi to have potential expansion into UK market
so it is able to earn large amount of productivity and profitability.
This is defined as-
Political Factor- Under this there is number of political and legal factors that affect the working
of UK Grocery Retail Sector (Bernstein, 2018). In this way, This retail firms are obliged to
follow all rules and regulations that have its direct impact over competitors policies and

strategies. The Lidi needs to follow current legislations for employment, environmental, financial
services and health issues.
Economical- In this, economical factor will be inclusive of factors as are spending of consumers,
inflation, disposal income, interest rates, monetary issues, unemployment and all kind of
financial crisis which can affect the working enterprise in large manner (Kasemsap, 2018).
Under this it can be said that one of the main implication as per the recessions is to cut the
expenses and deal with the profitability and productivity.
Social Factor it can be said that social factor of LIDI affects the changes in lifestyle of people. It
can be said that changes in lifestyle of people can bring major changes in life of person. As per
the current scenario people in these days are more health conscious and follow their diets. This
kind of activities will affect Lidi as it is helpful for increment of sales in areas as fresh products,
food etc.
Technological Factor- under this, it can be said that technological changes works as to put its
major impacts on thingsas are environment, cost and distribution etc technology is helpful to
maximise operations of an organisation. In this, Using of technology will work as to reduction in
the cost and paper work. Thus, effective application of technological advancement will be
helpful for increment in distribution and transport processes.
Legal Factor-Under this all legal authorities are need to followed the rules and regulation of an
enterprise so that entities can deal with product and services (Datta, Ailawadi and van Heerde,
2017). All rules, regulations of an enterprise are needed to be followed so that it is able to deal
with its product and services in market.
Environmental- It is a kind of ecological factor which can affects affects the working of an
enterprise. In this, changes in taste and preference of customers will affect the overall
environmental factor of an enterprise.
COMPETITOR MATRIX-
It is one of tool which helps to establish the firm in market. With help of this kind of
strategy the firm is able to deal with things which helps to operate its business function in
effective and efficient manner (The Competitive Matrix Analysis. 2018). The main aim in order
to determine this is to determine the strength and weakness of the competitors within market. In
addition to this, this kind of matrix can be ranking as per the factors of risk. Under this, the
ranking will determine the impact of risk.

Factors Lidi Tesco Morrison's Sainsbury's
Low Price 4 5 4 3
Superior Quality 5 4 3 4
Training Of
Operators
Yes No Yes No
Installation Yes No No Yes
Unique Features 5 3 4 4
Rapid Delivery
Of Products
5 4 3 5
Here, it is essential to identify all kinds of features and benefits that help in targeting the
potential customers and then firm is need compare with competitors. This is very helpful to bring
improvement in services for customers. With its help product and services can be improved
(Patil and Bach, 2017). By developing customer's training function individuals to enterprise can
able to deal with products and services in market. This kind of matrix is very assistive to find out
differed needs of customers and helps to improvise products and services as compared to the
competitors.
BOSTON COMPETITIVE MATRIX-
It is the kind of matrix which is developed and created by the Boston group to make
evaluation in the strategic position of an enterprise. It helps to classify business portfolio into
four manners that are based on competitive position and industry attractiveness. It is designed to
have long termed strategic planning so that target objectives of firm can be achieved. It is very
helpful to provide the graphic presentation so that market share and growth rate of an industry
can be increased (Burgess, 2016).
It is very helpful to consider the competitive strategy of an enterprise so that entire
business is able to survive in market for longer period. With the help of this firm, it can be
analysed that increase in relative market share will work for generation of cash in an enterprise.
In this, it can be said that growing market requires investment into assets and it also works for
generation of cash. It is very helpful method to develop the cost advantage of an enterprise.

There are four kinds of categories which have been defined in following manner as are-
1. Dogs- Dogs have low market share and growth rate and thus it neither generate
nor consume the large amount of cash.
2. Question marks- In this way, it can be said that question market is growing
rapidly and this factor consumes the large amount of cash. This all works as to
results into large net cash consumption. It is very helpful method to determine
an overall growth rate of market. Thus, it can be said that large amount of
investment is required to have increment in market share of enterprise.
3. Stars- Here it can be said that star works to generate large amount of cash to
have strong relative market share. it can be said that if stars will maintain its
market share then they also work to generate future cash. In this, a firm needs to
deal with strong relates market share.
4. Cash cows- Under this, it can be said that cash cows works to generate return
on assets and it is also greater than the growth of market. It helps to provide
cash to the market leaders so that this can cover the administrative cost to
enterprise, to fund research, development, and corporate debts in order to pay
dividends to the shareholders. Thus, it can be said that the value of cash stream
can be analysed with the help of discounted cash flow technique.
It can be said that this model as growth share matrix is helpful in measuring the incline
and decline rates of growth.
Ansoff matrix- It determines series of growth strategies which works to set the
direction for the business strategies. It works to determine product and market growth
strategy of a firm. This can be defined in the following manner -
Market Penetration- It can be defined as growth strategy which works to put its major
focus over selling of existing products into existing markets (Datta, Ailawadi and van
Heerde, 2017). In this way, market penetration seeks to achieve main objectives -
1. To have maintained and increment the market share of current products and
under this all factors achieved by the competitive pricing strategies, advertising
and sales promotion etc.
2. In order to secure dominance on market growth

3. With help of introduction of loyalty schemes, the customer retention rate can be
increased. Market Development- It is also a kind of growth strategy which
will be used by Lidi in order to sell its existing products into new markets.
Under this, there are number of strategies as follows-
1. New product dimension and packaging of product and services. The main aim
is target the non buying customers so that they will target the segments. With
help of adopting this kind of strategy the firm is able to target set customers.
2. There are differed kinds of pricing policies and strategies which works as to
attract varied customers in terms to create new market segments.
Product Development- Lidi uses this strategy for the introduction of new products
into the existing market. Under this, successful product development strategy will work
to put its major consideration over various activities such as-
 Research development and innovations
 To understand need to customers
Diversification- It is the kind of growth strategy where Lidi works to develop things in
new markets. It is a kind of risk strategy that works to move into the market with little
experience.
Viable marketing opportunities of Aldi -
Customer plays an essential role in business enterprise. With the help of this, the firm
is able to identify its current market situation effectively. In this it can be said that the
identifying expansion opportunities of an enterprise, it deals with services so that they
can perform its activities in effective manner.
TASK 2
Determination of segments of Lidi will provide higher yield of customers
Under this, it can be said that market segmentation are one of the oldest tricks
to target potential customers. The main objective of Lidi is to put its major focus over
determining needs, wants and demands of customers. In this way, there are following
kinds of market segmentation strategies such as-

1. Demographic Segmentation- It is one of the effective and simple methods to
get right population in using their products. Thus, segmentation can be defined
as division of variable on grounds of age, sex, gender, income and religion.
2. Behavioural Segmentation- Under this,Lidi uses this kind of segmentation to
divide population on the basis of behaviour of an individual (Lister, 2017). It is
totally dependent on the behaviour of customer that will work as to identify
buying decision of an individual. With the help of knowing behaviour of
customer, the firm is able to full fill needs of customers in market.
3. Psycho-graphic- it can be said that this kind can divide personality, lifestyle
and attitude. The Lidi needs to use this kind of strategies as it will be helpful to
influence the buying behaviour of customers. It can be said that personality is a
combination of characteristics and is based on things as habits, traits, attitude
etc.
In this manner, it can be said that Lidi is using Parapsychological segmentation to
target the potential customers in market. These are very helpful techniques and it
affects productivity and profitability of an enterprise. These segmentations are based
on various things such as habits, traits, attitudes and taste.
TASK 3
7 P's of marketing and its relevant approaches
 Product Description- Under this, Lidi needs to introduce its product in market
with the help of various promotional activities so that their products can get
popularity in market. This kind of strategy is helpful in order to target the
potential customer in market. This is one of effective strategy in order to target
the potential customers in market. The enterprise need to perform its activities
in relation to gain maximum amount of market share.
 Brand Image- In this, Lidi should aware that brand image plays essential role
in minds of customers without this an enterprise is not able to sustain in market
for longer period. With the help of brand image, an enterprise is able to earn
large amount of profitability and productivity. The customers usually get attract
with image of product in market. This will help to make proper evaluation

between the products and with the help of this enterprise is able to large amount
of profitability.
 Pricing Objective Strategies – Under this manner, Lidi needs to adopt pricing
strategies that will be helpful in order to bring stimulate growth in market.
They need to keep those prices of products which will help to achieve the set
target of a business (Schaefer, 2015.). Under this, it is helpful to manage
successful activities so that firm is able to deal with the tough competition in
market. Th affordable prices rate will be helpful in order to gain maximum
amount of market share.
 Retailing and Distribution Objectives- The firm needs to keep each thing in
effective manner so that they are able to target customers. This kind of strategy
will be helpful in determining the main goals of an enterprise. In this way, retail
sectors need to provide those products which will help to target potential
customers in market.
 Integrated Market Communication- In this, communication is the backbone
for an enterprise. It is a very helpful strategy to determine growth of market in
effective manner. Communication is one of the core parts that help to determine
overall strategies so that growth of a firm can be sustained for longer period. In
this term, integrated marketing communication will involve the strategies which
works as to target the things as are sales, direct marketing activities, sales
promotion and other activities which works as to integrating all kind of
promotional tools.
7 P's of Marketing- In this it can be said that 7 P's is one of familiar
marketing tool which helps to create the suitable strategies for products in
market. This will help to achieve target profitability and productivity. This is
defined in the following manner as follows-
 Product- With executing natural items, the organization has targets to keep
solid sustenance in business. Their objective market is youngsters and youthful
age individuals.
 Price- Very less value execute by Lidi to upgrade powerful outcomes in
business.

 Place-There are few regions where association gives their items, for example,
UK, Australia, and so forth. Along these lines, objective improved the situation
create successful exhibitions in regard to target diverse age gathering of
individuals.
 Promotion- keeping in mind the end goal to make advancement, the
organization utilizing publicizing, and web based life and web to create
compelling outcomes. With a specific end goal to make position, the
organization utilizing compelling promoting technique.
 Physical Evidence- This is another basic part of promoting blend purchase
which client can specifically get contact with organization delegate.
 People- Under this, Lidi created powerful and sound association with its clients
by conveying high calibre and extravagance items to them. It additionally
outlines different offices for clients like criticism choice, fast and simple
conveyance, appealing markdown and offers alongside item and
administrations and so on (Lusch and Vargo, 2014). By this doing organization
have created solid association with them. Then again, its workers are very
disappointed from the organization in light of the fact that their money related
needs does not successfully satisfy by them.
CONCLUSION
Based on above report, it can be concluded that marketing is very important
element to determine an overall growth of an enterprise. With help of framing
Effective planning the enterprise is able to develop about marketing objectives so that
particular profitability can be achieved. In this without proper planning, activities of an
enterprise can be inappropriate. The internal and external factors can works as to
influence the overall activities of marketing so that desire objectives can be achieved. It
is essential to understand that the one of main ethical issue is that that how an
enterprise works as to provide products to customers and are perceived by them and it
can affect the success of an enterprise. The present report has covered the has covered
the marketing activities of Lidi and its major competitors such as Morrisons,
Sainsbury's and Tesco. Thus, the present report has covered various as are

identification of specific areas of product, customer segmentation and 7 P's Marketing
Mix model to target identify segments.