Comprehensive Market Research and Marketing Plan for Lidl in the UK

This report provides a detailed analysis of Lidl's marketing strategies within the UK grocery market. It begins with an introduction to marketing principles and the context of Lidl as a global discount supermarket chain. The report then presents a market research section focusing on the current UK grocery retail market, including SWOT and PESTEL analyses to assess Lidl's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, environmental, and legal factors affecting its operations. Competitor analysis, including a competitor matrix, is also included. Furthermore, the report covers marketing strategies that Lidl could use, including the 7Ps marketing mix and segmentation strategies. The report aims to provide insights into Lidl's market position and potential for growth within the competitive UK grocery landscape. The report also highlights the importance of understanding consumer behavior and market trends for effective marketing planning.

INTRODUCTION TO
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Market research on the current UK Grocery Retail Market........................................................1
TASK 2............................................................................................................................................7
Research on the UK population to determine which segments will provide higher yield of
consumers....................................................................................................................................7
TASK 3..........................................................................................................................................10
Marketing Strategies.................................................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Marketing is an appropriate element that used to build effective relationship between
organisation and customers as well. By this, a firm can easily achieve their target objectives and
goals as well. Through this, company can get appropriate growths and income easily. This is also
known as management process in which products and services helps to build appropriate
customer's relations. This activity also include buying and selling procedure by product as well
services. For this, firm uses several promotional activities to introduce new goods in front of
target audience as well as in market. Main objective of marketing is to grab consumer's attention
toward several services easily. This is helps to acquire consumers and maintain appropriate
relation for attending long term benefits easily (Armstrong and et. al., 2011). This project report
is based on Lidl which is a German retailer store. This organisation was founded in the year of
1930 by Dieter Schwarz. This firm is a global discount supermarket chain which provide various
products and services across Europe and USA with just about 10,000 stores. Main objectives of
their organisation is to provide quality products to consumers on effective and attractive prices
easily. This report is discussing about proper market research that helps to brief overview of
overall retail grocery market to identify its growth and several marketing opportunities. It
includes SWOT, PESTEL analysis, competitors matrix, Boston consulting matrix and Ansoff
matrix as well. It represent different segments as Socio-demographic, Psycho-graphic and
Behavioural as well. At last it determine market plan development and several marketing
strategies as Brand Image, Pricing Objective Strategy, Retailing and distribution objectives and
Product description and also integrated with 7 Ps Marketing Mix.
TASK 1
Market research on the current UK Grocery Retail Market
Marketing is an essential factors that helps to build transparent relation between
organisation and customers by purchasing and selling of several products and services. For this
process, a firm needs to build a effective strategy to getting higher business advantages easily.
Lidl is an discount super market and for them it is require to create strong strategy to getting
higher competitive advantages easily (Atwal and Williams, 2017). This organisation face strong
competition from various retailer store such as Tesco, Aldi and Sainsbury as well. For this they
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need to use strong strategy to getting higher growth easily. Through this, company can easily
build strong relation with their customers to getting long term benefits easily.
Researched argument:
According to Edward Appleton marketing industry landscape its structure in world wide.
Various organisation uses these kind of strategy to promote their organisational activities and
products in front of target audience easily (Babin and Zikmund, 2015). One most important
strategy that a firm can use is cost reduction process that easily helps to capture customers eyes
toward organisational services. For this organisation needs to use effective research on market to
analyse customers and market demand to provide them quality products and services easily.
These kind of factors aid to deliver appropriate satisfaction to customers according to their
requirement ad need as well. Through this firm also provide their own contribution in economy
growth and development.
As per the words of John F. Sherry, marketing has appropriate impact on several business
activities. Through this a firm can easily attain higher growth and incomes easily. Main objective
of marketing is to introduce new products and services in target market or in front of audience.
For this firm needs to use appropriate strategy that helps to build values for organisation in
competitor market. After using several activities, Lidl can easily climb up in market or build
strong customers loyalty to getting higher business growth. For this firm needs to use innovative
ideas and advance technology in their operational activities to getting higher business advantages
easily.
SWOT Analysis of Lidl
Lidl is a well known organisation in UK that provide their products and services on
effective cost. This is a global discount supermarket chain that represent its services in several
countries (Bhattacharya, 2010). This organisation has various strength and weaknesses that helps
to make them strong strategy to grab several opportunities easily. As per some issues,
organisation faces various threats from competitors organisation, so for them Lidl needs to build
strong strategy to reduce its negative impact easily. These kind of activities helps to analyse
organisation's internal factor to grab various opportunities easily. There are SWOT analysis of
Lidl are represent below as -
Strength Weakness
Lidl is a well known global discount Lidl is global discount supermarket chain
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supermarket chain which provides their
services in UK or Europe. Main objective of
this organisation is to provide quality services
and products to their customers on effective
cost. Various private organisations also provide
their products to Lidl for selling them on
effective cost. Customers of this firm are their
major strength who have strong relation with
them (Chaffey, Smith and Smith, 2013). These
kind of activities helps to getting long term
benefits easily. At present, organisation its
services through online mode to build strong
relation with international customers and sell
its products in world wide easily.
which provides its products and services on
very reasonable cost. This organisation is
provide their services in UK or Europe. For
them it is require to build strong strategy to
expend their business structure in world wide
or in several countries easily. Sometimes its
product cots build misunderstanding toward
products quality. Lidl has not various store, so
for them it is require to build their own values
at several places to build strong customers
relation that helping them to grabbing long
term achievement and benefits easily. For this
they needs to develop strong marketing
strategy to grab customer's attention toward
their services easily.
Opportunities Threats
Lidl is a well known organisation that provide
various services on appropriate and attractive
prices. These kind of things helps to attain
appropriate opportunities from target market
easily. In this process organisation needs to
introduces products and services in target
market to getting appropriate growth and
incomes easily. In it marketing helps to provide
various opportunities to organisation to provide
their services in world wide. These kind of
things provide effective customers loyalty for
grabbing long term benefits easily. Online
treading also helps to provide various
opportunities to Lidl for build strong relation
For Lidl, it is require to build strong relation
with customers to getting higher business
advantages easily. For this they need to make
effective and appropriate research on target
market to grabbing higher competitive
advantages easily. Lidl face strong competition
from Tesco, Aldi and Sainsbury while
delivering same quality of product in target
market. For this they need to make effective
strategy to provide quality services that help
them to build their own image in target market
easily. UK is a well known country that has
strong grocery chain which provide various
services in world wide. For this they needs to
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with international customers. use effective strategy to build strong customers
relation for long term.
PESTEL Analysis:
Political – These factors re related to government norms and regulation that organisations
needs to implement in their business procedure. These kind of activities are directly impacts on
business operational ans functional activities, so for them firm needs to analyse each and every
element that related to political factors. Through this they can easily implement legal activities in
their organisational services (Chandon, Laurent and Valette-Florence, 2016). These also occur
legal and political risk that impacts negatively on organisational activities and business
approaches as well. Various factors that related to legal activity are tax policy, international
treading, legal aspects and licensing that requires to implement in business approaches easily.
Economical – In a country retailer store and tourism industry provide their own
contribution in economy growth. Organisational activities are directly affects on economy
condition such as inflation, economic growth, exchange rate and GDP values as well. In this
process inflation play a most important role that affect negatively on organisation's activity if
they not use appropriate strategy in business activities. Inflation is related to various factor that if
firm has lots of expenses and they do not earn appropriate income to recover them. Such things
are impacts negatively on economy growth and development. For Lidl it is require to manage
their organisational activities in effective manner to grabbing higher business advantages easily.
Social – These factors are directly related to customers and market demand from
organisation and its services. For this firm needs to implement effective research on market to
understand its requirement to fulfil them through appropriate methods. For this firm can easily
analyse market trend, fashion and customers choice to fulfil them in appropriate manner (Palmer,
2012). For this factor, Lidl needs to implement effective strategy in their business procedure to
grabbing higher attention of customers toward their services and goods easily. Social factor
helps to build effective trading procedure in world wide to provide higher growth to organisation
as per their own requirement.
Technological – These factors are related to advance technology and innovative ideas
that a organisation needs to implement in their business activities. Through this they can easily
attain effective growth and productivity. Advance technology helps to reduce extra wastage and
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time factors to provide desired growth easily. All these activities are related to provide growth
and income to organisation through creative ideas and thoughts as well. For Lidl , it is require to
attain advance technology in their business process to manage products cost easily and provide
timely services easily. Lidl start their online treading process so in this advance technology will
helping them to provide effectiveness to build international level (Fullerton, 2010).
Environmental - For Lidl, it is require to understand customer's demand and
requirement to provide them quality services easily. In this process environmental factor play a
most important role that directly impacts on customer's demand and need as well. These factors
can affect negatively on organisational business process of firm do not use appropriate strategy
for their business activities. For Lidl, it is require to understand value and impact of
environmental factor to produce eco-friendly products and services for their customers easily. In
this, government also play a most important role that regulate several legislation to protect
environmental factor of firm easily.
Legal - These factors are related to government norms and legislation that they regulate
for several organisations. These are also related to political factors to implement in their business
activities. Through this firm needs to implement their organisational activities through legal term
and issues to getting higher business approaches easily. In this government play a most important
role to provide appropriate law and regulation for business. Some retailer organisation's needs to
take effective license for their treading process in several countries easily. These factors affect
negative or in positive way to business process and activities, so for this firm needs to implement
them in their organisational activities.
Competitors Matrix: Lidl is a well known organisation that provide quality services to their
customer as per attractive cost. This firm was founded in the year of 1930 by Dieter Schwarz.
This firm is a global discount supermarket chain which provide various products and services
across Europe and USA with just about 10,000 stores (Malhotra and Malhotra, 2012). They
provide quality products to their customers but they face strong competition by Tesco, Aldi,
Sainsbury and ASDA which provide same products and services to customers. They has strong
customers chain who believe in their services, so for Lidl it is require to build strong strategy to
compete with them at same level easily.
Boston Consulting Matrix:
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Stars - This matrix represent values of firm in which star is stand for high growth and
high market share. In this condition, organisation has strong value in market and their products
make strong image of them in competitive marker. Through this Lidl can easily grab higher
benefits easily as per their desire and requirement.
Cash cow - This factor is stand for low growth and high market share. This condition
make organisation's value higher whether they do not earn strong growth. In this condition, firm
manufacture quality products for their customers but they not get same outcome on sale of them.
This things reduce their growth (Molesworth, Scullion and Nixon, 2010.).
Dogs – This factors is stand of low growth and low market share. In this condition,
organisation loose their values in target market. This condition negativity impact on their
business procedure easily.
Question mark - This element is stand for high growth and low market share. This
condition impacts positively when organisation has effective image in market. Through this they
can easily grab higher growth while they has low market share. This condition only arises when
organisation has large customers chain who trust in organisational services. For this, Lidl needs
to build their own image in market through quality product on appropriate cost.
Ansoff matrix:
Market penetration – These factors are related to several activities in which a
organisation wants to introduce their existing products in existing market through new and
attractive strategies. For this Lidl needs to build quality of their products to serve attractive
services to customers. These kind of things helps to build strong relation with direct customers
(McKenzie-Mohr, 2011).
Market development – This strategy is useful when organisation wants to introduce
their existing products in new market through various services ideas. These kind of things helps
to build strong customers relation in nee market to grabbing higher business advantages easily.
Product development – This strategy is useful when Lidl introduce their new products
in existing market. In this process marketing activities provide their own contribution to promote
various activities easily. In this electronic media, paper marketing, B2B and B2C marketing
process to pay their attention toward organisational activities.
Diversification strategy - This process is helpful when organisation introduce their new
products in new market. For this they needs to use effective strategy to make their own value in
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market easily. For this they require effective market research to understand customers and
market demand to manufacture quality products and services for them. Through this process
they can easily build effective relation with new customers easily (Sheth and Sisodia, 2015).
TASK 2
Research on the UK population to determine which segments will provide higher yield of
consumers
Segmentation offers an advantage to build values of an organisation to meet targeted
market area, to accommodate segment in market, it needs an effective approach that can establish
easily and reach to the objectives as defined with an appropriate time. This process takes place
because it simplify the stages to promote goods and services in the market, by proceeding this
activity promotional activities can consider within minimal cost, but impactful quality of
service. Marketing segments can be divided in three categories, namely socio – graphic
segmentation, demographic segmentation, behavioural segmentation, these all segments aid to
identify potential customers, that will help to raise in profit (Levens, 2010). These things also
involves different factors like business operational activities according to customer demand for
goods and service. Lidl is distributed its target market into segments so that it can organise its
store according to the needs and it will also help to find out the potency products to utilize space
in appropriate manner, so that there is no wastage or over-stoking problem occur due to stocking
so many stuff which is even not in demand. All the segmentations are as follows-
Social demographic segmentation
Social demographic segmentation is one of foremost strategy which study about a
population in certain location, which needs a products. It research is based on current scenario, as
in terms what kind of actual people are living in a region, about their lives, and life style. This is
equally important for the small and big organization, though it give them a highlight that what
kind of business they will gain by reaching customers easily. It is marketing plan that develops a
criteria to pursue business accordingly.
Socio – demographic a term which refers a group, that defines sociology culture and
demographic attribute, that can be define as life around people in particular region, and their
features such as age, gender, sexual orientation, race, religion, income, marital status, number of
children, students, habits, luxuries, birth rate, death rate, and average size of a family, heritage,
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education, medical history. It considers social classes like upper class, middle class, low class,
upper middle class, upper low classes, in short it includes status of a public to provide good and
service on demand (Babin and Zikmund, 2015). This gathered data on this discrimination bases
recognize their needs and built a plan to assist them on requirements. This is also helpful to
manufacture the item as needed therefore no wastage at all.
For an example, if there are a huge ratio of college going students then they demand for
stationary products, gadgets like pen drive , headphone, smartphone, laptops, apparels, so they
are the potential buyer who demands for such things, to accomplish this the manufacturer needs
to stock all these products, that can fulfil all these requirements. If there are a business class
people, they will demand for lavish products like interiors, and exteriors that amplify the show of
their house or they would like to purchase high street brand clothing that make them look
stunning and maintain their living status. Similarly, if there are some oldies, they need medical
facilities, so for that Lidl needs to avail them medical facilities, that they can find in nearest area.
A woman will purchase for grocery items, home appliances, furnishing items whereas a man
wants to buy a electronic items and style accessories. Public generates a business according to
status a high class group of people will increase in sales by purchasing cars, branded attires, etc.
though, marketing becomes easy like newspaper, advertisements, etc. It has certain merits, as
below:
Focus – Socio – demographic is completely dependent on people who shares its profit by rising
in sales, which is as good as to carry out a plan, so it waste time, energy, money, over stock
items that saves time in one shot.
Branding and strategy – Strategies can be define accurately when appropriate data is available
by research on population, most required outline will be prepare accordingly gathered
information,that can be apply on people on certain location.
Company can recognize trades that are leading in marketplace, on behalf of collected data on
selected area over a certain time of period of time. This will predict forecast about sales plan,
that will accomplish through plan of action.
Psycho-graphic segmentation
Psycho-graphic is another importance factor because it is used to analyse present and past
customers information, it is important to get in the knowledge of different segmentation areas
according to power and demand, for this include distinct elements like customers demand, social
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values, lifestyle and concept. This procedure basically focused on customer's demand and needs
with respect to organizational services, also uses to build a relationship with customers to attain a
long term benefits. This emphasizes on attracting customers, so that they buy the potential
products and services, and that can happen only by targetting customers, who are not worried
about budget and cost, because they are loyal to quality and brand not about pocket size, as firm
is serves as the statement, then these buyers are also pay honesty towards business, that's why
they don't look at money (Bhattacharya, 2010). On the other hand, there are some buyers who
can't afford high cost, so for them Lidl has discount policy, so that it can grab attention from low
cost buyers, as they are part of this segmentation. This strategy offers a great a satisfaction for
both sides buyer and seller.
Behavioural segmentation
often customers are bias because of their behaviour, they have such emotions, nature,
feeling, knowledge, joy, fashion, awareness, purchasing capacity, need demand, characteristics,
that affect on business too. For these kind of clients Lidl has a strategy, to conduct campaign and
procedures that provides ideas about customer mind, and needs as well. It helps to reach to the
customers easily to get the goal because it's core centric on customer's attitude and thinking for a
particular products and services. It also has give priority services for its regular clients, and also
assist them in transaction and services, according to demand.
Recommendation
According this report it is state that marketing is essential for an organization which is
extending its marketplace in various countries. As this process will aid to improve marketing
structure share of the firm too. For this purpose, Lidl can also use its several activities as
statistical analysis about existing retail store in the country, as it will analyse the quality of rival
stores, it can easily develop its quality of products and services to supply its buyers. Lidl is very
well known organizati0on but it is essential to study about its strength, weakness, opportunities
and threats by conducting SWOT analysis. Firm should also commence an external analysis such
as PESTEL, so that it can get the information about outside aspects, which can determine each
and every factor which has a powerful impact on operational and functional activities. Lidl need
to be cautious about all these aspects, so that it can implement its marketing plan as required. It
also needed to make its own objective an goal to stand in market, to attain higher profit
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(Bhattacharya, 2010). This will surely help it expend its business in numerous countries, and in
final state it require to use marketing mix, which analyse each and every activity in market.
TASK 3
Marketing Strategies
Marketing is strong procedure that helps to build strong relation in market with customers
to getting desired growth and incomes easily. In this process, firm needs to implement effective
strategy in their process to getting attention of customers toward their organisational products
and services. Lidl uses several strategy to capture customers eyes toward their services as Just in
time approach, cost effective methods and quality services. Through this they build their own
image at several places.
Product Description: For a business organisation, it is require to represent quality
products and services in target market to provide higher satisfaction to target customers easily. In
this process Lidl needs to use strong marketing research to analyse each and every factor that
related to market expectation and requirement. In this process skill and experiences employees
providing their own contribution to provide quality services to customers as per their
requirement and demand (Armstrong and et. al., 2011). These kind of activities build positive
product image in target market to getting desired outcome and growth as well. For this
organisation needs to provide them appropriate training to enhance their interpersonal skill and
working capacity as well. For Lidl, it is require to provide appropriate information about their
products, its feature and quality factors to build strong relation with customers easily.
Brand Image: For a business organisation, it is require to create their effective brand
image that help to capture customers eyes toward organisation and its services easily. Through
this process they can easily introduce new products and services in target market to provide
higher satisfaction to customers as per their demand as well as requirement. These kind of
activities are very helpful for a firm to getting higher competitive advantages easily from target
market. Proper image of Brand helps to enhancing volume of sales to getting effective growth
easily. In this process advance technology and innovative ideas provide their own contribution to
build effective brand image in target image easily. For Lidl it is require to build effective market
image to getting higher competitive advantages easily.
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Pricing Objective Strategy: Lidl is a well known organisation that represent its products
and services in attractive cost to consumers. Main objective of this organisation is to provide
quality services in market as per attractive costing (Gbadamosi, 2013). For this they need to use
effective strategy and ideas to analyse information related to market and products cost. Through
this they can easily conduct products cost in appropriate manner to getting higher competitive
advantages. In this process, management and senior marketing heads make their own strategy to
utilize their strategy for product desperation as -
 It is require that manger analyse each and ever factors effectively yo understand buyers
capacity to purchase products easily.
 For this firm needs to use advance technology that helps to reduce wastages and extra
costing from product production services. Through this employees of organisation can
easily increase their own capacity of working and improve productivity of firm in
appropriate manner.
 After analysing or implementing these services, Lidl needs to use appropriate methods to
increase organisational and products sales in target market easily.
 In this process, Lidl needs to analyse internal and external factors that can affect decision
making procedure of firm easily to make effective strategy for them to reduce its negative
impacts.
Retailing and distribution objectives and strategies – For a retailer firm, it is required to
provide their products and services into market through different suppliers or retailers. In this
process, distribution take specific place as -
 Indirect distribution – This process is related to effective marketing strategy in which
organisation distribute their products and services by through several retailers. In this
process, mode of distribution is going through a large chain to provide effective services
to customers (Smith, 2012). This process takes a long time period to supply proper
product to direct customers.
 Direct distribution – In this process, organisation provide their direct services to
customers in direct manner. In it, organisation is not require any mediator to supply or
sale products. In it, customers easily purchase appropriate products by their own
requirement. In it they take less time to get services in effective manner.
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 Intensive distribution – In this procedure organisation covers a large area to sale their
own products easily. In this process marketing manager play a most important role to
analyse information related to target market and customers demand that can affect
organisational activities (Proctor, 2014). After analysing these things, organisation serve
their quality services to them in appropriate manner as per their demand and requirement
as well.
 Selective distribution – In this process, organisation serve their services in those areas
where has high demand of this. Through this they easily promote higher sales and growth
easily. This process require effective market research to getting effective benefits and
income as well. In this Lidl can easily provide their quality services to those who require
or need them.
 Exclusive distribution – This process is basically related monopoly of market that affect
supply market chain. In this process, organisation serve their services to single supplier
who analyse market demand to serve quality services to them. In this market needs to
implement effective strategy in their organisational procedure easily.
Marketing Communication and strategic Objectives:
In marketing, it is require that a employees of firm communicate with their customers to
analyse their demand and need easily. This is a appropriate method in which organisation serve
their own services easily.
7P's of Marketing:
For Lidl, it is require to analyse marketing mix to getting appropriate information about
organisational services and products (DesJardins, 2011). Through this, a firm needs to manage
their organisational activities to getting appropriate information effectively. For this, firm needs
to use marketing mix to analyse each and every factor easily such as -
Product: Lidl is a global discount supermarket chain they provide their services for fresh
fruits & vegetables, Frozen food, health or beauty products, household products with specific
quality and effective prices. This organisation provide its quality products to customers through
effective business approaches. To build organisational values, firm needs to introduce effective
services for their customers. Lidl build their own image in super market industry by their
12

products cost and goods qualities as well. This organisation represent different brand name to
sale quality products to consumers.
Pricing: Lidl is related to discount market chain that provide quality services to
customers in appropriate cost. Their main objective is to [provide quality services to customers
on specific pricing.
Place: Lidl is a global discount supermarket chain which provide various products and
services across Europe and USA with just about 10,000 stores (Krishna and Schwarz, 2014).
Promotions: Lidl uses several promotional activities to introduce their products and
services in target market easily.
People: Lidl has large workforce who serve their effective services according to
employees demand and requirement as well. They are the key factor of firm who serv quality
services to consumers easily.
Process: Process considers supply of products and services to the end user, so that
distribution of goods can be authentic and sufficient, because opulence relies on process of
delivery, a logical approach to deliver goods and services to the store, on rising demand of
customers, on appropriate time, also impact on goodwill of business (Skålén and Hackley,
2011).
Physical Evidence: It is a set of hardware which provides qualitative service, through
which LIDL recognise to build trust among customers.
CONCLUSION
As per the above report it has been summarised that marketing is a most important factor for a
firm that helps to build strong relation between organisation and customer through purchasing
and selling of goods. In this process several organisations adopt quality factors to represent their
services in target market through their strong strategy. All these factors used to provide higher
growth and income to a firm as per their desired outcomes. Marketing procedure helps to provide
appropriate information about new products and services in target market easily. This project
report is based on Lidl which is German retailer store. This organisation was founded in the year
of 1930 by Dieter Schwarz. Lidl is a global discount supermarket chain that serve different goods
and services in various counties easily. For them they needs to use effective planning process to
analyse proper information about target market and customers demand to implement effective
planning process in their organisational activities. These kind of things will helping them to grab
13

effective opportunities from market to get effective growth easily. This report include proper
research on marketing segmentation in the context of grow of Lidl easily. This also represent
SWOT and PESTWEL analysis of organisation to analyse importance of internal and external
factors that can affect decision marking procedure of firm in appropriate manner.
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