Introduction to Marketing: Lidl's UK Grocery Retail Market Analysis

This report provides a comprehensive analysis of Lidl's marketing strategies within the UK grocery retail market. It begins with an introduction to marketing principles and then delves into market research, examining statistical indicators and the competitive landscape. The report utilizes SWOT and PESTLE analyses to evaluate Lidl's strengths, weaknesses, opportunities, and threats, as well as the macro-environmental factors impacting its operations. It also incorporates competitor analysis and applies the Boston Consulting Matrix to assess Lidl's product portfolio. Furthermore, the report explores consumer segmentation, considering socio-demographic, psychographic, and behavioral factors. Finally, it outlines various marketing strategies, including product description, brand image, pricing, distribution, and integrated marketing communications, culminating in an examination of the 7 Ps marketing mix to provide strategic recommendations for Lidl's success in the UK market. This document is available on Desklib for students to access and learn from.

INTRODUCTION TO
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Market research on the current UK Grocery Retail Market........................................................1
TASK 2............................................................................................................................................8
Research on the UK population to determine which segments will provide higher yield of
consumers....................................................................................................................................8
TASK 3..........................................................................................................................................12
Marketing Strategies.................................................................................................................12
RECOMMENDATION.................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES .............................................................................................................................16

Executive Summary – Marketing is a process that helps to introduce organisational services in
front of consumers. Through this, a firm can easily build strong relation with their target
audience for getting higher benefits and growth as well. Main objective of this activity is to use
specific strategy for providing higher satisfaction to customers according to their demand and
wants in proper manner. This report is based on Lidl which is a retailer organisation as per this,
report includes various analysis process such as SWOT and PESTLE. Through this, organisation
can easily analyse their marketing segmentation in target market.

INTRODUCTION
Marketing is an effective element that is used to build strong and direct connection with
customers. Through this process, an organisation can easily get higher growth and benefits by
their appropriate strategies. This is a management process in which organisation and customers
build their effective relations on the behalf of goods and services. Main objective of firm is to
provide higher satisfaction to their customers and getting effective growth and income. This
element is basically determined through market demand, customers need, product quality,
distribution places and various promotional strategies for organisational success in future. These
types of activities are used by several association or firms for manufacturing, delivering,
communicating and offering several services at a specific location. All these things have few
value for purchaser, clients, user and social group at a specific location. This project report is
based on German retailer store (Palmer, 2012). Lidl is basically global discount supermarket
chain which was established in the year of 1930 by Dieter Schwarz. This firm deals in several
products and services across Europe and USA with around 10,000 stores. Lidl basically focuses
on cash and carry wholesale market, discount market and larger market chain to expand their
stores at various places. This report includes proper market research on the bases of Grocery
retail market with SWOT, PESTLE analysis, uses of different matrix such as Boston Consulting
and Ansoff for getting effective idea of each and every element. The report also includes proper
research on UK population to determine different segments as Socio-demographic, Psycho-
graphic and Behavioural as well. At last, it will describe different marketing strategies as Product
description, Brand Image, Pricing Objective Strategy, Retailing and distribution objectives and
strategies, Integrated marketing communications’ objectives strategies and 7 Ps Marketing Mix.
Through this, organisation can analyse several aspects that helps to expand market structure
easily.
TASK 1
Market research on the current UK Grocery Retail Market
Marketing is a specific process that helps to build appropriate image of organisational
products and services (Fullerton, 2010). This is not a simple or specific time strategy; for this, an
organisation needs to use continuous process with respect to make appropriate demand in market
for their goods and services as well. For this process, Lidl needs to make specific strategy to

attract new buyers, provide them higher satisfaction and make them as loyal customer for firm.
This process require an effective and efficient planning to sale a their products at several
countries easily. There is a statistical indicators of the UK Grocery Retail for several years are
given below as -
2

Sources: Statistical indicators of the UK Grocery Retail 2018
Researched argument
As per the word of Rune Jacobsen, Gavin Parker and Thomas Jensen discount grocery
market has a limited and specific impact on market. These kinds of organisations basically offer
cheaper rate of products to edge their market value effectively. After these activities, they easily
climb on market share to build effective customers loyalty and relation toward their services.
These stores basically include innovative ideas and strategy to build long term relation with
target audience easily (Malhotra and Malhotra, 2012). Nowadays, many countries established
these kind discount market chain to provide appropriate products and services easily. These
organisations basically offer low prices of goods and provide higher satisfaction to customers
easily. Services of these kinds of firms are basically affordable for each and every individual.
In addition, according to Ray hackney, Kevin Grant, Grete Birtwistle marketing is
effective procedure that includes various elements such as internet technology, different
marketing tools, promotional activities and increased competitor in market. In UK, three
different supermarket industries such as Tesco, J Sainsbury and ASDA develop several strategies
to build effective operations services easily. Main objective of these organisations is to make
3
Illustration 1: Statistical data of the UK Grocery Retail Industries

effective strategy for providing appropriate services to their customers. These organisations play
the most important role in economy growth.
SWOT Analysis of Lidl
Lidl is a global discount supermarket chain which provides effective product and services
to their customers. Further, SWOT analysis of given organisation is done for representing its
strength, weaknesses, opportunities and threats to make effectiveness in firm. In this, strength
and weaknesses of organisation are known as its internal factors and opportunities or threats are
known as external elements of firm (Molesworth, Scullion and Nixon, 2010). Through this
process, organisation can easily understand what kind of plan planning is needed for getting
effective growth easily. SWOT analysis of Lidl are explained below as -
Strength Weakness
Lidl is a global discount supermarket chain
which has a strong business structure that helps
them to sell its products and services at a liable
price. For them various private organisation
provides effective services and security to
create effective transaction easily. Lidl has a
large number of stores in UK or Europe which
help them to build strong and effective relation
with customers easily. Now a day this
organisation also starts their services through
online procedure that help them to create
appropriate treading at global level easily.
Main strength of this firm is its product and
services that help to provide higher satisfaction
to customers (McKenzie, 2011).
Lidl is a well-known organisation but they do
not have a huge market share in UK market as
other organisation's has. Lidl needs to use
effective strategy to expend their market
structure in various countries easily. They do
not have an effective operational approach that
helping them to spread their business activities
outside Europe and UK. This organisation
provide various products at a cheap rate,
sometime this thing misunderstand customers
that its quality will not be as much effective
and enough good as others firms has. Lidl so
not has a large number of store that is why they
do not treading easily at international level.
Opportunities Threats
Lidl is a large discount supermarket chain
which provides its products and services at a
cheaper price. These kind of things help them
Lidl is a well-known organisation which
provides its products and services at specific
prices, but sometime these strategies creates
4

to acquire appropriate marketing share in UK
market. If this organisation expands their stores
in different countries, then they can easily get
proper funds and growth. Lidl has large
number of customers who want to purchase its
products and services, so for this, they need to
open its treading by online procedure to accept
various orders easily and provide effective
selling as well. These things will help them in
getting higher business growth easily.
feeling in user’s mind that they are
compromising with quality. These things make
its value down for quality of products and
services as well. If organisation wants to
expand its structure in different countries, then
they need to face various challenges and higher
competition. UK already has lots of grocery
and discount market chains those already have
a specific goodwill and customers range. So,
for this, Lidl needs to take a specific time
period for making their own image in market
share.
As per this above SWOT overview it is determine that Lidl needs to expand their
marking structure in several countries to grab different kind of opportunities easily. All these
planning process will helping to reduce impact of threats and overcome with weaknesses of firm.
PESTEL Analysis:
This process is based on macro environmental factor if a country that directly impact on
decision making procedure of an organisation. For them, Lidl needs to make effective strategy
and plan to reduce its negative impacts easily (Sheth and Sisodia, 2015). There is a proper
explantation of PESTEL analysis are given below -
Political – In a country government bodies and political factors are directly affect on
business organisational activities. These factors includes all risk taking activities that concern
with governments bodies. It can also occurrent political and legal approaches at a specific region
to combined several activities. These factor include several factors as tax policy, international
treading, legal aspects and licensing which is require for a business organisation.
Economical – These factors are related to economic growth of country that affected
through retail marketing organisations. For this Lidl needs to manage their activities in effective
manner to provide effective services in economy. Economic factors are affected through
inflation, economic growth, exchange rate and GDP values etc.. In this, retailer sectors are
directly affected through theses factors (Armstrong, 2011).
5

Social – These factors are related to customers demand and need that can affect
organisational manufacturing and production procedure. For this Lidl, needs to use effective
strategies and planning to provide them quality products and services to fulfil their needs easily.
For this process, organisation needs to analyse market trend, fashion and different kind of
activities that can affect firm's activities.
Technological – These factors are related to different type of innovative ideas and
technological equipments that help to build values of organisation in effective manner. For this,
Lidl needs to adopt quality services and technological tools that helping to produce appropriate
goods easily. Advance technology has a great impact on the production and manufacturing
services that affects the price and cost of products (Gbadamosi, 2013).
Environmental – These things includes different kind of activities that should have to be
ecofriendly. For Lidl, it is require to understand values of environmental factors that can be
affected through its products and wastage. For this government of a country also regulate various
law that retailer needs to implement in their business activities.
Legal – These factors are also related to government policy and procedure. For retailer
firms, government of a country regulate different kind of law and regulation that they needs to
implement in their business procedure. There are several laws as effective trade policy which
assures justify price to their consumers.
Competitors Matrix: This matrix is related to rivalry organisation of firm that affect its business
policy and procedure. For them organisation needs to crate effective strategy that aid them to
increase their own value in market easily. For Lidl, main and strong competitor organisation can
be Tesco, Sainsbury and ASDA which aloes dealing in retailer firms. These all organisation
provide effective and quality services to its customers. So for this firm needs to build effective
strategy to make on marketing image (Smith, 2012).
6

Boston Consulting Matrix:
This theory is based on products portfolio technique to ensure long term values of
organisation for higher growths easily. This matrix is used to determine two different factors as
market share and growth on the basis of appropriate strategies and planing. This matrix includes
four different factors which are determine below as-
 Stars – This term is basically determine high growth and high market share. For this
procedure organisation needs to use appropriate amount and a leadership quality that help
to generate effective growth and market share easily. For this Lidl needs to grab various
opportunities that help to provide them effective growth and income as well (Proctor,
2014).
 Cash cow - This term is represent low growth and high market share. These things are
rarely determine in market when they has low growth but a specific market value and
share. Through this process, Lidl can easily build effective market image to getting
higher benefits easily.
 Dogs - This term is basically use to analyse several marketing factors as low growth and
low market share. At this time organisation needs to build effective marketing strategy
that helps to maximise its profits and marketing share easily. For this Lidl needs to use
liquidity and cash effective methods that increase its incomes and growth (DesJardins,
2011).
7
Il
lustration 2: Competitors Matrix of Lidl

 Question mark - This term is determine high growth and low market share of firm.
These type of conditions are basically rises when organisation provide effective product
and services as well as they have proper customers range but this things not helping to
build effective market share easily.
Ansoff matrix:
This is a marketing tool that help to increase marketing strategies in for organisational
growth and income. This matrix is divided into four different segment that which is helps to
increase market share and product valuation in target market. These factors are -
 Market penetration – This is a marketing process in which organisation use various
strategies to make values of their existing product in existing market easily. For this they
use innovative and creative ideas to build values of their products and services for
customers. These things help to build effectiveness for their existing services (Krishna
and Schwarz, 2014).
 Market development – These kind of strategies are uses by several organisations when
they wants to introduce existing products in new market with different strategies. All
these thing are very helpful for Lidl if they want to expend their market structure in
several countries.
 Product development – This is a organisational strategy which is uses when Lidl when
they wants to introduce new products in existing market. These kind of strategies are
includes technological ideas and market demand for new services. Through this an
organisation can easily build their effective values if they already has loyal customers.
 Diversification strategy - This marketing procedure is very useful for those organisation
who wants to expend their structure in new market with new products. Through this
process organisation can easily get new chance to build their values in new market with
different strategies (Atwal and Williams, 2017).
8

TASK 2
Research on the UK population to determine which segments will provide higher yield of
consumers
Segmentation is a effective term that helps to build values of an organisation in target
market. For this organisation needs to use effective strategy to reaching on their objectives easily
as well as build effective relation with large number of target consumers. In this process
organisations expenses for promotion activities thus they they use effective strategy to provide
quality services at a effective cost to their customers. Marketing segment include different kind
of elements that help to selling products and services in effective manner. These activities
include three different elements as demographic segmentation, socio graphic segmentation and
behavioural segmentation that use to identify potential of customers toward purchasing process.
These things include different factors that affect business operational activities as customers
demand and need toward organisational product and services. All marketing segments are
discussed below as -
Social demographic segmentation
Socio-demographic is one of the core important strategy which is used to study
marketplace. It examines market according to production needs. It segments a demographic
region. It has a wide approach of producing goods and services which depends on current
scenario. It has a target population for benefit of business. This segmentation can be useful for
any small or large business to reach the consumers easily. It helps to plan developing marketing
plan. Thus Lidl prepare a research on market environment so that it can manufacture items as per
requirement of particular area (Skålén and Hackley, 2011).
“Socio-demographic”, this term refers to a group, that can be define by sociology culture
and demographic attribute. It can simply define in terms of life around individual and their
features such as age, gender, sexual orientation, race, religion, income, marital status,number of
children, habits, luxuries, birth, death rate, average size of family, heritage, education, medical
history. It also includes social class like upper middle class, middle class, lower middle class,
lower class, working class. Data which is gathered on discrimination basis will aid to provide
information about to demand of products which needed the most. This will help to manufacture
items within limited resources, and cost effectiveness.
9

For example, if there is higher number of college going students then they will demand
for stationary, clothes, gadgets, then it will be easy to identify needs. In another illustration, if
there are more number of elderly people then they may requisite medicines. Or women have
shopping habit then organization will put effort to keep certain things in stores like cosmetics,
apparels, home furnishing, grocery, kitchen appliances, etc. men have majority then will buy
auto-mobile accessories, electronic items, tech gadgets. Children would purchase stationary,
clothes, games, sports kit, etc. (Levens, 2010). Some purchasing power lies on their religion.
Status also matters in marketing, population belongs to high class, then they will purchase luxury
things like cars, branded attires, middle class will get not so high and so low budget things. In
this segment this marketing becomes easy, newspaper advertisement, flier, are tool to get
customers. It has certain advantages, that are as follows:
 Focus : Socio-demographic is completely focus on people who are likely to increase
sales. It is good in terms of carry out its plan, so it will waste time, energy, money, over
stock goods which saves lot of things in one shot.
 Branding and Strategy : When a company get accurate or approximate data about
population, then firm can construct strategies very well to reach out people. So that it can
outline how to generate market and brands within the location so targeted group can be
notice about product.
Company can recognize the trades and comparison on behalf of collected data in selected
area over a period of time and considering different points. This will give a forecast about sales
plan of action. An organization is ordered to collect data time by time. Because masses move
place to place, birth and death is unpredictable so they can't get accurate data to in one time,
they have to fetch information to get real picture (Babin and Zikmund, 2015).
Psycho-graphic – These are most important factor that use to analyse present and past
customers information and its data. This process is useful to analyse different segment areas
according to its impotence and requirement. These factors include different kind of elements as
customers demand, social values, lifestyle and abstraction. These procedure basically uses to
analyse customers demand and need toward organisational services. This process is basically
using to build strong relationship with customers to getting long term benefits easily. Fro this
process organisation uses different kind of strategy to encourage customers to buy their products
and services. For this some organisation basically make a target on those customers who are not
10

caring about budget and expenses. They can be the loyal customers of organisation if firm offer
quality services to them at a appropriate timing. Lidl is a discount super market chain, so forb
them it is very important to maintain quality in their products that help to attract customers
toward them. Main objective if this organisation's is to provide higher satisfaction to their
customers through their effective and quality services. For this, the use cost effective method to
provide their goods to poor and rich each individual easily. It is responsibility of employees to
build effective communication with their customers to analyse their demand and need easily.
Lidl needs to provide appropriate training to their employees to enhance their interpersonal skill
and working capacity as well. These things help to building strong relationship with their buyers
for long time of period. As per effective communication, employees can easily boost their
customers for buying their products and services in large quantity. For this, Lidl needs to make
effective strategy and planning to improve their operational and business activities to getting
higher growth easily. All these things aid to achieve business objective and goal in effective
manner. UK is large country in which lots of super market industries already exist with they
strong marketing image, so for this Lidl needs to use different kind of marketing segmentation
procedure to expends their structure n several countries easily (Bhattacharya, 2010).
Behavioural – This also a marketing segmentation which is use to build strong relation
with customers. For this, organisation uses a effective marketing strategy to divide customers in
several groups according to their need, demand, abstraction, characteristics, awareness, feeling,
nature, joy, knowledge, purchasing capacity, trend and fashion impact, buying aspects and
change in demand according to technological changes. These type of procedures are uses in
different aspects according to consumers behaviours. For this procedure, Lidl also use different
campaign and research procedure to getting ideas about customers demand and its needs as well.
Through this organisation can easily reaching on their target objective and goal. Marketing is
also a important process for increase attention of domestic and international buyers. Through this
process, firm can easily build their treading process in several countries. Behavioural approach is
based on customers attitude and thinking toward several products and services. For getting
higher benefits, Lidl can use priority bases services for their customers in which they can easily
manage transaction and services according to customers prior demand and need. These kind of
activities improve customers relation activities for getting long term benefits easily. Lidl is a
super market chain which provide quality services to their customers at a effective and attractive
11

cost. Through this procedure they capture eyes of consumers toward their goods to buy them
easily. Behavioural segmentation aid to analyse behaviour of consumers towards particular
goods and services and it is also help to examine their demand on the basis of their personal
need and necessary. Lidl will examine buyers choice as well as taste for the specific product to
manufacture these type of goods easily.
TASK 3
Marketing Strategies
Marketing is a process which starts working from idea of new product generation to post
sale services in order to gain profit as well as competitive advantages at marketplace. There are
various tactics and policies which is made by marketing managers for making improvements in
sales and production as well in order to hit all targets in requisite duration of time (Armstrong
and et. al., 2011). It comprises several aspects which are stated below:
Product Description: Quality items and facilities are being provided by ALDI and LIDL
both. Companies are selling many variety of products which is helpful in catering desires and
necessities of customers. To provide extraordinary quality products to clients, there are various
methodologies and tools to be use to make improvements in business activities. This type of
action allows manager to ensure their success and growth as whole organisation. Product
description is associated with shape, colour, design, specification and type etc. of any particular
item which is being served in market for many years.
Brand Image: When association is having a strong sketch in the eyes of consumers then
it can be called as that LIDL made his debut as a brand in market by providing requisite quality
of products and services. ALDI and LIDL are serving their customers with combination that aids
larger market share and strong position in industry. For enhancing sales volume across the globe
then innovative and latest tools and technologies should be utilised by marketing manager of
LIDL and ALDI. This action is able in fascinating so many people towards company. This kind
of activity is able in enhancing customer base of combined venture. Above discussed whole
procedure is doing for increasing financial outcomes as well as to establish the firm as brand in
industry because strong branding picture is only most influential method of attracting people
(Atwal and Williams, 2017).
12

Pricing Objective Strategy: It is a duty of manager that he must set a prominent price
which should not be more than high that nobody can purchase it and rate not be very much low
that could not generate required profit for LIDL. Seniors must use different tools and
technologies in order to set up a proper price for product and service. There are so many stages
which is related to this concept are defined as follows:
 firstly, it is essential for managers that they formulate adequate strategies for segmenting
their marketplace and to point out their potential buyers who have sufficient buying
power (Babin and Zikmund, 2015).
 Secondly, management need to make judgements related to appropriate application of
marketing mix. For example, sales and distribution along with production.
 After completion of above steps, the next stage is to clearly and accurately monitor
demands of consumers and data founded in this action will further provide help in taking
decisions regarding setting price of product and services.
 Internal and external elements should be taken into consideration before deciding final
rate of item and facility that is company going to provide its customers.
Strategies related with retailing and distribution: There are some tactics which would be used
by supervisor for making distribution of items and services and elaboration of these strategies are
described below:
Indirect Distribution It means finished goods are distributed to customers by taking help
of multiple retailers.
Direct Distribution According to this, association directly sells products in prior set
duration of time.
Intensive Distribution As per this, firm can easily acquire larger market share by expanding
business activities and this expansion can be done by taking aid of
distributing larger share of market.
Selective Distribution According to this segment, demand of an item and facility is very
high.
Exclusive Distribution When association want to offer maximum share of marketplace to a
specific share.
13

Marketing Communication and strategic Objectives: This is a very essential tactic which helps
manager sin order ton expand business activities in different areas and regions to fascinate
larger number of customers towards product and services of LIDl company. By taking assistance
of this action venture can strengthen their bond with consumers by catering their need and wants.
In this, manager make evaluation of client's demands by offering them featured products and
services (Bhattacharya, 2010).
7P's of Marketing: This is a strategy which is helpful in making launch of item
successful and for this purpose managers uses various tools and techniques. This methodology
aids better market share and strong brand position of association.
Product: This is a core offering of any organisation in order to make financial profits and
wider geographical area of market. These products are made to cater need and wants of
consumers because clients are those who are targeted to serve produced items.
Pricing: Rate of a product should be set very appropriately because this is a main factor
which brings earnings of company. It means, a price should not be very high so that every
customer could purchase products and services and on the other hand it should not be very less
that it should not bring any profit to association (Chaffey, Smith and Smith, 2013).
Place: A product and service should be placed very efficiently in the mind of consumers
so that each client could recognise item with its name and logo. ALDI is having attractive and
mesmerising outlets which is a sign of identifying them out of all retail stores.
Promotions: A prominent tool of promotion should be used in order to popularise retail
store because in present era, without proper promotion a product or service could not be sell to
larger population.
People: Workers are main part of any company because all production function depends
upon it. To serve more clients then line workforce should be skilled and qualified for
manufacturing a product.
Process: It is mainly related to delivery of services. So, distribution of all facilities should
be authentic and adequate because success of services rely on process of delivery.
Physical Evidence: It is a set of hardware which is associated with LIDL in order to
recognise this supermarket among all available options in order to create trust among consumers
(Chandon, Laurent and Valette-Florence, 2016).
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RECOMMENDATION
As per this report it can be recommended that marketing is a essential tool which can be
useful for any organisation if they want to expend their marketing structure in several countries.
Through this process, an organisation can easily increase their marketing structure and share
easily. For this Lidl can use several activities as statical analysis about several retailer store who
already exist in a country. Through this, firm can easily make effective strategy to supply quality
products to target consumers. Lidl is a well known organisation but for them it is very important
to analyse their Strength, Weakness, Opportunities and Threats through a effective procedure.
Fro external analysis organisation needs to use PESTEL analysis that help to determine each and
every factors which can affect its operational and functional activity. If Lidl wants to increase
their marketing structure in different countries then they needs to use several marketing
segmentation to expend business structure easily. For this organisation it is require to manage
their activities effectively to getting higher success easily. If organisation make their own
objective and goal them they needs to provide create various activities that helping them to
expend their market structure easily. At last Lidl needs to use marketing mix to analyse each and
every activity of market properly. Marketing strategy is essentially use to maximise sales and
growth ratio that help in achieving organisational objective and goals easily. Through marketing
Lidl can easily promoting different types of products and services in their target market or in
front of target customer.
CONCLUSION
As per the above report it has been summarised that marketing is a effective process that
help to increase values of organisation in target market. These process basically use to build
values of customers to getting long term benefits easily. Marketing is also use introduce product
and services in target market to getting desired outcome of it easily. This report is based on Lidl
which is a discount supermarket chain which was established in the year of 1930 by Dieter
Schwarz. For this organisation uses different kind of elements as SWOT and PESTEL analysis to
analyse internal and external factors and its impact in organisational activities.
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Statistical indicators of the UK Grocery Retail 2018. [Online]. Available through
<http://results16.ocadogroup.com/strategic-report/3-ocado-within-the-marketplace>
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