Lidl Marketing Plan: A Detailed Analysis and Strategy Report

This report presents a comprehensive marketing plan for Lidl, a prominent grocery store chain in the UK. The report begins with an executive summary highlighting the competitive landscape of the UK grocery market and the need for innovative marketing strategies. It then delves into the marketing mix of Lidl, analyzing its product offerings, pricing strategies, distribution channels, and promotional activities. The report conducts a thorough analysis of Lidl's current situation, including SWOT and PESTLE analyses, and examines its microenvironment. It outlines redesigned marketing objectives, employing the SMART framework, and details the STP model used to achieve these objectives. Furthermore, the report covers resource allocation, budget considerations, and an implementation plan. It also discusses control measures to assess the plan's effectiveness. The report concludes with a summary of the key findings and recommendations for Lidl's marketing strategy.

[Name of the student]
[Course ID]
MARKETING PLAN

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1.0 Executive Summary
Grocery store in the UK is highly competitive because the grocery product is affected by the
price elasticity necessitating a high level of innovation in the food chain, product offering,
and marketing strategy. As a result, the current report will evaluate the brand marketing
strategy in achieving the redesigned brand objective. In addition, the report will highlight the
implementation plan and control measures, as well as the financial plan, to provide a brief
overview of the company's progress toward the goal.

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Contents
Task 1.........................................................................................................................................3
Introduction................................................................................................................................3
Marketing mix of Lidl................................................................................................................4
Product....................................................................................................................................4
Price........................................................................................................................................4
Place.......................................................................................................................................4
Promotion...............................................................................................................................5
Company Current Situation Analysis.........................................................................................7
3.0 Swot analysis....................................................................................................................7
Pestle analysis.........................................................................................................................8
Ansoff’s matrix:......................................................................................................................8
Lidl microenvironment analysis.............................................................................................9
4.0 REDESIGN MARKETING OBJECTIVES......................................................................10
5.0 STP Model to Achieve the Marketing Objective..........................................................10
6.0 Resource Allocation...........................................................................................................11
Marketing Budget.....................................................................................................................12
7.0 Implementation plan...........................................................................................................13
8.0 Measure and control...........................................................................................................14
Control......................................................................................................................................16
Conclusion................................................................................................................................16

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Task 1
Introduction
Goal/Objective of Lidl company
The company's major goal is to improve customers' living standards by supplying high-
quality products in the market and ensuring that customer satisfaction is met in whatever
we do.
Lidl is a well-known brand in Europe, and it is a German discount supermarket chain with
over 10,000 stores worldwide. Its major goal is to sell high-quality products to customers
with a hassle-free shopping experience (Franck, 2018).. Furthermore, Aldi is one of the
supermarket chain's main competitors, as its primary goal is to increase its market share in
the UK grocery sector. The marketing mix employed by Lidl in order to reach the company's
goal is highlighted in this study. However, the current paper compares and contrasts Lidl's
and Aldi's marketing strategies (Tomasevic, 2018).
Marketing mix of Lidl
Product
Lidl had a variety of products for different consumer segments within the same category. Lidl
uses a variety of methods to fulfil its business goals, such as product campaigns, which are
committed to sourcing high-quality goods from local suppliers, in contrast to Aldi.
Furthermore, Lidl places a strong emphasis on UK farmers for food production, with British
farmers accounting for 70% of the brand's suppliers (Jack, 2018). Furthermore, the company's
product marketing strategy emphasizes healthy eating, outstanding flavour, and stylish
snacking, whereas Aldi's product strategy focuses on winning market share by launching new
products e.g. milo (Tomasevic,2018)
Price
Lidl employs the penetration pricing strategy to achieve the company's goal, and the
company does it by minimizing wastage, which lowers costs. Furthermore, Lidl has a
significant advantage because of its cheap pricing approach, as most of its suppliers are local
vendors. However, there is a gap in Lidl's pricing strategy, as the company only offers
seasonal discounts to boost bulk sales, whereas Aldi uses discounted pricing strategy, as well

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as psychological and competitive pricing strategies, to increase market share from 5.9% to
6.2 percent in a year, while Lidl only achieves 5.9%, hence company must implement the
competitive pricing strategy to increase the sales (Franck, 2018).
Place
Lidl is a multinational retailer with over 11,000 locations. Furthermore, it has established a
well-structured distribution system in Mebane, North Carolina, as well as twenty outlets
around the United States. Furthermore, the organization uses the same layout to ensure
clients' convenience. Furthermore, the corporation implemented a locker service placement
plan, in which customers can order things online and pick them up from lockers at any time.
(Zenezini,2018). However, there is a placement gap in the organisation's placing strategy,
because the company does not have its own web platform. Unlike this, Aldi has an online
ordering and purchasing system.
Promotion
Lidl's marketing approach revolves around using emotions with humour to connect with
customers. Also, Lidl's TV commercials are substantially lengthier than Aldi's. Corporation
also employs a promotional strategy of "surprises to excite" customers, every Wednesday.
(Tsene,2019).Furthermore, the corporation launched a comparative advertising campaign by
contrasting their own product with that of Aldi, with the phrase "decision is yours." In
contrast, it makes more use of the digital medium to engage clients (Zenezini,2018).
People
People who work for Lidl play a vital role in fulfilling the company's goals since they are
well-trained, which aids them in decreasing waste and operating costs. Furthermore,
employees collaborate with suppliers to guarantee that high-quality raw materials are
procured (Syed, 2020). In contrast, Aldi's marketing team, on the other hand, is more concerned
with gaining market share than with increasing sales (Tomasevic, 2018)..
Process
Because Lidl uses a bulk selling strategy, they implemented an inventory check system in
their supply chain, which allows them to keep track of inventory levels and ensure that
products are available according to client demand (Nisters, 2018) Aldi, on the other hand,
places a greater emphasis on its online delivery system process (Zenezini,2018)..
Physical evidence
Lidl makes efficient use of shelf space by offering its products in distinct colours that are
immediately distinguishable on store shelves. In addition, the corporation is developing a
strategy to increase its physical evidence (Zenezini,2018)..

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Task 2 Marketing Plan
2.0 company goal and objective
Goal/Objective Company mission Challenges
The company's mission is
to improve people's living
standards by ensuring that
high-quality products are
available on the market
which ensure customer
satisfaction.
 To provide a high level of client
satisfaction with the product.
 Ensure that quality and value are
provided by optimising and
inventive processes, as well as the
utilisation of technology and
people.
The major
challenge for the
company is the
high competition
in the good supply
chain market.

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Company Current Situation Analysis
3.0 Swot analysis
Strengths Weaknesses
Low prices: The company's main
strength is that it offers daily products at
low rates, and it also offers promotions
in specialized categories.
Customer satisfaction: Lidl has been
able to gain customer satisfaction and
play an essential part in attracting new
consumers as a result of its low prices,
speedier checkout, and short queue
times. (Tomasevic,2018)
Automation: Use in product stages to
ensure optimal resource utilization and
cost reduction (Schmid, 2018). It also
ensures product quality uniformity.
Diversification: Moreover, the company
has a diversified workforce, private label,
and has a large product portfolio
(Quix,2019)
Research and development: company is
investing high in R&D, however, it is still
low than the competitors.
Rent property: Lidl work in the rented
property rather than purchasing.
Current ratio: current ratio to meet the
short-term financial obligation is lower
than the company average, which can lead
to the liquidity problem (Tsene,2018)
Integration: due to the Lidl structure, the
company fails to have a successful merger
aiming at vertical integration.
Opportunities Threats

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Internet: due to the high usage of the
internet, can able the company to
increase its online presence.
Social media: social media can be used
more efficiently to increase the sales of
the company, also it can be used for
promotional activities.
Heath products: Due to the increase in
health awareness, it can help the
company to promote and sell health-
related products.
Income: Households will be able to
make more purchases when their income
rises. Furthermore, the government has
loosened regulations, which can assist
companies in their supply chain
processes. Additionally, low credit rates
can assist customers in expanding their
spending power which can assist the
organization in increasing sales.
 High input of competitors in the
research and development.
 The new entrant in the market.
 Uncertainty in linking to the
political and environmental
condition
 Fluctuation in the inflation and
interest rate due to the pandemic.
(Jack et al, 2018)
Pestle analysis
 Political: The Brexit act in the United Kingdom has been a difficulty for discounters
since a fall in the value of the pound has resulted in an increase in price. This event
may have an impact on Lidl as well because 70% of its products are sourced in the
United Kingdom, which may become more expensive as a result of the Brexit vote.
 Furthermore, Lidl will be unaffected by the import tariff because it focuses on local
products and attracts more customers.
 Economical: present pandemic economic crises left consumers with less income
which impacts Lidl in their selling activity as consumers are more reluctant to spend
on the luxury good. However the growth of sales increases in their daily use product.

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 Social: Initially, the company targeted low-income consumers; however, the company
is now focusing on the middle and upper classes by "initiating a healthy product
chain, an initiative to sustainably source wild fish, and developed initiatives to offer
vouchers to entertain families, including free admission for children to LEGOLAND."
 Technological: focused on technological improvement
 Legal: responding to laws and regulations to avoid the reputational cost.
 Environmental: put high focus on building a sustainable environment by making
changes in packaging.
Ansoff’s matrix:
Existing product new
product
Lidl microenvironment analysis
Factor Description
customers  Customers have high switching power due to the
abundance of substitute options available on the
market.
makret penbetration
expansion in the local retail chain
product develeopment
develop innovative product
develop e-commerce online store
makret development diversification
through innovative product
money value
develope,penetrate
and diversify

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 Customers are not loyal to brands, and they are
extremely price sensitive.
 When it comes to grocery shopping, customers
are using the impulse buying approach.
Competitors
Due to the high number of retailers in the market, grocery
stores face a lot of competition, which necessitates the
development of new products.
Furthermore, almost every retail store employs a discount
strategy, posing a threat to Lidl's discount policy.
suppliers
Maintaining a positive relationship with a supplier is a
difficult and necessary task.
Because of the discount strategy, Lidl had difficulty
changing suppliers.
(Zenezini,2018)

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4.0 REDESIGN MARKETING OBJECTIVES
SMART
Marketing objective are redesigned base on smart objective.
GOAL
1. Bring awareness of the brand.
2. Eliminate the negative perception target all class levels.
3. Build customer loyalty, trust and satisfaction.
4. Increase the market share and sales by 10%.
5. Marketing objective are termed to achieve in the time of 6 months.
5.0 STP Model to Achieve the Marketing Objective
Segmentation
Psychographic segmentation: Lidl can market its product by breaking the customer
group into a segment based on the lifestyle of the customer and the attitude of the
customer.
Behavioural segmentation: Lidl can market their product by breaking the customer
group into a segment based on the buying pattern, frequency of usage, usage occasion.
Demographic segmentation: Company can use demographic segmentation by
segmenting people on the basis of income.
Targeting:
The corporation may utilize cheap pricing methods in its marketing campaign and
advertisement to attract price-conscious clients. Furthermore, companies can use
psychological pricing methods, such as charm pricing, to target customers who are
hesitant to acquire high-value products.
A firm might seek to apply an innovation strategy at work to boost product sales
because this approach can help with various products, which is beneficial for
psychographic segmentation targeting.

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Moreover, in order to fulfill the loyalty, trust, and satisfaction of the customer, the
company can implement the reward program in their marketing strategy by employing
“buy 2 get the 3 free”
In order to create the presence of the brand company will adopt a geofencing
marketing strategy by giving messages about the product. It is according to the
research Quix, (2019) consider the most effective marketing strategy that brings the
customer to the outlet.
Positioning:
The positioning strategy that is used in our marketing plan would be the quality-cost
approach. As in our marketing objective is related to target the overall customers, and
to eliminate the negative perception, therefore, we provide the product of high quality
in low cost.
6.0 Resource Allocation
Resource required Allocation of resource to the plan
Technological resource Technological resource can be used in the allocation of the
marketing by the use of eth digital mediums such as social
media marketing, Facebook marketing, Instagram marketing.
Human resource Human resource can be used for the public selling marketing
strategy and direct selling marketing strategy.
Capital resource
The main resource need by the company is in the capital
form which can be allocated in the marketing activities such
as for the social media marketing, campaign development,
advertising, internet marketing.

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Marketing Budget
7.0 Implementation plan
By segment Implement Date of
expected
completion
Value
Demographic segmentation To target
customers based
on their income
and family size
company will
implement
discount strategy
in marketing,
promotion
strategy, buy one
get one free and
1 month It create value of increase
sales for the company.

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voucher strategy.
Behavioural segmentation
To target high
class customer,
company will
implement event
marketing
strategy, also
company will
implement niche
marketing
strategy.
2 months
Help in getting higher
awareness in the elite
class.
Psychographic segmentation
In order to target
customer with
different belief
and values,
company will
implement
personalized
strategy for
targeting the
particular group.
3 months Increase sale for long
term
By product
implementation
Date of
expected
completion
Value
Marketing Campaign
development
2 months Increase awareness and engagement of people
with the brand
Flyer and poster
development 1 month Help in delivering the message of the company
Data collection and reporting 2 months Result in the development of relevant
marketing strategy
Promotion marketing event 1 month Assist in gaining people's trust and
establishing long-term relationships with

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customers.
Social media marketing 2 month Assist in increasing the company's likes.
Email marketing 1 month Assist in delivering the company's detailed
message to customers.
Giveaway marketing 1 month
Help in attracting a large number of
customers, as customers are more likely to buy
products that include a giveaway.
Television advertisement
marketing 1 month Assist in the delivery of a message to a bulk
audience.
SEO marketing 1 month Help in attaining the top position at the search
engine which can help you get more attention.
8.0 Measure and control
Marketing activity Date of
review
Monitoring methods/ person
 Visit of
customer
Weekly
Observation method
 Positing of blog Daily
Content manager
 Views on page Daily
Google analytics can be used.
 Like on page Daily
Marketing manager would measure the situation.
 New followers
on page
Weekly
Advertiser would measure the situation.
 Campaign
engagement
Monthly Marketing manager would measure the situation.

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 Usage of
vouchers and
coupons
Monthly
Marketing manager would measure the situation.
 Using previous
data, determine
how many
customers
return to shop.
Monthly
Conduct survey to measure the situation.
 Evaluate the
customer's
query
Daily
Customer service would measure.
 Determine the
customer's
purchasing
behaviour for
the newly
marketed
product.
Weekly
Measure purchasing pattern by using the software.
 Customer
purchasing
pattern with
reference to
marketing.
Weekly
Conduct survey to measure the situation
Control
Customer analysis: One of the control techniques that Lidl can employ is customer analysis,
which entails the preparation of a detailed analysis of a customer's purchasing patterns. This
marketing control technique can be used to achieve a company's marketing goal by gathering
relevant customer data in terms of purchasing patterns and tabulating it in a spreadsheet for
comparison.
Testing research: The Company can use testing research as a control technique to evaluate the
success of a newly launched product.

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Conclusion
Lidl is a company that deals with a wide range of grocery products on a global scale. The first
section of this report compares the Lidl marketing mix strategy to the Aldi marketing mix
strategy. Furthermore, in order to increase its market share and sales, this report identifies
some key strategies that Lidl should implement in order to achieve its long-term goal of
increased profit and market share. Furthermore, this report highlights the marketing strategy
that Lily can implement in order to help the company achieve its goal.
References
Jack, et al (2018)
Jack, L., Florez-Lopez, R. and Ramon-Jeronimo, J.M., 2018. Accounting, performance
measurement and fairness in UK fresh produce supply networks. Accounting,
Organizations and Society, 64, pp.17-30.
Tomasevic, N. and Spasojevic, M., 2018. LIDL'S MODERN BUSINESS OPERATIONS IN
THE DOMESTIC AND INTERNATIONAL MARKETS. Economic and Social
Development: Book of Proceedings, pp.346-353.

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Franck, A. and Nemes, I., 2018. Dutch Supermarket Supply Chains: Ending the human
suffering behind our food.
Zenezini, G., Lagorio, A., Pinto, R., De Marco, A. and Golini, R., 2018. The collection-and-
delivery points implementation process from the courier, express and parcel
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Tomasevic, N. and Spasojevic, M., 2018. LIDL'S MODERN BUSINESS OPERATIONS IN
THE DOMESTIC AND INTERNATIONAL MARKETS. Economic and Social
Development: Book of Proceedings, pp.346-353.
Schmid, S., Dauth, T., Kotulla, T. and Orban, F., 2018. Aldi and Lidl: from Germany to the
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