Lidl's UK Grocery Market Analysis: Marketing Strategies and Insights

This report provides a comprehensive analysis of Lidl's marketing strategies within the UK grocery market. It begins with an introduction to marketing principles and then delves into a detailed market research section, including SWOT and PESTLE analyses to assess the external and internal factors influencing Lidl's performance. The report further examines competitor analysis using matrices to understand Lidl's position relative to Tesco, Aldi, and others. It also applies the Boston Consulting Matrix and Ansoff Matrix to evaluate strategic options for growth and market penetration. The report concludes by exploring the 7Ps marketing mix model to target customers effectively. Overall, the report offers valuable insights into Lidl's current market position and suggests strategies for future success in the competitive UK grocery retail landscape. The report covers various models like SWOT, PESTLE, competitor matrix, Boston Consulting Matrix, and Ansoff Matrix, and also explores psychographic, behavioral, and socio-demographic factors, along with theories of product description, brand image, pricing, and the 7P's marketing mix.

Introduction to
Marketing
Introduction to
Marketing

Table of Contents
INTRODUCTION ..........................................................................................................................3
Main Body: Research/ findings/analysis.........................................................................................3
TASK 1............................................................................................................................................3
Conduct market research on the current UK grocery retail market ...........................................3
TASK 2..........................................................................................................................................11
Analyse the conduct research on the UK population to determine which segments will provide
Lidl company with higher yield of consumers..........................................................................11
TASK 3 .........................................................................................................................................13
Relevant approaches for marketing strategies...........................................................................13
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................19
Books and Journals ..................................................................................................................19

INTRODUCTION
Marketing is the essential part in the organisation to increasing the product sales and
opportunities for the company. The main objective of the marketing is to get the sales high and
make brand image in the competitive market. Present report will base on introduction of
marketing of retail sector in which report will discuss about Tesco, ALDI and their competitors.
Along with that, it will also discuss about the segments who are driving this growth, using
relevant socio-demographic, psycho graphic and behavioural variables, develop detailed segment
profiles. Along with that, in third segment it will also explain about the 7Ps marketing mix model
in order to target the market customers. UK grocery market is covered by the big organisations
such as ALDI, Tesco, Ads etc. In terms of earning profit revenue is 163.2 billion. In UK market
there are 102,537 stores convenience retailing. In which there are many types of retailing
segment convenience retailing, traditional retailing, supermarket and superstore and alternatives
channels. Grocery stores in the UK market is highly demanded and effective and approachable
for the customers. Grocery stores provides variety of services to the customers as per their needs
and wants. They provide all brands and variety at low prices or at reasonable price. It is the most
effective market. Present report covers the section in which they discuss on the models of
SWOT, PESTLE, Competitor matrix, Boston Consulting Matrix, Ansoff Matrix. Furthermore, in
another segment report will research on psychographic, behavioural and socio demographic. In
last section it will discuss on the theories of product description, brand image, pricing objective
strategy and 7P's marketing Mix. Moreover, it will cover the all part of the grocery store which
helps to influence the market conditions.
Main Body: Research/ findings/analysis
TASK 1
Conduct market research on the current UK grocery retail market
Lidl wants to emerge with Tesco in terms of more profit or expansion through which they
enhance their market share and supermarket stores in UK market. It provides more opportunity
growth to the company (Ahn, Cho and Han, 2014). In terms of expansion there are various
factors which affects company market structure and growth. Some external or internal factors
affect company growth. In order to analyse the UK grocery market. It needs to adopt effective
research or analysis models to get the best productive information in order to reduce the negative
impacts.

SWOT Analysis
Strength
 Lidl is the price and quality attractive
company (Lidl SWOT analysis
presentation, 2016).
 It has store standardisation and
accessibility (Armstrong Kotler, Harker
and Brennan, 2015).
 Lidl was the Grocer of the year in
2015. It has good product choices and
selection process.
Weaknesses
 Differentiation from competitors such
as Tesco, Aldi, Asda etc.
 Lack of stock availability by the end of
the day.
 Lack of cash counters in the stores.
 Lack of customer services.
Opportunities
 Adopt customer health trends and those
types of products and services. Also
adopt organic product items to attract
customer trust and loyalty.
 Technological up gradation in order to
provides flexibility in working.
Threats
 Customer concern and grievance.
 Competitors prices and market
strategies (Lidl SWOT analysis
presentation, 2016).
 Changes in market environment.
PESTLE Analysis model
Political factor
Political factors are those
factors which influence by
political vulnerability across
globe currently. In order to
identify business opportunities
for Lidl, they need to adopt all
Economical factor
After the impact of Brexit in
UK market. Prices has been
increasing of product and
services. This approach
worked for Lidl with shoppers
turn to discounters. In inflation
Social factor
Social factors influence by
societal factors which creates
health concerns, environmental
protection etc. through which
company get affected. Lidl
Provides quality services to the

political changes in the
business environment. To get
market attraction company
needs to apply all political
changes in the business to get
customer attraction.
in grocery market was rose to
2.9% in May. This impact
gives positive impact on the
company in order to provides
goods and services in cheaper
products. This is the
opportunity for the company to
adopt better environment.
Besides, economic factors
affect company by changes in
interest rates, inflation rates,
foreign exchange rates etc.
customers for their healthy life.
Besides, company also
provides all kinds of range to
their customers.
Technological
Supermarket are increasingly
adopted high advanced
services in order to grab the
flexibility and effective
working growth. It helps to
enhance the customer service.
In order to get the best
effective prices. Technological
factors affect company
atmosphere in positive
manner.
Legal
Legal factors are also very
much effective and useful.
Legal factors affect company
environment by the
interference of government.
On the other sides, legal
factors frequently affected by
scandals the content of food
products.
Economical
Environmental factors is the
another significant factor
which affect company
atmosphere and planning
process. This is the another
changes done by the company.
Environment is affected by
changing in customer needs
and wants, market changes,
taste and preference etc. super
market get easily affected by
the those factors.
Competitor Matrix analysis model
This model of competitive matrix helps to analyse the company competitive advantage.
In terms of supermarket and hypermarket. It provides competitive advantages growth. It helps to
identify the company competitor approach and strategies in order to grab the market position.
This helps to determine the competitor current strength and weaknesses. This helps to another

company to make potential changes in the company in order to stable the company stability and
brand value ion the market (Babin and Zikmund, 2015). Lidl having many competitors who
affect the company functions and strategies such as Tesco, Aldi, Asda and M&S. Lidl is the
company which deals with supermarket which deals with variety of services. There are the
competitors' analysis of Lidl company.
Factor Lidl Tesco Aidl Asda
Low Price 4 5 4 4
Superior quality 4 4 3 3
Training of
operations
5 4 5 5
Unique features 4 3 5 4
Customer
services
5 5 4 3
Innovation &
Creativity
5 3 2 5

On the basis of above ranking. Company can easily target effective controls and efficient
market growth in terms of effective controls (Camerer and Yoon, 2015). Such as customer
support services Aldi needs to focus on the customer service in order to maintained the effective
control. Competitors price or strategies help company to adopt effective control in order to make
the effective work and process. With the help of competitors Matrix company measure itself
position in order to gain more effective pricing strategies. This helps to follow these measure
points :
 Improve services which helps to improve customer strategies more effectively.
 Develop customer training process to make aware about the services how they use and
take in which manner.
 Improves the ways to adopt customer service to grab customer attraction.
The Boston Consulting Matrix
This is the another model of analysis for the benefit for Lidl company. This also known
as BCG model which gives new advantages and competitive model. It is the another strategic
model which gives effective ways of working (Chandon, Laurent and Valette-Florence, 2016).
This is the model which helps to company attract customers by removing market trends. In order
to stable market position and Lidl company attract customer focus and market attractive. There
are four factors or components which influence company activities.

Dogs: Dogs have low market share this situation of market gives low market
performance neither generate nor consume a large amount of cash. It is the moderate approach
which neither good nor bad (Eagle and Dahl, eds., 2015). Dogs are cash traps because of the
money tied up in business that has little potential.
Question Marks: this market situation gives initiatives in which they showing rapid
growth in order to get the large part of the cash amount. It is the large cash consumption market.
In this market situation Lidl can easily get effective market share and earn better amount of profit
margin. This question mark express the opportunity for the Lidl to get the Supermarket approach
and customer market approach. This situation give opportunity to company to adopt strategic
ideas and growth to become star of the market. In terms of competition there are many
supermarkets and hypermarket in UK. If market growth is decline then market will degenerate
into dog. Question mark generate ideas for the company weather investment is fruitful for the
company or not.
Stars: Star shows large number of profit and cash because of strong market share, also
they consume large part of money due to high growth rate (Fill and Turnbull, 2016). If star
approach maintains their position it will become cash cows when market rate declines. Portfolio
of diversified company helps them to become next cash cows and ensure cash generation.
Illustration 1: BCG Growth-Share Matrix
Source: BCG Growth Matrix Model, 2010

Cash Cows: it is the positive growth market it gives positive return to the company. It
gives higher rate of return in order to generate more cash than they consume (Fill and Turnbull,
2016). Cash cows gives opportunity to turned question mark where market is growing in rapid
manner in order to safe the administrative costs
Ansoff Matrix analysis
It is the another model of analysis strategic planning tool which helps executives, senior
managers, market devise strategies for future growth (Fine, 2017). In which there are four major
segmentation which helps Lidl to adopt new market strategies in order to meet the customer
needs and wants.
Market Penetration: it is the first strategy to analysing the strategic approach and
effective working targets (Ansoff Matrix, 2015). Market penetration strategy is the growth
strategy which helps to focus on the selling the existing product and services in the market. In
order to achieve this target company needs to follow some objectives to full fill the market
penetration approach such as giving below:
 Lidl needs to maintain market share and current focus on product and services. In order to
enhance the current product and services company needs to adopt combination
competitive pricing strategies, advertising, promotion and more resources in order to
increase the sales of products.
 Secure the market position by giving customer services and trust among customers. Lidl
should keep their market domain position alive (Hair Jr and Lukas, 2014).
 Enhance and give energetic appearance within market. For that, organisation needs to
adopt marketing campaign, supported by a effective pricing strategies make market
attractive and design full (Ansoff Matrix, 2015).
 Increase usage by existing customers by give them additional services or advantage in
order to increase the sales of the company.
Market Development: It is the another strategy of Ansroff model in which company
enhance the market growth by new developments (Iacobucci, Popovich, Bakamitsos, Posavac
and Kardes, 2015). This approach helps to make the planning for the company where they need
to sell their product and services into the new market. In order to enhance market development
company needs to adopt following ways giving below:

 Develop new geographical market such as adopt new market strategies in some different
cities and countries.
 New product dimensions or packaging styles for the company in order to grab customer
focus and effective sales (Kumar, Keller and Lemon, 2016).
 Adopts new channel of distributions such as offline, online, through shipping etc.
 Acquire new pricing strategies in terms of getting customer approach and attraction level.
As compare to this strategy with market penetration market development is riskier than other.
Product Development: Product development is most effective and productive strategy
for Lidl to adopt customer focus. Every customer wants to get new product and service in
frequent manner. In order to satisfy the needs and wants. For that, company needs to squire
market research in order to analyse the best market demands according to which they make
product development strategy (Needham and Smith, 2015). It is the aim of the company to
introduce new product developments to stable the company position in the market. It helps to
sustain the market competencies and market value among other competitors. In order to make
product development strategy company needs to adopt following marketing synapsis as giving
below:
 Lidl needs to acquire and invest on Research & Developments which assists to make
innovative ideas and growth strategies.
 Detailed insights into customer needs and want. This helps to make the productive
atmosphere (Proctor, 2014).
 Make sure that company launch and organise product first in the market. This makes
good impression in front of the customers.
 Adopt effective market research to determine consumers needs and wants.
Diversification: it is the another growth and effective process which necessary to adopt
by the company in order to introduce new services and productive work. In which company
moves to the other market. So that, risk factors are become more violent in the environment. For
long terms stability it is important for Lidl to introduce new product or market expansion to
attract customer focus. In terms of equal balance of risk and reward gives equal opportunity to
the company.

TASK 2
Analyse the conduct research on the UK population to determine which segments will provide
Lidl company with higher yield of consumers.
In order to identify that which customer or consumers are highly yielded for Lidl in order
to earn profit revenue (Sheth and Sisodia, 2015). It is very necessary for the company to identify
the customer market in order to provides services according. In order to analyse the target market
customers Lidl needs to research social demographic segments, psychographic segments and
Behavioural segments.
Socio-Demographic segments 416
Socio-Demographic factors is the division it is the another effective role to making new
approach which makes effective working (Consumer Segmentation, 2018). It is the segments in
which customers are comes under three categories middle, lower and upper class. This
demographic segmentation is the simplest and wider type of market segmentation used. Its
divided in terms of age, gender, family size, income, occupations, religion, race and nationality.
This market segmentation relies where market has different products at different ranges. It is the
most challenging and effective process it is the another main objective of the company to attract
different types of customers at different age, gender, family, size and income groups. Such as
lower level group of people buys cheaper prices of product and services, middle class people can
afford affordable prices and nor larger or smaller. Besides, upper class people can easily buys
high price of services or products. In UK market 75% are belongs from middle class family 30%
belongs from upper class family. Lidl needs to provide products and services on the basis of
customer purchasing power (Sojka, 2016). Company needs to identify the customer lifestyle,
needs, wants, population ration in terms of adopting new product developments. In order to
adopt new business plans company needs to go through Mosaic it is the UK powerful cross
channel consumer classification system built for multi channel world (Consumer Segmentation,
2018). It is the most effective and efficient tool which gives insight depth of target audiences. It
helps organisations to adopt pricking, product or inn innovative plans according to the
demographic models.

Psycho graphic segments
Market is full off different styles of customers and their preferences (Sojka, 2016).
Organisation needs to analyse the effective sources which necessary to adopt according to the
company objectives. Moreover, psycho-graphic segments are includes several variables which
describes buyers and their segmentations such as social class, lifestyles or personality. These are
explaining below:
Social class
Social class is refers and classified as upper lowers, lower lowers, middle class, upper
middles, lower uppers and upper class. It also includes occupation, income level of buyers. With
the helps of analysing the needs and wants of these factors company can easily target their
potential customers and their priorities (Totten and Cross, 2015). This process helps to gaining
the customer trust and market popularity of the company.
Lifestyles
People are loves to purchase those products and services which is demanding and trendy
in the market. Customer purchased services or products on the basis of its own level and
according to income level. Lidl must provides products as per the needs and wants of the
customers. Lifestyle is the most trendy tool of making process and effective process to make
goods productive (Walker, 2016). Customers purchase goods and services on the basis of
innovations, traditions, contended conformers, esteem seekers. Company needs to calculate hoe
many males and females are in the place who prefers which kinds of product and services which
helps to grab the market customer attraction. On the basis of UK, as per the survey of national
readership survey UK had a similar classification of consumers in the past. Young girls or
women prefer trendy and latest collection of products instead of old. Besides, small children
prefer 3D games instead of toys. So that, according to buyers demand Lidl needs to adopt
customer market segmentation.
Personality
Personality relies on specific brands which shows customer status and value. These kinds
of customer segmentation needs high branded products in the store in order to grab the customer
attraction. Lidl needs to research on the population criteria of UK in order to get the number of