An Analysis of Lidl's Marketing Strategies in the UK Retail Market

This report provides a comprehensive analysis of Lidl's performance in the UK retail market. It begins with an overview of the UK grocery market, identifying areas of growth and the factors impacting Lidl's operations. The report examines key competitors such as Tesco, Sainsbury's, and Morrisons, analyzing their market share and strategies. A SWOT analysis assesses Lidl's strengths, weaknesses, opportunities, and threats. A PESTLE analysis explores the political, economic, social, technological, legal, and environmental factors influencing Lidl's business. The report concludes with recommendations for improving Lidl's market position and achieving sustainable growth within the competitive UK retail landscape. The report highlights the importance of marketing in driving business effectiveness and innovation within the UK market. This report is a valuable resource for students seeking to understand the complexities of the retail sector and develop effective marketing strategies.

Introduction to Marketing

EXECUTIVE SUMMARY
In respect to look towards the present study, it can be stated that effectiveness increasing
to develop the target market. In this regard, marketing helps to concentrate on the systematic
work performances in the business to make effectiveness. Therefore, report summarised about
the analysis that helps to create innovations and creativity in the UK market.

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Brief overview of UK retail market and identify specific areas of product/market growth........1
Factors impact to the chosen company........................................................................................3
TASK 2............................................................................................................................................9
Consumer segment for driving growth........................................................................................9
TASK 3..........................................................................................................................................11
Knowledge and information with 7Ps marketing mix model....................................................11
Recommendations......................................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Marketing consist important role in every business to expand and determines creative
activities in it. With respect to carry marketing functions, every business set their targets and
goals which helps to attain desired results. Further, it also helps to expand business in new and
global areas so that profits and revenue could be expanding as well. Therefore, it can be stated
that marketing considered important role in the enterprise to carry its activities and tasks in
different areas of the world. In order to carry the present report, it based on Lidl which is one of
the largest supermarket in UK and compete with different other organisation. For gaining insight
knowledge of the present report, it is carry marketing activities that develop products and
services in retail enterprise. In addition to this, it focuses on the competitor market to increase
effectiveness and develop profitability as well. Moreover, report provides methods of promotion
in different areas of the world to deals with innovative activities and targets as well. At last,
recommendations given to make effective function in the business environment.
TASK 1
Brief overview of UK retail market and identify specific areas of product/market growth
Grocery or retail business provides several types of goods and services. Therefore, they
carry their functions and operations to attract people in the business environment. In the UK,
retail market considered different competitors because same products and services are provided
to attract customers in the enterprise (Wellington, Faria and Gowing, 2014). In this market UK
considered more than 27 million customers with safe, qualitative and affordable products. In
economy, this sector considered major part to attain desired results and outcomes. Sales of the
country are growing around the £179 every year from their operations. This amount is
contributes in year of 2016. Value of food and drink considered in high perspective to attract
several people at workplace.
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Figure 1 Illustration 1: GREAT BRITAIN GROCERY SHARE DATA
Source: (Kantar World panel, 2017)
In order to look for the above graph, it can be depicts that market growth of the chosen
business increases. In the grocery market, there are around 3.7% growth considered through their
products and services. Therefore, it helps to make high sales and profits to deal with different
aspects to attain desired results. However, there is downfall is around 0.2% in the total market
share of Morrison. In ASDA sales increases continuously, with increasing its additional shoppers
and other perspective as well. Every company started to establish their local store in all over the
market so that chains and online channels are also increases for premium products and services.
Lidl has increases by 17.8% in 2016. Therefore, it can be stated that opportunities continuously
increases to make innovations and creativity in the business.
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Lidl is the one of the global enterprise which deals in super chain market in Germany.
The company taking approach to fulfil their customers demand with providing some extra
advantages. Staff members considered their activities to increase their capabilities and provide
services to customers. The company provide products on cheapest price so that they can easily
attracted customers at workplace. Vast infrastructure facility of the chosen business provides
different kinds of product range in market (Wellington, Faria and Gowing, 2014). Therefore, it
will help to earned around £4.7 from their different stores in all over the world. The enterprise
also tries to increase their factors to manage functions and attain more systematic work
performances at workplace. With the help of the innovative and creative elements, the chosen
business able to deal with their competitors easily.
In the UK, there are different competitors exist which deal in same business so that so
that there is wide competition consider which impact on the operations and functions of Lidl. In
addition to this, earned revenue of the company around £5.8 in last year which is low as compare
to other competitors.
Factors impact to the chosen company
Tesco
In the UK, there are several factors exist that create impact on Lidl. This is because,
different aspects of operations and functions of enterprises create impact on chosen industry.
Tesco is one of the major elements in grocery store which create impact on the chosen company.
This is because, it has more than 6553 stores in all over the world who earned more than £55,917
in last year. There are several people associated who has subsidiary companies that share high
part in grocery stores. Along with this, there are different subsidiary exist in term of Tesco
mobile, Tesco bank, etc. which impact on customers. This is because Tesco continuous
expanding their market to deal with innovative characteristics and functions. It is one of the
major reason due to which Lidl gets affected. The chosen business is only consider their
operations and functions in one sector so that they are unable to contributes from the other
sources. As compare to Tesco, the selected business has only 5% contribution. Beside this, Tesco
provide online services but Lidl no consider in their operations and functions.
Sainsbury
Sainsbury is also one of the major retail sector businesses in UK. They are also providing
different kinds of products and services in more than 1415 stores in all over the world. The
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company earned around £26.445 in last year. This company also considered their operations and
functions as subsidiary to set brand image and make more revenue and profits. High grocery
products and services considered by this company. (Martin, Rosenbaum and Ham, 2015) It has
also more shares in grocery term to make high economic results in country. With the help of the
different kinds of market share, the company able to develop their effectiveness in the market.
Morrison
Further, Morrison is also deals in the grocery products and services of UK market. It is
one of the largest chains in supermarket term of the country. Therefore, they deals to make some
innovative through concentrate on their 498 stores. It has less stores because it deals in
qualitative products and services to attract more people in the business. With the help of the
offering different pricing strategy, they are able to attract more customers in the business
environment to considered innovations and development in the business (Tomczak, Reinecke
and Kuss, 2018). It gives wide competition to Lidl. It is main reason due to which Morrison
consider their maximum operations to make systematic work performances. They contribute
around 10.1% as compare to the Lidl in last year operations. Revenue of the company in last year
is around £16.317 billion.
Figure 2 PERCENTAGE GROWTH OF LONDON GROCERY MARKET
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Source: (Statistics of grocery retail market, 2017)
From the above factor analysis, it can be stated that Lidl has many competitors in UK.
They need to tale some actions to beat other competitors and earn more profitability at
workplace. In addition to this, there are several strategies considered that made to assess the
market conditions. With the help of these strategies, the company can develop their profitability
and create systematic analysis at workplace. In the year of 2017, grocery considered more share
and profits to deal with the different products and services. With the help of the market value, it
has been seen that UK grow very fast from 2007 to 2017. In this way, every company share their
profits and revenue to make high economic results at workplace (West, Ford and Ibrahim, 2015).
In the UK, Lidl considered global discount in supermarket chain so that they considered
operations in Europe and USA as well. The company has more than 10000 stores so that it
consist major profits and revenue in different areas of the world. In order to beat with the high
and fresh quality of food, the company considered their systematic operations in the UK market.
In order to beat the other competitors, the company provide cheapest online services with
effective marketing (Iacobucci, Popovich and Kardes, 2015). Therefore, all factors create major
impact to understand systematic results at workplace. In this context, following analysis consider
in the UK market:
SWOT analysis
This analysis assists to create proper understand strength, weaknesses, opportunities and
threats in the business.
Strengths: In order to make effective results, Lidl consist several operations and functions
to increase their products and services. With the help of the less price, the company able to
attract customers easily. This is because, the company has chosen affordable products to the
customers those want to purchase cheaper products. In addition to the cited firm also implement
their label to maintain exclusive range in respect to maintain security at workplace. In the
company, there are several stores through they can make association of the large number of
customers at workplace.
Weaknesses: However, there are several weaknesses exist towards the chosen business.
Lidl never take part to make high market share in the grocery products consideration. Further,
the company requires more fund to invest their money to make their consideration in global
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environment. It requires increase so that the business able to make their effective results in the
country (Tomczak, Reinecke and Kuss, 2018).
Opportunities: Furthermore, there are several opportunities in front of the chosen
business to make their products and services in high aspect. In this way, through globalisation
Lidl able to sell their products and services in different areas of the world. It is also helpful to
attain more share and profitability in the market. It helps to serve in the large market share easily.
Threats: In the UK, there are several competitors exist that create negative impact to deal
with the products and services in the market to Lidl. This is because, all business provide
different kinds of products and services in this aspect. In addition to this, it also consist impact
due to price war. International expansion also done through sending more competitive products
and services in the market. It is the grocery retailer so that it create threat to the company
(Nowak, Gellin and Butler, 2015).
In order to look towards the above analysis, it can be stated that Lidl need to focus to
overcome issues to deal with several nations. With the help of innovative products and
characteristics, they are able to attract different people in the business environment. It also assists
to collaborate to make more profitability and revenue as well (Iacobucci, Popovich and Kardes,
2015). Websites of the selected business also need to consider at regular interval to attract more
people.
PESTLE analysis
 Political factors: Political factor create major impact on the business. This is because, it
comply with rules, regulations, norms, etc. Government of the country set some policies
which essentially followed by each company to produce effective results in the business.
It is the major aspect on which enterprise need to focus to increases their effectiveness.
UK government set advance program which create impact on innovations (Babin and
Zikmund, 2015). Structural changes are also needed to the chosen business which set as
norms by government.
 Economic factors: Economic element of the country also impact on the operations and
functions of the business. Buying power of customer generally create impact on the Lidl.
This is because; the chosen company need to make their cope up with GDP element of
the industry. Stable financial system is the major strength in the enterprise (West, Ford
and Ibrahim, 2015).
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 Social factors: Nowadays, concern of people related with the nature which is continuous
increasing. Eco-friendly products are most useful element that like by people. The chosen
business also need to put their efforts and satisfy needs of customers as per market
demand. Furthermore, Lidl also need to concentrate on religion and culture of the
customers and provide products accordingly. The stock need to maintain as per the same
consideration.
 Technological factors: In respect to satisfy the customer demand and requirements, Lidl
need to make concentration on the advance technology through they are able to make
systematic results at workplace. In addition to this, online services create positive impact
to attract several people at workplace (Jung, Jung and Shin, 2016). Therefore, Lidl need
to implement social media tools through they can easily attract customers. It helps to
produce systematic work performances to purchase products from the chosen business. It
is also important to gain competitive advantages in UK market.
 Environmental factors: In addition to this, the chosen business has responsibility to
maintain environment of the country. This is because, their products and services require
proper waste disposal. It is the main challenge which face by the company (Nowak,
Gellin and Butler, 2015). In order to consider recycle, Lidl able to mitigate their
effectiveness easily. In addition to this, they need to join to make clean and green
environment.
 Legal factors: In order to maintain smooth functioning, the chosen enterprise needs to
concentrate on the complying with rules and regulations. In this way, laws and other
norms need to followed that are made by government in production system. Tax law need
to consider by each individual to set appropriate pricing policy at workplace. It will
assists to attain desired results at workplace (Iacobucci, Popovich and Kardes, 2015).
In order to carry the PESLE analysis, it can be stated that as per the each person requirement,
Lidl need to concentrate on their production system. Government regulations need to followed
by the cite enterprise to make effectiveness in the business. In addition to this, BCG matrix also
implemented that assists to consider proper analysis in the business to cope up the effective
advantages. In this way, high growth consider at workplace easily.
BCG matrix
In this aspect, following are certain factors describe in the business:
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 Dogs: In element is known as the cash trap that consider in the market due to low share
and growth rate. In this context, investment need to done with little potential aspect.
Therefore, growth of Lidl considered with investment amount.
 Question mark: Question mark also consider major investment amount which assists to
make rapid growth in the business. It helps to generate cash that is very low in the market
as per their share (Martin, Rosenbaum and Ham, 2015).
 Cash cows: This element helps to generate systematic work performances with more
cash to create greater returns on business assets. It helps to make high growth in the
business environment as per the growth rate (Lidstone and MacLennan, 2017).
 Stars: It consider strong market share that is main reason behind the large generation of
cash. In Ludl, this element helps to make effective functioning with high growth rate.
Therefore, it can be stated that stars are stand point for chosen business to make effective
functioning at workplace. It assists to attain desired results and develop more effective results at
business environment.
Ansoff matrix
This tool also establishes to make effective functioning at workplace. In this way, there
are several types of strategies considered to make future growth in the business. It is also
considered expansion of market to set its grid in systematic way (Nowak, Gellin and Butler,
2015). There are four elements included that are explained under here:
Market penetration: In order to considered market penetration, Lidl need to focus on the
expansion of sales for their existing products. In this way, the company need to make their
strategy through they are able to develop effectiveness in the business (Iacobucci, Popovich and
Kardes, 2015).
Product development: In this consideration, Lidl need to implement new products which
introduced in the existing market. It is more risky because, on new products all people are not
attracted easily. Therefore, it impact negatively on the different aspects of chosen business.
Market development: Further, it is another aspect in which the cite firm introduced
existing products in the entire new place so that they can easily attract new people in the
business. In addition to this, new features also added in the products and services to attract more
people (Babin and Zikmund, 2015).
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Diversification: At last, Lidl need to make their concentration on the business with new
products which introduced in the market for increase globalisation profits and revenue. In this
regard, effectiveness of the business develop through attract several customers in it.
In order to implement the above tools, the company able to implement market
segmentation and mix to understand effectiveness (Di Benedetto and Kim, 2016). In addition to
this, risk management and contingency plan also implemented to manage several operations of
the enterprise. In the respect to implement decision making matrix, Lidl able to take appropriate
decisions in their enterprise. Hence, different tools helps to take appropriate decisions at
workplace. With the help of the different tools, it can be stated that current position of the
enterprise increases in systematic manner. Negative impact also reduced to make high growth of
the enterprise (Wellington, Faria and Gowing, 2014).
TASK 2
Consumer segment for driving growth
Market segmentation is the essential element that helps to take important consideration to
divide whole market into the smaller parts. With this regard, according to the common elements
and characteristics, goals and objectives will be attaining at workplace easily. It helps to make
likelihood regarding business goods. With respect to define the target market, communication
allow in better way with potential candidates. In the retail market, there are several elements
exist that deals to identify human needs. It is typically involved activities which taken by Lidl to
promote their outcomes to attract maximum customers. With the help of the segmentation, the
chosen business also gains competitive advantages. As results, they can easily break down their
whole market into the heterogeneous with identical characteristics (Lidstone and MacLennan,
2017). Following are certain consideration in which the chosen business able to make their
different kinds of segmentation:
Socio-demographic segmentation: As per this segmentation, Lidl increase campaign that
are mainly consider among different customers. In this way, the company can break down
different categories. Therefore, it allows creating selling point at various place of the company.
Further, all types of families and other people are targeted in different group consideration (John,
2017). For example, single mother which has one child, single father which has one child,
parents who have several children, etc. With this regard, as per the religion, age, education,
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