Marketing Essentials: ALDI Case Study and Analysis

This report delves into the marketing strategies of ALDI, a renowned discount supermarket chain. It begins by outlining the key roles and responsibilities of the marketing function within ALDI, emphasizing the development of marketing strategies, management information systems, market environment observation, marketing research, segmentation, and brand image creation. The report then explores the interrelation of the marketing department with other organizational departments such as human resource management, research and development, manufacturing, ICT, administration, customer service, and finance. Furthermore, the report compares the application of the marketing mix within ALDI and other organizations, specifically contrasting it with LIDL. Finally, it presents a basic marketing plan, incorporating the 7Ps of the marketing mix to highlight how ALDI approaches its marketing activities to achieve its business objectives.

MARKETING ESSENTIALS

Table of Contents
MARKETING ESSENTIALS ........................................................................................................1
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key roles and responsibilities of the marketing function of ALDI .....................................1
P2 How roles and responsibilities of marketing relate to the wider organisational context......3
TASK 2............................................................................................................................................5
P3 Compare the ways in which marketing mix will be applied to marketing planning and how
it is different from other organisations........................................................................................5
TASK 3............................................................................................................................................8
P4 Marketing plan.......................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11
Books and Journals...................................................................................................................11

INTRODUCTION
Marketing plays a vital role in business organisations cause it understands a marketplace,
demands of customers and also involves some activities like building profitable relationships,
customer driven market strategies in order offer quality products and services to the customers.
The business organizations realized the importance of customer relationships and to establish a
strong relationships with the prospect customers they are trying to put innovative strategies.
Marketing is a major tool for a business organization that develops a market for the business in
order to gain profit. ALDI is one of the most renowned discount supermarket chains across
twenty countries and which was originated in Germany around 1913. Thus, in this report ALDI
is utilizing the marketing activities that can give it a impactful outcomes and therefore the report
includes roles and responsibilities along with interrelation among other departments, marketing
mix and a basic marketing plan (Dibb and Simkin, 2013).
TASK 1
P1 Key roles and responsibilities of the marketing function of ALDI
Marketing has am important role in a company that helps to identify potential successful
products for the target market and then it promotes these items with a differentiation among
similar kind of products. Marketing functions includes marketing research, producing a
marketing plan, and product development along with the developing strategies for advertising,
promotion, distribution for sales, customer service and public relationship. Marketing has a
significance to develop a business to increase sales and give it a new directions and enhance it
business to accumulate marketing functions ALDI is adopting its roles and responsibilities that
are given below-
Marketing strategies – The first and foremost role of marketing is the to develop
marketing strategies and business plan through identify the needs and requirements of the
potential customers. After identifying their needs marketing team provides the products and
services to the end user because without getting a knowledge of marker area whatever the
company is producing that will not get a success (Wirtz, 2012). It will drive loss to the firm in
order to prevent for such kind of risky situation it is better for a business that first it identify the
requirements of intended customer and then generate the goods accordingly. As developing
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marketing strategies are the core of marketing because strategies gives a direction to move ahead
on that path without having any kind of information a business can be drawn in to a huge loss.
So, ALDI requires to identify a needs of the people so that it can easily make some strategies that
are beneficial for the users cause customer need is prior for business. The strategies are
developed in a certain way that can increase the sales as that are the main focus of business but it
is possible only in one circumstances that a firm should know the preference of people (Pike,
2015).
Management information system – Marketing Information System or MIS is a process
to gather the market information regarding products, planning, implementation and controlling
strategies. It is a statistical documentation of various factors which are involved in the
development of product so that before implementing any planning MIS is used to analyse all
necessary elements which required in a construction of product. MIS is a written form of
document which consists of all the phases and facts of product development that are used to take
under consideration before deploying the products and services. Before putting a new product in
the market MIS will be useful for ALDI and it will would help it to achieve its objectives within
specific time.
Observing marketing environment – Observing current market trends is essential for
an organization cause it offers constructive approach to develop products and services. These
modern developments includes change in traits , socio – economical forces, internal and external
changes, political and legal changes in the marketplace. Because monitoring market environment
is always gives a better output in terms of develop of new product, a close of watch on changing
trends provides a deep knowledge of improving cycle as much as the knowledge will be
developed the producing goods will also give a good results.
Marketing research – Marketing research is also a crucial function cause it provides a
deep knowledge about consumers they really need that product or not. The intended products
should acquire the consumers with a satisfaction and that is also beneficial for the firm to attain
economic contentment. Marketing research is conducted to know the interest of people and their
priorities that can offer a big pool of economical benefits to the organization. If ALDI is
establishing its supermarket in Brazil then it required that it should conduct a marketing research
to provide the necessary stuff for the residents if it is unable to fulfil their demands then the
business can go in loss (Lamb, Hair and McDaniel, 2011).
Marketing segmentation – Marketing segmentation is method of conducting research
within a particular area to know the requirement of the people where a business is going to
developed. There are three basic marketing segmentation which has a specific criteria to conduct
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a research which includes, demographic segmentation, geographical segmentation, behavioural
segmentation. These segmentations aids to provide a particular market are for the product sale,
like if there are high number of kids then ALDI will provide more products for kids.
Brand image – Creating a brand image is a foremost responsibility of marketing it uses
advertisement and other promotional activities that can create a brand image. One of the most
thing is marketing campaign that can be promote business in both manners online and offline. A
good publicity makes a strong brand image among public. ALDI uses a good publicity and that
the results in a strong relationships with its customers across the world (Berkowitz, 2016).
P2 How roles and responsibilities of marketing relate to the wider organisational context
In present time almost every organization has marketing team in order to gain more
business profit but marketing team is not an only department which impacts on an organizations.
There are several department in any company and marketing team needs to maintain a
interrelation with all other departments so that it can produce a good opportunities along with
better results. The interrelation within other organizations are described as -
Human Resource Management - The basic function of human resource management
department is to provide staffing in the organization and that is the same work it needs to
perform with collaboration of marketing department. The marketing department communicates
with the HR manager that they need people to promote sales that can handle the campaign and
then human resource management will broadcasts the new for recruitment of sales force and then
they will select the best people according to their qualification and performance in interview
process. For an instance, ALDI needs a highly skilled person for the marketing that can promote
its products and then the HR manager will select the best suitable candidate that can enhance the
appearance of company among customers.
Research and development – The marketing team closely connected to the research and
development department because this department is used to identify the market in order to
recognize the needs of the people for what they are looking to the market. The data which is
gathered by the R&D department is provide a view of customer expectations and which product
is required in the specific region so that marketing team can promote the product in that specific
regions. The research and development provides an understanding of people in a geographical
region that affects products and services. For an illustration, ALDI needs to put research so that
it can analyse what kind of product will increase the sales and also satisfied the needs of
customers as well (Perreault, 2010).
Manufacturing process – Manufacturing establishes a contact with marketing
department because it tells about the time when the manufacturing should be start for a products
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according to the demand of market. Because there if the products are already exists in a market
for a long time and they are not getting purchased by the people then that means people does not
require that products. Hence, there is no need to manufacture such products and it will block the
money only which can utilized in some other activities (Jones and Rowley, 2011).
Information and communication technology - Information and communication
technology or ICT has a very important place in every business where communication
technology was limited to calls only but now it also used promote a business. As ALDI is utilizes
its information and technology in sailing its products online through its websites and offline too.
ALDI is giant in discount supermarkets and it uses digitalization in promoting its sales through
newsletter, and e mail services to inform its customer about its discount schemes on every
weekend.
Administration – Administration is the top level in any organization it has the decision
making power which can be beneficial for a firm. Marketing team develops various kind of
strategies and that needs to be approved by the administration body which is governing the
organization. As ALDI marketing team introduces a new marketing plan that needs a budget to
expand on it and that needs to be sanctioned by the the top level of organization otherwise the
team cannot withdraw a finance from the organization's account. The CEO of ALDI has
authorization to take any decision on the behalf of business entity and if they are not satisfied
with the plan then they can refuse the plan.
Customer service – There is a a customer service department is established in most of
the organization they aid to give the solution of customer issues. In ALDI marketing department
interact with the customer service section because they need to know about the customer
feedback either they can be good or bad. These feedbacks are important to know because if the
customer are not satisfied with the product then they can improve the products. People can call to
the customer service when they are getting problem while using a product to get the solution and
this data will be fetched by the marketing team to develop new strategies for the product
solutions.
Finance – Finance is essential at every phase of a business cause if funds are not
available to the firm then there is no success in business even the business can go in pitfalls.
Funds are important to drive transactions to the business as money has a value that needed to
appeal the targeted people. ALDI needs to throw funds at each stage of marketing if the the CEO
approves the plan then financial department will be available to provide the funds to the
marketing team so that they can accomplish all its tasks (Papasolomou and Melanthiou, 2012).
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TASK 2
P3 Compare the ways in which marketing mix will be applied to marketing planning and how it
is different from other organisations.
Marketing is a concept that makes a business prosperous because profit depends
upon a suitable and appropriate marketing strategies and process. One of that techniques is
marketing mix that furnishes a business at right place on right time so that customer can access a
supermarket facilities easily in order to increase the sales of a business (Mihart, 2012). The
marketing mix has 7Ps that requires to expose a business very well among the targeted
customers. Marketing mix is applied in every organization to attain the business objectives and
below is the difference between marketing mix between ALDI and LIDL and that are mentioned
below-
Marketing mix ALDI LIDL
Product ALDI has its own specialised
brands which generates a
positive market for it. It keeps
its store layouts quite simple to
so that it can more focus on its
products to maintain a strong
customer existence. It offers a
high quality products (Desai,
2013).
LIDL comprises with solid
brand name from being one
cheapest supermarket retailer
in the industry and its main
competitor is ALDI. It also
offers such similar kind of
products that can vary in
quality and that why customer
may have negative perception
about the quality of products.
price ALDI offers affordable price
then its competitors. It is the
first grocery retail which
introduces the national pricing
policies with a faith to crossing
the boundaries. It has unit
It has a key competitive
advantage that is its clever
pricing strategies. LIDL
entered in the on the basis of
being value driven
supermarkets in the industry.
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pricing strategies that allows a
customer to compare the prices
with similar products. It also
has price penetration,
competition pricing and
psychology pricing (Nguyen
and Simkin, 2012).
The payments are made on
check outs and as the prices
are low so the customers think
that the quality they are
offering is not good.
Promotion The organization uses various
promotional activities like
advertisements through
televisions, newspapers,
customized magazines and
social media. Even it also tells
the availability of the product
in nearest stores. It also
promotes its products through
social media and adverts. It
has a promotional campaign
which includes all its popular
products that covers by 'Like
brands' and that are also
specialised products.
LIDL does not has any
promotional schemes as they
believe that there pricing can
drive the consumers but it has
in store promotions without
any discounts as it already
exists (Lane, 2016).
Place Place is the accommodation
where public can be reach
easily to purchase the desired
products and that's why ALDI
keeps its layout simple with a
thought to supply the products
to the customer at effective
cost. It has an obligation to
minimize the waste in
transportation of goods from
the suppliers to the store.
LIDL has a plethora of stores
across the United Kingdom
and Europe. However it
depends on the country so they
operates on different
segmentation of the
supermarket industry that
ranges from value to high end
goods. As their business model
is to sell possible number of
goods in a short time and they
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ensures the stock level which
is very good for its business.
People ALDI has a few products and
that reduce the need of extra
staff that can guide the
customers. It can cut any costs
that can sustain its product's
price cheaper. It is needed to
provide training to the staff
that can offer friendly
assistance to the customers
cause training that gives them
skills. It provides skill
development training so that
they would be able to work
more efficiently and
effectively.
In LIDL emplolyees get an
attractive figure of salary
against their hard work. They
are highly trained to scan the
items of customer and meet the
expectations of users. So that
they does not feel that staff is
not paying them attention
when need the assistance
(Swenson, Rhoads and
Whitlark, 2014).
Process Processes makes a customer's
expectation efficient as they
always wanted to purchase
matching quality products and
efficient checkout practices.
They are wanted to see how
ALDI keep its promise in
order to minimize the wastage.
Primary process of LIDL is tp
purchase and sells as many as
goods as it is possible on a low
cost basis. Consumer are not
involved in any business
process and procedures so they
have little power over their
business operations.
Physical evidence ALDI has its stores across
twenty countries with an
eminent place where people
can easily access its store. It is
running its business Australia,
Austria, Belgium, China,
Denmark, France, Germany,
Hungary, Ireland, Italy,
LIDL stores are laid in a very
linear and traditional manner
so consumer can find their
goods easily access them
purchase and leave the place.
The organization generally
keep it brand stores colour in
yellow, blue and throughout
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Luxembourg (Hsu, 2011). the stores so that customer can
find that LIDL is nearby.
Above is the differentiation of marketing mix that is followed by every organization but
they have different ways to utilize it (Kennedy and Parsons, 2014).
TASK 3
P4 Marketing plan
Marketing plan has a significance for any organization cause it covers all factors which
are playing an important role for the organization's victory. Marketing plan is picture which
suggests how an objective or goal would be reach out through following the directions specified
in the plan. It used to develop the strategies and other activities which has an equal part in
success of the products and services (Dibb and Simkin, 2013). Therefore, ALDI marketing plan
is going be documented that underpins all the factors, such as -
Executives summary – ALDI would set a new plan for marketing that enables to
diminish or reduce problems that affects or may affects the future growth of the organizations. It
comprises all of its past performance which is needed to guide its future achievement in order to
implement strategies which can give a better growth to ALDI.
Company overview – ALDI is a giant supermarkets chain across Netherlands, Poland,
Portugal, Slovenia, Spain, Switzerland, United Kingdom, United States. It deals in food,
beverages, sanitary and household goods. Its headquarter is situated at Essen, Germany (Aldi
Nord) Mülheim, Germany (Aldi Süd).
Objectives - A business has an objectives and that is the main motive of the
organization, every business begins with a core practice that is to maintain its market value,
implement better plan to address customers, focus on individual customers, maintain the brand
value and increase the profit and wealth.
Mission – Its mission is to offer quality products with affordable prices to the customers
that is bare able by any living standard.
Vision – ALDI came in inception with a vision that furnishes its stores around the globe
through providing qualitative goods that satisfies the needs of the customers. The vision is
futuristic that is accomplishing almost every year with a presence among several diverse
countries (Wirtz, 2012).
STP
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Segmentation - There are various marketing segmentation strategies that are needed to
be implement effective marketing in a systematic manner. Segmentation is performed in respect
with geographic region, demographic and behavioural. These segmentations gives a clear picture
to target customer and promotional events from where a business can generate sales.
Targeting – Targeting refers to the segment of particular region where the targeted
population stays and for whom the products are developed. These products are specifically
developed for these particular area and culture of the people (Pike, 2015).
Positioning – After segmentation and targeting the next step is to make various efforts in
relations to approach the target customer for marketing of the products and services. Positioning
used to promote its specialised products that are offered by ALDI.
Current marketing situational analysis – Situational analysis refers to internal and
external situations of a company that impacts on its operations. Because a business environment
is dynamics in nature that can altered according to the situation and that's why is has positive and
negative affects. Micro environment includes strength, weaknesses, opportunities and threats of a
business because it effects ALDI internally so below the SWOT is described as -
Strength
ALDI provides private label brands so it does
not has any rival who can challenge its quality
of products.
It promises to replace products and refund the
to the customer's money (Lamb, Hair and
McDaniel, 2011).
Weaknesses
ALDI faces positioning problems and because
it offers cheap and low quality products.
Interior ambience of its stores is not appealing
to the people.
It also does not have a huge number of staff to
offer services to the people.
Opportunities
ALDI should move to into emerging
economies like India and Brazil where the
population is massive and people can easily
afford its products.
It is also planning to expand in the United
States where it surely gain higher returns.
Threats
ALDI is facing a stiff competition among big
rivals that are Carrefour, Walmart, Tesco, and
Lidl in global market.
There are certain changes are facing in global
economy like in the USA growing trend of
isolationism, Brexit in EU giving its jerks in
the business.
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External situational analysis – Macro or external situational analysis refers to the
factors which impact on a business from outside. These includes political, environment, social,
technological, economical and legal aspects.
Budget information – As finance is essential for the business it is a spinal for business
and that is required to survive in the market. Funds are needed to implement the operations. The
budget plan as follows -
Particulars 1st year
Capital 8000
Investments 22000
Total 30000
Marketing expenses
Promotion 3500
Sales 4500
Marketing 1800
Internet Marketing 5000
Networking 1500
Printing 5000
Advertising 1000
Total 22300
CONCLUSION
Marketing is essential for every organization top promote its sales and gain the
competitive advantage. It drives the sales through offering the exposer to a firm among customer.
It aware the customer through promotional activities. The above report is about ALDI which is
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