Marketing Essentials: Analysis of ALDI's Marketing Strategies

This report delves into the marketing strategies of ALDI, a discount supermarket operating in the United Kingdom. It begins by outlining the key roles and responsibilities of the marketing function, emphasizing its importance in promoting goods and services, interacting with customers, and influencing purchasing decisions. The report then explores how these roles relate to the broader organizational context, highlighting the interrelationship between the marketing department and other units like finance, research and development, human resources, and production. A significant portion of the report is dedicated to analyzing ALDI's marketing mix, comparing its strategies to those of competitors like Lidl, specifically focusing on product offerings, pricing strategies, and distribution channels. Finally, the report concludes with a basic marketing plan for ALDI, offering insights into how the company can maintain its competitive edge and achieve its marketing objectives. The report provides a detailed overview of the marketing process, including situation analysis, strategy development, marketing mix decisions, and implementation and control.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain the key roles and responsibilities of the marketing function....................................1
P2 Explain how roles and responsibilities of marketing relate to the wider organisational
context.........................................................................................................................................3
TASK 2............................................................................................................................................5
P3 Marketing mix of ALDI.........................................................................................................5
TASK 3............................................................................................................................................8
P4 Produce and evaluate a basic marketing plan for ALDI........................................................8
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing is considered as a process of promoting company’s goods and services with help
of various communication channels. This is the only process which provide an opportunity to
company to interact with its target customers. Main purpose of this is to make customers aware
about special features of company’s product and influence them to buy the same (Mihart, 2012).
ALDI, a discount supermarket based in United Kingdom is taken in this report. Different roles
and responsibilities perform by marketing department of company to achieve marketing goal is
given in this report. Further, interrelationship among various functions performed by different
department of company and application of various components of marketing mix to sustain in
market for long run is also detailed in this.
TASK 1
P1 Explain the key roles and responsibilities of the marketing function
Marketing is a strategy of an organisation to increase sales, maximise profit, satisfy the
need of customers and beat competitors. Market is a place where large number of buyers and
sellers are gathered to buy or sale of goods and services. There are basically five concepts of
marketing: product, production, marketing, selling and societal marketing concept (Baker and
Magnini, 2016)
These concepts helps ALDI to make strategy and implement plan for action. According
to this, company analyse the market condition and then take decisions regarding production of
those goods and services that readily meet customers demands.
In concept of current marketing trends, ALDI focuses on customers value and perform
work with more efficiency and effectiveness. Technologies are used which are more updated
with current inventions. Advertising and selling on social media trend is more popular in recent
years. Online marketing and digital payment option is also available to customers through which
they get product easily. It is helpful to save time and increase sales (Martin, Campbell and
Harmsen, 2014).
Future marketing trends help the organisation to make long term strategic plans and
estimation of future production and sales. In future, market will depend on 4Es approaches,
which are: Experience, Emotion, Engagement and Exclusivity. Customers will ignore brand
name and focus on the quality of product with best possible price. ALDI should also focus to
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maintain one to one relation with their customers because a company will run for a long time
only with customer's support.
Overview of Marketing Process:
Marketing process is a series of some different steps that helps to identify the vision,
mission and objectives of the firm and a path which helps to reach their goals. The steps of
marketing process are: Situation analysis, Marketing strategy, Marketing mix decisions,
Implementation and control.
 In situation analysis, ALDI has to examine the market condition, recent trends in market
and need of consumers.
 After analysing the situation ALDI has to make marketing strategy to attract more
customers and to beat competition.
 In marketing mix decisions ALDI take decision regarding the product development,
distribution channel, promotion techniques and pricing decisions.
 After completing the above steps, ALDI to implement their plan for action and control
those factors which create the barriers in the success of an organisation.
Roles and Responsibilities of Marketing Departments:
Effective use of Marketing Information System:- In this role, departments of different
organisations gather information about customers like what type of people and what are their
needs. ALDI has to observe the market trends and competitor's strategy. Company can use their
sales department for feedback.
Ensuring proper product distribution:- This is a process of deciding that what are ways
or channels of distribution by which customer get the goods and servicing. Sales department
handle the distribution of products (Brooks and Simkin, 2012). Personal selling, online selling,
retail marketing etc. are the different types of distinction channels.
Product modification:- It is the responsibility of production department to identify the
demand of product in market and add features to make product different from other similar
products with some unique qualities. ALDI have to improve and develop their products with
reference to customer needs.
Setting up strategies related to Pricing:- The price of a product should not be more or
less. ALDI has the responsibility to decide price of their foods and beverages as per quality,
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quantity and ingredients that is used to make product. Every customer cannot afford high prices
goods so, company should focus on all people and competitors strategy about pricing.
Ensuring effective product promotion:- This is a technique used by every company to
increase sales and profit. ALDI can promote their product by advertising on radio, television,
newspapers, social media etc. this increases cost of company as well as their sales too. Firm uses
those option which reduce cost and enhance profit (Lipsman and et. al., 2012).
Undertaking Selling:- When firm determine the needs and desire of customers it the
responsibility of ALDI to sale right product which is based on customer's needs. There should be
proper communication between buyers and sellers because it make a strong market relation.
Arranging proper Funds :- Finance department of ALDI has responsibility to manage
finance statement of company and proper record of inflow and outflow of cash. They also
manage cost and utilisation of funds. It also play a role to take money and invest money in those
resources from where firm get maximum return.
P2 Explain how roles and responsibilities of marketing relate to the wider organisational context
Marketing refers to the process of promoting good and services in order to attract attention of
customers and then persuading them to make purchases(Desai, 2013). It is a never ending
process which begins with the inception of product to provide after sale services to its purchasers
in the hope of making profit. ALDI is supermarket present in UK which belongs to retail sector
and marketing plays a crucial role in functioning of this organisation. Following are the points
that describe about the importance that marketing have for ALDI:
 Marketing help ALDI in communicating about the product or services that company offer
to its target market and product categories that they included in their stores.
 Marketing also help in attracting customers toward its stores that in turn increases the
volume of sale.
 This function also help in making customers satisfied by handling their issues that are
faced after purchasing of goods or services.
Marketing function is interrelated with other department of an organisation which help in
performing actions more effectively which provide positive outcome. Following points describe
about the interrelation of marketing department with other unit of organisation:
 Marketing and Finance unit:- This department is responsible for managing the money
so that each activity within an organisation can be performed effectively without any
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shortage of fund. Main function of finance department is to identify of need and provide
them to each unity in timely manner. Functions performed by marketing unit is
interlinked with financial department as they get money for promotional and other
activities from this section (Draelos, 2010). Marketing manager of ALDI coordinate
with financial manager in order to estimate the fund required for its promotional activities
so that tasks can be performed effectively without any delays or shortage of fund.
 Marketing and Research & Development unit:- This department is responsible for
conducting the research in order to identify the market opportunities and requirement of
customers in order to develop the product according to the demand of customers.
Therefore, marketing unit is required to coordinate with R&D manager in order to
formulate promotional strategies that can attract and influence customers more effectively
(Jones and Rowley, 2011). ALDI invest more over research in order to determine the
changing demand of its target market so that firm could produce product as per
customers requirements.
 Marketing unit with HR department: HR department is mainly responsible for hiring
most proficient employees for the company that is present at right job profile at right time
whenever required (Durmaz, 2011). The Marketing department works in close
coordination with HR department to recruit most appropriate employees as per the job
specification and personal requirements of the marketing unit. For instance, it is essential
for an employee belonging to marketing unit have a good interpersonal communication
skills so as to inspire customer or investor to try products of the company or to invest in
its project. Thus, marketing manager along with HR managers work together to hire the
most professional and proficient candidate.
 Marketing with production department: Production unit is mainly concerned with
creating innovative goods and services as per the needs and requirements of the
customers, managing quality and quantity of goods and arranging deliveries of the
finished products (Hsu, 2011). In this task, it is supported by the marketing unit that
provides a detailed information about the market demand, various suppliers options,
latest technology to be used in logistics etc. Thus both these departments work in
coordination work together to attain firm's objectives.
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TASK 2
P3 Marketing mix of ALDI
Definition of marketing mix:
Marketing mix refers that it is a set of plan of action in which an enterprise use to boost
and trade it's products in the market. These plans or tactics range are develop the products and
decide places and prices of products. This is the set of manageable, military science, marketing
instrument that a organisation uses to make a desired outcome from its target segmentation.
Marketing mix involves everything in which an organisation can do to influence supply of its
commodity ( (Mihart, 2012). Marketing mix is designed for achieving the market goals and
satisfy customers need.
BASIS ALDI LIDL
PRODUCT Aldi is an honourable brand
name because it serve quality
products to its consumers. This
company has 1350 products if
customers are unsatisfied with
product then company give
guarantee to replace the
product and refund the money
this company offers the many
type of products like-
vegetables, fruits, seasonal
products, baby products, home
goods, fresh meat, beer, wines
etc.
Lidl is a first-rate market
which is based on discounted
products. This is best for those
customers who are interested
in Ordinary quality products
because it can buy at lower
rate (Papasolomou and
Melanthiou, 2012).This
company offers many types of
products like vegetables, fresh
meat and fish, pet products,
baby products, bakery
products, health related items
and beauty products etc.
PRICE Today's costumers having a
greater taste so marketplace is
very competitive. Aldi identify
the consumer's needs and
preferences and take proper
In order to provide quality
goods at competitive price Lidl
make use of market
penetration and competitive
pricing strategies. This helps
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steps for satisfying the
consumers needs and wants.
This company use competitive
pricing strategy and sell its
products at lower price. This
company adopt bulk system so
customers can purchase quality
products at lower rate
(Perreault, 2010)
organization to set the prices of
its products in accordance to
pricing strategies adopted by
its rivals. .
PLACE Aldi have10,366 outlets in 20
countries like Spain, United
states, Portugal, United
kingdom, China, Netherlands,
Switzerland, Poland,
Luxembourg, Ireland, Italy,
Slovenia, , China, Austria,
Hungary, Denmark, Australia,
France and Germany.
Availability is an essential
factor for easily reach at the
stores. This company also
provide adequate parking area
so that consumers are not meet
with troubles. Its focus on
areas with adequate visibility.
Lidl's international existence in
10,000 locations in which 28
are European countries and in
united states. Its headquarters
is located in Germany and
headquarter of united states is
located in Virginia
(Scarborough and Zimmerer,
2011) This company has
outlets in these countries like
Denmark, Germany, Austria,
Greece, Poland, France,
Germany, Italy, Malta, United
kingdom, Sweden and Spain.
This company is deal directly
with market and eliminated the
mediate system.
PROMOTION Aldi use various tools of
communication with its
consumers for maintain its
impact on international market
Lidl has choose many types of
marketing policy to built and
keep its brand visibility. This
company's ads posted via
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because it is a global brand.
They want to lead its
consumers towards its outlets
for this they take initiative.
This company adopted both
below-the-line and above-the-
line marketing policy for
attract the consumers. This
company built the message of
“quality products at lower
price”. Ads posted via
newspapers, magazines,
billboards etc.
television, newspapers ,
leaflets, hoardings, billboards
etc. This company wants to
update its consumers via send
SMS and digital marketing.
This company launched Ldil
app for consumers and also
give weekly offers to its
consumers (Wieser, 2012)).).
PEOPLE Aldi provides training to its
new employees and pay higher
than its challengers. This
company reduce the number of
employees on every floor by
adopting a simple, systematic
store layout having shelves to
sequentially arrange each
products.. It is also provides
computers on every floor for
scanning top management
Top managers of Lidl develop
their employees by giving
them training and proper
motivation. The company
include different different
departments like financial , It
department, HR department,
sales department etc.
PROCESS Aldi makes layouts in easy
way so customers can find
products easily.
This company follows specific
process like identify customers
needs and make strategy
according to consumers desire
which is satisfy their needs.
PHYSICAL EVIDENCE Aldi is best known for its LIDL use a bright icon of blue
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simple business procedure,
global pricing strategy and
standardization. It every day
low price strategy round the
world marks as strong
evidence for its physical
presence in the market. Due to
these competitive strategies it
is easy be recognized by its
customers.
and yellow colour which help
in grasp the attention of large
number of customers.
TASK 3
P4 Produce and evaluate a basic marketing plan for ALDI
Marketing plan is legal and formal official document which shows guidelines for
performing commercial activities. There are various different activities in business organisation
such as marketing, production, etc. so through this document budget can be estimated. This helps
to forecast sales, also (Griffitts, 2016). In business plan, SWOT analysis, objectives, estimated
budget, monitoring and controlling are included. Marketing plan of ALDI for launching herbal
beauty products are as under-
Overview of ALDI: ALDI is the big brand in retail supermarket chain. This organisation
has around 10000 stores in 20 countries. This organisation was established by two brothers Karl
and Theo Albrecht in 1946. it has headquarter in Essen. ALDI deals in food, beverages,
household items, etc. They operates in Denmark, Australia, China, Spain, Portugal, Poland,
Great Britain, etc.
Mission: Mission of ALDI is to provide lowest quality product at good quality.
Vision: Vision of ALDI is to compete with other organisations in grocery industry
through unique business model.
Objectives: Objectives of ALDI is to launch herbal beauty product in market,. These days
consumers are more conscious about their health, hence managers of ALDI are thinking to
launch herbal product in society. Hence SMART objectives are framed to achieve it.
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 S stands for specific. Launching of herbal health product is specific. This gives an
direction to perform business operations.
 M stands for measurable. As this aim can be measured in terms of increment in profits
and sales ratio of organisation. Sales of ALDI gets improved by 20%.
 A stands for achievable. This targets is achievable. Managers of enterprise is required to
plan business operations as per market trends and demand of consumers.
 R stands for realistic. Target and aim of launching herbal product in market. This is
realistic as there are certain measures which has to be considered by managers of ALDI. T stands for time bound. This product is launched in market within 6 moths. So targets
and strategies are framed within specified time limit.
SWOT Analysis: SWOT is the technique which is used by managers in order to deal with
internal strengths and weakness of ALDI. There are some policies which has to be considered by
managers so they can overcome weakness of association.
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(Source: SWOT Analysis, 2017)
Strengths Weaknesses
 ALDI is the organisation which deals
provides lower cost product in industry
with good quality.
 They have world wide reach and offers
product as per consumer demand.
 They have decentralised structure so
employees remain satisfied because
they have decision making power.
 They have weak customer service
policy.
 They do not adapt technology
frequently, so this affects their working
style.
 ALDI deals in variety of products so
they are not able to get USP in any
stream.
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Illustration 1: SWOT Analysis