Marketing Report: ALDI's Functional Analysis, Plan, and Mix

This report offers a comprehensive analysis of ALDI's marketing strategies. It begins with an introduction to marketing, followed by an examination of ALDI's marketing functions, detailing key roles and responsibilities within the organization. The report then explores the interlinked nature of marketing roles with other functional areas like production, finance, and human resources. A significant portion is dedicated to a comparative analysis of ALDI's marketing mix (7Ps) against its competitors, such as Sainsbury's, evaluating aspects like product, price, promotion, and place. Finally, the report culminates in the creation of a marketing plan for ALDI, offering strategic recommendations to enhance its market position and achieve its objectives. The report provides insights into ALDI's operational structure, competitive landscape, and marketing approach, making it valuable for students studying marketing and business development.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key roles and responsibilities of marketing function............................................................1
P2 Interlinked marketing roles and responsibilities to others functional areas...........................3
TASK 2............................................................................................................................................5
P3 Comparison of marketing mix..............................................................................................5
TASK 3..........................................................................................................................................10
P4 Make a marketing plan.........................................................................................................10
CONCLUSION..............................................................................................................................11
RECOMMENDATIONS ..............................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing refers to the organisational activities related with selling as well as buying of
goods and services as well. It involves selling, delivering and advertising of goods to their
customers (Babin and Zikmund, 2015). Marketing departments of the companies try to grab
attention of peoples by using packaging design, slogans, celebrity endorsement and so on. ALDI
is a business operating in the retail industry. The major products which are offered by the
company are sanitary articles, food and beverages, household products and many more. This
company is having 10,000 stores in 20 nations along with this ALDI is following a functional
structure within the company. In this assignment it involves the different functions of marketing
departments and its roles and responsibilities interlinked with all the functions of marketing
along with this also prepare a marketing plan of the company. In this, make a comparison of
marketing mix with its competitors.
TASK 1
P1 Key roles and responsibilities of marketing function
ALDI organisation was founded in 1946 and its headquarters are in Essen, Germany.
ALDI is an global organisation and they gave employment to approx 104,400 employees within
the company. This company is having 10,000 stores in 20 nations along with this ALDI is
following a functional structure within the company.
Marketing
It is most essential functions of each and every organisation to communicate or introduce
its goods and services in the market. It is an set of institution as well as proper process for
developing, transmitting, delivering, increasing customer value and developing.
Roles and responsibilities of marketing functions
The term marketing functions relates with roles which help a company in order to
determine and generate successful products for target audiences and then promote them by
differentiating them with similar products or services in order to gain high competitive edge. It
is very important part of the company in order to increase their sales within the market. They
also organise a proper research which help in effective decision making in order to achieve goals
and objectives within a limited period of time (Baker, 2014). Their are various roles and
responsibilities of marketing functions which are given below:
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(Source: Seven Marketing Functions, 2018) Financing: ALDI should have proper funds in order to carry out each and every activity
of business in the ideal manner. If firms is not having enough finance then organisation
could not able to take place within the market for a long run. If they are having effective
funds then they can perform their business operations without any issues. Selling: The selling concept consists to orient business in order to sell as many products
as possible. To generate high profit margins firm uses different aggressive selling tactics,
such as heavy advertising and pushy sales strategies; it influence purchasing power of
customers. ALDI management will develop a plan to raise its selling which will aid in
earning higher level of profits (Functions of marketing, 2017). In this, company can sell
their products directly to their customer and on other hand they can provide their products
by using channel of distribution.
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Illustration 1: Seven Marketing Functions

 Promotion: Promotion refers with communicating to target audiences as they can know
more and more about firm's offerings; it aids to provide information that will assist them
in making a decision to purchase a product or service. ALDI is adopting several
promotion activities in order to increase awareness of its products to the customers.
Promotional tools and techniques which are adopt by the firm are websites, newspapers,
press releases and so on. It is important for ALDI to identify its best source through
which company can provide detailed information of their goods and services in order to
increase its sales. Pricing: It is a process in which company decides at what prices products or services will
be sold to customers. Prices of a product are decided by considering production costs and
certain profits along with taking into account prices set by the rival businesses. Firms
marketing department keep on examine buyers preferences and taste in order to take
proper decisions relating to price (Gummesson, 2011). MIS: In this management information system, it will assist in gathering higher level of
information in order to analyse a market conditions in an proper manner. Hence, ALDI
can able to make appropriate decisions for its products and services. By using MIS, ALDI
will be enable to gain optimal market information and produce products accordingly thus
to obtain firm's goals and objectives. Product: In this function, it manufacture a goods and services in order to satisfy buyers
wants and needs as well. Products must be promoted in an effective manner which will
help in gaining large numbers of profits. Before introducing a products or services ALDI
have to analyse their competitors in order to produce a different goods from its rivals.
 Distribution: ALDI main purpose is to improve its profits as well as achieve the
satisfaction level of buyers. Company are distributing their goods and services to higher
numbers of buyers. In this, company is distributing their goods at various areas in the
marketplace. Retail companies like ALDI uses various distribution channels, i.e.
retailing, manufactures, online selling etc.
P2 Interlinked marketing roles and responsibilities to others functional areas
ALDI is operating their enterprise by pursuing a well defined structure in order to carry
out its daily functions properly (Batt, 2013). Hence, organisation is managing their all the
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functional departments within the internal environment of the company. Here, some of functional
areas are explain by relating with marketing departments are given below: Production: In this, it is very essential function for each company as they have to
produce a goods as per buyers demands and needs. So, marketing department gives
information related to new trends running within market in order to manufacture a
products according to buyers requirements. It will help in grabbing higher numbers of
customers towards the company. Administration: In this, its purpose is to control all the working departments of the firms.
Management of ALDI develop plan, strategies, policies, rules and regulations etc. In this
context, marketing department provide them information towards customers taste and
preferences. This will help in reach larger number of customers. With the assistance of
this company can easily attain set goals and objectives. Research and development: In this, Marketing division of ALDI is conducting a market
research in order to analyse buyers taste and needs which will assist in operating
enterprise activities properly. Manager of marketing will give all the data and information
to research & development for taking a effective decisions and to develop a product
which will be able to fulfil their requirements in an improved manner.
 Finance Department: This function is one of most important part of each and every
organisation. ALDI should have enough finance in order to operate all the activities in an
efficient and effective manner. Finance divisions provides funds to marketing in order to
accomplish their marketing activities in an effective manner.
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(Source: Functional areas of business, 2017) Human resource: In ALDI organisations activities depend upon HR division as they
recruit workers for firm. As they choose the skilled and talented applicants for their
company. The Human resource department is responsible to recruit capable candidates
for marketing domain so that creative and innovative promotional strategies are
formulated. IT: At present, there are various technologies which are used by the company in order to
provide different products and services to their customers. IT play a very important role
within the workplace. In ALDI organisation, IT unit responsibility is to analyse the latest
technology and inform marketing department to adopt them to create its brand perception
among the buyers mind (Desai, 2013). Distribution: In this, it gives goods in various locations by using channel of distribution
within the market. It will help in delivering organisational goods in various locations in
order to operate a business successfully. Marketing identifies market which is to be
served with company's products which are to be fulfilled by distribution. Customer service: This functions are very essential for every organisation to know the
customers reviews in order to resolve them in an appropriate manner. It will help in
satisfying them accordingly. Marketing manager of ALDI take the feedbacks of the
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Illustration 2: Functional areas of business

customers by using questionnaire, online surveys and interviews so that modification in
products and services could be carried out.
All the above departments are interlinked with marketing department of ALDI. They
have to maintain balance among all the functional areas in order to achieve goals and objectives.
It will help in raising sales and profits in upcoming times.
TASK 2
P3 Comparison of marketing mix
Marketing mix is a set of its tools and techniques that organisation uses to pursue its
marketing targets and objectives. (Diana, 2013). It is used for developing products and services
in order to determine its various pricing strategies. This will aid in promoting their services and
products so that buyers get aware of their products which is offered by firms. Marketing mix will
also aid in satisfying customers needs and wants in the market. Their are 7Ps of marketing mix is
compared with ALDI competitors are given below:
(Source: Marketing mix, 2018)
Marketing mix
elements
ALDI Sainsbury's
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Illustration 3: Marketing mix

Product This company claims to provide goods
which are easily affordable by their
buyers at same quality of branded
products (Durand and Barlow, 2012).
ALDI sold the goods which are
sourced from selected supplier. This
company is providing several
products to their customers in an
effective way. ALDI products are
clothes, beauty and health items, food
and beverages, fresh fruits and
vegetables, soft tools, stationary,
electronic products, household items
and many more.
Sainsbury's organisation has a wide
varieties of products for their
customers. In addition to this, firms
mainly focus on quality of products
delivering value added service along
with own labelling products. Along
with this it also observe after
developing a new products and
increase the ranges of existing
products within the market.
Sainsbury's company has its two
formats such as supermarkets stores
and local convenience are giving
approx 30,000 of product line. In
which at-least 20 percent are from
organisation own brands. This firm
is having its basis like as food,
stationary and toiletries which
includes clothing line, bakery goods,
organic goods, furnishing, kitchen
and so on.
Price Organisation should maintain a better
base of buyers by providing them low
cost of goods at same quality is
offered to their customers which are
not given by their competitors. ALDI
organisation is adopting a competitive
as well as market penetration pricing
strategy . Along with this, they can
also use unit pricing strategy of
groceries products so that customers
Sainsbury's company pricing
strategy is based on providing the
customers 'money value'. Therefore,
it maintain quality of their products
and services in order to retain their
buyers. This firm is using the
competitive pricing strategy rather
that using cost cutting policy as it
will raise the market share for the
short time. Organisation can make
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can make comparison easily
(Gummesson, 2011).
best use of discrimination strategy as
per product positioning. Therefore,
firm is adopting a premium pricing
because they have to position
themselves in higher market.
Place ALDI company is having 8,000 stores
in 18 country. Firms supply all
products in bulk to different suppliers
and stores them at local warehouses as
it will help in maintaining products
quality. Company should be ensure
that their must be less wastage is
disposed while transportation of
goods. Along with this ALDI should
adopt eco-friendly equipments within
the working environment. This
organisation is also has its online
presence which help the customers to
analyse the products details.
Sainsbury's company is having its
714 convenience stores as well as
598 supermarkets stores. In this,
approx 45 store are running 24*7
hours as compared with others are
only open till midnight. In addition
to this, it gives the services of home
delivery along with this order can be
placed by using online business
websites through their smartphones
(Forrester, 2010).
Promotion Company promotional functions in
this marketing mix strategy is
comprehensive. In this, organisation
prefer to save the cost as well as invest
less price in promotional functions.
Firms is adopting newsletter which is
known as “ALDI informs” as it is
provided to buyers within the stores.
Along with this company can use
direct mail and newspapers in order to
promote their firm. ALDI organisation
Sainsbury's is making a proper use of
above the line (Mass advertising
approaches i.e. Television, Radio
and print) and below the line
promotional strategies (pamphlets,
handbills and in-store promotions) in
order to grab the attention of
customers and build the image of
brand name. Sainsbury's use the
promotional strategy like as
sponsored a celebrity in order to
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is using various promotion activities
which are 'swap and save' to grab
customers towards their brand as well
as 'Like brands' as it provides low cost
of products in order to gain trust of
their customers (Jones and Rowley,
2011).
promote their products, television,
radio, sales promotion and many
more. Currently they are using
slogan “Live well for less” for all the
promotions campaigns.
Physical
evidence
Stores of Aldi are designed with smart
colour and standard layout that has
eliminated sections for the ease of
customer which makes the stores more
appealing. In this, it has 85% of stock
is of home brands in its stores and rest
are well known brands. It provides
30% low rate products and keep its
cost cheaper each day. With this,
ALDI is the store which maintain
same pricing for groceries goods
within the world.
Sainsbury's contains excellent
product category system and use
determined colour in their store to
give ease to consumer in identifying
the stores. It has several stores and
layouts designs which addressing
varied customers needs. Quality of
baskets and trolleys ensures
excellent shopping experience.
Process ALDI firm is adopting the process of
sheer layout which helps in finding out
of products easily. In this, customers
mainly select the products by
themselves which decrease the
numbers of employees that firms need
to help its customers. In addition to
this, organisation products are having
its large barcodes which find out
quickly and with this have wide large
conveyor belt in order to accomplish
Sainsbury's company is adopting the
process of online shopping for their
customers which is very convenient
services of click & collect. In which
groceries products are rolled out
immediately. Sainsbury's has made
changes of pricing and proper
allocation of raising delivery slots in
order to gain customers loyalty as
well as order numbers. Organisation
are bringing up with new layouts of
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the billing fastly. stores to address the changes of
customers requirements as well as
select the areas for new stores.
People ALDI customers services are not
effective than its competitors. As
employees do not assist buyers in
choosing of products because firms
have their stores format divided in
proper sections which reduce the
numbers of employees needs in every
floor. ALDI make high payment to its
employees as compared to their
competitors and also provide on the
job training to new employees so that
their skill relating to performing task
improves.
Sainsbury's is having a best mix of
well-trained experts and
professionals who are aware of
buyers sensitivity behaviour. Buyers
of this company is provided first
preference which results in excellent
customer service. Hence, they give
training to new employees on job in
order to satisfy needs of customers
and ultimately fulfil corporate
objectives as well. (Mitchell, 2012).
TASK 3
P4 Make a marketing plan
Marketing plan is a activities documentation which are accomplished by company for
getting higher level of market share as well as sustainability for a long time (Ogunmokun and
Tang, 2012). In this, they prepared a marketing plan of ALDI organisation which is given below:
Executive summary: ALDI organisation was founded in 1913 by Theo Albrecht and Karl
Albrecht. Company are operating its enterprise activities within approx 10,000 stores in 20
nations. Firms has transformed themselves from small business to a globally renowned
supermarket chain in an annual turnover of EUR 53 billion. They are providing employment to
1,00,000 employees in 9600 stores which are spread in 18 countries. ALDI is launching a new
clothing line for women known as 'Famina' in which they will provide clothes as per latest trends
running in the marketplace.
Marketing Objectives
 To increase the sales of women wear by 10% by December 2019.
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 To increase the market reach by 5% through opening up a new retail outlet in Manchester
within 3 months.
STP
(Source: STP Process, 2017 ) Segmenting: In this, it is a marketing action plan which are divided all broad target
market in a manageable subsets of buyers, enterprise, countries etc. Through this
perceived same designing, demand, priorities and many more. It is categorised into three
kinds of geographic like as rural, semi urban, behavioural, psycho-graphic etc. The
segmentation in this approach will be carried out on the basis of region and age group of
target segment for the upcoming product line by the name of 'Famina'. Targetting: In this, company target a market of individuals groups with this ALDA
organisation has decided their marketing efforts. Management of firm is targetting
customers in the context of its needs, age, perception, education and many more. The
target market for this upcoming women clothing line will be women ranging in the age
gap of 15-35 years. Positioning: It is to maintain the ALDA brand as well as image by satisfying customers
needs and wants. ALDA firm is positioning their products through online websites.
ALDA will adopt the premium positioning strategy when it comes to placing this
upcoming clothing range in the minds of consumers.
Marketing strategies
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Illustration 4: STP Process

ALDA company is managing a developing action plan which include product
development, market research, advertisements, promotions, campaigning etc. Company is
selecting a best method from all the others alternatives are available as it will help them in
achieving goals and also aid in sustaining in the market. ALDA should also adopt the process of
digitalization in their working environment.
Implementing and control
ALDA organisation is implementing all the strategies as well as plans in the firm by
themselves. After that they have to examine the deviations in implemented control as well as
plans in an proper way. This will assist in attaining companies objectives and goals in the
market.
CONCLUSION
As per above report, it has been concluded that there are various roles and responsibilities
of marketing functions in order to manage all the functional areas effectively. In this, they also
have to interrelate all the functions within the marketing functions. Along with this they had also
make a comparison of marketing mix with their competitors. Also make a marketing plan of an
organisation in which it includes Segmenting, Targeting and Positioning strategies, marketing
objectives, its strategies, implementation and control are planned in an appropriate manner. It
will help in achieving effective targets and objectives in an proper way.
RECOMMENDATIONS
In this, it is recommend that company should adopt the latest digital technology within
their workplace. For instance: opting for E-commerce platform will be helpful to an organsiation
in enhancing sales. Along with this firms should increase the employees within their workplace.
They can also promote their goods by using online websites as it is cost effective it will help in
achieving goals and objectives in an effective manner. It will help in increasing sales and
profitability as well.
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<http://smallbusiness.chron.com/functions-marketing-business-32399.html>.
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