Marketing Report: Aldi Market Analysis and Strategies

This marketing report provides a detailed analysis of Aldi's marketing strategies. It begins with an introduction to the marketing process, covering elements like situation analysis, marketing strategy, marketing mix decisions, and implementation. The report then evaluates the benefits and costs of a marketing orientation for Aldi. It further explores macro and micro environmental factors influencing marketing decisions, proposes segmentation criteria, and examines targeting strategies. The report also delves into buyer behavior, product positioning, and product development to sustain competitive advantage, including distribution, pricing, and promotional activities. Furthermore, it examines the marketing mix for different segments and contrasts marketing to consumers versus businesses, as well as international versus domestic marketing. The report concludes with a comprehensive overview of Aldi's marketing practices and provides insights into its strategies for success in the competitive market.

MARKETING
PR

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 The various elements of marketing process..........................................................................3
1.2 Evaluating the benefits and costs of a marketing orientation of the organisation................4
TASK 2............................................................................................................................................4
2.1 Macro and micro environmental factors influencing marketing decision............................4
2.2 Proposing the segmentation criteria to be used for products in different markets................5
2.3 Choosing the targeting strategies for the product and services.............................................5
2.4 Demonstrating buyer behaviour affecting marketing activities in different buying
situations.....................................................................................................................................6
2.5 New positioning for the selected product and service..........................................................7
TASK 3............................................................................................................................................7
3.1 Development of the product to sustain competitive advantage............................................7
3.2 Arrangement of the distribution to provide customer convenience......................................8
3.3 Set of prices to reflect an organisation's objectives and market condition...........................8
3.4 Illustrating promotional activity integration to achieve marketing objectives......................9
3.5 Analysing the additional elements of the extended marketing mix......................................9
TASK 4..........................................................................................................................................10
4.1 Planned marketing mixes for two different segments in consumer markets......................10
4.2 Differences in marketing products and services to the business rather than consumer......10
4.3 How and Why international marketing differs from domestic marketing..........................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The marketing is the set of activities of activities which helps the organisation to promote
the products among the large number of the audience in the target market . The marketing is
done in the process which helps the organisation to achieve the marketing objective of the
organisation. The marketing creates the awareness among the individuals about the availability
of the products. In the following assignment we will study the elements of the marketing mix
used by the organisation and also the market segmentation of the Aldi organisation. The Aldi
organisation is the store which operates in 18 countries and provides variety of the product to the
customers(Abdullah and Ismail Ahmad, 2010).
TASK 1
1.1 The various elements of marketing process.
The marketing is significant and common function for the businesses. The marketing
helps the business to survive in the competitive market. As the Aldi is the super market it is
necessary for the organisation to understand the process of marketing. The good selected
marketing process will help the business in the growth and creating the brand image. The process
of marketing for the Aldi is as follows:-
Situation analysis:- The analysis of the situation where the business is working is referred as the
situation analysis of the business. The situation analysis process helps the organisation to get the
knowledge of the environment where the business is functioning. The analysis helps the business
to get the knowledge of the gap between the consumer needs and the things which are currently
delivered. The Aldi can analysis the situation by the tools such as PESTEL and Swot analysis.
Marketing strategy:- After analysing the situation where the Aldi operates the next step in the
process is to identify the organisation has to develop the marketing strategy to grab the
opportunities.
Marketing Mix Decisions:- The marketing mix is the key factor to the process of the marketing.
The marketing mix includes the product, price, place and promotion. The Aldi can develop the
product, which will help the organisation in increasing the user(Jobber and Ellis-Chadwick,
2012). The price of the product and promotion strategy must be build by the Aldi.

Implementation and control:- The implementation and control is the final step for the Aldi in the
marketing process. The Aldi has to implement the strategies framed and should monitor the
progress of the implemented strategy(Sheth and Sisodia, 2015).
1.2 Evaluating the benefits and costs of a marketing orientation of the organisation.
Benefits:- The marketing orientation helps the Aldi to analyse the wants and needs of the
consumer. The determination of the wants and needs of the consumer will help the organisation
to develop the products and and develop the pricing strategy to full fill the requirements of the
customers as per their needs. The orientation of the market will help Aldi to build the relation
with the consumer and will help the organisation to retain the current user and increase the new
customers of the organisation.
Cost:- The orientation of the market leads to the significant cost for the business organisation.
The marketing research has to be done by the human resource by collecting the data. The hiring
of the employees for the market research and collection of data leads to the cost for the
organisation. The marketing orientation benefits the organisation if it is done without exceeding
the cost for the company.
TASK 2
2.1 Macro and micro environmental factors influencing marketing decision.
There are various factor in the macro and micro environment which effects the decisions
and other business functions of the Aldi. The determination of those factors which influences the
functioning of the business will help the Aldi to make good marketing decisions. Some of the
macro and micro factors influencing the functions of Aldi are as follows:-
Macro environment factors:
Technology:- The use of the latest technology within the organisation and in the distribution will
significantly help in the growth of the Aldi. The organisation have to be up to date in relation to
the technology used within the organisation.
Foreign competition:- The Aldi faces a good competition in the market from the international
business which directly influence the marketing decision of the organisation(Frederiksen,
Solomon and Brehony, 2013). The low priced product with the good promotion by competitor
will grab the customers of Aldi. Thus the competition from international organisation directly
influence the marketing decision.

Culture:- The culture must be understand by the organisation where they operates. The
organisation must adopt the marketing decisions as per the culture which will help in the
sustainable growth of the organisation(Armstrong and Kotler, 2014).
Micro environment factors:
Customers:- The customers are the key factors in the survival of the business. The efforts must
be taken by the organisation to develop the marketing strategies as per their consumers in the
market which will grow the business in the market.
Suppliers:- The supplier of the organisation influence the marketing decisions of the Aldi. The
suppliers are the only one who supplies the commodities to the organisation. The organisation
must take the decisions as per the supplier of the organisation.
2.2 Proposing the segmentation criteria to be used for products in different markets.
The splitting of the total market for a product and service is referred as the market
segmentation. The Aldi has wide range of products for the different consumers as per there needs
and wants. The market segmentation can be done by the Aldi in these aspects Geographic
variable, Demographic variable, Psycho-graphic variable and behavioural variable. These aspects
are discussed as follows:-
Geographic variable:-The market segmentation can be done by the Aldi on the basis of the size
of population, geographical area and the atmosphere of the region where the business operates.
Demographic variable:- The demographic variable consist of the race, sex, age, purchasing
power of the individual. The Aldi can segment the market on the basis of the demographic
variable. On these basis Aldi can frame the pricing policy regarding the products.
Psycho-graphic variable:- The psycho-graphic variable includes the interests of the individual,
values and beliefs, social status and lifestyles of the consumers. The segmentation can be done
by the organisation on the basis of the Psycho-graphic variable.
Behavioural variable:- The market segmentation by Aldi can be done by the organisation on
basis of the behaviour of the individuals in the market regarding the purchasing of the products
of the organisation(Baron, Harris and Hilton, 2015).
2.3 Choosing the targeting strategies for the product and services.
Aldi is the organisation which has the wide range of the products for the groups of
individuals and individuals as per there needs and wants. As the organisation has large variety in
the product it can follow the different targeting strategies for different products as per the market.

The Aldi organisation can use different targeting strategies which are included undifferentiated
strategy, concentrated strategy and differentiated strategy. These strategy are as follows:-
Undifferentiated strategy:- The Undifferentiated strategy is to be used by the Aldi organisation
because of the large number of the variety of the products(Henley, Raffin and Caemmerer,
2011). In undifferentiated strategy the Aldi organisation will consider the complete market for its
product with designing the marketing mix.
Concentrated strategy:- In the strategy the Aldi organisation will target on the on the single
market segment by using the single marketing mix elements.
Differentiated strategy:- This is the strategy where the organisation uses two or more segments of
the market by developing good marketing mix for each market segment.
2.4 Demonstrating buyer behaviour affecting marketing activities in different buying situations.
The marketing activities of the business are completely done by considering the
behaviours of the individual customers and group of individuals. The behaviour of the consumer
depends upon the value of the goods and commodities. Some of the buying behaviours of the
customers are as follows:-
Complex buying behaviour:- In the complex buying behaviour the customers spends lots of the
time before purchasing any goods or commodities(Shani and Chalasani, 2013). The complex
buying behaviour of the individual is generally seen at the time of buying higher value products
such as diamonds, cars etc. The buyers takes advise from the experts before buying this high
value products.
Variety seeking behaviour:- The variety seeking customers has less involvement as the
customers gets lots of similar variety of goods and commodities in the market. The Aldi should
give different offers to the customers on the variety of product to seek the attention of the
customers towards the product of the business organisation.
Dissonance buying behaviour:- The customers are highly involved in the products but the Aldi
organisation do not sell the product which creates the dissonance buying behaviour of the
customers(Abdullah and Ismail Ahmad, 2010).
Habitual buying behaviour:- The customer has very less involvement in the marketing
activities of the organisation. The customers tends to buy products directly without any
perceptions.

2.5 New positioning for the selected product and service.
The art and science to fit the product within the segments of broad market with the
importance of the product in the market is referred as the positioning of the product or service.
Product positioning helps to create the loyalty of the business organisation so Aldi has to give the
importance to the product positioning(Kiel, 2014). It is the technique which business uses to
present the product among the market with the great importance. The organisation frames the
product positioning as per the product segmentation. The Aldi organisation creates the product
positioning by creating the messages related to the products and uses the mass media such as
magazines, leaflet , television and radio to deliver the message to the customers. The advice of
the experts and technical experts advice are included in the message. The Aldi use the internet
medium to deliver the message for the products.
TASK 3
3.1 Development of the product to sustain competitive advantage.
In today's competitive market it is necessary for the organisation to develop the products
for sustain the competitive advantage. The product development help the organisation to increase
the customers within the market. The development of the product is the important factor which
should be considered by the Aldi for surviving in the competitive market. The Aldi has to
develop its existing products to deliver the quality product to the customers. The Aldi can
introduce new products among the customers to get the positive attention of the customers
towards buying(Bühler and Nufer, 2015). The development of the product must be done
regularly to sustain in the competitive business world. The product development have certain
steps involved. These steps are as follows:
 Screening of ideas.
 Development and testing of concept.
 Analysing the business.
 Market testing.
 Implementation of the techniques.
 Commercialization.
 Pricing of new product.

Aldi organisation follows the above given step in order to develop the products.
3.2 Arrangement of the distribution to provide customer convenience.
The distribution pattern framed by the organisation must be convenient for the customers
to receive the products(von der Heidt and Quazi, 2013). The distribution management is the
process which helps the organisation to facilitate the movement of the product from the
organisation to the final customers. The effective and efficient process of delivering the products
will help in convenience of the customers to get the product within the time. The Aldi follows
the distribution pattern which is discussed as follows:-
Transportation:- The transportation of the goods of the Aldi will be transported by the
professional drivers to the customers.
Warehousing:- The Aldi have build warehouses to keep the products safe till they meets the
needs of the customers. The ware house will the organisation to supply the product as per the
demand of the products.
Packaging:- The Aldi organisation uses the good packaging materials in order to provide
products in effective manner without hampering of the quality of product. The Aldi provide
products in eco-friendly cardboard boxes.
3.3 Set of prices to reflect an organisation's objectives and market condition.
The organisations follows different pricing strategies which as per the objectives of the
organisation. The different types of the pricing strategies are as follows:-
Penetration pricing:- For penetrating the market the Aldi organisation uses the penetration
pricing strategy. In the penetration pricing strategy organisation keeps the price low than the
competitor for the similar products. The organisation tries to seek the attention of the customers
and tries to motivate the customers to use the product offered by the organisation(Johnson
Ringham and Jurd, 2013).
Price skimming:- The organisation keeps the price high. The prices of the products are as per
the demand and supply of the products.
Premium pricing:- The organisation provides high quality of the goods and commodities with
the higher prices to the customers. The prices of the products are increased as per the premium
products provided by the organisation(Boone and Kurtz, 2013).

Economy pricing:- The Economy pricing strategy is followed by the organisation to provided
the products at the lower prices to the customers. Generally this prices is implemented on the
daily use products.
Aldi follows mix pricing strategy within the organisation because it serves variety of the
products to the customers.
3.4 Illustrating promotional activity integration to achieve marketing objectives.
The marketing efforts to deliver the message among the rational customers about the
advantages and disadvantages of the product is referred as promotion. The promotion is the
element of the marketing where the promotion includes advertising of the products, public
relation, personal selling and sales promotion. Integrating the promotional activities will help to
achieve the marketing objectives of the organisation. For achieving the marketing objectives of
the organisation the Aldi uses following promotional activities(Chaffey, Smith and Smith, 2012).
 Advertising:- Advertising is referred as the paid form of the non personnel presentation
of the products and services done by the identified sponsor. The advertising can be done
by use of different modes such as mass media, social media, television and radio etc.
Television and social media is used by the Aldi organisation to promote its products
among the large number of the audience to seek the attention and achieve the marketing
objectives of the organisation.
3.5 Analysing the additional elements of the extended marketing mix.
The product, price, place and promotion are the main first four elements of the marketing
mix. The marketing mix was later extended with the three new elements i.e. people, process and
physical evidence. The three newly added elements of the marketing mix are discussed as
follows:-
 People:- The element people of the marketing mix states that the management and staff
members of the organisation are the only responsible factor for the organisations
marketing activities. The management and the staff of the organisation are the exposure
to the culture of organisation and to the customers and outsiders with the process of
marketing. The human resource management of the organisation must hire the skilled and
qualified staff for the marketing activity. These will help the organisation to achieve the
marketing objectives through the people of the organisation(Dann, 2014).

 Process:- The element states that the marketing is done with the certain process . The
good process of the marketing of the organisation will help the Aldi to achieve the
marketing objectives. Marketing management should frame the process which will be
effective for the organisation in attaining the objectives.
 Physical evidence:- The infrastructures, facilities and delivery of the products includes
under the physical evidence(Dann, 2010). The products of the Aldi must be delivered in
the quick and effective manner. The store should be neat and tidy to attract customers.
TASK 4
4.1 Planned marketing mixes for two different segments in consumer markets.
As discussed above in the report there are seven elements of the marketing which are
product, price, promotion, place, process, people and physical evidence. The organisation
segments are based on the behaviour of customer, physiological variables, demographic
variables and geographical variables. The Aldi is currently working in the 18 countries. The
products of all the countries have variations in the products due to the climatic changes in the
countries(Gordon and et.al., 2011). The prices of the products offered in the different countries
also have the variations in the prices of the products due to the taxation policy of the countries.
The marketing process and the physical the elements of the market are same in the country of
France and United Kingdom but the price, people and promotion differs in the country France
and UK.
4.2 Differences in marketing products and services to the business rather than consumer.
The all the organisations have different products. The development of the products are
done by the organisation on the basis of basis the demands and needs of the customers. The
products of the Aldi is divided among as per the sectors. The sectors of the Aldi are divide such
as wines, fitness, beauty and groceries products. Whereas the competitors of the Aldi also
provides similar products to the customers. The marketing activities of the organisations are
different which help the organisation to increase the chances of the survival of organisation in
the competitive business market. The better marketing tools than the competitor helps to increase
the brand image of the Aldi which have helped the organisation to expand its business in the
different countries(Drea and Stuenkel, 2010).

4.3 How and Why international marketing differs from domestic marketing.
There are man y differences in the international and domestic marketing. The scope of
the marketing differs in the international and domestic market. The area of the marketing in the
international have wide geographic area with the large number of the audience whereas the
domestic marketing have less area with the limited number of audience(Foxall, 2014). The
profits in the international marketing is more as compared to the domestic market because of the
wide area and large number people. The political condition of international has the impacts
whereas the domestic marketing not have any impact on the marketing.
CONCLUSION
From the above report it is concluded the marketing is the essential requirement for the
organisation in the success and the survival of the organisation. The Aldi is the organisation
which provides variety of the products to the customers in the 18 countries. The Aldi
organisation uses various methods of marketing to differentiate the product among the market
from its customers to develop the brand image and increase the profits of the organisation. The
marketing strategy help the Aldi to achieve the marketing objectives of the organisation.

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