Marketing Essentials Report: Roles, Marketing Mix, and Plan for ALDI

Verified

Added on  2020/07/22

|14
|3987
|43
Report
AI Summary
This report delves into the core principles of marketing, emphasizing the crucial roles and responsibilities within a marketing function, and how these interrelate with an organization's broader context. The report uses ALDI, a British multinational grocery company, as a case study to exemplify these concepts. It analyzes the marketing mix of ALDI and a competitor, LIDL, examining the elements of product, price, place, promotion, process, people, and physical evidence. Furthermore, the report culminates in the development and evaluation of a basic marketing plan specifically tailored for ALDI, providing a practical application of the theoretical concepts discussed. The report also examines the relationship between marketing and other departments such as human resources, research and development, production and operations, finance, and customer service. The report also explores the interrelationship of marketing roles and responsibilities to organizational context.
Document Page
Marketing Essentials
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Contents
Marketing Essentials.................................................................................................................................1
INTRODUCTION...........................................................................................................................................2
TASK 1..........................................................................................................................................................3
P1 Important roles and responsibilities of marketing function...............................................................3
TASK 2..........................................................................................................................................................4
P2 Interrelationship of marketing roles and responsibilities to organisational context..........................4
TASK 3..........................................................................................................................................................6
P3 Marketing mix of two firms................................................................................................................6
TASK 4..........................................................................................................................................................9
P4 Marketing plan for ALDI......................................................................................................................9
CONCLUSION.............................................................................................................................................11
REFERENCES..............................................................................................................................................12
Document Page
INTRODUCTION
In today’s competitive business environment, marketing is a very essential tool. It
includes various activities like analyze marketplace, understand customer needs, create strong
relationship with customers, development of strategy, provide high quality products to
customers. Basic functions include in marketing are product planning, sales, customer service,
marketing research, finance, promotion and others (Al-Ekam and et. al., 2012). Functions of
marketing highly contributes in growth and success of an organization. In the present
assignment, chosen firm is ALDI which is a British multinational grocery company established
by Mondelez International in year 2010. There are various products offered by company to its
customers all over the world. The assignment cover significant role and responsibility of
marketing function and how they relate to organization. It also include the ways in which a firm
apply its marketing mix to planning process in order to attain business objectives. At last, a basic
marketing plan is developed and evaluated for the firm.
TASK 1
P1 Important roles and responsibilities of marketing function
Marketing is a vital function of every business organization that administers an
opportunity to company to communicate with target audience and build strong relationship with
them. Various roles and responsibilities are involved in this function that assist in growth and
sustainability of firm. Several functions are performed in a firm includes human resource
management, product development, distribution system, strategy management, sales support
system and marketing research. All these functions are interrelated with Marketing function. All
these promote growth and sustainability of company. Various roles and responsibilities of
marketing function includes pricing, selling, product, promotion, distribution, financing &
Marketing Information System. Roles and responsibilities of ALDI Marketing System are
defined below:
Marketing Information System: It is the process in which data and information is
collected and analyzed. This assist firm in understanding needs and demands of
customers in more better manner. This method helps in knowing likes and dislikes of
customers and assists in offering them the products they want ( Functions of marketing,
2018). For instance: ALDI collect data about consumer preferences. By this, they
analyzed that consumers most preferred to buy goods and services. Apart from this, it
also provide information about what kind of marketing should be like by customers,
which kind of product they want and at what place. All the information regarding
customer has gathered and analyzed properly. Based on this analysis, firm made effort to
find out that which particular product has best opportunities in marketplace.
Marketing planning: Marketing plan is generally formulated by marketing managers in
order to attain business objectives along with marketing objectives. It clearly depicts
about what firm exactly want and in what percentage. For instance, ALDI wants to
enhance their market share by 40%. For attaining this objective, it is required by manager
Document Page
to formulate appropriate market Plan accordingly. It also defines about the roles of work
force in attending these objectives.
Financing: It is an essential function of every organization as it’s growth and success rely
on this function. It is the factor which is very necessary for running operations of firm in
successful manner. Marketing manager has the responsibility to determine all the sources
by which firm can acquire appropriate funding (Dibb and Simkin, 2013). The function of
marketing deals with finding out the source of money for business by Investments, loans
or utilizing personal capital to market their products and services among customers.
Loans, shares and investments are the ways through which ALDI managing its funding.
Pricing: It is a big challenge in front of organization to set right price of a product. If
prices are high, there are a lot of chances for firm to lose its customers. But, if prices are
low, there are chances for form to robbing themselves with high profitability. So, it is
essential for every organization to set right price of a product that creates some value for
customers. ALDI have its unique pricing strategy that provides them competitive edge in
market overtake competitors. They sell their product lower prices as compared to other
retail stores.
Promotional channel: It is the way through which a firm communicate about its products
and services to customers. By using various promotional tools, firm convey value and
benefits of their goods to customers and encourage them to purchase their product.
Personal selling, advertisement, publicity and sales promotion are included in it. Each
decision of marketing manager regarding promotion of product influence over all sells of
the company. For instance, Coupons are used by ALDI for doing promotion.
Selling: Both, marketing and selling are the complementary functions as marketing create
awareness among customers and developed a preference for product. It assist sales
representative in selling more products (Campbell and Martin, 2015). Sales team are
getting support by marketing function in generating higher sales. ALDI purchase goods
in large quantity or in bulk from manufacturers and sold directly to end customers.
Distribution: Under this function, firm plans to distribute or supply their products to
customers. It is required by owners to have an idea about distribution channels so that
their product can be distributed all across the world. The refereed firm distributes their
products via their outlets or stores. Apart from this, their products are also sold by online
application.
Product/ service management: The function of marketing provides valuable output to
product development. Information regarding needs and preferences of customers assist
firm to determine the additional features required to be introduced in existing product or a
new one. It also helps in determining opportunities related with extending product range
an introduction of existing product into a new marketplace.
TASK 2
P2 Interrelationship of marketing roles and responsibilities to
organizational context
Marketing is an essential tool that helps organizations in satisfying needs and demands of
customers in an effective and efficient manner. It generally deals in marketing, advertisement,
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
selling and distribution of goods. For accomplishment of business objectives or targets in cost
effective manner and on time, marketing function helps various department of firms such as
human resource, production, research and development, finance etc. Below define points depicts
about the interrelationship of marketing roles and responsibilities with other functions of
organization:
Human Resource Department: For attaining higher sales, it is required by Business to
attract profitable buyers. For this, firm need to have a skilled and knowledgeable
manpower who have the ability to generate maximum sales. So, the major responsibility
of human resource manager is to higher competent and skilled personnel within firm. In
this, marketing function assist in finding out pool of talented candidates. As the market
change, Expectations of employees also change (Draelos, 2010). To stay competitive in
market, it is necessary for firm to satisfy need of their workforce so that there motivation
level can be increased and they are encouraged to work in more effective manner. It is
also required by an organization to provide healthy and safe work environment to
workers so that they feel happy and work willingly towards attainment of goals and
objectives of company. ALDI managers mainly focus on hiring skilled and
knowledgeable workforce so that goals and objectives of firm is accomplished in an
effective manner.
Research and Development Department: This function play crucial role in development
of new products and services. Managers of this department conduct market research in
order to analyze current market trends as well as needs and preferences of customers. It
assist in developing such products that completely satisfy the demands of customer. As
choices of customers are frequently change, this department collect information and
provide it to production department. It is important for organizations to keep update about
the changes that takes place in market. By market research, ALDI observe that,
consumers are shift towards substitute products as they get it in low prices. So, company
came up with unique pricing strategy that helps in attracting more customer towards the
brand.
Production and operation department: This department highly contributes in increasing
profitability as well as productivity of firm in cost effective manner (Eslinger, 2014). Marketing
function provides all the information regarding needs and preferences of customers that assist
operations department in developing product according to that (Hsu, 2011). Operations manager
has the responsibility to maintain minimum level of stock. This department ensures optimum
utilization of resources without compromising in quality. It assist firm in offering high quality
products to customers and satisfy their needs. Marketing function helps in identifying future
demands for a specific product so that appropriate amount of goods are purchased by suppliers
and store in warehouses. This assist in meeting demands of customers effectively. By the
assistance of marketing function, ALDI can easily anticipate demand of product so that these can
be buy in bulk quantity.
Finance department: It is a lifeblood of organization which is necessary for the survival
of company. It is necessary for every firm to have adequate amount of funds so that day
Document Page
to day operations can be run smoothly. Finance manager prepare market budget that
assist in conducting marketing activities in proper manner. If an organization have sound
financial position, they get funds easily from market by various sources whenever
required. This helps in developing strong Goodwill of an enterprise in market.
Customer Service Department: Customers are the essential components that early contributes in
that highly contributes in growth and sustainability of firm. So, it becomes Prime need of a
company to satisfy demands of their consumers (Lancaster and Massingham, 2010). Sheer layout
of ALDI makes it easy for target audience to find needed product as soon as possible. Feedbacks
and suggestions of customers are taken by firm on regular basis which assist in enhancing their
products and services unsatisfying needs of customers in more effective way.
TASK 3
P3 Marketing mix of two firms
Marketing mix is defined as a set of tactics that firm used for promoting its products in
market place. It is made up of 7 P’s which includes product, price, promotion, place, process,
people and physical evidence. The description of 7 P’s of ALDI and LIDL are defined below:
7 P’S ALDI LIDL
Product In comparison to other retail brand,
ALDI claims to provide affordable and
high quality food products in less rates.
They buy product directly from the
manufacturers and sold it by their own
brand name in order to have control
over cost and production. The company
also offers fruits, vegetables, stationery
household products, clothes and beauty
products. They does not made any
alterations in their food product but do
experimentation in non food items
(Marketing Mix, 2014).
LIDL sold almost similar goods then
other supermarkets. Brand name of a
specific product would be the major
difference among it. They sold their
goods in cheaper rates and the main
competitor of ALDI is LIDL.
Price Because of cheaper price and high
quality products offered in market, firm
is having strong consumer base. Unique
pricing strategy is used by company in
current for selling their groceries so that
they compare prices easily of their
products to competitors. It also assist the
firm in getting high competitive edge
Because of clever pricing strategy of
LIDL, firm is gaining high
competitive advantage in market.
They entered into market as value
driven supermarket. Incredibly cheap
pricing of products are offered by
company which gain attention of large
group of customers.
Document Page
over competitors.
Place The company is operating currently in
more than 18 countries and have about
its 8000 stores in all over the world.
According to the reports, every week a
new store of ALDI is open in Britain.
Their stores are simple and easily
accessible to customers so it becomes
easy for customers to select product they
want in short period of time (Malhotra,
Birks and Wills, 2013). The company
procure its product in bulk quantity from
suppliers and store them and
warehouses. It also ensures that quality
of product is remains similar all the
time. They also ensure to use eco
friendly equipment and waste disposal
in its stores. Along with this, the firm
has its online existence that allow
buyers to locate nearly available stores
and check product details.
The company has its many outlets in
Europe and United Kingdom. Their
supermarket are operated in different
countries and products of segmented
from high to low value. Their
distribution centers are large in
number and spread across all over the
Europe and United Kingdom where
they maintain appropriate level of
inventory. Their main business
objectives is to sell large quantity of
products in short period of time and
for this, it is very important to have
adequate stock level. It shows that
their stores are close to their
distribution centers.
Promotion They have comprehensive promotional
activities as they spend less amount of
fund in marketing of products. In
Germany store of ALDI, they did not
have any Marketing department. They
give’ super buy’ offers and is available
till stock lasts. However, in US,
Australia and UK market, they make hi
use of print, electronic and digital media
The company is not having any
loyalty or promotional program in
United Kingdom market as they
believe that their strategy of low
pricing is enough for attracting large
group of customers. So, they do not
spend any amount in promotion of
product. But, they do some store
promotions like buy one get one offer
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
in order to advertise its products
(Martin, Campbell and Harmen, 2014).
and some amount of discount on
specific product prices.
People Customer services of the company is
low as they do not have much
employees to sell their product. They
put their store layout very thoughtful e
in which all the sections are divided
properly which ultimately lower down
the requirement of employees in
handling it section. In comparison to
other companies, they pay high salary to
their employee and also provide them
training so that they are able to work in
more effective manner.
LIDL pay attractive salary to their
manpower but they select only
talented and knowledgeable
employees. Scanning of items used as
performance measurement indicator.
They keep high standards of training
for work force which inspire them to
perform their work in more effective
manner (Moons and et. al. , 2010).
Process By its layout process, it becomes easier
for customers to find out the goods on
their own which leads to decline in
number of employees in indirect way.
They keep high quality product but in
less number so that consumers are not
getting confused and assist them in
reducing their selection time. In addition
to this, products of company have large
barcodes that assist in quick
identification which saves both time as
well as energy of customers and
employee (Perreault, 2010).
Primary process of company is to buy
goods in bulk quantity directly from
the manufacturers in too lower cost.
Customers and not involve in their
work process.
Physical
evidence
Due to standardization, Global pricing
and simple business processes, they gain
The stores of LIDL are traditional
manner. It assist customer in finding
Document Page
high popularity. The administer
products in around 30% cheaper cost
and implement the strategy of everyday
low price. They maintain same prices
for their products throughout the year.
out product easily and quickly. Exhibit
Yellow laid out in linear and and Blue
brand colour throughout the
surrounding of Store which makes
easier for customers to determine the
nearest Store.
TASK 4
P4 Marketing plan for ALDI
Marketing plan refers to a blueprint that outlines all significant Advertising and
Marketing activities of an enterprise for upcoming year. It starts with determining target
customers which is done by market research (Wieser, 2012). This plan includes overview of
business, budget formulation, segmentation, targeting and positioning approach, sales forecast,
monitoring and control.
Company overview
ALDI is a well-known firm and the common brand of discounted Supermarket chain. The
company performance operations in more than 20 countries with around 10000 stores. Its
headquarters are located in Germany and was established in 1913. They start with food store and
now deals in wide range of products which they offer to customers in discounted rates. The
quality of product is also maintained as well. In year 1956, company started to gain Hai
popularity in market by selling good quality product in discounted rates then competitors.
Parent Company ALDI Einkauf GmbH & Co. oHG
Category Retail Industry
Sector Retail & Lifestyle
Tagline Spend less, live a lot
USP Sells goods at affordable prices
keeping top quality products.
Company’s Vision and Mission Statement:
Document Page
Vision: “To deliver our buyers with the goods that they buying regularly and ensure high
standards quality of those goods”.
"Top quality at incredibly low prices- guaranteed".
ALDI has got 5 main ideologies, to be precise:
1) Huge savings
2) excellent Quality
3) Outstanding value
4) Superb special buys
5) Buy with confidence.
Mission: “To meet customer necessity by offering them high quality product in discounted
price”.
STP Approach:
Segmentation People who are looking out to buying grocery products in
competitive prices.
Targeting Household
Positioning ALDI provides most of the goods with its own private labels.
business is strongly placed in country Germany and now targeting
to widespread its scope by determinedly placing themselves in
international marketplace (Baker and Magnini, 2016).
SWOT Analysis:
Strength
Offers at discounted rate
Strong market presence in Germany
with around 2900 store outlets.
Gained popularity due to its unique
store layout.
Claims to deliver high quality product
Operating cost is low
Weakness
Still relatively small in comparison to
other international brand.
Sometimes buyer think that company
is selling poor quality goods at
discounted rate.
Their global influence is still less due
to their already existing players in
market.
Opportunities
Require to invest more money in
advertising & promotional activities.
Expanding operations of business in
Threats
Strong competition
Not appropriate for those who are
watching for “complete shopping
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
growing countries such as Asia and
Africa etc.
experience”.
Its private label brand stirred away by
already recognized big brands.
Monitoring and control: In this, it is essential for manager to ensure that all the activities are
carried out in appropriate manner. If any deviations found, corrective actions are taken by them
so that objectives can be attained on time (Lan, 2014).
CONCLUSION
As per the above mentioned report, it has been concluded that marketing is an essential
function that is very necessary in growth and sustainability of firm. It assist in communicating
brand value to customers. Effective marketing plans assist in attaining targets of firm. It provides
guidance to managers in their future course of actions. There are various functions of marketing
such as selling, distribution, promotion, pricing, etc. and all these functions are interrelated with
other functions of firm like human resource, production and operation, research & development,
finance etc. marketing plan assists in conducting activities in systematic manner and implement
strategy properly.
Document Page
chevron_up_icon
1 out of 14
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]