Marketing Essentials Report: Analysis of ALDI and TESCO Marketing

This report delves into the core concepts of marketing, examining the roles and responsibilities within the marketing function and their relationship to the broader organizational context. It analyzes the marketing mix of two distinct organizations, ALDI and TESCO, providing a comparative analysis of their strategies. Furthermore, the report culminates in the development of a basic marketing plan for the chosen organization, offering insights into potential business expansion and strategic initiatives. The introduction highlights the significance of marketing in the modern business landscape, emphasizing its role in establishing customer relationships and driving organizational success. The report covers key marketing functions, including marketing research, financing, risk-taking, product development, storage, and marketing information systems. It also explores the interrelationship between the marketing department and other departments, such as human resources, finance, production, research and development, and legal. The comparison of ALDI and TESCO's marketing mix provides a practical application of marketing principles, and the creation of a basic marketing plan demonstrates the application of these principles in a strategic context. The report concludes by summarizing the key findings and emphasizing the importance of effective marketing in achieving business objectives.

Marketing essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Roles and responsibilities of the marketing functions ..........................................................1
P2 How roles and responsibilities of marketing relate to wider organisational context.............4
TASK 2............................................................................................................................................5
P3 Compare the marketing mix of two different organisations..................................................5
TASK 3..........................................................................................................................................10
P4 Produce a basic marketing plan of the chosen organisation ...............................................10
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
In this modern era, marketing plays a significant role in growth and success of every
business organisation. It establishes relationship between customers and organisations by
offering them qualitative products and services. Even the global economy has also realised
importance of marketing and provide them much required support in order to sustain growth.
Along with this, effective marketing strategies gives confidence to companies to try new product
in market and improve the standards of society. Marketing function works with branding,
engagement in publicity activities and customers' interactions by taking feedbacks. Thereby,
marketing assists organisations to accomplish their goals and objectives (Askeland and Wright,
2013). ALDI is the chosen business organisation, it is a common brand of two discount
supermarket chains by having 10000 stores across the world. The estimated turnover of ALDI
Ltd., is more than €50 billion. Apart from this, the report will describe main roles and
responsibilities of marketing and why they are important to attain goals and objectives. Readers
will also come to know about marketing mix of two different business entities and a basic
marketing plan is developed so as to expand business in other areas also.
TASK 1
P1 Roles and responsibilities of the marketing functions
The concept of marketing is a social process through which people can obtain their
desires or requirements by creating and exchanging goods as well as value with others. It is one
and only most important reason behind success and failure of an organisation. Real marketing
focuses on sustainability which can be only attained by satisfying buyers' needs better. A firm's
success is not only evaluated by judicious application of funds to different portfolios of
investment but also it is depend on the relationship which is established with the target audiences
customers, it is known as marketing function (Blacher-Wilson, Mense and Richardson, 2011).
Moreover, marketers are require to identify the market trends or changes and determine how to
respond towards them by making customers' happy. Companies who avoid these changes suffer
from diverse consequences in terms of reduction on revenues and loss numerous customers.
Now these days, fewer organisations are tend towards mass marketing which increases
the standard of selling; in this marketers pay attention to very few but profitable customers
instead of larger groups.
Purpose of marketing: -
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 In this modern area, marketing activities are becoming more customer oriented. Thereby
to sustain in competitive environment companies need to make imperative decisions on
marketing elements, like – product, price, place etc.
 A sound marketing is a pillar of success of large business entities as it assists them to
reach large group of persons in a certain time. It provides a framework in order to
establish a responsibilities between subordinates. It also avoids repetitive duties and
enable top management to devote more time in planning of marketing activities (Clow
and James, 2013).
 Marketing also increases good and open flow of communication strategy and make a
brand to be stand out of the rest. In order to interact with target audiences, ALDI uses
diverse channels, like – internet, social media channels, smart phones which leads most
effective communication. Additional, a product or brand cannot be popular without
communication. Life of span and success are correlate with firm's goodwill which is also linked with
brand equity. Several activities are involved in order to build brand equity of the firm.
Seven major functions of marketing are as follow: -
Marketing research – The most crucial task for marketers to put right product at right
place. Aside from this, it is also essential for them to analyse that whether customers are getting
optimal satisfaction with products and services of the firm. This aspects forces managers to
conduct a marketing research; it will contribute in find out new market opportunities for current
products. It guides to analyse the nature of market competition, market share, sales performance,
channel of distribution etc. Along with this, marketing research also formulate effective
marketing strategies and policies as due to large competition it is difficult to predict customers
needs. In context of ALDI Ltd., market research also aids to test the scope of new products. It
signifies customers' response for developing new products and befitted a marketing mix.
Financing – Effective and successful marketing depends upon flow of revenue which is
to be paid for doing business operations. In marketing, finance also assists by providing
alternative payment methods to customers, like - extended credit terms, loans or leasing. So that
it is require for marketers to have appropriate funds in order to accomplish high competitive
edge. Marketing activities also builds customer loyalty which aids in securing long-term revenue,
when product development programs open new revenue streams (Desai, 2013). It is necessary
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for marketers to meet firm's obligations and for this they have enough cash and liquidity.
Furthermore, a product requires investments, loans and personal capital to finance several
marketing activities, like i.e. promotion and advertising of goods.
Risk taking – It refers to look upon the variables which can affect the sale of goods or
service whereas quality control means determination of whether product is able to stands up
against its rivals. While assessing risk, marketers need to meet standards of product grading
among target audiences. On the other hand, in marketing risk taking is an uncertainty of
consumer purchases which generates from creation of goods that will purchased by customers in
future. Marketing risk are potentials for failures and losses, for example – a valuable brand
carries a constant risk of losing brand value due to higher competition as well as occurrence, i.e.
rebranding; it results diminution in brand awareness (Getnet, Kedir and Yousuf, 2014). Along
with this, there are several risks are involved from production to selling cause of changes in
market environment.
Product designing and development – In this present aura, innovation in products helps
firm to attain and retain customers for long term period. Product designing also helps to make a
product more attractive and innovative by making improvements in existing goods and
introducing a new ones. In order to remain competitive and successful, marketing managers have
to focuses on product design, style, shape and suitability etc. these aspects must be also
considered while taking manufacturing decisions. Along with this, the growth and success of a
product depends upon good inventory management, technological and raw materials. Thus,
before planning promotional activities marketers have to generate those products and services
which are able to satisfy customers' needs and wants.
Storage and warehousing – Proper storage of products and services is essentials so as to protect
them from any kind of damage or losses. Many large scale business entities have their own
warehouses where they keep their products so as to fulfil market demands at the time of
requirements.
Marketing information system – Timely assessing market information is vital for
product enhancement as well as sales growth. Significance of getting market information will
contribute in market expansions, facing intense competition and proliferation (Griffitts, 2016).
Along with this, it also supports business organisations to decide what to sell, when to sell, prices
of products and number of rivals.
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P2 How roles and responsibilities of marketing relate to wider organisational context
In this over dynamic environment, business organisations are required to focused on
focusing on working together so as to attain its goals and objectives in a certain time period. It
also supports companies to make important business decisions for grabbing better market
opportunities. In context of marketing, managers need to collaborate with other departments
because any marketing activity cannot be completed without support of other division, like –
finance, human resources, customer service and research department.
Interrelationship of marketing with wider organisational context: - Human resource department – The marketing department of the company needs to work
with human resource department so as to ensure about the availability of workforce
which is liable for doing all marketing activities and tasks. In order to fulfil workforce
requirements within organisations, HR managers find out well skilled and qualified
employees who have good knowledge of marketing (Jones and Rowley, 2011). For
example- merchandising requires effective communication and interpersonal skills thus,
HR managers provides training and development assistance to staff members as they can
easily influence customers to purchasing. The scope of marketing is wide term, it requires
the adaptability of accepting changes whereas HR managers those employees who can do
the same. Finance department – Finance is lifeblood and backbone of every business organisation;
there is required strong capital in order to perform all tasks and activities in the best
possible manner. In this sense, finance manager of the company formulates a budget so as
to meet the needs of promotion, research and distribution. The person also ensure that
the overall business operates as per the financial capabilities of the company. Marketing
wish to spend more and more amount on advertisements and promotional activities so as
to emerge better opportunities in future. In addition, merchandising division focuses on
raising sales volume and builds market presence whereas finance department tend
towards cash flows, paying back investments and covering all costs as soon as possible.
On the other hand, whenever a new product decisions are made then financial tools and
criteria must be used in order to measure the investment. Production and operations department – Marketing and production department also has
a great relation, as both of them are depend on each other. Production capabilities,
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number and type of products that can be marketed for accomplishing goals and objectives
of the firm by raising sales. Basically production department considered those
uncertainties and fluctuations which occurred in productions and affect the demand of the
products. If products' demand get hampered then there is reduction in sales and
profitability. Along with this, get rid out from these uncertainties ALDI Ltd., uses several
specific marketing strategies, like – advertising, personal selling, sales promotion and add
or remove goods from portfolio. Research and development department – The main role of research and development
department is to assess the performance level of company in comparison of its
competitors. Market research improves sales activities activities by identifying sales
territories and analyse the future sales. Along with this, the idea of new product
development is also based upon effective research and related activities. It ensures that
developed product is able to meet regulatory specifications and guidelines of the product
(Kennedy and Parsons, 2014). Thus, if marketing has proper knowledge of market and
competitors then it can easily expand its market presence by providing new and
innovative products to customers.
 Legal department – The legal department of the company ensure that firm is properly
discharged its business functions. They also manage and prevent any issues that could
arise at workplace and ensure that all working activities are doing in proper manner. In
context of marketing, legal departments plays a critical role in drafting and reviewing
customers' contracts, handling court issues and employee policies etc. On the other hand,
legal departments also ensure to reduce customers' exploitations as some companies
charge higher rather than its actual prices which affect the brand image of the company.
TASK 2
P3 Compare the marketing mix of two different organisations
The term marketing mix is used to place right product at right place in order to gain high
competitive edge and encompasses with seven elements, such as- product, prices, place,
promotion, physical evidence, people and process.
Marketing mix of ALDI and TESCO is stated as follow: -
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(Source: The Marketing Mix 4P’s and 7P’s Explained, 2018)
Basis ALDI Ltd. TESCO
Product A product refers with a tangible or
intangible item which is offered by an
organisation in order to fulfil needs
and wants of customers. ALDI claims
to offer reasonable food items that
carries same quality as other brand
products. Basically, the firm sells its
products to selected suppliers so as to
cover production and operating cost.
Thus, it is the sole reason that prices of
ALDI's products are lower rather than
other supermarkets.
The main products and services of the
company are health and beauty
products, stationery, household goods,
electronic products, soft tools etc. The
TESCO has wide range of product
portfolio in order to provide higher
level of satisfaction to customers.
The main products of TESCO are –
pet care products, food, beverages,
technology and gaming products,
home, electronic and garden
products, clothing, jewellery, books
etc.
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Illustration 1: Elements of marketing mix

firm does not change its products
portfolio but making improvements in
this (Lamb, Hair and McDaniel, 2011).
For instance – in winters ALDI offers
warm camping and snow gears, thus
its modify its products as per the
seasons.
Price ALDI has efficient customer base
cause of its lower pricing policy as
well as the quality to customers. The
firm produces products of its own
brand. Further pricing policy acquired
by the firm is –
Market penetration strategy – it
charges low prices for new and
existing products; it results firm will
easily gain high market share and
competitive advantage.
Unit pricing strategy – it is used for
groceries so that users can easily make
necessary comparison.
Competitive pricing – In context of
high competition, prices of its products
are remained below the competitors in
order to attract more and more
customers.
TESCO follows cost leadership
marketing strategy; it intends to set
prices of the products as per the their
quality and quantity.
The company uses best channels and
economies of scale for procurement
so as to manage low prices and gain
high competitive edge. In 2016, it
has brought down cost of an average
weekly shop by 3%.
Place ALDI group has spread in 20 countries
by having 8000 stores over the world.
The firm always focuses on providing
new and innovative products to attain
TESCO has 7000 stores in almost 15
countries and it has the following
types of stores, such as- tesco
express, tesco metro, tesco extra etc.
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and retain them for long term period.
ALDI generates products in bulk
through diverse suppliers and at this
time it also ensures that product
quality is maintained properly. In
addition, the firm also ensure about
minimum waste disposal when
transporting goods and services from
one place to another.
ALDI also intend to use environmental
friendly tools in its stores. The brand
name is famous across the world and
it has a wide online presence that
allows people to check and verify
product details and locate the nearest
store. It increases customers
appearances in ALDI's outlets.
Along with this, the organisation also
has a great online market presence
which helps in increasing sales and
profitability (Lin and Wang, 2015).
Promotion In this modern era, there are several
promotional activities helps companies
to reach large group of customers in a
certain time period. Effective
promotion and advertisements helps
people to aware about the products and
services of the firm. Along with this,
in order to promote itself in target
market ALDI uses different channels
like – television, radio, newspapers,
magazines etc.
In UK and other western countries,
ALDI makes extensive use of prints,
display and electronic media; it also
TESCO has a leading and extensive
brand image that relies on low
costing. It uses hoardings, charitable
events, television ads as promotional
channels.
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uses email marketing. It assists
customers to inform about special
offers and new products (Malhotra,
Birks and Wills, 2013).
Thus, a mix of ATL (above the line)
and BTL (below the line) promotional
strategy that can be acquired by ALDI
in order to sustain high competitive
edge.
People The retailing supermarket chain has
lower customer services rather than its
competitors as its staff members does
not helps customers in the process of
product selection. The reason behind
this is, in its stores everything is
classified into proper sections; it
reduces the number of workforce
requirement.
The firm pays higher to employees
rather than its rivals and its provides
job training to them for improving
their skills and knowledge.
TESCO is a employee oriented
company as it emphasises on
providing training and development
assists to employees for improving
their performance level.
Process Due to its sheer layout, the process of
finding a product is very easy; it
facilities the process of product
selection (Mihart, 2012). ALDI
believes to keep less number of
products but having high quality as
people don't get confused at the time
of purchasing.
The operational process of the
company is totally transparent
among customers. TESCO organises
different workshops to get customers
aware about the production process.
The official website of the company
also provides proper information.
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Physical
evidence
The firm has renowned its business
processes, global pricing and
standardisation. In addition, 85% of its
products are from home brand and
remaining are from popular brands.
It also maintains same prices of food
items and groceries.
Physical evidence entails as a proof
of reliable products which are
provided to customer. In this
relation, the firm uses logos, labels,
colours, and equipment (Nguyen and
Simkin, 2012). Its outlets and stores
are also known as physical evidence
of TESCO and is it place of moment
of truth with the customers.
TASK 3
P4 Produce a basic marketing plan of the chosen organisation
Marketing plan – Every large and small business firm requires to make decisions which
are emerged from a complex interaction with wide range of people who carries out various roles
and responsibilities at workplace. Being an important of part of management, marketing
managers are highly involved in planning process. Thus, it can be said that marketing planning is
the way which describes roles of each marketing executive in such way to accomplish firm's
aims and objectives. Along with this, marketing planning also helps in allocation of resources in
the best possible manner. It gives guidance to do working activities and operations which helps
to arrive numerous people and let them aware about products and services of the firm (Odunlami
and Ofoegbu, 2011). Marketing planning also includes formulation of business policies, budgets
and programmes etc. Following are the steps which are involved in marketing planning process:
-
Marketing plan for ALDI Ltd.
Overview of the company – ALDI is known as one of the leading favourite grocers. It
offers fresh meats, wines, beers and fresh produce items. The firm was established in 1975 and
currently it is operating in 25 countries. In addition, ALDI has also announced an aggressive $1.6
billion investment in its stores, with an extensive plan to remodel and expand more than 1,300
US stores by 2020. The business approach of the company is focused on gaining long run
benefits and it is based on three aspects, such as- simplicity, consistency and responsibility. The
grocer now operates nearly 1,400 US stores in 32 states, primarily from Kansas to the East
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Coast. ALDI is one of the largest privately held companies in the world. It was ranked eighth in
Stores Media's 2015 survey of the world's largest retailers. According to the survey, it brought in
an estimated $81 billion in 2013, nearly 60 percent of that from its foreign operations. By the end
of 2018, ALDI wants to operate nearly 2,000 stores, creating 10,000 new jobs with an aim of
increasing its market area over the world.
Vision and mission of the company – In order to create efficiency, clarity and have clear
orientation within organisation, ALDI believes to produce high quality products at best prices.
The mission statement of ALDI is to establish itself as a leading low prices retailing company by
making continuous improvements and expand its offerings. On the other hand, the vision
statement of ALDI is to become one of the largest supermarket retail chain by providing top
quality products at lower prices. Thus, to achieve its mission and vision the firm has focused on
these ideologies, such as- outstanding value, excellent quality and hue savings (Papasolomou and
Melanthiou, 2012).
Situational analysis – After assessing goals and objectives of the company, marketers
need to conduct a situation analysis, to determine current marketing position of the company. It
can be done by internal and external market analysis.
SWOT analysis of ALDI
STRENGTH
 The major strength of the firm is offers
products at very affordable prices as
this is the main reason ALDI has wide
range of customers.
 Marketing strategies of ALDI are
successful and at the time of
implementation of new projects the
firm has generated good returns upon
capital expenditures.
 ALDI has strong financial sources that
caters it to expand and launch new
projects. The organisation has an effective brand
WEAKNESSES
 The prime weakness of ALDI is that the
percentage of net contribution and
profitability is less than average.
 Limited success outside core business
(Rundle-Thiele and et. al., 2013).
 Need more investment in new
technologies
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portfolio as it usually introduces new
products or goods.
OPPORTUNITIES
 Acquisition of new technologies and
free trade agreement of government has
provided a great opportunities to ALDI
to enter into new markets.
 Economic upliftment raised the
customers' purchasing power. Lower inflation rates.
THREATS
 Increasing the trend of isolationism
 Government laws and political
unsuitability of some countries
 Rising rates of raw material.
PEST analysis of ALDI: -
Political factors
It involves government laws, regulations and
taxation policies which can business operations
and activities at global context.
UK has good political stability as any business
can survive here for long run.
Economic factors
It includes unemployment, poverty, interest
rates, inflation rates, exchange rates and
disposable income of people (Woodside,
2015).
Social factors
In this modern era, customers need and
preferences are getting change day by day; in
this ALDI needs to produce as per customers'
requirements.
Technological factors
Using new and innovative tools in production
process in order to get high competitive edge.
Identification of marketing strategies – The marketing strategy of the company is based
upon accomplishing high competitive advantage; it means firm should be able to generate profits
in comparison of its competitors by offering lower rates products and services. In this relation,
the theory of Michael Porter's “competitive advantage” can be used here, it is classified into four
parts, i.e. differentiation focus, cost leadership, differentiation and cost focus. In which cost and
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differentiation leadership are used for wide range of business operations in a broader context
whereas cost focus and differentiation are acquired for narrow scope of business activities.
Formulation of marketing budget -
Marketing budget for the year ended 2018, is stated as under: -
Particulars Amount
Paid search 44%
Search engine optimisation 54%
Video advertising 57%
Employees training 66%.
Target market segmentation – In this stage, marketers are required to analyse the target
market of the company in which it will perform or serve. The target market of ALDI is classified
on the basis of geographical and behavioural segmentation. In which geographical segmentation
involves education, occupation, gender, age, state, respondent income, generation and socio-
economic status; on the other hand behavioural segmentation is based on family, home, media,
advertising, environmental, government and social, health and finance.
Allocation of resources – After analysing the target audiences, marketing plan entails to
identify the resources which are required in it, so as to do all tasks and activities in an effective
manner. In addition, there are different types of resources, i.e. human, financial, physical and
technological (Xiao-zhong, 2012). In this manner, marketing managers of ALDI must ensure
about the proper availability of human resources. For this, training and development activities
should organise in order to improve skill and knowledge criteria of people as they can perform
all tasks which are required in goal accomplishment. On the other hand, management also have
to ensure about the requirement of machinery in production process.
Implement the plan – At last, managers have to consult the overall plan with other
employees, if they all are agreed upon this then it get implemented within organisation.
CONCLUSION
As per the above discussion, it get evaluated that marketing plays a crucial role in growth
and success of every business organisation in order to improve its market image and arrive
customers for long term period. Along with this, there are diverse marketing functions, such as-
marketing planning, market research, product design and development and buying and selling
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etc. In order to perform all these functions in the best possible manner, marketers are required to
work together with all divisions. The term marketing mix encompasses with these seven aspects,
like – product, price, place, promotion, people, process and physical evidence. In order to
improve market presence, business organisations should develop a basic marketing plan. It
consists those activities which helps organisations to accomplish their goals and objectives.
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Online
The Marketing Mix 4P’s and 7P’s Explained, 2018. [Online]. Available through:
<http://marketingmix.co.uk/>.
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