Marketing Essentials Report - Marketing Mix of Aldi and Tesco

This report provides a comprehensive overview of marketing essentials, focusing on the roles and responsibilities of marketing within a business context. It begins with an introduction to marketing and its functions, emphasizing the importance of customer-centric approaches and the evolution of marketing in the digital age. The report then delves into the specific operations of Aldi, a global discount supermarket chain, detailing its marketing process, including market analysis, target market selection, marketing mix development, and marketing effort management. Key responsibilities of Aldi's marketing department are explored, such as product and service management, market research, pricing strategies, and promotional activities. The report further examines the interrelation of marketing with other business functions, including human resources and operations and finance departments. A significant portion of the report is dedicated to a comparative analysis of the marketing mix of Aldi and Tesco, highlighting differences in product offerings, pricing strategies, and overall market positioning. The report concludes with a brief marketing plan for Aldi.

Marketing
Essentials

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1...........................................................................................................................................1
P1 Marketing and its Roles And Responsibilities.................................................................1
P2. Interrelation of Marketing functions with other business functions ...............................4
TASK 3............................................................................................................................................5
P3 Comparison of marketing mix of Aldi with TESCO ......................................................5
TASK 3..........................................................................................................................................10
P4 Marketing-Plan................................................................................................................10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing is both a function and strategy that is concerned with producing,
communicating, delivering goods and services that have certain value for consumers. In today's
competitive business scenario every large and small scale, public and private, global and local,
innovative and traditional firms are competing for same market. In this aspect role of marketing
have evolved from just been concerned about products and services into a holistic approach that
assists in creating and maintaining a desirable demand, competition and reputation of a company
(Clow and James, 2013). Aldi is one of the leading chain of discounted supermarket established
in 1946 with its headquarters in Essen, Germany. The report is based on the roles and
responsibilities of marketing function along with giving synopsis about how marketing
interrelates with other functions. Further it will compare marketing mix strategies of two leading
firms of same sector and will provide brief marketing plan for Aldi.
TASK 1
P1 Marketing and its Roles And Responsibilities
Marketing is customer centric approach that includes close knitted efforts for innovating
and manufacturing products and services that are most appropriate in catering unfulfilled
demands and needs of consumers (What is Market and discuss the Main Functions of Marketing,
2011). With advent of digitalization and internet data accessibility about items have increased for
customers enabling them to locate firm's review, product and stock information, various options
of vendors to buy from and so on. Therefore, the role and responsibilities of marketing have
drastically changed from merely publicizing about goods and services to creating brand
reputation, product development, building relationships with stakeholders and so on.
Aldi being a global firm is conducting its operations in more than 20 nations across the
world where in its operation of more than 10,000 stores is been efficiently handled by a
proficient team of more than 2000000 employees across the world (History of Aldi Group, 2018).
Thus, having to survive in such big competitive business scenario and to maintain its market
share marketing managers of Aldi follows a decentralized structure where in all its divisions
works autonomously in healthy fashion to contribute in organization's growth and development
(Kennedy and Parsons, 2014). Marketing department of Aldi follows an intensive marketing
process that involves
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 Analysing market opportunities where in managers of Aldi make use of Management
information system to that reveals various market statics, trends, information related to
micro and macro environment etc. It helps organization to determine uncaptured desires
of its consumers and to make necessary modification in its present products or
introducing an entire new product.
 Selecting target market that includes segmenting market population on the basis of
various factors like age, income, geography etc. There after marketing managers
analysing various market trends and people preferences choose most appropriate target
audience for whom its products and services are best fit and also formulate strategies to
position it as mass or class product.
 Developing of marketing mix that forms third step of marketing process involve
managers of Aldi to prepare most attractive and suitable amalgamation of its 7P's i.e.
product, price, place, promotion, people, physical evidence and process (Papasolomou
and Melanthiou, 2012).
 Managing marketing efforts that is last step of process and directs towards monitoring
performance of various strategies and plans Tahiti er complemented to ensure that all
Mentioned below are certain most prominent roles and responsibilities undertaken by
marketing department of Aldi :
Product and service management: One of the most critical roles and responsibility of
marketing department of Aldi is to handle management of its goods and services. This includes
several activities that are concerned with obtaining, processing and improving quality and price
of product and service in context to changes occurring in customer's needs and upcoming
opportunities related to business environment. Also. Managers of Aldi pay special attention to its
distribution channel system and maintain efficacy in its so as to reduce waiting time of its
consumer. Aldi also is known for its good after sales services where in company ensures to
efficiently handles its consumers queries, take their feedbacks for improvement.
Market Research: It forms one of the most integral responsibility of marketing function
that contributes largely to the growth and sustainability of a company. Managers of Aldi by
conducting periodic market research keep on gathering information related to emerging market
opportunities, to understands its rival's strength and weakness, to ascertain latest technical or
other market updates, to gain knowledge about uncaptured demands of customers etc. Thus, by
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analysing this information Aldi make necessary modification in its products, process or
promotional strategies or implement new ones. This helps firm to provide most distinct goods
and services that readily gets customers’ demands, thereby enabling firm to maintain and
enhance its brand position.
Illustration 1: Marketing Functions
Source:(Different Functions of Marketing, 2018)
Pricing: This forms responsibilities of marketing function of Aldi to set most appropriate
pricing strategy for goods and services offered by company (Siricharoen, 2013). In this relation
marketing manager by studying market research adopt various pricing methods such as market
penetration in order to increase popularity of its new products and to enter into new market. Aldi
is known for its high quality and affordable pricing scheme where in its keep cost of its
goods/services competitive in reference to its contenders. This help firm to target even low
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income group that further enables company to develop loyal customer base and to expand its
business across globe in emerging economies like Asia,Africa etc.
Promotion: Sales promotion is all about capturing attention of target audience to
communicate them about information, benefits, values related to using firm's goods and
services. Aldi being a renowned multinational brand follows a cost effective promotional
strategy where in its spends negligible amount on its brand publicity (Caragher, 2016). However
its limited sales promotion is conducted through print, electronic, online and display media
where in marketing team make use TV ads, newspapers, direct mails, newsletters etc.
P2. Interrelation of Marketing functions with other business functions
Marketing is a strategic function that underpins most activities of business. However it is
important for decisions taken by marketing department to permeate with other functions too. It
is so that the ultimate end products and services that is been produced or offered are successful
in meeting need and requirement of end consumers. Managers of Aldi in order to maintain
efficacy in work in close coordination with managers of other department so that quality and
efficiency could be maintained in all the plans, sales promotions, etc. Mentioned below is
explanation about the way marketing department assists or is been assisted by various other
departments:
Human resource department and marketing unit: The main function of HRM
department is to ensure proficient employee, at right job profile presented as and when required.
Aldi being a customer centric organization relay greatly on its employees skills, knowledge and
capabilities as they are responsible in handling customer, listening to their queries and to provide
them with viable solutions besides assisting them in making their purchase decision (Gamble and
et. al., 2011). Thus, marketing department together with HRM unit ensures that candidates
selected are having requisite qualification and KSA so that they could fulfil their job
responsibilities such as conducting research, generating new product ideas, meet production
targets and so.
Marketing unit and operations department: Operation department of Aldi is mainly
concerned with conversion of material and workforce into products and services their optimum
utilization. The operational management of Aldi mainly emphasize on gaining economies of
scale so as to reduce firm's manufacturing cost and to balance its revenues with total expenses so
as to attain higher profits and offer goods at reasonable prices to its customers. Manager of
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operational department thus work in coordination with marketing unit that assist in setting
deadlines for a production departments to check launching of products as and when needed in
market to ensure their competitive edge. Also it provides with necessary information related to
present and future consumer's needs so that desirable design, quality and quantity of products
could be manufactures.
Marketing and finance department : Marketing department of Aldi requires funds for
carrying out various activities such as market research, sales promotion, advertising etc. Thus,
finance department aids marketing unit by sanctioning required financial resources and also
prepare budget for managers so that expense uncured remains within limits and is spend on high
priority tasks (Illing and Anders, 2016).
TASK 3
P3 Comparison of marketing mix of Aldi with TESCO
Marketing mix could be described as strategy to design and combine 7P's of marketing in
such manner that they are most competitive, attractive and enough to capture audience attention
and induce them to make a purchase (Marketing Mix, 2018). Aldi is UK's fifth largest company
belonging to retail sector that is subject to high competition and large number of business rivals.
Thus, it is critically important for firm formulate smart marketing mix strategy that could enable
firm to increase its productivity, profitability and market position by getting hold of large market
share by capturing attention of its target audience (Which are the 7P's of Marketing, 2016). Thus,
firm keep on revising its marketing mix strategy in light of its leading market contenders.
Mentioned below is comparative study of marketing mix of Aldi with its leading market rival
TESCO:
Basis ALDI TESCO
Product Aldi owns almost 11% of total
UK grocery market whose
products are counted in most
affordable ones. Company offers
a wide variety of products
ranging from groceries, to
beverages, to general
Company has different range
of products providing at its
large number of stores. Tesco
specialise in selling Beverages,
Pet care products, Frozen food,
Technology and gaming
products, Bakery products,
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merchandise, cosmetics,
stationary, home appliances,
apparels, electronic products, soft
tools and many more. Also, Aldi
offers different product line as
per seasons. Firm also offers a
mobile virtual network in nations
like Germany, Netherlands,
Belgium and Australia and also
owes self-serve gas stations in
Austria (Ogunmokun, and Tang,
2012).
Home electrical products,
Toys, car products, Baby and
toddler products, Sports and
leisure products, Party and gift
products, Clothing and
jewellery, Health and beauty
products, Entertainment and
books. All these products are
currently available at
marketplace at affordable
price.
Price Aldi is known for its premium
products offered at reasonable
price that forms major reason
behind firm’s large customer
base. Firm is having its own
brand products that it exclusively
offers. Aldi to set best
competitive price formulates a
mixed pricing strategy that is a
combination of various pricing
schemes. For instance through
unit pricing Aldi set lowest
possible price which customers
can easily compare. By making
use of market penetration it offers
new products at low pieces so as
to capture market share. Through
competitive pricing by utilizing
economies of scale it offers price
In order to produce product to
the customers and at
marketplace, company use cost
leadership pricing strategy. It
is useful and valuable strategy
to attract large number of
customers easily. Tesco
follows best channels for
procurement and economics of
scale to keep low prices.
Company continuously
performs with its suppliers or
providers to enhance and make
the supply chain cost-effective
to decrease prices. Tesco give
stable and low prices, after
collecting feedback from its
clients company cut down
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that is lower than its competitors.
And by making use of
Psychological pricing and loss
leader pricing company set its
products price in rounds off like
$3.78 rather than $4.
expense related to promotional
Place Aldi has more than 10000 stores
across 20 different nations
around the globe. In UK
particular company has around
1600 stores in more than 32
states. Also company have its
own warehouses that enables it to
manage its visibility among its
consumers and to cater their
demands as and when required.
Further company is also
intensively using online websites
that assist its consumers to
check various products details,
located their nearest stores, get
information related to new
products, discounts, offers etc.
TESCO is having its
operations in around 11 nations
where in it operates 6900
stores. TESCO also manages
some express stores where in
its provides essential and high
margin products that are also
expensive in comparison to its
other stores.
Promotion Aldi promotional activities are
quiet comprehensive and cost
saving. It is due to the fact that
firm spend minimum on its sales
and product promotion activities.
Firm generally provide super
buys offers that are exclusive on
TESCO enjoys a strong brand
name that relies on low prices.
TESCO make use of various
promotional strategies
comprising print, electronic
and online media such as TV
ads, hoardings etc. Besides this
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weekly basis and available to
consumers till stocks last. For
this company make use of
newsletters that is handed over to
customers through direct mail or
newspapers (Bačík, Štefko and
Gburová, 2014). Further, firm
make use of various electronic,
print and online media such as
TV commercials, newspapers,
displays, emails etc. to attract and
inform its consumers. Further
other promotional techniques that
Aldi uses to promote its brand are
'Swap and Save', 'Like brands..
Only Cheaper.'
company also conducts various
charitable events as a sales
promotion strategy Further
company offers various
discounts, loyalty cards, club
membership etc. Also firm
make use of various online
media like websites,social
media etc.
People Aldi employees approx. 2100000
staff members in all its stores
across globe. Aldi is alleged to
have low customer service that is
because of its simple and smart
store layouts that reduces
employees that are required at
each floor to assist consumers.
Also Aldi emphasis greatly on its
employee’s comfort that is
evident from its billing section
where there is seat for staff
members that enables them to
scan products quickly. This helps
in reducing waiting time of
Tesco is a multinational super
market chain in the United
Kingdom. In the organisation,
there are different number of
people are working. In order to
get right people, policy section
and careful job is needed by
the organisation. There are
approx. 480,000 workers in
around 11 markets across the
globe.
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customers. Further company
organizes training and
development programs for its
workforce periodically to
maintain and enhance their core
competencies. Remuneration
offend by Aldi to its staff is also
higher than its competitors.
Physical Evidence Aldi is globally known for its
simple, standardized process and
global pricing. As firm provides
30% cheaper goods and
maintains low prices every day
in all its stores around world it is
easily recognized by its
customers (Dudu and Agwu,
2014).
TESCO physical evidence is
its authentic products that it
offers to its consumers.
TESCO's logo, labels, colours
and equipment’s that forms
major aspects that makes
company distinct from its
contenders and help customers
to easy recognize the brand.
Also as firm is maintaining
more 7000 stores more than 13
nations, that also count on its
physical evidence.
Process As it offers a well-coordinated
store layout it hugely assist its
consumers to locate products.
Also as company stock limited
quality brands that further
prevents people getting confused
in selecting desirable item,
thereby reducing their selection
time as well
TESCO follows a business
procedure where various
market aspect such as
production capacity, service
feature, accessibility etc. are to
be accomplished are given due
emphasis (Moons and et. al,,
2010). This assist in reducing
chances of deviations.
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TASK 3
P4 Marketing-Plan
Company Overview
Aldi is a global multinational discount super market chain that is UK's on of the leading
brand. Organisation is engaged in providing a wide range of products that includes grocery, dairy
products, electronic appliances, apparels and many other non-food items of premium quality at
affordable prices (Campbell and Martin, 2015).
Vision and Mission Statement
Vision: “ Top quality at incredibly low prices- Guaranteed.” Aldi thoroughly follows its
ideology i.e. excellent quality, huge savings, outstanding value and buy with confidence.
Mission: Aldi works towards achieving its three main core values – responsibility, simplicity
and reliability so that it could offer high quality of products at reasonable prices that will help
firm to diversify its business.
Objectives:
Aldi has formulated SMART objectives to in order to expand its business.
 Specific: Aldi aims towards diversifying its business in UK by opening 1000 new
supermarket stores by 2022.
 Measurable: Aldi has opened total 726 stores in UK till 2017 which has rose its market
share at 6.9%. Company aims towards achieving 10.6% by 2022
 Achievable: As Aldi has opened 76 stores this year and experience a growth of 0.7% in
its share this objective is quiet achievable.
 Realistic: The object to open 1000 stores is realistic and profitable for Aldi as it will
enhance company's market share and profit index. Time : Aldi strives to achieve objective of opening its 1000 new stores in UK by 2022.
SWOT ANALYSIS
Strength
 Most prominent strength of Aldi lies in
its strategy of providing superior goods
at low-cost that benefits company in
capturing large market share
 Apart from Germany, it is having good
Weakness
 Aldi' products are presumed to be of
cheap quality as customers in general
perceives low cost products as of
inferior quality
 Also due to its store layout Aldi
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base in UK where in it has more than
1600 stores in around 32 states
 Company because of its huge consumer
base get benefit of attaining economies
of scale in its production process that
further enables firm to provide
reasonable goods to its customers
 Another prominent strength of Aldi lies
in its product line variation that it
changes in accordance to seasons.
employee less staff at each floor which
tends to become a drawback in case of
increased footfall of consumers on
special occasions.
 Aldi although been in top 10
supermarket chains in UK still lacks
behind from British supermarket
chains.
Opportunities
 Aldi has currently opened 700 store in
UK and is planning to open 1000 more
till 2022
 Further expanding and improvising its
distribution centres Aldi has invested
£450 m in 2017. Also Aldi UK is
consistently investing £1.7bn in its new
stores to enhance shopping experience
and make its accessible to its 14 million
consumers.
 Aldi to expand its market share has a
huge opportunities to invest and
diversify its business in emerging
developing economies like Asia and
Africa.
 Also to attain growth and edge over its
leading rivals like TESCO, Lidl etc.
firm is requisite to invest and intensify
its promotional activities to reach put its
potential target audience in various
Threats
 High and intensive competition in retail
industry sector comprising big
supermarket chains like Walmart.
 Aldi although deals in variety of
products however it stocks selected
brands. Also it does not deals in
products related to latest gadgets,
technology, gaming etc. And thus fails
to provide a complete shopping
experience under one roof to its
consumers.
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other nations across globe.
STP Approach:
Segmenting Aldi is brand for the customers that want to buy general merchandise,
household products and grocery at reasonable prices.
Targeting Aldi target audience mainly comprises family and household groups.
Positioning Aldi has positioned its brand as high quality low cost products. As Aldi
is leading discount chain in Germany, UK, Ireland etc. it is now
targeting to position its brand in fastly emerging developing economies
like Asia, Africa etc.
Strategies for implementation of SMART objectives
In order to successfully implement its pre determined objectives it is requisite for Aldi
to first of all conduct an internal analysis about the probable benefit that its stakeholders will get
by achieving these goals. Also it is requisite for company identify factors that might interfere or
aid in progress of its set goals (Eslinger, 2014). Besides these mentioned below are certain
strategies that is recommended for Aldi to adopt and formulate in order to attain its objectives
within specific time limit:
Project Implementation Plan which is a communicational tool that provides structured
format of the whole project. It includes a detailed information about planning related to scope ,
resource, risk management, configuration management, change management, project quality
assurance, requirement management plan, document management plan, tasks, deliverables,
schedules and communication strategy. This will aid Aldi to delegate roles and duties to its
employees that will further reduce down chances of delay in project due to miscommunication.
Further this plan will also assist other stakeholders to ascertain their responsibilities in a
particular project.
Performance management plan will help Aldi to to compare the actual performance of
firm with expected outcome on basis of pre determined standards. Thus it will help company to
identify its lacking that is acting as barrier in attaining their set objectives (Jones and Rowley,
2011). Thus, firm by identifying areas of its improvement can make its employees to work on
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those aspects so that goals could be achieved with maximum proficiency within specific time
frame.
Another major strategy that Aldi could implement is to turn its long term strategies into
short term tactical plans. For this it is highly critical for company to retain its best employees that
can take up charge of handling operations of its new stores. For this, company company should
provide proper career guidance, training, apply performance appraisal techniques etc. so that
most appropriate workforce could be retained in organization to take up high challenging future
responsibilities.
Further is is requisite for Aldi to intensive its promotional strategies by making use of
various popular online media tools such as internet and social media tools such as Facebook
twitter, Instagram etc. that will help firm to reach out mass audience in time and cost effective
manner(Mihart, 2012). Firm can also make use of leaflets and pamphlets to communicate its
consumers about their new stores besides giving TV commercials and newspaper ads.
Also firm could make use of Search Engine Optimization that will further assist firm to
get its website to appear on top of customer search whenever they search for a particular
keyword that company has decided to link with its websites. For instance, keyword that Aldi
could registered with SEO is super market, retail, affordable products, retail, lifestyle etc.
Control Measure:
To monitor and control the progress of company Aldi can adopt following methods:
 Annual Plan Control: This plan will help firm to ascertain whether its marketing and
paromoti9onal efforts used by Aldi have been effectively implemented and are successful
in capturing attention of its target audience or not
 Profitability Control: This technique will help Aldi to monitor and measure its sales
volumes,revenues earned and expenditures incurred by organization. It will also assist
Aldi to ascertain profit earning capacity of its products and services besides determining
its customer groups.
Budget;
Marketing budget
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Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 3000 6000 8000 10000 12000
Investment 13000 20000 25000 12000
Total 3000 19000 28000 35000 24000
Marketing outlay
Promotion 4000 2000 3000 4000 2000
sales publicity 4000 4000 5000 3000 3000
Direct selling 4000 2000 5000 4000 5000
Total 12000 8000 13000 11000 10000
CONCLUSION
The report undertaken concludes that marketing forms an integral function for any
organization that integrates several activities such as manufacturing, delivering and
communication products and services to ultimate consumers. The report provides detailed study
of one of the leading retail brands of UK. The project explains how marketing function
undertakes several roles and responsibilities and work autonomously in close coordination with
other departments so that ultimate goals and objectives of firm could be achieved. Further a
comparison of marketing mix strategies of two UK leading retailers are been done. Report also
explains a detailed marketing plan for UK's leading retail organization that comprises a synopsis
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of company's vision, mission, SMART objectives, strategies to achieve and measure to control
them. Also financial projection through budget for company is also been provided.
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