Comparative Analysis of Coles and Aldi's Extended Marketing Mix

This report offers a detailed comparative analysis of the extended marketing mix strategies employed by two major supermarket chains: Coles and Aldi. The analysis begins with an overview of each company, including their market presence, product offerings, and financial performance. It then delves into their respective marketing strategies, examining how they utilize the elements of the extended marketing mix, including product, price, place, promotion, people, process, and physical evidence. The report highlights the key differences in their approaches, such as Coles' emphasis on a wide variety of products and public services compared to Aldi's focus on brand improvement and cost-efficiency. It also explores how each company adapts its strategies to its target market and competitive landscape. The report concludes by summarizing the key findings and offering insights into the effectiveness of each company's marketing mix in achieving its business objectives.

extended marketting mix
INNOVATION AND MARETING
INSTITUTIONAL AFFILIATION(S)
STUDENT NAME
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MARKETTING-EXTENDED MARKETING MIX

INNOVATION AND MARKETING
Figure: Extended marketing mix
Source: (Brocke 2012)
COLES
An Australian based chain of supermarket that was established in the year 1914 is Coles who
has more than 2300 retail outlets while gaining revenue of around $38 billion yearly. The
product it deals in comprises of groceries, meat, liquor, etc. and few products under its own
brand (Coles Supermarkets Australia Pty Ltd 2017). Coles marketing policy covered under
marketing mix can be explicated after reviewing its marketing strategies. The products it
deals in are basically related to variety of general products along with financial services.
Along with it, the company also deals in online services and owns Spirit Hotels. To maintain
low pricing strategy, Coles introduced various schemes and staff retaining techniques. Coles
along with maintaining 2300+ supermarkets has many express stores that allow fast delivery
of products to its customers. Marketing and advertising strategy of Coles reflects on low
pricing offers and discount coupons while introducing special promotional policies during the
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INNOVATION AND MARKETING
time of Christmas and New Year. Cole’s regular effort of expanding its outlets shows its
strong physical evidence. The products displayed in the store are also arranged in a fashion
that makes customers easy to select their desired product. Since to run such a large empire,
maintaining public relationship is very essential and for that Coles makes regular training
sessions of its employees like The First Step Program and Retail Leaders Program to enhance
public services. Supply chain process of the company streamline with cost efficient way of
supplying essentials to its customers through online and retail stores. Purchasing supplies
from its suppliers is also made in strategic and planned manner (MBASkool n.d.).
ALDI
Aldi is another chain of supermarket that established in Germany in the year 1946 by two
brothers, Theo Albrecht and Karl Albrecht. The company is further divided into two groups
namely ALDI Nord and ALDI SUD in which the full form of ALDI stands for ALBRECHT
discount. ALDI as compared to Coles is larger and operates in more than 9600 stores spread
in 18 countries globally (Aldi Stores Limited 2017). The store follows a principle of bulk
purchase which helps in keeping the pricing strategy of specialised products lower. Also not
many varieties of products are available which shows its selective choice for products as the
company believes in “limited assortment concept”. The products purchased by ALDI from its
suppliers are branded under its own name. And while the company selects only high quality
suppliers, the brand image is not spoiled. The products ALDI deals in are basically health and
beauty products along with clothes and electronics. The company believes in experimenting
with its products according to changing season thus adapting products streak as per
customers. Aldi also specialise in mobile operating service as well as self served gas stations.
The company follows unit pricing strategy that enables customers to make comparisons with
other stores (CHUNG 2016). The company has its business spread in many countries and
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INNOVATION AND MARKETING
names given to that store are according to countries name. Aldi also shows online presence
that helps customers locate nearest store along with getting prices of desired products. Mostly
bulk purchases are given special discounts and the information about new schemes is given to
its customers through emails and letter called ‘Aldi Informs’. Customer related service is not
much in stores as all selecting and selling processes are made in thought out and
computerised manner. This process also reduces requirement of large number of employees
as well as customers also finds easier and faster to select products and making bills. The
standardised and global pricing strategy of Aldi along with maintaining lower prices has
made its physical evidence stronger from other recognised brands.
COLES AND ALDI EXTENDED MARKETING MIX STRATEGY
After analysing the extended marketing mix strategy of Coles and Aldi it can be said that
both the companies holds strong position in the markets of respective countries while
following different techniques in strategies. Coles follows a pattern of providing variety of
products along with public services, Aldi focuses on the improvements of its brand only. The
operations of Coles are limited to markets of Australia while Aldi deals in global operations.
Coles maintains superior public servicing strategies while Aldi maintains such business
processes that does not require many employees. Promotions made by Coles do not
encourage bulk purchases only as compared to Aldi. The promotional policies of Aldi is
limited and on seasonal basis where Coles makes regular promotions. Thus after making a
close comparison of both the companies it can be rightfully said that both the companies
follow different strategies in application of extended marketing mix (Milan 2016).
REFERENCES
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Aldi Stores Limited 2017, Aldi, viewed on 21 September 2017, < https://www.aldi.co.uk/>
Brocke, K 2012, Is There Such Things as the Four Ps of Marketing?, viewed 21 September
2017, <https://vonbrocke.wordpress.com/tag/extended-marketing-mix/>
CHUNG, F 2016, Customers flocking to Aldi for value, fresh food appeal going stale:
Morgan Stanley, viewed 21 September 2017, <
http://www.news.com.au/finance/business/retail/customers-flocking-to-aldi-for-value-fresh-
food-appeal-going-stale-morgan-stanley/news-story/f8fb58df8885d049d65fa59a4d91e28f>
Coles Supermarkets Australia Pty Ltd 2017, Coles, viewed on 21 September 2017, <
https://www.coles.com.au/>
MBASkool, n.d, Coles Marketing Mix, viewed on 21 September 2017, <
http://www.mbaskool.com/marketing-mix/services/16831-coles.html>
Milan, L 2016, The thorny business around Marketing Mix Modelling., viewed 21 September
2017, <http://www.researchnewslive.com.au/2016/10/25/the-thorny-business-around-
marketing-mix-modelling/>
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