Marketing Essentials: Marketing Plan Analysis for Aldi's Success

This report provides a comprehensive analysis of Aldi's marketing strategies, encompassing the roles and responsibilities of the marketing department within the organization. It explores how marketing functions interrelate with other departments such as finance, research and development, customer service, and production. The report delves into a detailed comparison of Aldi's marketing mix with that of its competitor, IKEA, examining aspects like product, price, place, promotion, people, process, and physical evidence. Furthermore, the report constructs a marketing plan for Aldi, outlining key elements necessary for achieving its goals within a defined timeframe. The analysis covers marketing research, distribution channel selection, and promotional activities, all aimed at enhancing Aldi's competitive edge in the retail market.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Roles and responsibilities of marketing department..............................................................1
P2 Roles and duties of marketing relate to wide organizational context....................................3
TASK 2............................................................................................................................................5
P3 Comparison between marketing mix.....................................................................................5
TASK 3..........................................................................................................................................10
P4 Marketing plan.....................................................................................................................10
Overview of ALDI..........................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Marketing is an ongoing process whose main objective is to promote organizational
products and services across distinct marketplace as well as engaged in informing customers
about specific goods. In this modern world entire corporate companies are focussing on their
advertisement strategies because sales of an enterprise is totally depend upon effective
marketing. Retail industry is growing in a rapid sense because of increment in consumer
demands and clients are curious to try something new or unique (Baines, Fill and Page, 2013).
ALDI is one of the most successful company engaged in manufacturing creative items in order to
fulfils the basic requirements of distinct customers. At the same time, it is also identified that
number of competitors are emerging in retail sector such as IKEA is a major competitor of ALDI
because they are coming with close substitutes.
Thus, this assignment is going to classified into three parts for explaining the
indispensable roles and responsibilities of marketing department and its interrelationships with
other functions. Along with this, an effective comparison of ALDI with its competitor IKEA is
also going to discussed on the basis of 7P'S. Furthermore, an appropriate plan is also deigned by
considering necessary elements for attaining set goals in a defined time frame.
TASK 1
P1 Roles and responsibilities of marketing department
It has been identified that organisations now-a-days practice customer centric approaches
through distinct marketing processes. The marketing function of an organisation plays a crucial
role as it ensures that products which are being desired by the consumers are created,
communicated and ultimately delivered to consumers with the right approach (Bowie,
Paraskevas and Mariussen, 2014). The role which has been catered by marketing function
revolves around making sure that needs of target customers are being fulfilled and they are
satisfied with the offering by an enterprise. The role of marketing is further enhanced as there is
a significant rise in the competition in the market of the United Kingdom. Aldi is an organisation
which is known to provide low priced quality offerings to people which simultaneously have
introduced a price war amongst other renowned chain such as Lidl and Tesco. Therefore
marketing function is heavily relied upon by organisation so that major they are able to sustain
their operations in the target market.
1

Marketing function arises a major scope through which more and more people could be
persuaded to avail offerings of an enterprise. Therefore a organisation allocates a major section
of the budget to marketing activities so that a business is able to develop a competitive edge
amongst rivals. The budget is being rightfully utilised by the marketing manager in making sure
that all the activities are carried out in the right manner. The trends in market along with
preferences of customer are undertaken so that right strategies for marketing could be developed
on behalf of an organisation (Brassington and Pettitt, 2013). This feature will assure that
products and services which are being offered by the business are appreciated by customer base
of this supermarket retailer. The application of marketing strategies are carried out with a view to
enhance existing customer base along with enhancing reach of products and services in the
operating market. The grocery items which are being offered by this German based retailer are
often opted by the people over products of rival due to pricing strategies and quality oriented
offerings. The various types of marketing function which are being played within an organisation
are as follows:
Marketing Research: Research can be referred as primary function which has been
played by the marketing team in an organisation. It is a crucial attempt by the marketing domain
which helps in identification of needs, wants and desires of the customer base of the company.
The information which has been collected through marketing research is further channelised in
making sure that suitable products and services are being offered to consumers. This research
will assist an organisation in gaining familiarity with characteristics of consumers along with
identifying what, why, when and how of their buying pattern. The determination of level of
income will help an organisation in carrying out effective pricing strategies ensuring higher sales
figure and profits for a business (Cleverley, 2017). The research provides a basis for
segmentation of customers which can later be targeted with promotional services. A business can
makes use of tools such as observation and questionnaire so that views and opinion of
prospective buyers of a company can be identified and capitalised.
Distribution channel selection: The distribution channel determines manner through
which goods and services will be delivered to consumers. This supermarket retailer is making
use of its retail outlets which are approximately 10,000 in number present in more than 20
nations around the globe. The demand which has been generated through marketing activities is
only fulfilled when an organisation is able to make best use of its retail stores. It is very
2

important for this business to identify presence of prospective buyers on geographical grounds
and making sure that they are catered with outlet in their neighbourhood. It has been a crucial
function which is to be catered by marketing as it ensures that goods being made available to
buyers in an convenient and cost effective manner.
Promotional Activities: According to this element, marketing department of an
organization is engaging in encouraging organizational products or services at marketplace. As a
result trying to gaining maximum benefits by satisfying clients requirements in a given time
frame (Clow and James, 2013).
P2 Roles and duties of marketing relate to wide organizational context
Marketing functions has its important role in organisation as well it is important in every
type of enterprise it can be large scale or small scale. This involves several advertising and
promotional tools and techniques. This is the department which which put their efforts in
attracting more and more customers which help in generating profit. For getting best outcomes in
company marketing department of ALDI communicate with other also such as finance,
manufacturing, product development, selling and many others. Marketing division assist in
conducting research also which is important for identifying need and wants of customers, current
market trend as well feedback of buyers about existing products.
Retail sector is large which have many company this results in high volume of
competition. Major competitors of ALDI is IKEA, TESCO and many other to look distinct from
other enterprises marketing department play important role. In an organisation there are several
activities which take place at single time period that should be managed in proper manner. Roles
and responsibilities of marketing in relation to the other organisational factors are explained
below:-
Research and development – This is important for organisation so they can identify
several market related trend as well customers needs and preferences (Desai, 2013). Research
should be conducted by marketing team before developing their products in market or a project.
It play important role in satisfying customers needs and wants because they are important part of
business environment without their satisfaction no firm can sustain in market for long duration.
Marketing assist in constructing new ideas, establishing market, also in developing products and
services in market. Marketing team have its main focus on that they will bring such product in
3

market which can satisfy current market and customers. As well result in generating large
amount of profit.
Administration – This is the whole authority of organisation they are the person who run
an company. They are the management team whose main motive is to accomplish the task in
effective manner as well without administration no organisation can exist in market. The person
involved in enterprise are managing directors, chief executive officer, board of member,
stakeholders (Dibb and Simkin, 2013). Every firm has an HR department also whose major work
is for hiring candidates , look all the issues of staff member and work for their benefits also.
Same departments are also in ALDI for its smooth and easy working. Human Resource and
marketing both department are interlinked because if there is requirement of employees for doing
marketing work then marketing manager will tell to HR and they will conduct recruitment and
selection process for it. Apart from this there is requirement of budget because without resources
no department can do their work. Same in the marketing also budget is the thing which is
approved by top level administration of firm.
Customers Services – Major work of customer services in organisation is to solve issues
or problems of the customers through which they are going on. Thus, ALDI have an call number
on which buyers can call and solve their issues with customers service executive of company.
After providing solution by executives they can ask for feedback also from their clients related to
provided services. In this work direct interaction with customers take place which s important for
identifying their opinions, views, taste and preferences related to existing as well new launching
goods. Hence, ALDI is providing best customers services so that their buyers will never get
unhappy through their servings. Goals and objectives can be achieved in better manner which is
important for sustain in market.
Distribution – This is related to the distribution of goods and services which is
important. Because without proper distribution no one can fulfil needs and wants of customers in
market area. Through, distribution process ALDI serve their offering to their target customers as
well there is requirement of proper channel for this which can be decided by marketing
department. It simply means that it is the process of outsourcing only for fulfilling need and
wants of customers (Durmaz, 2011). If there is perfect source that only company can generate
large amount of revenue and profit.
4

Finance – Finance is the backbone of business without this no company can survive in
market for long. Because for meeting day to day activity there is requirement of funds as well
finance is the most important factor for starting an organisation. Capital which is invested in
business is necessary for doing overall activity of ALDI. In enterprise activity can be small or
big both but they require funds for completing it in effective manner. For doing marketing
activity related to advertisement, promotion and several other required proper funds. ALDI is
large organisation which have several department in it every division need finance both doing
their work.
ICT (Info Communication Technology) – As per the current scenario technology is a
foundation of each and every company, in retail sector it is helpful, because through this
company can sell their products online and customers can track delivery order of their goods
(Fazlollahtabar, Aghasi and Forte, 2012). Their are some technologies related to this which can
help in communication within the organisation so that information can be transfer from top to
lower level. It is also beneficial for business objectives, because marketing team can evaluate the
data and through analysing this they can recognize the path where they are going, and if there are
efforts required that can implement easily.
Production – Production department is totally related to marketing division because they
identify needs and wants of customers as well current market trend then after it production
department start its work. Thus, production department must be remain in touch with the
marketing division so that it can fulfil needs of customers in target market place. This is the top
department which require funds, human resources, equipments and marketing tools or techniques
for attracting customers.
TASK 2
P3 Comparison between marketing mix
5

Marketing mix ALDI IKEA
Product ALDI offers affordable food
products that similar to the
quality of other brands. The
products are sourced from the
selected suppliers and that's
why it has low cost. Moreover,
the food and beverages the
firm also offers other products
like vegetables, health and
beauty care products, apparels
and electronic products along
with household goods (Fırat,
2013).
IKEA is renowned name for
furniture and it can be divided
for baby and children’s
products, eating, bathroom
stage, desks, mirrors, beds and
mattresses, chairs, cooking,
clothes storage, decoration,
leisure and safety products.
Along with these product it
also keep the kitchen cabinets
and appliances, lightning,
small storages, room décor like
sofa and rugs and other home
adorn stuff.
Price ALDI has a strong customer
bond because of the cheap
price and quality which is
offered only by itself and not
anywhere else. It uses unit
price strategy for the groceries
so that customer's can easily
compare the price with other
brands. Market penetration is
used at the time of of new
entry with a low price and to
gain the market share quickly.
The loss leader pricing method
is used to get the customers at
the door of the store for other
It offers a huge range of
furniture for house and offices
with low cost. It also offers
freebies at the IKEA restaurant
six days of the weak.

products along with all the
price strategies competitive
price is case of high
competition.
7

Promotion ALDI is uses cost – saving
strategies and because of that
the it invests low amount on
the promotions. It has a 'super
buys' offers on the available
stocks on every weakened. It
informs its customers through
newsletters, emails and
messages. It prints a newsletter
with a title 'ALDI informs'
which gives the information
about the products. It also has
a 'swap and save' that make the
customers switch from their
brands. The another promotion
strategy is that 'Like brands'
keeps the customer trust in
cheap products.
It focuses on the marketing
activities for promotions like
TV, print, online ads,
billboards, sponsorships,
newspaper, magazines etc.
Some of the advertisement of
the firm put it on in the
controversy. One of its
campaign is Kitchen party
advert and 'Be Happy Inside' to
support the brand. It iconic
yellow logo is also makes it
different from the other brands
(Gertner, 2011).
Place ALDI has a group of 8000
stores in almost 18 countries.
It keeps it stores layout very
simple to sale the products at
affordable price. It purchases
various products in bulk store
at warehouse to avail the
products at its store easily. It
also reduces the waste and
transportation cost of goods
and it also uses the
environment friendly
The firm is serving over 50
countries and there are many
retail stores in the Europe,
North America, Asia and
Australia. The store also has
restaurants, food shops and a
Swedish market.
8

equipments in the stores.
People ALDI does not require the
sales force to assist the
customer in selection. As it is
organized in such a way so
that people can easily select
their product and that's why
there employees will assist
them on billing time only
through scanning the products.
The firm is based on the storng
relationship with the customers
and their satisfaction. The
employees believes that their
idea is to furnish the home
adornments. The employees
are enthusiastic to offers
services. There are almost
1,16,000 employees in the
retail, 18000 in supply and
21000 production
approximately.
Process ALDI has transparent layouts
that's why it is easy to find the
desired products and it reduces
the sales force to assist them. It
has limited quality product
that's why the people can make
quick decision in selection of
products that reduces the
decision time. The products
has large barcode that helps in
fast billing process.
The firm has several business
process along with 44
production unit around more
than 10 countries. It makes its
own woods through sawmills
to produce the high quality
furniture. The in house
production facilities are
outstanding with the developed
technologies. It has the unique
supply chain and inventory
techniques (Hamilton, 2011).
Physical evidence It is a renowned business
process, standardization and
global pricing. It keeps almost
85% stock from home brand
and the rest is from the other
IKEA has claims to have more
than 350 stores in almost 50
countries. It has a huge store
layout with specific path
layouts that guides the people
9

recognized brands. It always
keep the low prices in all
stores.
to the way of desired location
of their products. The store is
also having restaurant along
with baby handling areas for
the mothers. There is a huge
space for parking.
TASK 3
P4 Marketing plan
Marketing is all about promoting goods or services across distinct marketplace with the
help of several methods such as; social media, magazines, newspapers, online marketing,
brochure and so on. At the same time, it is identified that management of all these elements are
not an easy task due to the involvement of various complex procedures. For example; impressing
the clients is a tough job because every individual is having distinct opinion towards certain
subject area. Thus, ALDI is believing in designing an impressive marketing plan which is
consider as an effective document consist of several necessary elements for attaining set
objectives or goals in a given time duration. Marketing plan is highly beneficial for
organizational success as it aids in controlling probabilities of losses by assisting employees
towards corrective directions (Jones and Rowley, 2011). Therefore, an outstanding plan is gone
through proper procedure or steps for considering necessary components.
Executive summary:- Initial step is to plan various scheme or procedure by considering
elements in order to control probabilities of mistakes. Overall marketing plan is going to
highlight various components which are playing crucial role in directing staff members towards
corrective path. Promoting plan of selected firm incorporates every basic point that must be
trailed by association of organization while accomplishing objectives. It has different
components which includes under this, to be specific - organization review, situational
investigation with the assistance of outside and inward, spending plan, which is required for
stores with to control and actualizing over wastage.
10