Marketing Management Report: ALDI's 12-Month Campaign Plan (2020-2021)

This report presents a comprehensive marketing plan for ALDI Supermarkets, addressing key aspects of marketing management. It begins with an introduction to marketing strategy and provides a background on ALDI. Task 1 involves a thorough marketing audit, including an examination of internal and external factors, and the application of TOWS analysis to identify strengths, weaknesses, opportunities, and threats. Task 2 focuses on establishing SMART marketing objectives for ALDI's 'Expressing Ourselves' campaign. Task 3 outlines the proposed marketing mix plan, detailing the strategies to achieve the set objectives. Finally, Task 4 provides recommendations for improving ALDI's customer service as part of the campaign. The report incorporates various marketing tools and principles to offer a strategic roadmap for ALDI's marketing efforts over a 12-month period, from May 2020 to April 2021.

Running head: MARKETING MANAGEMENT
MARKETING MANAGEMENT
Name of Student
Name of University
Author’s Note

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ABSTRACT:
This report discusses about the marketing audit and TWOS analysis. It also runs a TWOS
analysis over ALDI and discusses about the possible strategies that the company can adopt in
order to mitigate the upcoming threats. The report also uses SMART objective principles to
identify the marketing objectives for ALDI. The marketing mix is also being conducted over
ALDI. The improvements of customer service that ALDI can implement in their process are also
being discussed in this report.

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Table of Contents
1.0 INTRODUCTION:....................................................................................................3
1.1 Background of ALDI Super Market:.....................................................................3
2.0 TASK 1:.....................................................................................................................4
2.1 Marketing Audit:....................................................................................................4
2.2 TWOS Analysis:....................................................................................................5
2.3 TWOS Analysis for ALDI Super Market:.............................................................5
3.0 TASK 2:.....................................................................................................................8
3.1 Marketing Objective:.............................................................................................8
4.0 TASK 3:...................................................................................................................10
4.1 Marketing Mix:....................................................................................................10
5.0 TASK 4....................................................................................................................12
5.1 Customer Service:................................................................................................12
5.2 Recommendations:...............................................................................................13
CONCLUSION:................................................................................................................14
REFERENCES:.................................................................................................................15

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1.0 INTRODUCTION:
Marketing plan or marketing strategy is a strategy that is being developed on the basis of
overarching strategic framework. It is often seen that marketing strategy and marketing plan are
incorporated under the same head. This kind of incorporation is common in the case of the small
companies who conduct one or two marketing campaign in a single financial year. The
marketing plan is mainly outlined on a monthly, quarterly or yearly basis. Marketing plan mainly
incorporates the value proposition of a business. The value proposition based on which the
organization will develop the marketing plan should state how their product will solve the
customer’s problem, how the product will benefit the company and what should be the unique
selling proposition of the product.
This report will investigate about the marketing strategy that ALDI Super Market has to
offer. In order to understand the marketing strategy of ALDI Super Market, this report
investigates about the marketing audit and the tools that are used for marketing audit. This report
also discusses about the TWOS analysis and the role it plays to identify the marketing strategy of
the company. TWOS analysis has been conducted on ALDI Super Market company. SMART
principle plays an integral part in any marketing strategy. The same has been conducted to
oversee the marketing position that ALDI Super Market adopts. The importance of customer
satisfaction in the business of ALDI Super Market is also being discussed in this report.
1.1 Background of ALDI Super Market:
ALDI Super Market also known as Albrecht Discount was first established in Essen,
Germany in 1913. In 1948, the company expanded and installed new retail shops all over the
world. The company has turnover more than €50 billion. The company has more than 10000

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stores in more than 20 countries. During the starting of 1960 the company divided into two
groups. They are ALDI Nord and ALDI Sud. ALDI Nord deals with 35 individual regional
companies that are present in western, northern and eastern Germany. ALDI Sud deals with 32
regional companies that are mainly present in western and southern Germany. Internationally
ALDI Nord mainly operates in Denmark, France, Portugal, Spain, Poland and other Benelux
countries. ALDI Sud mainly operates in Ireland, Great Britain, Hungary, Switzerland, Australia,
China, Italy, Austria and Slovenia. The company also operates in the United States of America.
All ALDI Super Market stores are famous for providing products at a very low cost. This also
acts as a USP for the company and assists them to establish themselves as a Super Market giant
in the world. The prices of the products are so low that the company uses their own price tag.
2.0 TASK 1:
2.1 Marketing Audit:
The marketing audit is a systematic analysis of the marketing environment of an
organization. It deals with both internal and external factors of the organization. The scope of
marketing audit includes goal of the organization, objectives of the organization, and strategies
of the organization (Aghaei et al 2014). The marketing audit assists the organization to identify
the problems and the opportunity that are associated with the organization. The marketing audit
of the company also deals with the stakeholder assessment.
The marketing organization also identifies two sets of data, which includes strengths and
weakness of the company. The identification of the weakness of the organization helps the
organization to improve their performance. The identification of strengths, on the other hand,
assists the organization to identify the areas which are driving the marketing success of the
company.

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In order to conduct the marketing audit properly there are different tools that assists the
organization. These tools include SWOT analysis, PESTL analysis and Porter’s Five Forces
analysis. SWOT analysis is the tool that identifies the strengths, weakness, threats and
opportunity of the company. The analysis of these factors help the management of the company
to create new plan that in future will help the company to improve their performance. PESTL
analysis is also an analysis that helps the management of the company to identify both internal
and external environment factors of the organization. In order to identify the competitive
environment of the company Five Forces model are being analysed (Akbar et al 2014). It
analyses the power of the supplier, power of the buyer, competitive rivalry, threat that exists
from substitution goods and threats of new entry.
2.2 TWOS Analysis:
TWOS analysis is the tool that is used by the management of the company to select and
compare strategies. It is used as a tool for creating strategy and selects the most feasible strategy
for the company. The management of the company mainly uses SWOT at the beginning of the
planning process and use TWOS on later stage to create the most feasible strategy. The four
potential strategy drivers of TWOS analysis are Strengths and weakness, which is the internal
factor and threats and opportunities, which are external factors. The four strategies of TWOS are
Strength/Opportunity (SO), Weakness/Opportunity (WO), Strength/Threat (ST) and
Weakness/Threat (WT).
2.3 TWOS Analysis for ALDI Super Market:
The SWOT analysis of ALDI Super Market mainly states about the strengths, weakness,
threats and opportunity that are associated with the company. ALDI Super Market consists of
much strength that assists the company to develop and grow in future. There is also some

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weakness and threats that persist with ALDI Super Market, but the opportunity that ALDI Super
Market have, can guarantee the betterment of the company. Strategy that ALDI Super Market
will require in order to improve their performance cannot be determined through SWOT
analysis. In order to analyse the strategies the management of ALDI Super Market needs to
conduct TWOS analysis (Datta, Ailawadi and Van Heerde 2017). TWOS analysis assists the
management of the company to identify the Strength – Opportunities (SO) strategies, Strengths –
Threats (ST) strategies, Weakness – Opportunity (WO) strategies and Weakness – Threats (WT)
strategies. Strength – Opportunities (SO) state the strategies of using the strength to take
advantage of opportunity. Strengths – Threats (ST) state the strategies of using the strength to
mitigate the threats for the company. Weakness – Opportunity (WO) states the strategies of
converting the weakness into strengths using the opportunity. Weakness – Threats (WT) states
the process of overcoming the weakness, so that the threats can be avoided.
The TWOS analysis of ALDI Super Market is provided below:
SRENGTHS
1. ALDI Super Market
has more than 11000
outlets around the
world, which indicates
the strengths they hold
in terms of distribution
network.
2. The company uses a
low cost structure that
ultimately provides a
financial advantage
over its competitor.
3. The company has a
WEAKNESSES
1. ALDI Super Market
mainly uses rented
property, which costs a
lot to the company as
they pay high rent.
2. As compared to their
competitor ALDI
Super Market spends
very less amount in
their research and
development
department.
3. The company has high
employee turnover

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very strong financial
position, as they have
earned considerable
amount of profit in last
few years.
4. ALDI Super Market
has diversified and
most qualified labor
force.
5. ALDI Super Market
has a very strong
presence on social
media.
rate.
4. After analyzing the
annual report it can be
determined that the
company has low
liquidity ratio due to
the rise in the current
liabilities in recent
times.
OPPORTUNITIES
1. Social marketing is on
rising term, so the
company indulge
themselves to gather
more customers around
the world.
2. As per a recent
economic survey it can
be determined that the
household income of
the developed and
developing countries is
increasing. Due to
which the consumer
spending are also
increasing.
3. Governments from
different countries are
providing subsidies to
many companies
around the world for
selling environmental
friendly products and
services.
SO STRATEGIES
 ALDI Super Market
should increase
marketing, so that they
attract more customers
from the market.
 The company should
also be active in social
media, so that they can
create a separate
customer base through
social media
marketing.
 By investing in
environmentally
friendly products the
company can earn
produce products at
low cost, as the
company will entitle to
get subsidies from the
market.
 The company should
keep providing
discounts, so that they
can expand their
market base.
WO STRATEGIES
 The company can
adopt finance
ownership using low
interest rate, so that the
rental fees can be
omitted. This will also
increase the level of
fixed assets for the
company.
 In order to reduce the
attrition rate the
company needs to
implement new
schemes, so that the
employee can perform
better. The increasing
of the employee moral
is also one of the major
points that the
company needs to take
care.

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THREATS
1. ALDI super Market
can face considerable
amount of threat from
new entrants.
2. Due to the recent
economic condition the
exchange rate has been
devalued.
3. The rise in fuel price
makes inputs of the
company more
expensive.
4. The competition in the
industry is increasing.
5. The threat from
substitute products is
increasing for ALDI
Super Market.
ST STRATEGIES
 The company should
utilize their strong
distribution network to
gain more customer
base, which will assist
them to eradicate the
threats from new
entrants.
 If the company can
strengthen their supply
chain then the costs of
the products can be
reduced, which will
assists the company to
gain more customers.
WT STRATEGIES
 ALDI Super Market
should invest more in
research and
development
department of their
company, so that they
can compete with the
upcoming competition.
 The company should
enrich the working
environment, so that
attrition rate of the
company reduces.
3.0 TASK 2:
3.1 Marketing Objective:
Marketing objective is one of the most integral parts of the marketing strategy. Any
organizations need to have specific goals that will ultimately drive the company to move
forward. Thus, marketing objective plays an important role in developing the marketing strategy
of any company (Davari and Strutton 2014). In order to choose the marketing objective of any
company, the management of the company needs to review the options that are available for
them, so that they can develop the strategy for the company.
It is often seems very hard for the company to formulate a proper future
marketing objectives. SMART objectives are the type of objective setting tool that assists
the management of the company to set a proper objective for any organization. SMART

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objectives are created based on five basic principles they are specific, measurable,
actionable, relevant and time-bound. Specific principles mainly try to identify the
information that is sufficient to identify the opportunity or problems and then tries to
create the marketing objective of the company. Measurable also identifies the quantitative
and qualitative aspect that is related with the marketing objective of the company.
Actionable principle of SMART objective tries to identify the performance of the
company. SMART objective identifies whether the objective is relevant to the specific
problems or not.
The three examples of marketing objective using SMART objective principles are
as follows:
Example 1: Increase sales growth by 20% than previous year.
In order to meet the sales objective SMART objective can be used.
Specific: Increase of sales growth.
Measurable: The sales growth should be increased by 20% than previous year.
Attainable: The sales target should be divided accordingly.
Relevant: The sales will increase the revenue of the company.
Time-bound: The target is for 1 year.
Example 2: Restructuring business plan.
Specific: Make changes in the business plan of the company.

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Measurable: The performance measures can be used to identify the performance of the company.
Attainable: On the basis of previous year performance and present year budget the business plan
will depend.
Relevant: Will increase the performance of the company.
Time-bound: Needs to be done before the present financial year begins.
Example 3: Make presence in Social Media.
Specific: Increase the social media activity.
Measurable: Needs to measure the numbers of social media subscribers and customers.
Attainable: Identify the needs of the customers who are available in the social media.
Relevant: Will increase the sales percentage of the company.
Time-bound: There is no such time-bound for it.
4.0 TASK 3:
4.1 Marketing Mix:
In order to promote a product or brand in the market every company uses marketing mix.
Marketing mix states the actions or tactics that the company can use to promote them. Marketing
mix has evolved by considerable means. Marketing mix are being segregated into 7Ps. They are
price, product, promotion, place, people, positioning and packaging. The significance of the 7 Ps
is very much important in the company. In order to determine the suitability of product or service
for targeted customer marketing mix are being analysed.

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The marketing mix of ALDI Super Market is provided below:
Product:
 ALDI mainly categorize its products under 5 heads and each of these heads has their
own separate product lines.
 ALDI offers a large variety of products, which enables the customer to select the product
that can fulfil their needs.
 The products that are mainly sale by ALDI are considered very unique and thus, it
provides competitive advantage to the company.
 They offer higher quality product to their customer, which also gives competitive
advantage to them.
 ALDI is famous for selling products that have traditional design.
Price:
 ALDI follows competitive based pricing strategy. This enables them to maintain
supremacy in the market.
 ALDI sale their products at a very high price due to the quality of the product they tends
to offer.
 The company also uses product bundle pricing as well, which enables them to sale
products a lower prices.
 ALDI usually charges high prices on the products that they usually sale online due to the
delivery cost.

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Place:
 ALDI uses two marketing channels to sale its products. One of them is through online
marketing and another one is through retailers.
 ALDI has in numerous retail stores all over the world.
 ALDI has omni-channel distribution system that enables the company meet the customer
needs even in offline mode.
 The company has huge number of suppliers. The company developed a close working
relationship with the suppliers (Khan 2014).
Promotion:
 In order to promote ALDI uses traditional media channel and internet channel. This is
beneficial due to its large reach and ability to attract a large number of people.
 The company also uses various social media for promoting their brands and products.
Social media like Facebook and Twitter are some of the common social media forum that
ALDI uses to advertise.
 Taking part in various trade exhibition and events around the year assists the company to
promote their brand.
 In order to increase their presence the company uses personal selling model.
5.0 TASK 4
5.1 Customer Service:
The process through which any organization provides service to their customers is known
as customer service. In order to improve the customer service, the management of the company

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builds separate sets of rules and policies. The quality customer service will assist the
organization to develop business relationships with the customers. The importance of the
customer service is immense. Customer service has the direct relationship with the customer
satisfaction. The quality customer service enables the company to increase their customer base.
The better customer service helps the company to retain customers, which is much cheaper than
the acquisition of new customers (Huang and Sarigöllü 2014). The customer service also has the
direct relationship with the goodwill of the brand. The quality customer service ensures more
goodwill for the company. Customer royalty also based on the customer service of the company.
It is often seen that the customers are more reluctant to pay high prices for the products that has
better high quality customer service. It is also being observed that the better customer service
provides a competitive advantage to the company. Better customer service or high quality
customer service creates marketing opportunities for the company. The better marketing
opportunities will ultimately improve the revenue of the company and sustainability of the
company.
5.2 Recommendations:
In order to improve the customer service, ALDI must implement policies that can help
them to empathize with their customers. If the company can understand the needs and the real
feelings of the customers then they can develop their business model accordingly. The better
business model will enable the customers to get more money from the employees. ALDI should
also create a common forum either through social media or through websites. These will enable
them to collect all the feedbacks that are associated with the customers. The company can also
get surveys through calls or message, so that they can identify the weakness that present in their
products. In this way the customers not only engages the customers, but they also getting the

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room to improve or develop their products accordingly. In order to improve the customer
service, ALDI can use CRM platforms. The streamline of the workforce through CRM platforms
will assist the company to maintain effective coordination between the teams and different
departments of the company. This will enable them to solve any kind of issues that are being
raised by the customers of the company.
CONCLUSION:
As per the above discussion it can be determined that ALDI uses the most advanced
marketing strategy, but there are still scope of improvement, as the strategy still has some
loopholes. It is being analysed that ALDI mostly rents retail shops around the world. This
increases the cost for the company. The increase in cost are directly reflects in the prices of the
product, which ultimately hampering the customer base of the company. Thus, the company
needs to go for ownership instead of rental. The customer service of the company is best in the
industry, but still it can be improved by taking feedback and using different types of models, so
that the company maintain their customers.

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