Marketing Principles and Practices: A Comprehensive LIDL Analysis

This report provides a comprehensive analysis of LIDL's marketing principles and practices. It begins with an introduction to marketing and LIDL's business objectives and vision. The report then explores the external factors influencing LIDL, using PESTLE analysis, and examines how marketing is utilized to achieve business goals. Key elements of the marketing process, including situational analysis, marketing objectives, strategy development, and implementation, are discussed. The role of marketing in a not-for-profit context is also considered. The report further delves into LIDL's market positioning, comparing it with competitors, and analyzes its market segments and segmentation benefits. It examines product distribution, pricing strategies, and promotional strategies employed by LIDL, as well as the impact of current technology on marketing analysis. The report concludes with a proposal for a new ready meals range, including market research methods, strategic aims, target market determination, environmental factor analysis, and a proposed marketing mix. Overall, the report offers a detailed overview of LIDL's marketing activities and strategic approach.

MARKETING PRINCIPLES
AND PRACTICE

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
Task 1 ..............................................................................................................................................1
P1.1 vision and objective of the company..................................................................................1
P1.2 External factors influencing marketing in LIDL ..............................................................2
P1.3 how marketing is used to achieve business objectives ......................................................3
P1.4 explanation of the elements of the marketing process in LIDL..........................................3
P1.5 role of marketing in a not for-profit business.....................................................................4
Task 2...............................................................................................................................................4
P2.1 An analysis of the positioning of LIDL in market and in comparison with other
supermarket chains......................................................................................................................4
P2.2 A review of LIDL main market segments and an explanation of how they have been
segmented....................................................................................................................................5
P2.3 Evaluation of the benefits to LIDL of segmenting markets ...............................................5
P2.4 Explanation of how products are distributed at LIDL........................................................6
P2.5 Analysis of pricing strategies at LIDL...............................................................................6
P2.6 Analysis of promotional strategy at LIDL..........................................................................6
P2.7 How current technology impact on marketing analysis......................................................7
Task 3...............................................................................................................................................7
P3.1 Analyse the different methods of researching the market for a new range of ready meals.
.....................................................................................................................................................7
P3.2 Propose strategic aims and objectives for the plan. ..........................................................8
P3.3 Determine the target markets for marketing activity and reasons for choice.....................8
P3.4 Analyze macro and micro environmental factors affecting the planning...........................8
P3.5 Propose a marketing mix for the ready meals.....................................................................8
P3.6 what factors relevant to the implantation of the plan have been considered .....................8
CONCLUSION................................................................................................................................9

....................................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing is a critical function for most of the profit and non- profit organisation and its
activities are planned according to the requirement of the businesses. This is the broader process
that includes research, product design, development, promotion and customer services (Aaker,
2011). Therefore, every business requires to establish some marketing principles to run their
operational activities. LIDL is a large retailing industry based in Neckarsulm, German global
discount supermarket chain. They provide household services and target middle class family.
Therefore, it is a customer oriented organisation and mainly focus of need of consumer. In this
report, LIDL'S vision, business objective and external factors influencing marketing will be
discussed.
This report will highlight how marketing is used to achieve business objective and elements of
marketing process. Study will highlight the marketing strategies adopted by LIDL.
TASK 1
Marketing can be defined as process of carry out all the business activities which aim at
achieving its goals and objectives. This function helps the organisation in every step of its
operation and explore most important areas of marketing like consumer marketing, includes
situation analysis and development of objectives, strategies etc. (Barrett and Weinstein, 2015).
LIDL uses marketing function in every stages and bring innovation in their plan according to the
market situations.
P1.1 vision and objective of the company.
Vision
LIDL company is clear about their vision of organisation mainly aim at rising the living
standard of customers and bring improvement in the quality of goods. Therefore, they provide
product at market leading value. Whilst ensures that their customers are satisfied with goods and
services.
Objectives
 To deliver outstanding goods and services so that customers can be satisfied.
 To provide market leading quality by constantly bringing innovation and optimising
efficient process, driven by people, technology.

 To achieve long term success by investing in the recruitment, training and development
of their people.
P1.2 External factors influencing marketing in LIDL
LIDL is affected by external factors that influences marketing activities of their
organisation and those are not control able by the organisation and business entity has to face the
challenges. But can lower the chances of risk by PESTLE analysis.
 Political factors: The stability in political environment is very important for every
organisation and government policies have great as well as direct impact on industry.
Government policies has influence the market and employees of the organisation in many
ways. China has both formal and informal rules, which impact the market of china
(Muhamad, Melewar and Alwi, 2012). Over the past few year's government is focusing
on the development of e-commerce sector which encourage online business of LIDL.
 Economic factors: This factor impact business by increasing economic condition of the
country can help in growth of firm as well. Over the past five years’ china is
experiencing high GDP growth rate in their country. This will help LIDL to grow well in
Chinese market and employees will be paid higher wages or salaries. Living standards of
people intend to increase and purchasing power of customers also increases. This adds
more value to the society and lead to economic growth of the countries as well. Economic
factors have direct as well as significant impact on the financial performance of an
organisation.
 Social factors: LIDL has to adopt Chinese social and cultural aspect due to constantly
changing environment condition. This industry has to focus on culture and tradition of
their county so that profitability and productivity of the firm can be sustained. China is
having collectivism culture so sometimes it becomes difficult to deal with it. Those
people often shop online.
 Technological factors: This factor play a very importance role in improving the quality
of products as well as services offered by company. An organisation is required to adopt
the latest technology which will help them to grow faster and provide more opportunity
to explore new market for their customer. China is the country which deal in all latest
technologies in the world. Therefore, provides industry an opportunity to grow faster.

 Legal factors: To influence Chinese market it’s important for LIDL to follow law and
legislature of that country. By this way they can build trust of government as well of
customers.
 Environmental factors: while entering the Chinese market the LIDL has to pay
attention to environmental factors of that country as well. Country is suffering from water
and pollution (Pels, 2015). Therefore, government of china is work on it. This impact
market of the country all so.
P1.3 how marketing is used to achieve business objectives
Market is not only about selling goods and services to customers, it the art of selling
product to the consumer and determining how much they are willing to buy product. Marketing
helps the organisation to promote their product through various element like advertisement and
by doing survey in the market about the needs of customers. LIDL focuses on the requirement of
their consumer and bring innovation in business operations according to needs and wants of
customers (Salavati and Karami, 2015). They can achieve the objective of the organisation by
satisfying their customers and by coming up with new idea about the product.
Company promotes their new product through advertisement so that customer can be
aware about it. By this way they can increase the sale of product and organisation can earn more
profit. Therefore, marketing helps the organisation to know the taste and preference of the
customers. Then the organisation bring improvement in the product according to it and achieve
their objective.
P1.4Explanation about the elements of the marketing process in LIDL
The marketing process mean analysing market opportunity, selecting target markets,
developing the marketing mix and managing all the promotional activities Customers are their
main target. The steps involve are as following:
Situational analysis: LIDL organisation first analysis the marketing condition of their product
and then make plan according to it. They use various analysis like SWOT, PESTEL and porter's
five force model. Therefore, strategies formed by manager is completely based on the marketing
condition of the market and enables organisation to understand the factors which can influence
its business operations in the future.

Marketing objectives: This is the starting point of the marketing plan and LIDL objectives and
goal are clear to them (Sethuraman, Tellis and Briesch, 2011). They work in the organisation
according to their vision and mission. This step show how company can get benefit from
marketing, training the employees and bring improvement in their product, services.
Marketing strategy: LIDL makes strategies to achieve their long term objectives and to bring
improvement in marketing objectives. This helps the organisation to see its future demand and
make changes according to their customers. Therefore, company build target market and plan
their strategy which can help the organisation. This step is required in every aspect of the
business activity.
Implementation and control: This is the last step of marketing process where actual
performance is compared with standard. Therefore, the difference between both performance is
measured and final result is find. According to the requirement improvement is made in the plan
and then they are implied. This step provides final result of the full processes.
P1.5 role of marketing in a not for-profit business
Marketing plays a very important role in non-profit organisation as well it helps company to
make strategies and plan of action. LIDL also contribute some part from their profit to the
society and work for social cause as well. Customer get more attracted to the firm because
company is working for betterment of community. (Tadajewski, 2012). This build strong relation
between organisation and consumers. Public relation are large part of marketing and local press
should know the story of the non-profit. Press should be aware of new programs that can reach
the general people. Non-profit organisation can take help of newspapers to share their stories,
provide picture and advertise fundraising events to help society. Marketing activity by non-profit
includes large and small scale events, print material and large network. Therefore, marketing is
very effective way of spreading the word about goals of the organisation.
TASK 2
P2.1 An analysis of the positioning of LIDL in market and in comparison with other supermarket
chains.
LIDL is focusing more on improving quality of its product and services in the marketplace.
Therefore, this can lead to convince more consumers to shop in one of its stores more of the
time. Their grocery market share has been decline due to rise of product prices by ALDI and

LIDL has to bring their price down to win their customers back. LIDL has market share of 5.4%
they have developed number of Lidl stores to increases their customers. Tesco holds market
share up-to 27.6% while Sainsbury's hold 15.6% only (Wirtz, Tuzovic and Kuppelwieser, 2014).
Those firms position is better than LIDL and they need to increase their market share to compete
against them. Company is working on increasing brand loyalty and to provide better goods to
customers. They are working to improve their online shopping sites that can lead them at some
better position in the marketplace. LIDL's position is not so good in market as it has to face
tough competition.
P2.2 A review of LIDL main market segments and an explanation of how they have been
segmented
LIDL focuses on demographic segmentation of marketing is done on the basic of age,
religion, gender, family size, income and education. They mainly target family group and adult
because this organisation provides more goods at discount. Middle-class people are more
attracted to this market as they can buy more thing at very cheap rate. Therefore, it is affordable
by customers. LIDL keeps on growing in different areas like cities, counties, regions. This
organisation is increasing its stores in UK and in many difference regions of world. Also, are
introducing new chains in different areas of their country to increases their market and to attract
customers from every section of society. This help the organisation to earn more profit from all
over the world. They have open five new stores in London and are growing their business,
customers are getting more aware about its products and services. LIDL has hired 2500 people to
expand their supermarket.
P2.3 Evaluate the benefits of segmenting markets to LIDL
LIDL has expanded their business all over the world in different regions and countries by
this way customer are more aware about their goods and services. Therefore, increase the growth
of the organisation in difference segments like demographic areas and geographic segmentation
this give benefit to organisation in context of knowing customers of different country. Therefore,
help the company to bring innovation and improvement in their products. Segmenting benefits
the customers by allowing firm to fulfil needs and wants of their customers. (Wirtz, Tuzovic and
Kuppelwieser, 2014). They offer a limited range of own branded product at extremely

competitive price which give them benefit in every part of the country. They get more
knowledge about their competitive market. Also, come to known about consumer behaviour in
the market. This can help them to get competitive advantages over its competitors because it
provides goods and services at the lowest price. By segmentation company get to know about
their target group and customers. This will help them to focus on their regular consumer.
P2.4 Explanation of how products are distributed at LIDL
Distribution is one of the four element of the marketing mix and it helps in the process of
making a product or services for consumer or business user Products or services can be
distributed directly by the producer or service provider or by using indirect channels of
distributions. LIDL has set up a well-organised distribution channel. Therefore, company has
eliminated the concept of middleman and business entity directly deal with local market. This
organisation has set-up regional centres to obtain and distribute its product and services to outlets
as well. Also, they have set-up their distribution centres in Mebane at North Carolina and to
make them distribute channels strong there are opening more outlets. LIDL has well-groomed
and trained their employees to serve its customers with friendly attitude.
P2.5 Analysis of pricing strategies of LIDL
Pricing strategies are targeted at defined customers and against competitors to compete in
the market against its rival firms. LIDL has a specified pricing strategy of no-frills and zero-
waste, they do this by keeping minimum required staff to cut its extra costs. The organisation
provides food items at very low price because they mainly target middle-class family those who
are more price sensitive. Also, aim at offering value for money, products with better quality to
their customers. LIDL has decided to adopt competitive pricing strategy; business entity offer
price to the customer which is less than that of the price which their competitors offer to its
consumer. Therefore, the organisation has opened new outlets in order to expand their business
activity and it has decided to use penetrating price policy. This helps company to attract more
customers by charging low price for similar product (Chen and et.al., 2015). The result of pricing
strategies is that company is able to offer reasonable and affordable price to their customers.

P2.6 Analysis of promotional strategy at LIDL
Promotion is one of the element of marketing mix and this make public aware about the
product and influence them to purchase it. The tools of promotion strategy are advertisement,
digital marketing, sales promotions and public relations. LIDL has adopted many promotional
strategies like the company has launched advert campaigns and use visual media such as
television, radio and newspapers etc. to promote their goods and services. This organisation
believes in digital marketing and update their regular customers about products or services by
giving information about the latest offers. They promote their product online through their web
sites and give information about the new product to the customers. This organisation has
launched Android app so that customers can explore all the option. LIDL has maintained a
service-provider facility for their customers so that company can get feedback from their
consumers and can bring improvement according to it.
P2.7 How current technology impact on marketing analysis.
In today's world technology plays a very importance role in every industry and provides
border market for customers. LIDL is doing well in online sector and is promoting their product
through online marketing (Aaker, 2011). This organisation uses the latest technology to do
online business and provides all facility to their customers. This will lead to growth in the
organisation as well and customer will trust more to their goods and service. Marketing is
growing at faster rate as it has become very easy for customers to do online shopping and get
goods at their door step on one click. Due to advance technology work of organisation and
customers has become easier.
TASK 3
P3.1 Analyse the different methods of researching the market for launching a new range of
ready meals.
The different methods of market research for a new launching of ready meals are:
 Determine the marketing strategy by conducting survey of the market: as it helps in
knowing the taste, preference of the customers. This will enable company to introduce
their new range of ready meals.
 An organisation can introduce new product by promoting them through sources of media
and by providing information to their regular customers about the new product.

 By making a product life-cycle that helps the product to grow faster in market and
customers are ready to by ready meals. (Chen and et.al., 2015). They can help
organisation to increases its profitability in the market.
 The organisation before introducing product in the market should test the goods and
check its quality.
 They should select the target group before introducing the product and its services so that
can attract them with better quality.
P3.2 Propose strategic aims and objectives for the plan.
The aim and objective of an organisation is to provide the best quality meals to customers
and fulfil their requirement of tasty food. Company goal is to satisfy the needs and wants of
their customers. Therefore, aim at earning more profit by increasing their market value and
providing good quality products at lowest rate. By this way organisation can build their brand
name in the market and can become more popular brand. This will fulfil the need of organisation
as well of the customers.
P3.3 Determine the target markets for marketing activity and reasons for choice
They mainly target middle-class and high-class people and provide food meals at price
less than their competitors. Therefore, it attracts more customers toward their product and
services. Middle-class people get the product according to their requirement and within their
budget, so they prefer product more than any other similar goods. Therefore, company target this
class of people and give them attractive offers as well.
P3.4 Analysis of macro and micro environmental factors affecting the planning
There are internal and external factors which affect planning of the product. Internal
factors are controllable by the organisation and company get their solution easily. On the
other hand, external factors are uncontrollable and they have great impact on the firm.
Planning of the organisation is affected by suppliers, customers and competition, all these
are internal factors (Muhamad, Melewar and Alwi, 2012). External factors like
demographic, economic, technological those all affect the planning of the organisation.

P3.5 Propose a marketing mix for the ready meals
Marketing mix involved elements like pricing, place, promotion and product that helps the
ready meals to make their product more popular amongst the customers. This helps the
organisation to launch their product in the market and bring improvement in their goods and
services. The elements of marking mix are:
Promotion mix: This is the first element of marketing mix (Martin, 2014.). It helps the
organisation to promote its goods and services through various element like print media, social
media, advertisement etc.
Place mix: This tool of marketing mix helps to identify different channels of distribute and how
those channels can have improved by the organisation.
Price mix: This is the most important element of marketing mix in this two prices are
comparison with each other and low of all from their competitor.
Product mix: This is the last element of marketing mix an organisation always tries to bring
innovation and create new product which is better than their competitors
P3.6 What factors relevant to the implantation of the plan have been considered
Implementation of plan involve checking the difference between actual performance and
standard actions. The factors which are considered includes background, lesson, applicability of
the product and references of it. In order to make the proper planning it is essential to determine
the all the action so that firm can perform its business function appropriately. The appropriate
plan can be framed if managers and employees working in the enterprise participates willingly.
In addition to this, effectiveness and efficiency is one of the key source to make the plan better.
CONCLUSION
Hereby, it can be concluded that marketing is one of beneficial aspect in terms to
promoting goods and services to customers. In this present report the following activities has
been covered these are marketing mix, segmentation, principles, positioning and various
strategies with help of which business function can run successfully in market. Moreover, firm is
taking various initiatives in order to make proper planning for products and innovative steps is
need to be taken so that profitability and productivity can be maximised.