Marketing Strategy Analysis of ALDI: Inception to Present Day

This report conducts a thorough analysis of ALDI's marketing strategies, examining its approach from its inception in the Australian market. The report delves into various aspects of ALDI's marketing mix, including market segmentation, product offerings, pricing strategies, promotional activities, and distribution channels. It assesses the effectiveness of these strategies in the competitive grocery market, comparing ALDI's approach to those of competitors like Coles and Woolworths. The analysis extends to the company's people, processes, and physical evidence, evaluating customer service, store layout, and brand image. Furthermore, the report identifies potential strategic marketing options for ALDI to enhance its market position, suggesting improvements in product offerings, pricing, advertising, and customer service. The conclusion summarizes the key findings and recommendations for ALDI's future marketing endeavors, emphasizing the importance of adaptability and innovation in a dynamic market environment.

Running head: MARKETING STRATEGY ANALYSIS OF ALDI
MARKETING STRATEGY ANALYSIS OF ALDI
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1MARKETING STRATEGY ANALYSIS OF ALDI
Executive Summary
The purpose of this paper is to analyse the marketing strategies that ALDi has adopted from
the very beginning of its inception in Australia and then identify as well as suggest the
possible effective changes it can make in its marketing strategies to operate efficiently, poses
success through achieving goals in the coming time. Marketing strategy, which generally
includes the overall marketing activities, is essential for effectively running of a certain
business with determining the stability through ensuring the enhanced sales and revenue
generation. After holding the whole study, it can be said that though ALDi is effectively
running as well as posing the competition in the market with its exceptional style of operating
it needs to make certain changes in its marketing strategies for sustaining in steep competition
and leading itself towards the desired position.

2MARKETING STRATEGY ANALYSIS OF ALDI
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Marketing Strategy Analysis of ALDi...................................................................................3
Market Segmentation.........................................................................................................4
Product...............................................................................................................................4
Pricing................................................................................................................................5
Promotion...........................................................................................................................5
Place and Distribution........................................................................................................5
People and Process.............................................................................................................6
Physical Evidence:.............................................................................................................6
Public Relations.................................................................................................................7
Available Strategic Marketing Options..................................................................................7
Conclusion................................................................................................................................10
References................................................................................................................................11

3MARKETING STRATEGY ANALYSIS OF ALDI
Introduction
In this paper the marketing strategies which the ALDi has adopted during its inception
in has been analysed in details and an attempt is made to suggest the effective changes it
should bring in its existing marketing strategies which in turn will ensure the success and
development in the coming time. In the following, section of the paper the marketing
strategies, which ALDi has taken in terms of pricing, product planning as well as developing,
advertising, promoting, placing and many others are considered minutely (Harzing 2002).
Lastly, an attempt is made to find out and suggest some effective transformation it can made
in its existing marketing strategies to establish itself as the leader in the industry or the line of
service. The suggestion is given in regarding the required effective changes through which it
can ensure the success and development in coming time.
Overview of the Company:
ALDi, the abbreviation of Albrecht Discount is the world’s largest privately owned
business (Emsell 2011). ALDi is a chain of discount supermarket stores dealing with the
mostly the grocery items and it is operating with a base in Germany from where it has started
its journey in 1913. Karl and Theo Albrecht formed it. ALDi operates in global supermarket
with more than 9000 employees. It came to existence in Sidney of Australia in 2001 which
operating throughout the nation with more than 400 stores at present scenario (Brandes and
Brandes 2015).
Discussion
Marketing Strategy Analysis of ALDi
ALDi has made a noticeable stride in time of entering to the Australia’s grocery
market. The marketing strategies that ALDi had adopted since its inception is based on its

4MARKETING STRATEGY ANALYSIS OF ALDI
long term vision which states that irrespective of place all should get the scope to access the
indispensable grocery items as well as the mission which is making commitment to provide
the value added quality product in lowest possible cost (Aldi.com.au, 2019). Having a well-
structured corporate strategy is essential for the business in the recent fluctuating market as it
gives the firm with a direction. The marketing strategy of ALDi has enabled itself to grab a
leading position. The important marketing aspect of ALDi is discussed below.
Market Segmentation
ALDi, Australia operates within a highly competitive grocery market store with
strong market leaders such as Coles and Woolworth. ALDi has taken a broader marketing
approach with the aim of capturing a wide range of customers, which will make it able to get
a scale of economy. ALDi structured different products as well as market initiatives for
attracting different segments within a width market. ALDi has made their customer
segmentation in the following way:
Demographic: People with moderate and lower level of income
Geographic: People living in the rural and suburb areas.
Psychographic: Provide the people quality products in lower possible rate.
Behavioural: Customers much concerned about availing the daily necessary grocery items in
lowest possible rate (Osorio,Valdes and Hernandez 2015).
Product
ALDi asserts to make the customer avail their same kind of quality products in most
affordable lower cost in comparison to the competitors. ALDi sources their materials from
some specific suppliers who confirm the quality and packaged as their brand to establish a
control on production process as well as cost. ALDi Australia avoids the production of high

5MARKETING STRATEGY ANALYSIS OF ALDI
priced products with concentrating on inevitable investments they have to make. Thus, ALDi
fulfils its objective of creating the product with quality more than the quantity as well as
ensures the competitive advantage in respect to the competitors (Mortimer 2016).
Pricing
Constructing as well as determining the price is a vital part in the marketing strategy
formation. Generally, there are three kinds of pricing strategies as market penetration pricing,
market skimming pricing and competitive pricing strategy. ALDi has adopted the competitive
pricing strategy, which is primarily based on the pricing parameter of the competitors. ALDi
is charging the lower rate than the competitors when offering the standard quality product
are. This initiative of ALDi enables it to achieve the much of the market share. ALDi also
using the psychological pricing strategy for influencing the decision making power of
customers (Kimpel and Friedrich 2015).
Promotion
Promotion is an important aspect to consider about as it increases the product
awareness within the customers. ALDi uses both above and below line promotion strategies.
ALDi is using the T.V, printed leaflets, newspapers which providing the effective
information about the new discounts, products launching, make comparisons to create
awareness about the product and service quality in respect to others. Thus, ALDi utilizing the
advertising as well as promotional strategies effectively for attracting the customers and
achieve market share.
Place and Distribution
In marketing strategy place play a vital role as it states where and how the products
will be available for the customers as well as the stores. ALDi has kept its product layout
simple and easily accessible for the people considering the cheaper costs for customers. ALDi

6MARKETING STRATEGY ANALYSIS OF ALDI
has the strategy for minimising the waste during the transportation of the goods in the stores
from the suppliers. ALDi tries to procure the products in wide volume from the suppliers and
store them to the warehouses with maintained quality. Apart from all these stores ALDi is
also maintaining the appearance in online sites, which giving the customers with the
opportunity to access the products along with its detailed description. ALDi also uses the
social media platforms such as Twitter, Facebook as well as the direct mailings for promoting
the seasonal and other special offerings (Unser).
People and Process
ALDi has ensured the lower customer service cost in comparison to others through
implementation of efficient layout of the products. ALDi used to assort the products and
divide them in sections, which has eliminated the requirement of the extra human resource to
handle as well as assist the customers in floor. ALDi also keeps limited amount of products
with high quality as well as moderately priced which prevents the customers from being
confused. All these processes ensures the reduced time for selection and purchasing. It also
has made the people sit at the billing counters which enabled them to quicker in scanning the
products as well as prepare the bills which in turn results in quicker sale. The organization
provides the higher salary than the competitors, which proved effective to attract as well as
retaining the talent. The newly employed people are provided with the training on job, which
leads towards fruitful service delivery in minimum cost. This training process also provides
the employees with the confidence as well as satisfaction regarding their expected
performance delivery which in turn ensures the improved customer satisfaction level (Natalia
et al. 2016).
Physical Evidence:
ALDi is well known within the consumers worldwide with its global presence as well
as the simple efficient procedure of business conduct with addition of standardization, lowest

7MARKETING STRATEGY ANALYSIS OF ALDI
pricing strategies and the huge stock of quality product in its storage coming from both the
home as well as other renowned brands available within the market. It is one and only store
which is operating with the same pricing structure for the grocery items all over the world.
Public Relations
ALDi uses their own coco beans in the products produced with chocolates like,
Choceur are sourced in ethical ways. These also maintain the standards required for
sustainable farming. It also ensures the meeting of all the ethical as well as environmental
laws and regulations. It donates the unused foods to the food organizations such as foodbank,
Ozarvest. It also determines the safe and healthy work environment without including any
child labour along with ensured environmental protection. ALDi has introduced the eco-
friendly bags as well as taken initiative to make the people aware about the value of water
and tried to ensure the environmental wellness. Thus, ALDi has created a positive image,
strong bond with the customers and achieved their loyalty (Grimmer 2017).
Available Strategic Marketing Options
1. Introduction of Quality Products: The aim of ALDi is to provide high quality products
in lowest possible cost. To ensure the growth ALDi must include the more exclusive
brands and offer more fresh foods and fruits.
2. Focus on Manufacturing and Expansion: ALDi should focus on the manufacturing of
its own products through making the association with existing as well as leading
manufacturing companies for increased production. Thus, it can attain the competitive
advantage.
3. Expand the Product Variety: ALDi has adopted the cost effective strategy of offering
the products, which are highly in demand instead of a wide variety. It has shortened
its product range or inventory. Instead of concentrating on these demanding products

8MARKETING STRATEGY ANALYSIS OF ALDI
only it should increase the options as there are the different people with different
preference. Through adoption of this strategy, it can increase its customer base (Syam
and Bhatnagar 2015).
4. Improved Pricing Strategy: ALDi should not only follow or stuck to the lower pricing
strategy rather it should include different tactics for different products. It must
incorporate a value proposition strategy, which will make it able to determine more
value for the quality.
5. Long-term value: ALDi ensure the long-term revenue generation rather than the short-
term profit accumulation through concentrating on the value proposition.
6. Ensure Sustainability: ALDi must concentrate on introducing more eco-friendly
products as people are gradually getting concerned about the welfare of the
environment.
7. Accept the Cultural Differences: ALDi can go for embracing the cultural
discrepancies through implementing the wide range of products, which suits with the
preferences of people from different customs. This will enable the organization attract
more customer with different base which in turn increase the market share as well as
improved brand image.
8. Improved Style of Advertisement: ALDi must concentrate on implementing the
innovative advertising styles and strategies. ALDi generally uses are based on
creating the humour which enables to attract the customer’s and bind them
emotionally with the brand. ALDi must focus on such advertising strategies and
explore the scope of digital marketing as well as utilizing the options of advertising
through more media coverage. It should concentrate on utilization of both above and
below line of promotional strategies in effective way.

9MARKETING STRATEGY ANALYSIS OF ALDI
9. Enhanced Service: ALDi has the opportunity to provide an enhanced value added
service to the customers through ensuring the more advanced facilities for the
customers such as home delivery of the products freely. This kind of service delivery
can make the organization able to attract the customers in the worldwide.
10. Improved Software System: The organization should focus on the implementation of
the more improved as well as enhanced system up gradation and introduce enhanced
features such as reducing the check-out waiting line, include the lights as well as other
decoration within the stores. It should implement the system, which will enable the
customers to see the distinction of price, which it used to show on newspaper and
other advertisement within the receipt copy the customers generally receive after the
completion of shopping for informing the customers individually the amount they
have saved in the total transaction with ALDi.
11. Formatting the Store: ALDi must change and improve their store format through
innovate the overall structure to create scope and incorporate customers within their
supermarket. It must widen the space of the stores to incorporate the variety of
products within, must focus on improving the inner layout structures, provide special
lights to make it look gracious and increase the internal space within the stores as well
as the external which will provide the sufficient space for parking car, feel
comfortable and stay longer. It must locate its stores in the place where most of the
people generally used to come and could easily see it like on the main road, market
places (Chen and Saghaian 2017).
12. Better Promotional Tactics: ALDi using around 20 second advertising campaign on
T.V for promoting their product as well as brand with concentrating on acquiring the
less cost for it but to be stable and sustain in the extreme competitive market ALDi
should focus on the developed promotional campaigns. It should increase the time of

10MARKETING STRATEGY ANALYSIS OF ALDI
advertisement, should access more channels taking on consideration about the number
of people approaching in certain time.
13. Apart from concentrating only on the grocery shoppers and privately owned brands it
should concentrate on the other retail chains such as petrol, bottling, hotels and stores
of hardware which have done by the two big competitors.
Conclusion
Thus from the above discussion it can be concluded that though ALDi is placing itself
in the supermarket operating worldwide, with introducing itself differently in the market than
the leaders of the market, Woolworth and Coles. However, the ALDi posing some threat for
both the giant market leaders. Still there are some limitations or impediments towards which
it should derive its attention as well as the effort for excelling in the business and the market
position in comparison to others. ALDi should not only go for bring the changes which are
different from the competitors rather it should focus on learning the strategies adopted by
them for operating as well as becoming the leaders and following or implementing those
things more efficiently within their procedures. Thus, being consistent, simple as well as
responsible in its approach with implementing the above-mentioned changes within the
marketing strategies ALDi will be able to confront the competition, sustain and excel within
the industry. Because the efficient as well as pragmatic marketing strategies are responsible
to enable the business for generation of sales and in turn the increased market share
achievement. Since the ALDi must concentrate on enhancing its product as well as service
quality along with the improved market strategies for establishing itself to its desired level in
the line.

11MARKETING STRATEGY ANALYSIS OF ALDI
References
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https://www.aldi.com.au/en/about-aldi/ [Accessed 13 Sep. 2019].
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GmbH.
Chen, B. and Saghaian, S., 2017. Does Consumers’ Preference for Organic Foods Affect
Their Store Format Choices? (No. 1377-2016-109930).
Emsell, P., 2011. Aldi–“The No Frills Retailer”.
Grimmer, L., 2017. Is it so hard to say sorry? Revisiting image restoration theory in the
context of Australian supermarkets. Asia Pacific Public Relations Journal, 18, pp.17-32.
Harzing, A.W., 2002. Acquisitions versus greenfield investments: International strategy and
management of entry modes. Strategic management journal, 23(3), pp.211-227.
Kimpel, M. and Friedrich, C., 2015. The right pricing strategy for offline retailers when
expanding into the online sales channel. Journal of Business and Retail Management
Research, 9(2).
Mortimer, G., 2016. ALDI gives suppliers, as well as shoppers, greater choice: Retail
expert. Journal of the Home Economics Institute of Australia, 23(2), p.39.
Natalia, C., Aldi, B.E., Kristiana, S.P.D. and Silalahi, A., 2016. Mapping Actors in the
Modeling of Logistics Sea Shipping Network Structures. The International Institute for
Science, Technology and Education (IISTE), 6(1), pp.77-88.