Marketing Report: Analyzing ALDI's Expansion Strategy in New Zealand

This report provides a comprehensive analysis of ALDI's potential marketing strategy for its expansion into New Zealand. It begins with an executive summary and an introduction outlining the company's background, including its history, vision, mission, values, and product portfolio. The report then delves into competitor analysis, comparing ALDI with key players like Countdown and New World, assessing their strengths, weaknesses, product features, and promotional strategies. A detailed SWOT analysis is conducted to identify ALDI's internal strengths and weaknesses, as well as external opportunities and threats. The report further examines ALDI's marketing strategies, including segmentation, targeting, and positioning, along with a thorough examination of the 4Ps marketing mix (product, price, place, and promotion). Finally, the report suggests promotional strategies, including social media campaigns, billboard advertisements, and persuasive techniques, to ensure a successful market entry in New Zealand. The report concludes with a summary of findings and a list of references.

Running head: ALDI NEW ZEALAND
ALDI NEW ZEALAND
Name of the Student
Name of the University
Author Note

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Executive Summary
The marketing is considered to be an essential part of the organization and for this purpose
in order to ensure long term success in the business environment, it becomes essentially
important to form a good promotional strategy. The particular report throws light on the
overall strategy as adopted by the Aldi supermarkets. The report follows a structured format
whereby the brief introduction of the company has been followed by the analysis of the
company`s values. This is followed by the competitor analysis and the SWOT Analysis of the
company. The marketing strategies of the company has been examined and the promotional
strategies of the firm have been recommended to ensure considerable success for the firm`s
expansion plan in New Zealand.

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Table of Contents
Introduction............................................................................................................................ 3
Task1..................................................................................................................................... 3
History of the company.......................................................................................................3
Vision and mission.............................................................................................................. 3
Values and Beliefs.............................................................................................................. 4
Product portfolio offered......................................................................................................4
Task 2.................................................................................................................................... 6
Task 3.................................................................................................................................... 7
Task 4.................................................................................................................................... 9
Segmentation Strategy.......................................................................................................9
Targeting strategy.............................................................................................................10
Positioning strategy.......................................................................................................... 10
Task 5.................................................................................................................................. 10
Product............................................................................................................................. 10
Price................................................................................................................................. 11
Place................................................................................................................................. 11
Promotion......................................................................................................................... 12
Task 6.................................................................................................................................. 14
Social media strategy........................................................................................................14
General billboard advertisement.......................................................................................15
Poster............................................................................................................................... 15
Persuasive Techniques.....................................................................................................15
Task 7.................................................................................................................................. 16
Conclusion........................................................................................................................... 17
References and Bibliography...............................................................................................17

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Introduction
Globalization has brought about an initiation of a large number of marketing
strategies which can be used by the organizations in order to expand their operations and in
order to ensure that the different firms are successfully able to increase their market
positioning as present in the industry. The case of the ALDI supermarkets has come off as a
typical case of how proper planning and differentiation can make about a huge difference in
the overall functioning of the firm (Chaffey & Ellis-Chadwick, 2012). The company expanded
its operations in Australia and even though the market share was in the form of a duopoly by
Coles and Woolworths, ALDI maintained its ground and was able to find success in the
country. Based on this, the main aim of the report is to highlight the suggested marketing
strategy which can be adopted by ALDI in case it plans to explain its operations to New
Zealand. The report follows a simple structure whereby each section is divided into different
tasks and each task analyses the current operations of ALDI by the means of understanding
the current operations of ALDI in Australia, analyzing the competitors as present,
understanding the firm`s strength and weaknesses and along with this devising the current
strategy for its expansion plan in New Zealand.
Task1
History of the company
The company started its operations in the year 1946 after Karl and Theo Albrecht
took the control over their mother`s store in Essen, Germany. Initially the store begin its
operations as a provincial store but build the store up to make it one of the largest retailers
as present around the globe (Aldi.com , 2018). The ALDI has two divisions Aldi Nord which
had shops in Germany and Aldi Sud which is based in the south and in the United Kingdom.
The name of the company came as a combination of the Albrecht and discount and the main
reason why the company became increasingly popular with its `everyday low pricing ` policy
which allows the brand to ensure that they are successfully able to account for a larger
market share when compared to that of its competitors. The company is based on the
mantra that it is relentlessly simple.
Vision and mission
Vision statement
Our vision is to enable Australian shoppers to live richer lives for less. All people,
wherever they live should have the opportunity to buy everyday groceries of the highest
quality at the lowest possible price. To put it simply, we offer our customers a smarter way to
shop. ` (Aldi.com , 2018).

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Mission of ALDI
The mission statement of Aldi seeks to ensure that the company is successfully able
to ensure that they are being able to provide high quality products to the different consumers
and that they are being able to meet the needs of the different customers consistently
thereby ensuring overall success of the firm at large.
Values and Beliefs
The values as well as beliefs based on which Aldi functions have been elaborated on
as follows:
1. Simplicity: The Company believes that it needs to center its operations on simplicity
which will then ensure that the firm is successfully able to gain a larger market share.
2. Responsibility: The operations need to be based around responsibility as Aldi
believes that it is responsible to the different stakeholders as present.
3. Reliability: It ensures that the suppliers as well as the different customers have a
reliable relationship with the firm (Chaffey & Ellis-Chadwick, 2012).
Product portfolio offered
The different products as offered by Aldi comprise of the following:
1. Beauty products
2. Vegetables and fruits
3. Household cleaning supplies
4. Baby products
5. Staple items
6. Electronics
7. Refrigerated items

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Figures 1,2 and 3: The different offers at Aldi stores
(Source: Aldi.com ,2018).

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Task 2
As ALDI is planning to expand its operations in New Zealand, the company would be
required to ensure that it is successfully able to measure the level of competition which is
present in the particular industry as it would be required to form certain strategies and other
related tactics to combat against the competition. In the past, especially in the case of
Australia, Aldi has been successfully able to combat against the supermarket giants like
Woolworths and Aldi and with respect to this it can be stated that Aldi does possess the
capability to expand its operations and be successful (Aldi.com , 2018). Hence, the particular
table will look out to compare and contrast the different operations as offered by the different
supermarket firms as present in New Zealand along with an analysis of their Strengths,
weaknesses, features of the product and the promotion strategy.
Competitor Strengths Weaknesses Product
features and
benefits
Promotion and
strategy
Countdown
Countdown is a
leading
supermarket
brand as
present and
provides good
quality as well
affordable
products
The brand is
leading in the
New Zealand
market.
It has its own
line of products
as present
The company
faces various
employee
problems.
The features
and benefits of
the products
offered are as
follows:
They belong to
the home brand.
They are healthy
and safe
They are
sourced from the
local suppliers.
The different
promotional
strategies as
used by the
company are as
follows:
It uses an
extensive pricing
strategy to deal
with the
competition.
New World
The new world
supermarket
chain is a full
service
supermarket
chain which
sells the
products in
The brand is
very popular in
New Zealand
It has a large
product offering
It offers
affordable
The company
has been faced
by employee
issues.
Moreover, the
company also
faces
competition from
The products
and benefits are
as follows:
The products
are of the
company`s own
label
The company
makes use of a
differentiation
strategy which
means by
following the
wide product
based the
company aims

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New Zealand pricing (Kotabe
& Helsen,
2014).
various online
sellers.
Various other
products are
imported as well.
to ensure long
term market
success
Task 3
The SWOT Analysis serves as a useful tool which goes a long way in ensuring that
the business is able to understand the different Strengths, weaknesses, Opportunities and
Threats which are possessed by it. In this manner, the business will be successfully able to
understand the areas where the business would be required to improve its operations and
what strategies it can adopt in the future (Aldi.us .2018). The SWOT Analysis of the Aldi
supermarket in Australia has been done as follows:
Strengths
The strengths can be stated to be the internal capabilities as possessed by the
business which help in ensuring that the business is able to successfully achieve its
objectives at large. The different strengths as possessed by the Aldi Supermarkets in
Australia can be stated to be as follows:
1. Pricing: the pricing strategy as followed by Aldi can be stated to be very suitable for
the different consumers as the company allows the different customers a great extent
of discounts which cuts down considerably on their various expenses and ensures
that the firm is successfully able to win over the customers.
2. High level of customer support: The customer support as provided to the shoppers is
quite helpful in nature as it is successfully able to allow the different consumers to
find their products and communicate with them effectively through the online website
which further strengthens their relationship with the firm (Aldi.us ,2018).
3. Considerable product mix: The product mix which is offered by the firm is very
attractive as the company not only provides in house labels which are of the best
price but ensures that I is able to provide the best quality of the products as well. In
this manner, Aldi in Australia has been able to build a good base for itself.
Weaknesses
A weakness can be defined as an internal inability of the firm which limits the
different operations of the business and along with this hinders its operations considerable.
The different short comings of the company as present are as follows:

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1. Low employee margins: The number of employees employed in each store is
considerable lower. However, it needs to be noted that although this assists in saving
the costs of the firm, it may portray itself as a problem in the scenarios where there is
a sale and the firm is unable to manage the footfall.
2. Poor retention of higher income group consumers: As the organization makes limited
offerings to the different consumers and in addition to this, it offers well of a limited
pricing range as well, the firm is unable to ensure all the good quality products these
consumers would need.
3. Poor employee satisfaction: The employee satisfaction rate of the store is
considerably very poor as the employees feel burdened by the pressure which is
placed on them.
Opportunities
The opportunities may be stated to the presence of certain external factors which
may be useful for the firm and help them to use it to its advantage. The different
opportunities as available to the firm can be stated to be as follows:
1. Preference of the customers: The preference of the consumers have been changing
and recently, even Aldi has been successfully able to bring about a new line of
products which makes it possible for the firm to engage in relations with different
consumers.
2. Online presence: The Company can make its presence on social media visible to one
another and in lieu of this, it becomes easier for the firm to ensure successful
operations.
3. Expansion to New Zealand: The Company can seek the operations and expand its
branches in New Zealand as well.
Threats
The threats can be stated to be the presence of certain factors as present in the
external environment of the business which may then tamper the overall growth of the
company at large. The different strengths as available to the company can be stated as
follows:
1. Competition as present: There are a large number of competitors as present for the
firm. These competitors are companies like New World and Primark in New Zealand
whereas the competitors as present in Australia are Woolworths and Coles.

9ALDI NEW ZEALAND
2. Changing technology: The technology has been changing considerably and the
different companies as present prefer to serve the different consumers using the
online domain.
3. Changing consumer preference: The consumer preference may change for the
negative as well and the consumers may concentrate more on quality rather than on
the pricing offered.
Task 4
Segmentation Strategy
The segmentation strategy can be stated to be a crucial strategy which is required to be
adopted by the organization and goes a long way by assisting the firm to decide upon the
selected target market the firm wants to serve. The segmentation of any organization is done
by making use of various segments as available to the firm at large. The different geographic
segments which are available are as follows:
 Geographic segmentation: Through this segmentation base the firm usually divides
its target market based on the nations as present, regions in the market, the different
countries, the population density and other related factors. Aldi uses these factors
and segments units Geographic target market by making use of the countries and the
population density factors which helps it to ensure success in the long run (Chernev,
2018).
 Demographic segmentation: The demographic segmentation is the segmentation
which is down with respect to factors like the age of an individual, income, gender,
size of the family and other related aspects (Foxall, 2014). In case of differentiating
the market with respect to the demographic factors, Aldi makes use of the income
size and family size as well. The market generally targets the lower and medium
segment of the market and offers large sizes of the product which portrays that it is
generally targeting the different families as present.
 Psychographic segmentation: The psychographic segmentation generally uses the
different factors of social class, the lifestyle of the individual and the personality
characteristics (Foxall, 2014). The ALDI supermarket targets its customers by
making use of the factors like their social class. The consumers on the medium and
the lower segment of the social class generally prefer high discounts as well as offers
which then makes it easier for the firm to approach them.
 Behavioral segmentation: In the behavioral segmentation, the different organizations
make use of the factors like consumer knowledge, loyalty, attitudes as well as factors
like responses to a product in order to choose its target market. In this aspect it can
be stated that Aldi makes use of the factors like attitude towards the goods

10ALDI NEW ZEALAND
purchased, their knowledge based upon the quality and their loyalty towards the firm
as a deciding factor.
Targeting strategy
The targeting strategy helps a firm in deciding upon the kind of audience which they
want to attract and the different factors based on which the targeting decision has been
made at large. According to Sashittal and Wilemon (1996), the targeting strategy which is
adopted by the Aldi is the undifferentiated targeting strategy. Under this undifferentiated
marketing strategy, the firm may not strongly differentiate between the different customers
with respect to the characteristics they possess. Moreover, the cost of developing the
different marketing mix may add up to the costs of Aldi which they avoid and develop a
single marketing mix for the entire firm as present. There does not exist major segmentation.
Hence, it can be stated that Aldi adopts an undifferentiated targeting strategy as it views the
market with few visible differences at large.
Positioning strategy
The positioning strategy goes a long way in assisting the company to create a
separate position as present in the minds of the consumers for the overall wellbeing of the
company. In the given scenario it can be stated that, Aldi aims to create the following
positioning for itself in the target market.
Aldi offers good quality in house label products at discounted prices.
This means that Aldi wants to differentiate itself from the competitors like Woolworths
and the Coles on the basis of the quality of the products as well as the prices which are
offered to them at large.
Task 5
In the previous sections, the overall strategy of Aldi was discussed based on its
selection of the target market and other related factors. However, in the given section, the
4Ps of marketing of the firm will be discussed which will help in understanding the offerings
as made by the brand (Hamzah & Sutanto, 2016). The four different elements of the
marketing mix of Aldi can be stated to be as follows:
Product
The product offerings which the firm offers are goods like the follows:
1. Beauty products
2. Vegetables and fruits

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3. Household cleaning supplies
4. Baby products
5. Staple items
6. Electronics
7. Refrigerated items
Using this offering the firm aims to ensure that it is successfully able to meet all the
needs of the different customers and ensure that it is successfully able to make a good
positioning for itself in the selected target market. The three levels of the product are as
follows:
1. Core product: The customers are actually seeking to buy the grocery items and other
goods which are available with the supermarket brand at a cheap pricing policy.
2. Actual product: The actual product s high quality goods being offered like eatables,
household, beauty and electronics.
3. Augmented product: Lastly, the augmented product in the particular case is the
discounts the company provides to the different consumers along with the home
delivery service as provided by them (Pine, 2015).
Price
The price forms a crucial part of the marketing strategy of the firm and with respect
to this, it can be stated that Aldi needs to ensure that it engages in a good pricing strategy
which will allow it to combat against the different consumers as available.
The main pricing tactic which is used by the company is the Price Adjustment tactics.
The price adjustment tactic is the tactic which is followed by the company and through this
the firm ensures to maintain the lowest price as possible (Sashittal & Wilemon, 1996). This
tactic can be done by maintaining a lower number of staff at the stores, maintaining a limited
inventory and ensuring that no wastage exists. The competitors of the company like Coles
and Woolworths like to maintain a large inventory which in turn turns up their costs.
Place
The place strategy decided upon the distribution strategy of the company at large
and helps to understand which channels are to be used by the company in question. Aldi in
this case makes use of the selective distribution strategy whereby the company seeks to
make a parity between the exclusive distribution strategy and the intensive distribution
strategy and aims to ensure that it is able to reach out to the designated target market in an
easy manner (Hutt & Speh, 2017). By making use of this strategy the firm seeks to ensure
that although it makes use of more than one distribution channel in order to bring about the
products of the company to the different consumers, but does not involve many middlemen

12ALDI NEW ZEALAND
and other such parties in this procedure as it tends to increase the costs which are available
at large. According to Kumar, and Kim (2014), Aldi aims to use the strategy of selective
distribution strategy by using only certain manufacturers and local suppliers.
Promotion
The promotional mix forms an integral part of the organization and by means of this,
the Aldi aims to see to it that it is successfully able to engage a large target audience and
increase the revenues of the firm as available. The three crucial aspects of Aldi are as
follows:
1. Advertising: Advertising is considered to be an integral part of the marketing strategy
of the firm (Malhotra & Peterson, 2014). The advertising strategy of Aldi seeks to
ensure that it is being able to give out the message that Aldi has the cheapest
offerings which can be made.
Figure 4: The offers available at Aldi
(Source: Aldi.com ,2018).

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2. Social media strategy: The social media strategy of Aldi can also be considered to be
quite strong and the firm is stated to have a good presence in Facebook and twitter
which helps it to generate considerable sales.
Figure 5: The social media advertisement at Aldi
(Source: Aldi.com ,2018).
3. Mobile marketing: The mobile marketing can be taken to be another useful tool for
promotion and goes a long way in ensuring that the daily offers and other such
promotional messages are sent out to the different customers as present (Piercy,
1998).

14ALDI NEW ZEALAND
Figure 6: The vouchers available at Aldi
(Source: Aldi.com ,2018).
Task 6
The main purpose of the report was to highlight the promotional techniques which
can be followed by the company in order to extend its offerings to the country of New
Zealand. The different promotional tactics which are being recommended to Aldi for its
expansion to New Zealand has been given as follows:
Social media strategy
In this kind of a strategy, the organization can make use of the medium of social
media like Facebook and twitter in order to be able to successfully promote a product. The
company can start a hashtag #AldinNZ with the help of which it can use the medium of the
two social media marketing websites as selected to promote the products of the company
(Sargeant & Macquillin, 2016). This way the firm will be able to keep its promotion strategies
systematized but in addition to this it will also be able to ensure that the firm is able to reach
through a large customer base.

15ALDI NEW ZEALAND
General billboard advertisement
The general billboard advertisement strategy can be followed by Aldi whereby the
company can put up the hoardings of the savings which each consumer might incur once it
invests in the Aldi way of shopping (Kumar & Kim, 2014). In this manner, the target market
will be able to understand that they must use Aldi for their shopping solution if they want to
save their costs.
Poster
The Poster
(`As created by the Author`)
Persuasive Techniques
Based on the Aristotle’s persuasive techniques, the persuasive mode of Ethos can
be used. By using this mode, the organization can build its credibility in the market by
ensuring the different consumers that if they shop from Aldi’s they are guaranteed to spend

16ALDI NEW ZEALAND
less money on the same product line (Marshall, 2014). Customer testimonials and brand
history do help in this case.
Task 7
Figure 7: The Hofstede`s dimensions
The given chart based on the Hofstede`s cultural model compare Aldi`s original
country, Germany and the targeted market of New Zealand. The major differences in the two
cultures are as follows:
 The Germans are quite considerate about the long term orientation and the future but
on the other hand, people living in New Zealand are more oriented towards present
and like to live their life in that manner (Robson, 2015).
 Moreover, the Germans are more inclined towards achievement and success
whereas the people in New Zealand are more concerned about the quality of life and
wellbeing.
 Where the people in Germany are quite restrained in nature, the people in New
Zealand can be taken to be more indulgent and like to spend on their desires.
Hence, in order to bring about a solution for the same, the following negotiation
strategies are being recommend:
I. The advertisements should be more inclined towards humor and be open. This is
because the culture of the country is more lenient than that of Germany.
II. As the people like to engage in indulgence, the advertisements should make
additional item offers so that they make the purchase (Stead & Hastings, 2018).
III. They need to come up with the advertisements which offer a personal touch as it
helps to ensure long term success and higher purchases.

17ALDI NEW ZEALAND
IV. The arguments and the positioning of the Aldi needs to be supported with factual
data so that the audience can make a decision accordingly.
V. Counterproposals need to be offered in order to ensure that if the audience does not
like one type of a product it can purchase the other.
Conclusion
Therefore, from the given analysis, it can be stated that Aldi is a supermarket which
has been formed considerably later but with the help of its tactics and techniques, the
supermarket has been successful in engaging a larger audience and a particular market for
itself. In this manner, the supermarket will be easily able to ensure that it is successfully
being able to engage in a long term relationship with the target audience. The report outlined
the strengths and weaknesses of the company, which was then followed by the analysis of
the offerings made by the firm which was then followed by the suggestive promotional mixes
to be adopted by the firm in order to expand its operations in New Zealand.
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