Marketing Principles: A Case Study on ALDI (UK) - [Course Code]

This case study report provides a comprehensive analysis of ALDI's marketing strategies within the UK market. It begins with an introduction to the marketing process and its elements, evaluating the benefits and costs of a marketing orientation for ALDI. The report delves into segmentation, targeting, and positioning, examining micro and macro-environmental factors influencing ALDI's marketing decisions, proposing segmentation criteria for new markets, and analyzing buyer behavior. The study then explores the individual elements of the extended marketing mix, including product development, distribution, pricing, and promotion. Finally, the report addresses the use of the marketing mix in different contexts, planning marketing mixes for consumer segments, comparing marketing to businesses, and discussing international marketing strategies for ALDI. The analysis includes the application of various marketing models and concepts, such as SWOT and PESTEL analyses, providing a detailed understanding of ALDI's approach to the market.

MARKETING PRINCIPLE
(A CASE STUDY ON ALDI, UK)
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Table of Contents
Introduction:....................................................................................................................................4
Task 1 – Understanding the concept of marketing:.........................................................................4
1.1 Elements of marketing process in ALDI:..............................................................................4
1.2 Evaluation of the benefits and costs of a marketing orientation for ALDI:..........................5
Task 2 – Using the concept of segmentation, targeting, and positioning:.......................................6
2.1 Micro and Macro-Environmental factors that influence marketing decisions of ALDI:......6
2.2 Proposing of segmentation criteria for those markets in which ALDI currently is not
operating:.....................................................................................................................................7
2.3 Targeting strategy for a chosen product or for a chosen service of ALDI:...........................8
2.4 Demonstrate how buyer behavior affects marketing activities in different buying situations
for ALDI:.....................................................................................................................................8
2.5 Proposing new positioning strategy for ALDI:.....................................................................8
Task 3 - Understanding the individual elements of the extended marketing mix in ALDI:...........9
3.1 How products are developed to sustain competitive advantage in ALDI:............................9
3.2 How distribution is decided to provide customer convenience in ALDI:.............................9
3.3 How prices are set to reflect ALDI’s objectives and market conditions:............................10
3.4 How promotional activity is integrated to achieve marketing objectives in ALDI:............10
3.5 Analyzing the additional elements of the extended marketing mix in ALDI:.....................11
Task 4 – Use of Marketing Mix in different contexts of ALDI:...................................................12
4.1 Plan and recommend marketing mixes for the two different segments in consumer
markets:.....................................................................................................................................12
4.2 Exemplify differences in marketing products and services to businesses rather than
consumers:.................................................................................................................................13
4.3 Show how and why international marketing differs from domestic marketing and show
how you could implement a marketing strategy to market abroad:......................................13
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Conclusion:....................................................................................................................................14
References.....................................................................................................................................15
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Introduction:
This report mainly deals with the diverse aspects related to one of the largest supermarket chains
in UK called ALDI. Many elements such as the marketing process, the organizational audit, etc.
of ALDI is explained in the report. The models that are used for this explanation are the SWOT
analysis, the external environment analysis, the criteria of company segmentation and the
positioning related to the marketing mix of the company (Jobber & Ellis-Chadwick, 2012). This
report also explains the difference of analysis between the international and domestic markets as
well as the difference between the consumer and business market.
Task 1 – Understanding the concept of marketing:
1.1 Elements of marketing process in ALDI:
The marketing process is considered as the total procedure by which many activities linked with
the marketing field are concerned. The process of marketing consists of various aspects and
stages and it also consists of various elements (French, 2010). The elements are a part of the
process, and it is followed one after another, and it fulfils the marketing process for the firm
ALDI.
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Situation analysis consists of scanning both the internal as well as external environment, and
thus, the financial audit of a firm like ALDI takes place. This is verily the first stage of their
process of marketing, and it is known as situational analysis (Armstrong, et al., 2014). For
understanding the external analysis of its consumers, finding out the competitive scenario is
necessary along with various other external elements such as the PESTEL analysis of the market.
The PESTEL analysis would mean the analysis of the organization based on the political,
economic, social, technological, environmental and legal implications of the location of the UK
towards ALDI.
The main organizational objectives of ALDI is to facilitate and maintain the competitive pricing
strategy for all its products and create a pool of customers (Wang & Pizam, 2011). All the
products of ALDI maintain the VRIN concept, which means, all the products are valuable, rare,
inimitable and non-sustainable. The employees of the organization are trained appropriately to
enhance the level of customer satisfaction. The last aim of the company is to promote the
business in an ethical manner.
The organization called ALDI also decides to offer value for money to every product for the
customers. There are some expectations of the customers in relation to the payment, which they
make (Ennew & Waite, 2013). The value of the product must have a link with the amount of
money they are paying. If the company concentrates only on the profit margin and reduce the
product quality, then the company might lose the valuable customers owing to the deterioration
in the value for money parameter.
The organization can only fulfill its objectives if it follows the marketing elements with a proper
precision. The marketing elements consist of segmentation, positioning, and targeting. ALDI
also focuses on satisfying the 7Ps of marketing in order to fulfill the organizational objectives.
1.2 Evaluation of the benefits and costs of a marketing orientation for
ALDI:
Marketing orientation is a newbie concept of orientation that is focused mainly on the
requirements of the consumers. In the previous days, there were diverse types of orientation like
the product orientation, the orientation of the production house and the sales orientation (Allyson
Dooley, et al., 2012). The production orientation deals with the production of finished goods of
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the firm whereas the sales orientation is dependent on the enhancement of sales because the sales
strategies are often not enough for satisfying the customers’ requirements. The product
orientation, on the other hand, indicates the development of new and innovative products in the
market.
Organization's marketing orientation's
ALDI follows the strategy of marketing orientation as its organization’s strategy and policies.
The policy is somewhat digital in nature, and it has changed over time with many customers
going digital and wanting to buy food products online (Corner & Randall, 2011). The concept of
digital marketing has come into ALDI since the year 1990. This digitalization of ALDI brands
has helped the promotion of brands in Italy.
Following are cost and benefits of market orientation:
Benefits:
 It helps in meeting consumer demands and expectations with efficiency and this
technique helps to Aldi to expand their businss in UK and outside of country.
 This strategy is also helps to organization to add value in it customers services and focus
in satisfying customers with high quality products.
Costs
 In order to make marketing orientation company have to conduct market research
which mainly includes high expenditure in research and development programs.
 Need huge capital and highly valuable resources so may increases prices of
products or services.
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Task 2 – Using the concept of segmentation, targeting,
and positioning:
2.1 Micro and Macro-Environmental factors that influence marketing
decisions of ALDI:
Both the micro and macro environmental analysis is very important for taking the proper
marketing decision of a company. The micro environment of a company is dependent on the
internal environment of a company including its strengths, weaknesses, opportunities and threats
whereas the macro environment of a firm is dependent on the external environment of the
company (Dann, 2010).
Micro factors:
The Micro factors are those factors which are related to internally to organization. Such
factors make impact on business operation through internally which generally includes
Suppliers, organization culture, organization's structure and employees etc.
First of all, the SWOT analysis of ALDI is given below:-
Strengths Weaknesses Opportunities Threats
ALDI claims to
provide top class
products at affordable
cost
The number of stores
is much smaller as
compared to other
bigger brands
The requirement is to
invest more money
into advertising and
branding
Cannot cater to those
shoppers who are
looking for a
complete shopping
experience
Strong presence
throughout UK with
many retail outlets
Due to the presence
of relatively fewer
chain stores, the
Expansion of the
stores is essential to
the market of Africa
Other retailers have
more strengths in UK
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brand did not receive
global acclaim
and Asia
Internationally has
more than 8000
stores all over the
world
Sometimes many
customers feel the
store has low-quality
product due to its low
price range
Private label brands
of ALDI can
sometimes be tossed
aside by other well-
established brands of
UK
Operates worldwide
in more than 15
nations
Macro factors
Macro factors are related to the external factors which are uncontrollable for the
organization. It mainly includes political, economical, social , technological and legal factors.
The macro environmental factors are also to be discussed in relation to ALDI. The macro
environmental factors include the political factor in Europe. After the exit of UK from the EU, a
huge amount of tax is levied on the business, which can serve as a threat to the competitive
pricing strategy of ALDI (Thoring, 2011). The stores cannot be just opened anywhere nowadays
due to global environment leagal factor. Also, the economic factor which includes situation
throughout UK is in turmoil due to the global recession. The social factor includes young
generation is more dependent on the elderly for money. This is the reason; the increase of prices
would be a bad idea keeping in mind to the macro business environment of ALDI. Technology is
also effective business of company in this it includes online websites and e mail marketing
which helps to company for expanding their business.
2.2 Proposing of segmentation criteria for those markets in which ALDI
currently is not operating:
Segmentation is process in which organization divides its market on the basis on different
types of variable such as income, geographical basis and demographic basis, age of customers.
The company is retail company and mainly conduct it business operation in UK, where retail
competition is very high. Aldi is focuses on making food items on low prices so they can
capture market. It can supply healthy meals and food items in those places such as Asia and
Africa.
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ALDI needs to separate those markets that have no direct connection with the main organization.
In order to do just that, a proper segmentation would be helpful. The segmentation is mainly
known as differentiating the market depending on several bases into various homogeneous
groups (Burt, et al., 2011). The homogenous groups should be a part of that culture based on
same kinds of preferences and tastes, and even some similar characteristics of behavior so that
some services and products can be available to those groups. In order to enter into those nations
like Asia and the African countries, ALDI requires segmenting the customers mainly on the
basis of demographics, which means the sex, age and profession of the customers should be
taken into account.
The supply of the products must be based on the demographics of a particular region. The
demographics help understand the culture and the demands pertaining to a particular place. Post
that; the products can be made cheaper in order to attract the customers as far as the market
demands are concerned.
2.3 Targeting strategy for a chosen product or for a chosen service of
ALDI:
ALDI can fix its target on the customers with dual income based family. It can supply healthy
meals and food items in those places. In the market of Asia and Africa, there are several people
who has no time to cook their meals because both husband and wife are office goers
(Gbadamosi, 2012). The age group of 25-40 can be targeted in order to make this brand popular.
Though there are some small differences between the developed and the developing countries,
yet several young and educated people are self-sufficient, and their number is growing over time.
The organization is using differentiated marketing approach in which they can make
Providing self customised product of food items. In this the company with the helps of
technological advancement they can target market in effective meaner. In this approach they can
use their online websites or use of social media through which they can target their market
easily.
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2.4 Demonstrate how buyer behavior affects marketing activities in
different buying situations for ALDI:
Following are the five stages of consumers behaviour which are as follows.
Need recontamination
There is variety of purchasing behaviour of customers in a retail store. The customers
vary in their choices like some customers have variety oriented purchasing behaviour, complex
purchasing behaviour, regular purchasing behaviour, and dissonance oriented purchasing
behavior (Gordon, 2011). so in this organization need to identify actual need by conducting
market research.
Information Search
The customers who seek the variety oriented behaviour do not go through a long process
of looking at items and select the one that directly matches with their list. So at this strage
consumers make search of different types of products by using social media or internet.
Evaluation of Alternatives
If these customers are not satisfied in any way, they purchase things even with more
varieties. Some products of ALD, like the grocery products all show this kind of purchasing
behaviour by the consumers. So the customers make evaluation of different types of products
and seeks to only that products which provide him higher level of satisfaction.
Purchase
The customers buy products at this stage. However, when the products are based on electronics
items, the customers’ perception are mainly very complex. Here, the company needs to brand
those products through advertisements.
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Post purchase Behaviour
The health products are always sold out of a dissonance oriented perception of the
customers. The customers are very apprehensive about a particular brand, and if it fails to meet
certain expectations, they just alter the brand (Allyson Dooley, et al., 2012). The marketing mix
strategy is the best applicable solution for the improvement of these products by conducting after
sales research.
2.5 Proposing new positioning strategy for ALDI:
The new strategy is related to the offering new type of product which is food items for
the individuals. The pirces of this products is considered as low so familie and UK people can
take advantages of it. It also helps to organization to take advantages competitive business
environment.
The new positioning strategy of an organization is very helpful to create brand awareness of the
product among the consumers. If the company proposes to provide a healthy meal for the
customers, it also needs to be very health conscious about the product. The positioning strategy
of ALDI should be based on the time decreasing factor for those families who are dual income
based mainly in Asia and African countries (Bang & Joshi, 2008). In the families of working
couples, cooking of meals is a very weird proposition, and maximum women tend to go away
from it. However, an outside meal increases the health concern for the families. The positioning
strategy of the organization can discuss the details of healthy food stuff, and its benefits to the
prospective customers.
In order to make effective and successful marketing strategy, 7p's analysis can be
conducted. Main aim to conducted this analysis, ALDI has responsibility to develops their
understanding towards internal operations. It includes following elements that encompasses at
7p's:
Product
Product of the chosen business is determines as quality, brand name and cheapest
supermarket retailer. The main competitive advantages of ALDI is based on their products and
services.
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Price
Price is also effective element of marketing which demonstrate value of product and
services. In this aspect, ALDI is using competitive pricing strategy which assist to make value of
product and services in supermarket. The company is using cheap price for particular product
and services.
Place
ALDI has various outlets in UK and Europe and many other countries. It assists to make
effective results in different areas. In addition to this, they are also serving their operations and
function in online and offline stores. In this aspect, they can easily provide variety of products
and services across the nation and outside the boundaries.
Promotion
There are various strategies that can be used by ALDI for promoting their products and
services. It includes advertisement, personal selling, sales promotion and publicity by the
company. In this aspect, they can easily store promotion at very low prices.
People
In order to make effective results and outcomes, there are various people perform their
function and participate in the business. There are various elements such as personal training,
commitment, incentives, appearance, and interpersonal behavior etc. which assist to grow
procedure of the enterprise. In this aspect, employees manager and many other people support to
ALDI for promoting products and services at international market.
Process
In respect to follow process, it includes different aspects such as policies, procedures,
discretion and customer involvement. Consumers are not involves in any process and procedure
of ALDI but they have power to produce effective results.
Physical evidence
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