MRKT 310: Consumer Behavior and Marketing Principles at Lidl

This report provides a comprehensive analysis of Lidl's marketing principles, focusing on consumer behavior. It examines environmental factors such as store layout and climate considerations, as well as customer factors like service standards and data privacy. The report also delves into consumer buying behavior, highlighting the complex decision-making processes involved in purchasing. Furthermore, it explores Lidl's segmentation strategy, target market, and positioning within the competitive landscape, comparing it to Aldi and Tesco. The analysis considers price, convenience, and the evolving importance of product freshness in consumer preferences. This document is available on Desklib, a platform offering a wide array of study tools and solved assignments for students.

Running head: MARKETING PRINCIPLES OF LIDL
MARKETING PRINCIPLES OF LIDL
Name of the Student
Name of the University
Author Note

1MARKETING PRINCIPLES OF LIDL
Part 1
1. Environmental Factors of LIDL
Lidl does not only sell food or groceries, it also sells clothes and apparels as well. But
it is very hard to find the trial rooms in the supermarket. Majority of the population want to
but everything in only one shop, rather than visiting different shops to complete their
shopping. If they try the clothes on the floor of the super market, this can also put a negative
impact on the sales of the company. Another most important environmental factor which is
relevant to the customers of the product or services is that the natural climate. The natural
climate of Cyprus is very much different from the other countries (Antić, & Bogetić, 2015).
The summer seasons are very much hot and long. The Cypriots does not like to walk long and
do their shopping they prefer to move around in their private cars. So Lidl has to provide big
parking slots for its customers. In the previous year as it was very cold, Lidl must respond to
the climatic change of whether and start selling heaters for the upcoming winter seasons
(Hovav, 2015).
2. Customer Factors of LIDL
An excellent customer service provided by a company depicts the customer
satisfaction approach of an organization which also determines that the company is full
determined to dedicate to deliver the full value for the customer’s investments. It is
something which might help or improve the legal aspects of the organization as well. The
service standards which are generally maintained according to the international standards,
which contributes to the customer satisfaction and meet out their expectation. The three most
important factors which are relevant to the products and services offered by the organization
(Kita, & Grossmanová, 2014).

2MARKETING PRINCIPLES OF LIDL
New shopper’s behavior and smart shopping has made a point in the national consciousness.
Retailers have laid down the new foundations in the establishment of ideas that cheap
products does not mean that they are the most degraded products, and technological changes
also put the control into the hand of the customers. A better shopping experience also
influence the shoppers. The discounters have recently made a few dramatic changes to their
shopping experiences and the propositions. The quality of the fresh fruits as well as the labels
of the products and the whole environment also results in a more enjoyable and positive
experience for the shoppers to shop the products. Lidl has a very strict policy which is used in
order to the confidentiality of the information of their customers which they always collect
through various methods. The employees of the company are prohibited to leak or use any of
the information for any benefit purpose. The customers of Lidl feel that their information are
not used with other attentiveness by the company if compared with Tesco and Sainsbury
(Hess & Ring, 2014).
3. Customer Buying Behavior
Consumer buying behavior impacts when a consumer is passing through a complex
buying behavior. When a consumer purchases certain things very frequently he will definitely
know the difference between the brands available. The consumers show case a very complex
pattern of behavior when they are purchasing something very expensive. Such consumers
does not know much about the products and they want to learn or investigate more before
buying something. This is the only reason why the complex buying behavior is most
consistent with the level of involvement (Schmid, 2018).
4. Consumer decision making process.
The first stage for the processes is working on the things that what are the customer
needs. If the customer feels that something is missing then the company should address it

3MARKETING PRINCIPLES OF LIDL
back to make the customer feel normal. The second stage is the information search where the
company gathers information about stuffs from the people via recommendations from the
previous experience with various products. The third stage is the evaluation for the
alternatives where questions are asked related to the products and services offered by the
company.
Part 2
1. Segmentation
Lidl targets the lower, middle as well as the higher class customers. Lidl has adopted
many marketing strategies to create and maintain the brand visibility in the market. To
adopt both below-the-line as well as above-the-line marketing strategies so that it can
attract the mass consumers. It has also launched various advertisement campaigns by
printing and other media visuals in several channels of televisions, radio, magazines,
board hoarding. Thus the company believes in the process of digital marketing and it
sends messages via SMS to update their customers about their latest discounts on
various products and services.
2. Target Market
Customer behavior in demographic variables of Lidl- Customers are offered a
tremendous number of choices with the products. Some people restrict the choices
and are oriented in becoming long life customers of the company. Consumer behavior
in the retail market is therefore characterized by the customers (Vogel etal., 2018)
Determining the age and segmenting the consumers can help in increasing the
profitability of the company.
Six criteria for an attractive marketing segmentation are given below.

4MARKETING PRINCIPLES OF LIDL
 Homogeneous – It means that the consumers in each segments are similar in the terms
of need, demand and characteristics.
 Heterogeneous – This part demonstrates that the customers in the market are divided
into series of different needs.
 Measurable- Each department will be having a minimum number of requirements for
the financial returns of the company. Therefore it is very necessary to only consider
the segments which are substantial enough to be put to interest.
 Accessible- Each segments have to be reached and communications have to be made
on the efficiency basis.
 Responsive – The main motto of this segment is to develop a unique marketing mix
for the specified target markets. If the segment is not much responsive then it can be
combined with some other similar segments (Willems, Leroi-Werelds, & Swinnen,
2016).
Target Market Strategy
All the organizations need to focus in its marketing efforts and develop unique
marketing mix which will match the needs of the market. Without a proper and clear target
market the organization will have an unclear competitive position. Therefore defining a clear
target market it would be very difficult for the company to bear success. Therefore Lidl
should focus on all the resources in the target market.
Positioning
The perceptual map of Lidl in comparison with Aldi and Tesco based on the above
stated criterions are as follows:

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Company Name Lidl Aldi Tesco
Price 5 4.2 3
Convenience 3 2 5
Fig 1. Brand positioning of Lidl
(Source: Self – made)
Perceptual Map of Lidl based on two components which are Price and Convenience.
Price High
Convenience High
Price Low
Convenience Low
Lidl
Aldi
Tesco

6MARKETING PRINCIPLES OF LIDL
Fig 2.Perceptual Map of Lidl based on two components which are Price and
Convenience.
(Source: Self – made)
Lidl currently differentiates itself in the market by offering a good quality product at a
very low and reasonable price. Therefore we can use the division in the price and quality of
the products to segment the UK grocery market. As we can see from the positioning grids
which has only focused on the convenience and price, it is recognized that it was more
important for the company to focus more on the market trends. The customers previously
may had focused on the price of the products but the customers are presently focusing on the
freshness of the products. Therefore from the above grid it can see that Lidl has made an
improvement and has focused in the recent market change. That is the reason why it has been
placed above the competitor brands Aldi and Tesco.

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References
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and Lidl-How to determine right channel to enter grocery retail market as a new
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Vogel, C., Ntani, G., Inskip, H., Barker, M., Cummins, S., Cooper, C., ... & Baird, J. (2016).
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